<PAGE>
                                                                               .
                                                                               .
                                                                               .
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING BALANCE SHEET
JUNE 30, 2003
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                  MERISTAR        NON-        MERISTAR        AGH         MERISTAR
                                                                HOSPITALITY     GUARANTOR      SUB 7C,       UPREIT,       SUB 5N,
                                                                  OP, L.P.    SUBSIDIARIES       LLC          LLC            LLC
                                                                -----------   ------------   ----------    ----------    ----------
<S>                                                             <C>           <C>            <C>           <C>           <C>
ASSETS
   Investment in hotel properties                                   17,489      1,291,206            --            --         4,130
   Accumulated depreciation                                        (10,935)      (195,598)           --            --          (610)
                                                                ----------     ----------    ----------    ----------    ----------
                                                                     6,554      1,095,608            --            --         3,520
                                                                        --             --            --            --            --
   Restricted cash                                                  25,066          4,924            --            --            --
   Investments in and advances to affiliates                     2,393,978          8,200            32         3,056            --
   Due from subsidiaries                                          (700,592)       258,772            --             7         3,987
   Note receivable from Interstate Hotels                          120,855             --            --            --            --
   Prepaid expenses and other assets                                15,307            286            --            --            --
   Accounts receivable, net of allowance for doubtful accounts      14,736          1,169            --            --            --
   Marketable securities                                            18,056             --            --            --            --
   Cash and cash equivalents                                        40,245             --            --            --            --
                                                                ----------     ----------    ----------    ----------    ----------
                                                                 1,934,205      1,368,959            32         3,063         7,507
                                                                ==========     ==========    ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
   Long-term debt                                                  927,788        348,399            --            --            --
   Notes payable to MeriStar Hospitality Corporation               357,699             --            --            --            --
   Accounts payable, accrued expenses and other liabilities         17,345          5,977            --            --            22
   Accrued interest                                                 48,497          3,374            --            --            --
   Due to Interstate Hotels & Resorts                                1,095             --            --            --            --
   Other liabilities                                                 5,133           (602)           --            --            --
                                                                ----------     ----------    ----------    ----------    ----------
   Total liabilities                                             1,357,557        357,148            --            --            22
                                                                ----------     ----------    ----------    ----------    ----------

   Minority interests                                                2,565             --            --            --            --
   Redeemable OP units at redemption value                          28,851             --            --            --            --
   Partners' capital - Common OP Units                             545,232      1,011,811            32         3,063         7,485
                                                                ----------     ----------    ----------    ----------    ----------
                                                                 1,934,205      1,368,959            32         3,063         7,507
                                                                ==========     ==========    ==========    ==========    ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                 MERISTAR       MERISTAR      MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 8A,        SUB 8F,       SUB 8G,       SUB 6H,       SUB 8B,
                                                                    LLC            L.P.          LLC           L.P.          LLC
                                                                ----------     ----------    ----------    ----------    ----------
<S>                                                             <C>            <C>           <C>           <C>           <C>
ASSETS
   Investment in hotel properties                                       --         11,492            --        13,642        82,608
   Accumulated depreciation                                             --         (2,195)           --        (2,129)      (11,085)
                                                                ----------     ----------    ----------    ----------    ----------
                                                                        --          9,297            --        11,513        71,523
                                                                        --             --            --            --            --
   Restricted cash                                                      --            115            --            --            --
   Investments in and advances to affiliates                            --             --            72            --            --
   Due from subsidiaries                                             4,878          6,129             9         6,312        28,664
   Note receivable from Interstate Hotels                               --             --            --            --            --
   Prepaid expenses and other assets                                    --              7            --             5            22
   Accounts receivable, net of allowance for doubtful accounts         (17)            --            --            --            --
   Marketable securities                                                --             --            --            --            --
   Cash and cash equivalents                                            --             --            --            --            --
                                                                ----------     ----------    ----------    ----------    ----------
                                                                     4,861         15,548            81        17,830       100,209
                                                                ==========     ==========    ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
   Long-term debt                                                       --             --            --            --            --
   Notes payable to MeriStar Hospitality Corporation                    --             --            --            --            --
   Accounts payable, accrued expenses and other liabilities            (37)            77            --           210         2,582
   Accrued interest                                                     --             --            --            --            --
   Due to Interstate Hotels & Resorts                                   --             --            --            --            --
   Other liabilities                                                   (96)            --            --            --            --
                                                                ----------     ----------    ----------    ----------    ----------
   Total liabilities                                                  (133)            77            --           210         2,582
                                                                ----------     ----------    ----------    ----------    ----------

   Minority interests                                                   --             --            --            --            --
   Redeemable OP units at redemption value                              --             --            --            --            --
   Partners' capital - Common OP Units                               4,994         15,471            81        17,620        97,627
                                                                ----------     ----------    ----------    ----------    ----------
                                                                     4,861         15,548            81        17,830       100,209
                                                                ==========     ==========    ==========    ==========    ==========
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING BALANCE SHEET
JUNE 30, 2003
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                 MERISTAR       MERISTAR      MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 1C,        SUB 8E,       SUB 7F,       SUB 5L,       SUB 3C,
                                                                    L.P.           LLC           LLC           LLC           LLC
                                                                ----------     ----------    ----------    ----------    ----------
<S>                                                             <C>            <C>           <C>           <C>           <C>
ASSETS
   Investment in hotel properties                                   25,404         15,342         7,760        11,671        17,392
   Accumulated depreciation                                         (5,393)        (2,732)           --          (572)       (3,348)
                                                                ----------     ----------    ----------    ----------    ----------
                                                                    20,011         12,610         7,760        11,099        14,044
                                                                        --             --            --            --            --
   Restricted cash                                                      --             --            --            --            --
   Investments in and advances to affiliates                            --             --            --            --            --
   Due from subsidiaries                                            (2,776)         6,185         4,719         4,104         4,616
   Note receivable from Interstate Hotels                               --             --            --            --            --
   Prepaid expenses and other assets                                    17             --            --             6            43
   Accounts receivable, net of allowance for doubtful accounts          --             --            --           (20)           --
   Marketable securities                                                --             --            --            --            --
   Cash and cash equivalents                                            --             --            --            --            --
                                                                ----------     ----------    ----------    ----------    ----------
                                                                    17,252         18,795        12,479        15,189        18,703
                                                                ==========     ==========    ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
   Long-term debt                                                       --             --            --            --            --
   Notes payable to MeriStar Hospitality Corporation                    --             --            --            --            --
   Accounts payable, accrued expenses and other liabilities             43            (23)          182            31           146
   Accrued interest                                                     --             --            --            --            --
   Due to Interstate Hotels & Resorts                                   --             --            --            --            --
   Other liabilities                                                    --             --            --            --            --
                                                                ----------     ----------    ----------    ----------    ----------
   Total liabilities                                                    43            (23)          182            31           146
                                                                ----------     ----------    ----------    ----------    ----------

   Minority interests                                                   --             --            --            --            --
   Redeemable OP units at redemption value                              --             --            --            --            --
   Partners' capital - Common OP Units                              17,209         18,818        12,297        15,158        18,557
                                                                ----------     ----------    ----------    ----------    ----------
                                                                    17,252         18,795        12,479        15,189        18,703
                                                                ==========     ==========    ==========    ==========    ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                 MERISTAR       MERISTAR      MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 5R,        SUB 6D,       SUB 6E,       SUB 4E,       SUB 1B,
                                                                    LLC            LLC           LLC           L.P.          LLC
                                                                ----------     ----------    ----------    ----------    ----------
<S>                                                             <C>            <C>           <C>           <C>           <C>
ASSETS
   Investment in hotel properties                                       --         17,430        44,621         5,820        18,496
   Accumulated depreciation                                             --         (2,620)       (9,156)           --        (3,813)
                                                                ----------     ----------    ----------    ----------    ----------
                                                                        --         14,810        35,465         5,820        14,683
                                                                        --             --            --            --            --
   Restricted cash                                                      --             --            --            --            --
   Investments in and advances to affiliates                            43             --            --            --            --
   Due from subsidiaries                                               (43)         7,581        20,391         2,883        13,984
   Note receivable from Interstate Hotels                               --             --            --            --            --
   Prepaid expenses and other assets                                    --             --            --            --            37
   Accounts receivable, net of allowance for doubtful accounts          --            106            --            --            96
   Marketable securities                                                --             --            --            --            --
   Cash and cash equivalents                                            --             --            --            --            --
                                                                ----------     ----------    ----------    ----------    ----------
                                                                        --         22,497        55,856         8,703        28,800
                                                                ==========     ==========    ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
   Long-term debt                                                       --             --            --            --            37
   Notes payable to MeriStar Hospitality Corporation                    --             --            --            --            --
   Accounts payable, accrued expenses and other liabilities             --             12          (177)          155            38
   Accrued interest                                                     --             --            --            --            --
   Due to Interstate Hotels & Resorts                                   --             --            --            --            --
   Other liabilities                                                    --             --            --            --            --
                                                                ----------     ----------    ----------    ----------    ----------
   Total liabilities                                                    --             12          (177)          155            75
                                                                ----------     ----------    ----------    ----------    ----------

