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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 June 30, 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 o


--------------------------------------------------------------------------------
<PAGE>

                         CRI HOTEL INCOME PARTNERS, L.P.

                              INDEX TO FORM 10-QSB

                       FOR THE QUARTER ENDED JUNE 30, 2001


                                                                          Page


Part I.    FINANCIAL INFORMATION

Item 1.    Financial Statements

           Balance Sheets
               - June 30, 2001 and December 31, 2000........................ 1

           Statements of Income
               - for the three and six months ended June 30, 2001 and 2000.. 2

           Statement of Changes in Partners' (Deficit) Capital
               - for the six months ended June 30, 2001..................... 3

           Statements of Cash Flows
               - for the six months ended June 30, 2001 and 2000............ 4

           Notes to Financial Statements
               - June 30, 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................................................ 15

Item 6.    Exhibits and Reports on Form 8-K................................. 16

Signature................................................................... 17




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


                         CRI HOTEL INCOME PARTNERS, L.P.

                                 BALANCE SHEETS


                                     ASSETS

<TABLE>
<CAPTION>
                                                                                  June 30,       December 31,
                                                                                    2001            2000
                                                                                ------------    ------------
                                                                                (Unaudited)
<S>                                                                             <C>             <C>
Property and equipment - at cost:
  Land ......................................................................   $  1,574,490    $  1,574,490
  Buildings and site improvements ...........................................     13,950,509      13,937,210
  Furniture, fixtures and equipment .........................................      2,238,719       2,041,320
  Leasehold improvements ....................................................      2,129,594       2,039,881
                                                                                ------------    ------------

                                                                                  19,893,312      19,592,901
  Less: accumulated depreciation and amortization ...........................     (8,250,356)     (7,872,375)
                                                                                ------------    ------------

                                                                                  11,642,956      11,720,526

Hotel operating cash ........................................................        444,433         176,202
Cash and cash equivalents ...................................................        177,278         150,687
Working capital reserve .....................................................           --             8,456
Capital improvements, real estate tax and insurance reserves held by servicer        209,828         222,608
Receivables and other assets ................................................        507,759         457,830
Acquisition fees, principally paid to related parties,
  net of accumulated amortization of $456,945 and $439,943, respectively ....        563,159         580,161
Property purchase costs,
  net of accumulated amortization of $81,295 and $78,257, respectively ......        100,971         104,009
                                                                                ------------    ------------

    Total assets ............................................................   $ 13,646,384    $ 13,420,479
                                                                                ============    ============



                   LIABILITIES AND PARTNERS' (DEFICIT) CAPITAL


Current liabilities:
  Accounts payable and accrued expenses .....................................   $    708,771    $    412,299
  Distributions payable .....................................................        177,278         150,687
  Hotel trade payables ......................................................        138,461         234,636
  Short-term portion of mortgage payable ....................................        147,041         141,461
                                                                                ------------    ------------

Total current liabilities ...................................................      1,171,551         939,083
                                                                                ------------    ------------

Long term debt:
  Mortgage payable ..........................................................      8,318,632       8,396,298
                                                                                ------------    ------------

    Total liabilities .......................................................      9,490,183       9,335,381
                                                                                ------------    ------------

Commitments and contingencies

Partners' (deficit) capital:
  General Partner ...........................................................       (305,659)       (307,081)
  Beneficial Assignee Certificates (BACs) Series A;
    868,662 BACs issued and outstanding .....................................      4,461,860       4,392,179
                                                                                ------------    ------------

    Total partners' capital .................................................      4,156,201       4,085,098
                                                                                ------------    ------------

    Total liabilities and partners' capital .................................   $ 13,646,384    $ 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     For the six months ended
                                                                June 30,                       June 30,
                                                       --------------------------    --------------------------
                                                           2001          2000            2001           2000
                                                       -----------    -----------    ------------   -----------
<S>                                                    <C>            <C>            <C>            <C>
Revenue:
  Rooms ............................................   $ 2,274,200    $ 2,352,216    $ 4,980,816    $ 4,870,729
  Telephone ........................................        42,841         61,615         97,035        127,207
  Rental and other .................................        90,783         88,246        174,653        175,452
  Food and beverage ................................        17,998         22,018         33,277         42,660
                                                       -----------    -----------    -----------    -----------

                                                         2,425,822      2,524,095      5,285,781      5,216,048
                                                       -----------    -----------    -----------    -----------

