<PAGE>

================================================================================

                       SECURITIES AND EXCHANGE COMMISSION

                            Washington, D.C.  20549


                                   FORM 10-Q


          [X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934

                                       OR

         [ ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934


For the Quarter Ended June 16, 2000                  Commission File No. 0-25087

                              HOST MARRIOTT, L.P.
                              10400 Fernwood Road
                           Bethesda, Maryland  20817
                                 (301) 380-9000

        Delaware                                                   52-2095412
------------------------                                        ----------------
(State of Incorporation)                                        (I.R.S. Employer
                                                          Identification Number)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months, and (2) has been subject to such filing requirements
for the past 90 days.

                                                            Yes   X     No
                                                                -----

                                                               Units outstanding
       Class                                                    at July 21, 2000
---------------------                                           ----------------
Units of limited partnership interest                             283,834,349

================================================================================
<PAGE>

                                     INDEX
                                     -----

<TABLE>
<CAPTION>


Part I.   FINANCIAL INFORMATION (Unaudited):                            Page No.
                                                                        --------
<S>       <C>                                                           <C>
          Condensed Consolidated Balance Sheets -
            June 16, 2000 and December 31, 1999                              3

          Condensed Consolidated Statements of Operations -
           Twelve Weeks and Twenty-four Weeks Ended
           June 16, 2000 and June 18, 1999                                   4

          Condensed Consolidated Statements of Cash Flows -
           Twenty-four Weeks Ended June 16, 2000 and
           June 18, 1999                                                     6

          Notes to Condensed Consolidated Financial Statements               7

          Management's Discussion and Analysis of Results of
           Operations and Financial Condition                               22

          Quantitative and Qualitative Disclosures about Market Risk        26

II.       OTHER INFORMATION AND SIGNATURE                                   27

</TABLE>

                                      -2-
<PAGE>

                              HOST MARRIOTT, L.P.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (im millions)


<TABLE>
<CAPTION>
                                                                               June 16,      December 31,
                                                                                 2000           1999
                                                                                ------         ------
                                                                             (unaudited)
                                   ASSETS
                                   ------
<S>                                                                          <C>             <C>
Property and equipment, net...............................................      $7,108         $7,108
Notes and other receivables (including amounts due from
   affiliates of $125 million and $127 million, respectively).............         173            175
Rent receivable...........................................................          89             72
Investments in affiliates.................................................          96             49
Other assets..............................................................         539            515
Cash and cash equivalents.................................................         155            277
                                                                                ------         ------
                                                                                $8,160         $8,196
                                                                                ======         ======

                      LIABILITIES AND PARTNERS' CAPITAL
                      ---------------------------------
Debt
   Senior notes...........................................................      $2,539         $2,539
   Mortgage debt..........................................................       2,296          2,309
   Convertible debt obligation to Host Marriott...........................         492            514
   Other..................................................................         272            221
                                                                                ------         ------
                                                                                 5,599          5,583
Accounts payable and accrued expenses.....................................         143            148
Deferred income taxes.....................................................          48             49
Deferred rent.............................................................         291             --
Other liabilities.........................................................         396            426
                                                                                ------         ------
       Total liabilities..................................................       6,477          6,206
                                                                                ------         ------

Minority interest.........................................................         136            136
Cumulative redeemable preferred limited partnership interests of third
   parties at redemption value ("Preferred OP Units") (representing
   0.6 million units).....................................................           6              5
Limited Partnership interests of third parties at redemption value
   (representing 63.4 million and 64.0 million units at June 16, 2000
   and December 31, 1999).................................................         622            528

Partners' Capital
   General partner........................................................           1              1
   Cumulative redeemable preferred limited partner........................         196            196
   Limited partner........................................................         718          1,120
   Accumulated other comprehensive income.................................           4              4
                                                                                ------         ------
       Total partners' capital............................................         919          1,321
                                                                                ------         ------
                                                                                $8,160         $8,196
                                                                                ======         ======
</TABLE>

           See Notes to Condensed Consolidated Financial Statements

                                      -3-
<PAGE>

                              HOST MARRIOTT, L.P.
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
              Twelve Weeks Ended June 16, 2000 and June 18, 1999
               (unaudited, in millions, except per unit amounts)

<TABLE>
<CAPTION>
                                                                              2000      1999
                                                                             ------    ------
<S>                                                                          <C>       <C>
REVENUES
   Rental income..........................................................   $  183    $  187
   Interest income........................................................        8         8
   Net gains on property transactions.....................................        2         4
   Equity in earnings of affiliates.......................................        3         1
   Other..................................................................        3         3
                                                                             ------    ------
       Total revenues.....................................................      199       203
                                                                             ------    ------
EXPENSES
   Depreciation and amortization..........................................       75        67
   Property-level owner expenses..........................................       63        62
   Minority interest expense..............................................        5         7
   Interest expense.......................................................      104       109
   Corporate expenses.....................................................       10         8
   Other expenses.........................................................        6         4
                                                                             ------    ------
       Total expenses.....................................................      263       257
                                                                             ------    ------

LOSS FROM OPERATIONS BEFORE INCOME TAXES..................................      (64)      (54)
Provision for income taxes................................................       (2)       (1)
                                                                             ------    ------

LOSS FROM OPERATIONS BEFORE EXTRAORDINARY ITEMS...........................      (66)      (55)
Extraordinary gain (loss).................................................       (2)       13
                                                                             ------    ------

NET LOSS..................................................................   $  (68)   $  (42)
                                                                             ======    ======

Less: Distributions on preferred limited partner units to Host Marriott...       (5)       --
                                                                             ------    ------

NET LOSS AVAILABLE TO COMMON UNITHOLDERS..................................   $  (73)   $  (42)
                                                                             ======    ======


BASIC LOSS PER UNIT:
Loss from operations before extraordinary items...........................   $(0.26)   $(0.19)
Extraordinary gain (loss).................................................       --      0.04
                                                                             ------    ------

BASIC LOSS PER UNIT.......................................................   $(0.26)   $(0.15)
                                                                             ======    ======

DILUTED LOSS PER UNIT:
Loss from operations before extraordinary items...........................   $(0.26)   $(0.19)
Extraordinary gain (loss).................................................       --      0.04
                                                                             ------    ------

DILUTED LOSS PER UNIT.....................................................   $(0.26)   $(0.15)
                                                                             ======    ======
</TABLE>

           See Notes to Condensed Consolidated Financial Statements

                                      -4-
<PAGE>

                              HOST MARRIOTT, L.P.
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
            Twenty-four Weeks Ended June 16, 2000 and June 18, 1999
               (unaudited, in millions, except per unit amounts)


<TABLE>
                                                                              2000      1999
                                                                             ------    ------
<S>                                                                          <C>       <C>
REVENUES
 Rental income............................................................   $  356    $  358
 Interest income..........................................................       17        16
 Net gains on property transactions.......................................        3        16
 Equity in earnings of affiliates.........................................        3         2
 Other....................................................................        5         3
                                                                             ------    ------
     Total revenues.......................................................      384       395
                                                                             ------    ------

EXPENSES
 Depreciation and amortization............................................      149       135
 Property-level owner expenses............................................      122       120
 Minority interest expense................................................       10        11
 Interest expense.........................................................      208       217
 Corporate expenses.......................................................       20        15
 Other expenses...........................................................       12         6
                                                                             ------    ------
     Total expenses.......................................................      521       504
                                                                             ------    ------

LOSS FROM OPERATIONS BEFORE INCOME TAXES..................................     (137)     (109)
Provision for income taxes................................................       (3)       (2)
                                                                             ------    ------

LOSS FROM OPERATIONS BEFORE EXTRAORDINARY ITEMS...........................     (140)     (111)
Extraordinary gain........................................................        3        13
                                                                             ------    ------

NET LOSS..................................................................   $ (137)   $  (98)
                                                                             ======    ======

Less:  Distributions on preferred limited partner units to Host Marriott..      (10)       --
                                                                             ------    ------

NET LOSS AVAILABLE TO COMMON UNITHOLDERS..................................   $ (147)   $  (98)
                                                                             ======    ======

BASIC LOSS PER UNIT:
Loss from operations before extraordinary items...........................   $(0.53)   $(0.38)
Extraordinary gain........................................................     0.01      0.04
                                                                             ------    ------

BASIC LOSS PER UNIT:......................................................   $(0.52)   $(0.34)
                                                                             ======    ======

DILUTED LOSS PER UNIT:
Loss from operations before extraordinary items...........................   $(0.53)   $(0.38)
Extraordinary gain........................................................     0.01      0.04
                                                                             ------    ------

DILUTED LOSS PER UNIT.....................................................   $(0.52)   $(0.34)
                                                                             ======    ======
</TABLE>

