.
.
.
EXHIBIT 99.1
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
MARCH 31, 2004
(DOLLARS IN THOUSANDS)
MERISTAR NON- MERISTAR
HOSPITALITY GUARANTOR SUB 7C, AGH UPREIT,
OP, L.P. SUBSIDIARIES LLC LLC
----------- ------------ ----------- -----------
ASSETS
Property and equipment 24,325 1,366,908 -- --
Accumulated depreciation (14,395) (258,216) -- --
---------- ---------- ---------- ----------
9,930 1,108,692 -- --
Assets held for sale -- 24,446 -- --
Investments in affiliate 2,437,934 8,200 32 2,989
Note receivable from subsidiaries 172,840 -- -- --
Due to/from subsidiaries (932,546) 445,438 -- 74
Prepaid expenses and other assets 29,982 (3,519) -- --
Accounts receivable, net of allowance for doubtful accounts 19,794 806 -- --
Restricted cash 41,059 2,193 -- --
Cash and cash equivalents -- unrestricted 169,032 -- -- --
---------- ---------- ---------- ----------
1,948,025 1,586,256 32 3,063
========== ========== ========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt 871,279 434,476 -- --
Notes payable to MeriStar Hospitality Corporation 218,744 -- -- --
Accounts payable and accrued expenses 16,060 4,489 -- --
Accrued interest 32,410 2,604 -- --
Due to Interstate Hotels & Resorts 12,857 -- -- --
Other liabilities 1,085 -- -- --
---------- ---------- ---------- ----------
Total liabilities 1,152,435 441,569 -- --
---------- ---------- ---------- ----------
Minority interests 2,492 -- -- --
Redeemable OP units at redemption value 36,770 -- -- --
Partners' capital 756,328 1,144,687 32 3,063
---------- ---------- ---------- ----------
1,948,025 1,586,256 32 3,063
========== ========== ========== ==========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5N, SUB 8A, SUB 8F, SUB 8G, SUB 6H,
LLC LLC L.P. LLC L.P.
----------- ----------- ------------ ----------- ------------
ASSETS
Property and equipment 4,163 -- 11,502 -- 10,862
Accumulated depreciation (713) -- (2,685) -- (313)
----------- ----------- ------------ ----------- ------------
3,450 -- 8,817 -- 10,549
Assets held for sale -- -- -- -- --
Investments in affiliate -- -- -- 72 --
Note receivable from subsidiaries -- -- -- -- --
Due to/from subsidiaries 4,541 -- 7,441 9 6,955
Prepaid expenses and other assets (26) -- (44) -- (2)
Accounts receivable, net of allowance for doubtful accounts -- -- -- -- --
Restricted cash -- -- 115 -- --
Cash and cash equivalents -- unrestricted -- -- -- -- --
----------- ----------- ------------ ----------- ------------
7,965 -- 16,329 81 17,502
=========== =========== ============ =========== ============
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 17 -- 1 -- 22
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
----------- ----------- ------------ ----------- ------------
Total liabilities 17 -- 1 -- 22
----------- ----------- ------------ ----------- ------------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital 7,948 -- 16,328 81 17,480
----------- ----------- ------------ ----------- ------------
7,965 -- 16,329 81 17,502
=========== =========== ============ =========== ============
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
MARCH 31, 2004
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 8B, SUB 1C, SUB 8E, SUB 7F,
LLC L.P. LLC LLC
----------- ------------ ------------ -----------
ASSETS
Property and equipment 85,805 26,798 15,549 7,303
Accumulated depreciation (12,861) (6,256) (3,173) (193)
----------- ------------ ------------ -----------
72,944 20,542 12,376 7,110
Assets held for sale -- -- -- --
Investments in affiliate -- -- -- --
Note receivable from subsidiaries -- -- -- --
Due to/from subsidiaries 29,974 (3,775) 6,943 5,302
Prepaid expenses and other assets (50) (107) (15) (4)
Accounts receivable, net of allowance for doubtful accounts -- -- -- --
Restricted cash -- -- -- --
Cash and cash equivalents -- unrestricted -- -- -- --
----------- ------------ ------------ -----------
102,868 16,660 19,304 12,408
=========== ============ ============ ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- --
Accounts payable and accrued expenses 2,561 125 (43) 184
Accrued interest -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- --
Other liabilities -- -- -- --
----------- ------------ ------------ -----------
Total liabilities 2,561 125 (43) 184
----------- ------------ ------------ -----------
Minority interests -- -- -- --
Redeemable OP units at redemption value -- -- -- --
Partners' capital 100,307 16,535 19,347 12,224
----------- ------------ ------------ -----------
102,868 16,660 19,304 12,408
=========== ============ ============ ===========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5L, SUB 3C, SUB 5R, SUB 6D, SUB 6E,
LLC LLC LLC LLC LLC
----------- ----------- ----------- ----------- -----------
ASSETS 11,876 17,504 -- 17,499 45,734
Property and equipment (684) (3,872) -- (3,030) (10,373)
Accumulated depreciation ----------- ----------- ----------- ----------- -----------
11,192 13,632 -- 14,469 35,361
-- -- -- -- --
Assets held for sale -- -- 43 -- --
Investments in affiliate -- -- -- -- --
Note receivable from subsidiaries 4,595 5,694 (43) 8,756 22,955
Due to/from subsidiaries (41) 21 -- (11) (49)
Prepaid expenses and other assets -- -- -- 110 --
Accounts receivable, net of allowance for doubtful accounts -- -- -- -- --
Restricted cash -- -- -- -- --
Cash and cash equivalents -- unrestricted ----------- ----------- ----------- ----------- -----------
15,746 19,347 -- 23,324 58,267
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 23 315 -- -- 119
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total liabilities 23 315 -- -- 119
----------- ----------- ----------- ----------- -----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital 15,723 19,032 -- 23,324 58,148
----------- ----------- ----------- ----------- -----------
15,746 19,347 -- 23,324 58,267
=========== =========== =========== =========== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
MARCH 31, 2004
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 4E, SUB 1B, SUB 5F, SUB 6G,
L.P. LLC L.P. LLC
----------- ----------- ------------ -----------
ASSETS
Property and equipment 5,056 18,903 17,559 22,663
Accumulated depreciation (151) (4,192) (394) (5,223)
----------- ----------- ------------ -----------
4,905 14,711 17,165 17,440
Assets held for sale -- -- -- --
Investments in affiliate -- -- -- --
Note receivable from subsidiaries -- -- -- --
Due to/from subsidiaries 3,513 15,685 12,871 7,726
Prepaid expenses and other assets (27) (48) (99) (18)
Accounts receivable, net of allowance for doubtful accounts -- 96 -- --
Restricted cash -- -- -- --
Cash and cash equivalents -- unrestricted -- -- -- --
----------- ----------- ------------ -----------
8,391 30,444 29,937 25,148
=========== =========== ============ ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- 33 -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- --
Accounts payable and accrued expenses 95 24 58 28
Accrued interest -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- --
Other liabilities -- -- -- --
----------- ----------- ------------ -----------
Total liabilities 95 57 58 28
----------- ----------- ------------ -----------
Minority interests -- -- -- --
Redeemable OP units at redemption value -- -- -- --
Partners' capital 8,296 30,387 29,879 25,120
----------- ----------- ------------ -----------
8,391 30,444 29,937 25,148
=========== =========== ============ ===========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 8C, SUB 4C, SUB 4H, SUB 7E, SUB 3D,
LLC L.P. L.P. LLC LLC
----------- ------------ ------------ ----------- -----------
ASSETS -- -- -- 19,013 22,706
Property and equipment -- -- -- (3,475) (7,229)
Accumulated depreciation ----------- ------------ ------------ ----------- -----------
-- -- -- 15,538 15,477
-- -- -- -- --
Assets held for sale -- -- -- -- --
Investments in affiliate -- -- -- -- --
Note receivable from subsidiaries 11,297 -- 3,414 6,206 8,747
Due to/from subsidiaries -- -- -- (12) (24)
Prepaid expenses and other assets -- -- -- -- --
Accounts receivable, net of allowance for doubtful accounts -- -- -- -- --
Restricted cash -- -- -- -- --
Cash and cash equivalents -- unrestricted ----------- ------------ ------------ ----------- -----------
11,297 -- 3,414 21,732 24,200
=========== ============ ============ =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses -- -- -- 61 34
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
----------- ------------ ------------ ----------- -----------
Total liabilities -- -- -- 61 34
----------- ------------ ------------ ----------- -----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital 11,297 -- 3,414 21,671 24,166
----------- ------------ ------------ ----------- -----------
11,297 -- 3,414 21,732 24,200
=========== ============ ============ =========== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
MARCH 31, 2004
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR SUB MERISTAR MERISTAR
SUB 1A, 7A JOINT SUB 2B, SUB 3A,
LLC VENTURE LLC LLC
---------- ------------- ----------- ------------
ASSETS
Property and equipment 8,293 4,898 -- --
Accumulated depreciation -- -- -- --
---------- ------------ ----------- ------------
8,293 4,898 -- --
Assets held for sale -- -- -- --
Investments in affiliate -- -- -- --
Note receivable from subsidiaries -- -- -- --
Due to/from subsidiaries 7,690 5,206 (3,579) 4,976
Prepaid expenses and other assets (82) (6) -- --
Accounts receivable, net of allowance for doubtful accounts -- -- -- --
Restricted cash -- -- -- --
Cash and cash equivalents -- unrestricted -- -- -- --
---------- ------------ ----------- ------------
15,901 10,098 (3,579) 4,976
========== ============ =========== ============
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- --
Accounts payable and accrued expenses 42 130 (8) --
Accrued interest -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- --
Other liabilities -- -- -- --
---------- ------------ ----------- ------------
Total liabilities 42 130 (8) --
---------- ------------ ----------- ------------
Minority interests -- -- -- --
Redeemable OP units at redemption value -- -- -- --
Partners' capital 15,859 9,968 (3,571) 4,976
---------- ------------ ----------- ------------
15,901 10,098 (3,579) 4,976
========== ============ =========== ============
MERISTAR MERISTAR MERISTAR MERISTAR MDV
SUB 4A, SUB 4D, SUB 2A, SUB 6L, LIMITED
LLC LLC LLC LLC PARTNERSHIP
-------- ------------ ------------ ------------ -----------
ASSETS
Property and equipment -- -- -- -- 3,877
Accumulated depreciation -- -- -- -- (709)
-------- ------------ ------------ ------------ -----------
-- -- -- -- 3,168
Assets held for sale -- -- -- -- --
Investments in affiliate -- -- -- -- --
Note receivable from subsidiaries -- -- -- -- --
Due to/from subsidiaries 7,611 -- (8,096) 20,297 2,619
Prepaid expenses and other assets -- -- -- -- (9)
Accounts receivable, net of allowance for doubtful accounts -- -- -- 178 --
Restricted cash -- -- -- -- --
Cash and cash equivalents -- unrestricted -- -- -- -- --
-------- ------------ ------------ ------------ -----------
7,611 -- (8,096) 20,475 5,778
======== ============ ============ ============ ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses -- -- (7) -- 100
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
-------- ------------ ------------ ------------ -----------
Total liabilities -- -- (7) -- 100
-------- ------------ ------------ ------------ -----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital 7,611 -- (8,089) 20,475 5,678
-------- ------------ ------------ ------------ -----------
7,611 -- (8,096) 20,475 5,778
======== ============ ============ ============ ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
MARCH 31, 2004
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5C, SUB 6J, SUB 1D, SUB 7B,
LLC LLC L.P. L.P.
------------ ----------- ------------ ------------
ASSETS
Property and equipment -- 19,623 69,021 --
Accumulated depreciation -- (3,914) (12,604) --
------------ ----------- ------------ ------------
-- 15,709 56,417 --
Assets held for sale -- -- -- 4,586
Investments in affiliate -- -- -- --
Note receivable from subsidiaries -- -- -- --
Due to/from subsidiaries 5,087 8,195 20,621 (3,799)
Prepaid expenses and other assets 4 16 (314) (5)
Accounts receivable, net of allowance for doubtful accounts (2) -- -- --
Restricted cash -- -- -- --
Cash and cash equivalents -- unrestricted -- -- -- --
------------ ----------- ------------ ------------
5,089 23,920 76,724 782
============ =========== ============ ============
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- --
Accounts payable and accrued expenses -- 12 244 540
Accrued interest -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- --
Other liabilities -- -- -- --
------------ ----------- ------------ ------------
Total liabilities -- 12 244 540
------------ ----------- ------------ ------------
Minority interests -- -- -- --
Redeemable OP units at redemption value -- -- -- --
Partners' capital 5,089 23,908 76,480 242
------------ ----------- ------------ ------------
5,089 23,920 76,724 782
============ =========== ============ ============
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 7D, SUB 7G, SUB 6B, SUB 4I, SUB 5D,
LLC LLC LLC L.P. LLC
------------ ------------ ------------ ------------ ------------
ASSETS
Property and equipment 52,748 -- 10,965 -- 42,204
Accumulated depreciation (10,180) -- (2,299) -- (8,471)
------------ ------------ ------------ ------------ ------------
42,568 -- 8,666 -- 33,733
Assets held for sale -- 1,859 -- -- --
Investments in affiliate -- -- -- -- 51,368
Note receivable from subsidiaries -- -- -- -- --
Due to/from subsidiaries 25,750 599 3,204 1,660 (6,285)
Prepaid expenses and other assets 154 (5) (8) -- (34)
Accounts receivable, net of allowance for doubtful accounts 1,560 -- -- -- --
Restricted cash -- -- -- -- --
Cash and cash equivalents -- unrestricted -- -- -- -- --
------------ ------------ ------------ ------------ ------------
70,032 2,453 11,862 1,660 78,782
============ ============ ============ ============ ============
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- 24,000
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 4,004 140 (44) -- 339
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts (200) -- -- -- --
Other liabilities -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Total liabilities 3,804 140 (44) -- 24,339
------------ ------------ ------------ ------------ ------------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital 66,228 2,313 11,906 1,660 54,443
------------ ------------ ------------ ------------ ------------
70,032 2,453 11,862 1,660 78,782
============ ============ ============ ============ ============
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
MARCH 31, 2004
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR
SUB 5H, SUB 7H, SUB 2D,
LLC LLC AGH PSS I, INC. LLC
------------ ------------ --------------- ------------
ASSETS
Property and equipment -- -- -- --
Accumulated depreciation -- -- -- --
------------ ------------ --------------- ------------
-- -- -- --
Assets held for sale -- -- -- --
Investments in affiliate -- -- -- --
Note receivable from subsidiaries -- -- -- --
Due to/from subsidiaries 36,574 9,589 25,570 (4,723)
Prepaid expenses and other assets -- -- -- --
Accounts receivable, net of allowance for doubtful accounts 46 -- -- --
Restricted cash -- -- -- --
Cash and cash equivalents -- unrestricted -- -- -- --
------------ ------------ --------------- ------------
36,620 9,589 25,570 (4,723)
============ ============ =============== ============
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- --
Accounts payable and accrued expenses (2) -- -- (1)
Accrued interest -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- --
Other liabilities -- -- -- --
------------ ------------ --------------- ------------
Total liabilities (2) -- -- (1)
------------ ------------ --------------- ------------
Minority interests -- -- -- --
Redeemable OP units at redemption value -- -- -- --
Partners' capital 36,622 9,589 25,570 (4,722)
------------ ------------ --------------- ------------
36,620 9,589 25,570 (4,723)
============ ============ =============== ============
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 4F, SUB 5K, SUB 5M, SUB 1E, SUB 5O,
L.P. LLC LLC L.P. LLC
------------ ------------ ------------ ------------ ------------
ASSETS
Property and equipment 32,975 28,423 22,076 -- 8,745
Accumulated depreciation (6,086) (5,530) (2,473) -- (1,201)
------------ ------------ ------------ ------------ ------------
26,889 22,893 19,603 -- 7,544
Assets held for sale -- -- -- -- --
Investments in affiliate -- -- -- -- --
Note receivable from subsidiaries -- -- -- -- --
Due to/from subsidiaries 4,989 249 8,398 24,352 3,342
Prepaid expenses and other assets 6 (111) (69) -- (23)
Accounts receivable, net of allowance for doubtful accounts -- -- -- -- --
Restricted cash -- -- -- -- --
Cash and cash equivalents -- unrestricted -- -- -- -- --
------------ ------------ ------------ ------------ ------------
31,884 23,031 27,932 24,352 10,863
============ ============ ============ ============ ============
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 75 3,072 49 -- 19
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Total liabilities 75 3,072 49 -- 19
------------ ------------ ------------ ------------ ------------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital 31,809 19,959 27,883 24,352 10,844
------------ ------------ ------------ ------------ ------------
31,884 23,031 27,932 24,352 10,863
============ ============ ============ ============ ============
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
MARCH 31, 2004
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 4B, SUB 2C, SUB 4G, SUB 3B,
L.P. LLC L.P. LLC
------------ ------------ ------------ -----------
ASSETS
Property and equipment -- -- 8,730 --
Accumulated depreciation -- -- -- --
------------ ------------ ------------ -----------
-- -- 8,730 --
Assets held for sale -- 8,383 -- --
Investments in affiliate -- -- -- --
Note receivable from subsidiaries -- -- -- --
Due to/from subsidiaries 1,728 5,416 8,877 9,351
Prepaid expenses and other assets -- (258) (136) (3)
Accounts receivable, net of allowance for doubtful accounts -- 6 -- --
Restricted cash -- -- -- --
Cash and cash equivalents -- unrestricted -- -- -- --
------------ ------------ ------------ -----------
1,728 13,547 17,471 9,348
============ ============ ============ ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- 19,458 -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- --
Accounts payable and accrued expenses -- 138 83 22
Accrued interest -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- --
Other liabilities -- -- -- --
------------ ------------ ------------ -----------
Total liabilities -- 19,596 83 22
------------ ------------ ------------ -----------
Minority interests -- -- -- --
Redeemable OP units at redemption value -- -- -- --
Partners' capital 1,728 (6,049) 17,388 9,326
------------ ------------ ------------ -----------
1,728 13,547 17,471 9,348
============ ============ ============ ===========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5G, SUB 5P, SUB 5J, SUB 5Q, SUB 5A,
L.P. LLC LLC LLC LLC
------------ ------------ ------------ ------------ ------------
ASSETS
Property and equipment 166,853 39 111,524 16,794 35,922
Accumulated depreciation (32,075) (24) (18,231) (2,409) (10,955)
------------ ------------ ------------ ------------ ------------
134,778 15 93,293 14,385 24,967
Assets held for sale -- -- -- -- --
Investments in affiliate -- -- -- -- 4,627
Note receivable from subsidiaries -- -- -- -- --
Due to/from subsidiaries 42,098 3,254 23,448 5,146 7,469
Prepaid expenses and other assets (110) (6) (538) (79) (44)
Accounts receivable, net of allowance for doubtful accounts -- 38 -- -- --
Restricted cash -- -- -- -- --
Cash and cash equivalents -- unrestricted -- -- -- -- --
------------ ------------ ------------ ------------ ------------
176,766 3,301 116,203 19,452 37,019
============ ============ ============ ============ ============
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- 23,609
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 291 -- 285 (161) 175
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Total liabilities 291 -- 285 (161) 23,784
------------ ------------ ------------ ------------ ------------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital 176,475 3,301 115,918 19,613 13,235
------------ ------------ ------------ ------------ ------------
176,766 3,301 116,203 19,452 37,019
============ ============ ============ ============ ============
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
MARCH 31, 2004
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR
SUB 8D, SUB 4J, HOTEL LESSEE,
LLC LLC INC.