Departmental expenses:
  Rooms ............................................      (679,331)      (700,341)    (1,348,717)    (1,360,833)
  Telephone ........................................       (28,121)       (36,062)       (57,415)       (64,344)
  Rental and other .................................       (33,905)       (35,217)       (67,764)       (71,223)
  Food and beverage ................................       (18,764)       (16,009)       (32,619)       (33,204)
                                                       -----------    -----------    -----------    -----------

                                                          (760,121)      (787,629)    (1,506,515)    (1,529,604)
                                                       -----------    -----------    -----------    -----------

Gross operating income .............................     1,665,701      1,736,466      3,779,266      3,686,444
                                                       -----------    -----------    -----------    -----------

Unallocated operating income (expenses):
  Interest and other income ........................        25,793         27,525         50,026         51,669
  General and administrative .......................      (272,778)      (272,028)      (642,345)      (626,440)
  Building lease ...................................      (131,112)      (137,807)      (367,483)      (365,410)
  Marketing ........................................      (239,402)      (253,137)      (499,828)      (491,669)
  Depreciation and amortization ....................      (274,260)      (257,181)      (541,880)      (508,623)
  Energy ...........................................      (121,312)      (114,641)      (267,941)      (242,402)
  Property taxes ...................................      (152,202)      (134,097)      (304,404)      (284,574)
  Property operations and maintenance ..............      (152,164)      (159,397)      (300,575)      (318,080)
  Management fees ..................................       (85,176)       (88,632)      (185,528)      (183,101)
  Base asset management fee, paid to related parties       (23,437)       (23,437)       (46,875)       (46,875)
  Professional fees ................................       (16,922)       (13,164)       (33,843)       (28,105)
  Loss on disposal of fixed assets .................       (35,000)       (24,000)       (60,000)       (34,000)
                                                       -----------    -----------    -----------    -----------

                                                        (1,477,972)    (1,449,996)    (3,200,676)    (3,077,610)
                                                       -----------    -----------    -----------    -----------

Operating income ...................................       187,729        286,470        578,590        608,834

Other expense:
  Interest expense .................................      (165,666)      (168,285)      (330,209)      (337,203)
                                                       -----------    -----------    -----------    -----------

Net income .........................................   $    22,063    $   118,185    $   248,381    $   271,631
                                                       ===========    ===========    ===========    ===========


Net income allocated to General Partner (2%) .......   $       441    $     2,364    $     4,968    $     5,433
                                                       ===========    ===========    ===========    ===========

Net income allocated to BAC Holders (98%) ..........   $    21,622    $   115,821    $   243,413    $   266,198
                                                       ===========    ===========    ===========    ===========

Net income per BAC,
  based on 868,662 BACs outstanding ................   $      0.02    $      0.13    $      0.28    $      0.31
                                                       ===========    ===========    ===========    ===========
</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 ...............................         4,968        243,413        248,381

  Distributions of $0.20 per BAC ...........        (3,546)      (173,732)      (177,278)
                                               -----------    -----------    -----------

Partners' (deficit) capital, June 30, 2001 .   $  (305,659)   $ 4,461,860    $ 4,156,201
                                               ===========    ===========    ===========
</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 six months ended
                                                                                            June 30,
                                                                                   ------------------------
                                                                                      2001        2000
                                                                                   ---------    ---------
<S>                                                                                <C>          <C>
Cash flows from operating activities:
  Net income ...................................................................   $ 248,381    $ 271,631

  Adjustments  to  reconcile  net  income  to net  cash  provided  by  operating
    activities:
    Depreciation and amortization ..............................................     541,880      508,623
    Loss on disposal of fixed assets ...........................................      60,000       34,000

    Changes in assets and liabilities:
      Increase in receivables and other assets, net ............................     (58,074)     (58,999)
      Increase in accounts payable and accrued expenses ........................     296,472      286,760
      Decrease in hotel trade payables .........................................     (96,175)    (162,544)
                                                                                   ---------    ---------

        Net cash provided by operating activities ..............................     992,484      879,471
                                                                                   ---------    ---------


Cash flows from investing activities:
  Net additions to property and equipment ......................................    (496,125)    (324,604)
  Net withdrawals from working capital reserve .................................       8,456       72,761
  Net withdrawals from capital improvements,
    real estate tax and insurance reserves held by servicer ....................      12,780       29,287
                                                                                   ---------    ---------

        Net cash used in investing activities ..................................    (474,889)    (222,556)
                                                                                   ---------    ---------


