.
.
.
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR NON-
HOSPITALITY GUARANTOR MERISTAR AGH UPREIT, MERISTAR
OP, L.P. SUBSIDIARIES SUB 7C, LLC LLC SUB 5N, LLC
----------- ------------ ----------- ----------- -----------
ASSETS
Property and equipment 22,219 1,472,038 -- -- 4,193
Accumulated depreciation (15,590) (270,448) -- -- (748)
----------- ----------- ----------- ----------- -----------
6,629 1,201,590 -- -- 3,445
Assets held for sale -- 9,313 -- -- --
Investments in affiliates 2,635,432 8,200 32 2,989 --
Due to/from subsidiaries (1,078,785) 528,088 -- 74 4,724
Note receivable from subsidiaries 158,084 -- -- -- --
Prepaid expenses and other assets 32,454 (3,546) -- -- (33)
Accounts receivable, net of allowance for doubtful accounts 26,366 810 -- -- --
Restricted cash 67,707 2,166 -- -- --
Cash and cash equivalents - unrestricted 125,513 -- -- -- --
----------- ----------- ----------- ----------- -----------
1,973,400 1,746,621 32 3,063 8,136
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt 836,204 487,780 -- -- --
Notes payable to MeriStar Hospitality Corporation 207,576 -- -- -- --
Accounts payable and accrued expenses 6,118 7,125 -- -- 37
Accrued interest 38,951 2,170 -- -- --
Due to Interstate Hotels & Resorts 13,841 -- -- -- --
Other liabilities 10,863 -- -- -- --
----------- ----------- ----------- ----------- -----------
1,113,553 497,075 -- -- 37
----------- ----------- ----------- ----------- -----------
Minority interests 2,472 -- -- -- --
Redeemable OP units at redemption value 27,533 -- -- -- --
Partners' capital 829,842 1,249,546 32 3,063 8,099
----------- ----------- ----------- ----------- -----------
1,973,400 1,746,621 32 3,063 8,136
=========== =========== =========== =========== ===========
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
8A, LLC 8F, L.P. 8G, LLC 6H, L.P. 8B, LLC
------------ ------------ ------------ ------------ ------------
ASSETS
Property and equipment -- 11,535 -- 10,863 87,997
Accumulated depreciation -- (2,850) -- (470) (13,458)
----------- ----------- ----------- ----------- -----------
-- 8,685 -- 10,393 74,539
Assets held for sale -- -- -- -- --
Investments in affiliates -- -- 72 -- --
Due to/from subsidiaries -- 7,870 9 7,326 29,243
Note receivable from subsidiaries -- -- -- -- --
Prepaid expenses and other assets -- (50) -- (5) (70)
Accounts receivable, net of allowance for doubtful accounts -- -- -- -- --
Restricted cash -- 115 -- -- --
Cash and cash equivalents - unrestricted -- -- -- -- --
----------- ----------- ----------- ----------- -----------
-- 16,620 81 17,714 103,712
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses -- 38 -- 43 2,395
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
-- 38 -- 43 2,395
----------- ----------- ----------- ----------- -----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital -- 16,582 81 17,671 101,317
----------- ----------- ----------- ----------- -----------
-- 16,620 81 17,714 103,712
=========== =========== =========== =========== ===========
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
1C, L.P. 8E, LLC 7F, LLC 5L, LLC 3C, LLC
------------ ------------ ------------ ------------ ------------
ASSETS
Property and equipment 26,898 15,610 7,338 12,052 17,509
Accumulated depreciation (6,597) (3,322) (266) (722) (4,047)
----------- ----------- ----------- ----------- -----------
20,301 12,288 7,072 11,330 13,462
Assets held for sale -- -- -- -- --
Investments in affiliates -- -- -- -- --
Due to/from subsidiaries (3,754) 7,262 5,515 4,673 5,928
Note receivable from subsidiaries -- -- -- -- --
Prepaid expenses and other assets (147) (19) (7) (53) 15
Accounts receivable, net of allowance for doubtful accounts -- -- -- -- --
Restricted cash -- -- -- -- --
Cash and cash equivalents - unrestricted -- -- -- -- --
----------- ----------- ----------- ----------- -----------
16,400 19,531 12,580 15,950 19,405
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 72 (23) 157 48 212
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
72 (23) 157 48 212
----------- ----------- ----------- ----------- -----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital 16,328 19,554 12,423 15,902 19,193
----------- ----------- ----------- ----------- -----------
16,400 19,531 12,580 15,950 19,405
=========== =========== =========== =========== ===========
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
5R, LLC 6D, LLC 6E, LLC 4E, L.P. 1B, LLC
------------ ------------ ------------ ------------ ------------
ASSETS
Property and equipment -- 17,921 47,575 3,880 19,375
Accumulated depreciation -- (3,166) (10,789) -- (4,313)
----------- ----------- ----------- ----------- -----------
-- 14,755 36,786 3,880 15,062
Assets held for sale -- -- -- -- --
Investments in affiliates 43 -- -- -- --
Due to/from subsidiaries (43) 9,034 22,531 3,772 15,702
Note receivable from subsidiaries -- -- -- -- --
Prepaid expenses and other assets -- (14) (64) (37) (60)
Accounts receivable, net of allowance for doubtful accounts -- 98 -- -- 96
Restricted cash -- -- -- -- --
Cash and cash equivalents - unrestricted -- -- -- -- --
----------- ----------- ----------- ----------- -----------
-- 23,873 59,253 7,615 30,800
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- 33
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses -- 136 60 204 (5)
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
-- 136 60 204 28
----------- ----------- ----------- ----------- -----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital -- 23,737 59,193 7,411 30,772
----------- ----------- ----------- ----------- -----------
-- 23,873 59,253 7,615 30,800
=========== =========== =========== =========== ===========
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
5F, L.P. 6G, LLC 8C, LLC 4C, L.P. 4H, L.P.
------------- ------------ ------------ ------------ ------------
ASSETS
Property and equipment 19,426 22,883 -- -- 1
Accumulated depreciation (589) (5,376) -- -- --
----------- ----------- ----------- ----------- -----------
18,837 17,507 -- -- 1
Assets held for sale -- -- -- -- --
Investments in affiliates -- -- -- -- --
Due to/from subsidiaries 11,741 8,548 11,440 -- 3,413
Note receivable from subsidiaries -- -- -- -- --
Prepaid expenses and other assets (126) (24) -- -- --
Accounts receivable, net of allowance for doubtful accounts -- -- -- -- --
Restricted cash -- -- -- -- --
Cash and cash equivalents - unrestricted -- -- -- -- --
----------- ----------- ----------- ----------- -----------
30,452 26,031 11,440 -- 3,414
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 120 72 1 -- --
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
120 72 1 -- --
----------- ----------- ----------- ----------- -----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital 30,332 25,959 11,439 -- 3,414
----------- ----------- ----------- ----------- -----------
30,452 26,031 11,440 -- 3,414
=========== =========== =========== =========== ===========
<Caption>
MERISTAR SUB
MERISTAR SUB MERISTAR SUB MERISTAR SUB 7A JOINT MERISTAR SUB
7E, LLC 3D, LLC 1A, LLC VENTURE 2B, LLC
------------ ------------ ------------ ------------ ------------
ASSETS
Property and equipment 20,138 22,826 -- -- --
Accumulated depreciation (3,636) (7,418) -- -- --
----------- ----------- ----------- ----------- -----------
16,502 15,408 -- -- --
Assets held for sale -- -- 7,857 4,656 --
Investments in affiliates -- -- -- -- --
Due to/from subsidiaries 5,428 9,001 7,965 5,449 (3,497)
Note receivable from subsidiaries -- -- -- -- --
Prepaid expenses and other assets (15) (31) (86) (9) --
Accounts receivable, net of allowance for doubtful accounts -- -- -- -- --
Restricted cash -- -- -- -- --
Cash and cash equivalents - unrestricted -- -- -- -- --
----------- ----------- ----------- ----------- -----------
21,915 24,378 15,736 10,096 (3,497)
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 108 85 27 177 (7)
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
108 85 27 177 (7)
----------- ----------- ----------- ----------- -----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital 21,807 24,293 15,709 9,919 (3,490)
----------- ----------- ----------- ----------- -----------
21,915 24,378 15,736 10,096 (3,497)
=========== =========== =========== =========== ===========
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR
MERISTAR SUB SUB 4A, MERISTAR SUB MERISTAR SUB MERISTAR SUB
3A, LLC LLC 4D, LLC 2A, LLC 6L, LLC
------------ ----------- ------------ ------------ ------------
ASSETS
Property and equipment -- -- -- -- --
Accumulated depreciation -- -- -- -- --
----------- ----------- ----------- ----------- -----------
-- -- -- -- --
Assets held for sale -- -- -- -- --
Investments in affiliates -- -- -- -- --
Due to/from subsidiaries 4,976 7,612 -- (7,913) 20,297
Note receivable from subsidiaries -- -- -- -- --
Prepaid expenses and other assets -- -- -- -- --
Accounts receivable, net of allowance for doubtful accounts -- -- -- -- 178
Restricted cash -- -- -- -- --
Cash and cash equivalents - unrestricted -- -- -- -- --
----------- ----------- ----------- ----------- -----------
4,976 7,612 -- (7,913) 20,475
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses -- -- -- (7) --
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
-- -- -- (7) --
----------- ----------- ----------- ----------- -----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital 4,976 7,612 -- (7,906) 20,475
----------- ----------- ----------- ----------- -----------
4,976 7,612 -- (7,913) 20,475
=========== =========== =========== =========== ===========
<Caption>
MDV LIMITED MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
PARTNERSHIP 5C, LLC 6J, LLC 1D, L.P. 7B, L.P.
----------- ------------ ------------ ------------ ------------
ASSETS
Property and equipment 3,900 -- 19,721 69,078 --
Accumulated depreciation (756) -- (4,051) (13,172) --
----------- ----------- ----------- ----------- -----------
3,144 -- 15,670 55,906 --
Assets held for sale -- -- -- -- --
Investments in affiliates -- -- -- -- --
Due to/from subsidiaries 2,702 5,087 8,844 21,253 (262)
Note receivable from subsidiaries -- -- -- -- --
Prepaid expenses and other assets (14) 4 9 (393) --
Accounts receivable, net of allowance for doubtful accounts -- (2) -- -- --
Restricted cash -- -- -- -- --
Cash and cash equivalents - unrestricted -- -- -- -- --
----------- ----------- ----------- ----------- -----------
5,832 5,089 24,523 76,766 (262)
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 102 -- 72 98 --
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
102 -- 72 98 --
----------- ----------- ----------- ----------- -----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital 5,730 5,089 24,451 76,668 (262)
----------- ----------- ----------- ----------- -----------
5,832 5,089 24,523 76,766 (262)
=========== =========== =========== =========== ===========
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
7D, LLC 7G, LLC 6B, LLC 4I, L.P. 5D, LLC
------------ ------------ ------------ ------------ ------------
ASSETS
Property and equipment 53,422 -- 11,464 -- 42,262
Accumulated depreciation (10,591) -- (2,411) -- (8,839)
----------- ----------- ----------- ----------- -----------
42,831 -- 9,053 -- 33,423
Assets held for sale -- -- -- -- --
Investments in affiliates -- -- -- -- 51,368
Due to/from subsidiaries 27,467 2,369 3,052 1,660 (6,043)
Note receivable from subsidiaries -- -- -- -- --
Prepaid expenses and other assets 118 -- (10) -- (49)
Accounts receivable, net of allowance for doubtful accounts 676 -- -- -- --
Restricted cash -- -- -- -- --
Cash and cash equivalents - unrestricted -- -- -- -- --
----------- ----------- ----------- ----------- -----------
71,092 2,369 12,095 1,660 78,699
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- 24,000
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 4,611 -- (2) -- 372
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts (200) -- -- -- --
Other liabilities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
4,411 -- (2) -- 24,372
----------- ----------- ----------- ----------- -----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital 66,681 2,369 12,097 1,660 54,327
----------- ----------- ----------- ----------- -----------
71,092 2,369 12,095 1,660 78,699
=========== =========== =========== =========== ===========
<Caption>
MERISTAR SUB MERISTAR SUB AGH MERISTAR SUB MERISTAR SUB
5H, LLC 7H, LLC PSS I, INC. 2D, LLC 4F, L.P.
------------ ------------ ----------- ------------ ------------
ASSETS
Property and equipment -- -- -- -- 33,470
Accumulated depreciation -- -- -- -- (6,361)
----------- ----------- ----------- ----------- -----------
-- -- -- -- 27,109
Assets held for sale -- -- -- -- --
Investments in affiliates -- -- -- -- --
Due to/from subsidiaries 36,576 9,589 25,570 (4,616) 4,992
Note receivable from subsidiaries -- -- -- -- --
Prepaid expenses and other assets -- -- -- -- 1
Accounts receivable, net of allowance for doubtful accounts 46 -- -- -- --
Restricted cash -- -- -- -- --
Cash and cash equivalents - unrestricted -- -- -- -- --
----------- ----------- ----------- ----------- -----------
36,622 9,589 25,570 (4,616) 32,102
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses -- -- -- (1) 168
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
-- -- -- (1) 168
----------- ----------- ----------- ----------- -----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital 36,622 9,589 25,570 (4,615) 31,934
----------- ----------- ----------- ----------- -----------
36,622 9,589 25,570 (4,616) 32,102
=========== =========== =========== =========== ===========
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
5K, LLC 5M, LLC 1E, L.P. 5O, LLC 4B, L.P.
------------ ------------ ------------ ------------ ------------
ASSETS
Property and equipment 28,635 22,103 -- 8,770 --
Accumulated depreciation (5,854) (2,593) -- (1,259) --
----------- ----------- ----------- ----------- -----------
22,781 19,510 -- 7,511 --
Assets held for sale -- -- -- -- --
Investments in affiliates -- -- -- -- --
Due to/from subsidiaries (969) 8,794 24,352 3,527 1,728
Note receivable from subsidiaries -- -- -- -- --
Prepaid expenses and other assets (139) (85) -- (28) --
Accounts receivable, net of allowance for doubtful accounts -- -- -- -- --
Restricted cash -- -- -- -- --
Cash and cash equivalents - unrestricted -- -- -- -- --
----------- ----------- ----------- ----------- -----------
21,673 28,219 24,352 11,010 1,728
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 1,548 98 -- 38 --
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
1,548 98 -- 38 --
----------- ----------- ----------- ----------- -----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital 20,125 28,121 24,352 10,972 1,728
----------- ----------- ----------- ----------- -----------
21,673 28,219 24,352 11,010 1,728
=========== =========== =========== =========== ===========
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
2C, LLC 4G, L.P. 3B, LLC 5G, L.P. 5P, LLC
------------ ------------ ------------ ------------ ------------
ASSETS
Property and equipment -- 8,734 -- 168,326 39
Accumulated depreciation -- (111) -- (33,652) (25)
----------- ----------- ----------- ----------- -----------
-- 8,623 -- 134,674 14
Assets held for sale -- -- -- -- --
Investments in affiliates -- -- -- -- --
Due to/from subsidiaries (6,612) 9,361 9,351 43,062 3,575
Note receivable from subsidiaries -- -- -- -- --
Prepaid expenses and other assets (7) (170) (3) (206) (7)
Accounts receivable, net of allowance for doubtful accounts 5 -- -- -- 38
Restricted cash -- -- -- -- --
Cash and cash equivalents - unrestricted -- -- -- -- --
----------- ----------- ----------- ----------- -----------
(6,614) 17,814 9,348 177,530 3,620
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses (33) 171 22 574 --
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
(33) 171 22 574 --
----------- ----------- ----------- ----------- -----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital (6,581) 17,643 9,326 176,956 3,620
----------- ----------- ----------- ----------- -----------
(6,614) 17,814 9,348 177,530 3,620
=========== =========== =========== =========== ===========
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
5J, LLC 5Q, LLC 5A, LLC 8D, LLC 4J, LLC
------------ ------------ ------------ ------------ ------------
ASSETS
Property and equipment 112,407 16,905 36,345 2 39,184
Accumulated depreciation (19,626) (2,563) (11,218) -- (7,759)
----------- ----------- ----------- ----------- -----------
92,781 14,342 25,127 2 31,425
Assets held for sale -- -- -- -- --
Investments in affiliates -- -- 4,627 -- --
Due to/from subsidiaries 24,957 5,674 7,844 16,377 7,883
Note receivable from subsidiaries -- -- -- -- --
Prepaid expenses and other assets (661) (98) (55) -- (36)
Accounts receivable, net of allowance for doubtful accounts -- -- -- 359 (14)
Restricted cash -- -- -- -- --
Cash and cash equivalents - unrestricted -- -- -- -- --
----------- ----------- ----------- ----------- -----------
117,077 19,918 37,543 16,738 39,258
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- 23,609 -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 441 41 364 -- 155
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
441 41 23,973 -- 155
----------- ----------- ----------- ----------- -----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital 116,636 19,877 13,570 16,738 39,103
----------- ----------- ----------- ----------- -----------
117,077 19,918 37,543 16,738 39,258
=========== =========== =========== =========== ===========
<Caption>
MERISTAR MERISTAR GUARANTOR
PENTAGON HOTEL SUBSIDIARIES TOTAL
CITY, LLC LESSEE, INC. TOTAL ELIMINATIONS CONSOLIDATED
------------ ------------ ------------ ------------ ------------
ASSETS
Property and equipment 92,807 3,316 1,138,910 -- 2,633,167
Accumulated depreciation (355) (3,370) (202,333) -- (488,371)
----------- ----------- ----------- ----------- -----------
92,452 (54) 936,577 -- 2,144,796
Assets held for sale -- -- 12,513 -- 21,826
Investments in affiliates -- 1,629 60,760 (2,689,392) 15,000
Due to/from subsidiaries 56,880 (7,653) 550,697 -- --
Note receivable from subsidiaries -- -- -- (158,084) --
Prepaid expenses and other assets 524 14,053 11,913 -- 40,821
Accounts receivable, net of allowance for doubtful accounts -- 47,861 49,341 (4,344) 72,173
Restricted cash -- 2,490 2,605 -- 72,478
Cash and cash equivalents - unrestricted -- 23,299 23,299 -- 148,812
----------- ----------- ----------- ----------- -----------
149,856 81,625 1,647,705 (2,851,820) 2,515,906
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt 55,800 110,486 213,928 (158,084) 1,379,828
Notes payable to MeriStar Hospitality Corporation -- -- -- -- 207,576
Accounts payable and accrued expenses 325 61,716 74,830 -- 88,073
Accrued interest -- 4,344 4,344 (4,344) 41,121
Due to Interstate Hotels & Resorts -- 8,246 8,046 -- 21,887
Other liabilities -- 8,292 8,292 -- 19,155
----------- ----------- ----------- ----------- -----------
56,125 193,084 309,440 (162,428) 1,757,640
----------- ----------- ----------- ----------- -----------
Minority interests -- -- -- -- 2,472
Redeemable OP units at redemption value -- -- -- -- 27,533
Partners' capital 93,731 (111,459) 1,338,265 (2,689,392) 728,261
----------- ----------- ----------- ----------- -----------
149,856 81,625 1,647,705 (2,851,820) 2,515,906
=========== =========== =========== =========== ===========
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2003
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR NON-
HOSPITALITY GUARANTOR MERISTAR SUB AGH UPREIT, MERISTAR
OP, L.P. SUBSIDIARIES 7C, LLC LLC SUB 5N, LLC
------------- ------------- ------------- ------------- -------------
ASSETS
Property and equipment 18,987 1,407,432 -- -- 4,146
Accumulated depreciation (13,219) (246,091) -- -- (679)
------------- ------------- ------------- ------------- -------------
5,768 1,161,341 -- -- 3,467
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 4,243
Note receivable from subsidiaries 120,855 -- -- -- --
Prepaid expenses and other assets 34,658 (1,612) -- -- (18)
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 7,692
============= ============= ============= ============= =============
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 -- -- (11)
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 -- -- (11)
------------- ------------- ------------- ------------- -------------
Minority interests 2,496 -- -- -- --
Redeemable OP units at redemption value 35,926 -- -- -- --
Partners' capital 529,460 1,128,841 32 3,122 7,703
------------- ------------- ------------- ------------- -------------
1,808,462 1,573,471 32 3,122 7,692
============= ============= ============= ============= =============
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
8A, LLC 8F, L.P. 8G, LLC 6H, L.P.