           See Notes to Condensed Consolidated Financial Statements

                                      -5-
<PAGE>

                              HOST MARRIOTT, L.P.
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
            Twenty-four Weeks Ended June 16, 2000 and June 18, 1999
                           (unaudited, in millions)

<TABLE>
                                                                              2000     1999
                                                                             -----    -----
<S>                                                                          <C>      <C>
OPERATING ACTIVITIES
Loss from operations before extraordinary items...........................   $(140)   $(111)
Adjustments to reconcile to cash from continuing operations:
   Depreciation and amortization..........................................     149      135
   Income taxes...........................................................     (20)      (8)
   Deferred contingent rental income......................................     291      253
   Net gains on property transactions.....................................      (3)     (16)
   Equity in earnings of affiliates.......................................      (3)      (2)
   Changes in operating accounts..........................................     (39)    (142)
   Other..................................................................      13        2
                                                                             -----    -----
       Cash from operations...............................................     248      111
                                                                             -----    -----
INVESTING ACTIVITIES
Proceeds from sales of assets.............................................      --       35
Acquisitions..............................................................     (40)      (4)
Capital expenditures:
   Capital expenditures for renewals and replacements.....................    (106)     (86)
   New investment capital expenditures....................................     (59)     (75)
   Other investments......................................................     (20)     (16)
Note receivable collections, net..........................................       3      (17)
                                                                             -----    -----
       Cash used in investing activities..................................    (222)    (163)
                                                                             -----    -----
FINANCING ACTIVITIES
Issuances of debt, net....................................................     290      413
Scheduled principal repayments............................................     (18)     (23)
Debt prepayment...........................................................    (245)    (323)
Issuances of common units.................................................       2       --
Distributions.............................................................    (129)    (130)
Redemption or repurchase of OP Units for cash.............................     (47)      (3)
Repurchases of Convertible Preferred Securities...........................     (15)      --
Other.....................................................................      14       (8)
                                                                             -----    -----
       Cash used in financing activities..................................    (148)     (74)
                                                                             -----    -----

DECREASE IN CASH AND CASH EQUIVALENTS.....................................   $(122)   $(126)
                                                                             =====    =====
</TABLE>

           See Notes to Condensed Consolidated Financial Statements

                                      -6-
<PAGE>

                              HOST MARRIOTT, L.P.
             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (unaudited)


1.  Organization

    Host Marriott Corporation ("Host REIT"), a Maryland corporation formerly
    named HMC Merger Corporation, operating through an umbrella partnership
    structure, is a self-managed and self-administered real estate investment
    trust ("REIT") with its operations conducted solely through an operating
    partnership, Host Marriott, L.P. (the "Operating Partnership" or "Host LP")
    and its subsidiaries. As REITs are not currently permitted to derive
    revenues directly from the operations of hotels, Host REIT leases all of the
    hotels to subsidiaries of Crestline Capital Corporation ("Crestline") or
    other lessees (collectively the "Lessee").

    In these condensed consolidated financial statements, the "Company" or "Host
    Marriott" refers to Host Marriott Corporation before, and Host Marriott,
    L.P., after Host Marriott Corporation's conversion to a REIT (the "REIT
    Conversion"). Host Marriott Corporation is presented as the predecessor to
    the Operating Partnership since the Operating Partnership and its
    subsidiaries received substantially all of the continuing operations, assets
    and liabilities of Host Marriott Corporation and its subsidiaries.

    On December 15, 1998, shareholders of Host Marriott Corporation approved a
    plan to reorganize Host Marriott's business operations through the spin-off
    of Host Marriott's senior living business as part of Crestline and the
    contribution of Host Marriott's hotels and certain other assets and
    liabilities to a newly formed Delaware limited partnership, Host Marriott,
    L.P. Host Marriott merged into HMC Merger Corporation (the "Merger"), a
    newly formed Maryland corporation (renamed Host Marriott Corporation) which
    intends to qualify, effective January 1, 1999, as a REIT and is the sole
    general partner of the Operating Partnership. On December 29, 1998, Host
    Marriott completed the previously announced spin-off of Crestline through a
    taxable stock dividend to its shareholders. Each Host Marriott shareholder
    of record on December 28, 1998 received one share of Crestline for every ten
    shares of Host Marriott Corporation owned. In connection with the REIT
    Conversion, Host Marriott contributed its hotels and substantially all of
    its other assets and liabilities to the Operating Partnership and
    subsidiaries (the "Contribution") in exchange for units of partnership
    interest in the Operating Partnership. The Contribution was accounted for at
    Host Marriott's historical basis. As of June 16, 2000, Host REIT owned
    approximately 77% of the Operating Partnership.

2.  Summary of Significant Accounting Policies

    The accompanying unaudited condensed consolidated financial statements of
    the Company and its subsidiaries have been prepared without audit. Certain
    information and footnote disclosures normally included in financial
    statements presented in accordance with accounting principles generally
    accepted in the United States have been condensed or omitted. The Company
    believes the disclosures made are adequate to make the information presented
    not misleading. However, the unaudited condensed consolidated financial
    statements should be read in conjunction with the consolidated financial
    statements and notes thereto included in the Company's annual report on Form
    10-K for the fiscal year ended December 31, 1999.

    In the opinion of the Company, the accompanying unaudited condensed
    consolidated financial statements reflect all adjustments necessary to
    present fairly the financial position of the Company as of June 16, 2000 and
    December 31, 1999, and the results of operations for the twelve and twenty-
    four weeks ended June 16, 2000 and June 18, 1999, and cash flows for the
    twenty-four weeks ended June 16, 2000 and June 18, 1999. Interim results are
    not necessarily indicative of fiscal year performance because of the impact
    of seasonal and short-term variations.

                                      -7-
<PAGE>

                              HOST MARRIOTT, L.P.
             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (unaudited)


   Certain reclassifications were made to the prior year financial statements to
   conform to the current presentation.

   The Company's leases have initial terms ranging from 2 to 10 years, subject
   to earlier termination upon the occurrence of certain contingencies, as
   defined.  Effective November 15, 1999, the leases with Crestline were amended
   to give Crestline the right to renew each of these leases for up to four
   additional terms of seven years each. The rent due under each lease is the
   greater of base rent or percentage rent, as defined.  Percentage rent
   applicable to room, food and beverage and other types of hotel sales varies
   by lease and is calculated by multiplying fixed percentages by the total
   amounts of such revenues over specified threshold amounts.  Both the minimum
   rent and the revenue thresholds used in computing percentage rents are
   subject to annual adjustments based on increases in the United States
   Consumer Price Index and the Labor Index, as defined.

   The Company recognizes percentage rent when all contingencies have been met,
   that is, when annual thresholds for percentage rent have been met or
   exceeded. Percentage rent received pursuant to the leases but not recognized
   is included on the balance sheet as deferred rent. Contingent rental revenue
   of $168 million and $138 million, respectively, for the twelve weeks ended
   June 16, 2000 and June 18, 1999, and $291 million and $253 million,
   respectively, for the twenty-four weeks ended June 16, 2000 and June 18,
   1999, have been deferred.

3. Earnings Per Unit

   Basic earnings per unit is computed by dividing net income available to
   common unitholders by the weighted average number of common units
   outstanding. Diluted earnings per unit is computed by dividing net income
   available to common unitholders as adjusted for potentially dilutive
   securities, by the weighted average number of common units outstanding plus
   other potentially dilutive securities.  Dilutive securities may include units
   distributed to Host Marriott Corporation for Host Marriott Corporation common
   shares granted under comprehensive stock plans and the Convertible Preferred
   Securities. Dilutive securities may also include those common and preferred
   Operating Partnership Units ("OP Units") issuable or outstanding that are
   held by minority partners which are assumed to be converted. No effect is
   shown for securities if they are anti-dilutive.