Cash flows from financing activities:
  Distributions paid to BAC Holders and General Partner ........................    (150,687)        --
  Payment of principal on mortgage payable .....................................     (72,086)     (65,091)
                                                                                   ---------    ---------

        Net cash used in financing activities ..................................    (222,773)     (65,091)
                                                                                   ---------    ---------


Net increase in hotel operating cash and cash and cash equivalents .............     294,822      591,824

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 ..............   $ 621,711    $ 822,250
                                                                                   =========    =========



Supplemental disclosure of cash flow information:
  Cash paid during the period for interest .....................................   $ 330,209    $ 337,203
                                                                                   =========    =========
</TABLE>


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

                                       -4-

<PAGE>

                         CRI HOTEL INCOME PARTNERS, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                             June 30, 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 June 30,
2001,  and the results of its operations for the three and six months ended June
30, 2001 and 2000 and its cash flows for the six months  ended June 30, 2001 and
2000. The results of operations for the interim periods ended June 30, 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 the 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 $0 and  $8,456  as of June 30,  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.

                                       -5-

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

                          NOTES TO FINANCIAL STATEMENTS

                             June 30, 2001 and 2000

                                   (Unaudited)


3.   WORKING CAPITAL RESERVE; ADVANCES - Continued

     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.


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 six months ended June 30, 2001 and 2000,  the  Partnership  made
escrow deposits  aggregating  $116,188 and $116,188,  respectively,  for capital
improvements and $210,699 and $238,488,  respectively, for estimated annual real
estate  taxes.  As of June 30, 2001 and  December 31,  2000,  the servicer  held
$69,391 and $99,854,  respectively,  for capital  improvements  and $136,915 and
$119,232,  respectively,  for real estate taxes. Additionally, the servicer held
$3,522 for insurance reserves as of both June 30, 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

                             June 30, 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
$402,294  during  the six  months  ended  both  June  30,  2001  and  2000.  The
Partnership's  balance on this loan was $8,465,673 and $8,537,759 as of June 30,
2001 and December 31, 2000, respectively.


6.   DISTRIBUTIONS TO BAC HOLDERS

     Distributions  declared  and  payable to BAC  holders of record  during the
first two quarters of 2001 and 2000 follow.

                                     2001                          2000
                            --------------------------------------------------
          Quarter Ended       Total       Per BAC          Total       Per BAC
          -------------     ---------     -------        ---------     -------

          March 31          $      --     $    --        $      --     $    --
          June 30             173,732        0.20          147,673        0.17
                            ---------     -------        ---------     -------
                            $ 173,732     $  0.20        $ 147,673     $  0.17
                            =========     =======        =========     =======


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,  which
     expire  between  November  2002 and July  2003,  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 two
     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

                                       -7-

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

                          NOTES TO FINANCIAL STATEMENTS

                             June 30, 2001 and 2000

                                   (Unaudited)



7.   COMMITMENTS - Continued

     food and beverage  revenue.  Minimum lease  payments of $11,704 are payable
     monthly,  with a quarterly analysis of the actual amount due. For the three
     months  ended June 30, 2001 and 2000,  lease  payments  were  $131,112  and
     $137,807,  respectively;  for the six months  ended June 30, 2001 and 2000,
     lease payments were $367,483 and $365,410, respectively.

     c.   Scottsdale, Roseville and Minneapolis 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 $244,018
     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,  for a total of  $875,973,  which is less than the
     approved amount of $930,000. As of August 13, 2001, $228,528 of such amount
     has been funded from the Partnership's working capital reserve, and $84,257
     has been funded from the Scottsdale replacements reserve.

          During  2000,  the  General  Partner  approved a  $145,000  renovation
     project for the  Roseville  hotel,  to be funded  from the working  capital
     reserve of the  Partnership in the amount of $70,000 and from the Roseville
     replacements  reserve in the amount of $75,000.  During  2000,  $20,409 was
     funded  from the  Partnership's  working  capital  reserve  and $75,526 was
     funded from the Roseville  replacements  reserve for this  project.  During
     2001, $46,192 was funded from the Partnership's  working capital reserve to
     complete  this  project,  for a total of $142,127,  slightly  less than the
     approved amount of $145,000.