------------- ------------- ------------- -------------
ASSETS
Property and equipment -- 11,502 -- 10,862
Accumulated depreciation -- (2,521) -- (157)
------------- ------------- ------------- -------------
-- 8,981 -- 10,705
Assets held for sale -- -- -- --
Investments in affiliate -- -- 72 --
Due from/to subsidiaries -- 7,012 10 6,814
Note receivable from subsidiaries -- -- -- --
Prepaid expenses and other assets -- (28) -- 1
Accounts receivable, net of allowance for
doubtful accounts -- -- -- --
Restricted cash -- 115 -- --
Cash and cash equivalents - unrestricted -- -- -- --
------------- ------------- ------------- -------------
-- 16,080 82 17,520
============= ============= ============= =============
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- --
Accounts payable and accrued expenses -- 67 -- 161
Accrued interest -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- --
Other liabilities -- -- -- --
------------- ------------- ------------- -------------
Total liabilities -- 67 -- 161
------------- ------------- ------------- -------------
Minority interests -- -- -- --
Redeemable OP units at redemption value -- -- -- --
Partners' capital -- 16,013 82 17,359
------------- ------------- ------------- -------------
-- 16,080 82 17,520
============= ============= ============= =============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2003
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
8B, LLC 1C, L.P. 8E, LLC 7F, LLC 5L, LLC
------------- ------------- ------------- ------------- -------------
ASSETS
Property and equipment 83,215 26,641 15,493 7,293 11,841
Accumulated depreciation (12,270) (5,900) (3,024) (97) (645)
------------- ------------- ------------- ------------- -------------
70,945 20,741 12,469 7,196 11,196
Assets held for sale -- -- -- -- --
Investments in affiliate -- -- -- -- --
Due from/to subsidiaries 30,981 (3,881) 6,688 5,122 4,239
Note receivable from subsidiaries -- -- -- -- --
Prepaid expenses and other assets (26) (88) (10) (1) (24)
Accounts receivable, net of allowance for
doubtful accounts -- -- -- -- --
Restricted cash -- -- -- -- --
Cash and cash equivalents - unrestricted -- -- -- -- --
------------- ------------- ------------- ------------- -------------
101,900 16,772 19,147 12,317 15,411
============= ============= ============= ============= =============
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 2,502 88 (32) 208 (15)
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
------------- ------------- ------------- ------------- -------------
Total liabilities 2,502 88 (32) 208 (15)
------------- ------------- ------------- ------------- -------------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital 99,398 16,684 19,179 12,109 15,426
------------- ------------- ------------- ------------- -------------
101,900 16,772 19,147 12,317 15,411
============= ============= ============= ============= =============
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
3C, LLC 5R, LLC 6D, LLC 6E, LLC
------------- ------------- ------------- -------------
ASSETS
Property and equipment 17,498 -- 17,449 45,155
Accumulated depreciation (3,696) -- (2,893) (9,963)
------------- ------------- ------------- -------------
13,802 -- 14,556 35,192
Assets held for sale -- -- -- --
Investments in affiliate -- 43 -- --
Due from/to subsidiaries 5,062 (43) 8,445 21,931
Note receivable from subsidiaries -- -- -- --
Prepaid expenses and other assets 28 -- (7) (33)
Accounts receivable, net of allowance for
doubtful accounts -- -- 103 --
Restricted cash -- -- -- --
Cash and cash equivalents - unrestricted -- -- -- --
------------- ------------- ------------- -------------
18,892 -- 23,097 57,090
============= ============= ============= =============
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- --
Accounts payable and accrued expenses 140 -- 38 (208)
Accrued interest -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- --
Other liabilities -- -- -- --
------------- ------------- ------------- -------------
Total liabilities 140 -- 38 (208)
------------- ------------- ------------- -------------
Minority interests -- -- -- --
Redeemable OP units at redemption value -- -- -- --
Partners' capital 18,752 -- 23,059 57,298
------------- ------------- ------------- -------------
18,892 -- 23,097 57,090
============= ============= ============= =============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2003
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
4E, L.P. 1B, LLC 5F, L.P. 6G, LLC 8C, LLC
------------- ------------- ------------- ------------- -------------
ASSETS
Property and equipment 5,047 18,656 17,410 22,578 --
Accumulated depreciation (76) (4,064) (198) (5,014) --
------------- ------------- ------------- ------------- -------------
4,971 14,592 17,212 17,564 --
Assets held for sale -- -- -- -- 5,530
Investments in affiliate -- -- -- -- --
Due from/to subsidiaries 3,545 15,375 12,431 6,988 5,557
Note receivable from subsidiaries -- -- -- -- --
Prepaid expenses and other assets (17) (32) (63) (12) 117
Accounts receivable, net of allowance for
doubtful accounts -- 96 -- -- --
Restricted cash -- -- -- -- --
Cash and cash equivalents - unrestricted -- -- -- -- --
------------- ------------- ------------- ------------- -------------
8,499 30,031 29,580 24,540 11,204
============= ============= ============= ============= =============
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- 33 -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 351 39 97 (69) (306)
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
------------- ------------- ------------- ------------- -------------
Total liabilities 351 72 97 (69) (306)
------------- ------------- ------------- ------------- -------------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital 8,148 29,959 29,483 24,609 11,510
------------- ------------- ------------- ------------- -------------
8,499 30,031 29,580 24,540 11,204
============= ============= ============= ============= =============
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
4C, L.P. 4H, L.P. 7E, LLC 3D, LLC
------------- ------------- ------------- -------------
ASSETS
Property and equipment -- 4,929 18,569 22,682
Accumulated depreciation -- (130) (3,323) (7,036)
------------- ------------- ------------- -------------
-- 4,799 15,246 15,646
Assets held for sale -- -- -- --
Investments in affiliate -- -- -- --
Due from/to subsidiaries -- (791) 6,367 8,459
Note receivable from subsidiaries -- -- -- --
Prepaid expenses and other assets -- (8) (8) (16)
Accounts receivable, net of allowance for
doubtful accounts -- -- -- --
Restricted cash -- -- -- --
Cash and cash equivalents - unrestricted -- -- -- --
------------- ------------- ------------- -------------
-- 4,000 21,605 24,089
============= ============= ============= =============
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- --
Accounts payable and accrued expenses -- 178 74 30
Accrued interest -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- --
Other liabilities -- -- -- --
------------- ------------- ------------- -------------
Total liabilities -- 178 74 30
------------- ------------- ------------- -------------
Minority interests -- -- -- --
Redeemable OP units at redemption value -- -- -- --
Partners' capital -- 3,822 21,531 24,059
------------- ------------- ------------- -------------
-- 4,000 21,605 24,089
============= ============= ============= =============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2003
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB MERISTAR
MERISTAR SUB 7A JOINT MERISTAR SUB MERISTAR SUB SUB 4A,
1A, LLC VENTURE 2B, LLC 3A, LLC LLC
------------- ------------- ------------- ------------- -------------
ASSETS
Property and equipment 11,514 5,881 -- 3,197 --
Accumulated depreciation (2,928) (121) -- (51) --
------------- ------------- ------------- ------------- -------------
8,586 5,760 -- 3,146 --
Assets held for sale -- -- -- -- 3,301
Investments in affiliate -- -- -- -- --
Due from/to subsidiaries 7,330 5,021 (7,036) 1,904 4,573
Note receivable from subsidiaries -- -- -- -- --
Prepaid expenses and other assets (56) 1 -- 1 (9)
Accounts receivable, net of allowance for
doubtful accounts -- -- 2,345 -- --
Restricted cash -- -- -- -- --
Cash and cash equivalents - unrestricted -- -- -- -- --
------------- ------------- ------------- ------------- -------------
15,860 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 (17) 150 (8) 161 342
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
------------- ------------- ------------- ------------- -------------
Total liabilities (17) 150 (8) 161 342
------------- ------------- ------------- ------------- -------------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital 15,877 10,632 (4,683) 4,890 7,523
------------- ------------- ------------- ------------- -------------
15,860 10,782 (4,691) 5,051 7,865
============= ============= ============= ============= =============
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB MDV LIMITED
4D, LLC 2A, LLC 6L, 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 2,933 (7,924) 18,623 5,602
------------- ------------- ------------- -------------
2,933 (7,932) 18,648 5,698
============= ============= ============= =============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2003
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
5C, LLC 6J, LLC 1D, L.P. 7B, L.P. 7D, LLC
------------- ------------- ------------- ------------- -------------
ASSETS
Property and equipment -- 19,530 68,709 4,806 52,417
Accumulated depreciation -- (3,776) (12,036) (156) (9,771)
------------- ------------- ------------- ------------- -------------
-- 15,754 56,673 4,650 42,646
Assets held for sale -- -- -- -- --
Investments in affiliate -- -- -- -- --
Due from/to subsidiaries 5,088 7,636 19,511 (3,011) 25,422
Note receivable from subsidiaries -- -- -- -- --
Prepaid expenses and other assets -- 23 (209) 1 192
Accounts receivable, net of allowance for
doubtful accounts -- -- -- -- 1,326
Restricted cash -- -- -- -- --
Cash and cash equivalents - unrestricted -- -- -- -- --
------------- ------------- ------------- ------------- -------------
5,088 23,413 75,975 1,640 69,586
============= ============= ============= ============= =============
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses -- (216) (91) 1,080 4,169
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- (200)
Other liabilities -- -- -- -- --
------------- ------------- ------------- ------------- -------------
Total liabilities -- (216) (91) 1,080 3,969
------------- ------------- ------------- ------------- -------------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital 5,088 23,629 76,066 560 65,617
------------- ------------- ------------- ------------- -------------
5,088 23,413 75,975 1,640 69,586
============= ============= ============= ============= =============
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
7G, LLC 6B, LLC 4I, L.P. 5D, LLC
------------- ------------- ------------- -------------
ASSETS
Property and equipment 1,901 10,802 -- 42,105
Accumulated depreciation -- (2,188) -- (8,102)
------------- ------------- ------------- -------------
1,901 8,614 -- 34,003
Assets held for sale -- -- -- --
Investments in affiliate -- -- -- 51,368
Due from/to subsidiaries 365 3,137 1,609 (6,600)
Note receivable from subsidiaries -- -- -- --
Prepaid expenses and other assets -- (5) -- (17)
Accounts receivable, net of allowance for
doubtful accounts -- -- -- --
Restricted cash -- -- -- --
Cash and cash equivalents - unrestricted -- -- -- --
------------- ------------- ------------- -------------
2,266 11,746 1,609 78,754
============= ============= ============= =============
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- 24,000
Notes payable to MeriStar Hospitality Corporation -- -- -- --
Accounts payable and accrued expenses (6) (107) (61) 12
Accrued interest -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- --
Other liabilities -- -- -- --
------------- ------------- ------------- -------------
Total liabilities (6) (107) (61) 24,012
------------- ------------- ------------- -------------
Minority interests -- -- -- --
Redeemable OP units at redemption value -- -- -- --
Partners' capital 2,272 11,853 1,670 54,742
------------- ------------- ------------- -------------
2,266 11,746 1,609 78,754
============= ============= ============= =============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2003
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB MERISTAR SUB AGH MERISTAR SUB MERISTAR SUB
5H, LLC 7H, LLC PSS I, INC. 2D, LLC 4F, L.P.
------------- ------------- ------------- ------------- -------------
ASSETS
Property and equipment -- -- -- -- 32,615
Accumulated depreciation -- -- -- -- (5,809)
------------- ------------- ------------- ------------- -------------
-- -- -- -- 26,806
Assets held for sale -- -- -- -- --
Investments in affiliate -- -- -- -- --
Due from/to subsidiaries 36,579 9,567 25,579 (6,223) 5,237
Note receivable from subsidiaries -- -- -- -- --
Prepaid expenses and other assets 1 -- 1 -- 13
Accounts receivable, net of allowance for
doubtful accounts 46 43 -- 1,166 --
Restricted cash -- -- -- -- --
Cash and cash equivalents - unrestricted -- -- -- -- --
------------- ------------- ------------- ------------- -------------
36,626 9,610 25,580 (5,057) 32,056
============= ============= ============= ============= =============
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses (2) -- -- (1) 370
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
------------- ------------- ------------- ------------- -------------
Total liabilities (2) -- -- (1) 370
------------- ------------- ------------- ------------- -------------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital 36,628 9,610 25,580 (5,056) 31,686
------------- ------------- ------------- ------------- -------------
36,626 9,610 25,580 (5,057) 32,056
============= ============= ============= ============= =============
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB
5K, LLC 5M, LLC 1E, L.P.
------------- ------------- -------------
ASSETS
Property and equipment 28,386 22,056 --
Accumulated depreciation (5,206) (2,355) --
------------- ------------- -------------
23,180 19,701 --
Assets held for sale -- -- --
Investments in affiliate -- -- --
Due from/to subsidiaries (365) 7,852 24,172
Note receivable from subsidiaries -- -- --
Prepaid expenses and other assets (74) (48) (1)
Accounts receivable, net of allowance for
doubtful accounts -- -- 198
Restricted cash -- -- --
Cash and cash equivalents - unrestricted -- -- --
------------- ------------- -------------
22,741 27,505 24,369
============= ============= =============
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- --
Accounts payable and accrued expenses 3,028 -- 14
Accrued interest -- -- --
Due to Interstate Hotels & Resorts -- -- --
Other liabilities -- -- --
------------- ------------- -------------
Total liabilities 3,028 -- 14
------------- ------------- -------------
Minority interests -- -- --
Redeemable OP units at redemption value -- -- --
Partners' capital 19,713 27,505 24,355
------------- ------------- -------------
22,741 27,505 24,369
============= ============= =============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2003
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
5O, LLC 4B, L.P. 2C, LLC 4G, L.P. 3B, LLC
------------- ------------- ------------- ------------- -------------
ASSETS
Property and equipment 8,741 -- -- 9,086 --
Accumulated depreciation (1,144) -- -- -- --
------------- ------------- ------------- ------------- -------------
7,597 -- -- 9,086 --
Assets held for sale -- 7,158 9,415 -- --
Investments in affiliate -- -- -- -- --
Due from/to subsidiaries 3,077 (4,789) 5,673 8,806 9,336
Note receivable from subsidiaries -- -- -- -- --
Prepaid expenses and other assets (15) (4) (240) (89) (3)
Accounts receivable, net of allowance for
doubtful accounts -- -- -- -- --
Restricted cash -- -- -- -- --
Cash and cash equivalents - unrestricted -- -- -- -- --
------------- ------------- ------------- ------------- -------------
10,659 2,365 14,848 17,803 9,333
============= ============= ============= ============= =============
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- 19,731 -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses (8) 410 257 488 --
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
------------- ------------- ------------- ------------- -------------
Total liabilities (8) 410 19,988 488 --
------------- ------------- ------------- ------------- -------------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital 10,667 1,955 (5,140) 17,315 9,333
------------- ------------- ------------- ------------- -------------
10,659 2,365 14,848 17,803 9,333
============= ============= ============= ============= =============
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
5G, L.P. 5P, LLC 5J, LLC 5Q, LLC
------------- ------------- ------------- -------------
ASSETS
Property and equipment 164,273 39 110,406 16,737
Accumulated depreciation (30,502) (23) (16,816) (2,269)
------------- ------------- ------------- -------------
133,771 16 93,590 14,468
Assets held for sale -- -- -- --
Investments in affiliate -- -- -- --
Due from/to subsidiaries 42,679 3,088 21,963 4,637
Note receivable from subsidiaries -- -- -- --
Prepaid expenses and other assets (255) (4) (370) (53)
Accounts receivable, net of allowance for
doubtful accounts -- 38 -- --
Restricted cash -- -- -- --
Cash and cash equivalents - unrestricted -- -- -- --
------------- ------------- ------------- -------------
176,195 3,138 115,183 19,052
============= ============= ============= =============
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- --
Accounts payable and accrued expenses 775 -- 131 (189)
Accrued interest -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- --
Other liabilities -- -- -- --
------------- ------------- ------------- -------------
Total liabilities 775 -- 131 (189)
------------- ------------- ------------- -------------
Minority interests -- -- -- --
Redeemable OP units at redemption value -- -- -- --
Partners' capital 175,420 3,138 115,052 19,241
------------- ------------- ------------- -------------
176,195 3,138 115,183 19,052
============= ============= ============= =============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2003
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
GUARANTOR
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR HOTEL SUBSIDIARIES
5A, LLC 8D, LLC 4J, LLC LESSEE, INC. TOTAL
------------- ------------- ------------- ------------- -------------
ASSETS
Property and equipment 35,707 -- 38,463 3,146 1,055,333
Accumulated depreciation (10,686) -- (7,127) (3,284) (186,722)
------------- ------------- ------------- ------------- -------------
25,021 -- 31,336 (138) 868,611
Assets held for sale -- 9,097 -- -- 46,896
Investments in affiliate 4,627 -- -- 1,629 60,760
Due from/to subsidiaries 6,562 8,303 7,469 (189) 440,421
Note receivable from subsidiaries -- -- -- -- --
Prepaid expenses and other assets (29) 14 (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
------------- ------------- ------------- ------------- -------------
36,181 17,414 38,773 67,186 1,488,553
============= ============= ============= ============= =============
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt 23,609 -- -- 81,027 148,400
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses (195) (183) 81 45,862 59,691
Accrued interest -- -- -- 778 778
Due to Interstate Hotels & Resorts -- -- -- 9,688 9,488
Other liabilities -- -- -- 9,599 9,599
------------- ------------- ------------- ------------- -------------
Total liabilities 23,414 (183) 81 146,954 227,956
------------- ------------- ------------- ------------- -------------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital 12,767 17,597 38,692 (79,768) 1,260,597
------------- ------------- ------------- ------------- -------------
36,181 17,414 38,773 67,186 1,488,553
============= ============= ============= ============= =============
<Caption>
TOTAL
ELIMINATIONS CONSOLIDATED
------------- -------------
ASSETS
Property and equipment -- 2,481,752
Accumulated depreciation -- (446,032)
------------- -------------
-- 2,035,720
Assets held for sale -- 51,169
Investments in affiliate (2,262,601) 15,000
Due from/to subsidiaries -- --
Note receivable from subsidiaries (120,855) --
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
------------- -------------
(2,383,456) 2,487,030
============= =============
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt (120,855) 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
------------- -------------
Total liabilities (120,855) 1,792,311
------------- -------------
Minority interests -- 2,496
Redeemable OP units at redemption value -- 35,926
Partners' capital (2,262,601) 656,297
------------- -------------
(2,383,456) 2,487,030
============= =============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR NON-
HOSPITALITY GUARANTOR MERISTAR SUB AGH UPREIT, MERISTAR SUB
OP, L.P. SUBSIDIARIES 7C, LLC LLC 5N, LLC
------------- ------------- ------------- ------------- -------------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue 1,623 662 -- -- --
Participating lease revenue -- 33,509 -- -- 211
------------- ------------- ------------- ------------- -------------
Total revenue 1,623 34,171 -- -- 211
------------- ------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expenses -- -- -- -- --
Office rental, parking and other expenses -- 271 -- -- --
Other operating expenses:
General and administrative, hotel -- 23 -- -- --
General and administrative, corporate 3,185 -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 2,860 12,437 -- -- 35
Property taxes, insurance and other (356) 4,738 -- -- 24
Loss on asset impairments -- 310 -- -- --
------------- ------------- ------------- ------------- -------------
Operating expenses 5,689 17,779 -- -- 59
------------- ------------- ------------- ------------- -------------
Operating income (loss) (4,066) 16,392 -- -- 152
------------- ------------- ------------- ------------- -------------
Minority interest 20 -- -- -- --
Interest expense, net (18,895) (7,887) -- -- --
Loss on early extinguishments of debt (1,980) -- -- -- --
Equity in income from consolidated entities 12,880 -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income before income taxes and
discontinued operations (12,041) 8,505 -- -- 152
Income tax (expense) benefit (25) -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from continuing operations (12,066) 8,505 -- -- 152
Discontinued operations:
(Loss) income from discontinued operations
before income tax (30) 1,569 -- -- --
Income tax (expense) benefit 45 -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from discontinued operations 15 1,569 -- -- --
------------- ------------- ------------- ------------- -------------
Net (loss) income (12,051) 10,074 -- -- 152
============= ============= ============= ============= =============
<Caption>
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 -- 601 -- 373
------------- ------------- ------------- -------------
Total revenue -- 601 -- 373
------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operating expenses -- -- -- --
Office rental, parking and other expenses -- -- -- --
Other operating expenses:
General and administrative, hotel -- -- -- --
General and administrative, corporate -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization -- 165 -- 156
Property taxes, insurance and other -- 182 -- 26
Loss on asset impairments -- -- -- --
------------- ------------- ------------- -------------
Operating expenses -- 347 -- 182
------------- ------------- ------------- -------------
Operating income (loss) -- 254 -- 191
------------- ------------- ------------- -------------
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 -- 254 -- 191
Income tax (expense) benefit -- -- -- --
------------- ------------- ------------- -------------
(Loss) income from continuing operations -- 254 -- 191
Discontinued operations:
(Loss) income from discontinued operations
before income tax -- -- -- --
Income tax (expense) benefit -- -- -- --
------------- ------------- ------------- -------------
(Loss) income from discontinued operations -- -- -- --
------------- ------------- ------------- -------------
Net (loss) income -- 254 -- 191
============= ============= ============= =============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
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 -- -- 7 -- --
Participating lease revenue 1,863 304 371 305 253
------------- ------------- ------------- ------------- -------------
Total revenue 1,863 304 378 305 253
------------- ------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expenses -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses:
General and administrative, hotel -- -- -- -- --
General and administrative, corporate -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 602 341 149 73 39
Property taxes, insurance and other 250 169 22 32 36
Loss on asset impairments -- -- -- -- --
------------- ------------- ------------- ------------- -------------
Operating expenses 852 510 171 105 75
------------- ------------- ------------- ------------- -------------
Operating income (loss) 1,011 (206) 207 200 178
------------- ------------- ------------- ------------- -------------
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 1,011 (206) 207 200 178
Income tax (expense) benefit -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from continuing operations 1,011 (206) 207 200 178
Discontinued operations:
(Loss) income from discontinued operations
before income tax -- -- -- -- --
Income tax (expense) benefit -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from discontinued operations -- -- -- -- --
------------- ------------- ------------- ------------- -------------
Net (loss) income 1,011 (206) 207 200 178
============= ============= ============= ============= =============
<Caption>
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 -- -- 41 --
Participating lease revenue 432 -- 582 1,594
------------- ------------- ------------- -------------
Total revenue 432 -- 623 1,594
------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operating expenses -- -- -- --
Office rental, parking and other expenses -- -- -- --
Other operating expenses:
General and administrative, hotel -- -- -- --
General and administrative, corporate -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization 178 -- 136 415
Property taxes, insurance and other 93 -- 74 135
Loss on asset impairments -- -- -- --
------------- ------------- ------------- -------------
Operating expenses 271 -- 210 550
------------- ------------- ------------- -------------
Operating income (loss) 161 -- 413 1,044
------------- ------------- ------------- -------------
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 161 -- 413 1,044
Income tax (expense) benefit -- -- -- --
------------- ------------- ------------- -------------
(Loss) income from continuing operations 161 -- 413 1,044
Discontinued operations:
(Loss) income from discontinued operations
before income tax -- -- -- --
Income tax (expense) benefit -- -- -- --
------------- ------------- ------------- -------------
(Loss) income from discontinued operations -- -- -- --
------------- ------------- ------------- -------------
Net (loss) income 161 -- 413 1,044
============= ============= ============= =============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
4E, L.P. 1B, LLC 5F, L.P. 6G, LLC 8C, LLC
------------- ------------- ------------- ------------- -------------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue 2 (4) -- -- --
Participating lease revenue 360 519 737 1,084 --
------------- ------------- ------------- ------------- -------------
Total revenue 362 515 737 1,084 --
------------- ------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expenses -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses:
General and administrative, hotel -- -- -- -- --
General and administrative, corporate -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 73 121 195 153 --
Property taxes, insurance and other 194 8 89 92 --
Loss on asset impairments 981 -- -- -- --
------------- ------------- ------------- ------------- -------------
Operating expenses 1,248 129 284 245 --
------------- ------------- ------------- ------------- -------------
Operating income (loss) (886) 386 453 839 --
------------- ------------- ------------- ------------- -------------
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 (886) 386 453 839 --
Income tax (expense) benefit -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from continuing operations (886) 386 453 839 --
Discontinued operations:
(Loss) income from discontinued operations
before income tax -- -- -- -- 142
Income tax (expense) benefit -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from discontinued operations -- -- -- -- 142
------------- ------------- ------------- ------------- -------------
Net (loss) income (886) 386 453 839 142
============= ============= ============= ============= =============
<Caption>
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 -- -- 344 378
------------- ------------- ------------- -------------
Total revenue -- -- 344 378
------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operating expenses -- -- -- --
Office rental, parking and other expenses -- -- -- --
Other operating expenses:
General and administrative, hotel -- -- -- --
General and administrative, corporate -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization -- -- 161 190
Property taxes, insurance and other -- -- 48 61
Loss on asset impairments -- -- -- --
------------- ------------- ------------- -------------
Operating expenses -- -- 209 251
------------- ------------- ------------- -------------
Operating income (loss) -- -- 135 127
------------- ------------- ------------- -------------
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 -- -- 135 127
Income tax (expense) benefit -- -- -- --
------------- ------------- ------------- -------------
(Loss) income from continuing operations -- -- 135 127
Discontinued operations:
(Loss) income from discontinued operations
before income tax -- -- -- --
Income tax (expense) benefit -- -- -- --
------------- ------------- ------------- -------------
(Loss) income from discontinued operations -- -- -- --
------------- ------------- ------------- -------------
Net (loss) income -- -- 135 127
============= ============= ============= =============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB
MERISTAR SUB 7A JOINT MERISTAR SUB MERISTAR SUB MERISTAR SUB
1A, LLC VENTURE 2B, LLC 3A, LLC 4A, 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 hotel operating expenses -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses:
General and administrative, hotel -- -- -- -- --
General and administrative, corporate -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization -- -- -- -- --
Property taxes, insurance and other -- -- -- -- --
Loss on asset impairments -- -- -- -- --
------------- ------------- ------------- ------------- -------------
Operating expenses -- -- -- -- --
------------- ------------- ------------- ------------- -------------
Operating income (loss) -- -- -- -- --
------------- ------------- ------------- ------------- -------------
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 (expense) benefit -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from continuing operations -- -- -- -- --
Discontinued operations:
(Loss) income from discontinued operations
before income tax (149) (49) -- -- 1
Income tax (expense) benefit -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from discontinued operations (149) (49) -- -- 1
------------- ------------- ------------- ------------- -------------
Net (loss) income (149) (49) -- -- 1
============= ============= ============= ============= =============
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB MDV LIMITED
4D, LLC 2A, LLC 6L, LLC PARTNERSHIP
------------- ------------- ------------- -------------
Revenue:
Hotel operations:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operations -- -- -- --
Office rental, parking and other revenue -- -- -- --
Participating lease revenue -- -- -- 133
------------- ------------- ------------- -------------
Total revenue -- -- -- 133
------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operating expenses -- -- -- --
Office rental, parking and other expenses -- -- -- --
Other operating expenses:
General and administrative, hotel -- -- -- --
General and administrative, corporate -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization -- -- -- 47
Property taxes, insurance and other -- -- -- 34
Loss on asset impairments -- -- -- --
------------- ------------- ------------- -------------
Operating expenses -- -- -- 81
------------- ------------- ------------- -------------
Operating income (loss) -- -- -- 52
------------- ------------- ------------- -------------
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 -- -- -- 52
Income tax (expense) benefit -- -- -- --
------------- ------------- ------------- -------------
(Loss) income from continuing operations -- -- -- 52
Discontinued operations:
(Loss) income from discontinued operations
before income tax -- -- -- --
Income tax (expense) benefit -- -- -- --
------------- ------------- ------------- -------------
(Loss) income from discontinued operations -- -- -- --
------------- ------------- ------------- -------------
Net (loss) income -- -- -- 52
============= ============= ============= =============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
5C, LLC 6J, LLC 1D, L.P. 7B, L.P. 7D, LLC
------------- ------------- ------------- ------------- -------------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue -- -- 55 -- 274
Participating lease revenue -- 754 1,124 -- 1,474
------------- ------------- ------------- ------------- -------------
Total revenue -- 754 1,179 -- 1,748
------------- ------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expenses -- -- -- -- --
Office rental, parking and other expenses -- -- 35 -- 216
Other operating expenses:
General and administrative, hotel -- -- -- -- --
General and administrative, corporate -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization -- 140 567 -- 431
Property taxes, insurance and other -- 71 389 -- 647
Loss on asset impairments -- -- -- -- --
------------- ------------- ------------- ------------- -------------
Operating expenses -- 211 991 -- 1,294
------------- ------------- ------------- ------------- -------------
Operating income (loss) -- 543 188 -- 454
------------- ------------- ------------- ------------- -------------
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 -- 543 188 -- 454
Income tax (expense) benefit -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from continuing operations -- 543 188 -- 454
Discontinued operations:
(Loss) income from discontinued operations
before income tax -- -- -- (503) --
Income tax (expense) benefit -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from discontinued operations -- -- -- (503) --
------------- ------------- ------------- ------------- -------------
Net (loss) income -- 543 188 (503) 454
============= ============= ============= ============= =============
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
7G, LLC 6B, LLC 4I, L.P. 5D, LLC
------------- ------------- ------------- -------------
Revenue:
Hotel operations:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operations -- -- -- --
Office rental, parking and other revenue -- -- -- --
Participating lease revenue -- 356 -- 642
------------- ------------- ------------- -------------
Total revenue -- 356 -- 642
------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operating expenses -- -- -- --
Office rental, parking and other expenses -- -- -- --
Other operating expenses:
General and administrative, hotel -- -- -- --
General and administrative, corporate -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization -- 112 -- 369
Property taxes, insurance and other -- 54 -- 49
Loss on asset impairments -- -- -- --
------------- ------------- ------------- -------------
Operating expenses -- 166 -- 418
------------- ------------- ------------- -------------
Operating income (loss) -- 190 -- 224
------------- ------------- ------------- -------------
Minority interest -- -- -- --
Interest expense, net -- -- -- (340)
Loss on early extinguishments of debt -- -- -- --
Equity in income from consolidated entities -- -- -- --
------------- ------------- ------------- -------------
(Loss) income before income taxes and
discontinued operations -- 190 -- (116)
Income tax (expense) benefit -- -- -- --
------------- ------------- ------------- -------------
(Loss) income from continuing operations -- 190 -- (116)
Discontinued operations:
(Loss) income from discontinued operations
before income tax 56 -- -- --
Income tax (expense) benefit -- -- -- --
------------- ------------- ------------- -------------
(Loss) income from discontinued operations 56 -- -- --
------------- ------------- ------------- -------------
Net (loss) income 56 190 -- (116)
============= ============= ============= =============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB MERISTAR SUB AGH PSS I, MERISTAR SUB MERISTAR SUB
5H, LLC 7H, LLC INC. 2D, LLC 4F, L.P.