------------ ------------ --------------
ASSETS
Property and equipment -- 38,809 3,148
Accumulated depreciation -- (7,441) (3,330)
------------ ------------ --------------
-- 31,368 (182)
Assets held for sale -- -- --
Investments in affiliate -- -- --
Note receivable from subsidiaries -- -- --
Due to/from subsidiaries 16,379 7,644 (12,678)
Prepaid expenses and other assets -- (28) 16,346
Accounts receivable, net of allowance for doubtful accounts 359 (12) 46,097
Restricted cash -- -- 1,289
Cash and cash equivalents -- unrestricted -- -- 25,937
------------ ------------ --------------
16,738 38,972 76,809
============ ============ ==============
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- 108,519
Notes payable to MeriStar Hospitality Corporation -- -- --
Accounts payable and accrued expenses -- 93 54,636
Accrued interest -- -- 2,435
Due to Interstate Hotels & Resorts -- -- 4,476
Other liabilities -- -- 10,471
------------ ------------ --------------
Total liabilities -- 93 180,537
------------ ------------ --------------
Minority interests -- -- --
Redeemable OP units at redemption value -- -- --
Partners' capital 16,738 38,879 (103,728)
------------ ------------ --------------
16,738 38,972 76,809
============ ============ ==============
GUARANTOR
SUBSIDIARIES TOTAL
TOTAL ELIMINATIONS CONSOLIDATED
------------ ------------ ------------
ASSETS
Property and equipment 1,046,162 -- 2,437,395
Accumulated depreciation (192,749) -- (465,360)
------------ ------------ ------------
853,413 -- 1,972,035
Assets held for sale 14,828 -- 39,274
Investments in affiliate 59,131 (2,490,265) 15,000
Note receivable from subsidiaries -- (172,840) --
Due to/from subsidiaries 487,108 -- --
Prepaid expenses and other assets 14,102 -- 40,565
Accounts receivable, net of allowance for doubtful accounts 48,476 -- 69,076
Restricted cash 1,404 -- 44,656
Cash and cash equivalents -- unrestricted 25,937 -- 194,969
------------ ------------ ------------
1,504,399 (2,663,105) 2,375,575
============ ============ ============
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt 175,619 (172,840) 1,308,534
Notes payable to MeriStar Hospitality Corporation -- -- 218,744
Accounts payable and accrued expenses 67,890 -- 88,439
Accrued interest 2,435 -- 37,449
Due to Interstate Hotels & Resorts 4,276 -- 17,133
Other liabilities 10,471 -- 11,556
------------ ------------ ------------
Total liabilities 260,691 (172,840) 1,681,855
------------ ------------ ------------
Minority interests -- -- 2,492
Redeemable OP units at redemption value -- -- 36,770
Partners' capital 1,243,708 (2,490,265) 654,458
------------ ------------ ------------
1,504,399 (2,663,105) 2,375,575
============ ============ ============
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2003
(DOLLARS IN THOUSANDS)
MERISTAR NON- MERISTAR AGH
HOSPITALITY GUARANTOR SUB 7C, UPREIT,
OP, L.P. SUBSIDIARIES LLC LLC
----------- ------------ ------------ -----------
ASSETS
Property and equipment 18,987 1,407,432 -- --
Accumulated depreciation (13,219) (246,091) -- --
---------- ---------- ---------- ----------
5,768 1,161,341 -- --
Assets held for sale -- 4,273 -- --
Investments in affiliate 2,208,641 8,200 32 2,989
Due from/to subsidiaries (838,258) 397,837 -- 133
Note receivable from subsidiaries 120,855 -- -- --
Prepaid expenses and other assets 34,658 (1,612) -- --
Accounts receivable, net of allowance for doubtful accounts 18,220 956 -- --
Restricted cash 39,932 2,476 -- --
Cash and cash equivalents -- unrestricted 218,646 -- -- --
---------- ---------- ---------- ----------
1,808,462 1,573,471 32 3,122
========== ========== ========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt 917,232 436,778 -- --
Notes payable to MeriStar Hospitality Corporation 256,473 -- -- --
Accounts payable and accrued expenses 14,806 5,517 -- --
Accrued interest 43,396 2,639 -- --
Due to Interstate Hotels & Resorts 6,923 -- -- --
Other liabilities 1,750 (304) -- --
---------- ---------- ---------- ----------
Total liabilities 1,240,580 444,630 -- --
---------- ---------- ---------- ----------
Minority interests 2,496 -- -- --
Redeemable OP units at redemption value 35,926 -- -- --
Partners' capital -- Common OP Units 529,460 1,128,841 32 3,122
---------- ---------- ---------- ----------
1,808,462 1,573,471 32 3,122
========== ========== ========== ==========
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5N, SUB 8A, SUB 8F, SUB 8G,
LLC LLC L.P. LLC
-------- -------- -------- --------
ASSETS
Property and equipment 4,146 -- 11,502 --
Accumulated depreciation (679) -- (2,521) --
------- ------- ------- -------
3,467 -- 8,981 --
Assets held for sale -- -- -- --
Investments in affiliate -- -- -- 72
Due from/to subsidiaries 4,243 -- 7,012 10
Note receivable from subsidiaries -- -- -- --
Prepaid expenses and other assets (18) -- (28) --
Accounts receivable, net of allowance for doubtful accounts -- -- -- --
Restricted cash -- -- 115 --
Cash and cash equivalents -- unrestricted -- -- -- --
------- ------- ------- -------
7,692 -- 16,080 82
======= ======= ======= =======
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- --
Accounts payable and accrued expenses (11) -- 67 --
Accrued interest -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- --
Other liabilities -- -- -- --
------- ------- ------- -------
Total liabilities (11) -- 67 --
------- ------- ------- -------
Minority interests -- -- -- --
Redeemable OP units at redemption value -- -- -- --
Partners' capital -- Common OP Units 7,703 -- 16,013 82
------- ------- ------- -------
7,692 -- 16,080 82
======= ======= ======= =======
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2003
(DOLLARS IN THOUSANDS)
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
6H, L.P. 8B, LLC 1C, L.P. 8E, LLC
------------ ------------ ------------ ------------
ASSETS
Property and equipment 10,862 83,215 26,641 15,493
Accumulated depreciation (157) (12,270) (5,900) (3,024)
-------- -------- -------- --------
10,705 70,945 20,741 12,469
Assets held for sale -- -- -- --
Investments in affiliate -- -- -- --
Due from/to subsidiaries 6,814 30,981 (3,881) 6,688
Note receivable from subsidiaries -- -- -- --
Prepaid expenses and other assets 1 (26) (88) (10)
Accounts receivable, net of allowance for doubtful accounts -- -- -- --
Restricted cash -- -- -- --
Cash and cash equivalents -- unrestricted -- -- -- --
-------- -------- -------- --------
17,520 101,900 16,772 19,147
======== ======== ======== ========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- --
Accounts payable and accrued expenses 161 2,502 88 (32)
Accrued interest -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- --
Other liabilities -- -- -- --
-------- -------- -------- --------
Total liabilities 161 2,502 88 (32)
-------- -------- -------- --------
Minority interests -- -- -- --
Redeemable OP units at redemption value -- -- -- --
Partners' capital -- Common OP Units 17,359 99,398 16,684 19,179
-------- -------- -------- --------
17,520 101,900 16,772 19,147
======== ======== ======== ========
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
7F, LLC 5L, LLC 3C, LLC 5R, LLC
------------ ----------- ------------- ------------
ASSETS
Property and equipment 7,293 11,841 17,498 --
Accumulated depreciation (97) (645) (3,696) --
------- ------- ------- -------
7,196 11,196 13,802 --
Assets held for sale -- -- -- --
Investments in affiliate -- -- -- 43
Due from/to subsidiaries 5,122 4,239 5,062 (43)
Note receivable from subsidiaries -- -- -- --
Prepaid expenses and other assets (1) (24) 28 --
Accounts receivable, net of allowance for doubtful accounts -- -- -- --
Restricted cash -- -- -- --
Cash and cash equivalents -- unrestricted -- -- -- --
------- ------- ------- -------
12,317 15,411 18,892 --
======= ======= ======= =======
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- --
Accounts payable and accrued expenses 208 (15) 140 --
Accrued interest -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- --
Other liabilities -- -- -- --
------- ------- ------- -------
Total liabilities 208 (15) 140 --
------- ------- ------- -------
Minority interests -- -- -- --
Redeemable OP units at redemption value -- -- -- --
Partners' capital -- Common OP Units 12,109 15,426 18,752 --
------- ------- ------- -------
12,317 15,411 18,892 --
======= ======= ======= =======
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2003
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR SUB MERISTAR
SUB 6D, SUB 6E, 4E, SUB 1B,
LLC LLC L.P. LLC
-------- -------- ------------ ---------
ASSETS
Property and equipment 17,449 45,155 5,047 18,656
Accumulated depreciation (2,893) (9,963) (76) (4,064)
------- ------- ------- -------
14,556 35,192 4,971 14,592
Assets held for sale -- -- -- --
Investments in affiliate -- -- -- --
Due from/to subsidiaries 8,445 21,931 3,545 15,375
Note receivable from subsidiaries -- -- -- --
Prepaid expenses and other assets (7) (33) (17) (32)
Accounts receivable, net of allowance for doubtful accounts 103 -- -- 96
Restricted cash -- -- -- --
Cash and cash equivalents -- unrestricted -- -- -- --
------- ------- ------- -------
23,097 57,090 8,499 30,031
======= ======= ======= =======
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- 33
Notes payable to MeriStar Hospitality Corporation -- -- -- --
Accounts payable and accrued expenses 38 (208) 351 39
Accrued interest -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- --
Other liabilities -- -- -- --
------- ------- ------- -------
Total liabilities 38 (208) 351 72
------- ------- ------- -------
Minority interests -- -- -- --
Redeemable OP units at redemption value -- -- -- --
Partners' capital -- Common OP Units 23,059 57,298 8,148 29,959
------- ------- ------- -------
23,097 57,090 8,499 30,031
======= ======= ======= =======
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5F, SUB 6G, SUB 8C, SUB 4C,
L.P. LLC LLC L.P.
-------- -------- -------- ---------
ASSETS
Property and equipment 17,410 22,578 -- --
Accumulated depreciation (198) (5,014) -- --
------- ------- ------- -------
17,212 17,564 -- --
Assets held for sale -- -- 5,530 --
Investments in affiliate -- -- -- --
Due from/to subsidiaries 12,431 6,988 5,557 --
Note receivable from subsidiaries -- -- -- --
Prepaid expenses and other assets (63) (12) 117 --
Accounts receivable, net of allowance for doubtful accounts -- -- -- --
Restricted cash -- -- -- --
Cash and cash equivalents -- unrestricted -- -- -- --
------- ------- ------- -------
29,580 24,540 11,204 --
======= ======= ======= =======
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- --
Accounts payable and accrued expenses 97 (69) (306) --
Accrued interest -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- --
Other liabilities -- -- -- --
------- ------- ------- -------
Total liabilities 97 (69) (306) --
------- ------- ------- -------
Minority interests -- -- -- --
Redeemable OP units at redemption value -- -- -- --
Partners' capital -- Common OP Units 29,483 24,609 11,510 --
------- ------- ------- -------
29,580 24,540 11,204 --
======= ======= ======= =======
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2003
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 4H, SUB 7E, SUB 3D, SUB 1A,
L.P. LLC LLC LLC
-------- -------- --------- ---------
ASSETS
Property and equipment 4,929 18,569 22,682 11,514
Accumulated depreciation (130) (3,323) (7,036) (2,928)
------- ------- ------- -------
4,799 15,246 15,646 8,586
Assets held for sale -- -- -- --
Investments in affiliate -- -- -- --
Due from/to subsidiaries (791) 6,367 8,459 7,330
Note receivable from subsidiaries -- -- -- --
Prepaid expenses and other assets (8) (8) (16) (56)
Accounts receivable, net of allowance for doubtful accounts -- -- -- --
Restricted cash -- -- -- --
Cash and cash equivalents -- unrestricted -- -- -- --
------- ------- ------- -------
4,000 21,605 24,089 15,860
======= ======= ======= =======
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- --
Accounts payable and accrued expenses 178 74 30 (17)
Accrued interest -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- --
Other liabilities -- -- -- --
------- ------- ------- -------
Total liabilities 178 74 30 (17)
------- ------- ------- -------
Minority interests -- -- -- --
Redeemable OP units at redemption value -- -- -- --
Partners' capital -- Common OP Units 3,822 21,531 24,059 15,877
------- ------- ------- -------
4,000 21,605 24,089 15,860
======= ======= ======= =======
MERISTAR SUB MERISTAR MERISTAR MERISTAR
7A JOINT SUB 2B, SUB 3A, SUB 4A,
VENTURE LLC LLC LLC
------------ -------- -------- ---------
ASSETS
Property and equipment 5,881 -- 3,197 --
Accumulated depreciation (121) -- (51) --
------- ------- ------- -------
5,760 -- 3,146 --
Assets held for sale -- -- -- 3,301
Investments in affiliate -- -- -- --
Due from/to subsidiaries 5,021 (7,036) 1,904 4,573
Note receivable from subsidiaries -- -- -- --
Prepaid expenses and other assets 1 -- 1 (9)
Accounts receivable, net of allowance for doubtful accounts -- 2,345 -- --
Restricted cash -- -- -- --
Cash and cash equivalents -- unrestricted -- -- -- --
------- ------- ------- -------
10,782 (4,691) 5,051 7,865
======= ======= ======= =======
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- --
Accounts payable and accrued expenses 150 (8) 161 342
Accrued interest -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- --
Other liabilities -- -- -- --
------- ------- ------- -------
Total liabilities 150 (8) 161 342
------- ------- ------- -------
Minority interests -- -- -- --
Redeemable OP units at redemption value -- -- -- --
Partners' capital -- Common OP Units 10,632 (4,683) 4,890 7,523
------- ------- ------- -------
10,782 (4,691) 5,051 7,865
======= ======= ======= =======
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2003
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MDV
SUB 4D, SUB 2A, SUB 6L, LIMITED
LLC LLC LLC PARTNERSHIP
-------- -------- -------- -----------
ASSETS
Property and equipment -- -- -- 3,850
Accumulated depreciation -- -- -- (686)
------- ------- ------- -------
-- -- -- 3,164
Assets held for sale -- -- 12,395 --
Investments in affiliate -- -- -- --
Due from/to subsidiaries 2,930 (9,934) 6,238 2,538
Note receivable from subsidiaries -- -- -- --
Prepaid expenses and other assets 3 -- 15 (4)
Accounts receivable, net of allowance for doubtful accounts -- 2,002 -- --
Restricted cash -- -- -- --
Cash and cash equivalents -- unrestricted -- -- -- --
------- ------- ------- -------
2,933 (7,932) 18,648 5,698
======= ======= ======= =======
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- --
Accounts payable and accrued expenses -- (8) 25 96
Accrued interest -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- --
Other liabilities -- -- -- --
------- ------- ------- -------
Total liabilities -- (8) 25 96
------- ------- ------- -------
Minority interests -- -- -- --
Redeemable OP units at redemption value -- -- -- --
Partners' capital -- Common OP Units 2,933 (7,924) 18,623 5,602
------- ------- ------- -------
2,933 (7,932) 18,648 5,698
======= ======= ======= =======
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5C, SUB 6J, SUB 1D, SUB 7B,
LLC LLC L.P. L.P.
-------- -------- -------- ---------
ASSETS
Property and equipment -- 19,530 68,709 4,806
Accumulated depreciation -- (3,776) (12,036) (156)
------- ------- ------- -------
-- 15,754 56,673 4,650
Assets held for sale -- -- -- --
Investments in affiliate -- -- -- --
Due from/to subsidiaries 5,088 7,636 19,511 (3,011)
Note receivable from subsidiaries -- -- -- --
Prepaid expenses and other assets -- 23 (209) 1
Accounts receivable, net of allowance for doubtful accounts -- -- -- --
Restricted cash -- -- -- --
Cash and cash equivalents -- unrestricted -- -- -- --
------- ------- ------- -------
5,088 23,413 75,975 1,640
======= ======= ======= =======
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- --
Accounts payable and accrued expenses -- (216) (91) 1,080
Accrued interest -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- --
Other liabilities -- -- -- --
------- ------- ------- -------
Total liabilities -- (216) (91) 1,080
------- ------- ------- -------
Minority interests -- -- -- --
Redeemable OP units at redemption value -- -- -- --
Partners' capital -- Common OP Units 5,088 23,629 76,066 560
------- ------- ------- -------
5,088 23,413 75,975 1,640
======= ======= ======= =======
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2003
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 7D, SUB 7G, SUB 6B, SUB 4I,
LLC LLC LLC L.P.
--------- --------- -------- --------
ASSETS
Property and equipment 52,417 1,901 10,802 --
Accumulated depreciation (9,771) -- (2,188) --
------- ------- ------- -------
42,646 1,901 8,614 --
Assets held for sale -- -- -- --
Investments in affiliate -- -- -- --
Due from/to subsidiaries 25,422 365 3,137 1,609
Note receivable from subsidiaries -- -- -- --
Prepaid expenses and other assets 192 -- (5) --
Accounts receivable, net of allowance for doubtful accounts 1,326 -- -- --
Restricted cash -- -- -- --
Cash and cash equivalents -- unrestricted -- -- -- --
------- ------- ------- -------
69,586 2,266 11,746 1,609
======= ======= ======= =======
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- --
Accounts payable and accrued expenses 4,169 (6) (107) (61)
Accrued interest -- -- -- --
Due to Interstate Hotels & Resorts (200) -- -- --
Other liabilities -- -- -- --
------- ------- ------- -------
Total liabilities 3,969 (6) (107) (61)
------- ------- ------- -------
Minority interests -- -- -- --
Redeemable OP units at redemption value -- -- -- --
Partners' capital -- Common OP Units 65,617 2,272 11,853 1,670
------- ------- ------- -------
69,586 2,266 11,746 1,609
======= ======= ======= =======
MERISTAR MERISTAR MERISTAR AGH
SUB 5D, SUB 5H, SUB 7H, PSS I,
LLC LLC LLC INC.