   Minority interests                                                   --             --            --            --            --
   Redeemable OP units at redemption value                              --             --            --            --            --
   Partners' capital - Common OP Units                                  --         22,485        56,033         8,548        28,725
                                                                ----------     ----------    ----------    ----------    ----------
                                                                        --         22,497        55,856         8,703        28,800
                                                                ==========     ==========    ==========    ==========    ==========
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING BALANCE SHEET
JUNE 30, 2003
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                 MERISTAR       MERISTAR      MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 5F,        SUB 6G,       SUB 8C,       SUB 4C,       SUB 4H,
                                                                    L.P.           LLC           LLC           L.P.          L.P.
                                                                ----------     ----------    ----------    ----------    ----------
<S>                                                             <C>            <C>           <C>           <C>           <C>
ASSETS
   Investment in hotel properties                                   19,400         22,485         5,820            --         4,850
   Accumulated depreciation                                             --         (4,596)           --            --            --
                                                                ----------     ----------    ----------    ----------    ----------
                                                                    19,400         17,889         5,820            --         4,850
                                                                        --             --            --            --            --
   Restricted cash                                                      --             --            --            --            --
   Investments in and advances to affiliates                            --             --            --            --            --
   Due from subsidiaries                                            11,758          6,001         5,057        11,503          (836)
   Note receivable from Interstate Hotels                               --             --            --            --            --
   Prepaid expenses and other assets                                     5             --            22            (5)            7
   Accounts receivable, net of allowance for doubtful accounts          --             --            --             1            --
   Marketable securities                                                --             --            --            --            --
   Cash and cash equivalents                                            --             --            --            --            --
                                                                ----------     ----------    ----------    ----------    ----------
                                                                    31,163         23,890        10,899        11,499         4,021
                                                                ==========     ==========    ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
   Long-term debt                                                       --             --            --            --            --
   Notes payable to MeriStar Hospitality Corporation                    --             --            --            --            --
   Accounts payable, accrued expenses and other liabilities            216            (42)         (222)          125           111
   Accrued interest                                                     --             --            --            --            --
   Due to Interstate Hotels & Resorts                                   --             --            --            --            --
   Other liabilities                                                    --             --            --           (32)           --
                                                                ----------     ----------    ----------    ----------    ----------
   Total liabilities                                                   216            (42)         (222)           93           111
                                                                ----------     ----------    ----------    ----------    ----------

   Minority interests                                                   --             --            --            --            --
   Redeemable OP units at redemption value                              --             --            --            --            --
   Partners' capital - Common OP Units                              30,947         23,932        11,121        11,406         3,910
                                                                ----------     ----------    ----------    ----------    ----------
                                                                    31,163         23,890        10,899        11,499         4,021
                                                                ==========     ==========    ==========    ==========    ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                                                                          MERISTAR
                                                                 MERISTAR       MERISTAR      MERISTAR      MERISTAR       SUB 7A
                                                                  SUB 7E,        SUB 3D,       SUB 1A,       SUB 5E,        JOINT
                                                                    LLC            LLC           LLC           LLC         VENTURE
                                                                ----------     ----------    ----------    ----------    ----------
<S>                                                             <C>            <C>           <C>           <C>           <C>
ASSETS
   Investment in hotel properties                                   18,066         22,657        11,412        52,917         5,820
   Accumulated depreciation                                         (3,018)        (6,653)       (2,703)       (9,116)           --
                                                                ----------     ----------    ----------    ----------    ----------
                                                                    15,048         16,004         8,709        43,801         5,820
                                                                        --             --            --            --            --
   Restricted cash                                                      --             --            --            --            --
   Investments in and advances to affiliates                            --             --            --            --            --
   Due from subsidiaries                                             6,314          7,952         6,728        17,062         4,665
   Note receivable from Interstate Hotels                               --             --            --            --            --
   Prepaid expenses and other assets                                     1             --            --            --             5
   Accounts receivable, net of allowance for doubtful accounts          --             --            --            --            --
   Marketable securities                                                --             --            --            --            --
   Cash and cash equivalents                                            --             --            --            --            --
                                                                ----------     ----------    ----------    ----------    ----------
                                                                    21,363         23,956        15,437        60,863        10,490
                                                                ==========     ==========    ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
   Long-term debt                                                       --             --            --            --            --
   Notes payable to MeriStar Hospitality Corporation                    --             --            --            --            --
   Accounts payable, accrued expenses and other liabilities            101            115            29           340           167
   Accrued interest                                                     --             --            --            --            --
   Due to Interstate Hotels & Resorts                                   --             --            --            --            --
   Other liabilities                                                    --             --            --            --            --
                                                                ----------     ----------    ----------    ----------    ----------
   Total liabilities                                                   101            115            29           340           167
                                                                ----------     ----------    ----------    ----------    ----------

   Minority interests                                                   --             --            --            --            --
   Redeemable OP units at redemption value                              --             --            --            --            --
   Partners' capital - Common OP Units                              21,262         23,841        15,408        60,523        10,323
                                                                ----------     ----------    ----------    ----------    ----------
                                                                    21,363         23,956        15,437        60,863        10,490
                                                                ==========     ==========    ==========    ==========    ==========
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING BALANCE SHEET
JUNE 30, 2003
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                 MERISTAR       MERISTAR      MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 6K,        SUB 2B,       SUB 3A,       SUB 4A,       SUB 4D,
                                                                    LLC            LLC           LLC           LLC           LLC
                                                                ----------     ----------    ----------    ----------    ----------
<S>                                                             <C>            <C>           <C>           <C>           <C>
ASSETS
   Investment in hotel properties                                   22,864          3,880         3,880         3,395            --
   Accumulated depreciation                                         (4,666)            --            --            --            --
                                                                ----------     ----------    ----------    ----------    ----------
                                                                    18,198          3,880         3,880         3,395            --
                                                                        --             --            --            --            --
   Restricted cash                                                      --             --            --            --            --
   Investments in and advances to affiliates                            --             --            --            --            --
   Due from subsidiaries                                            18,611         (1,164)        1,658         4,091         3,029
   Note receivable from Interstate Hotels                               --             --            --            --            --
   Prepaid expenses and other assets                                    --             --             2            --             3
   Accounts receivable, net of allowance for doubtful accounts          --            (14)           --            --            --
   Marketable securities                                                --             --            --            --            --
   Cash and cash equivalents                                            --             --            --            --            --
                                                                ----------     ----------    ----------    ----------    ----------
                                                                    36,809          2,702         5,540         7,486         3,032
                                                                ==========     ==========    ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
   Long-term debt                                                       --          5,700            --            --            --
   Notes payable to MeriStar Hospitality Corporation                    --             --            --            --            --
   Accounts payable, accrued expenses and other liabilities              9            (44)          119           228           107
   Accrued interest                                                     --             --            --            --            --
   Due to Interstate Hotels & Resorts                                   --             --            --            --            --
   Other liabilities                                                    --             --            --            --            --
                                                                ----------     ----------    ----------    ----------    ----------
   Total liabilities                                                     9          5,656           119           228           107
                                                                ----------     ----------    ----------    ----------    ----------

