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                    U. S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                               ------------------



                                   FORM 10-QSB


                               ------------------



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

                  For the quarterly period ended March 31, 2001


                               ------------------



                         Commission file number 33-11096

                         CRI HOTEL INCOME PARTNERS, L.P.
             Organized pursuant to the Laws of the State of Delaware


                               ------------------



        Internal Revenue Service - Employer Identification No. 52-1500621

                 11200 Rockville Pike, Rockville, Maryland 20852

                                 (301) 468-9200


                               ------------------



Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports) and (2) has been
subject to such filing requirements for the past 90 days. Yes |X| No

--------------------------------------------------------------------------------
<PAGE>
                         CRI HOTEL INCOME PARTNERS, L.P.

                              INDEX TO FORM 10-QSB

                      FOR THE QUARTER ENDED MARCH 31, 2001


                                                                           Page
                                                                           ----

Part I. FINANCIAL INFORMATION

Item 1. Financial Statements

          Balance Sheets
            - March 31, 2001 and December 31, 2000..........................  1

          Statements of Income
            - for the three months ended March 31, 2001 and 2000............  2

          Statement of Changes in Partners' (Deficit) Capital
            - for the three months ended March 31, 2001.....................  3

          Statements of Cash Flows
            - for the three months ended March 31, 2001 and 2000............  4

          Notes to Financial Statements
            - March 31, 2001 and 2000.......................................  5

Item 2. Management's Discussion and Analysis of Financial Condition
          and Results of Operations......................................... 10


Part II. OTHER INFORMATION

Item 5.  Other Information.................................................. 14

Item 6.  Exhibits and Reports on Form 8-K................................... 15

Signature................................................................... 16

<PAGE>
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements


                         CRI HOTEL INCOME PARTNERS, L.P.

                                 BALANCE SHEETS


                                     ASSETS
<TABLE>
<CAPTION>
                                                                                             March 31,      December 31,
                                                                                               2001            2000
                                                                                           ------------    ------------
                                                                                            (Unaudited)
<S>                                                                                        <C>             <C>
Property and equipment - at cost:
  Land .................................................................................   $  1,574,490    $  1,574,490
  Buildings and site improvements ......................................................     13,948,636      13,937,210
  Furniture, fixtures and equipment ....................................................      2,147,620       2,041,320
  Leasehold improvements ...............................................................      2,042,739       2,039,881
                                                                                           ------------    ------------

                                                                                             19,713,485      19,592,901
  Less: accumulated depreciation and amortization ......................................     (8,074,452)     (7,872,375)
                                                                                           ------------    ------------

                                                                                             11,639,033      11,720,526

Hotel operating cash ...................................................................        304,414         176,202
Cash and cash equivalents ..............................................................           --           150,687
Working capital reserve ................................................................         99,848           8,456
Capital improvements, real estate tax and insurance reserves
  held by servicer .....................................................................        339,174         222,608
Receivables and other assets ...........................................................        692,283         457,830
Acquisition fees, principally paid to related parties,
  net of accumulated amortization of $448,444 and $439,943, respectively ...............        571,660         580,161
Property purchase costs,
  net of accumulated amortization of $79,776 and $78,257, respectively .................        102,490         104,009
                                                                                           ------------    ------------

    Total assets .......................................................................   $ 13,748,902    $ 13,420,479
                                                                                           ============    ============



                   LIABILITIES AND PARTNERS' (DEFICIT) CAPITAL


Current liabilities:
  Accounts payable and accrued expenses ................................................   $    771,436    $    412,299
  Distributions payable ................................................................           --           150,687
  Hotel trade payables .................................................................        164,895         234,636
  Short-term portion of mortgage payable ...............................................        144,209         141,461
                                                                                           ------------    ------------

Total current liabilities ..............................................................      1,080,540         939,083
                                                                                           ------------    ------------

Long term debt:
  Mortgage payable .....................................................................      8,356,946       8,396,298
                                                                                           ------------    ------------

    Total liabilities ..................................................................      9,437,486       9,335,381
                                                                                           ------------    ------------

Commitments and contingencies

Partners' (deficit) capital:
  General Partner ......................................................................       (302,555)       (307,081)
  Beneficial Assignee Certificates (BACs) Series A;
    868,662 BACs issued and outstanding ................................................      4,613,971       4,392,179
                                                                                           ------------    ------------

    Total partners' capital ............................................................      4,311,416       4,085,098
                                                                                           ------------    ------------

    Total liabilities and partners' capital ............................................   $ 13,748,902    $ 13,420,479
                                                                                           ============    ============
</TABLE>

                          The accompanying notes are an
                             integral part of these
                              financial statements.

                                       -1-

<PAGE>
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements


                         CRI HOTEL INCOME PARTNERS, L.P.