--------- --------- --------- -------
ASSETS
Property and equipment 42,105 -- -- --
Accumulated depreciation (8,102) -- -- --
------- ------- ------- -------
34,003 -- -- --
Assets held for sale -- -- -- --
Investments in affiliate 51,368 -- -- --
Due from/to subsidiaries (6,600) 36,579 9,567 25,579
Note receivable from subsidiaries -- -- -- --
Prepaid expenses and other assets (17) 1 -- 1
Accounts receivable, net of allowance for doubtful accounts -- 46 43 --
Restricted cash -- -- -- --
Cash and cash equivalents -- unrestricted -- -- -- --
------- ------- ------- -------
78,754 36,626 9,610 25,580
======= ======= ======= =======
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt 24,000 -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- --
Accounts payable and accrued expenses 12 (2) -- --
Accrued interest -- -- -- --
-- -- -- --
Other liabilities -- -- -- --
------- ------- ------- -------
Total liabilities 24,012 (2) -- --
------- ------- ------- -------
Minority interests -- -- -- --
Redeemable OP units at redemption value -- -- -- --
Partners' capital -- Common OP Units 54,742 36,628 9,610 25,580
------- ------- ------- -------
78,754 36,626 9,610 25,580
======= ======= ======= =======
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2003
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 2D, SUB 4F, SUB 5K, SUB 5M,
LLC L.P. LLC LLC
-------- -------- -------- --------
ASSETS
Property and equipment -- 32,615 28,386 22,056
Accumulated depreciation -- (5,809) (5,206) (2,355)
------- ------- ------- -------
-- 26,806 23,180 19,701
Assets held for sale -- -- -- --
Investments in affiliate -- -- -- --
Due from/to subsidiaries (6,223) 5,237 (365) 7,852
Note receivable from subsidiaries -- -- -- --
Prepaid expenses and other assets -- 13 (74) (48)
Accounts receivable, net of allowance for doubtful accounts 1,166 -- -- --
Restricted cash -- -- -- --
Cash and cash equivalents -- unrestricted -- -- -- --
------- ------- ------- -------
(5,057) 32,056 22,741 27,505
======= ======= ======= =======
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- --
Accounts payable and accrued expenses (1) 370 3,028 --
Accrued interest -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- --
Other liabilities -- -- -- --
------- ------- ------- -------
Total liabilities (1) 370 3,028 --
------- ------- ------- -------
Minority interests -- -- -- --
Redeemable OP units at redemption value -- -- -- --
Partners' capital -- Common OP Units (5,056) 31,686 19,713 27,505
------- ------- ------- -------
(5,057) 32,056 22,741 27,505
======= ======= ======= =======
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 1E, SUB 5O, SUB 4B, SUB 2C,
L.P. LLC L.P. LLC
-------- -------- -------- --------
ASSETS
Property and equipment -- 8,741 -- --
Accumulated depreciation -- (1,144) -- --
------- ------- ------- -------
-- 7,597 -- --
Assets held for sale -- -- 7,158 9,415
Investments in affiliate -- -- -- --
Due from/to subsidiaries 24,172 3,077 (4,789) 5,673
Note receivable from subsidiaries -- -- -- --
Prepaid expenses and other assets (1) (15) (4) (240)
Accounts receivable, net of allowance for doubtful accounts 198 -- -- --
Restricted cash -- -- -- --
Cash and cash equivalents -- unrestricted -- -- -- --
------- ------- ------- -------
24,369 10,659 2,365 14,848
======= ======= ======= =======
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- 19,731
Notes payable to MeriStar Hospitality Corporation -- -- -- --
Accounts payable and accrued expenses 14 (8) 410 257
Accrued interest -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- --
Other liabilities -- -- -- --
------- ------- ------- -------
Total liabilities 14 (8) 410 19,988
------- ------- ------- -------
Minority interests -- -- -- --
Redeemable OP units at redemption value -- -- -- --
Partners' capital -- Common OP Units 24,355 10,667 1,955 (5,140)
------- ------- ------- -------
24,369 10,659 2,365 14,848
======= ======= ======= =======
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2003
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 4G, SUB 3B, SUB 5G, SUB 5P,
L.P. LLC L.P. LLC
-------- -------- --------- ---------
ASSETS
Property and equipment 9,086 -- 164,273 39
Accumulated depreciation -- -- (30,502) (23)
------- -------- -------- --------
9,086 -- 133,771 16
Assets held for sale -- -- -- --
Investments in affiliate -- -- -- --
Due from/to subsidiaries 8,806 9,336 42,679 3,088
Note receivable from subsidiaries -- -- -- --
Prepaid expenses and other assets (89) (3) (255) (4)
Accounts receivable, net of allowance for doubtful accounts -- -- -- 38
Restricted cash -- -- -- --
Cash and cash equivalents -- unrestricted -- -- -- --
-------- -------- -------- --------
17,803 9,333 176,195 3,138
======== ======== ======== ========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- --
Accounts payable and accrued expenses 488 -- 775 --
Accrued interest -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- --
Other liabilities -- -- -- --
-------- -------- -------- --------
Total liabilities 488 -- 775 --
-------- -------- -------- --------
Minority interests -- -- -- --
Redeemable OP units at redemption value -- -- -- --
Partners' capital -- Common OP Units 17,315 9,333 175,420 3,138
-------- -------- -------- --------
17,803 9,333 176,195 3,138
======== ======== ======== ========
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5J, SUB 5Q, SUB 5A, SUB 8D,
LLC LLC LLC LLC
-------- -------- -------- --------
ASSETS
Property and equipment 110,406 16,737 35,707 --
Accumulated depreciation (16,816) (2,269) (10,686) --
-------- -------- -------- --------
93,590 14,468 25,021 --
Assets held for sale -- -- -- 9,097
Investments in affiliate -- -- 4,627 --
Due from/to subsidiaries 21,963 4,637 6,562 8,303
Note receivable from subsidiaries -- -- -- --
Prepaid expenses and other assets (370) (53) (29) 14
Accounts receivable, net of allowance for doubtful accounts -- -- -- --
Restricted cash -- -- -- --
Cash and cash equivalents -- unrestricted -- -- -- --
-------- -------- -------- --------
115,183 19,052 36,181 17,414
======== ======== ======== ========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- 23,609 --
Notes payable to MeriStar Hospitality Corporation -- -- -- --
Accounts payable and accrued expenses 131 (189) (195) (183)
Accrued interest -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- --
Other liabilities -- -- -- --
-------- -------- -------- --------
Total liabilities 131 (189) 23,414 (183)
-------- -------- -------- --------
Minority interests -- -- -- --
Redeemable OP units at redemption value -- -- -- --
Partners' capital -- Common OP Units 115,052 19,241 12,767 17,597
-------- -------- -------- --------
115,183 19,052 36,181 17,414
======== ======== ======== ========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2003
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR GUARANTOR
SUB 4J, HOTEL LESSEE, SUBSIDIARIES
LLC INC. TOTAL ELIMINATIONS
----------- -------------- ------------- ------------
ASSETS
Property and equipment 38,463 3,146 1,055,333 --
Accumulated depreciation (7,127) (3,284) (186,722) --
---------- ---------- ---------- ----------
31,336 (138) 868,611 --
Assets held for sale -- -- 46,896 --
Investments in affiliate -- 1,629 60,760 (2,262,601)
Due from/to subsidiaries 7,469 (189) 440,421 --
Note receivable from subsidiaries -- -- -- (120,855)
Prepaid expenses and other assets (19) 15,471 13,987 --
Accounts receivable, net of allowance for doubtful accounts (13) 38,183 45,533 --
Restricted cash -- -- 115 --
Cash and cash equivalents -- unrestricted -- 12,230 12,230 --
---------- ---------- ---------- ----------
38,773 67,186 1,488,553 (2,383,456)
========== ========== ========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- 81,027 148,400 (120,855)
Notes payable to MeriStar Hospitality Corporation -- -- -- --
Accounts payable and accrued expenses 81 45,862 59,691 --
Accrued interest -- 778 778 --
Due to Interstate Hotels & Resorts -- 9,688 9,488 --
Other liabilities -- 9,599 9,599 --
---------- ---------- ---------- ----------
81 146,954 227,956 (120,855)
---------- ---------- ---------- ----------
Minority interests -- -- -- --
Redeemable OP units at redemption value -- -- -- --
Partners' capital -- Common OP Units 38,692 (79,768) 1,260,597 (2,262,601)
---------- ---------- ---------- ----------
38,773 67,186 1,488,553 (2,383,456)
========== ========== ========== ==========
TOTAL
CONSOLIDATED
------------
ASSETS
Property and equipment 2,481,752
Accumulated depreciation (446,032)
-----------
2,035,720
Assets held for sale 51,169
Investments in affiliate 15,000
Due from/to subsidiaries --
Note receivable from subsidiaries --
Prepaid expenses and other assets 47,033
Accounts receivable, net of allowance for doubtful accounts 64,709
Restricted cash 42,523
Cash and cash equivalents -- unrestricted 230,876
-----------
2,487,030
===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt 1,381,555
Notes payable to MeriStar Hospitality Corporation 256,473
Accounts payable and accrued expenses 80,014
Accrued interest 46,813
Due to Interstate Hotels & Resorts 16,411
Other liabilities 11,045
-----------
1,792,311
-----------
Minority interests 2,496
Redeemable OP units at redemption value 35,926
Partners' capital -- Common OP Units 656,297
-----------
2,487,030
===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2004
(DOLLARS IN THOUSANDS)
MERISTAR NON- MERISTAR AGH MERISTAR
HOSPITALITY GUARANTOR SUB 7C, UPREIT, SUB 5N,
OP, L.P. SUBSIDIARIES LLC LLC LLC
---------- ------------ ---------- ---------- ------------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental parking and other revenue 1,604 634 -- -- --
Participating lease revenue -- 33,982 -- -- 308
---------- ---------- ---------- ---------- ----------
Total revenue 1,604 34,616 -- -- 308
---------- ---------- ---------- ---------- ----------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other expenses -- 290 -- -- --
Other operating expenses:
General and administrative 3,831 -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 3,377 12,657 -- -- 34
Property taxes, insurance and other -- 5,338 -- -- 28
Loss on asset impairments -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Total operating expenses 7,208 18,285 -- -- 62
---------- ---------- ---------- ---------- ----------
Operating (loss) income (5,604) 16,331 -- -- 246
---------- ---------- ---------- ---------- ----------
Minority interest 4 -- -- -- --
Interest expense, net (23,430) (8,293) -- -- --
Loss on early extinguishments of debt (5,923) -- -- -- --
Equity in income from consolidated entities (6,866) -- -- -- --
---------- ---------- ---------- ---------- ----------
(Loss) income before income taxes and
discontinued operations (41,819) 8,038 -- -- 246
Income tax benefit 323 -- -- -- --
---------- ---------- ---------- ---------- ----------
(Loss) income before discontinued operations (41,496) 8,038 -- -- 246
Discontinued operations:
Income (loss) from discontinued operations
before income tax benefit 477 (447) -- -- --
Income tax benefit 132 -- -- -- --
---------- ---------- ---------- ---------- ----------
Income (loss) on discontinued operations 609 (447) -- -- --
---------- ---------- ---------- ---------- ----------
Net (loss) income (40,887) 7,591 -- -- 246
========== ========== ========== ========== ==========
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 8A, SUB 8F, SUB 8G, SUB 6H,
LLC L.P. LLC L.P.
---------- ---------- ---------- ----------
Revenue:
Hotel operations:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operations -- -- -- --
Office rental parking and other revenue -- -- -- --
Participating lease revenue -- 601 -- 302
---------- ---------- ---------- ----------
Total revenue -- 601 -- 302
---------- ---------- ---------- ----------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other operating departments -- -- -- --
Office rental, parking and other expenses -- -- -- --
Other operating expenses:
General and administrative -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization -- 164 -- 157
Property taxes, insurance and other -- 123 -- 24
Loss on asset impairments -- -- -- --
---------- ---------- ---------- ----------
Total operating expenses -- 287 -- 181
---------- ---------- ---------- ----------
Operating (loss) income -- 314 -- 121
---------- ---------- ---------- ----------
Minority interest -- -- -- --
Interest expense, net -- -- -- --
Loss on early extinguishments of debt -- -- -- --
Equity in income from consolidated entities -- -- -- --
---------- ---------- ---------- ----------
(Loss) income before income taxes and
discontinued operations -- 314 -- 121
Income tax benefit -- -- -- --
---------- ---------- ---------- ----------
(Loss) income before discontinued operations -- 314 -- 121
Discontinued operations:
Income (loss) from discontinued operations
before income tax benefit -- -- -- --
Income tax benefit -- -- -- --
---------- ---------- ---------- ----------
Income (loss) on discontinued operations -- -- -- --
---------- ---------- ---------- ----------
Net (loss) income -- 314 -- 121
========== ========== ========== ==========
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 8B, SUB 1C, SUB 8E, SUB 7F,
LLC L.P. LLC LLC
---------- ---------- ---------- ----------
Revenue:
Hotel operations:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operations -- -- -- --
Office rental parking and other revenue -- -- 9 --
Participating lease revenue 1,864 422 371 245
---------- ---------- ---------- ----------
Total revenue 1,864 422 380 245
---------- ---------- ---------- ----------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other operating departments -- -- -- --
Office rental, parking and other expenses -- -- -- -
Other operating expenses:
General and administrative -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization 595 356 149 97
Property taxes, insurance and other 306 210 62 29
Loss on asset impairments -- -- -- --
---------- ---------- ---------- ----------
Total operating expenses 901 566 211 126
---------- ---------- ---------- ----------
Operating (loss) income 963 (144) 169 119
---------- ---------- ---------- ----------
Minority interest -- -- -- --
Interest expense, net -- -- -- --
Loss on early extinguishments of debt -- -- -- --
Equity in income from consolidated entities -- -- -- --
---------- ---------- ---------- ----------
(Loss) income before income taxes and
discontinued operations 963 (144) 169 119
Income tax benefit -- -- -- --
---------- ---------- ---------- ----------
(Loss) income before discontinued operations 963 (144) 169 119
Discontinued operations:
Income (loss) from discontinued operations
before income tax benefit -- -- -- --
Income tax benefit -- -- -- --
---------- ---------- ---------- ----------
Income (loss) on discontinued operations -- -- -- --
---------- ---------- ---------- ----------
Net (loss) income 963 (144) 169 119
========== ========== ========== ==========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2004
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5L, SUB 3C, SUB 5R, SUB 6D, SUB 6E,
LLC LLC LLC LLC LLC
----------- ----------- ----------- ----------- -----------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental parking and other revenue -- 1 -- 49 --
Participating lease revenue 377 583 -- 432 1,413
----------- ----------- ----------- ----------- -----------
Total revenue 377 584 -- 481 1,413
----------- ----------- ----------- ----------- -----------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses:
General and administrative -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 38 178 -- 137 410
Property taxes, insurance and other 40 109 -- 78 153
Loss on asset impairments -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total operating expenses 78 287 -- 215 563
----------- ----------- ----------- ----------- -----------
Operating (loss) income 299 297 -- 266 850
----------- ----------- ----------- ----------- -----------
Minority interest -- -- -- -- --
Interest expense, net -- -- -- -- --
Loss on early extinguishments of debt -- -- -- -- --
Equity in income from consolidated entities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
(Loss) income before income taxes and
discontinued operations 299 297 -- 266 850
Income tax benefit -- -- -- -- --
----------- ----------- ----------- ----------- -----------
(Loss) income before discontinued operations 299 297 -- 266 850
Discontinued operations:
Income (loss) from discontinued operations
before income tax benefit -- -- -- -- --
Income tax benefit -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Income (loss) on discontinued operations -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Net (loss) income 299 297 -- 266 850
========== ========== ========== ========== ==========
</Table>
<Table>
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 4E, SUB 1B, SUB 5F, SUB 6G,
L.P. LLC L.P. LLC
----------- ----------- ----------- -----------
Revenue:
Hotel operations:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operations -- -- -- --
Office rental parking and other revenue 1 -- -- --
Participating lease revenue 360 604 692 829
----------- ----------- ----------- -----------
Total revenue 361 604 692 829
----------- ----------- ----------- -----------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other operating departments -- -- -- --
Office rental, parking and other expenses -- -- -- --
Other operating expenses:
General and administrative -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization 76 128 196 209
Property taxes, insurance and other 120 47 98 105
Loss on asset impairments -- -- -- --
----------- ----------- ----------- -----------
Total operating expenses 196 175 294 314
----------- ----------- ----------- -----------
Operating (loss) income 165 429 398 515
----------- ----------- ----------- -----------
Minority interest -- -- -- --
Interest expense, net -- -- -- --
Loss on early extinguishments of debt -- -- -- --
Equity in income from consolidated entities -- -- -- --
----------- ----------- ----------- -----------
(Loss) income before income taxes and
discontinued operations 165 429 398 515
Income tax benefit -- -- -- --
----------- ----------- ----------- -----------
(Loss) income before discontinued operations 165 429 398 515
Discontinued operations:
Income (loss) from discontinued operations
before income tax benefit -- -- -- --
Income tax benefit -- -- -- --
----------- ----------- ----------- -----------
Income (loss) on discontinued operations -- -- -- --
----------- ----------- ----------- -----------
Net (loss) income 165 429 398 515
========== ========== ========== ==========
</Table>
<Table>
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 8C, SUB 4C, SUB 4H, SUB 7E,
LLC L.P. L.P. LLC
----------- ----------- ----------- -----------
Revenue:
Hotel operations:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operations -- -- -- --
Office rental parking and other revenue -- -- -- 1
Participating lease revenue -- -- -- 345
----------- ----------- ----------- -----------
Total revenue -- -- -- 346
----------- ----------- ----------- -----------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other operating departments -- -- -- --
Office rental, parking and other expenses -- -- -- --
Other operating expenses:
General and administrative -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization -- -- -- 152
Property taxes, insurance and other -- -- -- 52
Loss on asset impairments -- -- -- --
----------- ----------- ----------- -----------
Total operating expenses -- -- -- 204
----------- ----------- ----------- -----------
Operating (loss) income -- -- -- 142
----------- ----------- ----------- -----------
Minority interest -- -- -- --
Interest expense, net -- -- -- --
Loss on early extinguishments of debt -- -- -- --
Equity in income from consolidated entities -- -- -- --
----------- ----------- ----------- -----------
(Loss) income before income taxes and
discontinued operations -- -- -- 142
Income tax benefit -- -- -- --
----------- ----------- ----------- -----------
(Loss) income before discontinued operations -- -- -- 142
Discontinued operations:
Income (loss) from discontinued operations
before income tax benefit (203) -- (403) --
Income tax benefit -- -- -- --
----------- ----------- ----------- -----------
Income (loss) on discontinued operations (203) -- (403) --
----------- ----------- ----------- -----------
Net (loss) income (203) -- (403) 142
=========== ========== ========== ==========
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2004
(DOLLARS IN THOUSANDS)
MERISTAR
MERISTAR MERISTAR SUB 7A MERISTAR MERISTAR
SUB 3D, SUB 1A, JOINT SUB 2B, SUB 3A,
LLC LLC VENTURE LLC LLC
---------- ---------- ---------- ---------- ----------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental parking and other revenue -- -- -- -- --
Participating lease revenue 376 422 270 -- --
---------- ---------- ---------- ---------- ----------
Total revenue 376 422 270 -- --
---------- ---------- ---------- ---------- ----------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses:
General and administrative -- 34 -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 192 113 61 -- --
Property taxes, insurance and other 65 108 64 -- --
Loss on asset impairments -- 184 809 -- --
---------- ---------- ---------- ---------- ----------
Total operating expenses 257 439 934 -- --
---------- ---------- ---------- ---------- ----------
Operating (loss) income 119 (17) (664) -- --
---------- ---------- ---------- ---------- ----------
Minority interest -- -- -- -- --
Interest expense, net -- -- -- -- --
Loss on early extinguishments of debt -- -- -- -- --
Equity in income from consolidated entities -- -- -- -- --
---------- ---------- ---------- ---------- ----------
(Loss) income before income taxes and
discontinued operations 119 (17) (664) -- --
Income tax benefit -- -- -- -- --
---------- ---------- ---------- ---------- ----------
(Loss) income before discontinued operations 119 (17) (664) -- --
Discontinued operations:
Income (loss) from discontinued operations
before income tax benefit -- -- -- -- 89
Income tax benefit -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Income (loss) on discontinued operations -- -- -- -- 89
Net (loss) income 119 (17) (664) -- 89
========== ========== ========== ========== ==========
</Table>
<Table>
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 4A, SUB 4D, SUB 2A, SUB 6L,
LLC LLC LLC LLC
---------- ---------- ---------- ----------
Revenue:
Hotel operations:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operations -- -- -- --
Office rental parking and other revenue -- -- -- --
Participating lease revenue -- -- -- --
---------- ---------- ---------- ----------
Total revenue -- -- -- --
---------- ---------- ---------- ----------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other operating departments -- -- -- --
Office rental, parking and other expenses -- -- -- --
Other operating expenses:
General and administrative -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization -- -- -- --
Property taxes, insurance and other -- -- -- --
Loss on asset impairments -- -- -- --
---------- ---------- ---------- ----------
Total operating expenses -- -- -- --
---------- ---------- ---------- ----------
Operating (loss) income -- -- -- --
---------- ---------- ---------- ----------
Minority interest -- -- -- --
Interest expense, net -- -- -- --
Loss on early extinguishments of debt -- -- -- --
Equity in income from consolidated entities -- -- -- --
---------- ---------- ---------- ----------
(Loss) income before income taxes and
discontinued operations -- -- -- --
Income tax benefit -- -- -- --
---------- ---------- ---------- ----------
(Loss) income before discontinued operations -- -- -- --
Discontinued operations:
Income (loss) from discontinued operations
before income tax benefit 96 -- -- 1,852
Income tax benefit -- -- -- --
---------- ---------- ---------- ----------
Income (loss) on discontinued operations 96 -- -- 1,852
---------- ---------- ---------- ----------
Net (loss) income 96 -- -- 1,852
========== ========== ========== ==========
</Table>
<Table>
MDV MERISTAR MERISTAR MERISTAR
LIMITED SUB 5C, SUB 6J, SUB 1D,
PARTNERSHIP LLC LLC L.P.