   Minority interests                                                   --             --            --            --            --
   Redeemable OP units at redemption value                              --             --            --            --            --
   Partners' capital - Common OP Units                              36,800         (2,954)        5,421         7,258         2,925
                                                                ----------     ----------    ----------    ----------    ----------
                                                                    36,809          2,702         5,540         7,486         3,032
                                                                ==========     ==========    ==========    ==========    ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                 MERISTAR       MERISTAR         MDV        MERISTAR      MERISTAR
                                                                  SUB 2A,        SUB 6L,       LIMITED       SUB 5C,       SUB 6J,
                                                                    LLC            LLC       PARTNERSHIP       LLC           LLC
                                                                ----------     ----------    -----------   ----------    ----------
<S>                                                             <C>            <C>           <C>           <C>           <C>
ASSETS
   Investment in hotel properties                                    4,850         12,610         3,846         3,880        19,446
   Accumulated depreciation                                             --             --          (616)           --        (3,504)
                                                                ----------     ----------    -----------   ----------    ----------
                                                                     4,850         12,610         3,230         3,880        15,942
                                                                        --             --            --            --            --
   Restricted cash                                                      --             --            --            --            --
   Investments in and advances to affiliates                            --             --            --            --            --
   Due from subsidiaries                                            (1,378)         5,563         2,310           546         6,778
   Note receivable from Interstate Hotels                               --             --            --            --            --
   Prepaid expenses and other assets                                    22              2             9            44            39
   Accounts receivable, net of allowance for doubtful accounts           1             --            --            --            --
   Marketable securities                                                --             --            --            --            --
   Cash and cash equivalents                                            --             --            --            --            --
                                                                ----------     ----------    -----------   ----------    ----------
                                                                     3,495         18,175         5,549         4,470        22,759
                                                                ==========     ==========    ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
   Long-term debt                                                    9,297             --            --            --            --
   Notes payable to MeriStar Hospitality Corporation                    --             --            --            --            --
   Accounts payable, accrued expenses and other liabilities            (14)            83            63           815          (183)
   Accrued interest                                                     --             --            --            --            --
   Due to Interstate Hotels & Resorts                                   --             --            --            --            --
   Other liabilities                                                    --             --            --            --            --
                                                                ----------     ----------    -----------   ----------    ----------
   Total liabilities                                                 9,283             83            63           815          (183)
                                                                ----------     ----------    -----------   ----------    ----------

   Minority interests                                                   --             --            --            --            --
   Redeemable OP units at redemption value                              --             --            --            --            --
   Partners' capital - Common OP Units                              (5,788)        18,092         5,486         3,655        22,942
                                                                ----------     ----------    -----------   ----------    ----------
                                                                     3,495         18,175         5,549         4,470        22,759
                                                                ==========     ==========    ==========    ==========    ==========
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING BALANCE SHEET
JUNE 30, 2003
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                 MERISTAR       MERISTAR      MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 1D,        SUB 7B,       SUB 7D,       SUB 7G,       SUB 6B,
                                                                    L.P.           L.P.          LLC           LLC           LLC
                                                                ----------     ----------    -----------   ----------    ----------
<S>                                                             <C>            <C>           <C>           <C>           <C>
ASSETS
   Investment in hotel properties                                   68,542          4,722        52,231         4,850        10,748
   Accumulated depreciation                                        (10,907)            --        (8,953)           --        (1,971)
                                                                ----------     ----------    -----------   ----------    ----------
                                                                    57,635          4,722        43,278         4,850         8,777
                                                                        --             --            --            --            --
   Restricted cash                                                      --             --            --            --            --
   Investments in and advances to affiliates                            --             --            --            --            --
   Due from subsidiaries                                            17,810         (3,352)       24,026           118         2,847
   Note receivable from Interstate Hotels                               --             --            --            --            --
   Prepaid expenses and other assets                                    --             --           267            --            --
   Accounts receivable, net of allowance for doubtful accounts          --             --           844            --            --
   Marketable securities                                                --             --            --            --            --
   Cash and cash equivalents                                            --             --            --            --            --
                                                                ----------     ----------    -----------   ----------    ----------
                                                                    75,445          1,370        68,415         4,968        11,624
                                                                ==========     ==========    ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
   Long-term debt                                                       --             --            --            --            --
   Notes payable to MeriStar Hospitality Corporation                    --             --            --            --            --
   Accounts payable, accrued expenses and other liabilities           (104)         1,111         4,383           (95)           (3)
   Accrued interest                                                     --             --            --            --            --
   Due to Interstate Hotels & Resorts                                   --             --          (200)           --            --
   Other liabilities                                                    --             --            --            --            --
                                                                ----------     ----------    -----------   ----------    ----------
   Total liabilities                                                  (104)         1,111         4,183           (95)           (3)
                                                                ----------     ----------    -----------   ----------    ----------

   Minority interests                                                   --             --            --            --            --
   Redeemable OP units at redemption value                              --             --            --            --            --
   Partners' capital - Common OP Units                              75,549            259        64,232         5,063        11,627
                                                                ----------     ----------    -----------   ----------    ----------
                                                                    75,445          1,370        68,415         4,968        11,624
                                                                ==========     ==========    ==========    ==========    ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                 MERISTAR       MERISTAR      MERISTAR      MERISTAR        AGH
                                                                  SUB 4I,        SUB 5D,       SUB 5H,       SUB 7H,       PSS I,
                                                                    L.P.           LLC           LLC           LLC          INC.
                                                                ----------     ----------    ----------    ----------    ----------
<S>                                                             <C>            <C>           <C>           <C>           <C>
ASSETS
   Investment in hotel properties                                    2,425         42,040        26,432         4,237        14,065
   Accumulated depreciation                                             --         (7,374)           --            --            --
                                                                ----------     ----------    ----------    ----------    ----------
                                                                     2,425         34,666        26,432         4,237        14,065
                                                                        --             --            --            --            --
   Restricted cash                                                      --             --            --            --            --
   Investments in and advances to affiliates                            --         51,368            --            --            --
   Due from subsidiaries                                               639         (6,803)       10,443         6,087        11,732
   Note receivable from Interstate Hotels                               --             --            --            --            --
   Prepaid expenses and other assets                                     8             17             1            --            --
   Accounts receivable, net of allowance for doubtful accounts          --             --            --            --            --
   Marketable securities                                                --             --            --            --            --
   Cash and cash equivalents                                            --             --            --            --            --
                                                                ----------     ----------    ----------    ----------    ----------
                                                                     3,072         79,248        36,876        10,324        25,797
                                                                ==========     ==========    ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
   Long-term debt                                                       --         24,000            --            13            --
   Notes payable to MeriStar Hospitality Corporation                    --             --            --            --            --
   Accounts payable, accrued expenses and other liabilities            282            219           189           244           195
   Accrued interest                                                     --             --            --            --            --
   Due to Interstate Hotels & Resorts                                   --             --            --            --            --
   Other liabilities                                                    --             --            --            --            --
                                                                ----------     ----------    ----------    ----------    ----------
   Total liabilities                                                   282         24,219           189           257           195
                                                                ----------     ----------    ----------    ----------    ----------