                              STATEMENTS OF INCOME

                                   (Unaudited)
<TABLE>
<CAPTION>
                                                        For the three months ended
                                                                 March 31,
                                                        --------------------------
                                                            2001           2000
                                                        -----------    -----------
<S>                                                     <C>            <C>
Revenue:
  Rooms .............................................   $ 2,706,616    $ 2,518,513
  Telephone .........................................        54,194         65,592
  Rental and other ..................................        83,870         87,206
  Food and beverage .................................        15,279         20,642
                                                        -----------    -----------

                                                          2,859,959      2,691,953

Departmental expenses:
  Rooms .............................................      (669,386)      (660,492)
  Telephone .........................................       (29,294)       (28,282)
  Rental and other ..................................       (33,859)       (36,006)
  Food and beverage .................................       (13,855)       (17,195)
                                                        -----------    -----------

                                                           (746,394)      (741,975)
                                                        -----------    -----------

Gross operating income ..............................     2,113,565      1,949,978
                                                        -----------    -----------

Unallocated operating income (expenses):
  Interest and other income .........................        24,233         24,144
  General and administrative ........................      (369,567)      (354,412)
  Building lease ....................................      (236,371)      (227,603)
  Marketing .........................................      (260,426)      (238,532)
  Depreciation and amortization .....................      (267,620)      (251,442)
  Energy ............................................      (146,629)      (127,761)
  Property taxes ....................................      (152,202)      (150,477)
  Property operations and maintenance ...............      (148,411)      (158,683)
  Management fees ...................................      (100,352)       (94,469)
  Base asset management fee, paid to related parties        (23,438)       (23,438)
  Professional fees .................................       (16,921)       (14,941)
  Loss on disposal of fixed assets ..................       (25,000)       (10,000)
                                                        -----------    -----------

                                                         (1,722,704)    (1,627,614)
                                                        -----------    -----------

Operating income ....................................       390,861        322,364

Other expense:
  Interest expense ..................................      (164,543)      (168,918)
                                                        -----------    -----------

Net income ..........................................   $   226,318    $   153,446
                                                        ===========    ===========


Net income allocated to General Partner (2%) ........   $     4,526    $     3,069
                                                        ===========    ===========

Net income allocated to BAC Holders (98%) ...........   $   221,792    $   150,377
                                                        ===========    ===========

Net income per BAC, based on 868,662 BACs outstanding   $      0.26    $      0.17
                                                        ===========    ===========

</TABLE>

                          The accompanying notes are an
                             integral part of these
                              financial statements.

                                       -2-

<PAGE>
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements


                         CRI HOTEL INCOME PARTNERS, L.P.

               STATEMENT OF CHANGES IN PARTNERS' (DEFICIT) CAPITAL

                                   (Unaudited)

<TABLE>
<CAPTION>


                                                             Beneficial
                                                              Assignee
                                                General      Certificate
                                                Partner        Holders       Total
                                               ----------    -----------  -----------
<S>                                            <C>           <C>          <C>
Partners' (deficit) capital, January 1, 2001   $ (307,081)   $4,392,179   $4,085,098

  Net income ...............................        4,526       221,792      226,318
                                               ----------    ----------   ----------

Partners' (deficit) capital, March 31, 2001    $ (302,555)   $4,613,971   $4,311,416
                                               ==========    ==========   ==========

</TABLE>

                          The accompanying notes are an
                             integral part of these
                              financial statements.

                                       -3-

<PAGE>
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements

                         CRI HOTEL INCOME PARTNERS, L.P.

                            STATEMENTS OF CASH FLOWS

                                   (Unaudited)
<TABLE>
<CAPTION>


                                                                                For the three months ended
                                                                                         March 31,
                                                                                --------------------------
                                                                                  2001         2000
                                                                                ---------    ---------
<S>                                                                             <C>          <C>
Cash flows from operating activities:
  Net income ................................................................   $ 226,318    $ 153,446

  Adjustments to reconcile net income to net cash provided by operating
    activities:
    Depreciation and amortization ...........................................     267,620      251,442
    Loss on disposal of fixed assets ........................................      25,000       10,000

    Changes in assets and liabilities:
      Increase in receivables and other assets, net .........................    (238,525)    (188,840)
      Increase in accounts payable and accrued expenses .....................     359,137      251,861
      Decrease in hotel trade payables ......................................     (69,741)    (148,684)
                                                                                ---------    ---------

        Net cash provided by operating activities ...........................     569,809      329,225
                                                                                ---------    ---------


Cash flows from investing activities:
  Net additions to property and equipment ...................................    (197,035)    (109,218)
  Net (deposits to) withdrawals from  working capital reserve ...............     (91,392)      24,466
  Net deposits to capital improvements, real estate tax and
    insurance reserves held by servicer .....................................    (116,566)    (152,775)
                                                                                ---------    ---------

        Net cash used in investing activities ...............................    (404,993)    (237,527)
                                                                                ---------    ---------


Cash flows from financing activities:
  Distributions paid to BAC Holders and General Partner .....................    (150,687)        --
  Payment of principal on mortgage payable ..................................     (36,604)     (32,299)
                                                                                ---------    ---------

        Net cash used in financing activities ...............................    (187,291)     (32,229)
                                                                                ---------    ---------


Net (decrease) increase in hotel operating cash and cash and cash equivalents     (22,475)      59,469

Hotel operating cash and cash and cash equivalents, beginning of period .....     326,889      230,426
                                                                                ---------    ---------

Hotel operating cash and cash and cash equivalents, end of period ...........   $ 304,414    $ 289,895
                                                                                =========    =========



Supplemental disclosure of cash flow information:
  Cash paid during the period for interest ..................................   $ 164,543    $ 168,918
                                                                                =========    =========
</TABLE>


                          The accompanying notes are an
                             integral part of these
                              financial statements.