------------- ------------- ------------- ------------- -------------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue -- -- -- -- 6
Participating lease revenue -- -- -- -- 492
------------- ------------- ------------- ------------- -------------
Total revenue -- -- -- -- 498
------------- ------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expenses -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses:
General and administrative, hotel -- -- -- -- --
General and administrative, corporate -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization -- -- -- -- 275
Property taxes, insurance and other -- -- -- -- 98
Loss on asset impairments -- -- -- -- --
------------- ------------- ------------- ------------- -------------
Operating expenses -- -- -- -- 373
------------- ------------- ------------- ------------- -------------
Operating income (loss) -- -- -- -- 125
------------- ------------- ------------- ------------- -------------
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 -- -- -- -- 125
Income tax (expense) benefit -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from continuing operations -- -- -- -- 125
Discontinued operations:
(Loss) income from discontinued operations
before income tax -- -- -- -- --
Income tax (expense) benefit -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from discontinued operations -- -- -- -- --
------------- ------------- ------------- ------------- -------------
Net (loss) income -- -- -- -- 125
============= ============= ============= ============= =============
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
5K, LLC 5M, LLC 1E, L.P. 5O, LLC
------------- ------------- ------------- -------------
Revenue:
Hotel operations:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operations -- -- -- --
Office rental, parking and other revenue -- -- -- --
Participating lease revenue 577 422 -- 210
------------- ------------- ------------- -------------
Total revenue 577 422 -- 210
------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operating expenses -- -- -- --
Office rental, parking and other expenses -- -- -- --
Other operating expenses:
General and administrative, hotel -- -- -- --
General and administrative, corporate -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization 324 120 -- 57
Property taxes, insurance and other 88 64 -- 25
Loss on asset impairments -- -- -- --
------------- ------------- ------------- -------------
Operating expenses 412 184 -- 82
------------- ------------- ------------- -------------
Operating income (loss) 165 238 -- 128
------------- ------------- ------------- -------------
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 165 238 -- 128
Income tax (expense) benefit -- -- -- --
------------- ------------- ------------- -------------
(Loss) income from continuing operations 165 238 -- 128
Discontinued operations:
(Loss) income from discontinued operations
before income tax -- -- -- --
Income tax (expense) benefit -- -- -- --
------------- ------------- ------------- -------------
(Loss) income from discontinued operations -- -- -- --
------------- ------------- ------------- -------------
Net (loss) income 165 238 -- 128
============= ============= ============= =============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
4B, L.P. 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 -- -- -- -- 7
Participating lease revenue -- -- 489 -- 2,444
------------- ------------- ------------- ------------- -------------
Total revenue -- -- 489 -- 2,451
------------- ------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expenses -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses:
General and administrative, hotel -- -- -- -- --
General and administrative, corporate -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization -- -- 111 -- 1,578
Property taxes, insurance and other -- -- 122 -- 393
Loss on asset impairments -- -- -- -- --
------------- ------------- ------------- ------------- -------------
Operating expenses -- -- 233 -- 1,971
------------- ------------- ------------- ------------- -------------
Operating income (loss) -- -- 256 -- 480
------------- ------------- ------------- ------------- -------------
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 -- -- 256 -- 480
Income tax (expense) benefit -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from continuing operations -- -- 256 -- 480
Discontinued operations:
(Loss) income from discontinued operations
before income tax (1) (667) -- -- --
Income tax (expense) benefit -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from discontinued operations (1) (667) -- -- --
------------- ------------- ------------- ------------- -------------
Net (loss) income (1) (667) 256 -- 480
============= ============= ============= ============= =============
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
5P, LLC 5J, LLC 5Q, LLC 5A, LLC
------------- ------------- ------------- -------------
Revenue:
Hotel operations:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operations -- -- -- --
Office rental, parking and other revenue -- -- -- 24
Participating lease revenue 321 2,611 516 1,484
------------- ------------- ------------- -------------
Total revenue 321 2,611 516 1,508
------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operating expenses -- -- -- --
Office rental, parking and other expenses -- -- -- --
Other operating expenses:
General and administrative, hotel -- -- -- --
General and administrative, corporate -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization 1 1,395 154 263
Property taxes, insurance and other 1 498 97 201
Loss on asset impairments -- -- -- --
------------- ------------- ------------- -------------
Operating expenses 2 1,893 251 464
------------- ------------- ------------- -------------
Operating income (loss) 319 718 265 1,044
------------- ------------- ------------- -------------
Minority interest -- -- -- --
Interest expense, net -- -- -- (709)
Loss on early extinguishments of debt -- -- -- --
Equity in income from consolidated entities -- -- -- --
(Loss) income before income taxes and
------------- ------------- ------------- -------------
discontinued operations 319 718 265 335
Income tax (expense) benefit -- -- -- --
------------- ------------- ------------- -------------
(Loss) income from continuing operations 319 718 265 335
Discontinued operations:
(Loss) income from discontinued operations
before income tax -- -- -- --
Income tax (expense) benefit -- -- -- --
------------- ------------- ------------- -------------
(Loss) income from discontinued operations -- -- -- --
------------- ------------- ------------- -------------
Net (loss) income 319 718 265 335
============= ============= ============= =============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR MERISTAR GUARANTOR
MERISTAR SUB MERISTAR SUB PENTAGON HOTEL LESSEE, SUBSIDIARIES
8D, LLC 4J, LLC CITY, LLC INC. TOTAL
------------- ------------- ------------- ------------- -------------
Revenue:
Hotel operations:
Rooms -- -- -- 143,156 143,156
Food and beverage -- -- -- 59,442 59,442
Other hotel operations -- -- -- 17,362 17,362
Office rental, parking and other revenue -- 72 -- 160 644
Participating lease revenue -- 699 1,406 -- 26,465
------------- ------------- ------------- ------------- -------------
Total revenue -- 771 1,406 220,120 247,069
------------- ------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- 35,046 35,046
Food and beverage -- -- -- 41,739 41,739
Other hotel operating expenses -- -- -- 10,864 10,864
Office rental, parking and other expenses -- 148 -- -- 399
Other operating expenses:
General and administrative, hotel -- -- 4 31,983 31,987
General and administrative, corporate -- -- -- 288 288
Property operating costs -- -- -- 31,909 31,909
Depreciation and amortization -- 317 355 42 9,840
Property taxes, insurance and other -- 81 177 66,974 71,598
Loss on asset impairments -- -- -- -- 981
------------- ------------- ------------- ------------- -------------
Operating expenses -- 546 536 218,845 234,651
------------- ------------- ------------- ------------- -------------
Operating income (loss) -- 225 870 1,275 12,418
------------- ------------- ------------- ------------- -------------
Minority interest -- -- -- -- --
Interest expense, net -- -- (9) (1,884) (2,942)
Loss on early extinguishments of debt -- -- -- -- --
Equity in income from consolidated entities -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income before income taxes and
discontinued operations -- 225 861 (609) 9,476
Income tax (expense) benefit -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from continuing operations -- 225 861 (609) 9,476
Discontinued operations:
(Loss) income from discontinued operations
before income tax -- -- -- (5,500) (6,670)
Income tax (expense) benefit -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from discontinued operations -- -- -- (5,500) (6,670)
------------- ------------- ------------- ------------- -------------
Net (loss) income -- 225 861 (6,109) 2,806
============= ============= ============= ============= =============
<Caption>
TOTAL
ELIMINATIONS CONSOLIDATED
------------- -------------
Revenue:
Hotel operations:
Rooms -- 143,156
Food and beverage -- 59,442
Other hotel operations -- 17,362
Office rental, parking and other revenue -- 2,929
Participating lease revenue (59,974) --
------------- -------------
Total revenue (59,974) 222,889
------------- -------------
Hotel operating expenses:
Rooms -- 35,046
Food and beverage -- 41,739
Other hotel operating expenses -- 10,864
Office rental, parking and other expenses -- 670
Other operating expenses:
General and administrative, hotel -- 32,010
General and administrative, corporate -- 3,473
Property operating costs -- 31,909
Depreciation and amortization -- 25,137
Property taxes, insurance and other (59,974) 16,006
Loss on asset impairments -- 1,291
------------- -------------
Operating expenses (59,974) 198,145
------------- -------------
Operating income (loss) -- 24,744
------------- -------------
Minority interest -- 20
Interest expense, net -- (29,724)
Loss on early extinguishments of debt -- (1,980)
Equity in income from consolidated entities (12,880) --
------------- -------------
(Loss) income before income taxes and -- --
discontinued operations (12,880) (6,940)
Income tax (expense) benefit -- (25)
--
------------- -------------
(Loss) income from continuing operations (12,880) (6,965)
Discontinued operations:
(Loss) income from discontinued operations
before income tax -- (5,131)
Income tax (expense) benefit -- 45
------------- -------------
(Loss) income from discontinued operations -- (5,086)
--
------------- -------------
Net (loss) income (12,880) (12,051)
============= =============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR
HOSPITALITY OP, NON-GUARANTOR MERISTAR SUB 7C, AGH UPREIT, MERISTAR SUB 5N,
L.P. SUBSIDIARIES LLC LLC LLC
--------------- ------------- ---------------- ----------- ----------------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenues 2,158 1,716 -- -- --
Participating lease revenue -- 26,838 -- -- 234
--------------- ------------- ---------------- ----------- ----------------
Total revenue 2,158 28,554 -- -- 234
--------------- ------------- ---------------- ----------- ----------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expenses -- -- -- -- --
Office rental, parking and other expenses -- 525 -- -- --
Other operating expenses:
General and administrative, hotel -- (260) -- -- --
General and administrative, corporate 3,185 -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 2,858 11,102 -- -- 35
Property taxes, insurance and other 1,337 4,828 -- -- 25
Loss on asset impairments -- 33,644 -- -- --
--------------- ------------- ---------------- ----------- ----------------
Operating expenses 7,380 49,839 -- -- 60
--------------- ------------- ---------------- ----------- ----------------
Operating (loss) income (5,222) (21,285) -- -- 174
Minority interest 5 -- -- -- --
Interest expense, net (26,212) (6,792) -- -- --
Equity in loss from consolidated entities (186,138) -- -- -- --
--------------- ------------- ---------------- ----------- ----------------
(Loss) income before income taxes and
discontinued operations (217,567) (28,077) -- -- 174
Income tax expense (10) -- -- -- --
--------------- ------------- ---------------- ----------- ----------------
(Loss) income from continuing operations (217,577) (28,077) -- -- 174
Discontinued operations:
(Loss) income from discontinued operations
before income tax 927 (80,881) -- -- --
Income tax expense (9) -- -- -- --
--------------- ------------- ---------------- ----------- ----------------
(Loss) income on discontinued operations 918 (80,881) -- -- --
--------------- ------------- ---------------- ----------- ----------------
Net (loss) income (216,659) (108,958) -- -- 174
=============== ============= ================ =========== ================
<Caption>
MERISTAR SUB 8A, MERISTAR SUB 8F, MERISTAR SUB 8G, MERISTAR SUB 6H,
LLC L.P. LLC L.P.
---------------- ---------------- ---------------- ----------------
Revenue:
Hotel operations:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operations -- -- -- --
Office rental, parking and other revenues -- -- -- --
Participating lease revenue -- 586 -- 313
---------------- ---------------- ---------------- ----------------
Total revenue -- 586 -- 313
---------------- ---------------- ---------------- ----------------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operating expenses -- -- -- --
Office rental, parking and other expenses -- -- -- --
Other operating expenses:
General and administrative, hotel -- -- -- --
General and administrative, corporate -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization -- 146 -- 144
Property taxes, insurance and other -- 99 -- 23
Loss on asset impairments -- -- -- --
---------------- ---------------- ---------------- ----------------
Operating expenses -- 245 -- 167
---------------- ---------------- ---------------- ----------------
Operating (loss) income -- 341 -- 146
Minority interest -- -- -- --
Interest expense, net -- -- -- --
Equity in loss from consolidated entities -- -- -- --
---------------- ---------------- ---------------- ----------------
(Loss) income before income taxes and
discontinued operations -- 341 -- 146
Income tax expense -- -- -- --
---------------- ---------------- ---------------- ----------------
(Loss) income from continuing operations -- 341 -- 146
Discontinued operations:
(Loss) income from discontinued operations
before income tax -- -- -- --
Income tax expense -- -- -- --
---------------- ---------------- ---------------- ----------------
(Loss) income on discontinued operations -- -- -- --
---------------- ---------------- ---------------- ----------------
Net (loss) income -- 341 -- 146
================ ================ ================ ================
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 8B, SUB 1C, SUB 8E, SUB 7F, SUB 5L,
LLC L.P. LLC LLC LLC
------------- ------------- ------------- ------------- -------------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenues -- -- 5 -- --
Participating lease revenue 1,818 308 362 226 228
------------- ------------- ------------- ------------- -------------
Total revenue 1,818 308 367 226 228
------------- ------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expenses -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses:
General and administrative, hotel -- -- -- -- --
General and administrative, corporate -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 610 254 145 114 35
Property taxes, insurance and other 346 132 54 41 37
Loss on asset impairments -- -- -- 1,637 --
------------- ------------- ------------- ------------- -------------
Operating expenses 956 386 199 1,792 72
------------- ------------- ------------- ------------- -------------
Operating (loss) income 862 (78) 168 (1,566) 156
Minority interest -- -- -- -- --
Interest expense, net -- -- -- -- --
Equity in loss from consolidated entities -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income before income taxes and
discontinued operations 862 (78) 168 (1,566) 156
Income tax expense -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from continuing operations 862 (78) 168 (1,566) 156
Discontinued operations:
(Loss) income from discontinued operations
before income tax -- -- -- -- --
Income tax expense -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income on discontinued operations -- -- -- -- --
------------- ------------- ------------- ------------- -------------
Net (loss) income 862 (78) 168 (1,566) 156
============= ============= ============= ============= =============
<Caption>
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 3C, SUB 5R, SUB 6D, SUB 6E,
LLC LLC LLC LLC
------------- ------------- ------------- -------------
Revenue:
Hotel operations:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operations -- -- -- --
Office rental, parking and other revenues -- -- 4 --
Participating lease revenue 375 -- 531 1,483
------------- ------------- ------------- -------------
Total revenue 375 -- 535 1,483
------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operating expenses -- -- -- --
Office rental, parking and other expenses -- -- -- --
Other operating expenses:
General and administrative, hotel -- -- -- --
General and administrative, corporate -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization 177 -- 136 408
Property taxes, insurance and other 99 -- 80 161
Loss on asset impairments -- -- -- --
------------- ------------- ------------- -------------
Operating expenses 276 -- 216 569
------------- ------------- ------------- -------------
Operating (loss) income 99 -- 319 914
Minority interest -- -- -- --
Interest expense, net -- -- -- --
Equity in loss from consolidated entities -- -- -- --
------------- ------------- ------------- -------------
(Loss) income before income taxes and
discontinued operations 99 -- 319 914
Income tax expense -- -- -- --
------------- ------------- ------------- -------------
(Loss) income from continuing operations 99 -- 319 914
Discontinued operations:
(Loss) income from discontinued operations
before income tax -- -- -- --
Income tax expense -- -- -- --
------------- ------------- ------------- -------------
(Loss) income on discontinued operations -- -- -- --
------------- ------------- ------------- -------------
Net (loss) income 99 -- 319 914
============= ============= ============= =============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 4E, SUB 1B, SUB 5F, SUB 6G, SUB 8C,
L.P. LLC L.P. LLC LLC
------------- ------------- ------------- ------------- -------------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenues 2 1 -- -- --
Participating lease revenue 352 684 761 732 --
------------- ------------- ------------- ------------- -------------
Total revenue 354 685 761 732 --
------------- ------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expenses -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses:
General and administrative, hotel -- -- -- -- --
General and administrative, corporate -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 210 141 267 215 --
Property taxes, insurance and other 112 48 99 101 --
Loss on asset impairments 14,611 -- 7,231 -- --
------------- ------------- ------------- ------------- -------------
Operating expenses 14,933 189 7,597 316 --
Operating (loss) income (14,579) 496 (6,836) 416 --
------------- ------------- ------------- ------------- -------------
Minority interest -- -- -- -- --
Interest expense, net -- -- -- -- --
Equity in loss from consolidated entities -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income before income taxes and
discontinued operations (14,579) 496 (6,836) 416 --
Income tax expense -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from continuing operations (14,579) 496 (6,836) 416 --
Discontinued operations:
(Loss) income from discontinued operations
before income tax -- -- -- -- (935)
Income tax expense -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income on discontinued operations -- -- -- -- (935)
------------- ------------- ------------- ------------- -------------
Net (loss) income (14,579) 496 (6,836) 416 (935)
============= ============= ============= ============= =============
<Caption>
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 4C, SUB 4H, SUB 7E, SUB 3D,
L.P. L.P. LLC LLC
------------- ------------- ------------- -------------
Revenue:
Hotel operations:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operations -- -- -- --
Office rental, parking and other revenues -- -- -- 1
Participating lease revenue -- -- 337 352
------------- ------------- ------------- -------------
Total revenue -- -- 337 353
------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operating expenses -- -- -- --
Office rental, parking and other expenses -- -- -- --
Other operating expenses:
General and administrative, hotel -- -- -- --
General and administrative, corporate -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization -- -- 154 195
Property taxes, insurance and other -- -- 50 58
Loss on asset impairments -- -- -- --
------------- ------------- ------------- -------------
Operating expenses -- -- 204 253
------------- ------------- ------------- -------------
Operating (loss) income -- -- 133 100
Minority interest -- -- -- --
Interest expense, net -- -- -- --
Equity in loss from consolidated entities -- -- -- --
------------- ------------- ------------- -------------
(Loss) income before income taxes and
discontinued operations -- -- 133 100
Income tax expense -- -- -- --
------------- ------------- ------------- -------------
(Loss) income from continuing operations -- -- 133 100
Discontinued operations:
(Loss) income from discontinued operations
before income tax -- (5,285) -- --
Income tax expense -- -- -- --
------------- ------------- ------------- -------------
(Loss) income on discontinued operations -- (5,285) -- --
------------- ------------- ------------- -------------
Net (loss) income -- (5,285) 133 100
============= ============= ============= =============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR
MERISTAR MERISTAR SUB 7A MERISTAR MERISTAR
SUB 1A, SUB 5E, JOINT SUB 6K, SUB 2B,
LLC LLC VENTURE LLC LLC
------------- ------------- ------------- ------------- -------------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenues -- -- -- -- --
Participating lease revenue -- 1,698 -- 1,088 --
------------- ------------- ------------- ------------- -------------
Total revenue -- 1,698 -- 1,088 --
------------- ------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expenses -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses:
General and administrative, hotel -- -- -- -- --
General and administrative, corporate -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization -- 478 -- 184 --
Property taxes, insurance and other -- 100 -- 96 --
Loss on asset impairments -- -- -- -- --
------------- ------------- ------------- ------------- -------------
Operating expenses -- 578 -- 280 --
------------- ------------- ------------- ------------- -------------
Operating (loss) income -- 1,120 -- 808 --
Minority interest -- -- -- -- --
Interest expense, net -- -- -- -- --
Equity in loss from consolidated entities -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income before income taxes and
discontinued operations -- 1,120 -- 808 --
Income tax expense -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from continuing operations -- 1,120 -- 808 --
Discontinued operations:
(Loss) income from discontinued operations
before income tax 229 -- (5,316) -- (1,136)
Income tax expense -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income on discontinued operations 229 -- (5,316) -- (1,136)
------------- ------------- ------------- ------------- -------------
Net (loss) income 229 1,120 (5,316) 808 (1,136)
============= ============= ============= ============= =============
<Caption>
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 3A, SUB 4A, SUB 4D, SUB 2A,
LLC LLC LLC LLC
------------- ------------- ------------- -------------
Revenue:
Hotel operations:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operations -- -- -- --
Office rental, parking and other revenues -- -- -- --
Participating lease revenue -- -- -- --
------------- ------------- ------------- -------------
Total revenue -- -- -- --
------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operating expenses -- -- -- --
Office rental, parking and other expenses -- -- -- --
Other operating expenses:
General and administrative, hotel -- -- -- --
General and administrative, corporate -- -- -- --
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 loss from consolidated entities -- -- -- --
------------- ------------- ------------- -------------
(Loss) income before income taxes and
discontinued operations -- -- -- --
Income tax expense -- -- -- --
------------- ------------- ------------- -------------
(Loss) income from continuing operations -- -- -- --
Discontinued operations:
(Loss) income from discontinued operations
before income tax (1,443) (1,292) 30 (1,044)
Income tax expense -- -- -- --
------------- ------------- ------------- -------------
(Loss) income on discontinued operations (1,443) (1,292) 30 (1,044)
------------- ------------- ------------- -------------
Net (loss) income (1,443) (1,292) 30 (1,044)
============= ============= ============= =============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR MDV MERISTAR MERISTAR MERISTAR
SUB 6L, LIMITED SUB 5C, SUB 6J, SUB 1D,
LLC PARTNERSHIP LLC LLC L.P.