   Minority interests                                                   --             --            --            --            --
   Redeemable OP units at redemption value                              --             --            --            --            --
   Partners' capital - Common OP Units                               2,790         55,029        36,687        10,067        25,602
                                                                ----------     ----------    ----------    ----------    ----------
                                                                     3,072         79,248        36,876        10,324        25,797
                                                                ==========     ==========    ==========    ==========    ==========
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING BALANCE SHEET
JUNE 30, 2003
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                 MERISTAR       MERISTAR      MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 2D,        SUB 4F,       SUB 5K,       SUB 5M,       SUB 1E,
                                                                    LLC            L.P.          LLC           LLC           L.P.
                                                                ----------     ----------    ----------    ----------    ----------
<S>                                                             <C>            <C>           <C>           <C>           <C>
ASSETS
   Investment in hotel properties                                    5,820         32,250        28,117        22,035        10,476
   Accumulated depreciation                                             --         (5,258)       (4,560)       (2,119)       (1,807)
                                                                ----------     ----------    ----------    ----------    ----------
                                                                     5,820         26,992        23,557        19,916         8,669
                                                                        --             --            --            --            --
   Restricted cash                                                      --             --            --            --            --
   Investments in and advances to affiliates                            --             --            --            --            --
   Due from subsidiaries                                               342          4,672          (882)        7,472         8,002
   Note receivable from Interstate Hotels                               --             --            --            --            --
   Prepaid expenses and other assets                                     1             --            --            (2)           --
   Accounts receivable, net of allowance for doubtful accounts           7             --            --            --            --
   Marketable securities                                                --             --            --            --            --
   Cash and cash equivalents                                            --             --            --            --            --
                                                                ----------     ----------    ----------    ----------    ----------
                                                                     6,170         31,664        22,675        27,386        16,671
                                                                ==========     ==========    ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
   Long-term debt                                                   10,772             --            --            --            --
   Notes payable to MeriStar Hospitality Corporation                    --             --            --            --            --
   Accounts payable, accrued expenses and other liabilities            (95)           210         3,145            87           (14)
   Accrued interest                                                     --             --            --            --            --
   Due to Interstate Hotels & Resorts                                   --             --            --            --            --
   Other liabilities                                                    --             --            --            --            --
                                                                ----------     ----------    ----------    ----------    ----------
   Total liabilities                                                10,677            210         3,145            87           (14)
                                                                ----------     ----------    ----------    ----------    ----------

   Minority interests                                                   --             --            --            --            --
   Redeemable OP units at redemption value                              --             --            --            --            --
   Partners' capital - Common OP Units                              (4,507)        31,454        19,530        27,299        16,685
                                                                ----------     ----------    ----------    ----------    ----------
                                                                     6,170         31,664        22,675        27,386        16,671
                                                                ==========     ==========    ==========    ==========    ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                 MERISTAR       MERISTAR      MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 5O,        SUB 6M        SUB 4B,       SUB 6C,       SUB 2C,
                                                                    LLC         COMPANY          L.P.          LLC           LLC
                                                                ----------     ----------    ----------    ----------    ----------
<S>                                                             <C>            <C>           <C>           <C>           <C>
ASSETS
   Investment in hotel properties                                    8,733         32,991         7,760        20,911        10,573
   Accumulated depreciation                                         (1,030)        (5,382)           --        (3,979)           --
                                                                ----------     ----------    ----------    ----------    ----------
                                                                     7,703         27,609         7,760        16,932        10,573
                                                                        --             --            --            --            --
   Restricted cash                                                      --             --            --            --            --
   Investments in and advances to affiliates                            --             --            --            --            --
   Due from subsidiaries                                             2,887         17,907        (4,817)       11,453         5,170
   Note receivable from Interstate Hotels                               --             --            --            --            --
   Prepaid expenses and other assets                                    --              8            --            --             1
   Accounts receivable, net of allowance for doubtful accounts          --             --            --            --            --
   Marketable securities                                                --             --            --            --            --
   Cash and cash equivalents                                            --             --            --            --            --
                                                                ----------     ----------    ----------    ----------    ----------
                                                                    10,590         45,524         2,943        28,385        15,744
                                                                ==========     ==========    ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
   Long-term debt                                                       --             --            --            --        18,815
   Notes payable to MeriStar Hospitality Corporation                    --             --            --            --            --
   Accounts payable, accrued expenses and other liabilities             26             19           296          (101)           36
   Accrued interest                                                     --             --            --            --            --
   Due to Interstate Hotels & Resorts                                   --             --            --            --            --
   Other liabilities                                                    --             --            --            --            --
                                                                ----------     ----------    ----------    ----------    ----------
   Total liabilities                                                    26             19           296          (101)       18,851
                                                                ----------     ----------    ----------    ----------    ----------

   Minority interests                                                   --             --            --            --            --
   Redeemable OP units at redemption value                              --             --            --            --            --
   Partners' capital - Common OP Units                              10,564         45,505         2,647        28,486        (3,107)
                                                                ----------     ----------    ----------    ----------    ----------
                                                                    10,590         45,524         2,943        28,385        15,744
                                                                ==========     ==========    ==========    ==========    ==========
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING BALANCE SHEET
JUNE 30, 2003
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                 MERISTAR       MERISTAR      MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 4G,        SUB 3B,       SUB 5G,       SUB 5P,       SUB 5J,
                                                                    L.P.           LLC           L.P.          LLC           LLC
                                                                ----------     ----------    ----------    ----------    ----------
<S>                                                             <C>            <C>           <C>           <C>           <C>
ASSETS
   Investment in hotel properties                                   13,165          7,275       163,629            39       109,109
   Accumulated depreciation                                             --             --       (27,357)          (21)      (15,075)
                                                                ----------     ----------    ----------    ----------    ----------
                                                                    13,165          7,275       136,272            18        94,034
                                                                        --             --            --            --            --
   Restricted cash                                                      --             --            --            --            --
   Investments in and advances to affiliates                            --             --            --            --            --
   Due from subsidiaries                                             7,848          2,540        39,898         2,667        20,672
   Note receivable from Interstate Hotels                               --             --            --            --            --
   Prepaid expenses and other assets                                     3             11             5             8           (29)
   Accounts receivable, net of allowance for doubtful accounts          --             --            --            --            --
   Marketable securities                                                --             --            --            --            --
   Cash and cash equivalents                                            --             --            --            --            --
                                                                ----------     ----------    ----------    ----------    ----------
                                                                    21,016          9,826       176,175         2,693       114,677
                                                                ==========     ==========    ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
   Long-term debt                                                       --             --            --            --            --
   Notes payable to MeriStar Hospitality Corporation                    --             --            --            --            --
   Accounts payable, accrued expenses and other liabilities            276            138         1,211             8           478
   Accrued interest                                                     --             --            --            --            --
   Due to Interstate Hotels & Resorts                                   --             --            --            --            --
   Other liabilities                                                    --             --            --            --            --
                                                                ----------     ----------    ----------    ----------    ----------
   Total liabilities                                                   276            138         1,211             8           478
                                                                ----------     ----------    ----------    ----------    ----------

   Minority interests                                                   --             --            --            --            --
   Redeemable OP units at redemption value                              --             --            --            --            --
   Partners' capital - Common OP Units                              20,740          9,688       174,964         2,685       114,199
                                                                ----------     ----------    ----------    ----------    ----------
                                                                    21,016          9,826       176,175         2,693       114,677
                                                                ==========     ==========    ==========    ==========    ==========
</TABLE>


<TABLE>
<CAPTION>
                                                                 MERISTAR       MERISTAR      MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 5Q,        SUB 5R,       SUB 8D,       SUB 4J,       HOTEL
                                                                    LLC            LLC           LLC           LLC      LESSEE, INC.
                                                                ----------     ----------    ----------    ----------   ------------
<S>                                                             <C>            <C>           <C>           <C>          <C>
ASSETS
   Investment in hotel properties                                   16,620         35,211        31,050        38,176         3,146
   Accumulated depreciation                                         (1,989)       (10,166)       (5,707)       (6,500)       (2,752)
                                                                ----------     ----------    ----------    ----------    ----------
                                                                    14,631         25,045        25,343        31,676           394
                                                                        --             --            --            --            --
   Restricted cash                                                      --             --            --            --            --
   Investments in and advances to affiliates                            --          4,627            --            --         1,629
   Due from subsidiaries                                             4,248          6,246         7,503         6,596           (29)
   Note receivable from Interstate Hotels                               --             --            --            --            --
   Prepaid expenses and other assets                                    --             --            23            --        16,014
   Accounts receivable, net of allowance for doubtful accounts          --             --            --           (12)       52,099
   Marketable securities                                                --             --            --            --            --
   Cash and cash equivalents                                            --             --            --            --        16,055
                                                                ----------     ----------    ----------    ----------    ----------
                                                                    18,879         35,918        32,869        38,260        86,162
                                                                ==========     ==========    ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
   Long-term debt                                                       --         23,609            --            --        45,213
   Notes payable to MeriStar Hospitality Corporation                    --             --            --            --            --
   Accounts payable, accrued expenses and other liabilities           (124)           194          (132)          128        58,318
   Accrued interest                                                     --             --            --            --           250
   Due to Interstate Hotels & Resorts                                   --             --            --            --         5,030
   Other liabilities                                                    --             --            --            --         9,234
                                                                ----------     ----------    ----------    ----------    ----------
   Total liabilities                                                  (124)        23,803          (132)          128       118,045
                                                                ----------     ----------    ----------    ----------    ----------