                                       -4-

<PAGE>
                         CRI HOTEL INCOME PARTNERS, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                             March 31, 2001 and 2000

                                   (Unaudited)


1.   BASIS OF PRESENTATION

     In the opinion of CRICO Hotel Associates I, L.P. (the General Partner), the
accompanying unaudited financial statements reflect all adjustments,  consisting
of normal recurring accruals, necessary for a fair presentation of the financial
position of CRI Hotel Income Partners,  L. P. (the  Partnership) as of March 31,
2001,  and the results of its operations and its cash flows for the three months
ended March 31, 2001 and 2000.  The results of operations for the interim period
ended  March 31,  2001,  are not  necessarily  indicative  of the  results to be
expected for the full year.

     The  accompanying  unaudited  financial  statements  have been  prepared in
conformity with accounting  principles  generally  accepted in the United States
and with the  instructions  to Form10-QSB.  Certain  information  and accounting
policies  and footnote  disclosures  normally  included in financial  statements
prepared in conformity  with  accounting  principles  generally  accepted in the
United  States have been  condensed  or omitted  pursuant to such  instructions.
These  condensed  financial  statements  should be read in conjunction  with the
financial  statements  and notes thereto  included in the  Partnership's  annual
report on Form 10-KSB at December 31, 2000.

     The Partnership and the chief operating decision maker consider the hotels'
operations as a single homogeneous  business activity as it relates to achieving
their  objectives  of cash  flow  growth  and  capital  appreciation.  The chief
operating  decision  maker  reviews  cash  flow  and  operating  results  in the
aggregate in order to determine  the  appropriate  level of cash  available  for
distribution to the investors in the Partnership.  Accordingly,  the Partnership
considers  itself to operate in a single  reportable  segment in accordance with
Statement of Financial Accounting Standards No. 131.

     Certain amounts in the 2000 financial  statements have been reclassified to
conform to the 2001 presentation.


2.   LONG-LIVED ASSETS

     The Partnership reviews long-lived assets for impairment whenever events or
changes in  circumstances  indicate that the carrying amount of an asset may not
be fully recoverable. Recoverability is measured by a comparison of the carrying
amount of an asset to estimated  future  undiscounted net cash flows expected to
be generated by the asset. If an asset were determined to be impaired, its basis
would be adjusted to fair value through the recognition of an impairment loss.


3.   WORKING CAPITAL RESERVE; ADVANCES

     The working  capital reserve of $99,848 and $8,456 as of March 31, 2001 and
December 31, 2000, respectively, represents cash and cash equivalents maintained
as working  capital  for the  Partnership.  The working  capital  reserve may be
increased or reduced by the General Partner as it deems appropriate.

     On January 6, 2000,  the  Partnership  advanced  $100,000 to the Scottsdale
hotel in the form of a  non-interest  bearing  loan.  On February  4, 2000,  the
Scottsdale hotel repaid $70,000 of this loan; the remaining  $30,000 balance was
repaid on March 1, 2000.

                                       -5-

<PAGE>
                         CRI HOTEL INCOME PARTNERS, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                             March 31, 2001 and 2000

                                   (Unaudited)


3.   WORKING CAPITAL RESERVE; ADVANCES - Continued

     On June 28, 2000, the Partnership advanced $150,000 to the Scottsdale hotel
in the form of a  non-interest  bearing loan,  which was repaid during the first
quarter  of  2001.  This  intercompany   balance  has  been  eliminated  in  the
preparation of the accompanying balance sheet at December 31, 2000.


4.   CAPITAL IMPROVEMENTS, REAL ESTATE TAX AND INSURANCE
       RESERVES HELD BY SERVICER

     In addition to the monthly  loan  installments,  as  discussed  below,  the
Partnership   also  makes  monthly  payments  which  are  escrowed  for  capital
improvements  reserves (CIR) and estimated annual real estate taxes. The monthly
CIR  payment  totaling  $19,365  is held in  escrow  and may be  drawn on by the
Partnership for ongoing capital improvement expenditures and for the replacement
of furniture,  fixtures and equipment at the hotels. The monthly real estate tax
payments equal  one-twelfth of the estimated  yearly taxes and assessments to be
levied on the  hotels,  currently  estimated  as $35,116  per month for the year
2001.  The  servicer of the loan pays such taxes and  assessments  when due from
these escrows. Both the CIR and real estate tax payments are due on the same day
as the monthly principal and interest installments, commencing February 1, 1998,
until the new loan is paid in full.

     During the three months ended March 31, 2001 and 2000, the Partnership made
escrow  deposits  aggregating  $58,094 and  $58,094,  respectively,  for capital
improvements and $105,349 and $122,236,  respectively, for estimated annual real
estate  taxes.  As of March 31, 2001 and December 31,  2000,  the servicer  held
$111,071 and $99,854,  respectively,  for capital  improvements and $224,581 and
$119,232,  respectively,  for real estate taxes. Additionally, the servicer held
$3,522 for insurance reserves as of both March 31, 2001 and December 31, 2000.