------------- ------------- ------------- ------------- -------------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenues -- -- -- -- (73)
Participating lease revenue -- 127 -- 589 1,241
------------- ------------- ------------- ------------- -------------
Total revenue -- 127 -- 589 1,168
------------- ------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expenses -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- 5
Other operating expenses:
General and administrative, hotel -- -- -- -- 25
General and administrative, corporate -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization -- 34 -- 144 570
Property taxes, insurance and other -- 36 -- 65 448
Loss on asset impairments -- -- -- -- --
------------- ------------- ------------- ------------- -------------
Operating expenses -- 70 -- 209 1,048
------------- ------------- ------------- ------------- -------------
Operating (loss) income -- 57 -- 380 120
Minority interest -- -- -- -- --
Interest expense, net -- -- -- 1 --
Equity in loss from consolidated entities -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income before income taxes and
discontinued operations -- 57 -- 381 120
Income tax expense -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from continuing operations -- 57 -- 381 120
Discontinued operations:
(Loss) income from discontinued operations
before income tax (13,159) -- (1,191) -- --
Income tax expense -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income on discontinued operations (13,159) -- (1,191) -- --
------------- ------------- ------------- ------------- -------------
Net (loss) income (13,159) 57 (1,191) 381 120
============= ============= ============= ============= =============
<Caption>
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 7B, SUB 7D, SUB 7G, SUB 6B,
L.P. LLC LLC LLC
------------- ------------- ------------- -------------
Revenue:
Hotel operations:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operations -- -- -- --
Office rental, parking and other revenues -- (358) -- --
Participating lease revenue -- 2,240 -- 325
------------- ------------- ------------- -------------
Total revenue -- 1,882 -- 325
------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operating expenses -- -- -- --
Office rental, parking and other expenses -- (11) -- --
Other operating expenses:
General and administrative, hotel -- 177 -- --
General and administrative, corporate -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization -- 441 -- 116
Property taxes, insurance and other -- 564 -- 50
Loss on asset impairments -- -- -- --
------------- ------------- ------------- -------------
Operating expenses -- 1,171 -- 166
------------- ------------- ------------- -------------
Operating (loss) income -- 711 -- 159
Minority interest -- -- -- --
Interest expense, net -- -- -- --
Equity in loss from consolidated entities -- -- -- --
------------- ------------- ------------- -------------
(Loss) income before income taxes and
discontinued operations -- 711 -- 159
Income tax expense -- -- -- --
------------- ------------- ------------- -------------
(Loss) income from continuing operations -- 711 -- 159
Discontinued operations:
(Loss) income from discontinued operations
before income tax (2,335) -- (901) --
Income tax expense -- -- -- --
------------- ------------- ------------- -------------
(Loss) income on discontinued operations (2,335) -- (901) --
------------- ------------- ------------- -------------
Net (loss) income (2,335) 711 (901) 159
============= ============= ============= =============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 4I, SUB 5D, SUB 5H, SUB 7H, AGH PSSI,
L.P. LLC LLC LLC INC.
------------- ------------- ------------- ------------- -------------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenues -- -- -- -- --
Participating lease revenue -- 549 -- -- --
------------- ------------- ------------- ------------- -------------
Total revenue -- 549 -- -- --
------------- ------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expenses -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses:
General and administrative, hotel -- -- -- -- --
General and administrative, corporate -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization -- 365 -- -- --
Property taxes, insurance and other -- 54 -- -- --
Loss on asset impairments -- -- -- -- --
------------- ------------- ------------- ------------- -------------
Operating expenses -- 419 -- -- --
------------- ------------- ------------- ------------- -------------
Operating (loss) income -- 130 -- -- --
Minority interest -- -- -- -- --
Interest expense, net -- (316) -- -- --
Equity in loss from consolidated entities -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income before income taxes and
discontinued operations -- (186) -- -- --
Income tax expense -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from continuing operations -- (186) -- -- --
Discontinued operations:
(Loss) income from discontinued operations
before income tax (1,373) -- (17,930) (1,232) (1,346)
Income tax expense -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income on discontinued operations (1,373) -- (17,930) (1,232) (1,346)
------------- ------------- ------------- ------------- -------------
Net (loss) income (1,373) (186) (17,930) (1,232) (1,346)
============= ============= ============= ============= =============
<Caption>
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 revenues -- 4 -- --
Participating lease revenue -- 455 632 429
------------- ------------- ------------- -------------
Total revenue -- 459 632 429
------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operating expenses -- -- -- --
Office rental, parking and other expenses -- -- -- --
Other operating expenses:
General and administrative, hotel -- -- -- --
General and administrative, corporate -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization -- 277 322 118
Property taxes, insurance and other -- 87 93 65
Loss on asset impairments -- -- -- --
------------- ------------- ------------- -------------
Operating expenses -- 364 415 183
------------- ------------- ------------- -------------
Operating (loss) income -- 95 217 246
Minority interest -- -- -- --
Interest expense, net -- -- -- --
Equity in loss from consolidated entities -- -- -- --
------------- ------------- ------------- -------------
(Loss) income before income taxes and
discontinued operations -- 95 217 246
Income tax expense -- -- -- --
------------- ------------- ------------- -------------
(Loss) income from continuing operations -- 95 217 246
Discontinued operations:
(Loss) income from discontinued operations
before income tax (1,087) -- -- --
Income tax expense -- -- -- --
------------- ------------- ------------- -------------
(Loss) income on discontinued operations (1,087) -- -- --
------------- ------------- ------------- -------------
Net (loss) income (1,087) 95 217 246
============= ============= ============= =============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 1E, SUB 5O, SUB 6M SUB 4B, SUB 6C,
L.P. LLC COMPANY L.P. LLC
------------- ------------- ------------- ------------- -------------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenues -- -- -- -- 1
Participating lease revenue -- 200 1,160 -- 753
------------- ------------- ------------- ------------- -------------
Total revenue -- 200 1,160 -- 754
------------- ------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expenses -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses:
General and administrative, hotel -- -- -- -- --
General and administrative, corporate -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization -- 57 308 -- 193
Property taxes, insurance and other -- 26 82 -- 56
Loss on asset impairments -- -- -- -- --
------------- ------------- ------------- ------------- -------------
Operating expenses -- 83 390 -- 249
------------- ------------- ------------- ------------- -------------
Operating (loss) income -- 117 770 -- 505
Minority interest -- -- -- -- --
Interest expense, net -- -- -- -- --
Equity in loss from consolidated entities -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income before income taxes and
discontinued operations -- 117 770 -- 505
Income tax expense -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from continuing operations -- 117 770 -- 505
Discontinued operations:
(Loss) income from discontinued operations
before income tax 300 -- -- (416) --
Income tax expense -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income on discontinued operations 300 -- -- (416) --
------------- ------------- ------------- ------------- -------------
Net (loss) income 300 117 770 (416) 505
============= ============= ============= ============= =============
<Caption>
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 2C, SUB 4G, SUB 3B, SUB 5G,
LLC L.P. LLC L.P.
------------- ------------- ------------- -------------
Revenue:
Hotel operations:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operations -- -- -- --
Office rental, parking and other revenues -- -- -- 16
Participating lease revenue -- 498 -- 2,267
------------- ------------- ------------- -------------
Total revenue -- 498 -- 2,283
------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operating expenses -- -- -- --
Office rental, parking and other expenses -- -- -- --
Other operating expenses:
General and administrative, hotel -- -- -- --
General and administrative, corporate -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization -- 223 -- 1,573
Property taxes, insurance and other -- 165 -- 474
Loss on asset impairments -- 8,000 -- --
------------- ------------- ------------- -------------
Operating expenses -- 8,388 -- 2,047
------------- ------------- ------------- -------------
Operating (loss) income -- (7,890) -- 236
Minority interest -- -- -- --
Interest expense, net -- -- -- --
Equity in loss from consolidated entities -- -- -- --
------------- ------------- ------------- -------------
(Loss) income before income taxes and
discontinued operations -- (7,890) -- 236
Income tax expense -- -- -- --
------------- ------------- ------------- -------------
(Loss) income from continuing operations -- (7,890) -- 236
Discontinued operations:
(Loss) income from discontinued operations
before income tax (2,346) -- (392) --
Income tax expense -- -- -- --
------------- ------------- ------------- -------------
(Loss) income on discontinued operations (2,346) -- (392) --
------------- ------------- ------------- -------------
Net (loss) income (2,346) (7,890) (392) 236
============= ============= ============= =============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5P, SUB 5J, SUB 5Q, SUB 5A, SUB 8D,
LLC LLC LLC LLC LLC
------------- ------------- ------------- ------------- --------------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenues -- -- -- 27 --
Participating lease revenue 505 2,676 585 1,288 --
------------- ------------- ------------- ------------- --------------
Total revenue 505 2,676 585 1,315 --
------------- ------------- ------------- ------------- --------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expenses -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses:
General and administrative, hotel -- -- -- -- --
General and administrative, corporate -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 1 870 140 385 --
Property taxes, insurance and other 1 369 55 178 --
Loss on asset impairments -- -- -- -- --
------------- ------------- ------------- ------------- --------------
Operating expenses 2 1,239 195 563 --
------------- ------------- ------------- ------------- --------------
Operating (loss) income 503 1,437 390 752 --
Minority interest -- -- -- -- --
Interest expense, net -- -- -- (709) --
Equity in loss from consolidated entities -- -- -- -- --
------------- ------------- ------------- ------------- --------------
(Loss) income before income taxes and
discontinued operations 503 1,437 390 43 --
Income tax expense -- -- -- -- --
------------- ------------- ------------- ------------- --------------
(Loss) income from continuing operations 503 1,437 390 43 --
Discontinued operations:
(Loss) income from discontinued operations
before income tax -- -- -- -- 166
Income tax expense -- -- -- -- --
------------- ------------- ------------- ------------- --------------
(Loss) income on discontinued operations -- -- -- -- 166
------------- ------------- ------------- ------------- --------------
Net (loss) income 503 1,437 390 43 166
============= ============= ============= ============= ==============
<Caption>
MERISTAR MERISTAR GUARANTOR
SUB 4J, HOTEL SUBSIDIARIES
LLC LESSEE, INC. TOTAL ELIMINATIONS
------------- ------------- ------------- -------------
Revenue:
Hotel operations:
Rooms -- 136,911 136,911 --
Food and beverage -- 56,404 56,404 --
Other hotel operations -- 19,201 19,201 --
Office rental, parking and other revenues (51) -- (421) --
Participating lease revenue 905 -- 29,892 (56,730)
------------- ------------- ------------- -------------
Total revenue 854 212,516 241,987 (56,730)
------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- 32,467 32,467 --
Food and beverage -- 38,789 38,789 --
Other hotel operating expenses -- 10,936 10,936 --
Office rental, parking and other expenses 64 -- 58 --
Other operating expenses:
General and administrative, hotel 48 31,874 32,124 --
General and administrative, corporate -- (53) (53) --
Property operating costs -- 30,620 30,620 --
Depreciation and amortization 317 491 10,993 --
Property taxes, insurance and other 79 63,405 68,113 (56,730)
Loss on asset impairments -- -- 31,479 --
------------- ------------- ------------- -------------
Operating expenses 508 208,529 255,526 (56,730)
------------- ------------- ------------- -------------
Operating (loss) income 346 3,987 (13,539) --
Minority interest -- -- -- --
Interest expense, net -- (555) (1,579) --
Equity in loss from consolidated entities -- -- -- 186,138
------------- ------------- ------------- -------------
(Loss) income before income taxes and
discontinued operations 346 3,432 (15,118) 186,138
Income tax expense -- -- -- --
------------- ------------- ------------- -------------
(Loss) income from continuing operations 346 3,432 (15,118) 186,138
Discontinued operations:
(Loss) income from discontinued operations
before income tax -- (2,628) (62,062) --
Income tax expense -- -- -- --
------------- ------------- ------------- -------------
(Loss) income on discontinued operations -- (2,628) (62,062) --
------------- ------------- ------------- -------------
Net (loss) income 346 804 (77,180) 186,138
============= ============= ============= =============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
TOTAL
CONSOLIDATED
-------------
Revenue:
Hotel operations:
Rooms 136,911
Food and beverage 56,404
Other hotel operations 19,201
Office rental, parking and other revenues 3,453
Participating lease revenue --
-------------
Total revenue 215,969
-------------
Hotel operating expenses:
Rooms 32,467
Food and beverage 38,789
Other hotel operating expenses 10,936
Office rental, parking and other expenses 583
Other operating expenses:
General and administrative, hotel 31,864
General and administrative, corporate 3,132
Property operating costs 30,620
Depreciation and amortization 24,953
Property taxes, insurance and other 17,548
Loss on asset impairments 65,123
-------------
Operating expenses 256,015
-------------
Operating (loss) income (40,046)
Minority interest 5
Interest expense, net (34,583)
Equity in loss from consolidated entities --
-------------
(Loss) income before income taxes and
discontinued operations (74,624)
Income tax expense (10)
-------------
(Loss) income from continuing operations (74,634)
Discontinued operations: --
(Loss) income from discontinued operations
before income tax (142,016)
Income tax expense (9)
-------------
(Loss) income on discontinued operations (142,025)
-------------
Net (loss) income (216,659)
=============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR NON-
HOSPITALITY GUARANTOR MERISTAR SUB AGH UPREIT, MERISTAR SUB
OP, L.P. SUBSIDIARIES 7C, LLC LLC 5N, LLC
------------- ------------- ------------- ------------- -------------
Revenue:
Hotel operations: -- -- -- -- --
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue 3,227 1,295 -- -- --
Participating lease revenue -- 68,968 -- -- 519
------------- ------------- ------------- ------------- -------------
Total revenue 3,227 70,263 -- -- 519
------------- ------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating departments -- -- -- -- --
Office rental, parking and other expenses -- 561 -- -- --
Other operating expenses: -- -- -- -- --
General and administrative, hotel -- 23 -- -- --
General and administrative, corporate 7,016 -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 6,237 25,092 -- -- 69
Property taxes, insurance and other (356) 10,150 -- -- 52
Loss on asset impairment -- 310 -- -- --
------------- ------------- ------------- ------------- -------------
Operating expenses 12,897 36,136 -- -- 121
------------- ------------- ------------- ------------- -------------
Operating income (loss) (9,670) 34,127 -- -- 398
------------- ------------- ------------- ------------- -------------
Minority interest 24 -- -- -- --
Interest expense, net (42,325) (16,179) -- -- --
Loss on early extinguishments of debt (7,903) -- -- -- --
Equity in income from consolidated entities 6,014 -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income before income taxes and
discontinued operations (53,860) 17,948 -- -- 398
Income tax benefit (expense) 314 -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from continuing operations (53,546) 17,948 -- -- 398
Discontinued operations:
(Loss) income from discontinued operations
before income tax 447 1,123 -- -- --
Income tax (expense) benefit 161 -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from discontinued operations 608 1,123 -- -- --
------------- ------------- ------------- ------------- -------------
Net (loss) income (52,938) 19,071 -- -- 398
============= ============= ============= ============= =============
<Caption>
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 -- 1,202 -- 675
------------- ------------- ------------- -------------
Total revenue -- 1,202 -- 675
------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operating departments -- -- -- --
Office rental, parking and other expenses -- -- -- --
Other operating expenses: -- -- -- --
General and administrative, hotel -- -- -- --
General and administrative, corporate -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization -- 329 -- 313
Property taxes, insurance and other -- 305 -- 50
Loss on asset impairment -- -- -- --
------------- ------------- ------------- -------------
Operating expenses -- 634 -- 363
------------- ------------- ------------- -------------
Operating income (loss) -- 568 -- 312
------------- ------------- ------------- -------------
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 -- 568 -- 312
Income tax benefit (expense) -- -- -- --
------------- ------------- ------------- -------------
(Loss) income from continuing operations -- 568 -- 312
Discontinued operations:
(Loss) income from discontinued operations
before income tax -- -- -- --
Income tax (expense) benefit -- -- -- --
------------- ------------- ------------- -------------
(Loss) income from discontinued operations -- -- -- --
------------- ------------- ------------- -------------
Net (loss) income -- 568 -- 312
============= ============= ============= =============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
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 -- -- 16 -- --
Participating lease revenue 3,727 726 742 550 630
------------- ------------- ------------- ------------- -------------
Total revenue 3,727 726 758 550 630
------------- ------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating departments -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses: -- -- -- -- --
General and administrative, hotel -- -- -- -- --
General and administrative, corporate -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 1,197 697 298 170 77
Property taxes, insurance and other 556 379 84 61 76
Loss on asset impairment -- -- -- -- --
------------- ------------- ------------- ------------- -------------
Operating expenses 1,753 1,076 382 231 153
------------- ------------- ------------- ------------- -------------
Operating income (loss) 1,974 (350) 376 319 477
------------- ------------- ------------- ------------- -------------
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 1,974 (350) 376 319 477
Income tax benefit (expense) -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from continuing operations 1,974 (350) 376 319 477
Discontinued operations:
(Loss) income from discontinued operations
before income tax -- -- -- -- --
Income tax (expense) benefit -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from discontinued operations -- -- -- -- --
------------- ------------- ------------- ------------- -------------
Net (loss) income 1,974 (350) 376 319 477
============= ============= ============= ============= =============
<Caption>
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 1 -- 90 --
Participating lease revenue 1,015 -- 1,014 3,007
------------- ------------- ------------- -------------
Total revenue 1,016 -- 1,104 3,007
------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operating departments -- -- -- --
Office rental, parking and other expenses -- -- -- --
Other operating expenses: -- -- -- --
General and administrative, hotel -- -- -- --
General and administrative, corporate -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization 356 -- 273 825
Property taxes, insurance and other 202 -- 152 288
Loss on asset impairment -- -- -- --
------------- ------------- ------------- -------------
Operating expenses 558 -- 425 1,113
------------- ------------- ------------- -------------
Operating income (loss) 458 -- 679 1,894
------------- ------------- ------------- -------------
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 458 -- 679 1,894
Income tax benefit (expense) -- -- -- --
------------- ------------- ------------- -------------
(Loss) income from continuing operations 458 -- 679 1,894
Discontinued operations:
(Loss) income from discontinued operations
before income tax -- -- -- --
Income tax (expense) benefit -- -- -- --
------------- ------------- ------------- -------------
(Loss) income from discontinued operations -- -- -- --
------------- ------------- ------------- -------------
Net (loss) income 458 -- 679 1,894
============= ============= ============= =============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
4E, L.P. 1B, LLC 5F, L.P. 6G, LLC 8C, LLC
------------- ------------- ------------- ------------- -------------
Revenue:
Hotel operations: -- -- -- -- --
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue 3 (4) -- -- --
Participating lease revenue 720 1,123 1,429 1,913 --
------------- ------------- ------------- ------------- -------------
Total revenue 723 1,119 1,429 1,913 --
------------- ------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating departments -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses: -- -- -- -- --
General and administrative, hotel -- -- -- -- --
General and administrative, corporate -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 149 249 391 362 --
Property taxes, insurance and other 314 55 187 197 --
Loss on asset impairment 981 -- -- -- --
------------- ------------- ------------- ------------- -------------
Operating expenses 1,444 304 578 559 --
------------- ------------- ------------- ------------- -------------
Operating income (loss) (721) 815 851 1,354 --
------------- ------------- ------------- ------------- -------------
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 (721) 815 851 1,354 --
Income tax benefit (expense) -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from continuing operations (721) 815 851 1,354 --
Discontinued operations:
(Loss) income from discontinued operations
before income tax -- -- -- -- (61)
Income tax (expense) benefit -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from discontinued operations -- -- -- -- (61)
------------- ------------- ------------- ------------- -------------
Net (loss) income (721) 815 851 1,354 (61)
============= ============= ============= ============= =============
<Caption>
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 -- -- 1 --
Participating lease revenue -- -- 689 754
------------- ------------- ------------- -------------
Total revenue -- -- 690 754
------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operating departments -- -- -- --
Office rental, parking and other expenses -- -- -- --
Other operating expenses: -- -- -- --
General and administrative, hotel -- -- -- --
General and administrative, corporate -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization -- -- 313 382
Property taxes, insurance and other -- -- 100 126
Loss on asset impairment -- -- -- --
------------- ------------- ------------- -------------
Operating expenses -- -- 413 508
------------- ------------- ------------- -------------
Operating income (loss) -- -- 277 246
------------- ------------- ------------- -------------
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 -- -- 277 246
Income tax benefit (expense) -- -- -- --
------------- ------------- ------------- -------------
(Loss) income from continuing operations -- -- 277 246
Discontinued operations:
(Loss) income from discontinued operations
before income tax -- (403) -- --
Income tax (expense) benefit -- -- -- --
------------- ------------- ------------- -------------
(Loss) income from discontinued operations -- (403) -- --
------------- ------------- ------------- -------------
Net (loss) income -- (403) 277 246
============= ============= ============= =============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB
MERISTAR SUB 7A JOINT MERISTAR SUB MERISTAR SUB MERISTAR SUB
1A, LLC VENTURE 2B, LLC 3A, LLC 4A, 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 hotel operating departments -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses: -- -- -- -- --
General and administrative, hotel -- -- -- -- --
General and administrative, corporate -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization -- -- -- -- --
Property taxes, insurance and other -- -- -- -- --
Loss on asset impairment -- -- -- -- --
------------- ------------- ------------- ------------- -------------
Operating expenses -- -- -- -- --
------------- ------------- ------------- ------------- -------------
Operating income (loss) -- -- -- -- --
------------- ------------- ------------- ------------- -------------
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 (expense) -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from continuing operations -- -- -- -- --
Discontinued operations:
(Loss) income from discontinued operations
before income tax (167) (713) -- 89 97
Income tax (expense) benefit -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from discontinued operations (167) (713) -- 89 97
------------- ------------- ------------- ------------- -------------
Net (loss) income (167) (713) -- 89 97
============= ============= ============= ============= =============
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB MDV LIMITED
4D, LLC 2A, LLC 6L, LLC PARTNERSHIP
------------- ------------- ------------- -------------
Revenue:
Hotel operations: -- -- -- --
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operations -- -- -- --
Office rental, parking and other revenue -- -- -- --
Participating lease revenue -- -- -- 263
------------- ------------- ------------- -------------
Total revenue -- -- -- 263
------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operating departments -- -- -- --
Office rental, parking and other expenses -- -- -- --
Other operating expenses: -- -- -- --
General and administrative, hotel -- -- -- --
General and administrative, corporate -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization -- -- -- 70
Property taxes, insurance and other -- -- -- 63
Loss on asset impairment -- -- -- --
------------- ------------- ------------- -------------
Operating expenses -- -- -- 133
------------- ------------- ------------- -------------
Operating income (loss) -- -- -- 130
------------- ------------- ------------- -------------
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
Income tax benefit (expense) -- -- -- --
------------- ------------- ------------- -------------
(Loss) income from continuing operations -- -- -- 130
Discontinued operations:
(Loss) income from discontinued operations
before income tax -- -- 1,852 --
Income tax (expense) benefit -- -- -- --
------------- ------------- ------------- -------------
(Loss) income from discontinued operations -- -- 1,852 --
------------- ------------- ------------- -------------
Net (loss) income -- -- 1,852 130
============= ============= ============= =============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
5C, LLC 6J, LLC 1D, L.P. 7B, L.P. 7D, LLC
------------- ------------- ------------- ------------- -------------
Revenue:
Hotel operations: -- -- -- -- --
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue -- -- 140 -- 710
Participating lease revenue -- 1,250 2,513 -- 2,935
------------- ------------- ------------- ------------- -------------
Total revenue -- 1,250 2,653 -- 3,645
------------- ------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating departments -- -- -- -- --
Office rental, parking and other expenses -- -- 63 -- 415
Other operating expenses: -- -- -- -- --
General and administrative, hotel -- -- -- -- --
General and administrative, corporate -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization -- 281 1,136 -- 862
Property taxes, insurance and other -- 146 807 -- 1,305
Loss on asset impairment -- -- -- -- --
------------- ------------- ------------- ------------- -------------
Operating expenses -- 427 2,006 -- 2,582
------------- ------------- ------------- ------------- -------------
Operating income (loss) -- 823 647 -- 1,063
------------- ------------- ------------- ------------- -------------
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 -- 823 647 -- 1,063
Income tax benefit (expense) -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from continuing operations -- 823 647 -- 1,063
Discontinued operations:
(Loss) income from discontinued operations
before income tax -- -- -- (787) --
Income tax (expense) benefit -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from discontinued operations -- -- -- (787) --
------------- ------------- ------------- ------------- -------------
Net (loss) income -- 823 647 (787) 1,063
============= ============= ============= ============= =============
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
7G, LLC 6B, LLC 4I, L.P. 5D, LLC
------------- ------------- ------------- -------------
Revenue:
Hotel operations: -- -- -- --
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operations -- -- -- --
Office rental, parking and other revenue -- -- -- --
Participating lease revenue -- 593 -- 1,101
------------- ------------- ------------- -------------
Total revenue -- 593 -- 1,101
------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operating departments -- -- -- --
Office rental, parking and other expenses -- -- -- --
Other operating expenses: -- -- -- --
General and administrative, hotel -- -- -- --
General and administrative, corporate -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization -- 224 -- 738
Property taxes, insurance and other -- 112 -- 102
Loss on asset impairment -- -- -- --
------------- ------------- ------------- -------------
Operating expenses -- 336 -- 840
------------- ------------- ------------- -------------
Operating income (loss) -- 257 -- 261
------------- ------------- ------------- -------------
Minority interest -- -- -- --
Interest expense, net -- -- -- (647)
Loss on early extinguishments of debt -- -- -- --
Equity in income from consolidated entities -- -- -- --
------------- ------------- ------------- -------------
(Loss) income before income taxes and
discontinued operations -- 257 -- (386)
Income tax benefit (expense) -- -- -- --
------------- ------------- ------------- -------------
(Loss) income from continuing operations -- 257 -- (386)
Discontinued operations:
(Loss) income from discontinued operations
before income tax 103 -- -- --
Income tax (expense) benefit -- -- -- --
------------- ------------- ------------- -------------
(Loss) income from discontinued operations 103 -- -- --
------------- ------------- ------------- -------------
Net (loss) income 103 257 -- (386)
============= ============= ============= =============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB MERISTAR SUB AGH PSS I, MERISTAR SUB MERISTAR SUB
5H, LLC 7H, LLC INC. 2D, LLC 4F, L.P.