   Minority interests                                                   --             --            --            --            --
   Redeemable OP units at redemption value                              --             --            --            --            --
   Partners' capital - Common OP Units                              19,003         12,115        33,001        38,132       (31,883)
                                                                ----------     ----------    ----------    ----------    ----------
                                                                    18,879         35,918        32,869        38,260        86,162
                                                                ==========     ==========    ==========    ==========    ==========
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING BALANCE SHEET
JUNE 30, 2003
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                 GUARANTOR
                                                                SUBSIDIARIES                     TOTAL
                                                                   TOTAL       ELIMINATIONS   CONSOLIDATED
                                                                ------------   ------------   ------------
<S>                                                             <C>            <C>            <C>
ASSETS
   Investment in hotel properties                                 1,345,264             --      2,653,959
   Accumulated depreciation                                        (201,432)            --       (407,965)
                                                                 ----------     ----------     ----------
                                                                  1,143,832             --      2,245,994
                                                                         --             --             --
   Restricted cash                                                      115             --         30,105
   Investments in and advances to affiliates                         60,827     (2,421,291)        41,714
   Due from subsidiaries                                            441,820             --             --
   Note receivable from Interstate Hotels                                --       (120,855)            --
   Prepaid expenses and other assets                                 16,629             --         32,222
   Accounts receivable, net of allowance for doubtful accounts       53,091             --         68,996
   Marketable securities                                                 --             --         18,056
   Cash and cash equivalents                                         16,055             --         56,300
                                                                 ----------     ----------     ----------
                                                                  1,732,369     (2,542,146)     2,493,387
                                                                 ==========     ==========     ==========

LIABILITIES AND PARTNERS' CAPITAL                                                                      --
   Long-term debt                                                   137,456       (120,855)     1,292,788
   Notes payable to MeriStar Hospitality Corporation                     --             --        357,699
   Accounts payable, accrued expenses and other liabilities          75,909             --         99,231
   Accrued interest                                                     250             --         52,121
   Due to Interstate Hotels & Resorts                                 4,830             --          5,925
   Other liabilities                                                  9,106             --         13,637
                                                                 ----------     ----------     ----------
   Total liabilities                                                227,551       (120,855)     1,821,401
                                                                 ----------     ----------     ----------

   Minority interests                                                                  --           2,565
   Redeemable OP units at redemption value                                             --          28,851
   Partners' capital - Common OP Units                            1,504,818     (2,421,291)       640,570
                                                                 ----------     ----------     ----------
                                                                  1,732,369     (2,542,146)     2,493,387
                                                                 ==========     ==========     ==========
</TABLE>

<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2002
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>

                                                                   MERISTAR                          MERISTAR      AGH      MERISTAR
                                                                  HOSPITALITY     NON-GUARANTOR       SUB 7C,     UPREIT,    SUB 5N,
                                                                    OP, L.P.       SUBSIDIARIES        LLC         LLC         LLC
                                                                  -----------     -------------      --------    --------   --------

<S>                                                               <C>             <C>               <C>          <C>        <C>
ASSETS
   Investments in hotel properties                                     16,986         1,467,405          --         --        4,117
   Accumulated depreciation                                            (8,686)         (220,927)         --         --         (541)
                                                                   ----------        ----------       -----      -----       ------
                                                                        8,300         1,246,478          --         --        3,576
   Restricted cash                                                     15,374             4,876          --         --           --
   Investments in and advances to affiliates                        2,590,429             8,200          32      3,056           --
   Due from subsidiaries                                             (595,139)          196,324          --         66        3,522
   Note receivable from Interstate Hotels & Resorts                   150,657                --          --         --           --
   Prepaid expenses and other assets                                   22,457               304          --         --           --
   Accounts receivable, net of allowance for doubtful accounts         11,944             1,313          --         --           --
   Cash and cash equivalents                                           21,372                --          --         --           --
                                                                   ----------        ----------       -----      -----       ------
                                                                    2,225,394         1,457,495          32      3,122        7,098
                                                                   ==========        ==========       =====      =====       ======
LIABILITIES AND PARTNERS' CAPITAL
   Long-term debt                                                     945,830           352,052         --          --           --
   Notes payable to MeriStar Hospitality Corporation                  357,505                --         --          --           --
   Accounts payable and accrued expenses                               15,585             9,733         --          --            7
   Accrued interest                                                    49,106             3,577         --          --           --
   Due to Interstate Hotels & Resorts                                     372                --         --          --           --
   Other liabilities                                                    4,591                --         --          --           --
                                                                   ----------        ----------      -----       -----       ------
   Total liabilities                                                1,372,989           365,362         --          --            7
                                                                   ----------        ----------      -----       -----       ------

   Minority interests                                                   2,624                --         --          --           --
   Redeemable OP units at redemption value                             38,205                --         --          --           --
   Partners' capital - Common OP Units                                811,576         1,092,133         32       3,122        7,091
                                                                   ----------        ----------      -----       -----       ------
                                                                    2,225,394         1,457,495         32       3,122        7,098
                                                                   ==========        ==========      =====       =====       ======
</TABLE>

<TABLE>
<CAPTION>
                                                                     MERISTAR      MERISTAR     MERISTAR     MERISTAR     MERISTAR
                                                                     SUB 8A,        SUB 8F,      SUB 8G,      SUB 6H,      SUB 8B,
                                                                       LLC            LLC          LLC          L.P.         LLC
                                                                  -----------      --------     --------     -------      --------

<S>                                                                <C>            <C>          <C>          <C>          <C>
ASSETS
   Investments in hotel properties                                        --         11,471          --        13,635       81,872
   Accumulated depreciation                                               --         (1,933)         --        (1,877)      (9,874)
                                                                      ------         ------      ------        ------       ------
                                                                          --          9,538          --        11,758       71,998
   Restricted cash                                                        --            115          --            --           --
   Investments in and advances to affiliates                              --             --          72            --           --
   Due from subsidiaries                                               4,879          5,385          10         5,770       26,553
   Note receivable from Interstate Hotels & Resorts                       --             --          --            --           --
   Prepaid expenses and other assets                                      --              2          --            --           32
   Accounts receivable, net of allowance for doubtful accounts           (17)           (28)         --            --           --
   Cash and cash equivalents                                              --             --          --            --           --
                                                                      ------         ------      ------       -------      -------
                                                                       4,862         15,012          82        17,528       98,583
                                                                      ======         ======      ======       =======      =======
LIABILITIES AND PARTNERS' CAPITAL
   Long-term debt                                                         --             --          --            --           --
   Notes payable to MeriStar Hospitality Corporation                      --             --          --            --           --
   Accounts payable and accrued expenses                                (132)           207          --           179        2,626
   Accrued interest                                                       --             --          --            --           --
   Due to Interstate Hotels & Resorts                                     --             --          --            --           --
   Other liabilities                                                      --             --          --            --           --
                                                                      ------         ------      ------       -------      -------
   Total liabilities                                                    (132)           207          --           179        2,626
                                                                      ------         ------      ------       -------      -------

   Minority interests                                                     --             --          --            --           --
   Redeemable OP units at redemption value                                --             --          --            --           --
   Partners' capital - Common OP Units                                 4,994         14,805          82        17,349       95,957
                                                                      ------         ------      ------       -------      -------
                                                                       4,862         15,012          82        17,528       98,583
                                                                      ======         ======      ======       =======      =======
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2002
(DOLLARS IN THOUSANDS)


