EXHIBIT 21


                      ACTIVE SUBSIDIARIES OF THE REGISTRANT
                             AS OF FEBRUARY 28, 2002


<Table>
<Caption>
                                  NAME                                                  STATE OR COUNTRY
                                  ----                                                  ----------------
                                                                                     
Brock Suite Hotels, Inc. and subsidiaries.......................................            Delaware
Brookwood Companies Incorporated and subsidiaries...............................            Delaware
HCRE California, Inc............................................................           California
HSC Securities Corporation......................................................            Delaware
HWG, LLC........................................................................            Delaware
HWG Holding One, Inc............................................................            Delaware
HWG Holding Two, Inc............................................................            Delaware
HWG Realty Investors, LLC and subsidiaries......................................            Delaware
Hallwood Commercial Real Estate, LLC............................................            Delaware
Hallwood Hotels, Inc. and subsidiaries..........................................            Delaware
Hallwood Investment Company.....................................................       Grand Cayman Island
Hallwood Realty, LLC............................................................            Delaware
</Table>