------------- ------------- ------------- ------------- -------------
Revenue:
Hotel operations: -- -- -- -- --
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue -- -- -- -- 10
Participating lease revenue -- -- -- -- 984
------------- ------------- ------------- ------------- -------------
Total revenue -- -- -- -- 994
------------- ------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating departments -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses: -- -- -- -- --
General and administrative, hotel -- -- -- -- --
General and administrative, corporate -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization -- -- -- -- 552
Property taxes, insurance and other -- -- -- -- 187
Loss on asset impairment -- -- -- -- --
------------- ------------- ------------- ------------- -------------
Operating expenses -- -- -- -- 739
------------- ------------- ------------- ------------- -------------
Operating income (loss) -- -- -- -- 255
------------- ------------- ------------- ------------- -------------
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 -- -- -- -- 255
Income tax benefit (expense) -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from continuing operations -- -- -- -- 255
Discontinued operations:
(Loss) income from discontinued operations
before income tax -- -- -- -- --
Income tax (expense) benefit -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from discontinued operations -- -- -- -- --
------------- ------------- ------------- ------------- -------------
Net (loss) income -- -- -- -- 255
============= ============= ============= ============= =============
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
5K, LLC 5M, LLC 1E, L.P. 5O, LLC
------------- ------------- ------------- -------------
Revenue:
Hotel operations: -- -- -- --
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operations -- -- -- --
Office rental, parking and other revenue -- -- -- --
Participating lease revenue 1,263 991 -- 471
------------- ------------- ------------- -------------
Total revenue 1,263 991 -- 471
------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operating departments -- -- -- --
Office rental, parking and other expenses -- -- -- --
Other operating expenses: -- -- -- --
General and administrative, hotel -- -- -- --
General and administrative, corporate -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization 648 238 -- 114
Property taxes, insurance and other 186 135 -- 52
Loss on asset impairment -- -- -- --
------------- ------------- ------------- -------------
Operating expenses 834 373 -- 166
------------- ------------- ------------- -------------
Operating income (loss) 429 618 -- 305
------------- ------------- ------------- -------------
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 429 618 -- 305
Income tax benefit (expense) -- -- -- --
------------- ------------- ------------- -------------
(Loss) income from continuing operations 429 618 -- 305
Discontinued operations:
(Loss) income from discontinued operations
before income tax -- -- -- --
Income tax (expense) benefit -- -- -- --
------------- ------------- ------------- -------------
(Loss) income from discontinued operations -- -- -- --
------------- ------------- ------------- -------------
Net (loss) income 429 618 -- 305
============= ============= ============= =============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
4B, L.P. 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 -- -- -- -- 14
Participating lease revenue -- -- 1,066 -- 5,506
------------- ------------- ------------- ------------- -------------
Total revenue -- -- 1,066 -- 5,520
------------- ------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating departments -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses: -- -- -- -- --
General and administrative, hotel -- -- -- -- --
General and administrative, corporate -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization -- -- 223 -- 3,150
Property taxes, insurance and other -- -- 257 -- 819
Loss on asset impairment -- -- 245 -- --
------------- ------------- ------------- ------------- -------------
Operating expenses -- -- 725 -- 3,969
------------- ------------- ------------- ------------- -------------
Operating income (loss) -- -- 341 -- 1,551
------------- ------------- ------------- ------------- -------------
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 -- -- 341 -- 1,551
Income tax benefit (expense) -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from continuing operations -- -- 341 -- 1,551
Discontinued operations:
(Loss) income from discontinued operations
before income tax (217) (1,645) -- -- --
Income tax (expense) benefit -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from discontinued operations (217) (1,645) -- -- --
------------- ------------- ------------- ------------- -------------
Net (loss) income (217) (1,645) 341 -- 1,551
============= ============= ============= ============= =============
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB MERISTAR SUB
5P, LLC 5J, LLC 5Q, LLC 5A, LLC
------------- ------------- ------------- -------------
Revenue:
Hotel operations: -- -- -- --
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operations -- -- -- --
Office rental, parking and other revenue -- -- -- 60
Participating lease revenue 488 5,286 1,087 3,115
------------- ------------- ------------- -------------
Total revenue 488 5,286 1,087 3,175
------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- --
Food and beverage -- -- -- --
Other hotel operating departments -- -- -- --
Office rental, parking and other expenses -- -- -- --
Other operating expenses: -- -- -- --
General and administrative, hotel -- -- -- --
General and administrative, corporate -- -- -- --
Property operating costs -- -- -- --
Depreciation and amortization 2 2,810 294 532
Property taxes, insurance and other 3 873 154 390
Loss on asset impairment -- -- -- --
------------- ------------- ------------- -------------
Operating expenses 5 3,683 448 922
------------- ------------- ------------- -------------
Operating income (loss) 483 1,603 639 2,253
------------- ------------- ------------- -------------
Minority interest -- -- -- --
Interest expense, net -- -- -- (1,417)
Loss on early extinguishments of debt -- -- -- --
Equity in income from consolidated entities -- -- -- --
------------- ------------- ------------- -------------
(Loss) income before income taxes and
discontinued operations 483 1,603 639 836
Income tax benefit (expense) -- -- -- --
------------- ------------- ------------- -------------
(Loss) income from continuing operations 483 1,603 639 836
Discontinued operations:
(Loss) income from discontinued operations
before income tax -- -- -- --
Income tax (expense) benefit -- -- -- --
------------- ------------- ------------- -------------
(Loss) income from discontinued operations -- -- -- --
------------- ------------- ------------- -------------
Net (loss) income 483 1,603 639 836
============= ============= ============= =============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR MERISTAR GUARANTOR
MERISTAR SUB MERISTAR SUB PENTAGON CITY, HOTEL LESSEE, SUBSIDIARIES
8D, LLC 4J, LLC LLC INC. TOTAL
------------- ------------- ------------- ------------- -------------
Revenue:
Hotel operations: -- -- -- -- --
Rooms -- -- -- 277,284 277,284
Food and beverage -- -- -- 110,450 110,450
Other hotel operations -- -- -- 34,397 34,397
Office rental, parking and other revenue -- 104 -- 161 1,306
Participating lease revenue -- 1,353 1,406 -- 52,106
------------- ------------- ------------- ------------- -------------
Total revenue -- 1,457 1,406 422,292 475,543
------------- ------------- ------------- ------------- -------------
Hotel operating expenses:
Rooms -- -- -- 67,795 67,795
Food and beverage -- -- -- 79,923 79,923
Other hotel operating departments -- -- -- 21,162 21,162
Office rental, parking and other expenses -- 216 -- -- 694
Other operating expenses: -- -- -- -- --
General and administrative, hotel -- -- 4 65,747 65,751
General and administrative, corporate -- -- -- 90 90
Property operating costs -- -- -- 62,941 62,941
Depreciation and amortization -- 632 355 84 19,395
Property taxes, insurance and other -- 172 177 135,016 144,140
Loss on asset impairment -- -- -- -- 1,226
------------- ------------- ------------- ------------- -------------
Operating expenses -- 1,020 536 432,758 463,117
------------- ------------- ------------- ------------- -------------
Operating income (loss) -- 437 870 (10,466) 12,426
------------- ------------- ------------- ------------- -------------
Minority interest -- -- -- -- --
Interest expense, net -- -- (9) (3,526) (5,599)
Loss on early extinguishments of debt -- -- -- -- --
Equity in income from consolidated entities -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income before income taxes and
discontinued operations -- 437 861 (13,992) 6,827
Income tax benefit (expense) -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from continuing operations -- 437 861 (13,992) 6,827
Discontinued operations:
(Loss) income from discontinued operations
before income tax (857) -- -- (17,175) (19,884)
Income tax (expense) benefit -- -- -- -- --
------------- ------------- ------------- ------------- -------------
(Loss) income from discontinued operations (857) -- -- (17,175) (19,884)
------------- ------------- ------------- ------------- -------------
Net (loss) income (857) 437 861 (31,167) (13,057)
============= ============= ============= ============= =============
<Caption>
TOTAL
ELIMINATIONS CONSOLIDATED
------------- -------------
Revenue:
Hotel operations: -- --
Rooms -- 277,284
Food and beverage -- 110,450
Other hotel operations -- 34,397
Office rental, parking and other revenue -- 5,828
Participating lease revenue (121,074) --
------------- -------------
Total revenue (121,074) 427,959
------------- -------------
Hotel operating expenses:
Rooms -- 67,795
Food and beverage -- 79,923
Other hotel operating departments -- 21,162
Office rental, parking and other expenses -- 1,255
Other operating expenses: -- --
General and administrative, hotel -- 65,774
General and administrative, corporate -- 7,106
Property operating costs -- 62,941
Depreciation and amortization -- 50,724
Property taxes, insurance and other (121,074) 32,860
Loss on asset impairment -- 1,536
------------- -------------
Operating expenses (121,074) 391,076
------------- -------------
Operating income (loss) -- 36,883
------------- -------------
Minority interest -- 24
Interest expense, net -- (64,103)
Loss on early extinguishments of debt -- (7,903)
Equity in income from consolidated entities (6,014) --
------------- -------------
(Loss) income before income taxes and
discontinued operations (6,014) (35,099)
Income tax benefit (expense) -- 314
------------- -------------
(Loss) income from continuing operations (6,014) (34,785)
Discontinued operations:
(Loss) income from discontinued operations
before income tax -- (18,314)
Income tax (expense) benefit -- 161
------------- -------------
(Loss) income from discontinued operations -- (18,153)
------------- -------------
Net (loss) income (6,014) (52,938)
============= =============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR
HOSPITALITY OP, NON-GUARANTOR MERISTAR SUB7C, AGH UPREIT, MERISTAR SUB 5N,
L.P. SUBSIDIARIES LLC LLC LLC
--------------- --------------- --------------- --------------- ----------------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue 4,211 2,380 -- -- --
Participating lease revenue -- 54,691 -- -- 515
--------------- --------------- --------------- --------------- ---------------
Total revenue 4,211 57,071 -- -- 515
--------------- --------------- --------------- --------------- ---------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expenses -- -- -- -- --
Office rental, parking and other expenses -- 814 -- -- --
Other operating expenses:
General and administrative, hotel -- (261) -- -- --
General and administrative, corporate 6,104 -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 5,072 22,031 -- -- 69
Property taxes, insurance and other 2,029 9,456 -- -- 52
Loss on asset impairments -- 33,644 -- -- --
--------------- --------------- --------------- --------------- ---------------
Operating expenses 13,205 65,684 -- -- 121
--------------- --------------- --------------- --------------- ---------------
Operating income (loss) (8,994) (8,613) -- -- 394
Minority interest (6) -- -- -- --
Interest expense, net (52,566) (13,679) -- -- --
Equity in loss from consolidated entities (230,202) -- -- -- --
--------------- --------------- --------------- --------------- ---------------
(Loss) income before income taxes and
discontinued operations (291,768) (22,292) -- -- 394
Income tax (expense) benefit 119 -- -- -- --
--------------- --------------- --------------- --------------- ---------------
(Loss) income from continuing operations (291,649) (22,292) -- -- 394
Discontinued operations:
(Loss) income from discontinued
operations before income tax 1,786 (83,512) -- -- --
Income tax (expense) benefit 6 -- -- -- --
--------------- --------------- --------------- --------------- ---------------
(Loss) income on discontinued operations 1,792 (83,512) -- -- --
--------------- --------------- --------------- --------------- ---------------
Net (loss) income (289,857) (105,804) -- -- 394
=============== =============== =============== =============== ===============
<Caption>
MERISTAR SUB 8A, MERISTAR SUB 8F, MERISTAR SUB MERISTAR SUB MERISTAR SUB 8B,
LLC L.P. 8G, LLC 6H, L.P. LLC
---------------- ---------------- -------------- --------------- ----------------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue -- -- -- -- --
Participating lease revenue -- 1,172 -- 569 3,636
--------------- --------------- --------------- --------------- ---------------
Total revenue -- 1,172 -- 569 3,636
--------------- --------------- --------------- --------------- ---------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expenses -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses:
General and administrative, hotel -- -- -- -- --
General and administrative, corporate -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization -- 261 -- 252 1,220
Property taxes, insurance and other -- 245 -- 47 692
Loss on asset impairments -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
Operating expenses -- 506 -- 299 1,912
--------------- --------------- --------------- --------------- ---------------
Operating income (loss) -- 666 -- 270 1,724
Minority interest -- -- -- -- --
Interest expense, net -- -- -- -- --
Equity in loss from consolidated entities -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
(Loss) income before income taxes and
discontinued operations -- 666 -- 270 1,724
Income tax (expense) benefit -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
(Loss) income from continuing operations -- 666 -- 270 1,724
Discontinued operations:
(Loss) income from discontinued
operations before income tax -- -- -- -- --
Income tax (expense) benefit -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
(Loss) income on discontinued operations -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
Net (loss) income -- 666 -- 270 1,724
=============== =============== =============== =============== ===============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB 1C, MERISTAR SUB 8E, MERISTAR SUB 7F, MERISTAR SUB 5L, MERISTAR SUB 3C,
L.P. LLC LLC LLC LLC
---------------- ---------------- ---------------- ---------------- ----------------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue -- 10 -- -- --
Participating lease revenue 834 724 452 547 969
-------------- -------------- -------------- -------------- --------------
Total revenue 834 734 452 547 969
-------------- -------------- -------------- -------------- --------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expenses -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses:
General and administrative, hotel -- -- -- -- --
General and administrative, corporate -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 508 291 229 69 356
Property taxes, insurance and other 374 108 81 61 197
Loss on asset impairments -- -- 1,637 -- --
-------------- -------------- -------------- -------------- --------------
Operating expenses 882 399 1,947 130 553
-------------- -------------- -------------- -------------- --------------
Operating income (loss) (48) 335 (1,495) 417 416
Minority interest -- -- -- -- --
Interest expense, net -- -- -- (2) --
Equity in loss from consolidated entities -- -- -- -- --
-------------- -------------- -------------- -------------- --------------
(Loss) income before income taxes and
discontinued operations (48) 335 (1,495) 415 416
Income tax (expense) benefit -- -- -- -- --
-------------- -------------- -------------- -------------- --------------
(Loss) income from continuing operations (48) 335 (1,495) 415 416
Discontinued operations:
(Loss) income from discontinued
operations before income tax -- -- -- -- --
Income tax (expense) benefit -- -- -- -- --
-------------- -------------- -------------- -------------- --------------
(Loss) income on discontinued operations -- -- -- -- --
-------------- -------------- -------------- -------------- --------------
Net (loss) income (48) 335 (1,495) 415 416
============== ============== ============== ============== ==============
<Caption>
MERISTAR SUB 5R, MERISTAR SUB 6D, MERISTAR SUB 6E, MERISTAR SUB 4E, MERISTAR SUB 1B,
LLC LLC LLC L.P. LLC
---------------- ---------------- ---------------- ---------------- ----------------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue -- 8 -- 3 1
Participating lease revenue -- 963 2,791 703 1,274
------------- -------------- -------------- -------------- --------------
Total revenue -- 971 2,791 706 1,275
------------- -------------- -------------- -------------- --------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expenses -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses:
General and administrative, hotel -- -- -- -- --
General and administrative, corporate -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization -- 273 822 421 284
Property taxes, insurance and other -- 159 322 223 94
Loss on asset impairments -- -- -- 14,611 --
------------- -------------- -------------- -------------- --------------
Operating expenses -- 432 1,144 15,255 378
------------- -------------- -------------- -------------- --------------
Operating income (loss) -- 539 1,647 (14,549) 897
Minority interest -- -- -- -- --
Interest expense, net -- -- -- -- (10)
Equity in loss from consolidated entities -- -- -- -- --
------------- -------------- -------------- -------------- --------------
(Loss) income before income taxes and
discontinued operations -- 539 1,647 (14,549) 887
Income tax (expense) benefit -- -- -- -- --
------------- -------------- -------------- -------------- --------------
(Loss) income from continuing operations -- 539 1,647 (14,549) 887
Discontinued operations:
(Loss) income from discontinued
operations before income tax -- -- -- -- --
Income tax (expense) benefit -- -- -- -- --
------------- -------------- -------------- -------------- --------------
(Loss) income on discontinued operations -- -- -- -- --
------------- -------------- -------------- -------------- --------------
Net (loss) income -- 539 1,647 (14,549) 887
============= ============== ============== ============== ==============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB 5F, MERISTAR SUB MERISTAR SUB 8C, MERISTAR SUB 4C, MERISTAR SUB
L.P. 6G, LLC LLC L.P. 4H, L.P.
---------------- -------------- ---------------- ---------------- --------------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue -- -- -- -- --
Participating lease revenue 1,487 1,248 -- -- --
-------------- -------------- -------------- -------------- --------------
Total revenue 1,487 1,248 -- -- --
-------------- -------------- -------------- -------------- --------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expenses -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses:
General and administrative, hotel -- -- -- -- --
General and administrative, corporate -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 534 430 -- -- --
Property taxes, insurance and other 198 189 -- -- --
Loss on asset impairments 7,231 -- -- -- --
-------------- -------------- -------------- -------------- --------------
Operating expenses 7,963 619 -- -- --
-------------- -------------- -------------- -------------- --------------
Operating income (loss) (6,476) 629 -- -- --
Minority interest -- -- -- -- --
Interest expense, net -- -- -- -- --
Equity in loss from consolidated entities -- -- -- -- --
-------------- -------------- -------------- -------------- --------------
(Loss) income before income taxes and
discontinued operations (6,476) 629 -- -- --
Income tax (expense) benefit -- -- -- -- --
-------------- -------------- -------------- -------------- --------------
(Loss) income from continuing operations (6,476) 629 -- -- --
Discontinued operations:
(Loss) income from discontinued
operations before income tax -- -- (4,934) -- (5,399)
Income tax (expense) benefit -- -- -- -- --
-------------- -------------- -------------- -------------- --------------
(Loss) income on discontinued operations -- -- (4,934) -- (5,399)
-------------- -------------- -------------- -------------- --------------
Net (loss) income (6,476) 629 (4,934) -- (5,399)
============== ============== ============== ============== ==============
<Caption>
MERISTAR SUB 7E, MERISTAR SUB 3D, MERISTAR SUB 1A, MERISTAR SUB 5E, MERISTAR SUB 7A
LLC LLC LLC LLC JOINT VENTURE
---------------- ---------------- ---------------- ---------------- ---------------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue -- 1 -- -- --
Participating lease revenue 673 726 -- 2,940 --
-------------- -------------- -------------- -------------- --------------
Total revenue 673 727 -- 2,940 --
-------------- -------------- -------------- -------------- --------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expenses -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses:
General and administrative, hotel -- -- -- -- --
General and administrative, corporate -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 309 392 -- 962 --
Property taxes, insurance and other 99 117 -- 201 --
Loss on asset impairments -- -- -- -- --
-------------- -------------- -------------- -------------- --------------
Operating expenses 408 509 -- 1,163 --
-------------- -------------- -------------- -------------- --------------
Operating income (loss) 265 218 -- 1,777 --
Minority interest -- -- -- -- --
Interest expense, net -- -- -- -- --
Equity in loss from consolidated entities -- -- -- -- --
-------------- -------------- -------------- -------------- --------------
(Loss) income before income taxes and
discontinued operations 265 218 -- 1,777 --
Income tax (expense) benefit -- -- -- -- --
-------------- -------------- -------------- -------------- --------------
(Loss) income from continuing operations 265 218 -- 1,777 --
Discontinued operations:
(Loss) income from discontinued
operations before income tax -- -- 460 -- (5,215)
Income tax (expense) benefit -- -- -- -- --
-------------- -------------- -------------- -------------- --------------
(Loss) income on discontinued operations -- -- 460 -- (5,215)
-------------- -------------- -------------- -------------- --------------
Net (loss) income 265 218 460 1,777 (5,215)
============== ============== ============== ============== ==============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB MERISTAR SUB 2B, MERISTAR SUB 3A, MERISTAR SUB 4A, MERISTAR SUB 4D,
6K, LLC LLC LLC LLC LLC
--------------- ---------------- ---------------- ---------------- ----------------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue -- -- -- -- --
Participating lease revenue 2,040 -- -- -- --
--------------- --------------- --------------- --------------- ---------------
Total revenue 2,040 -- -- -- --
--------------- --------------- --------------- --------------- ---------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expenses -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses:
General and administrative, hotel -- -- -- -- --
General and administrative, corporate -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 370 -- -- -- --
Property taxes, insurance and other 191 -- -- -- --
Loss on asset impairments -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
Operating expenses 561 -- -- -- --
--------------- --------------- --------------- --------------- ---------------
Operating income (loss) 1,479 -- -- -- --
Minority interest -- -- -- -- --
Interest expense, net -- -- -- -- --
Equity in loss from consolidated entities -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
(Loss) income before income taxes and
discontinued operations 1,479 -- -- -- --
Income tax (expense) benefit -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
(Loss) income from continuing operations 1,479 -- -- -- --
Discontinued operations:
(Loss) income from discontinued
operations before income tax -- (4,971) (1,399) (1,101) (939)
Income tax (expense) benefit -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
(Loss) income on discontinued operations -- (4,971) (1,399) (1,101) (939)
--------------- --------------- --------------- --------------- ---------------
Net (loss) income 1,479 (4,971) (1,399) (1,101) (939)
=============== =============== =============== =============== ===============
<Caption>
MERISTAR SUB 2A, MERISTAR SUB 6L, MDV LIMITED MERISTAR SUB 5C, MERISTAR SUB 6J,
LLC LLC PARTNERSHIP LLC LLC
---------------- ---------------- --------------- ---------------- ----------------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue -- -- -- -- --
Participating lease revenue -- -- 253 -- 1,051
--------------- --------------- --------------- --------------- ---------------
Total revenue -- -- 253 -- 1,051
--------------- --------------- --------------- --------------- ---------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expenses -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses:
General and administrative, hotel -- -- -- -- --
General and administrative, corporate -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization -- -- 69 -- 302
Property taxes, insurance and other -- -- 70 -- 130
Loss on asset impairments -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
Operating expenses -- -- 139 -- 432
--------------- --------------- --------------- --------------- ---------------
Operating income (loss) -- -- 114 -- 619
Minority interest -- -- -- -- --
Interest expense, net -- -- -- -- 2
Equity in loss from consolidated entities -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
(Loss) income before income taxes and
discontinued operations -- -- 114 -- 621
Income tax (expense) benefit -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
(Loss) income from continuing operations -- -- 114 -- 621
Discontinued operations:
(Loss) income from discontinued
operations before income tax (3,221) (13,081) -- (7,069) --
Income tax (expense) benefit -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
(Loss) income on discontinued operations (3,221) (13,081) -- (7,069) --
--------------- --------------- --------------- --------------- ---------------
Net (loss) income (3,221) (13,081) 114 (7,069) 621
=============== =============== =============== =============== ===============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB 1D, MERISTAR SUB 7B, MERISTAR SUB 7D, MERISTAR SUB MERISTAR SUB 6B,
L.P. L.P. LLC 7G, LLC LLC
---------------- ---------------- ---------------- -------------- ----------------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue 6 -- -- -- --
Participating lease revenue 2,429 -- 3,665 -- 550
--------------- --------------- --------------- --------------- ---------------
Total revenue 2,435 -- 3,665 -- 550
--------------- --------------- --------------- --------------- ---------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expenses -- -- -- -- --
Office rental, parking and other expenses 47 -- 190 -- --
Other operating expenses:
General and administrative, hotel 25 -- 177 -- --
General and administrative, corporate -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 1,148 -- 862 -- 232
Property taxes, insurance and other 835 -- 1,125 -- 100
Loss on asset impairments -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
Operating expenses 2,055 -- 2,354 -- 332
--------------- --------------- --------------- --------------- ---------------
Operating income (loss) 380 -- 1,311 -- 218
Minority interest -- -- -- -- --
Interest expense, net -- -- -- -- --
Equity in loss from consolidated entities -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
(Loss) income before income taxes and
discontinued operations 380 -- 1,311 -- 218
Income tax (expense) benefit -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
(Loss) income from continuing operations 380 -- 1,311 -- 218
Discontinued operations:
(Loss) income from discontinued
operations before income tax -- (10,191) -- (7,531) --
Income tax (expense) benefit -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
(Loss) income on discontinued operations -- (10,191) -- (7,531) --
--------------- --------------- --------------- --------------- ---------------
Net (loss) income 380 (10,191) 1,311 (7,531) 218
=============== =============== =============== =============== ===============
<Caption>
MERISTAR SUB 4I, MERISTAR SUB 5D, MERISTAR SUB MERISTAR SUB
L.P. LLC 5H, LLC 7H, LLC AGH PSS I, INC.