<TABLE>
<CAPTION>
                                                                  MERISTAR      MERISTAR    MERISTAR     MERISTAR     MERISTAR
                                                                   SUB 1C,       SUB 8E,     SUB 7F,      SUB 5L,     SUB 3C,
                                                                    L.P.          LLC          LLC          LLC         LLC
                                                                  --------      --------    --------     --------     --------
<S>                                                               <C>           <C>         <C>          <C>          <C>
ASSETS
   Investments in hotel properties                                  25,327       15,274       12,046       11,579      17,380
   Accumulated depreciation                                         (4,885)      (2,441)      (2,453)        (504)     (2,998
                                                                   -------      -------      -------      -------      ------
                                                                    20,442       12,833        9,593       11,075      14,382
   Restricted cash                                                      --           --           --           --          --
   Investments in and advances to affiliates                            --           --           --           --          --
   Due from subsidiaries                                            (2,994)       5,641        4,366        3,676       3,935
   Note receivable from Interstate Hotels & Resorts                     --           --           --           --          --
   Prepaid expenses and other assets                                    --           --           --           --          48
   Accounts receivable, net of allowance for doubtful accounts          --           --           --           28          --
   Cash and cash equivalents                                            --           --           --           --          --
                                                                   -------      -------      -------      -------      ------
                                                                    17,448       18,474       13,959       14,779      18,365
                                                                   =======      =======      =======      =======      ======
LIABILITIES AND PARTNERS' CAPITAL
   Long-term debt                                                       --           --           --           --          --
   Notes payable to MeriStar Hospitality Corporation                    --           --           --           --          --
   Accounts payable and accrued expenses                               186           (8)         162           35         208
   Accrued interest                                                     --           --           --           --          --
   Due to Interstate Hotels & Resorts                                   --           --           --           --          --
   Other liabilities                                                    --           --           --           --          --
                                                                   -------      -------      -------      -------      ------
   Total liabilities                                                   186           (8)         162           35         208
                                                                   -------      -------      -------      -------      ------

   Minority interests                                                   --           --           --           --          --
   Redeemable OP units at redemption value                              --           --           --           --          --
   Partners' capital - Common OP Units                              17,262       18,482       13,797       14,744      18,157
                                                                   -------      -------      -------      -------      ------
                                                                    17,448       18,474       13,959       14,779      18,365
                                                                   =======      =======      =======      =======      ======

</TABLE>



<TABLE>
<CAPTION>


                                                                                 OLD
                                                                   MERISTAR    MERISTAR     MERISTAR    MERISTAR     MERISTAR
                                                                    SUB 5R,     SUB 8A,      SUB 6D,    SUB 6E,      SUB 4E,
                                                                      LLC        LLC           LLC        LLC          L.P.
                                                                   --------    --------     --------    --------     --------
<S>                                                                <C>        <C>          <C>         <C>          <C>
ASSETS
   Investments in hotel properties                                       --          --      17,430      44,495       24,741
   Accumulated depreciation                                              --          --      (2,347)     (8,334)      (3,986)
                                                                    -------    --------     -------     -------      -------
                                                                         --          --      15,083      36,161       20,755
   Restricted cash                                                       --          --          --          --           --
   Investments in and advances to affiliates                             43          --          --          --           --
   Due from subsidiaries                                                (43)         --       6,781      18,092        2,772
   Note receivable from Interstate Hotels & Resorts                      --          --          --          --           --
   Prepaid expenses and other assets                                     --          --          --          --            2
   Accounts receivable, net of allowance for doubtful accounts           --          --         101          --           --
   Cash and cash equivalents                                             --          --          --          --           --
                                                                    -------    --------     -------     -------      -------
                                                                         --          --      21,965      54,253       23,529
                                                                    =======    ========     =======     =======      =======

LIABILITIES AND PARTNERS' CAPITAL
   Long-term debt                                                        --          --          --          --           --
   Notes payable to MeriStar Hospitality Corporation                     --          --          --          --           --
   Accounts payable and accrued expenses                                 --          --          18        (132)         415
   Accrued interest                                                      --          --          --          --           --
   Due to Interstate Hotels & Resorts                                    --          --          --          --           --
   Other liabilities                                                     --          --          --          --           --
                                                                    -------    --------     -------     -------      -------
   Total liabilities                                                     --          --          18        (132)         415
                                                                    -------    --------     -------     -------      -------

   Minority interests                                                    --          --          --          --           --
   Redeemable OP units at redemption value                               --          --          --          --           --
   Partners' capital - Common OP Units                                   --          --      21,947      54,385       23,114
                                                                    -------    --------     -------     -------      -------
                                                                         --          --      21,965      54,253       23,529
                                                                    =======    ========     =======     =======      =======
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2002
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>





                                                                  MERISTAR    MERISTAR     MERISTAR    MERISTAR     MERISTAR
                                                                   SUB 1B,     SUB 5F,      SUB 6G,     SUB 8C,      SUB 4C,
                                                                     LLC        L.P.          LLC         LLC         L.P.
                                                                  --------    --------     --------    --------     --------
<S>                                                               <C>         <C>          <C>         <C>          <C>
ASSETS
   Investments in hotel properties                                  18,416      31,539       22,381       11,400         --
   Accumulated depreciation                                         (3,529)     (4,421)      (4,166)        --           --
                                                                   -------     -------      -------     --------     ------
                                                                    14,887      27,118       18,215       11,400         --
   Re stricted cash                                                      --          --           --           --         --
   Investments in and advances to affiliates                            --          --           --           --         --
   Due from subsidiaries                                            12,954      10,473        5,200        4,587     11,521
   Note receivable from Interstate Hotels & Resorts                     --          --           --           --         --
   Prepaid expenses and other assets                                     1           5           --            1         --
   Accounts receivable, net of allowance for doubtful accounts          96          --           --           --          1
   Cash and cash equivalents                                            --          --           --           --         --
                                                                   -------     -------      -------     --------     ------
                                                                    27,938      37,596       23,415       15,988     11,522
                                                                   =======     =======      =======     ========     ======
LIABILITIES AND PARTNERS' CAPITAL
   Long-term debt                                                       48          --           --           --         --
   Notes payable to MeriStar Hospitality Corporation                    --          --           --           --         --
   Accounts payable and accrued expenses                                51         170          108          (77)        98
   Accrued interest                                                     --          --           --           --         --
   Due to Interstate Hotels & Resorts                                   --          --           --           --         --
   Other liabilities                                                    --          --           --           --         --
                                                                   -------     -------      -------     --------     ------
   Total liabilities                                                    99         170          108          (77)        98
                                                                   -------     -------      -------     --------     ------

   Minority interests                                                   --          --           --           --         --
   Redeemable OP units at redemption value                              --          --           --           --         --
   Partners' capital - Common OP Units                              27,839      37,426       23,307       16,065     11,424
                                                                   -------     -------      -------     --------     ------
                                                                    27,938      37,596       23,415       15,988     11,522
                                                                   =======     =======      =======     ========     ======
</TABLE>



<TABLE>
<CAPTION>
                                                                  MERISTAR    MERISTAR     MERISTAR    MERISTAR     MERISTAR
                                                                   SUB 4H,     SUB 7E,      SUB 3D,     SUB 1A,      SUB 5E,
                                                                    L.P.         LLC         LLC         LLC          LLC
                                                                  -------     -------      -------     --------     ------
<S>                                                               <C>         <C>          <C>         <C>          <C>
ASSETS
   Investments in hotel properties                                  12,462       17,972      22,549      11,318       52,868
   Accumulated depreciation                                         (2,253)      (2,711)     (6,261)     (2,478)      (8,155)
                                                                   -------      -------     -------     --------     ------
   Restricted cash                                                  10,209       15,261      16,288       8,840       44,713
   Investments in and advances to affiliates                            --           --          --          --           --
   Due from subsidiaries                                                --           --          --          --           --
   Note receivable from Interstate Hotels & Resorts                   (738)       5,820       7,409       6,231       14,226
   Prepaid expenses and other assets                                    --           --          --          --           --
   Accounts receivable, net of allowance for doubtful accounts          14            3          --          --            1
   Cash and cash equivalents                                            --           --          --          --           --
                                                                   -------      -------     -------     -------      -------
                                                                     9,485       21,084      23,697      15,071       58,940
                                                                   =======      =======     =======     =======      =======
LIABILITIES AND PARTNERS' CAPITAL