5.   MORTGAGE PAYABLE

     On December 19, 1997, the Partnership refinanced with Citicorp Real Estate,
Inc. (Citicorp) the Zero Coupon Notes which were originally issued in connection
with the Partnership's acquisition of the hotels. The new loan bears interest at
the rate of 7.72% per annum and matures January 1, 2008. On that date, a balloon
payment in the amount of $7,273,441 will be due. In accordance with the terms of
the new loan, the Partnership began paying monthly installments of principal and
interest  in the  amount of  $67,049  on the first day of each  month  beginning
February 1998. If any such monthly  installment is not paid when due, the entire
principal  amount  outstanding and accrued interest thereon shall at once become
due and payable,  at the option of the holder.  Subject to prepayment  terms, as
discussed  below, the refinancing of the Zero Coupon Notes does not preclude the
future sale of the hotels, either individually or as a portfolio.

                                       -6-

<PAGE>
                         CRI HOTEL INCOME PARTNERS, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                             March 31, 2001 and 2000

                                   (Unaudited)


5.   MORTGAGE PAYABLE - Continued

     Under the terms of the new loan, such loan may be prepaid, subject to terms
and  prepayment  penalties  as set  forth  in the  note.  The new  loan has been
securitized in a "no lock" program, which permits the prepayment of the new loan
with a three percent premium during the first three years, a two percent premium
during the next three years, a one percent  premium during the next three years,
and no  penalty  during the final  year.  Additionally,  see Note 9 for  further
information concerning the acquisition and servicing of this loan.

     The Partnership  made  installments  of principal and interest  aggregating
$201,147  during  the three  months  ended  both  March 31,  2001 and 2000.  The
Partnership's balance on this loan was $8,501,155 and $8,537,759 as of March 31,
2001 and December 31, 2000, respectively.


6.   DISTRIBUTIONS TO BAC HOLDERS

     No distributions  were declared and payable to BAC holders of record during
the first quarters of 2001 and 2000.

     As a result of monthly  mortgage  payments  which began in 1998,  increased
funding of the working  capital  reserve for hotel  renovation  projects,  and a
decrease  in  operating  results  due to new  competition  coupled  with  annual
seasonality, no distribution will be made for the quarter ended March 31, 2001.


7.   COMMITMENTS

     a.   Hotel operations management agreements
          --------------------------------------

          The  Partnership  entered into  management  agreements  with Bryanston
     Group  d/b/a  Buckhead  Hotel  Management   Company,   Inc.  (Buckhead)  in
     connection with operation of the hotels.  The management  agreements expire
     between  November  2002  and  July  2003,  and  provide  for a  base  asset
     management  fee of 3.5% of gross revenues from  operations.  The management
     agreements  also call for a marketing fee of 1.5% of net room  revenues,  a
     reservation fee of 2.3% of gross revenues from rental of hotel guest rooms,
     and an incentive  management  fee  generally  equal to 25% of net cash flow
     available  after payment of a preferred cash flow return to the Partnership
     equal to 11% of the aggregate  purchase  price for Series A hotels owned by
     the  Partnership.  No incentive  management  fees were earned for the first
     quarters of 2001 or 2000.

     b.   Operating lease agreements
          --------------------------

          The Partnership  assumed an existing lease agreement from Days Inns in
     connection with the acquisition of the leasehold interest in the Scottsdale
     Days Inn. The  assumption  transfers  the rights to operate the property on
     the lease's  existing terms over the remaining life of the lease. The lease
     has been extended to expire on December 31, 2003.  The lease may be renewed
     at the option of the  lessee for an  additional  five year  period.  Annual
     lease  payments  are equal to the  greater of $140,450 or 22% of total room
     revenue and 2.5% of food and beverage  revenue.  Minimum lease  payments of
     $11,704 are payable monthly,

                                       -7-

<PAGE>
                         CRI HOTEL INCOME PARTNERS, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                             March 31, 2001 and 2000

                                   (Unaudited)


7.   COMMITMENTS - Continued

     with a quarterly  analysis of the actual  amount due.  For the three months
     ended March 31, 2001 and 2000,  lease  payments were $236,371 and $227,603,
     respectively.

     c.   Scottsdale, Roseville and University capital improvements
          ---------------------------------------------------------

          During 2000, the General  Partner  approved a $930,000  renovation and
     capital improvement project for the Scottsdale hotel, to be funded from the
     working  capital  reserve of the Partnership in the amounts of $488,000 and
     $292,000  in  2000  and  2001,   respectively,   and  from  the  Scottsdale
     replacements  reserve in the  amounts of  $90,000  and  $60,000 in 2000 and
     2001, respectively. During 2000, $481,955 was funded by the Partnership and
     $51,785  was  funded  from  the  Scottsdale  replacements  reserve  for the
     Scottsdale  renovation  project.  The General Partner expects that $268,785
     will be funded from the  Partnership's  working capital reserve and $98,215
     will be funded  from the  Scottsdale  replacements  reserve  during 2001 to
     complete this project.  As of May 15, 2001, $27,927 of such amount has been
     funded from the Partnership's working capital reserve, and $78,772 has been
     funded from the Scottsdale replacements reserve.

          During 2000, the General  Partner  approved the expenditure of $70,000
     for the renovation of a portion of the guest rooms at the Roseville  hotel.
     During  2000,  $20,409  was  funded by the  Partnership  for the  Roseville
     renovation project. The General Partner expects that $49,591 will be funded
     from the Partnership's working capital reserve during 2001 to complete this
     project. As of May 15, 2001, $45,316 of such amount has been funded.