                                      -8-
<PAGE>

                              HOST MARRIOTT, L.P.
             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (unaudited)

<TABLE>
<CAPTION>
                                                                               Twelve Weeks Ended
                                                   --------------------------------------------------------------------------
                                                              June 16, 2000                         June 18, 1999
                                                   ------------------------------------  ------------------------------------
                                                     Income         Units      Per Unit    Income         Units      Per Unit
                                                   (Numerator)   (Denominator)  Amount   (Numerator)   (Denominator)  Amount
                                                   ------------------------------------  ------------------------------------
<S>                                                <C>           <C>          <C>        <C>           <C>          <C>
   Net Loss......................................        $(68)      283.6        $(.24)        $(42)      292.5        $(.15)
   Distributions on preferred limited partner
    units and Preferred OP Units.................          (5)         --         (.02)          --          --           --
   Basic loss available to common                        ----       -----        -----         ----       -----        -----
   unitholders per unit..........................         (73)      283.6         (.26)         (42)      292.5         (.15)
   Assuming distribution of units to Host
    Marriott Corporation for Host Marriott
    Corporation common shares granted under
    the Host Marriott comprehensive stock
    plan, less shares assumed purchased at
    average market price.........................          --          --           --           --          --           --
   Assuming conversion of Preferred OP
    Units........................................          --          --           --           --          --           --
   Assuming issuance of minority OP Units
    issuable under certain purchase
    agreements...................................          --          --           --           --          --           --
   Assuming conversion of Convertible
    Preferred Securities.........................          --          --           --           --          --           --
                                                         ----       -----        -----         ----       -----        -----
   Diluted Loss per Unit.........................        $(73)      283.6        $(.26)        $(42)      292.5        $(.15)
                                                         ====       =====        =====         ====       =====        =====
</TABLE>

<TABLE>
<CAPTION>

                                                                            Twenty-four Weeks Ended
                                                   --------------------------------------------------------------------------
                                                              June 16, 2000                         June 18, 1999
                                                   ------------------------------------  ------------------------------------
                                                      Income       Units      Per Unit      Income       Units      Per Unit
                                                    (Numerator) (Denominator)  Amount     (Numerator) (Denominator)  Amount
                                                   ------------------------------------  ------------------------------------
<S>                                                <C>          <C>           <C>         <C>         <C>          <C>
   Net Loss......................................       $(137)      284.4        $(.48)        $(98)      292.0        $(.34)
   Distributions on preferred limited partner
    units and Preferred OP Units.................         (10)         --         (.04)          --          --           --
                                                        -----       -----        -----         ----       -----        -----
   Basic loss available to common
    unitholders per unit.........................        (147)      284.4         (.52)         (98)      292.0         (.34)
   Assuming distribution of units to Host
    Marriott Corporation for Host Marriott
    Corporation common shares granted under
    the Host Marriott comprehensive stock
    plan, less shares assumed purchased at
    average market price.........................          --          --           --           --          --           --
   Assuming conversion of Preferred OP
    Units........................................          --          --           --           --          --           --
   Assuming issuance of minority OP Units
    issuable under certain purchase
    agreements...................................          --          --           --           --          --           --
   Assuming conversion of Convertible
    Preferred Securities.........................          --          --           --           --          --           --
                                                        -----       -----        -----         ----       -----        -----
   Diluted Loss per Unit.........................       $(147)      284.4        $(.52)        $(98)      292.0        $(.34)
                                                        =====       =====        =====         ====       =====        =====
</TABLE>

                                      -9-
<PAGE>

                              HOST MARRIOTT, L.P.
             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (unaudited)

4. Unit Repurchases

   In September 1999, the Board of Directors of Host Marriott Corporation
   approved the repurchase, from time to time on the open market and/or in
   privately negotiated transactions, of up to 22 million of the outstanding
   shares of Host REIT common stock, OP Units, or a corresponding amount (based
   on the appropriate conversion ratio) of Host REIT's Convertible Preferred
   Securities. Additionally, under the terms of the partnership agreement, an
   equivalent number of OP Units will also be repurchased on a one-to-one basis
   from Host Marriott Corporation. Such repurchases will be made at management's
   discretion, subject to market conditions, and may be suspended at any time at
   Host Marriott Corporation's discretion. During the twelve weeks ended March
   24, 2000, Host Marriott repurchased approximately 4.9 million common shares,
   325,000 OP Units, and 435,000 shares of the Convertible Preferred Securities
   for a total investment of $62 million. During the first quarter of 2000, we
   extinguished approximately $22 million of the convertible debt obligation to
   Host REIT through the purchase of 435,000 shares of Host REIT's Convertible
   Preferred Securities on the open market. We recorded an extraordinary gain of
   approximately $5 million on this transaction, based on the discount at which
   we purchased the Convertible Preferred Securities. No repurchases were made
   during the second quarter of 2000. Since the inception of the program in
   September 1999, Host Marriott has spent, in the aggregate, approximately $150
   million to repurchase 16.2 million equivalent shares.

5. Dividends and Distributions Payable

   On March 23, 2000 and June 21, 2000, the Board of Directors of Host Marriott
   declared quarterly cash dividends of $0.21 per share of Host Marriott
   Corporation common stock and corresponding distributions of $0.21 per unit of
   limited partnership interest. The first quarter dividends and distributions
   were paid on April 14, 2000 to shareholders and unitholders of record on
   March 31, 2000. The second quarter dividends and distributions were paid on
   July 14, 2000 to shareholders and unitholders of record on June 30, 2000.

   On March 23, 2000 and June 21, 2000, Host Marriott declared quarterly
   distributions of $0.625 per cumulative redeemable preferred limited partner
   unit, which were paid on April 14, 2000 and July 14, 2000 to unitholders of
   record on March 31, 2000 and June 30, 2000.

6. Acquisitions and Developments

   In February 2000, construction of the 717-room Tampa Waterside Marriott
   adjacent to the convention center in downtown Tampa, Florida was completed at
   a total development cost of approximately $104 million, not including a $16
   million tax subsidy provided by the City of Tampa.

   On May 16, 2000, the Company acquired a non-controlling partnership interest
   in the JWDC Limited Partnership, which owns the JW Marriott Hotel, a 772-room
   hotel located on Pennsylvania Avenue in Washington, DC.  The Company, which
   previously held a small interest in the venture, invested approximately $40
   million in the form of a preferred equity contribution.

7. Debt Issuances and Refinancings

   In February 2000, the Company refinanced the $80 million mortgage on
   Marriott's Harbor Beach Resort property in Fort Lauderdale, Florida.  The new
   mortgage is for $84 million, at a rate of 8.58%, and matures in March 2007.

                                     -10-
<PAGE>

                              HOST MARRIOTT, L.P.
             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (unaudited)


    During June 2000, the Company modified its bank credit facility. As
    modified, the total facility has been permanently reduced to $775 million,
    consisting of a $150 million term loan and a $625 million revolver. In
    addition, the original term was extended for two additional years, through
    August 2003. As of June 16, 2000, $176 million is outstanding under the bank
    credit facility, and the available capacity under the line of credit balance
    is $599 million. In connection with the renegotiation of the bank credit
    facility, the Company recognized an extraordinary loss of approximately $2
    million, representing the write-off of deferred financing costs and certain
    fees paid to the lender.

8.  Geographic Information

    As of June 16, 2000, the Company's foreign operations consisted of four
    hotel properties located in Canada. There were no intercompany sales between
    the properties and the Company. The following table presents revenues for
    each of the geographical areas in which the Company owns hotels (in
    millions):

<TABLE>
<CAPTION>
                                                        Twelve Weeks Ended   Twenty-four Weeks Ended
                                                        ------------------   -----------------------
                                                        June 16,  June 18,     June 16,    June 18,
                                                          2000      1999         2000        1999
                                                         -----     -----        -----       -----
   <S>                                                   <C>       <C>          <C>         <C>
   United States....................................     $ 197     $ 199        $ 379       $ 389
   International....................................         2         4            5           6
                                                         -----     -----        -----       -----
     Total..........................................     $ 199     $ 203        $ 384       $ 395
                                                         =====     =====        =====       =====
</TABLE>

9.  Comprehensive Income

    The Company's other comprehensive income consists of unrealized gains and
    losses on foreign currency translation adjustments and the right to receive
    cash from Host Marriott Services Corporation subsequent to the exercise of
    the options held by certain former and current employees of Marriott
    International, pursuant to the distribution agreement between the Company
    and Host Marriott Services Corporation. For the twelve and twenty-four weeks
    ended June 16, 2000, comprehensive loss totaled $67 million and $137
    million, respectively. The comprehensive loss was $40 million and $97
    million for the twelve and twenty-four weeks ended June 18, 1999,
    respectively. As of June 16, 2000 and December 31, 1999, the Company's
    accumulated other comprehensive income was $4 million.

