REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
TO THE PARTNERS OF FAIRFIELD INN BY MARRIOTT LIMITED PARTNERSHIP:
We have audited in accordance with auditing standards generally accepted in the
United States, the financial statements of Fairfield Inn by Marriott Limited
Partnership (a Delaware limited partnership) included in this registration
statement and have issued our report thereon dated April 5, 2001 (except with
respect to the matter discussed in Note 9, as to which the date is September 20,
2001). Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The Schedule III - Real Estate and
Accumulated Depreciation is the responsibility of the General Partner's
management and is presented for purposes of complying with the Securities and
Exchange Commission's rules and is not part of the basic financial statements.
This schedule has been subjected to the auditing procedures applied in the
audits of the basic financial statements and, in our opinion, fairly states, in
all material respects, the financial data required to be set forth therein in
relation to the basic financial statements taken as a whole.
ARTHUR ANDERSEN LLP
Vienna, Virginia
April 5, 2001
SCHEDULE III
Fairfield Inn By Marriott Limited Partnership
Real Estate and Accumulated Depreciation
As of December 31,2000
(in thousands)
Initial Costs
-----------------------------------------
Leasehold,
Buildings and Subsequent Buildings and Accumulated
Description Encumbrances Land Improvements Costs Capitalized Land Improvements Total Depreciation
---------------------------------- -------------------------------------------------------------------------------------------
50 Fairfield Inns $153,569 $14,873 $159,615 $ 9,839 $ 14,873 $ 169,454 $184,327 $73,375
Date of
Completion of Date Depreciable
Construction Acquired Life
------------- ------------------------
50 Fairfield Inns 1987-1990 1989-1990 20-30 years
Notes:
(a) Reconciliation of Real Estate:
1998 1999 2000
--------- --------- ---------
Balance at beginning of year $ 193,920 $ 191,024 $ 188,578
Capital Expenditures 6,601 6,153 3,876
Dispositions/Reclassifications -- (5,756) --
Impairment Loss (9,497) (2,843) (8,127)
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Balance at end of year $ 191,024 $ 188,578 $ 184,327
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(b) Reconciliation of Accumulated Depreciation:
Balance at beginning of year $ 47,607 $ 56,029 $ 64,740
Depreciation 8,422 8,711 8,635
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Balance at end of year $ 56,029 $ 64,740 $ 73,375
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(c) The aggregate cost of land, buildings and improvements for Federal income tax purposes is approximately $180.7 million
at December 31,2000.