          In April 2001, the Partnership  approved a $280,000 renovation project
     for the University  hotel. The cost will be funded from the working capital
     reserve  of  the  Partnership  in the  amount  of  $217,000  and  from  the
     University  replacements  reserve in the amount of  $63,000.  As of May 15,
     2001,  $0 was funded from the  Partnership's  working  capital  reserve and
     $29,704  was  funded  from the  University  replacements  reserve  for this
     project.


8.   GROUND LEASE AGREEMENTS

          The Partnership  leases a portion of the Minneapolis Days Inn property
     to Vicorp Restaurants,  Inc. (Vicorp),  which is operating a Baker's Square
     restaurant  on the  property.  Gross  rental  income  pursuant to the lease
     agreement  with  Vicorp,  which is included in interest and other income in
     the  accompanying  statements  of income,  was  $14,988 and $14,481 for the
     three months ended March 31, 2001 and 2000, respectively.

                                       -8-

<PAGE>
                         CRI HOTEL INCOME PARTNERS, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                             March 31, 2001 and 2000

                                   (Unaudited)


8.   GROUND LEASE AGREEMENTS - Continued

     The  Partnership  leases an  adjacent  building on the  Roseville  Days Inn
property  to Happy  Chef  Systems,  Inc.  (Happy  Chef).  Happy  Chef,  in turn,
subleases  this space to the India  Palace,  which  operates a restaurant on the
property.  During the third  quarter  2000,  Happy Chef  exercised the third and
final option on this lease, thereby extending the term for five additional years
through September 30, 2005. Happy Chef continues to sublease this space to India
Palace.  Gross rental income  pursuant to the lease  agreement  with Happy Chef,
which is included in interest and other income in the accompanying statements of
income,  was $7,500 for each of the three month periods ended March 31, 2001 and
2000, respectively.


9.   RELATED PARTY TRANSACTIONS

     In accordance with the terms of the Partnership Agreement,  the Partnership
is obligated to reimburse the General Partner or its affiliates for their direct
expenses in  connection  with managing the  Partnership.  The  Partnership  paid
$16,673  and  $8,040  for the  three  months  ended  March  31,  2001 and  2000,
respectively,  to the General Partner or its affiliates as direct  reimbursement
of expenses incurred on behalf of the Partnership.  Such reimbursed expenses are
included in the accompanying  statements of income as general and administrative
expenses.

     In accordance with the terms of the Partnership Agreement,  the Partnership
is obligated to pay the General  Partner  and/or its  affiliates  an annual base
asset  management fee (Management  Fee),  equal to 0.50% of the weighted average
balance of the adjusted partnership  investment during the period, as defined in
the Partnership Agreement.  The Partnership paid a Management Fee of $23,438 for
each of the three month periods ended March 31, 2001 and 2000.

     The $8.9 million loan originated and  underwritten by Citicorp (see Note 2)
was acquired by CRIIMI MAE Inc., and was included in a  securitization  by it in
June 1998. As master and special servicer for the loan pool, CRIIMI MAE Services
Limited Partnership,  a CRIIMI MAE Inc. affiliate,  will retain a portion of the
cash flow, as well as any  prepayment  penalties.  The Chairman and President of
CRIIMI MAE Inc. are the Chairman and President, respectively, of, and holders of
100% of the equity  interest in, C.R.I.,  Inc.,  which is the general partner of
CRICO Hotel  Associates I, L.P.,  which,  in turn, is the General Partner of the
Partnership.

     C.R.I.,  Inc., the general partner of the General  Partner,  has contracted
with Capitol  Hotel Group,  Inc.  (CHG),  to perform  certain  asset  management
services  related to the  oversight  of the  operations  and  management  of the
hotels.  The  Chairman  and  President  of C.R.I.,  Inc.  are the  Chairman  and
President,  respectively,  of, and  (effective as of January 1, 2000) holders of
100% of the equity interest in, CHG.

                                       -9-

<PAGE>
Part I. FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis
          of Financial Condition and Results of Operations

     CRI Hotel Income Partners, L.P.'s (the Partnership) Management's Discussion
and Analysis of Financial  Condition and Results of Operations  section contains
information  that  may  be  considered  forward  looking,  including  statements
regarding  the effect of  governmental  regulations.  Actual  results may differ
materially from those  described in the forward  looking  statements and will be
affected by a variety of factors including seasonality with respect to the hotel
industry,  national and local economic conditions, the general level of interest
rates, governmental regulations affecting the Partnership and interpretations of
those  regulations,   the  competitive  environment  in  which  the  Partnership
operates, and the availability of working capital.

                          Financial Condition/Liquidity
                          -----------------------------

     The  Partnership  expects that the hotels in the  aggregate  will  generate
sufficient cash flow to achieve a positive cash flow after  operating  expenses.
In addition to the periodic  replacement  of fixed  assets,  which are primarily
funded  from  the  capital  improvements   reserves,  the  General  Partner  has
determined  that  certain  capital   improvements  are  needed  to  enhance  the
marketability  of the hotels.  Since 1997, the Partnership has funded a total of
approximately  $1.9 million from the working  capital  reserve to the hotels for
such capital improvements.