10. Summarized Lease Pool Financial Statements

    As discussed in Note 2, as of June 16, 2000, almost all the properties of
    the Company and its subsidiaries were leased to Crestline. In conjunction
    with these leases, Crestline and certain of its subsidiaries entered into
    limited guarantees of the lease obligations of each lessee. The full-service
    hotel leases are grouped into four lease pools, with Crestline's guarantee
    limited to the greater of 10% of the aggregate rent payable for the
    preceding year or 10% of the aggregate rent payable under all leases in the
    respective pool. Additionally, the lessee's obligation under each lease
    agreement is guaranteed by all other lessees in the respective lease pool.
    As a result, the Company believes that the operating results of each full-
    service lease pool may be material to the Company's financial statements.
    Financial information of certain pools related to the sublease agreements
    for limited service properties are not presented, as the Company believes
    they are not material to the Company's financial statements. Financial
    information of Crestline may be found in its quarterly and annual filings
    with the Securities and Exchange Commission. Further information regarding
    these leases and Crestline's limited guarantees may be found in the
    Company's annual report on Form 10-K for the fiscal year ended December 31,
    1999. The results of operations for the twelve and twenty-four weeks ended
    June 16, 2000 and June 18, 1999 and summarized balance sheet

                                     -11-
<PAGE>

                              HOST MARRIOTT, L.P.
             NOTEST TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (unaudited)

    data as of June 16, 2000 and December 31, 1999 of the lease pools in which
    the Company's hotels are organized are as follows (in millions):

                                     -12-
<PAGE>

                              HOST MARRIOTT, L.P.
             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (unaudited)


<TABLE>
<CAPTION>
                                                           Twelve Weeks Ended June 16, 2000
                                                          ---------------------------------
                                                     Pool 1   Pool 2   Pool 3   Pool 4   Combined
                                                     ------   ------   ------   ------   --------
<S>                                                  <C>      <C>      <C>      <C>      <C>
   Hotel Sales
        Rooms......................................    $152     $170     $147     $159     $  628
        Food and beverage..........................      69       87       72       91        319
        Other......................................      16       17       24       22         79
                                                       ----     ----     ----     ----     ------
             Total hotel sales.....................     237      274      243      272      1,026
   Operating Costs and Expenses
        Rooms......................................      35       39       34       34        142
        Food and beverage..........................      52       61       51       62        226
        Other......................................      59       58       59       61        237
        Management fees............................      13       20       12       20         65
        Lease expense..............................      75       91       83       92        341
                                                       ----     ----     ----     ----     ------
             Total operating expenses..............     234      269      239      269      1,011
                                                       ----     ----     ----     ----     ------
   Operating Profit................................       3        5        4        3         15
   Corporate and Interest Expenses.................      --       --       --       (1)        (1)
                                                       ----     ----     ----     ----     ------
         Income before taxes.......................       3        5        4        2         14
         Income taxes..............................      (1)      (2)      (2)      (1)        (6)
                                                       ----     ----     ----     ----     ------
             Net Income............................    $  2     $  3     $  2     $  1     $    8
                                                       ====     ====     ====     ====     ======
</TABLE>

<TABLE>
<CAPTION>
                                                          Twelve Weeks Ended June 18, 1999
                                                          --------------------------------
                                                     Pool 1   Pool 2   Pool 3   Pool 4  Combined
                                                     ------   ------   ------   ------  ---------
<S>                                                  <C>      <C>      <C>      <C>     <C>
   Hotel Sales
        Rooms......................................    $144     $157     $141     $145      $587
        Food and beverage..........................      68       76       67       81       292
        Other......................................      16       16       19       19        70
                                                       ----     ----     ----     ----      ----
             Total hotel sales.....................     228      249      227      245       949
   Operating Costs and Expenses
        Rooms......................................      33       36       34       31       134
        Food and beverage..........................      51       55       47       56       209
        Other......................................      57       55       57       55       224
        Management fees............................      11       16       10       17        54
        Lease expense..............................      72       83       76       83       314
                                                       ----     ----     ----     ----      ----
             Total operating expenses..............     224      245      224      242       935
                                                       ----     ----     ----     ----      ----
   Operating Profit................................       4        4        3        3        14
   Corporate and Interest Expenses.................      --       (1)      --       --        (1)
                                                       ----     ----     ----     ----      ----
         Income before taxes.......................       4        3        3        3        13
         Income taxes..............................      (2)      (1)      (1)      --        (4)
                                                       ----     ----     ----     ----      ----
             Net Income............................    $  2     $  2     $  2     $  3      $  9
                                                       ====     ====     ====     ====      ====
</TABLE>

                                     -13-
<PAGE>

                              HOST MARRIOTT, L.P.
             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (unaudited)

<TABLE>
<CAPTION>
                                                         Twenty-four Weeks Ended June 16, 2000
                                                         -------------------------------------
                                                     Pool 1   Pool 2   Pool 3   Pool 4   Combined
                                                     ------   ------   ------   ------   --------
<S>                                                  <C>      <C>      <C>      <C>      <C>
   Hotel Sales
        Rooms......................................    $281     $313     $272     $292     $1,158
        Food and beverage..........................     128      153      132      166        579
        Other......................................      30       30       43       41        144
                                                       ----     ----     ----     ----     ------
             Total hotel sales.....................     439      496      447      499      1,881
   Operating Costs and Expenses
        Rooms......................................      66       76       62       63        267
        Food and beverage..........................      96      111       95      113        415
        Other......................................     111      109      109      113        442
        Management fees............................      22       35       22       38        117
        Lease expense..............................     137      157      152      167        613
                                                       ----     ----     ----     ----     ------
             Total operating expenses..............     432      488      440      494      1,854
                                                       ----     ----     ----     ----     ------
   Operating Profit................................       7        8        7        5         27
   Corporate and Interest Expenses.................      (1)      (1)      --       (1)        (3)
                                                       ----     ----     ----     ----     ------
         Income before taxes.......................       6        7        7        4         24
         Income taxes..............................      (2)      (3)      (3)      (2)       (10)
                                                       ----     ----     ----     ----     ------
             Net Income............................    $  4     $  4     $  4     $  2     $   14
                                                       ====     ====     ====     ====     ======
</TABLE>

<TABLE>
<CAPTION>
                                                        Twenty-four Weeks Ended June 18, 1999
                                                        -------------------------------------
                                                     Pool 1   Pool 2   Pool 3   Pool 4   Combined
                                                     ------   ------   ------   ------   --------
<S>                                                  <C>      <C>      <C>      <C>      <C>
   Hotel Sales
        Rooms......................................    $273     $294     $268     $273     $1,108
        Food and beverage..........................     127      137      128      153        545
        Other......................................      30       29       38       34        131
                                                       ----     ----     ----     ----     ------
             Total hotel sales.....................     430      460      434      460      1,784
   Operating Costs and Expenses
        Rooms......................................      64       68       63       58        253
        Food and beverage..........................      97      102       91      104        394
        Other......................................     110      107      107      103        427
        Management fees............................      20       30       21       33        104
        Lease expense..............................     133      147      146      157        583
                                                       ----     ----     ----     ----     ------
             Total operating expenses..............     424      454      428      455      1,761
                                                       ----     ----     ----     ----     ------
   Operating Profit................................       6        6        6        5         23
   Corporate and Interest Expenses.................      (1)      (1)      (1)      (1)        (4)
                                                       ----     ----     ----     ----     ------
         Income before taxes.......................       5        5        5        4         19
         Income taxes..............................      (2)      (2)      (2)      (1)        (7)
                                                       ----     ----     ----     ----     ------
             Net Income............................    $  3     $  3     $  3     $  3     $   12
                                                       ====     ====     ====     ====     ======
</TABLE>

<TABLE>
<CAPTION>
                                                               As of June 16, 2000
                                                               -------------------
                                                     Pool 1   Pool 2   Pool 3   Pool 4   Combined
                                                     ------   ------   ------   ------   --------
<S>                                                  <C>      <C>      <C>      <C>      <C>
   Assets..........................................    $ 52     $ 48     $ 53     $ 50     $  203
   Liabilities.....................................      45       43       48       48        184
   Equity..........................................       7        5        5        2         19
</TABLE>

<TABLE>
<CAPTION>
                                                               As December 31, 1999
                                                              ---------------------
                                                     Pool 1   Pool 2   Pool 3   Pool 4   Combined
                                                     ------   ------   ------   ------   --------
<S>                                                  <C>      <C>      <C>      <C>      <C>
   Assets..........................................    $ 39     $ 37     $ 41     $ 38     $  155
   Liabilities.....................................      36       36       40       38        150
   Equity..........................................       3        1        1       --          5
</TABLE>

                                     -14-
<PAGE>

                              HOST MARRIOTT, L.P.
             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (unaudited)

11. Supplemental Guarantor and Non-Guarantor Subsidiary Information

    All subsidiaries of the operating partnership guarantee the Company's senior
    notes except those among the twenty full service hotels listed below and HMH
    HPT Residence Inn, LLC and HMH HPT Courtyard, LLC, the lessees of the
    Residence Inn and Courtyard properties, respectively. The separate financial
    statements of each guaranteeing subsidiary (each, a "Guarantor Subsidiary")
    are not presented because management has concluded that such financial
    statements are not material to investors. The guarantee of each Guarantor
    Subsidiary is full and unconditional and joint and several and each
    Guarantor Subsidiary is a wholly owned subsidiary of the Company. The non-
    guarantor subsidiaries (the "Non-Guarantor Subsidiaries") own the following
    full-service hotels: the Albany Marriott; Atlanta Marriott Marquis; Grand
    Hyatt, Atlanta; Marriott's Harbor Beach Resort; Hartford Marriott; Hyatt
    Regency, Cambridge; Hyatt Regency, Reston; Manhattan Beach Marriott;
    Minneapolis Southwest Marriott; New York Marriott Marquis; Ontario Airport
    Marriott; Pittsburgh City Center Marriott; The Ritz-Carlton, Amelia Island;
    San Diego Marriott Hotel and Marina; San Diego Mission Valley; Swissotel,
    Atlanta; Swissotel, Boston; Swissotel, Chicago; The Drake (Swissotel) New
    York; and the Oklahoma City Waterford Marriott.