----------- ---------- ---------- ----------
Revenue:
Hotel operations:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operations -- -- -- --
Office rental parking and other revenue -- -- -- 85
Participating lease revenue 130 -- 496 1,389
---------- ---------- ---------- ----------
Total revenue 130 -- 496 1,474
---------- ---------- ---------- ----------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other operating departments -- -- -- --
Office rental, parking and other expenses -- -- -- 28
Other operating expenses:
General and administrative -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization 23 -- 141 569
Property taxes, insurance and other 29 -- 75 418
Loss on asset impairments -- -- -- --
---------- ---------- ---------- ----------
Total operating expenses 52 -- 216 1,015
---------- ---------- ---------- ----------
Operating (loss) income 78 -- 280 459
---------- ---------- ---------- ----------
Minority interest -- -- -- --
Interest expense, net -- -- -- --
Loss on early extinguishments of debt -- -- -- --
Equity in income from consolidated entities -- -- -- --
---------- ---------- ---------- ----------
(Loss) income before income taxes and
discontinued operations 78 -- 280 459
Income tax benefit -- -- -- --
---------- ---------- ---------- ----------
(Loss) income before discontinued operations 78 -- 280 459
Discontinued operations:
Income (loss) from discontinued operations
before income tax benefit -- -- -- --
Income tax benefit -- -- -- --
---------- ---------- ---------- ----------
Income (loss) on discontinued operations -- -- -- --
---------- ---------- ---------- ----------
Net (loss) income 78 -- 280 459
========== ========== ========== ==========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2004
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 7B, SUB 7D, SUB 7G, SUB 6B, SUB 4I,
L.P. LLC LLC LLC L.P.
---------- ---------- ---------- ---------- ----------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental parking and other revenue -- 436 -- -- --
Participating lease revenue -- 1,461 -- 237 --
---------- ---------- ---------- ---------- ----------
Total revenue -- 1,897 -- 237 --
---------- ---------- ---------- ---------- ----------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other expenses -- 199 -- -- --
Other operating expenses:
General and administrative -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization -- 431 -- 112 --
Property taxes, insurance and other -- 658 -- 58 --
Loss on asset impairments -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Total operating expenses -- 1,288 -- 170 --
---------- ---------- ---------- ---------- ----------
Operating (loss) income -- 609 -- 67 --
---------- ---------- ---------- ---------- ----------
Minority interest -- -- -- -- --
Interest expense, net -- -- -- -- --
Loss on early extinguishments of debt -- -- -- -- --
Equity in income from consolidated entities -- -- -- -- --
---------- ---------- ---------- ---------- ----------
(Loss) income before income taxes and
discontinued operations -- 609 -- 67 --
Income tax benefit -- -- -- -- --
---------- ---------- ---------- ---------- ----------
(Loss) income before discontinued operations -- 609 -- 67 --
Discontinued operations:
Income (loss) from discontinued operations
before income tax benefit (284) -- 47 -- --
Income tax benefit -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Income (loss) on discontinued operations (284) -- 47 -- --
---------- ---------- ---------- ---------- ----------
Net (loss) income (284) 609 47 67 --
========== ========== ========== ========== ==========
</Table>
<Table>
MERISTAR MERISTAR MERISTAR AGH PSS
SUB 5D, SUB 5H, SUB 7H, I,
LLC LLC LLC INC.
---------- ---------- ---------- ----------
Revenue:
Hotel operations:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operations -- -- -- --
Office rental parking and other revenue -- -- -- --
Participating lease revenue 459 -- -- --
---------- ---------- ---------- ----------
Total revenue 459 -- -- --
---------- ---------- ---------- ----------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other operating departments -- -- -- --
Office rental, parking and other expenses -- -- -- --
Other operating expenses:
General and administrative -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization 369 -- -- --
Property taxes, insurance and other 53 -- -- --
Loss on asset impairments -- -- -- --
---------- ---------- ---------- ----------
Total operating expenses 422 -- -- --
---------- ---------- ---------- ----------
Operating (loss) income 37 -- -- --
---------- ---------- ---------- ----------
Minority interest -- -- -- --
Interest expense, net (307) -- -- --
Loss on early extinguishments of debt -- -- -- --
Equity in income from consolidated entities -- -- -- --
---------- ---------- ---------- ----------
(Loss) income before income taxes and
discontinued operations (270) -- -- --
Income tax benefit -- -- -- --
---------- ---------- ---------- ----------
(Loss) income before discontinued operations (270) -- -- --
Discontinued operations:
Income (loss) from discontinued operations
before income tax benefit -- -- -- --
Income tax benefit -- -- -- --
---------- ---------- ---------- ----------
Income (loss) on discontinued operations -- -- -- --
---------- ---------- ---------- ----------
Net (loss) income (270) -- -- --
========== ========== ========== ==========
</Table>
<Table>
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 2D, SUB 4F, SUB 5K, SUB 5M,
LLC L.P. LLC LLC
---------- ---------- ---------- ----------
Revenue:
Hotel operations:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operations -- -- -- --
Office rental parking and other revenue -- 4 -- --
Participating lease revenue -- 492 686 569
---------- ---------- ---------- ----------
Total revenue -- 496 686 569
---------- ---------- ---------- ----------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other operating departments -- -- -- --
Office rental, parking and other expenses -- -- -- --
Other operating expenses:
General and administrative -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization -- 277 324 118
Property taxes, insurance and other -- 89 98 71
Loss on asset impairments -- -- -- --
---------- ---------- ---------- ----------
Total operating expenses -- 366 422 189
---------- ---------- ---------- ----------
Operating (loss) income -- 130 264 380
---------- ---------- ---------- ----------
Minority interest -- -- -- --
Interest expense, net -- -- -- --
Loss on early extinguishments of debt -- -- -- --
Equity in income from consolidated entities -- -- -- --
---------- ---------- ---------- ----------
(Loss) income before income taxes and
discontinued operations -- 130 264 380
Income tax benefit -- -- -- --
---------- ---------- ---------- ----------
(Loss) income before discontinued operations -- 130 264 380
Discontinued operations:
Income (loss) from discontinued operations
before income tax benefit -- -- -- --
Income tax benefit -- -- -- --
---------- ---------- ---------- ----------
Income (loss) on discontinued operations -- -- -- --
---------- ---------- ---------- ----------
Net (loss) income -- 130 264 380
========== ========== ========== ==========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2004
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 1E, SUB 5O, SUB 4B, SUB 2C, SUB 4G,
L.P. LLC L.P. LLC L.P.
---------- ---------- ---------- ---------- ----------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental parking and other revenue -- -- -- -- --
Participating lease revenue -- 261 -- -- 577
---------- ---------- ---------- ---------- ----------
Total revenue -- 261 -- -- 577
---------- ---------- ---------- ---------- ----------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses:
General and administrative -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization -- 57 -- -- 112
Property taxes, insurance and other -- 27 -- -- 135
Loss on asset impairments -- -- -- -- 245
---------- ---------- ---------- ---------- ----------
Total operating expenses -- 84 -- -- 492
---------- ---------- ---------- ---------- ----------
Operating (loss) income -- 177 -- -- 85
---------- ---------- ---------- ---------- ----------
Minority interest -- -- -- -- --
Interest expense, net -- -- -- -- --
Loss on early extinguishments of debt -- -- -- -- --
Equity in income from consolidated entities -- -- -- -- --
---------- ---------- ---------- ---------- ----------
(Loss) income before income taxes and
discontinued operations -- 177 -- -- 85
Income tax benefit -- -- -- -- --
---------- ---------- ---------- ---------- ----------
(Loss) income before discontinued operations -- 177 -- -- 85
Discontinued operations:
Income (loss) from discontinued operations
before income tax benefit -- -- (216) (978) --
Income tax benefit -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Income (loss) on discontinued operations -- -- (216) (978) --
---------- ---------- ---------- ---------- ----------
Net (loss) income -- 177 (216) (978) 85
========== ========== ========== ========== ==========
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 3B, SUB 5G, SUB 5P, SUB 5J,
LLC L.P. LLC LLC
---------- ---------- ---------- ----------
Revenue:
Hotel operations:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operations -- -- -- --
Office rental parking and other revenue -- 7 -- --
Participating lease revenue -- 3,062 167 2,675
---------- ---------- ---------- ----------
Total revenue -- 3,069 167 2,675
---------- ---------- ---------- ----------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other operating departments -- -- -- --
Office rental, parking and other expenses -- -- -- --
Other operating expenses:
General and administrative -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization -- 1,572 1 1,415
Property taxes, insurance and other -- 426 2 375
Loss on asset impairments -- -- -- --
---------- ---------- ---------- ----------
Total operating expenses -- 1,998 3 1,790
---------- ---------- ---------- ----------
Operating (loss) income -- 1,071 164 885
---------- ---------- ---------- ----------
Minority interest -- -- -- --
Interest expense, net -- -- -- --
Loss on early extinguishments of debt -- -- -- --
Equity in income from consolidated entities -- -- -- --
---------- ---------- ---------- ----------
(Loss) income before income taxes and
discontinued operations -- 1,071 164 885
Income tax benefit -- -- -- --
---------- ---------- ---------- ----------
(Loss) income before discontinued operations -- 1,071 164 885
Discontinued operations:
Income (loss) from discontinued operations
before income tax benefit -- -- -- --
Income tax benefit -- -- -- --
---------- ---------- ---------- ----------
Income (loss) on discontinued operations -- -- -- --
---------- ---------- ---------- ----------
Net (loss) income -- 1,071 164 885
========== ========== ========== ==========
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5Q, SUB 5A, SUB 8D, SUB 4J,
LLC LLC LLC LLC
---------- ---------- ---------- ----------
Revenue:
Hotel operations:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operations -- -- -- --
Office rental parking and other revenue -- 36 -- 32
Participating lease revenue 571 1,631 -- 654
---------- ---------- ---------- ----------
Total revenue 571 1,667 -- 686
---------- ---------- ---------- ----------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other operating departments -- -- -- --
Office rental, parking and other expenses -- -- -- 68
Other operating expenses:
General and administrative -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization 140 269 -- 315
Property taxes, insurance and other 57 189 -- 91
Loss on asset impairments -- -- -- --
---------- ---------- ---------- ----------
Total operating expenses 197 458 -- 474
---------- ---------- ---------- ----------
Operating (loss) income 374 1,209 -- 212
---------- ---------- ---------- ----------
Minority interest -- -- -- --
Interest expense, net -- (708) -- --
Loss on early extinguishments of debt -- -- -- --
Equity in income from consolidated entities -- -- -- --
---------- ---------- ---------- ----------
(Loss) income before income taxes and
discontinued operations 374 501 -- 212
Income tax benefit -- -- -- --
---------- ---------- ---------- ----------
(Loss) income before discontinued operations 374 501 -- 212
Discontinued operations:
Income (loss) from discontinued operations
before income tax benefit -- -- (857) --
Income tax benefit -- -- -- --
---------- ---------- ---------- ----------
Income (loss) on discontinued operations -- -- (857) --
---------- ---------- ---------- ----------
Net (loss) income 374 501 (857) 212
========== ========== ========== ==========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2004
(DOLLARS IN THOUSANDS)
MERISTAR GUARANTOR
HOTEL SUBSIDIARIES TOTAL
LESSEE, INC. TOTAL ELIMINATIONS CONSOLIDATED
------------ ------------ ------------ ------------
Revenue:
Hotel operations:
Rooms 135,666 135,666 -- 135,666
Food and beverage 51,879 51,879 -- 51,879
Other hotel operations 17,043 17,043 -- 17,043
Office rental parking and other revenue 71 732 -- 2,970
Participating lease revenue -- 26,333 (60,315) --
---------- ---------- ---------- ----------
Total revenue 204,659 231,653 (60,315) 207,558
---------- ---------- ---------- ----------
Hotel operating expenses:
Rooms 33,224 33,224 -- 33,224
Food and beverage 38,881 38,881 -- 38,881
Other operating departments 10,363 10,363 -- 10,363
Office rental, parking and other expenses -- 295 -- 585
Other operating expenses:
General and administrative 34,156 34,190 -- 38,021
Property operating costs 31,488 31,488 -- 31,488
Depreciation and amortization 39 9,726 -- 25,760
Property taxes, insurance and other 67,366 72,038 (60,315) 17,061
Loss on asset impairments -- 1,238 -- 1,238
---------- ---------- ---------- ----------
Total operating expenses 215,517 231,443 (60,315) 196,621
---------- ---------- ---------- ----------
Operating (loss) income (10,858) 210 -- 10,937
---------- ---------- ---------- ----------
Minority interest -- -- -- 4
Interest expense, net (1,642) (2,657) -- (34,380)
Loss on early extinguishments of debt -- -- -- (5,923)
Equity in income from consolidated entities -- -- 6,866 --
---------- ---------- ---------- ----------
(Loss) income before income taxes and
discontinued operations (12,500) (2,447) 6,866 (29,362)
Income tax benefit -- -- -- 323
---------- ---------- ---------- ----------
(Loss) income before discontinued operations (12,500) (2,447) 6,866 (29,039)
Discontinued operations:
Income (loss) from discontinued operations
before income tax benefit (11,153) (12,010) -- (11,980)
Income tax benefit -- -- -- 132
---------- ---------- ---------- ----------
Income (loss) on discontinued operations (11,153) (12,010) -- (11,848)
---------- ---------- ---------- ----------
Net (loss) income (23,653) (14,457) 6,866 (40,887)
========== ========== ========== ==========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
MERISTAR NON-
HOSPITALITY OP, GUARANTOR MERISTAR SUB AGH UPREIT, MERISTAR SUB
L.P. SUBSIDIARIES 7C, LLC LLC 5N, LLC
--------------- ------------ ------------ ----------- ------------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue 2,053 664 -- -- --
Participating lease revenue -- 28,689 -- -- 281
--------------- ------------ ------------ ----------- ------------
Total revenue 2,053 29,353 -- -- 281
--------------- ------------ ------------ ----------- ------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other expenses -- 289 -- -- --
Other operating expenses:
General and administrative 2,919 -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 2,214 11,044 -- -- 34
Property taxes, insurance and other 642 5,400 -- -- 27
Loss on asset impairments -- -- -- -- --
--------------- ------------ ------------ ----------- ------------
Operating expenses 5,775 16,733 -- -- 61
--------------- ------------ ------------ ----------- ------------
Operating (loss) income (3,722) 12,620 -- -- 220
Minority interest (11) -- -- -- --
Interest expense, net (26,405) (6,836) -- -- --
Equity in income from consolidated entities (44,064) -- -- -- --
--------------- ------------ ------------ ----------- ------------
(Loss) income before income taxes and discontinued
operations (74,202) 5,784 -- -- 220
Income tax benefit 128 -- -- -- --
--------------- ------------ ------------ ----------- ------------
(Loss) income before discontinued operations (74,074) 5,784 -- -- 220
Discontinued operations:
Income (loss) from discontinued operations
before income tax benefit 860 (2,632) -- -- --
Income tax benefit 16 -- -- -- --
--------------- ------------ ------------ ----------- ------------
Income (loss) on discontinued operations 876 (2,632) -- -- --
--------------- ------------ ------------ ----------- ------------
Net (loss) income (73,198) 3,152 -- -- 220
=============== ============ ============ =========== ============
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
8A, LLC 8F, L.P. 8G, LLC 6H, L.P.