     During 2000, the General Partner approved a $930,000 renovation and capital
improvement  project  for the  Scottsdale  hotel,  to be funded from the working
capital  reserve of the  Partnership  in the amounts of $488,000 and $292,000 in
2000 and 2001, respectively, and from the Scottsdale replacements reserve in the
amounts of $90,000  and  $60,000 in 2000 and 2001,  respectively.  During  2000,
$481,955  was  funded  by the  Partnership  and  $51,785  was  funded  from  the
Scottsdale  replacements  reserve for the  Scottsdale  renovation  project.  The
General  Partner  expects that  $268,785  will be funded from the  Partnership's
working  capital  reserve  and  $98,215  will  be  funded  from  the  Scottsdale
replacements  reserve during 2001 to complete this project.  As of May 15, 2001,
$27,927 of such amount has been funded from the  Partnership's  working  capital
reserve, and $78,772 has been funded from the Scottsdale replacements reserve.

     During 2000, the General  Partner  approved the  expenditure of $70,000 for
the  renovation of a portion of the guest rooms at the Roseville  hotel.  During
2000,  $20,409  was  funded  by the  Partnership  for the  Roseville  renovation
project.  The  General  Partner  expects  that  $49,591  will be funded from the
Partnership's  working capital reserve during 2001 to complete this project.  As
of May 15, 2001, $45,316 of such amount has been funded.

     In April 2001, the Partnership  approved a $280,000  renovation project for
the University  hotel.  The cost will be funded from the working capital reserve
of  the   Partnership  in  the  amount  of  $217,000  and  from  the  University
replacements reserve in the amount of $63,000. As of May 15, 2001, $0 was funded
from the  Partnership's  working capital reserve and $29,704 was funded from the
University replacements reserve for this project.

     The Partnership's  liquidity and future results of operations are primarily
dependent upon the performance of the underlying hotels. Hotel operations may be
materially  affected by changing market conditions and by seasonality  caused by
variables  such as  vacations,  holidays and climate.  The  Partnership  closely
monitors its liquidity and cash flow in an effort to ensure that sufficient cash
is available  for  operating  requirements,  and for possible  distributions  to
Beneficial  Assignee  Certificate  (BAC)  holders.  The  Partnership's  net cash
provided by the hotels'  operating  activities  for the three months ended March
31, 2001 and 2000,  along with existing cash resources,  was adequate to support
operating,  investing and financing  requirements.  The Partnership  anticipates
that  existing  cash  resources  along with  future  cash flows from the hotels'
operations,  in the aggregate,  will be sufficient to pay operating expenses and
short term  commitments,  to fund the working  capital and capital  improvements
reserves,  and to  fund  the  capital  projects,  as  discussed  above.  Current
liabilities  at March 31, 2001 were  $1,080,540,  which  represented  a $141,457
increase from the balance at December 31, 2000. This increase

                                      -10-

<PAGE>
Part I. FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis
          of Financial Condition and Results of Operations - Continued

primarily  resulted from an increase in accounts  payable and accrued  expenses,
partially  offset by  decreases  in  distributions  payable  and in hotel  trade
payables.

Financing
---------

     On December  19, 1997,  the  Partnership  refinanced  the Zero Coupon Notes
which were originally issued in connection with the Partnership's acquisition of
the hotels.  In accordance with the terms of the new loan, the Partnership  made
installments  of principal and interest  aggregating  $201,147  during the three
months  ended both March 31, 2001 and 2000.  The  Partnership's  balance on this
loan was  $8,501,155  and $8,537,759 as of March 31, 2001 and December 31, 2000,
respectively.

Capital Improvements, Real Estate Tax and Insurance Reserves Held by Servicer
-----------------------------------------------------------------------------

     In addition to the monthly  loan  installments,  as  discussed  above,  the
Partnership   also  makes  monthly  payments  which  are  escrowed  for  capital
improvements  reserves (CIR) and estimated annual real estate taxes.  During the
three months ended March 31, 2001 and 2000, the Partnership made escrow deposits
aggregating  $58,094 and $58,094,  respectively,  for capital  improvements  and
$105,349 and $122,236,  respectively, for estimated annual real estate taxes. As
of March 31, 2001 and December 31, 2000, the servicer held $111,071 and $99,854,
respectively, for capital improvements and $224,581 and $119,232,  respectively,
for real estate  taxes.  Additionally,  the servicer  held $3,522 for  insurance
reserves as of both March 31, 2001 and December 31, 2000.

Working Capital Reserve; Advances
---------------------------------

     The working  capital reserve of $99,848 and $8,456 as of March 31, 2001 and
December 31, 2000, respectively, represents cash and cash equivalents maintained
as working  capital  for the  Partnership.  The working  capital  reserve may be
increased or reduced by the General Partner as it deems appropriate.

     On January 6, 2000,  the  Partnership  advanced  $100,000 to the Scottsdale
hotel in the form of a  non-interest  bearing  loan.  On February  4, 2000,  the
Scottsdale hotel repaid $70,000 of this loan. The remaining  $30,000 balance was
repaid on March 1, 2000.

     On June 28, 2000, the Partnership advanced $150,000 to the Scottsdale hotel
in the form of a  non-interest  bearing loan,  which was repaid during the first
quarter  of  2001.  This  intercompany   balance  has  been  eliminated  in  the
preparation of the accompanying balance sheet at December 31, 2000.