    The following condensed combined consolidating information sets forth the
    financial position as of June 16, 2000 and December 31, 1999, and results of
    operations for the twelve weeks and twenty-four weeks ended June 16, 2000
    and June 18, 1999, respectively, and cash flows for the twenty-four weeks
    ended June 16, 2000 and June 18, 1999 of the parent, Guarantor Subsidiaries
    and the Non-Guarantor Subsidiaries.

                                     -15-
<PAGE>

                              HOST MARRIOTT, L.P.
             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (unaudited)

          Supplemental Condensed Combined Consolidated Balance Sheets
                                 (in millions)

                                 June 16, 2000

<TABLE>
<CAPTION>
                                                                                     Non
                                                                    Guarantor     Guarantor
                                                          Parent   Subsidiaries  Subsidiaries  Eliminations  Consolidated
                                                          -------  ------------  ------------  ------------- ------------
<S>                                                       <C>      <C>           <C>           <C>            <C>
   Property and equipment, net..........................   $1,323        $3,577        $2,208  $         --         $7,108
   Notes and other receivables..........................      652            51            23          (553)           173
   Rent receivable......................................       17            36            36            --             89
   Investments in affiliate.............................    1,403            --            --        (1,307)            96
   Other assets.........................................      163           210           206           (40)           539
   Cash and cash equivalents............................       89            43            23            --            155
                                                           ------        ------        ------       -------         ------
    Total assets........................................   $3,647        $3,917        $2,496       $(1,900)        $8,160
                                                           ======        ======        ======       =======         ======

   Debt.................................................   $1,241        $3,027        $1,157       $  (318)        $5,107
   Convertible debt obligations to Host Marriott........      492            --            --            --            492
   Deferred income taxes................................        9            32             7            --             48
   Deferred rent........................................       64           157            70            --            291
   Other liabilities....................................      285           343           186          (275)           539
                                                           ------        ------        ------       -------         ------
    Total liabilities...................................    2,091         3,559         1,420          (593)         6,477

   Minority interests...................................        9            56            71            --            136
   Limited partner interest of third parties at
    redemption value....................................      628            --            --            --            628
   Owner's capital......................................      919           302         1,005        (1,307)           919
                                                           ------        ------        ------       -------         ------
    Total liabilities and owner's capital...............   $3,647        $3,917        $2,496       $(1,900)        $8,160
                                                           ======        ======        ======       =======         ======

                               December 31, 1999

                                                                                     Non
                                                                    Guarantor     Guarantor
                                                          Parent   Subsidiaries  Subsidiaries  Eliminations   Consolidated
                                                          ------   ------------  ------------  ------------   ------------
   Property and equipment, net..........................   $1,227        $3,642        $2,239  $         --         $7,108
   Notes and other receivables..........................      685            51            24          (585)           175
   Rent receivable......................................       11            23            38            --             72
   Investments in affiliate.............................    1,593            --            --        (1,544)            49
   Other assets.........................................      175           214           175           (49)           515
   Cash and cash equivalents............................      199            58            20            --            277
                                                           ------        ------        ------       -------         ------
    Total assets........................................   $3,890        $3,988        $2,496       $(2,178)        $8,196
                                                           ======        ======        ======       =======         ======

   Debt.................................................   $1,189        $3,062        $1,168       $  (350)        $5,069
   Convertible debt obligation to Host Marriott.........      514            --            --            --            514
   Deferred income taxes................................       17            32            --            --             49
   Other liabilities....................................      314           346           198          (284)           574
                                                           ------        ------        ------       -------         ------
    Total liabilities...................................    2,034         3,440         1,366          (634)         6,206

   Minority interests...................................        9            54            73            --            136
   Limited partner interest of third parties at
    redemption value....................................      533            --            --            --            533
   Owner's capital......................................    1,314           494         1,057        (1,544)         1,321
                                                           ------        ------        ------       -------         ------
    Total liabilities and owner's capital...............   $3,890        $3,988        $2,496       $(2,178)        $8,196
                                                           ======        ======        ======       =======         ======
</TABLE>

                                     -16-
<PAGE>

                              HOST MARRIOTT, L.P.
             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (unaudited)

            Supplemental Condensed Combined Statements of Operations
                                 (in millions)

                        Twelve Weeks Ended June 16, 2000

<TABLE>
<CAPTION>
                                                                                       Non
                                                                     Guarantor      Guarantor
                                                          Parent   Subsidiaries   Subsidiaries   Eliminations Consolidated
                                                          -------  -------------  -------------  ------------ -------------
<S>                                                       <C>      <C>            <C>            <C>           <C>
   REVENUES.............................................    $  4           $ 90           $ 71            $34         $ 199
   Depreciation.........................................     (17)           (37)           (21)            --           (75)
   Property-level expenses..............................     (11)           (24)           (28)            --           (63)
   Minority interest....................................      (2)            (2)            (1)            --            (5)
   Interest expense.....................................     (33)           (61)           (23)            13          (104)
   Corporate expenses...................................      (1)            (6)            (3)            --           (10)
   Other expenses.......................................      (4)            (1)            (1)            --            (6)
                                                            ----           ----           ----            ---         -----
   (Loss) income before income taxes....................     (64)           (41)            (6)            47           (64)
   (Provisions for) benefit from income taxes...........      (2)            --             --             --            (2)
                                                            ----           ----           ----            ---         -----
   (Loss) income before extraordinary item..............     (66)           (41)            (6)            47           (66)
   Extraordinary loss...................................      (2)            --             --             --            (2)
                                                            ----           ----           ----            ---         -----
   NET INCOME (LOSS)....................................    $(68)          $(41)          $ (6)           $47         $ (68)
                                                            ====           ====           ====            ===         =====
</TABLE>

                        Twelve Weeks Ended June 18, 1999

<TABLE>
<CAPTION>
                                                                                      Non
                                                                     Guarantor      Guarantor
                                                          Parent   Subsidiaries   Subsidiaries  Eliminations  Consolidated
                                                          ------   ------------   ------------  ------------  -------------
<S>                                                       <C>      <C>            <C>            <C>           <C>
   REVENUES.............................................    $ 34           $104           $ 64            $ 1         $ 203
   Depreciation.........................................     (15)           (35)           (17)            --           (67)
   Property-level expenses..............................     (11)           (23)           (28)            --           (62)
   Minority interest....................................      (2)            (4)            (1)            --            (7)
   Interest expense.....................................     (42)           (55)           (25)            13          (109)
   Corporate expenses...................................      (2)            (5)            (1)            --            (8)
   Other expenses.......................................      (2)            (1)            (1)            --            (4)
                                                            ----           ----           ----            ---         -----
   (Loss) income before income taxes....................     (40)           (19)            (9)            14           (54)
   Provision for income tax.............................      (1)            --             --             --            (1)
                                                            ----           ----           ----            ---         -----
   (Loss) income before extraordinary item..............     (41)           (19)            (9)            14           (55)
   Extraordinary gain...................................      --             --             13             --            13
                                                            ----           ----           ----            ---         -----
   NET INCOME (LOSS)....................................    $(41)          $(19)          $  4            $14         $ (42)
                                                            ====           ====           ====            ===         =====
</TABLE>

                                     -17-
<PAGE>

                              HOST MARRIOTT, L.P.
             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (unaudited)

           Supplemental Condensed Combined Statements of Operations
                                 (in millions)