          In April 2001, the Partnership  approved a $280,000 renovation project
     for the Minneapolis hotel. The cost will be funded from the working capital
     reserve  of  the  Partnership  in the  amount  of  $217,000  and  from  the
     Minneapolis replacements reserve in the amount of $63,000. As of August 13,
     2001,  $204 was funded from the  Partnership's  working capital reserve and
     $29,704  was funded  from the  Minneapolis  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 $14,987 and $14,481 for the three  months ended June
30,  2001 and 2000,  respectively;  for the six months  ended June 30,  2001 and
2000, such gross rental income was $29,975 and $28,962, respectively.

                                       -8-

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

                          NOTES TO FINANCIAL STATEMENTS

                             June 30, 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 and $15,000 for each of the three and six month periods ended
June 30, 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 $20,851 and $37,524 for the three and six months ended June 30,
2001,  respectively,  and $17,989 and $26,029 for the three and six months ended
June 30, 2000, 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 $23,437 and
$46,875  for each of the three and six month  periods  ended  June 30,  2001 and
2000.

     The $8.9 million loan originated and  underwritten by Citicorp (see Note 5)
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 $2 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  $244,018  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,  for a total of
$875,973,  which is less than the approved amount of $930,000.  As of August 13,
2001,  $228,528 of such amount has been  funded from the  Partnership's  working
capital  reserve,  and $84,257 has been funded from the Scottsdale  replacements
reserve.

     During 2000, the General Partner approved a $145,000 renovation project for
the  Roseville  hotel,  to be funded  from the  working  capital  reserve of the
Partnership in the amount of $70,000 and from the Roseville replacements reserve
in the amount of $75,000. During 2000, $20,409 was funded from the Partnership's
working capital  reserve and $75,526 was funded from the Roseville  replacements
reserve for this project. During 2001, $46,192 was funded from the Partnership's
working  capital  reserve to complete  this  project,  for a total of  $142,127,
slightly less than the approved amount of $145,000.

     In April 2001, the Partnership  approved a $280,000  renovation project for
the Minneapolis  hotel. The cost will be funded from the working capital reserve
of  the  Partnership  in  the  amount  of  $217,000  and  from  the  Minneapolis
replacements  reserve in the amount of $63,000.  As of August 13, 2001, $204 was
funded from the  Partnership's  working  capital  reserve and $29,704 was funded
from the Minneapolis 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 six months ended June 30,
2001 and  2000 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

                                      -10-

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

improvements  reserves,  and to fund the capital  projects,  as discussed above.
Current  liabilities  at June 30,  2001 were  $1,171,551,  which  represented  a
$232,468 increase from the balance at December 31, 2000. This increase primarily
resulted  from  increases  in  accounts  payable  and  accrued   expenses,   and
distributions payable, partially offset by a decrease 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  $402,294  during the six
months ended both June 30, 2001 and 2000. The Partnership's balance on this loan
was  $8,465,673  and  $8,537,759  as of June 30,  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
six months ended June 30, 2001 and 2000, the  Partnership  made escrow  deposits
aggregating  $116,188 and $116,188,  respectively,  for capital improvements and
$210,699 and $238,488,  respectively, for estimated annual real estate taxes. As
of June 30, 2001 and December 31, 2000,  the servicer  held $69,391 and $99,854,
respectively, for capital improvements and $136,915 and $119,232,  respectively,
for real estate  taxes.  Additionally,  the servicer  held $3,522 for  insurance
reserves as of both June 30, 2001 and December 31, 2000.

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

     The  working  capital  reserve  of $0 and  $8,456  as of June 30,  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
----------------------------

     Distributions  declared  and  payable to BAC  holders of record  during the
first two quarters of 2001 and 2000 follow.

                                       2001                        2000
                            ---------------------------------------------------
          Quarter Ended        Total        Per BAC        Total        Per BAC
          -------------     ---------       -------      ---------      -------

          March 31          $      --       $    --      $      --      $    --
          June 30             173,732          0.20        147,673         0.17
                            ---------       -------      ---------      -------
                            $ 173,732       $  0.20      $ 147,673      $  0.17
                            =========       =======      =========      =======

                                      -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 the results of
hotel operations, decreased $96,122 during the three month period ended June 30,
2001, from the comparable period in 2000, primarily due to a $70,765 decrease in
gross operating income, coupled with a $27,976 increase in unallocated operating
expenses.  The decrease in gross operating income was primarily due to decreases
in rooms  revenue and telephone  revenue  which  exceeded the decreases in rooms
expense and telephone  expense.  The increase in unallocated  operating expenses
was primarily due to increases in property taxes, depreciation and amortization,
loss on disposal of fixed assets, and energy expense.  Partially  offsetting the
increase in unallocated  operating expenses were decreases in marketing expense,
property operations and maintenance expense and building lease expense.