--------------- ------------ ------------ ------------
Revenue:
Hotel operations:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operations -- -- -- --
Office rental, parking and other revenue -- -- -- --
Participating lease revenue -- 586 -- 256
--------------- ------------ ------------ -----------
Total revenue -- 586 -- 256
--------------- ------------ ------------ -----------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other operating departments -- -- -- --
Office rental, parking and other expenses -- -- -- --
Other operating expenses:
General and administrative -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization -- 115 -- 108
Property taxes, insurance and other -- 146 -- 24
Loss on asset impairments -- -- -- --
--------------- ------------ ------------ -----------
Operating expenses -- 261 -- 132
--------------- ------------ ------------ -----------
Operating (loss) income -- 325 -- 124
Minority interest -- -- -- --
Interest expense, net -- -- -- --
Equity in income from consolidated entities -- -- -- --
--------------- ------------ ------------ -----------
(Loss) income before income taxes and discontinued
operations -- 325 -- 124
Income tax benefit -- -- -- --
--------------- ------------ ------------ -----------
(Loss) income before discontinued operations -- 325 -- 124
Discontinued operations:
Income (loss) from discontinued operations
before income tax benefit -- -- -- --
Income tax benefit -- -- -- --
--------------- ------------ ------------ -----------
Income (loss) on discontinued operations -- -- -- --
--------------- ------------ ------------ -----------
Net (loss) income -- 325 -- 124
=============== ============ ============ ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
8B, LLC 1C, L.P. 8E, LLC 7F, LLC 5L, LLC
--------------- ------------ ------------ ----------- ------------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue -- -- 5 -- --
Participating lease revenue 1,818 526 362 226 319
--------------- ------------ ------------ ----------- ------------
Total revenue 1,818 526 367 226 319
--------------- ------------ ------------ ----------- ------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses:
General and administrative -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 610 254 146 115 34
Property taxes, insurance and other 346 242 54 40 24
Loss on asset impairments -- -- -- -- --
--------------- ------------ ------------ ----------- ------------
Operating expenses 956 496 200 155 58
--------------- ------------ ------------ ----------- ------------
Operating (loss) income 862 30 167 71 261
Minority interest -- -- -- -- --
Interest expense, net -- -- -- -- (2)
Equity in income from consolidated entities -- -- -- -- --
--------------- ------------ ------------ ----------- ------------
(Loss) income before income taxes and discontinued
operations 862 30 167 71 259
Income tax benefit -- -- -- -- --
--------------- ------------ ------------ ----------- ------------
(Loss) income before discontinued operations 862 30 167 71 259
Discontinued operations:
Income (loss) from discontinued operations
before income tax benefit -- -- -- -- --
Income tax benefit -- -- -- -- --
--------------- ------------ ------------ ----------- ------------
Income (loss) on discontinued operations -- -- -- -- --
--------------- ------------ ------------ ----------- ------------
Net (loss) income 862 30 167 71 259
=============== ============ ============ =========== ============
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
3C, LLC 5R, LLC 6D, LLC 6E, LLC
--------------- ------------ ------------ ------------
Revenue:
Hotel operations:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operations -- -- -- --
Office rental, parking and other revenue -- -- 4 --
Participating lease revenue 594 -- 432 1,308
--------------- ------------ ------------ -----------
Total revenue 594 -- 436 1,308
--------------- ------------ ------------ -----------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other operating departments -- -- -- --
Office rental, parking and other expenses -- -- -- --
Other operating expenses:
General and administrative -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization 179 -- 137 414
Property taxes, insurance and other 98 -- 79 161
Loss on asset impairments -- -- -- --
--------------- ------------ ------------ -----------
Operating expenses 277 -- 216 575
--------------- ------------ ------------ -----------
Operating (loss) income 317 -- 220 733
Minority interest -- -- -- --
Interest expense, net -- -- -- --
Equity in income from consolidated entities -- -- -- --
--------------- ------------ ------------ -----------
(Loss) income before income taxes and discontinued
operations 317 -- 220 733
Income tax benefit -- -- -- --
--------------- ------------ ------------ -----------
(Loss) income before discontinued operations 317 -- 220 733
Discontinued operations:
Income (loss) from discontinued operations
before income tax benefit -- -- -- --
Income tax benefit -- -- -- --
--------------- ------------ ------------ -----------
Income (loss) on discontinued operations -- -- -- --
--------------- ------------ ------------ -----------
Net (loss) income 317 -- 220 733
=============== ============ ============ ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
4E, L.P. 1B, LLC 5F, LLC 6G, LLC 8C, LLC
--------------- ------------ ------------ ----------- ------------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue 1 -- -- -- --
Participating lease revenue 351 590 726 516 --
--------------- ------------ ------------ ----------- ------------
Total revenue 352 590 726 516 --
--------------- ------------ ------------ ----------- ------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses:
General and administrative -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 211 143 267 215 --
Property taxes, insurance and other 111 46 99 88 --
Loss on asset impairments -- -- -- -- --
--------------- ------------ ------------ ----------- ------------
Operating expenses 322 189 366 303 --
--------------- ------------ ------------ ----------- ------------
Operating (loss) income 30 401 360 213 --
Minority interest -- -- -- -- --
Interest expense, net -- (10) -- -- --
Equity in income from consolidated entities -- -- -- -- --
--------------- ------------ ------------ ----------- ------------
(Loss) income before income taxes and discontinued
operations 30 391 360 213 --
Income tax benefit -- -- -- -- --
--------------- ------------ ------------ ----------- ------------
(Loss) income before discontinued operations 30 391 360 213 --
Discontinued operations:
Income (loss) from discontinued operations
before income tax benefit -- -- -- -- (3,999)
Income tax benefit -- -- -- -- --
--------------- ------------ ------------ ----------- ------------
Income (loss) on discontinued operations -- -- -- -- (3,999)
--------------- ------------ ------------ ----------- ------------
Net (loss) income 30 391 360 213 (3,999)
=============== ============ ============= =========== ============
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
4C, L.P. 4H, L.P. 7E, LLC 3D, LLC
--------------- ------------ ------------ ------------
Revenue:
Hotel operations:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operations -- -- -- --
Office rental, parking and other revenue -- -- -- --
Participating lease revenue -- -- 336 374
--------------- ------------ ------------ -----------
Total revenue -- -- 336 374
--------------- ------------ ------------ -----------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other operating departments -- -- -- --
Office rental, parking and other expenses -- -- -- --
Other operating expenses:
General and administrative -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization -- -- 155 197
Property taxes, insurance and other -- -- 49 59
Loss on asset impairments -- -- -- --
--------------- ------------ ------------ -----------
Operating expenses -- -- 204 256
--------------- ------------ ------------ -----------
Operating (loss) income -- -- 132 118
Minority interest -- -- -- --
Interest expense, net -- -- -- --
Equity in income from consolidated entities -- -- -- --
--------------- ------------ ------------ -----------
(Loss) income before income taxes and discontinued
operations -- -- 132 118
Income tax benefit -- -- -- --
--------------- ------------ ------------ -----------
(Loss) income before discontinued operations -- -- 132 118
Discontinued operations:
Income (loss) from discontinued operations
before income tax benefit -- (114) -- --
Income tax benefit -- -- -- --
--------------- ------------ ------------ -----------
Income (loss) on discontinued operations -- (114) -- --
--------------- ------------ ------------ -----------
Net (loss) income -- (114) 132 118
=============== ============ ============ ===========
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
MERISTAR SUB
MERISTAR SUB MERISTAR SUB 7A JOINT MERISTAR SUB MERISTAR SUB
1A, LLC 5E, LLC VENTURE 6K, LLC 2B, LLC
--------------- ------------ ------------ ----------- ------------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue -- -- -- -- --
Participating lease revenue 449 1,242 271 952 --
--------------- ------------ ------------ ----------- ------------
Total revenue 449 1,242 271 952 --
--------------- ------------ ------------ ----------- ------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses:
General and administrative -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 113 484 107 186 --
Property taxes, insurance and other 105 101 63 95 --
Loss on asset impairments -- -- -- -- --
--------------- ------------ ------------ ----------- ------------
Operating expenses 218 585 170 281 --
--------------- ------------ ------------ ----------- ------------
Operating (loss) income 231 657 101 671 --
Minority interest -- -- -- -- --
Interest expense, net -- -- -- -- --
Equity in income from consolidated entities -- -- -- -- --
--------------- ------------ ------------ ----------- ------------
(Loss) income before income taxes and discontinued
operations 231 657 101 671 --
Income tax benefit -- -- -- -- --
--------------- ------------ ------------ ----------- ------------
(Loss) income before discontinued operations 231 657 101 671 --
Discontinued operations:
Income (loss) from discontinued operations
before income tax benefit -- -- -- -- (3,835)
Income tax benefit -- -- -- -- --
--------------- ------------ ------------ ----------- ------------
Income (loss) on discontinued operations -- -- -- -- (3,835)
--------------- ------------ ------------ ----------- ------------
Net (loss) income 231 657 101 671 (3,835)
=============== ============ ============ =========== ============
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
3A, LLC 4A, LLC 4D, LLC 2A, LLC
--------------- ------------ ------------ ------------
Revenue:
Hotel operations:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operations -- -- -- --
Office rental, parking and other revenue -- -- -- --
Participating lease revenue -- -- -- --
--------------- ------------ ------------ -----------
Total revenue -- -- -- --
--------------- ------------ ------------ -----------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other operating departments -- -- -- --
Office rental, parking and other expenses -- -- -- --
Other operating expenses:
General and administrative -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization -- -- -- --
Property taxes, insurance and other -- -- -- --
Loss on asset impairments -- -- -- --
--------------- ------------ ------------ -----------
Operating expenses -- -- -- --
--------------- ------------ ------------ -----------
Operating (loss) income -- -- -- --
Minority interest -- -- -- --
Interest expense, net -- -- -- --
Equity in income from consolidated entities -- -- -- --
--------------- ------------ ------------ -----------
(Loss) income before income taxes and discontinued
operations -- -- -- --
Income tax benefit -- -- -- --
--------------- ------------ ------------ -----------
(Loss) income before discontinued operations -- -- -- --
Discontinued operations:
Income (loss) from discontinued operations
before income tax benefit 44 191 (969) (2,177)
Income tax benefit -- -- -- --
--------------- ------------ ------------ -----------
Income (loss) on discontinued operations 44 191 (969) (2,177)
--------------- ------------ ------------ -----------
Net (loss) income 44 191 (969) (2,177)
=============== ============ ============ ============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
MERISTAR SUB MDV LIMITED MERISTAR SUB MERISTAR SUB MERISTAR SUB
6L, LLC PARTNERSHIP 5C, LLC 6J, LLC 1D, L.P.
--------------- ------------ ------------ ----------- ------------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue -- -- -- -- 79
Participating lease revenue -- 126 -- 462 1,188
--------------- ------------ ------------ ----------- ------------
Total revenue -- 126 -- 462 1,267
--------------- ------------ ------------ ----------- ------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- 42
Other operating expenses:
General and administrative -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization -- 35 -- 158 578
Property taxes, insurance and other -- 34 -- 65 387
Loss on asset impairments -- -- -- -- --
--------------- ------------ ------------ ----------- ------------
Operating expenses -- 69 -- 223 1,007
--------------- ------------ ------------ ----------- ------------
Operating (loss) income -- 57 -- 239 260
Minority interest -- -- -- -- --
Interest expense, net -- -- -- 1 --
Equity in income from consolidated entities -- -- -- -- --
--------------- ------------ ------------ ----------- ------------
(Loss) income before income taxes and discontinued
operations -- 57 -- 240 260
Income tax benefit -- -- -- -- --
--------------- ------------ ------------ ----------- ------------
(Loss) income before discontinued operations -- 57 -- 240 260
Discontinued operations:
Income (loss) from discontinued operations
before income tax benefit 78 -- (5,878) -- --
Income tax benefit -- -- -- -- --
--------------- ------------ ------------ ----------- ------------
Income (loss) on discontinued operations 78 -- (5,878) -- --
--------------- ------------ ------------ ----------- ------------
Net (loss) income 78 57 (5,878) 240 260
=============== ============ ============ =========== ============
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
7B, L.P. 7D, LLC 7G, LLC 6B, LLC
--------------- ------------ ------------- -------------
Revenue:
Hotel operations:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operations -- -- -- --
Office rental, parking and other revenue -- 358 -- --
Participating lease revenue -- 1,425 -- 225
--------------- ------------ ------------ -----------
Total revenue -- 1,783 -- 225
--------------- ------------ ------------ -----------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other operating departments -- -- -- --
Office rental, parking and other expenses -- 201 -- --
Other operating expenses:
General and administrative -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization -- 421 -- 116
Property taxes, insurance and other -- 561 -- 50
Loss on asset impairments -- -- -- --
--------------- ------------ ------------ -----------
Operating expenses -- 1,183 -- 166
--------------- ------------ ------------ -----------
Operating (loss) income -- 600 -- 59
Minority interest -- -- -- --
Interest expense, net -- -- -- --
Equity in income from consolidated entities -- -- -- --
--------------- ------------ ------------ -----------
(Loss) income before income taxes and discontinued
operation -- 600 -- 59
Income tax benefit -- -- -- --
--------------- ------------ ------------ -----------
(Loss) income before discontinued operations -- 600 -- 59
Discontinued operations:
Income (loss) from discontinued operations
before income tax benefit (7,856) -- (6,630) --
Income tax benefit -- -- -- --
--------------- ------------ ------------ -----------
Income (loss) on discontinued operations (7,856) -- (6,630) --
--------------- ------------ ------------ -----------
Net (loss) income (7,856) 600 (6,630) 59
=============== ============ ============ ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB AGH PSS I,
4I, L.P. 5D, LLC 5H, LLC 7H, LLC INC.
--------------- ------------ ------------ ------------ ------------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue -- -- -- -- --
Participating lease revenue -- 475 -- -- --
--------------- ------------ ------------ ----------- ------------
Total revenue -- 475 -- -- --
--------------- ------------ ------------ ----------- ------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses:
General and administrative -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization -- 365 -- -- --
Property taxes, insurance and other -- 58 -- -- --
Loss on asset impairments -- -- -- -- --
--------------- ------------ ------------ ----------- ------------
Operating expenses -- 423 -- -- --
--------------- ------------ ------------ ----------- ------------
Operating (loss) income -- 52 -- -- --
Minority interest -- -- -- -- --
Interest expense, net -- (328) -- -- --
Equity in income from consolidated entities -- -- -- -- --
--------------- ------------ ------------ ----------- ------------
(Loss) income before income taxes and discontinued
operations -- (276) -- -- --
Income tax benefit -- -- -- -- --
--------------- ------------ ------------ ----------- ------------
(Loss) income before discontinued operations -- (276) -- -- --
Discontinued operations:
Income (loss) from discontinued operations
before income tax benefit (111) -- 562 146 450
Income tax benefit -- -- -- -- --
--------------- ------------ ------------ ----------- ------------
Income (loss) on discontinued operations (111) -- 562 146 450
--------------- ------------ ------------ ----------- ------------
Net (loss) income (111) (276) 562 146 450
=============== ============ ============ =========== ============
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
2D, LLC 4F, L.P. 5K, LLC 5M, LLC
--------------- ------------ ------------ ------------
Revenue:
Hotel operations:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operations -- -- -- --
Office rental, parking and other revenue -- 3 -- --
Participating lease revenue -- 526 627 547
--------------- ------------ ------------ -----------
Total revenue -- 529 627 547
--------------- ------------ ------------ -----------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other operating departments -- -- -- --
Office rental, parking and other expenses -- -- -- --
Other operating expenses:
General and administrative -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization -- 279 322 118
Property taxes, insurance and other -- 86 94 66
Loss on asset impairments -- -- -- --
--------------- ------------ ------------ -----------
Operating expenses -- 365 416 184
--------------- ------------ ------------ -----------
Operating (loss) income -- 164 211 363
Minority interest -- -- -- --
Interest expense, net -- -- -- --
Equity in income from consolidated entities -- -- -- --
--------------- ------------ ------------ -----------
(Loss) income before income taxes and discontinued
operations -- 164 211 363
Income tax benefit -- -- -- --
--------------- ------------ ------------ -----------
(Loss) income before discontinued operations -- 164 211 363
Discontinued operations:
Income (loss) from discontinued operations
before income tax benefit (7,826) -- -- --
Income tax benefit -- -- -- --
--------------- ------------ ------------ -----------
Income (loss) on discontinued operations (7,826) -- -- --
--------------- ------------ ------------ -----------
Net (loss) income (7,826) 164 211 363
=============== ============ ============ ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
1E, L.P. 5O, LLC 6M COMPANY 4B, L.P. 6C, LLC
-------------- ------------ ----------- ------------ ------------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue -- -- -- -- 4
Participating lease revenue -- 240 917 -- 649
--------------- ------------ ------------ ----------- ------------
Total revenue -- 240 917 -- 653
--------------- ------------ ------------ ----------- ------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses:
General and administrative -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization -- 57 308 -- 194
Property taxes, insurance and other -- 26 83 -- 56
Loss on asset impairments -- -- -- -- --
--------------- ------------ ------------ ----------- ------------
Operating expenses -- 83 391 -- 250
--------------- ------------ ------------ ----------- ------------
Operating (loss) income -- 157 526 -- 403
Minority interest -- -- -- -- --
Interest expense, net -- -- -- -- --
Equity in income from consolidated entities -- -- -- -- --
--------------- ------------ ------------ ----------- ------------
(Loss) income before income taxes and discontinued
operations -- 157 526 -- 403
Income tax benefit -- -- -- -- --
--------------- ------------ ------------ ----------- ------------
(Loss) income before discontinued operations -- 157 526 -- 403
Discontinued operations:
Income (loss) from discontinued operations
before income tax benefit 238 -- -- (156) --
Income tax benefit -- -- -- -- --
--------------- ------------ ------------ ----------- ------------
Income (loss) on discontinued operations 238 -- -- (156) --
--------------- ------------ ------------ ----------- ------------
Net (loss) income 238 157 526 (156) 403
=============== ============ ============ =========== ============
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
2C, LLC 4G, L.P. 3B, LLC 5G, L.P.
--------------- ------------ ------------ ------------
Revenue:
Hotel operations:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operations -- -- -- --
Office rental, parking and other revenue -- -- -- 9
Participating lease revenue -- 528 -- 3,056
--------------- ------------ ------------ -----------
Total revenue -- 528 -- 3,065
--------------- ------------ ------------ -----------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other operating departments -- -- -- --
Office rental, parking and other expenses -- -- -- --
Other operating expenses:
General and administrative -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization -- 225 -- 1,572
Property taxes, insurance and other -- 154 -- 481
Loss on asset impairments -- -- -- --
--------------- ------------ ------------ -----------
Operating expenses -- 379 -- 2,053
--------------- ------------ ------------ -----------
Operating (loss) income -- 149 -- 1,012
Minority interest -- -- -- --
Interest expense, net -- -- -- --
Equity in income from consolidated entities -- -- -- --
--------------- ------------ ------------ -----------
(Loss) income before income taxes and discontinued
operations -- 149 -- 1,012
Income tax benefit -- -- -- --
--------------- ------------ ------------ -----------
(Loss) income before discontinued operations -- 149 -- 1,012
Discontinued operations:
Income (loss) from discontinued operations
before income tax benefit (13,660) -- (491) --
Income tax benefit -- -- -- --
--------------- ------------ ------------ -----------
Income (loss) on discontinued operations (13,660) -- (491) --
--------------- ------------ ------------ -----------
Net (loss) income (13,660) 149 (491) 1,012
=============== ============ ============ ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
5P, LLC 5J, LLC 5Q, LLC 5A, LLC 8D, LLC
--------------- ------------ ------------ ------------ ------------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue -- -- -- 29 --
Participating lease revenue 181 2,693 613 1,593 --
--------------- ------------ ------------ ----------- ------------
Total revenue 181 2,693 613 1,622 --
--------------- ------------ ------------ ----------- ------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses:
General and administrative -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 1 871 140 386 --
Property taxes, insurance and other 3 370 54 177 --
Loss on asset impairments -- -- -- -- --
--------------- ------------ ------------ ----------- ------------
Operating expenses 4 1,241 194 563 --
--------------- ------------ ------------ ----------- ------------
Operating (loss) income 177 1,452 419 1,059 --
Minority interest -- -- -- -- --
Interest expense, net -- (3) -- (708) --
Equity in income from consolidated entities -- -- -- -- --
--------------- ------------ ------------ ----------- ------------
(Loss) income before income taxes and discontinued
operations 177 1,449 419 351 --
Income tax benefit -- -- -- -- --
--------------- ------------ ------------ ----------- ------------
(Loss) income before discontinued operations 177 1,449 419 351 --
Discontinued operations:
Income (loss) from discontinued operations
before income tax benefit -- -- -- -- 172
Income tax benefit -- -- -- -- --
--------------- ------------ ------------ ----------- ------------
Income (loss) on discontinued operations -- -- -- -- 172
--------------- ------------ ------------ ----------- ------------
Net (loss) income 177 1,449 419 351 172
=============== ============ ============ =========== =============
MERISTAR GUARANTOR
MERISTAR SUB HOTEL LESSEE, SUBSIDIARIES
4J, LLC INC. TOTAL ELIMINATIONS
-------------- ------------- ------------ ------------
Revenue:
Hotel operations:
Rooms -- 131,567 131,567 --
Food and beverage -- 52,176 52,176 --
Other hotel operations -- 16,647 16,647 --
Office rental, parking and other revenue 54 -- 546 --
Participating lease revenue 725 -- 29,311 (58,000)
--------------- ------------ ------------ -----------
Total revenue 779 200,390 230,247 (58,000)
--------------- ------------ ------------ -----------
Hotel operating expenses:
Rooms -- 31,209 31,209 --
Food and beverage -- 37,566 37,566 --
Other operating departments -- 9,505 9,505 --
Office rental, parking and other expenses 98 -- 341 --
Other operating expenses:
General and administrative -- 31,762 31,762 --
Property operating costs -- 29,505 29,505 --
Depreciation and amortization 326 (73) 10,623 --
Property taxes, insurance and other 81 64,208 69,151 (58,000)
Loss on asset impairments -- -- -- --
--------------- ------------ ------------ -----------
Operating expenses 505 203,682 219,662 (58,000)
--------------- ------------ ------------ -----------
Operating (loss) income 274 (3,292) 10,585 --
Minority interest -- -- -- --
Interest expense, net -- (427) (1,477) --
Equity in income from consolidated entities -- -- -- 44,064
--------------- ------------ ------------ -----------
(Loss) income before income taxes and discontinued
operations 274 (3,719) 9,108 44,064
Income tax benefit -- -- -- --
--------------- ------------ ------------ -----------
(Loss) income before discontinued operations 274 (3,719) 9,108 44,064
Discontinued operations:
Income (loss) from discontinued operations
before income tax benefit -- (4,503) (56,324) --
Income tax benefit -- -- -- --
--------------- ------------ ------------ -----------
Income (loss) on discontinued operations -- (4,503) (56,324) --
--------------- ------------ ------------ -----------
Net (loss) income 274 (8,222) (47,216) 44,064
=============== ============ ============ ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
TOTAL
CONSOLIDATED
---------------
Revenue:
Hotel operations:
Rooms 131,567
Food and beverage 52,176
Other hotel operations 16,647
Office rental, parking and other revenue 3,263
Participating lease revenue --
---------------
Total revenue 203,653
---------------
Hotel operating expenses:
Rooms 31,209
Food and beverage 37,566
Other operating departments 9,505
Office rental, parking and other expenses 630
Other operating expenses:
General and administrative 34,681
Property operating costs 29,505
Depreciation and amortization 23,881
Property taxes, insurance and other 17,193
Loss on asset impairments --
---------------
Operating expenses 184,170
---------------
Operating (loss) income 19,483
Minority interest (11)
Interest expense, net (34,718)
Equity in income from consolidated entities --
---------------
(Loss) income before income taxes and discontinued
operations (15,246)
Income tax benefit 128
---------------
(Loss) income before discontinued operations (15,118)
Discontinued operations:
Income (loss) from discontinued operations
before income tax benefit (58,096)
Income tax benefit 16
---------------
Income (loss) on discontinued operations (58,080)
---------------
Net (loss) income (73,198)
===============
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
THREE MONTH ENDED MARCH 31, 2004
(DOLLARS IN THOUSANDS)
MERISTAR NON- MERISTAR AGH MERISTAR
HOSPITALITY GUARANTOR SUB 7C, UPREIT, SUB 5N,
OP, L.P. SUBSIDIARIES LLC LLC LLC
----------- ------------ -------- ------- --------
Cash flows from operating activities:
Net (loss) income (40,887) 7,591 -- -- 246
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 3,377 13,358 -- -- 34
Equity in earnings 6,866 -- -- -- --
Loss on asset impairments -- 2,870 -- -- --
Loss on sale of assets, before tax effect (68) (378) -- -- --
Loss on early extinguishments of debt 5,923 -- -- -- --
Minority interests (4) -- -- -- --
Amortization of unearned stock based compensation 587 -- -- -- --
Deferred income taxes (358) -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable (1,574) 151 -- -- --
Prepaid expenses and other assets 1,187 1,972 -- -- 9
Due from/to Interstate Hotels & Resorts 5,866 -- -- -- --
Accounts payable, accrued expenses, accrued
interest and other liabilities (8,972) (3,129) -- -- 28
Due from subsidiaries 86,165 (36,539) -- -- (300)
----------- ------------ -------- ------- --------
Net cash provided by (used in) operating activities 58,108 (14,104) -- -- 17
----------- ------------ -------- ------- --------
Cash flows from investing activities:
Capital expenditures for property and equipment (3,321) (9,189) -- -- (17)
Proceeds from sales of assets -- 26,475 -- -- --
Change in restricted cash (1,127) 282 -- -- --
Costs associated with disposition program and other, net 84 (1,157) -- -- --
----------- ------------ -------- ------- --------
Net cash provided by (used in) investing activities (4,364) 16,411 -- -- (17)
----------- ------------ -------- ------- --------
Cash flows from financing activities:
Prepayments on long-term debt (75,497) -- -- -- --
Scheduled payments on long-term debt -- (2,307) -- -- --
Loans to/from subsidiaries (27,493) -- -- -- --
Distributions to minority investors (141) -- -- -- --
Other (77) -- -- -- --
----------- ------------ -------- ------- --------
Net cash provided by (used in) financing activities (103,208) (2,307) -- -- --
----------- ------------ -------- ------- --------
Effect of exchange rate changes on cash (150) -- -- -- --
----------- ------------ -------- ------- --------
NET CHANGE IN CASH (49,614) -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 218,646 -- -- -- --
----------- ------------ -------- ------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD 169,032 -- -- -- --
=========== ============ ======== ======= ========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 8A, SUB 8F, SUB 8G, SUB 6H, SUB 8B, SUB 1C,
LLC L.P. LLC L.P. LLC L.P.