---------------- ---------------- --------------- --------------- ---------------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue -- -- -- -- --
Participating lease revenue -- 1,024 -- -- --
--------------- --------------- --------------- --------------- ---------------
Total revenue -- 1,024 -- -- --
--------------- --------------- --------------- --------------- ---------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expenses -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses:
General and administrative, hotel -- -- -- -- --
General and administrative, corporate -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization -- 730 -- -- --
Property taxes, insurance and other -- 112 -- -- --
Loss on asset impairments -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
Operating expenses -- 842 -- -- --
--------------- --------------- --------------- --------------- ---------------
Operating income (loss) -- 182 -- -- --
Minority interest -- -- -- -- --
Interest expense, net -- (644) -- -- --
Equity in loss from consolidated entities -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
(Loss) income before income taxes and
discontinued operations -- (462) -- -- --
Income tax (expense) benefit -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
(Loss) income from continuing operations -- (462) -- -- --
Discontinued operations:
(Loss) income from discontinued
operations before income tax (1,484) -- (17,368) (1,086) (896)
Income tax (expense) benefit -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
(Loss) income on discontinued operations (1,484) -- (17,368) (1,086) (896)
--------------- --------------- --------------- --------------- ---------------
Net (loss) income (1,484) (462) (17,368) (1,086) (896)
=============== =============== =============== =============== ===============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB 2D, MERISTAR SUB 4F, MERISTAR SUB MERISTAR SUB MERISTAR SUB 1E,
LLC L.P. 5K, LLC 5M, LLC L.P.
---------------- ---------------- --------------- --------------- ----------------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue -- 7 -- -- --
Participating lease revenue -- 981 1,259 976 --
--------------- --------------- --------------- --------------- ---------------
Total revenue -- 988 1,259 976 --
--------------- --------------- --------------- --------------- ---------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expenses -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses:
General and administrative, hotel -- -- -- -- --
General and administrative, corporate -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization -- 556 644 236 --
Property taxes, insurance and other -- 173 187 131 --
Loss on asset impairments -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
Operating expenses -- 729 831 367 --
--------------- --------------- --------------- --------------- ---------------
Operating income (loss) -- 259 428 609 --
Minority interest -- -- -- -- --
Interest expense, net -- -- -- -- --
Equity in loss from consolidated entities -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
(Loss) income before income taxes and
discontinued operations -- 259 428 609 --
Income tax (expense) benefit -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
(Loss) income from continuing operations -- 259 428 609 --
Discontinued operations:
(Loss) income from discontinued
operations before income tax (8,913) -- -- -- 538
Income tax (expense) benefit -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
(Loss) income on discontinued operations (8,913) -- -- -- 538
--------------- --------------- --------------- --------------- ---------------
Net (loss) income (8,913) 259 428 609 538
=============== =============== =============== =============== ===============
<Caption>
MERISTAR SUB MERISTAR SUB 6M MERISTAR SUB 4B, MERISTAR SUB 6C, MERISTAR SUB 2C,
5O, LLC COMPANY L.P. LLC LLC
--------------- --------------- ---------------- ---------------- ----------------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue -- -- -- 5 --
Participating lease revenue 440 2,077 -- 1,402 --
--------------- --------------- --------------- --------------- ---------------
Total revenue 440 2,077 -- 1,407 --
--------------- --------------- --------------- --------------- ---------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expenses -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses:
General and administrative, hotel -- -- -- -- --
General and administrative, corporate -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 114 616 -- 387 --
Property taxes, insurance and other 52 165 -- 112 --
Loss on asset impairments -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
Operating expenses 166 781 -- 499 --
--------------- --------------- --------------- --------------- ---------------
Operating income (loss) 274 1,296 -- 908 --
Minority interest -- -- -- -- --
Interest expense, net -- -- -- -- --
Equity in loss from consolidated entities -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
(Loss) income before income taxes and
discontinued operations 274 1,296 -- 908 --
Income tax (expense) benefit -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
(Loss) income from continuing operations 274 1,296 -- 908 --
Discontinued operations:
(Loss) income from discontinued
operations before income tax -- -- (572) -- (16,006)
Income tax (expense) benefit -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
(Loss) income on discontinued operations -- -- (572) -- (16,006)
--------------- --------------- --------------- --------------- ---------------
Net (loss) income 274 1,296 (572) 908 (16,006)
=============== =============== =============== =============== ===============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB MERISTAR SUB 3B, MERISTAR SUB MERISTAR SUB 5P, MERISTAR SUB 5J,
4G, L.P. LLC 5G, L.P. LLC LLC
--------------- ---------------- --------------- ---------------- ----------------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue -- -- 25 -- --
Participating lease revenue 1,026 -- 5,323 686 5,369
--------------- --------------- --------------- --------------- ---------------
Total revenue 1,026 -- 5,348 686 5,369
--------------- --------------- --------------- --------------- ---------------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expenses -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses:
General and administrative, hotel -- -- -- -- --
General and administrative, corporate -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 448 -- 3,145 2 1,741
Property taxes, insurance and other 319 -- 955 4 739
Loss on asset impairments 8,000 -- -- -- --
--------------- --------------- --------------- --------------- ---------------
Operating expenses 8,767 -- 4,100 6 2,480
--------------- --------------- --------------- --------------- ---------------
Operating income (loss) (7,741) -- 1,248 680 2,889
Minority interest -- -- -- -- --
Interest expense, net -- -- -- -- (3)
Equity in loss from consolidated entities -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
(Loss) income before income taxes and
discontinued operations (7,741) -- 1,248 680 2,886
Income tax (expense) benefit -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
(Loss) income from continuing operations (7,741) -- 1,248 680 2,886
Discontinued operations:
(Loss) income from discontinued
operations before income tax -- (883) -- -- --
Income tax (expense) benefit -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
(Loss) income on discontinued operations -- (883) -- -- --
--------------- --------------- --------------- --------------- ---------------
Net (loss) income (7,741) (883) 1,248 680 2,886
=============== =============== =============== =============== ===============
<Caption>
MERISTAR SUB MERISTAR SUB 5A, MERISTAR SUB 8D, MERISTAR SUB 4J, MERISTAR HOTEL
5Q, LLC LLC LLC LLC LESSEE, INC.
--------------- ---------------- ---------------- ---------------- ---------------
Revenue:
Hotel operations:
Rooms -- -- -- -- 266,706
Food and beverage -- -- -- -- 107,520
Other hotel operations -- -- -- -- 35,754
Office rental, parking and other revenue -- 56 -- 3 --
Participating lease revenue 1,198 2,881 -- 1,630 --
--------------- --------------- --------------- --------------- ---------------
Total revenue 1,198 2,937 -- 1,633 409,980
--------------- --------------- --------------- --------------- ---------------
Hotel operating expenses:
Rooms -- -- -- -- 63,163
Food and beverage -- -- -- -- 75,646
Other hotel operating expenses -- -- -- -- 20,392
Office rental, parking and other expenses -- -- -- 162 --
Other operating expenses:
General and administrative, hotel -- -- -- 48 62,917
General and administrative, corporate -- -- -- -- --
Property operating costs -- -- -- -- 59,609
Depreciation and amortization 280 771 -- 643 532
Property taxes, insurance and other 109 355 -- 160 126,753
Loss on asset impairments -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
Operating expenses 389 1,126 -- 1,013 409,013
--------------- --------------- --------------- --------------- ---------------
Operating income (loss) 809 1,811 -- 620 967
Minority interest -- -- -- -- --
Interest expense, net -- (1,417) -- -- (982)
Equity in loss from consolidated entities -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
(Loss) income before income taxes and
discontinued operations 809 394 -- 620 (15)
Income tax (expense) benefit -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
(Loss) income from continuing operations 809 394 -- 620 (15)
Discontinued operations:
(Loss) income from discontinued
operations before income tax -- -- 338 -- (7,405)
Income tax (expense) benefit -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
(Loss) income on discontinued operations -- -- 338 -- (7,405)
--------------- --------------- --------------- --------------- ---------------
Net (loss) income 809 394 338 620 (7,420)
=============== =============== =============== =============== ===============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
GUARANTOR TOTAL
SUBSIDIARIES TOTAL ELIMINATIONS CONSOLIDATED
------------------ ----------------- -----------------
Revenue:
Hotel operations:
Rooms 266,706 -- 266,706
Food and beverage 107,520 -- 107,520
Other hotel operations 35,754 -- 35,754
Office rental, parking and other revenue 125 -- 6,716
Participating lease revenue 58,483 (113,174) --
----------------- ----------------- -----------------
Total revenue 468,588 (113,174) 416,696
----------------- ----------------- -----------------
Hotel operating expenses:
Rooms 63,163 -- 63,163
Food and beverage 75,646 -- 75,646
Other hotel operating expenses 20,392 -- 20,392
Office rental, parking and other expenses 399 -- 1,213
Other operating expenses:
General and administrative, hotel 63,167 -- 62,906
General and administrative, corporate 1 -- 6,105
Property operating costs 59,609 -- 59,609
Depreciation and amortization 21,510 -- 48,613
Property taxes, insurance and other 136,236 (113,174) 34,547
Loss on asset impairments 31,479 -- 65,123
----------------- ----------------- -----------------
Operating expenses 471,602 (113,174) 437,317
----------------- ----------------- -----------------
Operating income (loss) (3,014) -- (20,621)
Minority interest -- -- (6)
Interest expense, net (3,056) -- (69,301)
Equity in loss from consolidated entities -- 230,202 --
----------------- ----------------- -----------------
(Loss) income before income taxes and
discontinued operations (6,070) 230,202 (89,928)
Income tax (expense) benefit -- -- 119
----------------- ----------------- -----------------
(Loss) income from continuing operations (6,070) 230,202 (89,809)
Discontinued operations: --
(Loss) income from discontinued
operations before income tax (118,328) -- (200,054)
Income tax (expense) benefit -- -- 6
----------------- ----------------- -----------------
(Loss) income on discontinued operations (118,328) -- (200,048)
----------------- ----------------- -----------------
Net (loss) income (124,398) 230,202 (289,857)
================= ================= =================
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING CASH FLOW
SIX MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)
MERISTAR
HOSPITALITY OP, NON-GUARANTOR MERISTAR SUB
L.P. SUBSIDIARIES 7C, LLC
--------------- --------------- ---------------
Operating activities:
Net (loss) income (52,938) 19,071 --
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 6,237 25,793 --
Equity in earnings (6,014) -- --
Loss on asset impairments -- 3,763 --
Loss on sale of assets, before tax effect 226 (833) --
Loss on early extinguishments of debt 7,903 -- --
Minority interests (24) -- --
Amortization of unearned stock-based compensation 1,090 -- --
Deferred income taxes (652) -- --
Changes in operating assets and liabilities: -- -- --
Accounts receivable (8,146) 149 --
Prepaid expenses and other assets (1,221) 2,738 --
Due from/to Interstate Hotels & Resorts 6,808 -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities (12,214) 707 --
Due from subsidiaries 46,887 (26,984) --
--------------- --------------- ---------------
Net cash provided by (used in) operating activities (12,058) 24,404 --
--------------- --------------- ---------------
Investing activities:
Acquisition of hotels, net of cash acquired -- (92,140) --
Capital expenditures for property and equipment (1,215) (23,254) --
Proceeds from sales of assets -- 42,075 --
Change in restricted cash (27,774) 309 --
Costs associated with disposition program and other, net 84 (1,654) --
--------------- --------------- ---------------
Net cash (used in) provided by investing activities (28,905) (74,664) --
--------------- --------------- ---------------
Financing activities:
Prepayments on long-term debt (85,319) (807) --
Proceeds from debt issuance, net of issuance costs (347) 54,758 --
Scheduled payments on long-term debt -- (3,691) --
Loans to/from subsidiaries (29,460) -- --
Distributions to partners (141) -- --
Proceed from OP units issuance 72,340 -- --
Purchase of OP units (8,690) -- --
Other (325) -- --
--------------- --------------- ---------------
Net cash provided by (used in) financing activities (51,942) 50,260 --
--------------- --------------- ---------------
Effect of exchange rate changes on cash (227) -- --
--------------- --------------- ---------------
NET CHANGE IN CASH (93,132) -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 218,645 -- --
--------------- --------------- ---------------
CASH AND CASH EQUIVALENTS, END OF PERIOD 125,513 -- --
=============== =============== ===============
AGH UPREIT, MERISTAR SUB MERISTAR SUB
LLC 5N, LLC 8A, LLC
--------------- --------------- ---------------
Operating activities:
Net (loss) income -- 398 --
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization -- 69 --
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 -- 15 --
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities -- 48 --
Due from subsidiaries -- (483) --
--------------- --------------- ---------------
Net cash provided by (used in) operating activities -- 47 --
--------------- --------------- ---------------
Investing activities:
Acquisition of hotels, net of cash acquired -- -- --
Capital expenditures for property and equipment -- (47) --
Proceeds from sales of assets -- -- --
Change in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
--------------- --------------- ---------------
Net cash (used in) provided by investing activities -- (47) --
--------------- --------------- ---------------
Financing activities:
Prepayments on long-term debt -- -- --
Proceeds from debt issuance, net of issuance costs -- -- --
Scheduled payments on long-term debt -- -- --
Loans to/from subsidiaries -- -- --
Distributions to partners -- -- --
Proceed from OP units issuance -- -- --
Purchase of OP units -- -- --
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 SUB MERISTAR SUB
8F, L.P. 8G, LLC 6H, L.P.
--------------- --------------- ---------------
Operating activities:
Net (loss) income 568 -- 312
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 329 -- 313
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 22 -- 6
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities (29) -- (118)
Due from subsidiaries (857) -- (512)
--------------- --------------- ---------------
Net cash provided by (used in) operating activities 33 -- 1
--------------- --------------- ---------------
Investing activities:
Acquisition of hotels, net of cash acquired -- -- --
Capital expenditures for property and equipment (33) -- (1)
Proceeds from sales of assets -- -- --
Change in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
--------------- --------------- ---------------
Net cash (used in) provided by investing activities (33) -- (1)
--------------- --------------- ---------------
Financing activities:
Prepayments on long-term debt -- -- --
Proceeds from debt issuance, net of issuance costs -- -- --
Scheduled payments on long-term debt -- -- --
Loans to/from subsidiaries -- -- --
Distributions to partners -- -- --
Proceed from OP units issuance -- -- --
Purchase of OP units -- -- --
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 SUB MERISTAR SUB
8B, LLC 1C, L.P. 8E, LLC
--------------- --------------- ---------------
Operating activities:
Net (loss) income 1,974 (350) 376
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 1,197 697 298
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 34 59 9
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities (107) (16) 9
Due from subsidiaries 1,684 (134) (576)
--------------- --------------- ---------------
Net cash provided by (used in) operating activities 4,782 256 116
--------------- --------------- ---------------
Investing activities:
Acquisition of hotels, net of cash acquired -- -- --
Capital expenditures for property and equipment (4,782) (256) (116)
Proceeds from sales of assets -- -- --
Change in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
--------------- --------------- ---------------
Net cash (used in) provided by investing activities (4,782) (256) (116)
--------------- --------------- ---------------
Financing activities:
Prepayments on long-term debt -- -- --
Proceeds from debt issuance, net of issuance costs -- -- --
Scheduled payments on long-term debt -- -- --
Loans to/from subsidiaries -- -- --
Distributions to partners -- -- --
Proceed from OP units issuance -- -- --
Purchase of OP units -- -- --
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.
CONSOLIDATING CASH FLOW
SIX MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)
MERISTAR SUB MERISTAR SUB MERISTAR SUB
7F, LLC 5L, LLC 3C, LLC
--------------- --------------- ---------------
Operating activities:
Net (loss) income 319 477 458
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 170 77 356
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 6 29 9
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities (51) 63 72
Due from subsidiaries (400) (435) (884)
--------------- --------------- ---------------
Net cash provided by (used in) operating activities 44 211 11
--------------- --------------- ---------------
Investing activities:
Acquisition of hotels, net of cash acquired -- -- --
Capital expenditures for property and equipment (44) (211) (11)
Proceeds from sales of assets -- -- --
Change in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
--------------- --------------- ---------------
Net cash (used in) provided by investing activities (44) (211) (11)
--------------- --------------- ---------------
Financing activities:
Prepayments on long-term debt -- -- --
Proceeds from debt issuance, net of issuance costs -- -- --
Scheduled payments on long-term debt -- -- --
Loans to/from subsidiaries -- -- --
Distributions to partners -- -- --
Proceed from OP units issuance -- -- --
Purchase of OP units -- -- --
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 SUB MERISTAR SUB
5R, LLC 6D, LLC 6E, LLC
--------------- --------------- ---------------
Operating activities:
Net (loss) income -- 679 1,894
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization -- 273 825
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 -- 5 --
Prepaid expenses and other assets -- 7 31
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities -- 98 268
Due from subsidiaries -- (590) (598)
--------------- --------------- ---------------
Net cash provided by (used in) operating activities -- 472 2,420
--------------- --------------- ---------------
Investing activities:
Acquisition of hotels, net of cash acquired -- -- --
Capital expenditures for property and equipment -- (472) (2,420)
Proceeds from sales of assets -- -- --
Change in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
--------------- --------------- ---------------
Net cash (used in) provided by investing activities -- (472) (2,420)
--------------- --------------- ---------------
Financing activities:
Prepayments on long-term debt -- -- --
Proceeds from debt issuance, net of issuance costs -- -- --
Scheduled payments on long-term debt -- -- --
Loans to/from subsidiaries -- -- --
Distributions to partners -- -- --
Proceed from OP units issuance -- -- --
Purchase of OP units -- -- --
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 SUB MERISTAR SUB
4E, L.P. 1B, LLC 5F, L.P.
--------------- --------------- ---------------
Operating activities:
Net (loss) income (721) 815 851
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 149 249 391
Equity in earnings -- -- --
Loss on asset impairments 981 -- --
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 20 28 62
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities (147) (44) 23
Due from subsidiaries (244) (329) 690
--------------- --------------- ---------------
Net cash provided by (used in) operating activities 38 719 2,017
--------------- --------------- ---------------
Investing activities:
Acquisition of hotels, net of cash acquired -- -- --
Capital expenditures for property and equipment (38) (719) (2,017)
Proceeds from sales of assets -- -- --
Change in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
--------------- --------------- ---------------
Net cash (used in) provided by investing activities (38) (719) (2,017)
--------------- --------------- ---------------
Financing activities:
Prepayments on long-term debt -- -- --
Proceeds from debt issuance, net of issuance costs -- -- --
Scheduled payments on long-term debt -- -- --
Loans to/from subsidiaries -- -- --
Distributions to partners -- -- --
Proceed from OP units issuance -- -- --
Purchase of OP units -- -- --
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 SUB MERISTAR SUB
6G, LLC 8C, LLC 4C, L.P.
--------------- --------------- ---------------
Operating activities:
Net (loss) income 1,354 (61) --
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 362 -- --
Equity in earnings -- -- --
Loss on asset impairments -- -- --
Loss on sale of assets, before tax effect -- 110 --
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 12 117 --
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities 142 839 --
Due from subsidiaries (1,565) (6,603) --
--------------- --------------- ---------------
Net cash provided by (used in) operating activities 305 (5,598) --
--------------- --------------- ---------------
Investing activities:
Acquisition of hotels, net of cash acquired -- -- --
Capital expenditures for property and equipment (305) 711 --
Proceeds from sales of assets -- 5,000 --
Change in restricted cash -- -- --
Costs associated with disposition program and other, net -- (113) --
--------------- --------------- ---------------
Net cash (used in) provided by investing activities (305) 5,598 --
--------------- --------------- ---------------
Financing activities:
Prepayments on long-term debt -- -- --
Proceeds from debt issuance, net of issuance costs -- -- --
Scheduled payments on long-term debt -- -- --
Loans to/from subsidiaries -- -- --
Distributions to partners -- -- --
Proceed from OP units issuance -- -- --
Purchase of OP units -- -- --
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.