     The  Partnership's net income decreased $23,250 during the six month period
ended June 30, 2001,  from the  comparable  period in 2000,  primarily  due to a
$123,066  increase in  unallocated  operating  expenses,  partially  offset by a
$92,822  increase  in  gross  operating  income.  The  increase  in  unallocated
operating   expenses  was  primarily  due  to  increases  in  depreciation   and
amortization,  loss on disposal of fixed assets, energy expense, property taxes,
and  general  and  administrative  expenses,  partially  offset by a decrease in
property  operations and  maintenance  expense.  The increase in gross operating
income was due to an increase in rooms  revenue and  decreases in rooms  expense
and telephone  expense,  partially offset by decreases in telephone  revenue and
food and beverage revenue.

     See the  following  discussion  for an analysis of each hotel's  results of
operations for the three and six months ended June 30, 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  results of operations 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 results of  operations  and
average  occupancy  for the hotels  for the three and six months  ended June 30,
2001 and 2000, follow.

                                      -12-

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

<TABLE>
<CAPTION>

                                               Gross Operating Income              Gross Operating Income
                                             for the three months ended           for the six months ended
                                                      June 30,                            June 30,
                                             -----------------------------       ----------------------------
                                                2001               2000             2001              2000
                                             ----------         ----------       ----------        ----------
         <S>                                 <C>                <C>              <C>               <C>
         Clearwater, Fl                      $  205,831         $  222,244       $  671,923        $  567,766
         Minneapolis, MN                        477,225            504,434          849,123           880,222
         Plymouth, MN                           243,511            262,026          429,938           425,498
         Roseville, MN                          298,285            271,684          490,210           460,375
         Scottsdale, AZ                         440,849            476,078        1,338,072         1,352,583
                                             ----------         ----------       ----------        ----------
                                             $1,665,701         $1,736,466       $3,779,266        $3,686,444
                                             ==========         ==========       ==========        ==========


                                                  Operating Income                    Operating Income
                                             for the three months ended           for the six months ended
                                                      June 30,                            June 30,
                                             -----------------------------       ----------------------------
                                                2001               2000             2001              2000
                                             ----------         ----------       ----------        ----------
         Clearwater, Fl                      $   47,986         $   50,881       $  306,363        $  213,508
         Minneapolis, MN                        259,400            281,044          396,157           417,106
         Plymouth, MN                           103,346            120,255          128,633           124,985
         Roseville, MN                          145,966            122,599          175,570           146,818
         Scottsdale, AZ                         (10,988)            19,644          284,384           325,988
         Depreciation and partnership
           operating expenses                  (357,981)          (307,953)        (712,517)         (619,571)
                                             ----------         ----------       ----------        ----------
                                             $  187,729         $  286,470       $  578,590        $  608,834
                                             ==========         ==========       ==========        ==========


                                                 Average Occupancy                   Average Occupancy
                                             for the three months ended           for the six months ended
                                                      June 30,                            June 30,
                                             -----------------------------       ----------------------------
                                                2001               2000             2001              2000
                                             ----------         ----------       ----------        ----------
         Clearwater, Fl                            52%               56%              64%               62%
         Minneapolis, MN                           84%               91%              78%               84%
         Plymouth, MN                              74%               79%              69%               69%
         Roseville, MN                             82%               78%              75%               74%
         Scottsdale, AZ                            77%               82%              82%               84%
                                                  ---               ---              ---               ---
         Weighted Average Occupancy (1)            74%               78%              74%               76%
                                                  ===               ===              ===               ===
</TABLE>

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

                        Three Months Ended June 30, 2001
                        --------------------------------

Clearwater,  Florida:  Gross operating income and operating income for the three
month  period  ended June 30, 2001  decreased  from the same period in 2000 as a
result of a four point decrease in average  occupancy coupled with a one percent
decrease in the average room rate.  The  decreases in average  occupancy and the
average room rate were the result of the  weakening  economy  combined  with the
hotel's inability to replace, in 2001, the revenues generated in 2000 by a large
construction company client.