   Long-term debt                                                       --           --          --          --           --
   Notes payable to MeriStar Hospitality Corporation                    --           --          --          --           --
   Accounts payable and accrued expenses                               172           86          61         121          184
   Accrued interest                                                     --           --          --          --           --
   Due to Interstate Hotels & Resorts                                   --           --          --          --           --
   Other liabilities                                                    --           --          --          --           --
                                                                   -------      -------     -------     -------      -------
   Total liabilities                                                   172           86          61         121          184
                                                                   -------      -------     -------     -------      -------

   Minority interests                                                   --           --          --          --           --
   Redeemable OP units at redemption value                              --           --          --          --           --
   Partners' capital - Common OP Units                               9,313       20,998      23,636      14,950       58,756
                                                                   -------      -------     -------     -------      -------
                                                                     9,485       21,084      23,697      15,071       58,940
                                                                   =======      =======     =======     =======      =======
</TABLE>
<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2002
(DOLLARS IN THOUSANDS)


<TABLE>
<CAPTION>



                                                                    MERISTAR     MERISTAR    MERISTAR     MERISTAR     MERISTAR
                                                                     SUB 7A       SUB 6K,     SUB 2B,      SUB 3A,      SUB 4A,
                                                                 JOINT VENTURE      LLC         LLC         LLC           LLC
                                                                 -------------   --------    --------     --------     --------
<S>                                                              <C>             <C>         <C>          <C>          <C>
ASSETS
  Investments in hotel properties                                    13,161       22,855       9,672       5,740        4,617
  Accumulated depreciation                                           (1,761)      (4,296)     (1,985)       (254)          --
                                                                     ------       ------       -----       -----        -----
                                                                     11,400       18,559       7,687       5,486        4,617

  Restricted cash                                                        --           --          --          --           --
  Investments in and advances to affiliates                              --           --          --          --           --
  Due from subsidiaries                                               4,352       16,890        (804)      1,500        4,097
  Note receivable from Interstate Hotels & Resorts                       --           --          --          --           --
  Prepaid expenses and other assets                                       5           --           1          --           --
  Accounts receivable, net of allowance for doubtful accounts            --           --         (12)         --           --
  Cash and cash equivalents                                              --           --          --          --           --
                                                                     ------       ------       -----       -----        -----
                                                                     15,757       35,449       6,872       6,986        8,714
                                                                     ======       ======       =====       =====        =====
LIABILITIES AND PARTNERS' CAPITAL
  Long-term debt                                                         --           --       4,890          --           --
  Notes payable to MeriStar Hospitality Corporation                      --           --          --          --           --
  Accounts payable and accrued expenses                                 218          122          75         163          346
                                                                     ------       ------       -----       -----        -----
  Accrued interest                                                       --           --          --          --           --
  Due to Interstate Hotels & Resorts                                     --           --          --          --           --
  Other liabilities                                                      --           --          --          --           --
                                                                     ------       ------       -----       -----        -----
    Total liabilities                                                   218          122       4,965         163          346

Minority interests                                                       --           --          --          --           --
 Redeemable OP units at redemption value                                 --           --          --          --           --
 Partners' capital - Common OP Units                                 15,539       35,327       1,907       6,823        8,368
                                                                     ------       ------       -----       -----        -----
                                                                     15,757       35,449       6,872       6,986        8,714
                                                                     ======       ======       =====       =====        =====


</TABLE>

<TABLE>
<CAPTION>
                                                                MERISTAR      MERISTAR        MERISTAR        MDV           MERISTAR
                                                                 SUB 4D,       SUB 2A,         SUB 6L,       LIMITED         SUB 5C,
                                                                  LLC           LLC             INC.       PARTNERSHIP         LLC
                                                                --------      --------        --------     -----------      --------
<S>                                                             <C>           <C>             <C>          <C>              <C>
ASSETS
   Investments in hotel properties                                4,037          8,294         29,650          3,838         14,088
   Accumulated depreciation                                          --         (1,464)        (3,354)          (547)        (2,812)
                                                                  -----          -----         ------          -----         ------
                                                                  4,037          6,830         26,296          3,291         11,276

   Restricted cash                                                   --             --             --             --             --
   Investments in and advances to affiliates                         --             --             --             --             --
   Due from subsidiaries                                            (74)          (884)         4,928          2,169            242
   Note receivable from Interstate Hotels & Resorts                  --             --             --             --             --
   Prepaid expenses and other assets                                 21             21             --              9             70
   Accounts receivable, net of allowance for doubtful accounts       --             --             --             --             --
   Cash and cash equivalents                                         --             --             --             --             --
                                                                  -----          -----         ------          -----         ------
                                                                  3,984          5,967         31,224          5,469         11,588
                                                                  =====          =====         ======          =====         ======

LIABILITIES AND PARTNERS' CAPITAL
   Long-term debt                                                    --          7,977             --             --             --
   Notes payable to MeriStar Hospitality Corporation                 --             --             --             --             --
   Accounts payable and accrued expenses                            112             65             51             95            866
   Accrued interest                                                  --             --             --             --             --
   Due to Interstate Hotels & Resorts                                --             --             --             --             --
   Other liabilities                                                 --             --             --             --             --
                                                                  -----          -----         ------          -----         ------
   Total liabilities                                                112          8,042             51             95            866
                                                                  -----          -----         ------          -----         ------

   Minority interests                                                --             --             --             --             --
   Redeemable OP units at redemption value                           --             --             --             --             --
   Partners' capital - Common OP Units                            3,872         (2,075)        31,173          5,374         10,722
                                                                  -----          -----         ------          -----         ------
                                                                  3,984          5,967         31,224          5,469         11,588
                                                                  =====          =====         ======          =====         ======
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2002
(DOLLARS IN THOUSANDS)


<TABLE>
<CAPTION>

                                                                    MERISTAR      MERISTAR     MERISTAR    MERISTAR       MERISTAR
                                                                     SUB 6J,       SUB 1D,      SUB 7B,     SUB 7D,        SUB 7G,
                                                                      LLC           L.P.          L.P.        LLC            LLC
                                                                    ------         ------       ------      ------         ------
ASSETS
<S>                                                                 <C>           <C>          <C>         <C>            <C>
   Investments in hotel properties                                   19,412         68,456       15,314      52,184         16,620
   Accumulated depreciation                                          (3,208)        (9,754)          --      (8,132)        (4,107)
                                                                     ------         ------       ------      ------         ------
                                                                     16,204         58,702       15,314      44,052         12,513


   Restricted cash                                                       --             --           --          --             --
   Investments in and advances to affiliates                             --             --           --          --             --
   Due from subsidiaries                                              5,957         16,638       (3,681)     21,885            122
   Note receivable from Interstate Hotels & Resorts                      --             --           --          --             --
   Prepaid expenses and other assets                                     45             11           --         309              1
   Accounts receivable, net of allowance for
    doubtful accounts                                                    --             --           --       1,026             --
   Cash and cash equivalents                                             --             --           --          --             --
                                                                     ------         ------       ------      ------         ------
                                                                     22,206         75,351       11,633      67,272         12,636
                                                                     ======         ======       ======      ======         ======
LIABILITIES AND PARTNERS' CAPITAL

   Long-term debt                                                        --             --           --          --             --
   Notes payable to MeriStar Hospitality Corporation                     --             --           --          --             --
   Accounts payable and accrued expenses                               (116)            20        1,148       4,552             37
   Accrued interest                                                      --            117           --          --             --
   Due to Interstate Hotels & Resorts                                    --             --           --        (200)            --
   Other liabilities                                                     --             --           --          --             --
                                                                     ------         ------       ------      ------         ------
   Total liabilities                                                   (116)           137        1,148       4,352             37
                                                                     ------         ------       ------      ------         ------