CONSOLIDATING CASH FLOW
SIX MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB
4H, L.P. 7E, LLC 3D, LLC
--------------- --------------- ---------------
Operating activities:
Net (loss) income (403) 277 246
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 43 313 382
Equity in earnings -- -- --
Loss on asset impairments -- -- --
Loss on sale of assets, before tax effect 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 (8) 7 15
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities (236) 34 54
Due from subsidiaries (4,133) 938 (553)
--------------- --------------- ---------------
Net cash provided by (used in) operating activities (4,372) 1,569 144
--------------- --------------- ---------------
Investing activities:
Acquisition of hotels, net of cash acquired -- -- --
Capital expenditures for property and equipment (87) (1,569) (144)
Proceeds from sales of assets 4,650 -- --
Change in restricted cash -- -- --
Costs associated with disposition program and other, net (191) -- --
--------------- --------------- ---------------
Net cash (used in) provided by investing activities 4,372 (1,569) (144)
--------------- --------------- ---------------
Financing activities:
Prepayments on long-term debt -- -- --
Proceeds from debt issuance, net of issuance costs -- -- --
Scheduled payments on long-term debt -- -- --
Loans to/from subsidiaries -- -- --
Distributions to partners -- -- --
Proceed from OP units issuance -- -- --
Purchase of OP units -- -- --
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 -- -- --
=============== =============== ===============
<Caption>
MERISTAR SUB
MERISTAR SUB 7A JOINT MERISTAR SUB
1A, LLC VENTURE 2B, LLC
--------------- --------------- ---------------
Operating activities:
Net (loss) income (167) (713) --
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 197 121 --
Equity in earnings -- -- --
Loss on asset impairments 544 1,005 --
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 -- -- 2,345
Prepaid expenses and other assets 30 10 --
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities 44 27 --
Due from subsidiaries (637) (428) (2,345)
--------------- --------------- ---------------
Net cash provided by (used in) operating activities 11 22 --
--------------- --------------- ---------------
Investing activities:
Acquisition of hotels, net of cash acquired -- -- --
Capital expenditures for property and equipment (11) (22) --
Proceeds from sales of assets -- -- --
Change in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
--------------- --------------- ---------------
Net cash (used in) provided by investing activities (11) (22) --
--------------- --------------- ---------------
Financing activities:
Prepayments on long-term debt -- -- --
Proceeds from debt issuance, net of issuance costs -- -- --
Scheduled payments on long-term debt -- -- --
Loans to/from subsidiaries -- -- --
Distributions to partners -- -- --
Proceed from OP units issuance -- -- --
Purchase of OP units -- -- --
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 -- -- --
=============== =============== ===============
<Caption>
MERISTAR
MERISTAR SUB MERISTAR SUB 4D,
3A, LLC SUB 4A, LLC LLC
--------------- --------------- ---------------
Operating activities:
Net (loss) income 89 97 --
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 51 -- --
Equity in earnings -- -- --
Loss on asset impairments -- -- --
Loss on sale of assets, before tax effect (20) 45 --
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 1 (9) 3
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities (104) (400) --
Due from subsidiaries (2,993) (2,860) (3)
--------------- --------------- ---------------
Net cash provided by (used in) operating activities (2,976) (3,127) --
--------------- --------------- ---------------
Investing activities:
Acquisition of hotels, net of cash acquired -- -- --
Capital expenditures for property and equipment (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 (used in) provided by investing activities 2,976 3,127 --
--------------- --------------- ---------------
Financing activities:
Prepayments on long-term debt -- -- --
Proceeds from debt issuance, net of issuance costs -- -- --
Scheduled payments on long-term debt -- -- --
Loans to/from subsidiaries -- -- --
Distributions to partners -- -- --
Proceed from OP units issuance -- -- --
Purchase of OP units -- -- --
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 -- -- --
=============== =============== ===============
<Caption>
MERISTAR SUB MERISTAR SUB MDV LIMITED
2A, LLC 6L, LLC PARTNERSHIP
--------------- --------------- ---------------
Operating activities:
Net (loss) income -- 1,852 130
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization -- -- 70
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) --
Prepaid expenses and other assets -- 14 9
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities -- (109) 6
Due from subsidiaries (2,002) (13,739) (165)
--------------- --------------- ---------------
Net cash provided by (used in) operating activities -- (13,987) 50
--------------- --------------- ---------------
Investing activities:
Acquisition of hotels, net of cash acquired -- -- --
Capital expenditures for property and equipment -- (319) (50)
Proceeds from sales of assets -- 14,775 --
Change in restricted cash -- -- --
Costs associated with disposition program and other, net -- (469) --
--------------- --------------- ---------------
Net cash (used in) provided by investing activities -- 13,987 (50)
--------------- --------------- ---------------
Financing activities:
Prepayments on long-term debt -- -- --
Proceeds from debt issuance, net of issuance costs -- -- --
Scheduled payments on long-term debt -- -- --
Loans to/from subsidiaries -- -- --
Distributions to partners -- -- --
Proceed from OP units issuance -- -- --
Purchase of OP units -- -- --
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 -- -- --
=============== =============== ===============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING CASH FLOW
SIX MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB
5C, LLC 6J, LLC 1D, L.P.
--------------- --------------- ---------------
Operating activities:
Net (loss) income -- 823 647
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization -- 281 1,136
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 2 -- --
Prepaid expenses and other assets (4) 8 183
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities -- 288 189
Due from subsidiaries 2 (1,208) (1,785)
--------------- --------------- ---------------
Net cash provided by (used in) operating activities -- 192 370
--------------- --------------- ---------------
Investing activities:
Acquisition of hotels, net of cash acquired -- -- --
Capital expenditures for property and equipment -- (192) (370)
Proceeds from sales of assets -- -- --
Change in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
--------------- --------------- ---------------
Net cash (used in) provided by investing activities -- (192) (370)
--------------- --------------- ---------------
Financing activities:
Prepayments on long-term debt -- -- --
Proceeds from debt issuance, net of issuance costs -- -- --
Scheduled payments on long-term debt -- -- --
Loans to/from subsidiaries -- -- --
Distributions to partners -- -- --
Proceed from OP units issuance -- -- --
Purchase of OP units -- -- --
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 -- -- --
=============== =============== ===============
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB
7B, L.P. 7D, LLC 7G, LLC
--------------- --------------- ---------------
Operating activities:
Net (loss) income (787) 1,063 103
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 99 862 49
Equity in earnings -- -- --
Loss on asset impairments -- -- --
Loss on sale of assets, before tax effect 1,035 -- (39)
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 -- 650 --
Prepaid expenses and other assets 1 31 --
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities (1,602) 442 6
Due from subsidiaries (3,147) (2,044) (1,659)
--------------- --------------- ---------------
Net cash provided by (used in) operating activities (4,401) 1,004 (1,540)
--------------- --------------- ---------------
Investing activities:
Acquisition of hotels, net of cash acquired -- -- --
Capital expenditures for property and equipment 306 (1,004) (399)
Proceeds from sales of assets 4,500 -- 2,300
Change in restricted cash -- -- --
Costs associated with disposition program and other, net (405) -- (361)
--------------- --------------- ---------------
Net cash (used in) provided by investing activities 4,401 (1,004) 1,540
--------------- --------------- ---------------
Financing activities:
Prepayments on long-term debt -- -- --
Proceeds from debt issuance, net of issuance costs -- -- --
Scheduled payments on long-term debt -- -- --
Loans to/from subsidiaries -- -- --
Distributions to partners -- -- --
Proceed from OP units issuance -- -- --
Purchase of OP units -- -- --
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 -- -- --
=============== =============== ===============
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB
6B, LLC 4I, L.P. 5D, LLC
--------------- --------------- ---------------
Operating activities:
Net (loss) income 257 -- (386)
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 224 -- 738
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 4 -- 31
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities 105 61 359
Due from subsidiaries 73 (61) (585)
--------------- --------------- ---------------
Net cash provided by (used in) operating activities 663 -- 157
--------------- --------------- ---------------
Investing activities:
Acquisition of hotels, net of cash acquired -- -- --
Capital expenditures for property and equipment (663) -- (157)
Proceeds from sales of assets -- -- --
Change in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
--------------- --------------- ---------------
Net cash (used in) provided by investing activities (663) -- (157)
--------------- --------------- ---------------
Financing activities:
Prepayments on long-term debt -- -- --
Proceeds from debt issuance, net of issuance costs -- -- --
Scheduled payments on long-term debt -- -- --
Loans to/from subsidiaries -- -- --
Distributions to partners -- -- --
Proceed from OP units issuance -- -- --
Purchase of OP units -- -- --
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 -- -- --
=============== =============== ===============
<Caption>
MERISTAR SUB MERISTAR SUB AGH PSS I,
5H, LLC 7H, LLC INC.
--------------- --------------- ---------------
Operating activities:
Net (loss) income -- -- --
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization -- -- --
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 --
Prepaid expenses and other assets 1 -- 1
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities 2 -- --
Due from subsidiaries (3) (43) (1)
--------------- --------------- ---------------
Net cash provided by (used in) operating activities -- -- --
--------------- --------------- ---------------
Investing activities:
Acquisition of hotels, net of cash acquired -- -- --
Capital expenditures for property and equipment -- -- --
Proceeds from sales of assets -- -- --
Change in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
--------------- --------------- ---------------
Net cash (used in) provided by investing activities -- -- --
--------------- --------------- ---------------
Financing activities:
Prepayments on long-term debt -- -- --
Proceeds from debt issuance, net of issuance costs -- -- --
Scheduled payments on long-term debt -- -- --
Loans to/from subsidiaries -- -- --
Distributions to partners -- -- --
Proceed from OP units issuance -- -- --
Purchase of OP units -- -- --
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 -- -- --
=============== =============== ===============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING CASH FLOW
SIX MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB
2D, LLC 4F, L.P. 5K, LLC
--------------- --------------- ---------------
Operating activities:
Net (loss) income -- 255 429
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization -- 552 648
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 1,166 -- --
Prepaid expenses and other assets -- 13 64
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities -- (202) (1,481)
Due from subsidiaries (1,166) 237 589
--------------- --------------- ---------------
Net cash provided by (used in) operating activities -- 855 249
--------------- --------------- ---------------
Investing activities:
Acquisition of hotels, net of cash acquired -- -- --
Capital expenditures for property and equipment -- (855) (249)
Proceeds from sales of assets -- -- --
Change in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
--------------- --------------- ---------------
Net cash (used in) provided by investing activities -- (855) (249)
--------------- --------------- ---------------
Financing activities:
Prepayments on long-term debt -- -- --
Proceeds from debt issuance, net of issuance costs -- -- --
Scheduled payments on long-term debt -- -- --
Loans to/from subsidiaries -- -- --
Distributions to partners -- -- --
Proceed from OP units issuance -- -- --
Purchase of OP units -- -- --
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 -- -- --
=============== =============== ===============
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB
5M, LLC 1E, L.P. 5O, LLC
--------------- --------------- ---------------
Operating activities:
Net (loss) income 618 -- 305
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 238 -- 114
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 -- 198 --
Prepaid expenses and other assets 37 (1) 13
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities 98 (14) 46
Due from subsidiaries (944) (183) (449)
--------------- --------------- ---------------
Net cash provided by (used in) operating activities 47 -- 29
--------------- --------------- ---------------
Investing activities:
Acquisition of hotels, net of cash acquired -- -- --
Capital expenditures for property and equipment (47) -- (29)
Proceeds from sales of assets -- -- --
Change in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
--------------- --------------- ---------------
Net cash (used in) provided by investing activities (47) -- (29)
--------------- --------------- ---------------
Financing activities:
Prepayments on long-term debt -- -- --
Proceeds from debt issuance, net of issuance costs -- -- --
Scheduled payments on long-term debt -- -- --
Loans to/from subsidiaries -- -- --
Distributions to partners -- -- --
Proceed from OP units issuance -- -- --
Purchase of OP units -- -- --
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 -- -- --
=============== =============== ===============
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB
4B, L.P. 2C, LLC 4G, L.P.
--------------- --------------- ---------------
Operating activities:
Net (loss) income (217) (1,645) 341
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization -- -- 223
Equity in earnings -- -- --
Loss on asset impairments -- 903 245
Loss on sale of assets, before tax effect 215 1,612 --
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 (4) (234) 81
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities (464) (217) (317)
Due from subsidiaries (6,348) 11,658 (569)
--------------- --------------- ---------------
Net cash provided by (used in) operating activities (6,818) 12,070 4
--------------- --------------- ---------------
Investing activities:
Acquisition of hotels, net of cash acquired -- -- --
Capital expenditures for property and equipment (200) (81) (4)
Proceeds from sales of assets 7,500 8,398 --
Change in restricted cash -- -- --
Costs associated with disposition program and other, net (482) (656) --
--------------- --------------- ---------------
Net cash (used in) provided by investing activities 6,818 7,661 (4)
--------------- --------------- ---------------
Financing activities:
Prepayments on long-term debt -- (19,731) --
Proceeds from debt issuance, net of issuance costs -- -- --
Scheduled payments on long-term debt -- -- --
Loans to/from subsidiaries -- -- --
Distributions to partners -- -- --
Proceed from OP units issuance -- -- --
Purchase of OP units -- -- --
Other -- -- --
--------------- --------------- ---------------
Net cash provided by (used in) financing activities -- (19,731) --
--------------- --------------- ---------------
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 -- -- --
=============== =============== ===============
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB
3B, LLC 5G, L.P. 5P, LLC
--------------- --------------- ---------------
Operating activities:
Net (loss) income -- 1,551 483
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization -- 3,150 2
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 -- 228 3
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities 22 (478) --
Due from subsidiaries (22) (398) (488)
--------------- --------------- ---------------
Net cash provided by (used in) operating activities -- 4,053 --
--------------- --------------- ---------------
Investing activities:
Acquisition of hotels, net of cash acquired -- -- --
Capital expenditures for property and equipment -- (4,053) --
Proceeds from sales of assets -- -- --
Change in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
--------------- --------------- ---------------
Net cash (used in) provided by investing activities -- (4,053) --
--------------- --------------- ---------------
Financing activities:
Prepayments on long-term debt -- -- --
Proceeds from debt issuance, net of issuance costs -- -- --
Scheduled payments on long-term debt -- -- --
Loans to/from subsidiaries -- -- --
Distributions to partners -- -- --
Proceed from OP units issuance -- -- --
Purchase of OP units -- -- --
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 -- -- --
=============== =============== ===============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING CASH FLOW
SIX MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB
5J, LLC 5Q, LLC 5A, LLC
------------- ------------- -------------
Operating activities:
Net (loss) income 1,603 639 836
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 2,810 294 532
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 292 46 26
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities 310 229 559
Due from subsidiaries (3,014) (1,040) (1,315)
------------- ------------- -------------
Net cash provided by (used in) operating activities 2,001 168 638
------------- ------------- -------------
Investing activities:
Acquisition of hotels, net of cash acquired -- -- --
Capital expenditures for property and equipment (2,001) (168) (638)
Proceeds from sales of assets -- -- --
Change in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
------------- ------------- -------------
Net cash (used in) provided by investing activities (2,001) (168) (638)
------------- ------------- -------------
Financing activities:
Prepayments on long-term debt -- -- --
Proceeds from debt issuance, net of issuance costs -- -- --
Scheduled payments on long-term debt -- -- --
Loans to/from subsidiaries -- -- --
Distributions to partners -- -- --
Proceed from OP units issuance -- -- --
Purchase of OP units -- -- --
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 -- -- --
============= ============= =============
<Caption>
MERISTAR
MERISTAR SUB MERISTAR SUB PENTAGON CITY,
8D, LLC 4J, LLC LLC
------------- ------------- -------------
Operating activities:
Net (loss) income (857) 437 861
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization -- 632 355
Equity in earnings -- -- --
Loss on asset impairments -- -- --
Loss on sale of assets, before tax effect 899 -- --
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) 1 --
Prepaid expenses and other assets 14 17 --
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities (76) 74 325
Due from subsidiaries (7,723) (440) 35,990
------------- ------------- -------------
Net cash provided by (used in) operating activities (8,102) 721 37,531
------------- ------------- -------------
Investing activities:
Acquisition of hotels, net of cash acquired -- -- (92,672)
Capital expenditures for property and equipment (359) (721) (135)
Proceeds from sales of assets 8,800 -- --
Change in restricted cash -- -- --
Costs associated with disposition program and other, net (339) -- --
------------- ------------- -------------
Net cash (used in) provided by investing activities 8,102 (721) (92,807)
------------- ------------- -------------
Financing activities:
Prepayments on long-term debt -- -- --
Proceeds from debt issuance, net of issuance costs -- -- 55,276
Scheduled payments on long-term debt -- -- --
Loans to/from subsidiaries -- -- --
Distributions to partners -- -- --
Proceed from OP units issuance -- -- --
Purchase of OP units -- -- --
Other -- -- --
------------- ------------- -------------
Net cash provided by (used in) financing activities -- -- 55,276
------------- ------------- -------------
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 -- -- --
============= ============= =============
<Caption>
MERISTAR GUARANTOR
HOTEL LESSEE, SUBSIDIARIES TOTAL
INC. TOTAL ELIMINATIONS CONSOLIDATED
------------- ------------- ------------- -------------
Operating activities:
Net (loss) income (31,167) (13,057) (6,014) (52,938)
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 84 19,955 -- 51,985
Equity in earnings -- -- 6,014 --
Loss on asset impairments -- 3,678 -- 7,441
Loss on sale of assets, before tax effect 9,742 12,137 -- 11,530
Loss on early extinguishments of debt -- -- -- 7,903
Minority interests -- -- -- (24)
Amortization of unearned stock-based compensation -- -- -- 1,090
Deferred income taxes -- -- -- (652)
Changes in operating assets and liabilities: -- -- -- --
Accounts receivable (6,442) (574) 4,344 (4,227)
Prepaid expenses and other assets 1,958 3,347 -- 4,864
Due from/to Interstate Hotels & Resorts (10,049) (10,049) -- (3,241)
Accounts payable, accrued expenses, accrued interest
and other liabilities 11,181 9,811 (4,344) (6,040)
Due from subsidiaries 6,939 (19,903) -- --
------------- ------------- ------------- -------------
Net cash provided by (used in) operating activities (17,754) 5,345 -- 17,691
------------- ------------- ------------- -------------
Investing activities:
Acquisition of hotels, net of cash acquired 2,022 (90,650) -- (182,790)
Capital expenditures for property and equipment (170) (25,429) -- (49,898)
Proceeds from sales of assets -- 62,798 -- 104,873
Change in restricted cash (2,490) (2,490) -- (29,955)
Costs associated with disposition program and other, net -- (3,511) -- (5,081)
------------- ------------- ------------- -------------
Net cash (used in) provided by investing activities (638) (59,282) -- (162,851)
------------- ------------- ------------- -------------
Financing activities:
Prepayments on long-term debt -- (19,731) -- (105,857)
Proceeds from debt issuance, net of issuance costs -- 55,276 -- 109,687
Scheduled payments on long-term debt -- -- -- (3,691)
Loans to/from subsidiaries 29,460 29,460 -- --
Distributions to partners -- -- -- (141)
Proceed from OP units issuance -- -- -- 72,340
Purchase of OP units -- -- -- (8,690)
Other -- -- -- (325)
------------- ------------- ------------- -------------
Net cash provided by (used in) financing activities 29,460 65,005 -- 63,323
------------- ------------- ------------- -------------
Effect of exchange rate changes on cash -- -- -- (227)
------------- ------------- ------------- -------------
NET CHANGE IN CASH 11,068 11,068 -- (82,064)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 12,231 12,231 -- 230,876
------------- ------------- ------------- -------------
CASH AND CASH EQUIVALENTS, END OF PERIOD 23,299 23,299 -- 148,812
============= ============= ============= =============
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING CASH FLOW
SIX MONTHS ENDED JUNE 30, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR
HOSPITALITY OP, NON-GUARANTOR MERISTAR SUB
L.P. SUBSIDIARIES 7C, LLC
---------------- ---------------- ----------------
Operating activities:
Net (loss) income (289,857) (105,804) --
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 5,072 25,558 --
Equity in earnings of affiliates 230,202 -- --
Loss on asset impairments -- 119,917 --
Minority interests 6 -- --
Amortization of unearned stock-based compensation 1,433 -- --
Change in value of interest rate swaps (3,395) -- --
Deferred income taxes (1,534) -- --
Changes in operating assets and liabilities:
Accounts receivable (2,792) 144 --
Prepaid expenses and other assets 4,476 89 --
Due from/to Interstate Hotels & Resorts 724 (1) --
Accounts payable, accrued expenses, accrued interest
and other liabilities 4,348 (4,256) --
Due to/from subsidiaries 81,069 (41,235) --
---------------- ---------------- ----------------
Net cash provided by (used in) operating activities 29,752 (5,588) --
---------------- ---------------- ----------------
Investing activities:
Capital expenditures for property and equipment (503) (3,061) --
Proceeds from sales of assets -- 12,650 --
Purchases of marketable securities (18,056) -- --
Payments to Interstate Hotels & Resorts 42,052 -- --
Increase in restricted cash (9,692) (48) --
Costs associated with disposition program and other, net -- (299) --
---------------- ---------------- ----------------
Net cash provided by (used in) investing activities 13,801 9,242 --
---------------- ---------------- ----------------
Financing activities:
Scheduled payments on long-term debt (24,359) (3,654) --
Distributions to partners (141) -- --
Purchase of limited partnership unit (65) -- --
---------------- ---------------- ----------------
Net cash (used in) provided by financing activities (24,565) (3,654) --
---------------- ---------------- ----------------
Effect of exchange rate changes on cash (115) -- --
---------------- ---------------- ----------------
NET CHANGE IN CASH AND CASH EQUIVALENTS 18,873 -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 21,372 -- --
---------------- ---------------- ----------------
CASH AND CASH EQUIVALENTS, END OF PERIOD 40,245 -- --
================ ================ ================
<Caption>
AGH UPREIT, MERISTAR SUB MERISTAR SUB
LLC 5N, LLC 8A, LLC
---------------- ---------------- ----------------
Operating activities:
Net (loss) income -- 394 --
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization -- 69 --
Equity in earnings of affiliates -- -- --
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 -- -- --
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities -- 15 (1)
Due to/from subsidiaries -- (465) 1
---------------- ---------------- ----------------
Net cash provided by (used in) operating activities -- 13 --
---------------- ---------------- ----------------
Investing activities:
Capital expenditures for property and equipment -- (13) --
Proceeds from sales of assets -- -- --
Purchases of marketable securities -- -- --
Payments to Interstate Hotels & Resorts -- -- --
Increase in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
---------------- ---------------- ----------------
Net cash provided by (used in) investing activities -- (13) --
---------------- ---------------- ----------------
Financing activities:
Scheduled payments on long-term debt -- -- --
Distributions to partners -- -- --
Purchase of limited partnership unit -- -- --
---------------- ---------------- ----------------
Net cash (used in) provided by 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 -- -- --
================ ================ ================
<Caption>
MERISTAR SUB 8F, MERISTAR SUB MERISTAR SUB
L.P. 8G, LLC 6H, L.P.
---------------- ---------------- ----------------
Operating activities:
Net (loss) income 666 -- 270
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 261 -- 252
Equity in earnings of affiliates -- -- --
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 (28) -- --
Prepaid expenses and other assets (5) -- (5)
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities (130) -- 31
Due to/from subsidiaries (743) -- (541)
---------------- ---------------- ----------------
Net cash provided by (used in) operating activities 21 -- 7
---------------- ---------------- ----------------
Investing activities:
Capital expenditures for property and equipment (21) -- (7)
Proceeds from sales of assets -- -- --
Purchases of marketable securities -- -- --
Payments to Interstate Hotels & Resorts -- -- --
Increase in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
---------------- ---------------- ----------------
Net cash provided by (used in) investing activities (21) -- (7)
---------------- ---------------- ----------------
Financing activities:
Scheduled payments on long-term debt -- -- --
Distributions to partners -- -- --
Purchase of limited partnership unit -- -- --
---------------- ---------------- ----------------
Net cash (used in) provided by 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 -- -- --
================ ================ ================
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING CASH FLOW
SIX MONTHS ENDED JUNE 30, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB 8E,
8B, LLC 1C, L.P. LLC
---------------- ---------------- ----------------
Operating activities:
Net (loss) income 1,724 (48) 335
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 1,220 508 291
Equity in earnings of affiliates -- -- --
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 -- (17) --
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities (44) (143) (15)
Due to/from subsidiaries (2,164) (223) (543)
---------------- ---------------- ----------------
Net cash provided by (used in) operating activities 736 77 68
---------------- ---------------- ----------------
Investing activities:
Capital expenditures for property and equipment (736) (77) (68)
Proceeds from sales of assets -- -- --
Purchases of marketable securities -- -- --
Payments to Interstate Hotels & Resorts -- -- --
Increase in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
---------------- ---------------- ----------------
Net cash provided by (used in) investing activities (736) (77) (68)
---------------- ---------------- ----------------
Financing activities:
Scheduled payments on long-term debt -- -- --
Distributions to partners -- -- --
Purchase of limited partnership unit -- -- --
---------------- ---------------- ----------------
Net cash (used in) provided by 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 -- -- --
================ ================ ================
<Caption>
MERISTAR SUB 7F, MERISTAR SUB MERISTAR SUB
LLC 5L, LLC 3C, LLC
---------------- ---------------- ----------------
Operating activities:
Net (loss) income (1,495) 415 416
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 229 69 356
Equity in earnings of affiliates -- -- --
Loss on asset impairments 1,637 -- --
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 -- 48 --
Prepaid expenses and other assets -- (6) --
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities 20 (4) (62)
Due to/from subsidiaries (358) (430) (698)
---------------- ---------------- ----------------
Net cash provided by (used in) operating activities 33 92 12
---------------- ---------------- ----------------
Investing activities:
Capital expenditures for property and equipment (33) (92) (12)
Proceeds from sales of assets -- -- --
Purchases of marketable securities -- -- --
Payments to Interstate Hotels & Resorts -- -- --
Increase in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
---------------- ---------------- ----------------
Net cash provided by (used in) investing activities (33) (92) (12)
---------------- ---------------- ----------------
Financing activities:
Scheduled payments on long-term debt -- -- --
Distributions to partners -- -- --
Purchase of limited partnership unit -- -- --
---------------- ---------------- ----------------
Net cash (used in) provided by 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 -- -- --
================ ================ ================
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB 6E,
5R, LLC 6D, LLC LLC
---------------- ---------------- ----------------
Operating activities:
Net (loss) income -- 539 1,647
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization -- 273 822
Equity in earnings of affiliates -- -- --
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 -- (5) --
Prepaid expenses and other assets -- -- --
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities -- (6) (45)
Due to/from subsidiaries -- (801) (2,298)
---------------- ---------------- ----------------
Net cash provided by (used in) operating activities -- -- 126
---------------- ---------------- ----------------
Investing activities:
Capital expenditures for property and equipment -- -- (126)
Proceeds from sales of assets -- -- --
Purchases of marketable securities -- -- --
Payments to Interstate Hotels & Resorts -- -- --
Increase in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
---------------- ---------------- ----------------
Net cash provided by (used in) investing activities -- -- (126)
---------------- ---------------- ----------------
Financing activities:
Scheduled payments on long-term debt -- -- --
Distributions to partners -- -- --
Purchase of limited partnership unit -- -- --
---------------- ---------------- ----------------
Net cash (used in) provided by 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 -- -- --
================ ================ ================
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING CASH FLOW
SIX MONTHS ENDED JUNE 30, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB 4E, MERISTAR SUB MERISTAR SUB 5F,
L.P. 1B, LLC L.P.