Distributions to BAC Holders
----------------------------

     No  distributions  declared and payable to BAC holders of record during the
first quarter of 2001 and 2000.

     As a result of monthly  mortgage  payments  which began in 1998,  increased
funding of the working  capital  reserve for hotel  renovation  projects,  and a
decrease  in  operating  results  due to new  competition  coupled  with  annual
seasonality, no distribution will be made for the quarter ended March 31, 2001.

                                      -11-

<PAGE>
Part I. FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis
          of Financial Condition and Results of Operations - Continued

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

     The Partnership's net income,  which consists  principally of revenues from
hotel  operations,  increased  $72,872 during the three month period ended March
31,  2001,  from the  comparable  period in 2000,  primarily  due to a  $163,587
increase in gross operating  income,  partially  offset by a $95,090 increase in
unallocated  operating expenses.  The increase in gross operating income was due
to an  increase  in rooms  revenue,  partially  offset by an  increase  in rooms
expense and  decreases  in  telephone,  rental and other,  and food and beverage
revenues.  The increase in unallocated  operating  expenses was primarily due to
increases in marketing expense,  energy expense,  depreciation and amortization,
general and  administrative  expense,  and loss on disposal of fixed assets. The
increase in unallocated operating expenses was partially offset by a decrease in
property operations and maintenance expense.

     See the  following  discussion  for an analysis of each  hotel's  operating
results for the three months ended March 31, 2001 and 2000.

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

Operating statistics
--------------------

     The  hotels'   results  of  operations  are  affected  by  changing  market
conditions  and by seasonality  caused by variables such as vacations,  holidays
and climate. Based on the hotels' operating budgets, the following months should
provide the highest gross operating income and net cash flow.

     Hotel Location                   Peak Months
     --------------                   -----------
     Clearwater, FL                   October through April
     Minneapolis, MN                  May through October
     Plymouth, MN                     June through October
     Roseville, MN                    May through October
     Scottsdale, AZ                   January through May

     The  Partnership's  statements of income include operating results for each
of the hotels as summarized  below.  Gross  Operating  Income  represents  total
revenue from rooms, telephone, food and beverage, and rental and other, less the
related  departmental  expenses.  Operating  Income  represents  Gross Operating
Income less unallocated  operating  expenses.  The operating results and average
occupancy  for the hotels for the three  months  ended  March 31, 2001 and 2000,
follow.

                                             Gross Operating Income
                                            For the three months ended
                                                     March 31,
                                            --------------------------
         Hotel Location                        2001              2000
         --------------                     -----------       -----------

         Clearwater, FL                     $   466,092       $   345,522
         Minneapolis, MN                        371,898           375,788
         Plymouth, MN                           186,427           163,472
         Roseville, MN                          191,925           188,691
         Scottsdale, AZ                         897,223           876,505
                                            -----------       -----------

           Total                            $ 2,113,565       $ 1,949,978
                                            ===========       ===========



                                      -12-

<PAGE>
Part I. FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis
          of Financial Condition and Results of Operations - Continued


                                                 Operating Income
                                            For the three months ended
                                                     March 31,
                                            --------------------------

         Hotel Location                         2001             2000
         --------------                     -----------       -----------

         Clearwater, FL                     $   258,375       $   162,627
         Minneapolis, MN                        136,753           136,062
         Plymouth, MN                            25,278             4,730
         Roseville, MN                           29,585            24,219
         Scottsdale, AZ                         295,352           310,414
         Depreciation and net partnership
           operating expenses                  (354,482)         (315,688)
                                            ------------      -----------

           Total                            $   390,861       $   322,364
                                            ===========       ===========


                                                Average Occupancy
                                            for the three months ended
                                                    March 31,
                                            --------------------------
         Hotel Location                        2001              2000
         --------------                     ----------        -----------

         Clearwater, FL                            76%               67%
         Minneapolis, MN                           71%               77%
         Plymouth, MN                              63%               58%
         Roseville, MN                             68%               70%
         Scottsdale, AZ                            88%               86%
                                               ------            ------

           Weighted Average Occupancy (1)          74%               73%
                                               ======            ======

(1)  Weighted  average  occupancy is computed by taking into  consideration  the
     number of rooms at each location.

Clearwater,  Florida:  Gross operating income and operating income for the three
month  period ended March 31, 2001  increased  from the same period in 2000 as a
result of a seventeen  percent  increase in the average room rate coupled with a
nine point increase in average occupancy. The increases in the average room rate
and average occupancy were the result of SuperBowl XXXV which was held in Tampa,
Florida in January 2001.  The increase in gross  operating  income was partially
offset by an  increase  in  marketing  expense  due to website  development  and
advertising costs.

Minneapolis,  Minnesota: Gross operating income for the three month period ended
March 31, 2001 decreased from the same period in 2000 as a result of a six point
decrease in average  occupancy,  despite a seven percent increase in the average
room rate.  The decrease in average  occupancy  was due to decreased  demand for
educational/athletic  business. The increase in the average room rate was due to
the NCAA Final Four college basketball playoffs which were held at the Metrodome
in downtown  Minneapolis.  The decrease in gross operating  income was offset by
decreased operating expenses, resulting in operating income for the three months
ended March 31, 2001,  which  remained  fairly  constant with the same period in
2000.