-------- -------- -------- -------- -------- --------
Cash flows from operating activities:
Net (loss) income -- 314 -- 121 963 (144)
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization -- 164 -- 157 595 356
Equity in earnings -- -- -- -- -- --
Loss on asset impairments -- -- -- -- -- --
Loss on sale of assets, before tax effect -- -- -- -- -- --
Loss on early extinguishments of debt -- -- -- -- -- --
Minority interests -- -- -- -- -- --
Amortization of unearned stock based compensation -- -- -- -- -- --
Deferred income taxes -- -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable -- -- -- -- -- --
Prepaid expenses and other assets -- 16 -- 4 19 19
Due from/to Interstate Hotels & Resorts -- -- -- -- -- --
Accounts payable, accrued expenses, accrued
interest and other liabilities -- (66) -- (139) 59 37
Due from subsidiaries -- (428) -- (143) 954 (111)
-------- -------- -------- -------- -------- --------
Net cash provided by (used in) operating activities -- -- -- -- 2,590 157
-------- -------- -------- -------- -------- --------
Cash flows from investing activities:
Capital expenditures for property and equipment -- -- -- -- (2,590) (157)
Proceeds from sales of assets -- -- -- -- -- --
Change in restricted cash -- -- -- -- -- --
Costs associated with disposition program and other, net -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Net cash provided by (used in) investing activities -- -- -- -- (2,590) (157)
-------- -------- -------- -------- -------- --------
Cash flows from financing activities:
Prepayments on long-term debt -- -- -- -- -- --
Scheduled payments on long-term debt -- -- -- -- -- --
Loans to/from subsidiaries -- -- -- -- -- --
Distributions to minority investors -- -- -- -- -- --
Other -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Net cash provided by (used in) financing activities -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Effect of exchange rate changes on cash -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
NET CHANGE IN CASH -- -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- -- --
======== ======== ======== ======== ======== ========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
THREE MONTH ENDED MARCH 31, 2004
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 8E, SUB 7F, SUB 5L, SUB 3C, SUB 5R, SUB 6D,
LLC LLC LLC LLC LLC LLC
-------- -------- -------- -------- -------- --------
Cash flows from operating activities:
Net (loss) income 169 119 299 297 -- 266
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 149 97 38 178 -- 137
Equity in earnings -- -- -- -- -- --
Loss on asset impairments -- -- -- -- -- --
Loss on sale of assets, before tax effect -- -- -- -- -- --
Loss on early extinguishments of debt -- -- -- -- -- --
Minority interests -- -- -- -- -- --
Amortization of unearned stock based compensation -- -- -- -- -- --
Deferred income taxes -- -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable -- -- -- -- -- (7)
Prepaid expenses and other assets 5 3 17 5 -- 4
Due from/to Interstate Hotels & Resorts -- -- -- -- -- --
Accounts payable, accrued expenses, accrued
interest and other liabilities (11) (24) 38 175 -- (38)
Due from subsidiaries (256) (186) (357) (648) -- (312)
-------- -------- -------- -------- -------- --------
Net cash provided by (used in) operating activities 56 9 35 7 -- 50
-------- -------- -------- -------- -------- --------
Cash flows from investing activities:
Capital expenditures for property and equipment (56) (9) (35) (7) -- (50)
Proceeds from sales of assets -- -- -- -- -- --
Change in restricted cash -- -- -- -- -- --
Costs associated with disposition program and other, net -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Net cash provided by (used in) investing activities (56) (9) (35) (7) -- (50)
-------- -------- -------- -------- -------- --------
Cash flows from financing activities:
Prepayments on long-term debt -- -- -- -- -- --
Scheduled payments on long-term debt -- -- -- -- -- --
Loans to/from subsidiaries -- -- -- -- -- --
Distributions to minority investors -- -- -- -- -- --
Other -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Net cash provided by (used in) financing activities -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Effect of exchange rate changes on cash -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
NET CHANGE IN CASH -- -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- -- --
======== ======== ======== ======== ======== ========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 6E, SUB 4E, SUB 1B, SUB 5F, SUB 6G,
LLC L.P. LLC L.P. LLC
-------- -------- -------- --------- ---------
Cash flows from operating activities:
Net (loss) income 850 165 429 398 515
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 410 76 128 196 209
Equity in earnings -- -- -- -- --
Loss on asset impairments -- -- -- -- --
Loss on sale of assets, before tax effect -- -- -- -- --
Loss on early extinguishments of debt -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock based compensation -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable -- -- -- -- --
Prepaid expenses and other assets 16 10 16 36 6
Due from/to Interstate Hotels & Resorts -- -- -- -- --
Accounts payable, accrued expenses,
accrued interest and other liabilities 328 (255) (15) (39) 97
Due from subsidiaries (1,026) 13 (311) (442) (742)
-------- -------- -------- --------- ---------
Net cash provided by (used in) operating activities 578 9 247 149 85
-------- -------- -------- --------- ---------
Cash flows from investing activities:
Capital expenditures for property and equipment (578) (9) (247) (149) (85)
Proceeds from sales of assets -- -- -- -- --
Change in restricted cash -- -- -- -- --
Costs associated with disposition program and other, net -- -- -- -- --
-------- -------- -------- --------- ---------
Net cash provided by (used in) investing activities (578) (9) (247) (149) (85)
-------- -------- -------- --------- ---------
Cash flows from financing activities:
Prepayments on long-term debt -- -- -- -- --
Scheduled payments on long-term debt -- -- -- -- --
Loans to/from subsidiaries -- -- -- -- --
Distributions to minority investors -- -- -- -- --
Other -- -- -- -- --
-------- -------- -------- --------- ---------
Net cash provided by (used in) financing activities -- -- -- -- --
-------- -------- -------- --------- ---------
Effect of exchange rate changes on cash -- -- -- -- --
-------- -------- -------- --------- ---------
NET CHANGE IN CASH -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- --
-------- -------- -------- --------- ---------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- --
======== ======== ======== ========= =========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
THREE MONTH ENDED MARCH 31, 2004
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 8C, SUB 4C, SUB 4H, SUB 7E, SUB 3D, SUB 1A,
LLC L.P. L.P. LLC LLC LLC
-------- -------- -------- -------- -------- --------
Cash flows from operating activities:
Net (loss) income (203) -- (403) 142 119 (17)
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization -- -- 43 152 192 113
Equity in earnings -- -- -- -- -- --
Loss on asset impairments -- -- -- -- -- 184
Loss on sale of assets, before tax effect 253 -- 365 -- -- --
Loss on early extinguishments of debt -- -- -- -- -- --
Minority interests -- -- -- -- -- --
Amortization of unearned stock based compensation -- -- -- -- -- --
Deferred income taxes -- -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable -- -- -- -- -- --
Prepaid expenses and other assets 117 -- (8) 4 8 26
Due from/to Interstate Hotels & Resorts -- -- -- -- -- --
Accounts payable, accrued expenses, accrued
interest and other liabilities 306 -- (178) (13) 3 59
Due from subsidiaries (5,787) -- (4,192) 158 (298) (361)
-------- -------- -------- -------- -------- --------
Net cash provided by (used in) operating activities (5,314) -- (4,373) 443 24 4
-------- -------- -------- -------- -------- --------
Cash flows from investing activities:
Capital expenditures for property and equipment 569 -- (86) (443) (24) (4)
Proceeds from sales of assets 5,000 -- 4,650 -- -- --
Change in restricted cash -- -- -- -- -- --
Costs associated with disposition program and other, net (255) -- (191) -- -- --
-------- -------- -------- -------- -------- --------
Net cash provided by (used in) investing activities 5,314 -- 4,373 (443) (24) (4)
-------- -------- -------- -------- -------- --------
Cash flows from financing activities:
Prepayments on long-term debt -- -- -- -- -- --
Scheduled payments on long-term debt -- -- -- -- -- --
Loans to/from subsidiaries -- -- -- -- -- --
Distributions to minority investors -- -- -- -- -- --
Other -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Net cash provided by (used in) financing activities -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Effect of exchange rate changes on cash -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
NET CHANGE IN CASH -- -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- -- --
======== ======== ======== ======== ======== ========
MERISTAR SUB MERISTAR MERISTAR MERISTAR MERISTAR
7A JOINT SUB 2B, SUB 3A, SUB 4A, SUB 4D,
VENTURE LLC LLC LLC LLC
------------ ---------- -------- -------- --------
Cash flows from operating activities:
Net (loss) income (664) -- 89 96 --
Adjustments to reconcile net (loss) income to net cas h
provided by (used in) operating activities:
Depreciation and amortization 61 -- 51 -- --
Equity in earnings -- -- -- -- --
Loss on asset impairments 809 -- -- -- --
Loss on sale of assets, before tax effect -- -- (20) 46 --
Loss on early extinguishments of debt -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock based compensation -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable -- 2,345 -- -- --
Prepaid expenses and other assets 7 -- 1 (9) 3
Due from/to Interstate Hotels & Resorts -- -- -- -- --
Accounts payable, accrued expenses, accrued
interest and other liabilities (20) -- (161) (342) --
Due from subsidiaries (185) (2,345) (2,936) (2,918) (3)
------------ ---------- -------- -------- --------
Net cash provided by (used in) operating activities 8 -- (2,976) (3,127) --
------------ ---------- -------- -------- --------
Cash flows from investing activities:
Capital expenditures for property and equipment (8) -- (83) (194) --
Proceeds from sales of assets -- -- 3,300 3,575 --
Change in restricted cash -- -- -- -- --
Costs associated with disposition program and other, net -- -- (241) (254) --
------------ ---------- -------- -------- --------
Net cash provided by (used in) investing activities (8) -- 2,976 3,127 --
------------ ---------- -------- -------- --------
Cash flows from financing activities:
Prepayments on long-term debt -- -- -- -- --
Scheduled payments on long-term debt -- -- -- -- --
Loans to/from subsidiaries -- -- -- -- --
Distributions to minority investors -- -- -- -- --
Other -- -- -- -- --
Net cash provided by (used in) financing activities -- -- -- -- --
------------ ---------- -------- -------- --------
Effect of exchange rate changes on cash -- -- -- -- --
------------ ---------- -------- -------- --------
NET CHANGE IN CASH -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- --
------------ ---------- -------- -------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- --
============ ========== ======== ======== ========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
THREE MONTH ENDED MARCH 31, 2004
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 2A, SUB 6L, MDV LIMITED SUB 5C, SUB 6J,
LLC LLC PARTNERSHIP LLC LLC
-------- -------- ----------- -------- --------
Cash flows from operating activities:
Net (loss) income -- 1,852 78 -- 280
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization -- -- 23 -- 141
Equity in earnings -- -- -- -- --
Loss on asset impairments -- -- -- -- --
Loss on sale of assets, before tax effect -- (1,827) -- -- --
Loss on early extinguishments of debt -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock based compensation -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable 2,002 (178) -- 2 --
Prepaid expenses and other assets -- 14 4 (4) 4
Due from/to Interstate Hotels & Resorts -- -- -- -- --
Accounts payable, accrued expenses,
accrued interest and other liabilities -- (25) 4 -- 228
Due from subsidiaries (2,002) (13,823) (82) 2 (560)
-------- -------- -------- -------- --------
Net cash provided by (used in) operating activities -- (13,987) 27 -- 93
-------- -------- -------- -------- --------
Cash flows from investing activities:
Capital expenditures for property and equipment -- (319) (27) -- (93)
Proceeds from sales of assets -- 14,775 -- -- --
Change in restricted cash -- -- -- -- --
Costs associated with disposition program and other, net -- (469) -- -- --
-------- -------- -------- -------- --------
Net cash provided by (used in) investing activities -- 13,987 (27) -- (93)
-------- -------- -------- -------- --------
Cash flows from financing activities:
Prepayments on long-term debt -- -- -- -- --
Scheduled payments on long-term debt -- -- -- -- --
Loans to/from subsidiaries -- -- -- -- --
Distributions to minority investors -- -- -- -- --
Other -- -- -- -- --
-------- -------- -------- -------- --------
Net cash provided by (used in) financing activities -- -- -- -- --
-------- -------- -------- -------- --------
Effect of exchange rate changes on cash -- -- -- -- --
-------- -------- -------- -------- --------
Net change in cash -- -- -- -- --
Cash and cash equivalents, beginning of period -- -- -- -- --
-------- -------- -------- -------- --------
Cash and cash equivalents, end of period -- -- -- -- --
======== ======== ======== ======== ========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 1D, SUB 7B, SUB 7D, SUB 7G, SUB 6B, SUB 4I,
L.P. L.P. LLC LLC LLC L.P.
-------- -------- -------- -------- -------- --------
Cash flows from operating activities:
Net (loss) income 459 (284) 609 47 67 --
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 569 98 431 49 112 --
Equity in earnings -- -- -- -- -- --
Loss on asset impairments -- -- -- -- -- --
Loss on sale of assets, before tax effect -- 425 -- -- -- --
Loss on early extinguishments of debt -- -- -- -- -- --
Minority interests -- -- -- -- -- --
Amortization of unearned stock based compensation -- -- -- -- -- --
Deferred income taxes -- -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable -- -- (234) -- -- --
Prepaid expenses and other assets 105 7 17 5 2 --
Due from/to Interstate Hotels & Resorts -- -- -- -- -- --
Accounts payable, accrued expenses,
accrued interest and other liabilities 335 (540) (166) 147 63 61
Due from subsidiaries (1,155) 328 (326) (241) (81) (61)
-------- -------- -------- -------- -------- --------
Net cash provided by (used in) operating activities 313 34 331 7 163 --
-------- -------- -------- -------- -------- --------
Cash flows from investing activities:
Capital expenditures for property and equipment (313) (34) (331) (7) (163) --
Proceeds from sales of assets -- -- -- -- -- --
Change in restricted cash -- -- -- -- -- --
Costs associated with disposition program and other, net -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Net cash provided by (used in) investing activities (313) (34) (331) (7) (163) --
-------- -------- -------- -------- -------- --------
Cash flows from financing activities:
Prepayments on long-term debt -- -- -- -- -- --
Scheduled payments on long-term debt -- -- -- -- -- --
Loans to/from subsidiaries -- -- -- -- -- --
Distributions to minority investors -- -- -- -- -- --
Other -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Net cash provided by (used in) financing activities -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Effect of exchange rate changes on cash -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Net change in cash -- -- -- -- -- --
Cash and cash equivalents, beginning of period -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Cash and cash equivalents, end of period -- -- -- -- -- --
======== ======== ======== ======== ======== ========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
THREE MONTH ENDED MARCH 31, 2004
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5D, SUB 5H, SUB 7H, AGH PSS SUB 2D,
LLC LLC LLC I INC. LLC
-------- -------- -------- -------- --------
Cash flows from operating activities:
Net (loss) income (270) -- -- -- --
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 369 -- -- -- --
Equity in earnings -- -- -- -- --
Loss on asset impairments -- -- -- -- --
Loss on sale of assets, before tax effect -- -- -- -- --
Loss on early extinguishments of debt -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock based compensation -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable -- -- 43 -- 1,166
Prepaid expenses and other assets 18 1 -- 1 --
Due from/to Interstate Hotels & Resorts -- -- -- -- --
Accounts payable, accrued expenses,
accrued interest and other liabilities 327 -- -- -- --
Due from subsidiaries (346) (1) (43) (1) (1,166)
-------- -------- -------- -------- --------
Net cash provided by (used in) operating activities 98 -- -- -- --
-------- -------- -------- -------- --------
Cash flows from investing activities:
Capital expenditures for property and equipment (98) -- -- -- --
Proceeds from sales of assets -- -- -- -- --
Change in restricted cash -- -- -- -- --
Costs associated with disposition program and other, net -- -- -- -- --
-------- -------- -------- -------- --------
Net cash provided by (used in) investing activities (98) -- -- -- --
-------- -------- -------- -------- --------
Cash flows from financing activities:
Prepayments on long-term debt -- -- -- -- --
Scheduled payments on long-term debt -- -- -- -- --
Loans to/from subsidiaries -- -- -- -- --
Distributions to minority investors -- -- -- -- --
Other -- -- -- -- --
-------- -------- -------- -------- --------
Net cash provided by (used in) financing activities -- -- -- -- --
-------- -------- -------- -------- --------
Effect of exchange rate changes on cash -- -- -- -- --
-------- -------- -------- -------- --------
Net change in cash -- -- -- -- --
Cash and cash equivalents, beginning of period -- -- -- -- --
-------- -------- -------- -------- --------
Cash and cash equivalents, end of period -- -- -- -- --
======== ======== ======== ======== ========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 4F, SUB 5K, SUB 5M, SUB 1E, SUB 5O, SUB 4B
L.P. LLC LLC L.P. LLC L.P.