---------------- ---------------- ----------------
Operating activities:
Net (loss) income (14,549) 887 (6,476)
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 421 284 534
Equity in earnings of affiliates -- -- --
Loss on asset impairments 14,611 -- 7,231
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 -- (36) --
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities (260) (13) 46
Due to/from subsidiaries (129) (1,031) (1,288)
---------------- ---------------- ----------------
Net cash provided by (used in) operating activities 94 91 47
---------------- ---------------- ----------------
Investing activities:
Capital expenditures for property and equipment (94) (80) (47)
Proceeds from sales of assets -- -- --
Purchases of marketable securities -- -- --
Payments to Interstate Hotels & Resorts -- -- --
Increase in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
---------------- ---------------- ----------------
Net cash provided by (used in) investing activities (94) (80) (47)
---------------- ---------------- ----------------
Financing activities:
Scheduled payments on long-term debt -- (11) --
Distributions to partners -- -- --
Purchase of limited partnership unit -- -- --
---------------- ---------------- ----------------
Net cash (used in) provided by 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 -- -- --
================ ================ ================
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB
6G, LLC 8C, LLC 4C, L.P.
---------------- ---------------- ----------------
Operating activities:
Net (loss) income 629 (4,934) --
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 430 377 --
Equity in earnings of affiliates -- -- --
Loss on asset impairments -- 5,213 --
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 -- (22) 5
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities (150) (145) (5)
Due to/from subsidiaries (805) (480) --
---------------- ---------------- ----------------
Net cash provided by (used in) operating activities 104 9 --
---------------- ---------------- ----------------
Investing activities:
Capital expenditures for property and equipment (104) (9) --
Proceeds from sales of assets -- -- --
Purchases of marketable securities -- -- --
Payments to Interstate Hotels & Resorts -- -- --
Increase in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
---------------- ---------------- ----------------
Net cash provided by (used in) investing activities (104) (9) --
---------------- ---------------- ----------------
Financing activities:
Scheduled payments on long-term debt -- -- --
Distributions to partners -- -- --
Purchase of limited partnership unit -- -- --
---------------- ---------------- ----------------
Net cash (used in) provided by 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 -- -- --
================ ================ ================
<Caption>
MERISTAR SUB MERISTAR SUB 7E, MERISTAR SUB
4H, L.P. LLC 3D, LLC
---------------- ---------------- ----------------
Operating activities:
Net (loss) income (5,399) 265 218
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 264 309 392
Equity in earnings of affiliates -- -- --
Loss on asset impairments 5,187 -- --
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 (7) -- --
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities (61) 15 54
Due to/from subsidiaries 94 (495) (556)
---------------- ---------------- ----------------
Net cash provided by (used in) operating activities 92 94 108
---------------- ---------------- ----------------
Investing activities:
Capital expenditures for property and equipment (92) (94) (108)
Proceeds from sales of assets -- -- --
Purchases of marketable securities -- -- --
Payments to Interstate Hotels & Resorts -- -- --
Increase in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
---------------- ---------------- ----------------
Net cash provided by (used in) investing activities (92) (94) (108)
---------------- ---------------- ----------------
Financing activities:
Scheduled payments on long-term debt -- -- --
Distributions to partners -- -- --
Purchase of limited partnership unit -- -- --
---------------- ---------------- ----------------
Net cash (used in) provided by 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 -- -- --
================ ================ ================
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING CASH FLOW
SIX MONTHS ENDED JUNE 30, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB MERISTAR SUB 5E, MERISTAR SUB 7A
1A, LLC LLC JOINT VENTURE
---------------- ---------------- ----------------
Operating activities:
Net (loss) income 460 1,777 (5,215)
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 225 962 215
Equity in earnings of affiliates -- -- --
Loss on asset impairments -- -- 5,478
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 -- -- --
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities (92) 156 (51)
Due to/from subsidiaries (499) (2,846) (314)
---------------- ---------------- ----------------
Net cash provided by (used in) operating activities 94 49 113
---------------- ---------------- ----------------
Investing activities:
Capital expenditures for property and equipment (94) (49) (113)
Proceeds from sales of assets -- -- --
Purchases of marketable securities -- -- --
Payments to Interstate Hotels & Resorts -- -- --
Increase in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
---------------- ---------------- ----------------
Net cash provided by (used in) investing activities (94) (49) (113)
---------------- ---------------- ----------------
Financing activities:
Scheduled payments on long-term debt -- -- --
Distributions to partners -- -- --
Purchase of limited partnership unit -- -- --
---------------- ---------------- ----------------
Net cash (used in) provided by 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 -- -- --
================ ================ ================
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB
6K, LLC 2B, LLC 3A, LLC
---------------- ---------------- ----------------
Operating activities:
Net (loss) income 1,479 (4,971) (1,399)
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 370 213 131
Equity in earnings of affiliates -- -- --
Loss on asset impairments -- 4,670 1,497
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 -- 2 --
Prepaid expenses and other assets -- -- (2)
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities (113) -- (44)
Due to/from subsidiaries (1,727) 632 (160)
---------------- ---------------- ----------------
Net cash provided by (used in) operating activities 9 546 23
---------------- ---------------- ----------------
Investing activities:
Capital expenditures for property and equipment (9) (546) (23)
Proceeds from sales of assets -- -- --
Purchases of marketable securities -- -- --
Payments to Interstate Hotels & Resorts -- -- --
Increase in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
---------------- ---------------- ----------------
Net cash provided by (used in) investing activities (9) (546) (23)
---------------- ---------------- ----------------
Financing activities:
Scheduled payments on long-term debt -- -- --
Distributions to partners -- -- --
Purchase of limited partnership unit -- -- --
---------------- ---------------- ----------------
Net cash (used in) provided by 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 -- -- --
================ ================ ================
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB
4A, LLC 4D, LLC 2A, LLC
---------------- ---------------- ----------------
Operating activities:
Net (loss) income (1,101) (939) (3,221)
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization -- 55 164
Equity in earnings of affiliates -- -- --
Loss on asset impairments 1,455 1,004 2,828
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 -- (3) --
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities (118) (5) (79)
Due to/from subsidiaries (3) (3,091) 1,153
---------------- ---------------- ----------------
Net cash provided by (used in) operating activities 233 (2,979) 844
---------------- ---------------- ----------------
Investing activities:
Capital expenditures for property and equipment (233) (91) (844)
Proceeds from sales of assets -- 3,070 --
Purchases of marketable securities -- -- --
Payments to Interstate Hotels & Resorts -- -- --
Increase in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
---------------- ---------------- ----------------
Net cash provided by (used in) investing activities (233) 2,979 (844)
---------------- ---------------- ----------------
Financing activities:
Scheduled payments on long-term debt -- -- --
Distributions to partners -- -- --
Purchase of limited partnership unit -- -- --
---------------- ---------------- ----------------
Net cash (used in) provided by 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 -- -- --
================ ================ ================
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING CASH FLOW
SIX MONTHS ENDED JUNE 30, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB MDV LIMITED MERISTAR SUB
6L, LLC PARTNERSHIP 5C, LLC
---------------- ---------------- ----------------
Operating activities:
Net (loss) income (13,081) 114 (7,069)
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 445 69 289
Equity in earnings of affiliates -- -- --
Loss on asset impairments 13,286 -- 7,187
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 (2) -- 26
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities 32 (32) (51)
Due to/from subsidiaries (635) (143) (302)
---------------- ---------------- ----------------
Net cash provided by (used in) operating activities 45 8 80
---------------- ---------------- ----------------
Investing activities:
Capital expenditures for property and equipment (45) (8) (80)
Proceeds from sales of assets -- -- --
Purchases of marketable securities -- -- --
Payments to Interstate Hotels & Resorts -- -- --
Increase in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
---------------- ---------------- ----------------
Net cash provided by (used in) investing activities (45) (8) (80)
---------------- ---------------- ----------------
Financing activities:
Scheduled payments on long-term debt -- -- --
Distributions to partners -- -- --
Purchase of limited partnership unit -- -- --
---------------- ---------------- ----------------
Net cash (used in) provided by 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 -- -- --
================ ================ ================
<Caption>
MERISTAR SUB 6J, MERISTAR SUB MERISTAR SUB
LLC 1D, L.P. 7B, L.P.
---------------- ---------------- ----------------
Operating activities:
Net (loss) income 621 380 (10,191)
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 302 1,148 342
Equity in earnings of affiliates -- -- --
Loss on asset impairments -- -- 10,288
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 -- -- --
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities (67) (241) (37)
Due to/from subsidiaries (822) (1,201) (364)
---------------- ---------------- ----------------
Net cash provided by (used in) operating activities 34 86 38
---------------- ---------------- ----------------
Investing activities:
Capital expenditures for property and equipment (34) (86) (38)
Proceeds from sales of assets -- -- --
Purchases of marketable securities -- -- --
Payments to Interstate Hotels & Resorts -- -- --
Increase in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
---------------- ---------------- ----------------
Net cash provided by (used in) investing activities (34) (86) (38)
---------------- ---------------- ----------------
Financing activities:
Scheduled payments on long-term debt -- -- --
Distributions to partners -- -- --
Purchase of limited partnership unit -- -- --
---------------- ---------------- ----------------
Net cash (used in) provided by 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 -- -- --
================ ================ ================
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB
7D, LLC 7G, LLC 6B, LLC
---------------- ---------------- ----------------
Operating activities:
Net (loss) income 1,311 (7,531) 218
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 862 308 232
Equity in earnings of affiliates -- -- --
Loss on asset impairments -- 7,416 --
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 182 -- --
Prepaid expenses and other assets -- -- --
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities (169) (132) 92
Due to/from subsidiaries (2,139) (2) (439)
---------------- ---------------- ----------------
Net cash provided by (used in) operating activities 47 59 103
---------------- ---------------- ----------------
Investing activities:
Capital expenditures for property and equipment (47) (59) (103)
Proceeds from sales of assets -- -- --
Purchases of marketable securities -- -- --
Payments to Interstate Hotels & Resorts -- -- --
Increase in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
---------------- ---------------- ----------------
Net cash provided by (used in) investing activities (47) (59) (103)
---------------- ---------------- ----------------
Financing activities:
Scheduled payments on long-term debt -- -- --
Distributions to partners -- -- --
Purchase of limited partnership unit -- -- --
---------------- ---------------- ----------------
Net cash (used in) provided by 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 -- -- --
================ ================ ================
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING CASH FLOW
SIX MONTHS ENDED JUNE 30, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB 4I, MERISTAR SUB MERISTAR SUB
L.P. 5D, LLC 5H, LLC
---------------- ---------------- ----------------
Operating activities:
Net (loss) income (1,484) (462) (17,368)
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 145 730 1,010
Equity in earnings of affiliates -- -- --
Loss on asset impairments 1,259 -- 18,075
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) -- (1)
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities (129) 13 43
Due to/from subsidiaries 246 (254) (1,676)
---------------- ---------------- ----------------
Net cash provided by (used in) operating activities 29 27 83
---------------- ---------------- ----------------
Investing activities:
Capital expenditures for property and equipment (29) (27) (83)
Proceeds from sales of assets -- -- --
Purchases of marketable securities -- -- --
Payments to Interstate Hotels & Resorts -- -- --
Increase in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
---------------- ---------------- ----------------
Net cash provided by (used in) investing activities (29) (27) (83)
---------------- ---------------- ----------------
Financing activities:
Scheduled payments on long-term debt -- -- --
Distributions to partners -- -- --
Purchase of limited partnership unit -- -- --
---------------- ---------------- ----------------
Net cash (used in) provided by 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 -- -- --
================ ================ ================
<Caption>
MERISTAR SUB MERISTAR SUB
7H, LLC AGH PSS I, INC. 2D, LLC
---------------- ---------------- ----------------
Operating activities:
Net (loss) income (1,086) (896) (8,913)
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 97 -- 234
Equity in earnings of affiliates -- -- --
Loss on asset impairments 1,383 1,787 8,685
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 -- -- --
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities (23) 88 (158)
Due to/from subsidiaries (354) (932) 968
---------------- ---------------- ----------------
Net cash provided by (used in) operating activities 17 47 809
---------------- ---------------- ----------------
Investing activities:
Capital expenditures for property and equipment (17) (47) (809)
Proceeds from sales of assets -- -- --
Purchases of marketable securities -- -- --
Payments to Interstate Hotels & Resorts -- -- --
Increase in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
---------------- ---------------- ----------------
Net cash provided by (used in) investing activities (17) (47) (809)
Financing activities:
Scheduled payments on long-term debt -- -- --
Distributions to partners -- -- --
Purchase of limited partnership unit -- -- --
---------------- ---------------- ----------------
Net cash (used in) provided by 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 -- -- --
================ ================ ================
<Caption>
MERISTAR SUB 4F, MERISTAR SUB MERISTAR SUB
L.P. 5K, LLC 5M, LLC
---------------- ---------------- ----------------
Operating activities:
Net (loss) income 259 428 609
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 556 644 236
Equity in earnings of affiliates -- -- --
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 -- -- 2
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities (189) (1,171) 39
Due to/from subsidiaries (288) 159 (873)
---------------- ---------------- ----------------
Net cash provided by (used in) operating activities 338 60 13
---------------- ---------------- ----------------
Investing activities:
Capital expenditures for property and equipment (338) (60) (13)
Proceeds from sales of assets -- -- --
Purchases of marketable securities -- -- --
Payments to Interstate Hotels & Resorts -- -- --
Increase in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
---------------- ---------------- ----------------
Net cash provided by (used in) investing activities (338) (60) (13)
---------------- ---------------- ----------------
Financing activities:
Scheduled payments on long-term debt -- -- --
Distributions to partners -- -- --
Purchase of limited partnership unit -- -- --
---------------- ---------------- ----------------
Net cash (used in) provided by 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 -- -- --
================ ================ ================
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING CASH FLOW
SIX MONTHS ENDED JUNE 30, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB 1E, MERISTAR SUB MERISTAR SUB
L.P. 5O, LLC 6M COMPANY
---------------- ---------------- ----------------
Operating activities:
Net (loss) income 538 274 1,296
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 158 114 616
Equity in earnings of affiliates -- -- --
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 -- -- --
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities (27) 19 136
Due to/from subsidiaries (650) (401) (2,032)
---------------- ---------------- ----------------
Net cash provided by (used in) operating activities 19 6 16
---------------- ---------------- ----------------
Investing activities:
Capital expenditures for property and equipment (19) (6) (16)
Proceeds from sales of assets -- -- --
Purchases of marketable securities -- -- --
Payments to Interstate Hotels & Resorts -- -- --
Increase in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
---------------- ---------------- ----------------
Net cash provided by (used in) investing activities (19) (6) (16)
---------------- ---------------- ----------------
Financing activities:
Scheduled payments on long-term debt -- -- --
Distributions to partners -- -- --
Purchase of limited partnership unit -- -- --
---------------- ---------------- ----------------
Net cash (used in) provided by 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 -- -- --
================ ================ ================
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB
4B, L.P. 6C, LLC 2C, LLC
---------------- ---------------- ----------------
Operating activities:
Net (loss) income (572) 908 (16,006)
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 268 387 512
Equity in earnings of affiliates -- -- --
Loss on asset impairments 264 -- 15,255
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 -- -- --
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities (147) 41 (202)
Due to/from subsidiaries 267 (1,280) 1,923
---------------- ---------------- ----------------
Net cash provided by (used in) operating activities 80 56 1,482
---------------- ---------------- ----------------
Investing activities:
Capital expenditures for property and equipment (80) (56) (1,482)
Proceeds from sales of assets -- -- --
Purchases of marketable securities -- -- --
Payments to Interstate Hotels & Resorts -- -- --
Increase in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
---------------- ---------------- ----------------
Net cash provided by (used in) investing activities (80) (56) (1,482)
---------------- ---------------- ----------------
Financing activities:
Scheduled payments on long-term debt -- -- --
Distributions to partners -- -- --
Purchase of limited partnership unit -- -- --
---------------- ---------------- ----------------
Net cash (used in) provided by 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 -- -- --
================ ================ ================
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB
4G, L.P. 3B, LLC 5G, L.P.
---------------- ---------------- ----------------
Operating activities:
Net (loss) income (7,741) (883) 1,248
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 448 259 3,145
Equity in earnings of affiliates -- -- --
Loss on asset impairments 8,000 1,064 --
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 (3) (11) --
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities (282) (35) 373
Due to/from subsidiaries (405) (475) (4,374)
---------------- ---------------- ----------------
Net cash provided by (used in) operating activities 17 (81) 392
---------------- ---------------- ----------------
Investing activities:
Capital expenditures for property and equipment (17) 81 (392)
Proceeds from sales of assets -- -- --
Purchases of marketable securities -- -- --
Payments to Interstate Hotels & Resorts -- -- --
Increase in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
---------------- ---------------- ----------------
Net cash provided by (used in) investing activities (17) 81 (392)
---------------- ---------------- ----------------
Financing activities:
Scheduled payments on long-term debt -- -- --
Distributions to partners -- -- --
Purchase of limited partnership unit -- -- --
---------------- ---------------- ----------------
Net cash (used in) provided by 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 -- -- --
================ ================ ================
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING CASH FLOW
SIX MONTHS ENDED JUNE 30, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
MERISTAR SUB MERISTAR SUB 5J, MERISTAR SUB
5P, LLC LLC 5Q, LLC
---------------- ---------------- ----------------
Operating activities:
Net (loss) income 680 2,886 809
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 2 1,741 280
Equity in earnings of affiliates -- -- --
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) 29 --
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities 4 25 (2)
Due to/from subsidiaries (678) (3,043) (976)
---------------- ---------------- ----------------
Net cash provided by (used in) operating activities -- 1,638 111
---------------- ---------------- ----------------
Investing activities:
Capital expenditures for property and equipment -- (1,638) (111)
Proceeds from sales of assets -- -- --
Purchases of marketable securities -- -- --
Payments to Interstate Hotels & Resorts -- -- --
Increase in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
---------------- ---------------- ----------------
Net cash provided by (used in) investing activities -- (1,638) (111)
---------------- ---------------- ----------------
Financing activities:
Scheduled payments on long-term debt -- -- --
Distributions to partners -- -- --
Purchase of limited partnership unit -- -- --
---------------- ---------------- ----------------
Net cash (used in) provided by 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 -- -- --
================ ================ ================
<Caption>
MERISTAR SUB MERISTAR SUB MERISTAR SUB 4J,
5A, LLC 8D, LLC LLC
---------------- ---------------- ----------------
Operating activities:
Net (loss) income 394 338 620
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 771 627 643
Equity in earnings of affiliates -- -- --
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 -- -- (12)
Prepaid expenses and other assets -- (23) --
Due from/to Interstate Hotels & Resorts -- -- --
Accounts payable, accrued expenses, accrued interest
and other liabilities 197 (15) (43)
Due to/from subsidiaries (1,132) (564) (1,186)
---------------- ---------------- ----------------
Net cash provided by (used in) operating activities 230 363 22
---------------- ---------------- ----------------
Investing activities:
Capital expenditures for property and equipment (230) (363) (22)
Proceeds from sales of assets -- -- --
Purchases of marketable securities -- -- --
Payments to Interstate Hotels & Resorts -- -- --
Increase in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
---------------- ---------------- ----------------
Net cash provided by (used in) investing activities (230) (363) (22)
---------------- ---------------- ----------------
Financing activities:
Scheduled payments on long-term debt -- -- --
Distributions to partners -- -- --
Purchase of limited partnership unit -- -- --
---------------- ---------------- ----------------
Net cash (used in) provided by 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 -- -- --
================ ================ ================
<Caption>
GUARANTOR
MERISTAR HOTEL SUBSIDIARIES
LESSEE, INC. TOTAL ELIMINATIONS
---------------- ---------------- ----------------
Operating activities:
Net (loss) income (7,420) (124,398) 230,202
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 532 27,848 --
Equity in earnings of affiliates -- -- (230,202)
Loss on asset impairments -- 144,760 --
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 (9,713) (9,520) --
Prepaid expenses and other assets (243) (340) --
Due from/to Interstate Hotels & Resorts (5,298) (5,298) --
Accounts payable, accrued expenses, accrued interest
and other liabilities (2,273) (5,572) --
Due to/from subsidiaries 5,031 (39,834) --
---------------- ---------------- ----------------
Net cash provided by (used in) operating activities (19,384) (12,354) --
---------------- ---------------- ----------------
Investing activities:
Capital expenditures for property and equipment (894) (10,983) --
Proceeds from sales of assets -- 3,070 --
Purchases of marketable securities -- -- --
Payments to Interstate Hotels & Resorts -- -- --
Increase in restricted cash -- -- --
Costs associated with disposition program and other, net -- -- --
---------------- ---------------- ----------------
Net cash provided by (used in) investing activities (894) (7,913) --
---------------- ---------------- ----------------
Financing activities:
Scheduled payments on long-term debt 23,816 23,805 --
Distributions to partners -- -- --
Purchase of limited partnership unit -- -- --
---------------- ---------------- ----------------
Net cash (used in) provided by financing activities 23,816 23,805 --
---------------- ---------------- ----------------
Effect of exchange rate changes on cash -- -- --
---------------- ---------------- ----------------
NET CHANGE IN CASH AND CASH EQUIVALENTS 3,538 3,538 --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 12,517 12,517 --
---------------- ---------------- ----------------
CASH AND CASH EQUIVALENTS, END OF PERIOD 16,055 16,055 --
================ ================ ================
</Table>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING CASH FLOW
SIX MONTHS ENDED JUNE 30, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
TOTAL
CONSOLIDATED
----------------
Operating activities:
Net (loss) income (289,857)
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 58,478
Equity in earnings of affiliates --
Loss on asset impairments 264,677
Minority interests 6
Amortization of unearned stock-based compensation 1,433
Change in value of interest rate swaps (3,395)
Deferred income taxes (1,534)
Changes in operating assets and liabilities:
Accounts receivable (12,168)
Prepaid expenses and other assets 4,225
Due from/to Interstate Hotels & Resorts (4,575)
Accounts payable, accrued expenses, accrued interest
and other liabilities (5,480)
Due to/from subsidiaries --
----------------
Net cash provided by (used in) operating activities 11,810
----------------
Investing activities:
Capital expenditures for property and equipment (14,547)
Proceeds from sales of assets 15,720
Purchases of marketable securities (18,056)
Payments to Interstate Hotels & Resorts 42,052
Increase in restricted cash (9,740)
Costs associated with disposition program and other, net (299)
----------------
Net cash provided by (used in) investing activities 15,130
----------------
Financing activities:
Scheduled payments on long-term debt (4,208)
Distributions to partners (141)
Purchase of limited partnership unit (65)
----------------
Net cash (used in) provided by financing activities (4,414)
----------------
Effect of exchange rate changes on cash (115)
----------------
NET CHANGE IN CASH AND CASH EQUIVALENTS 22,411
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 33,889
----------------
CASH AND CASH EQUIVALENTS, END OF PERIOD 56,300
================
</Table>