                     Twenty-four Weeks Ended June 16, 2000

<TABLE>
<CAPTION>
                                                                                      Non
                                                                    Guarantor      Guarantor
                                                          Parent   Subsidiaries   Subsidiaries   Eliminations  Consolidated
                                                          ------   ------------   ------------   ------------  -------------
<S>                                                       <C>      <C>            <C>            <C>           <C>
   REVENUES.............................................   $  (2)         $ 174           $139            $73         $ 384
   Depreciation.........................................     (35)           (73)           (41)            --          (149)
   Property-level expenses..............................     (23)           (44)           (55)            --          (122)
   Minority interest....................................      (3)            (6)            (1)            --           (10)
   Interest expense.....................................     (63)          (123)           (46)            24          (208)
   Corporate expenses...................................      (1)           (12)            (7)            --           (20)
   Other expenses.......................................      (9)            (2)            (1)            --           (12)
                                                           -----          -----           ----            ---         -----
   (Loss) income before income taxes....................    (136)           (86)           (12)            97          (137)
   (Provision for) benefit from income taxes............      (4)             1             --             --            (3)
                                                           -----          -----           ----            ---         -----
   (Loss) income before extraordinary item..............    (140)           (85)           (12)            97          (140)
   Extraordinary gain...................................       3             --             --             --             3
                                                           -----          -----           ----            ---         -----
   NET INCOME (LOSS)....................................   $(137)         $ (85)          $(12)           $97         $(137)
                                                           =====          =====           ====            ===         =====
</TABLE>

                     Twenty-four Weeks Ended June 18, 1999

<TABLE>
<CAPTION>
                                                                                      Non
                                                                    Guarantor      Guarantor
                                                          Parent   Subsidiaries   Subsidiaries   Eliminations  Consolidated
                                                          ------   ------------   ------------   ------------  ------------
<S>                                                       <C>      <C>            <C>            <C>           <C>
   REVENUES.............................................    $ 47          $ 205           $118            $25         $ 395
   Depreciation.........................................     (30)           (70)           (35)            --          (135)
   Property-level expenses..............................     (21)           (45)           (54)            --          (120)
   Minority interest....................................      (3)            (7)            (1)            --           (11)
   Interest expense.....................................     (83)          (103)           (46)            15          (217)
   Corporate expenses...................................      (2)            (9)            (4)            --           (15)
   Other expenses.......................................      (4)            (1)            (1)            --            (6)
                                                            ----          -----           ----            ---         -----
   (Loss) income before income taxes....................     (96)           (30)           (23)            40          (109)
   Provision for income tax.............................      (2)            --             --             --            (2)
                                                            ----          -----           ----            ---         -----
   (Loss) income before extraordinary item..............     (98)           (30)           (23)            40          (111)
   Extraordinary gain...................................      --             --             13             --            13
                                                            ----          -----           ----            ---         -----
   NET INCOME (LOSS)....................................    $(98)         $ (30)          $(10)           $40         $ (98)
                                                            ====          =====           ====            ===         =====
</TABLE>

                                     -18-
<PAGE>

                              HOST MARRIOTT, L.P.
             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (unaudited)


            Supplemental Condensed Combined Statements of Cash Flows
                                 (in millions)

                     Twenty-four Weeks Ended June 16, 2000

<TABLE>
<CAPTION>
                                                                                                   Non
                                                                                 Guarantor      Guarantor
                                                                      Parent   Subsidiaries   Subsidiaries  Consolidated
                                                                      ------   ------------   ------------  ------------
OPERATING ACTIVITIES
<S>                                                                   <C>      <C>            <C>            <C>
   Cash from operations.............................................   $  34          $ 116           $ 98          $ 248
                                                                       -----          -----           ----          -----
   INVESTING ACTIVITIES
   Cash received from sales of assets...............................      --             --             --             --
   Acquisitions.....................................................     (40)            --             --            (40)
   Capital expenditures and other investments.......................     (45)          (114)           (26)          (185)
   Other............................................................       3             --             --              3
                                                                       -----          -----           ----          -----

   Cash used in investing activities................................     (82)          (114)           (26)          (222)
                                                                       -----          -----           ----          -----
   FINANCING ACTIVITIES
   Issuances of debt................................................     207             --             83            290
   Repayment of debt................................................    (166)            (6)           (91)          (263)
   Issuances of common units........................................       2             --             --              2
   Distributions....................................................    (129)            --             --           (129)
   Redemption or repurchase of OP Units.............................     (47)            --             --            (47)
   Repurchase of Convertible Preferred Securities...................     (15)            --             --            (15)
   Other............................................................      (5)            22             (3)            14
   Transfers to/from Parent.........................................      91            (33)           (58)            --
                                                                       -----          -----           ----          -----

   Cash used in financing activities................................     (62)           (17)           (69)          (148)
                                                                       -----          -----           ----          -----

   INCREASE (DECREASE) IN CASH AND CASH                                $(110)         $ (15)          $  3          $(122)
      EQUIVALENTS...................................................   =====          =====           ====          =====
</TABLE>

                                     -19-
<PAGE>

                              HOST MARRIOTT, L.P.
             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (unaudited)

                     Twenty-four Weeks Ended June 18, 1999

<TABLE>
<CAPTION>
                                                                                                   Non
                                                                                 Guarantor      Guarantor
                                                                      Parent   Subsidiaries   Subsidiaries   Consolidated
                                                                      ------   ------------   ------------   ------------
<S>                                                                   <C>      <C>            <C>            <C>
   OPERATING ACTIVITIES
   Cash (used in) from operations...................................   $  (5)  $        116   $         --   $        111
                                                                      ------   ------------   ------------   ------------
   INVESTING ACTIVITIES
   Cash received from sales of assets...............................       1             34             --             35
   Acquisitions.....................................................      --             --             (4)            (4)
   Capital expenditures and other investments.......................     (49)          (107)           (21)          (177)
   Other............................................................     (17)            --             --            (17)
                                                                      ------   ------------   ------------   ------------

   Cash used in investing activities................................     (65)           (73)           (25)          (163)
                                                                      ------   ------------   ------------   ------------
   FINANCING ACTIVITIES
   Issuances of debt................................................      (2)           256            159            413
   Repayment of debt................................................     (25)          (256)           (65)          (346)
   Distributions....................................................    (130)            --             --           (130)
   Redemption or repurchase of OP Units.............................      (3)            --             --             (3)
   Other............................................................      (8)            --             --             (8)
   Transfers to/from Parent.........................................      65            (12)           (53)            --
                                                                      ------   ------------   ------------   ------------

   Cash (used in) from financing activities.........................    (103)           (12)            41            (74)
                                                                      ------   ------------   ------------   ------------

   INCREASE (DECREASE) IN CASH AND CASH
      EQUIVALENTS...................................................  $ [173)  $         31   $         16   $       (126)
                                                                      ======   ============   ============   ============
</TABLE>

12.  Contingencies

     On March 16, 1998, limited partners in several limited partnerships filed a
     lawsuit, the Texas Multi-Partnership Lawsuit, naming the Company, Marriott
     International Inc. ("Marriott International"), and others as defendants and
     claiming that they conspired to sell hotels to the partnerships for
     inflated prices, that they charged the partnerships excessive management
     fees to operate the partnerships' hotels and otherwise breached their
     fiduciary duties. The lawsuit involved the following partnerships:
     Courtyard by Marriott Limited Partnership, Courtyard by Marriott II Limited
     Partnership, Marriott Residence Inn Limited Partnership, Marriott Residence
     Inn II Limited Partnership, Fairfield Inn by Marriott Limited Partnership,
     Desert Springs Marriott Limited Partnership and Atlanta Marriott Marquis
     Limited Partnership. Three other lawsuits, collectively, the Partnership
     Lawsuits, involving limited partners of some of the aforementioned
     partnerships had also been filed, at various dates beginning in June 1996,
     and include similar actions naming the Company, Marriott International and
     others as defendants.

     On February 24, 2000, the Company and Marriott International announced that
     we have executed a definitive settlement agreement to resolve the Texas
     Multi-Partnership Lawsuit and the Partnership Lawsuits. The understanding,
     which is still subject to numerous conditions, including court approval and
     various consents, has two principal features. First, the Company and
     Marriott International expect, through a joint venture to be formed between
     their affiliates, to acquire the equity interest of the limited partners in
     the two Courtyard partnerships for approximately $372 million. The
     Company's share of the acquisition costs of the Courtyard partnerships is
     expected to be approximately $82 million. Second, the Company and Marriott
     International will each pay approximately $31 million to the limited
     partners of the remaining partnerships in exchange for settlement of the
     litigation and a full release of claims. As a result of the proposed
     settlement, the Company recorded a non-recurring, pre-tax charge of $40
     million during the fourth quarter of 1999.

                                     -20-
<PAGE>

                              HOST MARRIOTT, L.P.
             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (unaudited)

    The Company has also been named a defendant in other lawsuits involving
    various hotel partnerships. The lawsuits are ongoing, and although the
    ultimate resolution of lawsuits is not determinable, the Company does not
    believe the outcome will be material to the financial position, statement of
    operations or cash flows of the Company.

13. Subsequent Event

    On June 21, 2000, the additions of a 500-room tower and 15,000 square feet
    of meeting space at the Orlando World Center Marriott were completed at an
    approximate development cost of $84 million.