Plymouth,  Minnesota:  Gross operating income and operating income for the three
month  period ended March 31, 2001  increased  from the same period in 2000 as a
result of a five point increase in average occupancy, coupled with a two percent
increase in the average room rate.  The  increases in average  occupancy and the
average room rate were the result of increased  corporate  business,  as well as
business from the NCAA Final Four college basketball playoffs.

                                      -13-

<PAGE>
Part I. FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis
          of Financial Condition and Results of Operations - Continued

Roseville,  Minnesota: Gross operating income and operating income for the three
month  period ended March 31, 2001  increased  from the same period in 2000 as a
result of an eight percent  increase in the average room rate,  partially offset
by a two point decrease in average  occupancy.  The increase in the average room
rate was the result of the NCAA  Final Four  college  basketball  playoffs.  The
decrease  in average  occupancy  was the result of  decreased  transient  demand
during harsh winter conditions.

Scottsdale,  Arizona:  Gross  operating  income for the three month period ended
March 31,  2001  increased  from the same  period in 2000 as a result of a three
percent increase in the average room rate,  coupled with a two point increase in
average occupancy.  The increases in the average room rate and average occupancy
were the result of increased  marketability due to recent renovations  performed
at the hotel.  The increase in gross operating income was partially offset by an
increase in marketing expense to promote the recent renovations, and an increase
in land  lease  expense  (which is tied to  revenue  performance).  As a result,
operating  income for the three month period ended March 31, 2001 decreased from
the same period in 2000.


Part II. OTHER INFORMATION
Item 5. Other Information

     There is no established market for the purchase and sale of BACs,  although
various  informal  secondary  market services exist. Due to the limited markets,
however, investors may be unable to sell or otherwise dispose of their BACs.

     On December 12, 2000,  Everest  Properties  (Everest),  a BAC holder of the
Partnership,  initiated  an  unregistered  tender offer to purchase no more than
4.3% of the  outstanding  units of the  Partnership  at a price of $3.75 per BAC
unit.  Everest stated that it made the offer for the express  purpose of holding
the BACs  for  investment  purposes  and not with a view to  resale.  The  price
offered  was  determined  solely  at the  discretion  of  Everest  and  did  not
necessarily  represent  the fair market  value of each BAC.  The  Everest  offer
expired on January 11, 2001.

     On  December  13,  2000,  Madison  Capital  (Madison),  a BAC holder of the
Partnership,  initiated  an  unregistered  tender offer to purchase no more than
3.58% of the  outstanding  units of the  Partnership at a price of $3.75 per BAC
unit.  Madison stated that it made the offer for the express  purpose of holding
the BACs  for  investment  purposes  and not with a view to  resale.  The  price
offered  was  determined  solely  at the  discretion  of  Madison  and  did  not
necessarily  represent  the fair market  value of each BAC.  The  Madison  offer
expired on January 12, 2001.

     The General  Partner has not expressed,  and does not express,  any opinion
and  remains  neutral  toward any offer for the  purchase  of BACs such as those
described above.

     If more than five percent of the total outstanding BACs are transferred due
to sale in any one calendar year (not counting  certain exempt  transfers),  the
Partnership could be taxed as a "publicly traded  partnership," with potentially
severe tax implications for the Partnership and its investors. Specifically, the
Partnership  could be taxed as a corporation  and the income and losses from the
Partnership  would no longer be considered a passive  activity.  From January 1,
2000 through August 4, 2000,  approximately  4.9% of outstanding BACs were sold.
Accordingly,  to remain within the five percent safe harbor, effective August 7,
2000, the General Partner of the Partnership halted recognition of any transfers
that  exceeded the safe harbor limit  through  December 31, 2000.  This halt was
lifted  effective  January 1, 2001. From January 1, 2001 through March 14, 2001,
approximately 4.8% of outstanding BACs were sold. Accordingly,  to remain within
the five percent  safe harbor,  effective  March 19, 2001,  the General  Partner
again halted  recognition  of any further  transfers  that could exceed the safe
harbor  limit  through  December 31,  2000.  This halt will be lifted  effective
January 1, 2002.

                                      -14-

<PAGE>
Part II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K

     a.   None.

     b.   On  March  28,  2001,  the  Partnership  filed a report  on Form  8-K,
          announcing  that,  effective  March 19, 2001, the  Partnership  halted
          recognition  of any further sale  transfers that could exceed the five
          percent safe harbor limit through December 31, 2001.

     All other items are not applicable.

                                      -15-

<PAGE>
                                    SIGNATURE


     In accordance  with the  requirements  of the Exchange Act, the  registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


                            CRI HOTEL INCOME PARTNERS, L.P.
                            ----------------------------------------------------
                            (Registrant)

                            by:  CRICO Hotel Associates I, L.P.
                                 -----------------------------------------------
                                 General Partner

                                 by:  C.R.I., Inc.
                                      ------------------------------------------
                                      its General Partner



May 15, 2001                           by:  /s/ Michael J. Tuszka
------------                                ------------------------------------
DATE                                        Michael J. Tuszka
                                              Vice President
                                              and Chief Accounting Officer
                                              (Principal Financial Officer
                                              and Principal Accounting Officer)


                                      -16-