                                      -13-

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

Minneapolis,  Minnesota:  Gross  operating  income and operating  income for the
three month period ended June 30, 2001 decreased from the same period in 2000 as
a result of a seven point decrease in average occupancy, despite a three percent
increase in the average room rate. The decrease in average occupancy was the due
to the hotel's  inability to replace,  in 2001, the demand  generated by a major
convention  held in the area during 2000.  The increase in the average room rate
was due to customary seasonal rate hikes.

Plymouth,  Minnesota:  Gross operating income and operating income for the three
month  period  ended June 30, 2001  decreased  from the same period in 2000 as a
result of a five point decrease in average occupancy,  partially offset by a one
percent increase in the average room rate. The decrease in average occupancy was
due to the slowing  economy  coupled with the hotel's  inability to replace,  in
2001, the demand  generated by a major  convention held in the area during 2000.
The increase in the average room rate was due to customary seasonal rate hikes.

Roseville,  Minnesota: Gross operating income and operating income for the three
month  period  ended June 30, 2001  increased  from the same period in 2000 as a
result of a four  point  increase  in  average  occupancy  coupled  with a three
percent  increase in the average room rate.  The increases in average  occupancy
and the  average  room  rate  were  the  result  of a strong  base of long  term
construction business and seasonal rate hikes during the second quarter of 2001.

Scottsdale,  Arizona:  Gross operating income and operating income for the three
month  period  ended June 30, 2001  decreased  from the same period in 2000 as a
result of a five point  decrease  in average  occupancy,  despite a one  percent
increase in the average  room rate.  The decrease in average  occupancy  was the
result of the weakening economy and a drop in German tourism, which is typically
a large  source of business in the area.  The  increase in the average room rate
was due to a higher negotiated rate with two major clients.

                         Six Months Ended June 30, 2001
                         ------------------------------

Clearwater,  Florida:  Gross operating  income and operating  income for the six
month  period  ended June 30, 2001  increased  from the same period in 2000 as a
result of an eleven 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 primarily the result of Super Bowl XXXV,  which was held
in Tampa, Florida in January 2001.

Minneapolis,  Minnesota: Gross operating income and operating income for the six
month  period  ended June 30, 2001  decreased  from the same period in 2000 as a
result of a six point decrease in average  occupancy coupled with a five percent
decrease in the average room rate.  The  decreases in average  occupancy and the
average  room  rate  were  due to the  weakening  economy,  budget  cuts  at the
University  of Minnesota,  and the hotel's  inability to replace,  in 2001,  the
demand generated by a major convention held in the area during 2000.

Plymouth,  Minnesota:  Gross operating  income and operating  income for the six
month  period  ended June 30, 2001  increased  slightly  from the same period in
2000.  During this period  there was a one percent  increase in the average room
rate while average occupancy remained constant at 69%. These results were due to
the  NCAA  Final  Four  college  basketball  playoffs,  which  were  held at the
Metrodome in downtown  Minneapolis  during the first quarter 2001, offset by the
impact of  decreased  demand in the area  during the  second  quarter  2001,  as
discussed above.

                                      -14-

<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 six
month  period  ended June 30, 2001  increased  from the same period in 2000 as a
result of a six percent  increase in the average  room rate  coupled  with a one
point increase in average occupancy.  The increases in the average room rate and
average  occupancy were due to the NCAA Final Four college  basketball  playoffs
during  the  first  quarter  2001,  combined  with a  strong  base of  long-term
construction business and seasonal rate hikes during the second quarter of 2001.

Scottsdale,  Arizona:  Gross operating  income and operating  income for the six
month  period  ended June 30, 2001  decreased  from the same period in 2000 as a
result of a two point  decrease in average  occupancy  and related  decreases in
other revenue  categories,  partially  offset by a three percent increase in the
average room rate, as discussed  above.  The larger decrease in operating income
was also due to an increase  in  marketing  expenses  for the  promotion  of the
recent renovations.


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  BACs 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  BACs 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 did not express any opinion and remained neutral toward
the offers for the purchase of BACs 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,  2001.  This halt will be lifted  effective
January 1, 2002.

                                      -15-

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

     a.   None.

     b.   No  reports  on Form 8-K were  filed  with the  Commission  during the
          quarter ended June 30, 2001.

     All other items are not applicable.

                                      -16-

<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


August 13, 2001                        by:  /s/ Michael J. Tuszka
---------------                             ----------------------------------
DATE                                        Michael J. Tuszka
                                              Vice President
                                              and Chief Accounting Officer
                                              (Principal Financial Officer
                                              and Principal Accounting Officer)


                                      -17-

<PAGE>