-------- -------- -------- -------- -------- --------
Cash flows from operating activities:
Net (loss) income 130 264 380 -- 177 (216)
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 277 324 118 -- 57 --
Equity in earnings -- -- -- -- -- --
Loss on asset impairments -- -- -- -- -- --
Loss on sale of assets, before tax effect -- -- -- -- -- 215
Loss on early extinguishments of debt -- -- -- -- -- --
Minority interests -- -- -- -- -- --
Amortization of unearned stock based compensation -- -- -- -- -- --
Deferred income taxes -- -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable -- -- -- 198 -- --
Prepaid expenses and other assets 7 37 21 (1) 8 (4)
Due from/to Interstate Hotels & Resorts -- -- -- -- -- --
Accounts payable, accrued expenses,
accrued interest and other liabilities (295) 44 49 (14) 27 (411)
Due from subsidiaries 241 (632) (548) (183) (264) (6,187)
-------- -------- -------- -------- -------- ------
Net cash provided by (used in) operating activities 360 37 20 -- 5 (6,603)
-------- -------- -------- -------- -------- -------
Cash flows from investing activities:
Capital expenditures for property and equipment (360) (37) (20) -- (5) (415)
Proceeds from sales of assets -- -- -- -- -- 7,500
Change in restricted cash -- -- -- -- -- -
Costs associated with disposition program and other, net -- -- -- -- -- (482)
-------- -------- -------- -------- -------- -------
Net cash provided by (used in) investing activities (360) (37) (20) -- (5) 6,603
-------- -------- -------- -------- -------- -------
Cash flows from financing activities:
Prepayments on long-term debt -- -- -- -- -- --
Scheduled payments on long-term debt -- -- -- -- -- --
Loans to/from subsidiaries -- -- -- -- -- --
Distributions to minority investors -- -- -- -- -- --
Other -- -- -- -- -- --
-------- -------- -------- -------- -------- -------
Net cash provided by (used in) financing activities -- -- -- -- -- --
-------- -------- -------- -------- -------- -------
Effect of exchange rate changes on cash -- -- -- -- -- --
-------- -------- -------- -------- --------- -------
Net change in cash -- -- -- -- -- --
Cash and cash equivalents, beginning of period -- -- -- -- -- --
-------- -------- -------- -------- -------- -------
Cash and cash equivalents, end of period -- -- -- -- -- --
======== ======== ======== ======== ======== =======
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
THREE MONTH ENDED MARCH 31, 2004
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 2C, SUB 4G, SUB 3B, SUB 5G, SUB 5P,
LLC L.P. LLC L.P. LLC
-------- -------- -------- -------- --------
Cash flows from operating activities:
Net (loss) income (978) 85 -- 1,071 164
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization -- 112 -- 1,572 1
Equity in earnings -- -- -- -- --
Loss on asset impairments 903 245 -- -- --
Loss on sale of assets, before tax effect -- -- -- -- --
Loss on early extinguishments of debt -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock based compensation -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable (7) -- -- -- --
Prepaid expenses and other assets 17 47 -- 131 2
Due from/to Interstate Hotels & Resorts -- -- -- -- --
Accounts payable, accrued expenses,
accrued interest and other liabilities (119) (405) 22 (761) --
Due from subsidiaries 251 (83) (22) 567 (167)
-------- -------- -------- -------- --------
Net cash provided by (used in) operating activities 67 1 -- 2,580 --
-------- -------- -------- -------- --------
Cash flows from investing activities:
Capital expenditures for property and equipment (67) (1) -- (2,580) --
Proceeds from sales of assets -- -- -- -- --
Change in restricted cash -- -- -- -- --
Costs associated with disposition program and other, net -- -- -- -- --
-------- -------- -------- -------- --------
Net cash provided by (used in) investing activities (67) (1) -- (2,580) --
-------- -------- -------- -------- --------
Cash flows from financing activities:
Prepayments on long-term debt -- -- -- -- --
Scheduled payments on long-term debt -- -- -- -- --
Loans to/from subsidiaries -- -- -- -- --
Distributions to minority investors -- -- -- -- --
Other -- -- -- -- --
-------- -------- -------- -------- --------
Net cash provided by (used in) financing activities -- -- -- -- -
-------- -------- -------- -------- --------
Effect of exchange rate changes on cash -- -- -- -- --
-------- -------- -------- -------- --------
NET CHANGE IN CASH -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- --
-------- -------- -------- -------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- --
======== ======== ======== ======== ========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5J, SUB 5Q, SUB 5A, SUB 8D, SUB 4J HOTEL
LLC LLC LLC LLC LLC LESSEE, INC
-------- -------- -------- -------- -------- -----------
Cash flows from operating activities:
Net (loss) income 885 374 501 (857) 212 (23,653)
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 1,415 140 269 -- 315 39
Equity in earnings -- -- -- -- -- --
Loss on asset impairments -- -- -- -- -- --
Loss on sale of assets, before tax effect -- -- -- 899 -- 7,036
Loss on early extinguishments of debt -- -- -- -- -- --
Minority interests -- -- -- -- -- --
Amortization of unearned stock based compensation -- -- -- -- -- --
Deferred income taxes -- -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable -- -- -- (359) -- (7,915)
Prepaid expenses and other assets 169 26 15 14 9 755
Due from/to Interstate Hotels & Resorts -- -- -- -- -- (11,327)
Accounts payable, accrued expenses,
accrued interest and other liabilities 154 28 370 183 12 11,306
Due from subsidiaries (1,505) (510) (940) (7,983) (202) 11,261
-------- -------- -------- -------- -------- -----------
Net cash provided by (used in) operating activities 1,118 58 215 (8,103) 346 (12,498)
-------- -------- -------- -------- -------- -----------
Cash flows from investing activities:
Capital expenditures for property and equipment (1,118) (58) (215) (358) (346) --
Proceeds from sales of assets -- -- -- 8,800 -- --
Change in restricted cash -- -- -- -- -- (1,288)
Costs associated with disposition program and other, net -- -- -- (339) -- --
-------- -------- -------- -------- -------- -----------
Net cash provided by (used in) investing activities (1,118) (58) (215) 8,103 (346) (1,288)
-------- -------- -------- -------- -------- -----------
Cash flows from financing activities:
Prepayments on long-term debt -- -- -- -- -- --
Scheduled payments on long-term debt -- -- -- -- -- --
Loans to/from subsidiaries -- -- -- -- -- 27,493
Distributions to minority investors -- -- -- -- -- --
Other -- -- -- -- -- --
-------- -------- -------- -------- -------- -----------
Net cash provided by (used in) financing activities -- -- -- -- -- 27,493
-------- -------- -------- -------- -------- -----------
Effect of exchange rate changes on cash -- -- -- -- -- --
-------- -------- -------- -------- -------- -----------
NET CHANGE IN CASH -- -- -- -- -- 13,707
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- -- 12,231
-------- -------- -------- -------- -------- -----------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- -- 25,938
======== ======== ======== ======== ======== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
THREE MONTH ENDED MARCH 31, 2004
(DOLLARS IN THOUSANDS)
GUARANTOR
SUBSIDIARIES TOTAL
TOTAL ELIMINATIONS CONSOLIDATED
------------ ------------ ------------
Cash flows from operating activities:
Net (loss) income (14,457) 6,866 (40,887)
Adjustments to reconcile net (loss) income to net cash provided by (used in)
operating activities:
Depreciation and amortization 9,967 -- 26,702
Equity in earnings -- (6,866) --
Loss on asset impairments 2,141 -- 5,011
Loss on sale of assets, before tax effect 7,392 -- 6,946
Loss on early extinguishments of debt -- -- 5,923
Minority interests -- -- (4)
Amortization of unearned stock based compensation -- -- 587
Deferred income taxes -- -- (358)
Changes in operating assets and liabilities:
Accounts receivable (2,944) -- (4,367)
Prepaid expenses and other assets 1,761 -- 4,920
Due from/to Interstate Hotels & Resorts (11,327) -- (5,461)
Accounts payable, accrued expenses, accrued interest and other liabilities 10,453 -- (1,648)
Due from subsidiaries (49,626) -- --
------------ ------------ ------------
Net cash provided by (used in) operating activities (46,640) -- (2,636)
------------ ------------ ------------
Cash flows from investing activities:
Capital expenditures for property and equipment (11,227) -- (23,737)
Proceeds from sales of assets 47,600 -- 74,075
Change in restricted cash (1,288) -- (2,133)
Costs associated with disposition program and other, net (2,231) -- (3,304)
------------ ------------ ------------
Net cash provided by (used in) investing activities 32,854 -- 44,901
------------ ------------ ------------
Cash flows from financing activities:
Prepayments on long-term debt -- -- (75,497)
Scheduled payments on long-term debt -- -- (2,307)
Loans to/from subsidiaries 27,493 -- --
Distributions to minority investors -- -- (141)
Other -- -- (77)
------------ ------------ ------------
Net cash provided by (used in) financing activities 27,493 -- (78,022)
------------ ------------ ------------
Effect of exchange rate changes on cash -- -- (150)
------------ ------------ ------------
NET CHANGE IN CASH 13,707 -- (35,907)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 12,231 -- 230,876
------------ ------------ ------------
CASH AND CASH EQUIVALENTS, END OF PERIOD 25,938 -- 194,969
============ ============ ============
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
MERISTAR NON- MERISTAR AGH MERISTAR
HOSPITALITY GUARANTOR SUB 7C, UPREIT, SUB 5N,
OP, L.P. SUBSIDIARIES LLC LLC LLC
----------- ------------ -------- ------- --------
Operating activities:
Net (loss) income (73,198) 3,152 -- -- 220
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 2,214 12,792 -- -- 34
Equity in earnings 44,064 -- -- -- --
Loss on asset impairments -- 3,975 -- -- --
Minority interests 11 -- -- -- --
Amortization of unearned stock-based compensation 976 -- -- -- --
Change in value of interest rate swaps (2,055) -- -- -- --
Deferred income taxes (682) -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable (1,047) 72 -- -- --
Prepaid expenses and other assets 4,804 (1,091) -- -- (9)
Due from/to Interstate Hotels & Resorts 137 -- -- -- --
Accounts payable, accrued expenses, accrued
interest and other liabilities (6,389) (5,694) -- -- (2)
Due from subsidiaries 30,077 (19,439) -- -- (234)
----------- ------------ -------- ------- --------
Net cash provided by (used in) operating activities (1,088) (6,233) -- -- 9
----------- ------------ -------- ------- --------
Cash flows from investing activities:
Capital expenditures for property and equipment (260) (4,372) -- -- (9)
Proceeds from sales of assets -- 12,650 -- -- --
Payments from Interstate Hotels & Resorts 42,052 -- -- -- --
Change in restricted cash (1,788) 132 -- -- --
Costs associated with disposition program and other, net -- (299) -- -- --
----------- ------------ -------- ------- --------
Net cash provided by (used in) investing activities 40,004 8,111 -- -- (9)
----------- ------------ -------- ------- --------
Cash flows from financing activities:
Scheduled payments on long-term debt (12,249) (1,878) -- -- --
Distributions to minority investors (141) -- -- -- --
----------- ------------ -------- ------- --------
Net cash used in financing activities (12,390) (1,878) -- -- --
----------- ------------ -------- ------- --------
Effect of exchange rate changes on cash (274) -- -- -- --
----------- ------------ -------- ------- --------
NET CHANGE IN CASH AND CASH EQUIVALENTS 26,252 -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 21,372 -- -- -- --
----------- ------------ -------- ------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD 47,624 -- -- -- --
=========== ============ ======== ======= =======
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 8A, SUB 8F, SUB 8G, SUB 6H, SUB 8B,
LLC LLC LLC L.P. LLC
-------- -------- -------- -------- --------
Operating activities:
Net (loss) income -- 325 -- 124 862
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization -- 115 -- 108 610
Equity in earnings -- -- -- -- --
Loss on asset impairments -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- --
Change in value of interest rate swaps -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable -- -- -- -- --
Prepaid expenses and other assets -- (18) -- (4) (3)
Due from/to Interstate Hotels & Resorts -- -- -- -- --
Accounts payable, accrued expenses, accrued
interest and other liabilities -- (121) -- 11 (25)
Due from subsidiaries -- (293) -- (238) (841)
-------- -------- -------- -------- --------
Net cash provided by (used in) operating activities -- 8 -- 1 603
-------- -------- -------- -------- --------
Cash flows from investing activities:
Capital expenditures for property and equipment -- (8) -- (1) (603)
Proceeds from sales of assets -- -- -- -- --
Payments from Interstate Hotels & Resorts -- -- -- -- --
Change in restricted cash -- -- -- -- --
Costs associated with disposition program and other, net -- -- -- -- --
-------- -------- -------- -------- --------
Net cash provided by (used in) investing activities -- (8) -- (1) (603)
-------- -------- -------- -------- --------
Cash flows from financing activities:
Scheduled payments on long-term debt -- -- -- -- --
Distributions to minority investors -- -- -- -- --
-------- -------- -------- -------- --------
Net cash used in financing activities -- -- -- -- --
-------- -------- -------- -------- --------
Effect of exchange rate changes on cash -- -- -- -- --
-------- -------- -------- -------- --------
NET CHANGE IN CASH AND CASH EQUIVALENTS -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- --
-------- -------- -------- -------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- --
======== ======== ======== ======== ========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 1C, SUB 8E, SUB 7F, SUB 5L, SUB 3C,
L.P. LLC LLC LLC LLC
--------- -------- -------- -------- --------
Operating activities:
Net (loss) income 30 167 71 259 317
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 254 146 115 34 179
Equity in earnings -- -- -- -- --
Loss on asset impairments -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- --
Change in value of interest rate swaps -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable (4) -- -- 48 --
Prepaid expenses and other assets (72) (6) (4) (24) (5)
Due from/to Interstate Hotels & Resorts -- -- -- -- --
Accounts payable, accrued expenses, accrued
interest and other liabilities (24) (63) 29 (22) 82
Due from subsidiaries (153) (179) (182) (278) (566)
--------- -------- -------- -------- --------
Net cash provided by (used in) operating activities 31 65 29 17 7
--------- -------- -------- -------- --------
Cash flows from investing activities:
Capital expenditures for property and equipment (31) (65) (29) (17) (7)
Proceeds from sales of assets -- -- -- -- --
Payments from Interstate Hotels & Resorts -- -- -- -- --
Change in restricted cash -- -- -- -- --
Costs associated with disposition program and other, net -- -- -- -- --
--------- -------- -------- -------- --------
Net cash provided by (used in) investing activities (31) (65) (29) (17) (7)
--------- -------- -------- -------- --------
Cash flows from financing activities:
Scheduled payments on long-term debt -- -- -- -- --
Distributions to minority investors -- -- -- -- --
--------- -------- -------- -------- --------
Net cash used in financing activities -- -- -- -- --
--------- -------- -------- -------- --------
Effect of exchange rate changes on cash -- -- -- -- --
--------- -------- -------- -------- --------
NET CHANGE IN CASH AND CASH EQUIVALENTS -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- --
--------- -------- -------- -------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- --
========= ======== ======== ======== ========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5R, SUB 6D, SUB 6E, SUB 4E, SUB 1B,
LLC LLC LLC L.P. LLC
-------- -------- -------- -------- --------
Operating activities:
Net (loss) income -- 220 733 30 391
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization -- 137 414 211 143
Equity in earnings -- -- -- -- --
Loss on asset impairments -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- --
Change in value of interest rate swaps -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable -- (7) -- -- --
Prepaid expenses and other assets -- (4) (18) (14) (20)
Due from/to Interstate Hotels & Resorts -- -- -- -- --
Accounts payable, accrued expenses, accrued
interest and other liabilities -- (82) (44) (358) 17
Due from subsidiaries -- (264) (985) 220 (506)
-------- -------- -------- -------- --------
Net cash provided by (used in) operating activities -- -- 100 89 25
-------- -------- -------- -------- --------
Cash flows from investing activities:
Capital expenditures for property and equipment -- -- (100) (89) (14)
Proceeds from sales of assets -- -- -- -- --
Payments from Interstate Hotels & Resorts -- -- -- -- --
Change in restricted cash -- -- -- -- --
Costs associated with disposition program and other, net -- -- -- -- --
-------- -------- -------- -------- --------
Net cash provided by (used in) investing activities -- -- (100) (89) (14)
-------- -------- -------- -------- --------
Cash flows from financing activities:
Scheduled payments on long-term debt -- -- -- -- (11)
Distributions to minority investors -- -- -- -- --
-------- -------- -------- -------- --------
Net cash used in financing activities -- -- -- -- (11)
-------- -------- -------- -------- --------
Effect of exchange rate changes on cash -- -- -- -- --
-------- -------- -------- -------- --------
NET CHANGE IN CASH AND CASH EQUIVALENTS -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- --
-------- -------- -------- -------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- --
======== ======== ======== ======== ========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5F, SUB 6G, SUB 8C, SUB 4C SUB 4H,
L.P. LLC LLC L.P. L.P.
