EXHIBIT 12.1
FAIRFIELD INN BY MARRIOTT LIMITED PARTNERSHIP
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in thousands)
For the Nine
Months Ended Year Ended December 31,
September 30, --------------------------------------------------------------------
2003 (1) 2002 2001 2000 1999
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Net loss $(24,161) $ (8,548) $ (11,472) $(14,774) $(8,552)
Add:
Fixed charges 8,856 12,315 13,890 14,361 14,489
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Adjusted earnings $(15,305) $3,767 $ 2,418 $ (413) $ 5,937
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Fixed charges:
Interest on indebtedness and
amortization of deferred
financing costs $ 8,856 $12,315 $ 12,845 $13,238 $ 13,528
Portion of rents
representative of interest
factor -- -- 1,045 1,123 961
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Total fixed charges $ 8,856 $12,315 $ 13,890 $14,361 $ 14,489
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Deficiency of earnings to fixed
charges $24,161 $8,548 $ 11,472 $ 14,774 $8,552
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(1) The Partnership adopted the liquidation basis of accounting for all periods
beginning after September 30, 2003. On September 30, 2003, in accordance
with the liquidation basis of accounting, assets were adjusted to estimated
net realizable value and liabilities were adjusted to estimated settlement
amounts, including estimated costs associated with carrying out the
liquidation. The valuation of real estate held for sale is based on current
estimates and other indications of sales value net of estimated selling
costs. Actual values realized for assets and settlement of liabilities may
differ materially from the amounts estimated. Due to the uncertainty in
timing of anticipated sales of property, no provision has been made for
estimated future cash flows from property operations.
Under the liquidation basis of accounting, the Partnership is required to
estimate and accrue the non-operating costs associated with executing the
plan of liquidation. These amounts can vary significantly due to, among
other things, the timing and realized proceeds from property sales, the
costs of retaining agents and trustees to oversee the liquidation,
including the costs of insurance, the timing and amounts associated with
discharging known and contingent liabilities and the non-operating costs
associated with cessation of the Partnership's operations. These
non-operating costs are estimates and are expected to be paid out over the
liquidation period.