                                     -21-
<PAGE>

                              HOST MARRIOTT, L.P.
                    MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

Forward-looking Statements
--------------------------

Certain matters discussed herein are forward-looking statements. We have based
these forward-looking statements on our current expectations and projections
about future events. Certain, but not necessarily all, of such forward-looking
statements can be identified by the use of forward-looking terminology, such as
"believes," "expects," "may," "will," "should," "estimates," or "anticipates,"
or the negative thereof or other variations thereof or comparable terminology.
All forward-looking statements involve known and unknown risks, uncertainties
and other factors which may cause our actual transactions, results, performance
or achievements to be materially different from any future transactions,
results, performance or achievements expressed or implied by such forward-
looking statements.  Although we believe the expectations reflected in such
forward-looking statements are based upon reasonable assumptions, we can give no
assurance that our expectations will be attained or that any deviations will not
be material. We disclaim any obligations or undertaking to publicly release any
updates or revisions to any forward-looking statement contained in this
quarterly report on Form 10-Q to reflect any change in our expectations with
regard thereto or any change in events, conditions or circumstances on which any
such statement is based.

Results of Operations
---------------------

Revenues.  Our revenues primarily represent rental income from our leased
hotels, net gains on property transactions, interest income and equity in
earnings of affiliates. As discussed in Note 2 to the financial statements,
percentage rental revenues of $168 million and $138 million for the twelve weeks
ended June 16, 2000 and June 18, 1999, respectively, and $291 million and $253
for the twenty-four weeks ended June 16, 2000 and June 18, 1999, respectively,
were deferred in accordance with the Securities and Exchange Commission's Staff
Accounting Bulletin No. 101 ("SAB 101"). Percentage rent will be recognized as
income during the year once specified hotel sales thresholds are achieved.

The table below represents hotel sales from which rental income is computed as
discussed in Note 2 to the condensed consolidated financial statements. The
table is presented in order to facilitate an investor's reconciliation of hotel
sales to rental income.

<TABLE>
<CAPTION>
                                                              Twelve Weeks Ended    Twenty-four Weeks Ended
                                                              ------------------    -----------------------
                                                               June 16,  June 18,     June 16,    June 18,
                                                                 2000      1999         2000        1999
                                                              ---------  --------    ---------    ---------
                                                                 (in millions)           (in millions)
<S>                                                           <C>        <C>         <C>          <C>
Hotel Sales
     Rooms..................................................    $  710    $  672       $1,323      $1,272
     Food and beverage......................................       330       310          604         578
     Other..................................................        82        72          153         135
                                                                ------    ------       ------      ------
          Total hotel sales.................................    $1,122    $1,054       $2,080      $1,985
                                                                ======    ======       ======      ======
</TABLE>

Rental income decreased $4 million, or 2%, to $183 million for the second
quarter of 2000 and decreased $2 million, or less than 1% to $356 million year-
to-date, primarily driven by the sale of five properties in 1999, and partially
offset by the growth in room revenues generated per available room or REVPAR for
comparable properties and the opening of the Tampa Waterside Marriott, which was
placed in service in February 2000. REVPAR increased 7.0% to $130.66 for the
second quarter of 2000 and 5.2% to $126.69 year-to-date for comparable
properties, which consist of the 114 properties owned, directly or indirectly,
by us for the same period of time in each period covered, excluding two
properties where significant expansion at the hotels affected operations and
five properties where reported results were affected by a change in reporting
period. On a comparable basis, average room rates increased approximately 5.9%
and 5.6%, while average occupancy increased less than one percentage point and
decreased less than one percentage point for the second quarter of 2000 and
year-to-date, respectively.

                                     -22-
<PAGE>

                              HOST MARRIOTT, L.P.
                    MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

Depreciation and Amortization.  Depreciation and amortization increased $8
million or 12% for the second quarter of 2000 and increased $14 million or 10%
year-to-date, reflecting an increase in depreciable assets, which is primarily
the result of $361 million in capital expenditures during 1999, partially offset
by net asset disposals of approximately $174 million in connection with the sale
of five hotels during 1999.

Property-level Owner Expenses.  Property-level owner expenses primarily consist
of property taxes, insurance, and ground and equipment rent. These expenses were
$63 million and $62 million for the second quarters of 2000 and 1999,
respectively, and increased less than 2% to $122 million year-to-date,
reflecting, in part, the effect of the sale of five hotel properties in 1999.

Minority Interest Expense.  Minority interest expense decreased 29% to $5
million in the second quarter of 2000 and 9% to $10 million year-to-date.

Interest Expense.  Interest expense decreased 5% to $104 million in the second
quarter of 2000 and decreased 4% to $208 million year-to-date, primarily due to
repayments on the term loan portion of the bank credit facility totaling $225
million during the second half of 1999.

Corporate Expenses.  Corporate expenses were $10 million and $8 million for the
second quarters of 2000 and 1999, respectively, and increased $5 million to $20
million year-to-date, resulting primarily from an increase in compensation
expense related to employee stock plans.

Extraordinary Gain (Loss).  During the first quarter of 2000, we extinguished
approximately $22 million of the convertible debt obligation to Host REIT
through the purchase of 435,000 shares of Host REIT's Convertible Preferred
Securities on the open market. We recorded an extraordinary gain of
approximately $5 million on this transaction, based on the discount at which we
purchased the Convertible Preferred Securities. During the twelve weeks ended
June 16, 2000, we recorded an extraordinary loss of approximately $2 million
representing the write off of deferred financing costs and certain fees paid to
our lender in connection with the renegotiation of the bank credit facility.
During the twelve weeks ended June 18, 1999, we recorded an extraordinary gain
of $13 million on the forgiveness of accrued incentive management fees related
to the renegotiation of the management agreement for the New York Marriott
Marquis.

Net Loss.   Our net loss increased $26 million to $68 million for the second
quarter of 2000 and increased $39 million to $137 million year-to-date.

Net Loss Available to Common Unitholders.   The net loss available to common
unitholders increased $31 million to $73 million for the second quarter of 2000
and increased $49 million to $147 million year-to-date. The net loss available
to common unitholders reflects year-to-date distributions of $10 million on
preferred limited partner units to Host Marriott, which were issued during the
second half of 1999.

COMPARATIVE FFO and EBITDA
--------------------------

We consider Comparative Funds From Operations ("Comparative FFO"), which
consists of Funds From Operations, as defined by the National Association of
Real Estate Investment Trusts, plus contingent rent, as well as our consolidated
earnings before interest expense, income taxes, depreciation, amortization and
other non-cash items (including contingent rent) ("EBITDA") to be indicative
measures of our operating performance due to the significance of our long-lived
assets. Comparative FFO and EBITDA are also useful in measuring our ability to
service debt, fund capital expenditures and expand our business. Furthermore,
management believes that Comparative FFO and EBITDA are meaningful disclosures
that will help shareholders and the investment community to better understand
our financial performance, including

                                     -23-
<PAGE>

                              HOST MARRIOT, L.P.
                    MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

comparing our performance to other Real Estate Investment Trusts. However,
Comparative FFO and EBITDA as presented may not be comparable to FFO and EBITDA
amounts calculated by other companies. This information should not be considered
as an alternative to net income, operating profit, cash from operations, or any
other operating or liquidity performance measure prescribed by generally
accepted accounting principles. Cash expenditures for various long-term assets,
interest expense (for EBITDA purposes only) and income taxes have been, and will
be incurred which are not reflected in the EBITDA and Comparative FFO
presentations.

Comparative FFO available to common unitholders increased $20 million, or 13%,
to $172 million in the second quarter of 2000 and increased $22 million, or 8%,
to $291 million year-to-date. The following is a reconciliation of the loss from
operations before extraordinary items to Comparative FFO (in millions):


<TABLE>
<CAPTION>
                                                                   Twelve Weeks Ended           Twenty-four Weeks Ended
                                                             ------------------------------  ------------------------------
                                                             June 16, 2000   June 18, 1999   June 16, 2000   June 18, 1999
                                                             --------------  --------------  --------------  --------------
<S>                                                          <C>             <C>             <C>             <C>
Funds from Operations
 Loss from operations before extraordinary items...........           $(66)           $(55)          $(140)          $(111)
 Depreciation and amortization.............................             74              67             146             135
 Other real estate activities..............................             (1)             (5)             (1)            (16)
 Partnership adjustments...................................              4              11              11              14
                                                                      ----            ----           -----           -----
Funds from operations of Host LP...........................             11              18              16              22
   Effect on funds from operations of SAB 101..............            166             134             285             247
                                                                      ----            ----           -----           -----
Comparative funds from operations of Host LP...............            177             152             301             269
 Distributions on preferred units..........................             (5)             --             (10)             --
                                                                      ----            ----           -----           -----
Comparative funds from operations of Host LP                          $172            $152           $ 291           $ 269
 available to common unitholders...........................           ====            ====           =====           =====
</TABLE>

EBITDA increased $27 million, or 11%, to $282 million in the second quarter of
2000 and increased $32 million, or 7%, to $513 million year-to-date, reflecting
primarily EBITDA growth from owned properties, partially offset by EBITDA
related to assets sold during 1999. In 2000 and 1999, respectively, Hotel EBITDA
was $122 million and $125 million for the second quarters, and $236 million and
$240 million year-to-date, which does not include deferred rental income of $168
million and $138 million, and $291 million and $253 million for the quarters and
year-to-date, respectively.