-------- -------- -------- -------- --------
Operating activities:
Net (loss) income 360 213 (3,999) -- (114)
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 267 215 200 -- 132
Equity in earnings -- -- -- -- --
Loss on asset impairments -- -- 4,127 -- --
Minority interests -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- --
Change in value of interest rate swaps -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable -- -- -- -- 14
Prepaid expenses and other assets (38) (7) (13) -- (17)
Due from/to Interstate Hotels & Resorts -- -- -- -- --
Accounts payable, accrued expenses, accrued
interest an other liabilities (15) (71) (298) -- (95)
Due from subsidiaries (548) (342) (9) -- 114
-------- -------- -------- -------- --------
Net cash provided by (used in) operating activities 26 8 8 -- 34
-------- -------- -------- -------- --------
Cash flows from investing activities:
Capital expenditures for property and equipment (26) (8) (8) -- (34)
Proceeds from sales of assets -- -- -- -- --
Payments from Interstate Hotels & Resorts -- -- -- -- --
Change in restricted cash -- -- -- -- --
Costs associated with disposition program and other, net -- -- -- -- --
-------- -------- -------- -------- --------
Net cash provided by (used in) investing activities (26) (8) (8) -- (34)
-------- -------- -------- -------- --------
Cash flows from financing activities:
Scheduled payments on long-term debt -- -- -- -- --
Distributions to minority investors -- -- -- -- --
-------- -------- -------- -------- --------
Net cash used in financing activities -- -- -- -- --
-------- -------- -------- -------- --------
Effect of exchange rate changes on cash -- -- -- -- --
-------- -------- -------- -------- --------
NET CHANGE IN CASH AND CASH EQUIVALENTS -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- --
-------- -------- -------- -------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- --
======== ======== ======== ======== ========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 7E, SUB 3D, SUB 1A, SUB 5E, SUB 7A
LLC LLC LLC LLC JOINT VENTURE
-------- -------- -------- -------- -------------
Operating activities:
Net (loss) income 132 118 231 657 101
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 155 197 113 484 107
Equity in earnings -- -- -- -- --
Loss on asset impairments -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- --
Change in value of interest rate swaps -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable -- -- -- -- --
Prepaid expenses and other assets (5) (9) (33) (11) (8)
Due from/to Interstate Hotels & Resorts -- -- -- -- --
Accounts payable, accrued expenses, accrued
interest an other liabilities (30) 5 (51) 67 (64)
Due from subsidiaries (243) (302) (250) (1,177) (115)
-------- -------- -------- -------- -------------
Net cash provided by (used in) operating activities 9 9 10 20 21
-------- -------- -------- -------- -------------
Cash flows from investing activities:
Capital expenditures for property and equipment (9) (9) (10) (20) (21)
Proceeds from sales of assets -- -- -- -- --
Payments from Interstate Hotels & Resorts -- -- -- -- --
Change in restricted cash -- -- -- -- --
Costs associated with disposition program and other, net -- -- -- -- --
-------- -------- -------- -------- -------------
Net cash provided by (used in) investing activities (9) (9) (10) (20) (21)
-------- -------- -------- -------- -------------
Cash flows from financing activities:
Scheduled payments on long-term debt -- -- -- -- --
Distributions to minority investors -- -- -- -- --
-------- -------- -------- -------- -------------
Net cash used in financing activities -- -- -- -- --
-------- -------- -------- -------- -------------
Effect of exchange rate changes on cash -- -- -- -- --
-------- -------- -------- -------- -------------
NET CHANGE IN CASH AND CASH EQUIVALENTS -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- --
-------- -------- -------- -------- -------------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- --
======== ======== ======== ======== =============
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 6K, SUB 2B, SUB 3A, SUB 4A, SUB 4D,
LLC LLC LLC LLC LLC
-------- -------- -------- -------- --------
Operating activities:
Net (loss) income 671 (3,835) 44 191 (969)
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 186 113 66 -- 55
Equity in earnings -- -- -- -- --
Loss on asset impairments -- 3,680 -- -- 1,004
Minority interests -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- --
Change in value of interest rate swaps -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable -- 1 -- -- --
Prepaid expenses and other assets (2) (12) (5) (7) (4)
Due from/to Interstate Hotels & Resorts -- -- -- -- --
Accounts payable, accrued expenses, accrued
interest an other liabilities (60) -- (23) (175) 19
Due from subsidiaries (789) 54 (80) 57 (69)
-------- -------- -------- -------- --------
Net cash provided by (used in) operating activities 6 1 2 66 36
-------- -------- -------- -------- --------
Cash flows from investing activities:
Capital expenditures for property and equipment (6) (1) (2) (66) (36)
Proceeds from sales of assets -- -- -- -- --
Payments from Interstate Hotels & Resorts -- -- -- -- --
Change in restricted cash -- -- -- -- --
Costs associated with disposition program and other, net -- -- -- -- --
-------- -------- -------- -------- --------
Net cash provided by (used in) investing activities (6) (1) (2) (66) (36)
-------- -------- -------- -------- --------
Cash flows from financing activities:
Scheduled payments on long-term debt -- -- -- -- --
Distributions to minority investors -- -- -- -- --
-------- -------- -------- -------- --------
Net cash used in financing activities -- -- -- -- --
-------- -------- -------- -------- --------
Effect of exchange rate changes on cash -- -- -- -- --
-------- -------- -------- -------- --------
NET CHANGE IN CASH AND CASH EQUIVALENTS -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- --
-------- -------- -------- -------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- --
======== ======== ======== ======== ========
MERISTAR MERISTAR MDV MERISTAR MERISTAR
SUB 2A, SUB 6L, LIMITED SUB 5C, SUB 6J,
LLC LLC PARTNERSHIP LLC LLC
-------- -------- ----------- -------- --------
Operating activities:
Net (loss) income (2,177) 78 57 (5,878) 240
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 84 222 35 153 158
Equity in earnings -- -- -- -- --
Loss on asset impairments 1,981 -- -- 5,840 --
Minority interests -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- --
Change in value of interest rate swaps -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable -- -- -- -- --
Prepaid expenses and other assets (10) (7) (7) (32) (5)
Due from/to Interstate Hotels & Resorts -- -- -- -- --
Accounts payable, accrued expenses, accrued
interest an other liabilities 20 33 (48) (69) (25)
Due from subsidiaries 403 (289) (34) 38 (356)
-------- -------- ----------- -------- --------
Net cash provided by (used in) operating activities 301 37 3 52 12
-------- -------- ----------- -------- --------
Cash flows from investing activities:
Capital expenditures for property and equipment (301) (37) (3) (52) (12)
Proceeds from sales of assets -- -- -- -- --
Payments from Interstate Hotels & Resorts -- -- -- -- --
Change in restricted cash -- -- -- -- --
Costs associated with disposition program and other, net -- -- -- -- --
-------- -------- ----------- -------- --------
Net cash provided by (used in) investing activities (301) (37) (3) (52) (12)
-------- -------- ----------- -------- --------
Cash flows from financing activities:
Scheduled payments on long-term debt -- -- -- -- --
Distributions to minority investors -- -- -- -- --
-------- -------- ----------- -------- --------
Net cash used in financing activities -- -- -- -- --
-------- -------- ----------- -------- --------
Effect of exchange rate changes on cash -- -- -- -- --
-------- -------- ----------- -------- --------
NET CHANGE IN CASH AND CASH EQUIVALENTS -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- --
-------- -------- ----------- -------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- --
======== ======== =========== ======== ========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 1D, SUB 7B, SUB 7D, SUB 7G, SUB 6B,
L.P. L.P. LLC LLC LLC
-------- -------- -------- -------- -------
Operating activities:
Net (loss) income 260 (7,856) 600 (6,630) 59
Adjustments to reconcile net (loss) income to net cash provided by
(used in) operating activities:
Depreciation and amortization 578 181 421 178 116
Equity in earnings -- -- -- -- --
Loss on asset impairments -- 7,894 -- 6,549 --
Minority interests -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- --
Change in value of interest rate swaps -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable -- -- 243 -- --
Prepaid expenses and other assets (111) (7) (18) (6) (1)
Due from/to Interstate Hotels & Resorts -- -- -- -- --
Accounts payable, accrued expenses, accrued interest and
other liabilities -- (211) (695) (70) 43
Due from subsidiaries (677) 35 (549) 11 (205)
------- ------- ------- ------- ------
Net cash provided by (used in) operating activities 50 36 2 32 12
------- ------- ------- ------- ------
Cash flows from investing activities:
Capital expenditures for property and equipment (50) (36) (2) (32) (12)
Proceeds from sales of assets -- -- -- -- --
Payments from Interstate Hotels & Resorts -- -- -- -- --
Change in restricted cash -- -- -- -- --
Costs associated with disposition program and other, net -- -- -- -- --
------- ------- ------- ------- ------
Net cash provided by (used in) investing activities (50) (36) (2) (32) (12)
------- ------- ------- ------- ------
Cash flows from financing activities:
Scheduled payments on long-term debt -- -- -- -- --
Distributions to minority investors -- -- -- -- --
------- ------- ------- ------- ------
Net cash used in financing activities -- -- -- -- --
------- ------- ------- ------- ------
Effect of exchange rate changes on cash -- -- -- -- --
------- ------- ------- ------- ------
NET CHANGE IN CASH AND CASH EQUIVALENTS -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- --
------- ------- ------- ------- ------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- --
======= ======= ======= ======= ======
MERISTAR MERISTAR MERISTAR MERISTAR AGH
SUB 4I, SUB 5D, SUB 5H, SUB 7H, PSS I
L.P. LLC LLC LLC INC.
-------- -------- -------- -------- -------
Operating activities:
Net (loss) income (111) (276) 562 146 450
Adjustments to reconcile net (loss) income to net cash provided by
(used in) operating activities:
Depreciation and amortization 73 365 505 51 --
Equity in earnings -- -- -- -- --
Loss on asset impairments -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- --
Change in value of interest rate swaps -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable -- -- -- -- --
Prepaid expenses and other assets (8) (20) (98) (5) (45)
Due from/to Interstate Hotels & Resorts -- -- -- -- --
Accounts payable, accrued expenses, accrued interest and
other liabilities (179) (15) (76) (145) (1)
Due from subsidiaries 243 (41) (823) (42) (388)
------- ------- ------- ------- ------
Net cash provided by (used in) operating activities 18 13 70 5 16
------- ------- ------- ------- ------
Cash flows from investing activities:
Capital expenditures for property and equipment (18) (13) (70) (5) (16)
Proceeds from sales of assets -- -- -- -- --
Payments from Interstate Hotels & Resorts -- -- -- -- --
Change in restricted cash -- -- -- -- --
Costs associated with disposition program and other, net -- -- -- -- --
------- ------- ------- ------- ------
Net cash provided by (used in) investing activities (18) (13) (70) (5) (16)
------- ------- ------- ------- ------
Cash flows from financing activities:
Scheduled payments on long-term debt -- -- -- -- --
Distributions to minority investors -- -- -- -- --
------- ------- ------- ------- ------
Net cash used in financing activities -- -- -- -- --
------- ------- ------- ------- ------
Effect of exchange rate changes on cash -- -- -- -- --
------- ------- ------- ------- ------
NET CHANGE IN CASH AND CASH EQUIVALENTS -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- --
------- ------- ------- ------- ------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- --
======= ======= ======= ======= ======
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 2D, SUB 4F, SUB 5K, SUB 5M, SUB 1E,
LLC L.P. LLC LLC L.P.
-------- -------- -------- -------- -------
Operating activities:
Net (loss) income (7,826) 164 211 363 238
Adjustments to reconcile net (loss) income to net cash provided by
(used in) operating activities:
Depreciation and amortization 127 279 322 118 79
Equity in earnings -- -- -- -- --
Loss on asset impairments 7,650 -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- --
Change in value of interest rate swaps -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable -- -- -- -- --
Prepaid expenses and other assets (12) (8) (40) (20) (12)
Due from/to Interstate Hotels & Resorts -- -- -- -- --
Accounts payable, accrued expenses, accrued interest and
other liabilities (74) (267) (25) (4) 6
Due from subsidiaries 135 66 (428) (449) (302)
------- ------- ------- ------- ------
Net cash provided by (used in) operating activities -- 234 40 8 9
------- ------- ------- ------- ------
Cash flows from investing activities:
Capital expenditures for property and equipment -- (234) (40) (8) (9)
Proceeds from sales of assets -- -- -- -- --
Payments from Interstate Hotels & Resorts -- -- -- -- --
Change in restricted cash -- -- -- -- --
Costs associated with disposition program and other, net -- -- -- -- --
------- ------- ------- ------- ------
Net cash provided by (used in) investing activities -- (234) (40) (8) (9)
------- ------- ------- ------- ------
Cash flows from financing activities:
Scheduled payments on long-term debt -- -- -- -- --
Distributions to minority investors -- -- -- -- --
------- ------- ------- ------- ------
Net cash used in financing activities -- -- -- -- --
------- ------- ------- ------- ------
Effect of exchange rate changes on cash -- -- -- -- --
------- ------- ------- ------- ------
NET CHANGE IN CASH AND CASH EQUIVALENTS -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- --
------- ------- ------- ------- ------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- --
======= ======= ======= ======= ======
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5O, SUB 6M SUB 4B, SUB 6C, SUB 2C,
LLC COMPANY L.P. LLC LLC
-------- -------- -------- -------- -------
Operating activities:
Net (loss) income 157 526 (156) 403 (13,660)
Adjustments to reconcile net (loss) income to net cash provided by
(used in) operating activities:
Depreciation and amortization 57 308 136 194 278
Equity in earnings -- -- -- -- --
Loss on asset impairments -- -- -- -- 13,282
Minority interests -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- --
Change in value of interest rate swaps -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable -- -- -- -- --
Prepaid expenses and other assets (8) (8) (9) (7) (31)
Due from/to Interstate Hotels & Resorts -- -- -- -- --
Accounts payable, accrued expenses, accrued interest and
other liabilities 2 58 (204) (7) 52
Due from subsidiaries (205) (880) 296 (543) 79
------- ------- ------- ------- -------
Net cash provided by (used in) operating activities 3 4 63 40 --
------- ------- ------- ------- -------
Cash flows from investing activities:
Capital expenditures for property and equipment (3) (4) (63) (40) --
Proceeds from sales of assets -- -- -- -- --
Payments from Interstate Hotels & Resorts -- -- -- -- --
Change in restricted cash -- -- -- -- --
Costs associated with disposition program and other, net -- -- -- -- --
------- ------- ------- ------- -------
Net cash provided by (used in) investing activities (3) (4) (63) (40) --
------- ------- ------- ------- -------
Cash flows from financing activities:
Scheduled payments on long-term debt -- -- -- -- --
Distributions to minority investors -- -- -- -- --
------- ------- ------- ------- -------
Net cash used in financing activities -- -- -- -- --
------- ------- ------- ------- -------
Effect of exchange rate changes on cash -- -- -- -- --
------- ------- ------- ------- -------
NET CHANGE IN CASH AND CASH EQUIVALENTS -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- --
------- ------- ------- ------- -------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- --
======= ======= ======= ======= =======
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 4G, SUB 3B, SUB 5G, SUB 5P, SUB 5J,
L.P. LLC L.P. LLC LLC
-------- -------- -------- -------- -------
Operating activities:
Net (loss) income 149 (491) 1,012 177 1,449
Adjustments to reconcile net (loss) income to net cash provided by
(used in) operating activities:
Depreciation and amortization 225 130 1,572 1 871
Equity in earnings -- -- -- -- --
Loss on asset impairments -- 695 -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- --
Change in value of interest rate swaps -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable -- -- -- -- --
Prepaid expenses and other assets (50) (7) (140) (6) (147)
Due from/to Interstate Hotels & Resorts -- -- -- -- --
Accounts payable, accrued expenses, accrued interest and
other liabilities (386) 56 47 -- (168)
Due from subsidiaries 69 (348) (2,333) (172) (791)
------- ------- ------- ------- -------
Net cash provided by (used in) operating activities 7 35 158 -- 1,214
------- ------- ------- ------- -------
Cash flows from investing activities:
Capital expenditures for property and equipment (7) (35) (158) -- (1,214)
Proceeds from sales of assets -- -- -- -- --
Payments from Interstate Hotels & Resorts -- -- -- -- --
Change in restricted cash -- -- -- -- --
Costs associated with disposition program and other, net -- -- -- -- --
------- ------- ------- ------- -------
Net cash provided by (used in) investing activities (7) (35) (158) -- (1,214)
------- ------- ------- ------- -------
Cash flows from financing activities:
Scheduled payments on long-term debt -- -- -- -- --
Distributions to minority investors -- -- -- -- --
------- ------- ------- ------- -------
Net cash used in financing activities -- -- -- -- --
------- ------- ------- ------- -------
Effect of exchange rate changes on cash -- -- -- -- --
------- ------- ------- ------- -------
NET CHANGE IN CASH AND CASH EQUIVALENTS -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- --
------- ------- ------- ------- -------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- --
======= ======= ======= ======= =======
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5Q, SUB 5A, SUB 8D, SUB 4J, HOTEL
LLC LLC LLC LLC LESSEE, INC.
-------- -------- -------- -------- -----------
Operating activities:
Net (loss) income 419 351 172 274 (8,222)
Adjustments to reconcile net (loss) income to net cash provided by
(used in) operating activities:
Depreciation and amortization 140 386 314 326 (73)
Equity in earnings -- -- -- -- --
Loss on asset impairments -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- --
Change in value of interest rate swaps -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable -- -- -- (8) (12,249)
Prepaid expenses and other assets (28) (16) (8) (11) (977)
Due from/to Interstate Hotels & Resorts -- -- -- -- (44)
Accounts payable, accrued expenses, accrued interest and
other liabilities (29) 36 (16) (110) 6,711
Due from subsidiaries (413) (697) (332) (459) 7,941
------- ------- ------- ------- -----------
Net cash provided by (used in) operating activities 89 60 130 12 (6,913)
------- ------- ------- ------- -----------
Cash flows from investing activities:
Capital expenditures for property and equipment (89) (60) (130) (12) 4
Proceeds from sales of assets -- -- -- -- --
Payments from Interstate Hotels & Resorts -- -- -- -- --
Change in restricted cash -- -- -- -- --
Costs associated with disposition program and other, net -- -- -- -- --
------- ------- ------- ------- -----------
Net cash provided by (used in) investing activities (89) (60) (130) (12) 4
------- ------- ------- ------- -----------
Cash flows from financing activities:
Scheduled payments on long-term debt -- -- -- -- 12,249
Distributions to minority investors -- -- -- -- --
------- ------- ------- ------- -----------
Net cash used in financing activities -- -- -- -- 12,249
------- ------- ------- ------- -----------
Effect of exchange rate changes on cash -- -- -- -- --
------- ------- ------- ------- -----------
NET CHANGE IN CASH AND CASH EQUIVALENTS -- -- -- -- 5,340
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- 12,517
------- ------- ------- ------- -----------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- 17,857
======= ======= ======= ======= ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
GUARANTOR
SUBSIDIARIES
TOTAL ELIMINATIONS TOTAL CONSOLIDATED
-------------- --------------- ------------------
Operating activities:
Net (loss) income (47,216) 44,064 (73,198)
Adjustments to reconcile net (loss) income to net cash provided by
(used in) operating activities:
Depreciation and amortization 13,700 -- 28,706
Equity in earnings -- (44,064) --
Loss on asset impairments 52,702 -- 56,677
Minority interests -- -- 11
Amortization of unearned stock-based compensation -- -- 976
Change in value of interest rate swaps -- -- (2,055)
Deferred income taxes -- -- (682)
Changes in operating assets and liabilities:
Accounts receivable (11,962) -- (12,937)
Prepaid expenses and other assets (2,297) -- 1,416
Due from/to Interstate Hotels & Resorts (44) -- 93
Accounts payable, accrued expenses, accrued interest and
other liabilities 2,847 -- (9,236)
Due from subsidiaries (10,638) -- --
------------- -------------- -----------------
Net cash provided by (used in) operating activities (2,908) -- (10,229)
------------- -------------- -----------------
Cash flows from investing activities:
Capital expenditures for property and equipment (3,990) -- (8,622)
Proceeds from sales of assets -- -- 12,650
Payments from Interstate Hotels & Resorts -- -- 42,052
Change in restricted cash -- -- (1,656)
Costs associated with disposition program and other, net -- -- (299)
------------- -------------- -----------------
Net cash provided by (used in) investing activities (3,990) -- 44,125
------------- -------------- -----------------
Cash flows from financing activities:
Scheduled payments on long-term debt 12,238 -- (1,889)
Distributions to minority investors -- -- (141)
------------- -------------- -----------------
Net cash used in financing activities 12,238 -- (2,030)
------------- -------------- -----------------
Effect of exchange rate changes on cash -- -- (274)
------------- -------------- -----------------
NET CHANGE IN CASH AND CASH EQUIVALENTS 5,340 -- 31,592
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 12,517 -- 33,889
------------- -------------- -----------------
CASH AND CASH EQUIVALENTS, END OF PERIOD 17,857 -- 65,481
============= ============== =================