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EXHIBIT 99.2
RFS HOTEL INVESTORS, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
(IN THOUSANDS)
ACTUAL PRO FORMA
-------- ---------
Lease revenue $47,249 $55,958
Interest income 1,058 1,058
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Total revenue 48,307 57,016
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Real estate taxes and
property and casualty insurance 5,019 6,265
Depreciation 8,578 11,681
Amortization of franchise fees
and unearned compensation 536 536
Compensation 936 936
Franchise taxes 283 283
General and administrative 968 968
Amortization of loan costs 310 310
Interest expense, net 592 4,489
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Total expenses 17,222 25,468
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Income before allocation to minority interests 31,085 31,548
Income allocation to minority interest 439 2,997
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Net income $30,646 $28,551
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Net income per common and common
equivalent share $ 1.26 $ 1.17
Weighted average shares and partnership
units outstanding 24,620 26,865
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RFS HOTEL INVESTORS, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996
(IN THOUSANDS)
ACTUAL PRO FORMA
-------- ---------
Lease revenue $47,594 $55,294
Interest income 259 259
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Total revenue 47,853 55,553
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Real estate taxes and
property and casualty insurance 4,459 5,394
Depreciation 7,944 10,270
Amortization of franchise fees
and unearned compensation 543 543
Compensation 1,485 1,485
Franchise taxes 195 195
General and administrative 1,475 1,475
Loss on sale of a property 244 244
Amortization of loan costs 264 264
Interest expense, net 2,360 5,283
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Total expenses 18,969 25,153
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Income before allocation to minority interests 28,884 30,400
Income allocation to minority interest 406 2,888
------- -------
Net income $28,478 $27,512
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Net income per common and common
equivalent share $ 1.14 $ 1.10
Weighted average shares and partnership
units outstanding 24,667 26,912
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RFS HOTEL INVESTORS, INC.
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
AS OF SEPTEMBER 30, 1996
(IN THOUSANDS)
ACTUAL PRO FORMA
-------- ---------
ASSETS
Investment in hotel properties, net $401,883 $492,883
Hotels under development 7,967 7,967
Cash and cash equivalents 1,124 1,124
Accounts receivable-Lessees 11,494 11,494
Deferred expenses, net 1,345 1,345
Prepaid and other assets 577 577
Escrow deposits on hotels under development 2,045 2,045
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$426,435 $517,435
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LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable and accrued expenses $ 1,989 $ 1,989
Accrued real estate taxes 2,641 2,641
Borrowings on line of credit 48,600 101,435
Long-term debt 8,305 8,305
Minority interest 4,581 38,412
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66,116 152,782
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Commitments and contingencies
Shareholders' equity:
Preferred Stock, $.01 par value, 5,000,000
shares authorized, 973,884 and none
outstanding 10 10
Common Stock, $.01 par value, 100,000,000
shares authorized, 24,384,000 and
24,294,000 shares outstanding 244 244
Paid-in capital 356,548 360,882
Undistributed income 6,027 6,027
Unearned directors' and officers'
compensation (2,510) (2,510)
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Total shareholders' equity 360,319 364,653
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$426,435 $517,435
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