The following schedule presents our EBITDA as well as a reconciliation of EBITDA
to the loss from operations before extraordinary items (in millions):

<TABLE>
<CAPTION>
                                                                   Twelve Weeks Ended           Twenty-four Weeks Ended
                                                             ------------------------------  ------------------------------
                                                             June 16, 2000   June 18, 1999   June 16, 2000   June 18, 1999
                                                             --------------  --------------  --------------  --------------
<S>                                                          <C>             <C>             <C>             <C>
EBITDA
   Hotels..................................................           $122            $125            $236            $240
   Office buildings........................................              1               1               1               1
   Interest income.........................................              8               8              17              15
   Corporate and other expenses............................            (17)            (17)            (32)            (28)
   Effect on revenue of SAB 101............................            168             138             291             253
                                                                      ----            ----            ----            ----
EBITDA of Host LP..........................................           $282            $255            $513            $481
                                                                      ====            ====            ====            ====
</TABLE>

                                     -24-
<PAGE>

                              HOST MARRIOTT, L.P.
                    MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

<TABLE>
<CAPTION>
                                                                   Twelve Weeks Ended           Twenty-four Weeks Ended
                                                             ------------------------------  ------------------------------
                                                             June 16, 2000   June 18, 1999   June 16, 2000   June 18, 1999
                                                             --------------  --------------  --------------  --------------
<S>                                                          <C>             <C>             <C>             <C>
EBITDA of Host LP..........................................          $ 282           $ 255           $ 513           $ 481
Effect on revenue of SAB 101...............................           (168)           (138)           (291)           (253)
Interest expense...........................................           (104)           (109)           (208)           (217)
Income taxes...............................................             (2)             (1)             (3)             (2)
Depreciation and amortization..............................            (75)            (67)           (149)           (135)
Minority interest expense..................................             (5)             (7)            (10)            (11)
Other non-cash charges, net................................              6              12               8              26
                                                                     -----           -----           -----           -----
   Loss from operations before extraordinary items.........          $ (66)          $ (55)          $(140)          $(111)
                                                                     =====           =====           =====           =====
</TABLE>

Our interest coverage, defined as EBITDA divided by cash interest expense, was
2.7 times and 2.7 times for the twenty-four week periods of 2000 and 1999,
respectively, and 2.4 times for full year 1999.  The deficiency of earnings to
fixed charges was $123 million through the second quarter of 2000 and $100
million through the second quarter of 1999, which is primarily due to the
deferral of contingent rent of $291 million and $253 million for the same
periods, respectively.

Cash Flows and Financial Condition
----------------------------------

We reported a decrease in cash and cash equivalents of $122 million during the
twenty-four weeks ended June 16, 2000. Cash from operations was $248 million
through the second quarter of 2000 and $111 million through the second quarter
of 1999. The $137 million increase in cash from operations primarily relates to
changes in operating accounts. 1999 cash from operations were affected by the
addition of 36 properties as of December 30, 1998 and the timing of the receipt
of cash payments as a result of our hotel leases, which were effective beginning
January 1, 1999 in connection with the REIT Conversion. 1999 cash from
operations were also affected by cash expenditures incurred in connection with
the REIT Conversion and the renegotiation of the ground lease for the New York
Marriott Marquis.

Cash used in investing activities was $222 million and $163 million through the
second quarters of 2000 and 1999, respectively.  Cash used in investing
activities through the second quarter includes capital expenditures of $185
million and $177 million for 2000 and 1999, respectively, mostly related to
renewals and replacements on existing properties and new development projects.
Property and equipment balances include $170 million and $243 million for
construction in progress as of June 16, 2000 and December 31, 1999,
respectively. The reduction in construction in progress is due to the Tampa
Waterside Marriott, which was placed in service in February 2000.  The current
balance primarily relates to properties in Orlando, Memphis, Naples and various
other expansion and development projects.

On May 16, 2000, we acquired a non-controlling partnership interest in the
JWDC Limited Partnership, which owns the JW Marriott Hotel, a 772-room hotel
located on Pennsylvania Avenue in Washington, DC.  The Company, which previously
held a small interest in the venture, invested approximately $40 million in the
form of a preferred equity contribution.

Cash used in financing activities was $148 million through the second quarter of
2000 and $74 million through the second quarter of 1999.  Cash used in financing
activities through the second quarter of 2000 includes increased borrowings
under our bank credit facility of approximately $51 million, a portion of which
funded the previously discussed acquisition, as well as repurchases under our
stock buyback program and the payment of distributions.

In February 2000, we refinanced the $80 million mortgage on Marriott's Harbor
Beach Resort property in Fort Lauderdale, Florida.  The new mortgage is for $84
million, at a rate of 8.58%, and matures in March 2007.

                                     -25-
<PAGE>

                              HOST MARRIOTT, L.P.
                    MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

During June 2000, we modified our bank credit facility.  As modified, the total
facility has been permanently reduced to $775 million, consisting of a $150
million term loan and a $625 million revolver. In addition, the original term
was extended for two additional years, through August 2003.  As of June 16,
2000, $176 million is outstanding under the bank credit facility, and the
available capacity under the line of credit balance is $599 million.

On June 21, 2000, the Board of Directors of Host Marriott Corporation declared
cash distributions of $0.21 per OP Unit and $0.625 per unit of cumulative
redeemable preferred limited partner interest, which were paid on July 14, 2000
to unitholders of record on June 30, 2000. On April 14, 2000, first quarter cash
distributions of $0.21 per OP Unit and $0.625 per unit of cumulative redeemable
preferred limited partner interest were paid to unitholders of record on March
31, 2000.

During the first quarter of 2000, we continued our stock repurchase program
making repurchases of approximately 4.9 million common shares, 325,000 OP Units,
and 435,000 shares of Convertible Preferred Securities, for a total investment
of $62 million. No repurchases were made during the second quarter of 2000.
Since the inception of the repurchase program in September 1999, repurchases
under the program total 16.2 million common shares or equivalents for a total
investment of $150 million. We will continue to consider stock repurchases based
on our stock price and to the extent they can be made in a manner that is
relatively leverage neutral. Primarily, we anticipate that any stock repurchases
would be made from future asset sale proceeds, if any, with a portion of any
such proceeds being used to pay down debt. There are no such asset sales pending
at this time.

In April 2000, the resort property in Singer Island, Florida was converted to
the Hilton brand, representing our first property under this brand.

On June 21, 2000, the additions of a 500-room tower and 15,000 square feet of
meeting space at the Orlando World Center Marriott were completed at an
approximate development cost of $84 million.

Item 3.  Quantitative and Qualitative Disclosures about Market Risk

Our borrowings under the term loan portion of the bank credit facility as well
as the mortgage on The Ritz-Carlton, Amelia Island are sensitive to changes in
interest rates. The interest rates on these debt obligations, which were $266
million and $215 million, respectively, at June 16, 2000 and December 31, 1999,
are based on various LIBOR terms plus 200 to 225 basis points. The weighted
average interest rate for these financial instruments are 8.97% for the twenty-
four weeks ended June 16, 2000 and 7.58% for the year ended December 31, 1999.

                                     -26-
<PAGE>

                          PART II.  OTHER INFORMATION

Item 1.   Legal Proceedings

Incorporated by reference to the description of legal proceedings in footnote 12
to the condensed consolidated financial statements set forth in Part I,
"Financial Information."

Item 4.  Submission of Matters to a Vote of Security Holders

On May 18, 2000, Host Marriott Corporation held its Annual Meeting of
Shareholders to elect members to the Board of Directors, among other matters.

                                     -27-
<PAGE>

                                   SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.



                                    HOST MARRIOTT, L.P.

                                    BY: HOST MARRIOTT CORPORATION
                                    Its General Partner


July 25, 2000                       /s/ Donald D. Olinger
-------------                       ---------------------
Date                                Donald D. Olinger
                                    Senior Vice President and
                                    Corporate Controller
                                    (Chief Accounting Officer)