   Minority interests                                                    --             --           --          --             --
   Redeemable OP units at redemption value                               --             --           --          --             --
   Partners' capital - Common OP Units                               22,322         75,214       10,485      62,920         12,599
                                                                     ------         ------       ------      ------         ------
                                                                     22,206         75,351       11,633      67,272         12,636
                                                                     ======         ======       ======      ======         ======
</TABLE>

<TABLE>
<CAPTION>
                                                                  MERISTAR     MERISTAR      MERISTAR       MERISTAR     MERISTAR
                                                                   SUB 6B,      SUB 4I,       SUB 5D,       SUB 5H,       SUB 7H,
                                                                     LLC         L.P.          LLC            LLC           LLC
                                                                  --------     --------      --------       --------     --------
<S>                                                               <C>          <C>           <C>            <C>          <C>
ASSETS
   Investments in hotel properties                                 10,645         3,800        42,013         53,422         5,700
   Accumulated depreciation                                        (1,742)           --        (6,645)        (7,989)           --
                                                                   ------         -----        ------         ------         -----
                                                                    8,903         3,800        35,368         45,433         5,700

   Restricted cash                                                     --            --            --             --            --
   Investments in and advances to affiliates                           --            --        51,368             --            --
   Due from subsidiaries                                            2,423           895        (7,027)         8,773         5,754
   Note receivable from Interstate Hotels & Resorts                    --            --            --             --            --
   Prepaid expenses and other assets                                    3            --            18             --            --
   Accounts receivable, net of allowance for
     doubtful accounts                                                 --            --            --             --            --
   Cash and cash equivalents                                           --            --            --             --            --
                                                                   ------         -----        ------         ------        ------
                                                                   11,329         4,695        79,727         54,206        11,454
                                                                   ======         =====        ======         ======        ======

LIABILITIES AND PARTNERS' CAPITAL

   Long-term debt                                                      --            --        24,000             --            13
   Notes payable to MeriStar Hospitality Corporation                   --            --            --             --            --
   Accounts payable and accrued expenses                              (95)          411           206            146           267
   Accrued interest                                                    --            --            --             --            --
   Due to Interstate Hotels & Resorts                                  --            --            --             --            --
   Other liabilities                                                   --            --            --             --            --
                                                                   ------         -----        ------         ------        ------
   Total liabilities                                                  (95)          411        24,206            146           280
                                                                   ------         -----        ------         ------        ------

   Minority interests                                                  --            --            --             --            --
   Redeemable OP units at redemption value                             --            --            --             --            --
   Partners' capital - Common OP Units                             11,424         4,284        55,521         54,060        11,174
                                                                   ------         -----        ------         ------        ------
                                                                   11,329         4,695        79,727         54,206        11,454
                                                                   ======         =====        ======         ======        ======

</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2002
(DOLLARS IN THOUSANDS)




<TABLE>
<CAPTION>
                                                                      AGH          MERISTAR     MERISTAR     MERISTAR     MERISTAR
                                                                     PSS I,         SUB 2D,      SUB 4F,      SUB 5K,      SUB 5M,
                                                                      INC.           LLC          L.P.          LLC          LLC
                                                                     ------         ------       ------       ------       ------
<S>                                                                  <C>            <C>          <C>          <C>          <C>
ASSETS
   Investments in hotel properties                                    17,855         15,465       31,912       28,057       22,022
   Accumulated depreciation                                           (2,049)        (2,435)      (4,714)      (3,916)      (1,883)
                                                                     ------         ------       ------       ------       ------
                                                                     15,806         13,030       27,198       24,141       20,139

   Restricted cash                                                        --             --           --           --           --
   Investments in and advances to affiliates                              --             --           --           --           --
   Due from subsidiaries                                              10,810            416        4,392         (705)       6,601
   Note receivable from Interstate Hotels & Resorts                       --             --           --           --           --
   Prepaid expenses and other assets                                      --              1           12           --           --
   Accounts receivable, net of allowance for doubtful accounts            --             --           --           --           --
   Cash and cash equivalents                                              --             --           --           --           --
                                                                      ------         ------       ------       ------       ------
                                                                      26,616         13,447       31,602       23,436       26,740
                                                                      ======         ======       ======       ======       ======

LIABILITIES AND PARTNERS' CAPITAL
   Long-term debt                                                         --          9,243           --           --           --
   Notes payable to MeriStar Hospitality Corporation                      --             --           --           --           --
   Accounts payable and accrued expenses                                 107             63          399        4,316           48
   Accrued interest                                                       --             --           --           --           --
   Due to Interstate Hotels & Resorts                                     --             --           --           --           --
   Other liabilities                                                      --             --           --           --           --
                                                                      ------         ------       ------       ------       ------
   Total liabilities                                                     107          9,306          399        4,316           48
                                                                      ------         ------       ------       ------       ------

   Minority interests                                                     --             --           --           --           --
   Redeemable OP units at redemption value                                --             --           --           --           --
   Partners' capital - Common OP Units                                26,509          4,141       31,203       19,120       26,692
                                                                      ------         ------       ------       ------       ------
                                                                      26,616         13,447       31,602       23,436       26,740
                                                                      ======         ======       ======       ======       ======
</TABLE>






<TABLE>
<CAPTION>

                                                                   MeriStar      MeriStar       MeriStar     MeriStar   MeriStar
                                                                   Sub 1E,        Sub 5O,        Sub 6M      Sub 4B,    Sub 6C,
                                                                     L.P.           LLC          Company       L.P.       LLC
                                                                   --------      --------       --------     --------   --------
<S>                                                                <C>           <C>            <C>          <C>        <C>
ASSETS
   Investments in hotel properties                                  10,457          8,727         32,975        8,265      20,855
   Accumulated depreciation                                         (1,649)          (916)        (4,779)          --      (3,592)
                                                                    ------          -----         ------        -----      ------
                                                                     8,808          7,811         28,196        8,265      17,263

   Restricted cash                                                      --             --             --           --          --
   Investments in and advances to affiliates                            --             --             --           --          --
   Due from subsidiaries                                             7,355          2,486         15,876       (4,592)     10,175
   Note receivable from Interstate Hotels & Resorts                     --             --             --           --          --
   Prepaid expenses and other assets                                    --             --             21           --          --
   Accounts receivable, net of allowance for doubtful accounts          --             --             --           --          --
   Cash and cash equivalents                                            --             --             --           --          --
                                                                    ------          -----         ------        -----      ------
                                                                    16,163         10,297         44,093        3,673      27,438
                                                                    ======          =====         ======        =====      ======

LIABILITIES AND PARTNERS' CAPITAL
   Long-term debt                                                       --             --             --           --          --
   Notes payable to MeriStar Hospitality Corporation                    --             --             --           --          --
   Accounts payable and accrued expenses                                13              7           (117)         443        (142)
   Accrued interest                                                     --             --             --           --          --
   Due to Interstate Hotels & Resorts                                   --             --             --           --          --
   Other liabilities                                                    --             --             --           --          --
                                                                    ------          -----         ------        -----      ------
   Total liabilities                                                    13              7           (117)         443        (142)
                                                                    ------          -----         ------        -----      ------

   Minority interests                                                   --             --             --           --          --
   Redeemable OP units at redemption value                              --             --             --           --          --
   Partners' capital - Common OP Units                              16,150         10,290         44,210        3,230      27,580
                                                                    ------          -----         ------        -----      ------
                                                                    16,163         10,297         44,093        3,673      27,438
                                                                    ======          =====         ======        =====      ======


</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2002
(DOLLARS IN THOUSANDS)


<TABLE>
<CAPTION>
                                                                   MERISTAR        MERISTAR    MERISTAR     MERISTAR       MERISTAR
                                                                    SUB 2C,         SUB 4G,    SUB 3B,       SUB 5G,        SUB 5P,
                                                                     LLC             L.P.        LLC           L.P.           LLC
                                                                   --------        --------    --------     --------       --------
<S>                                                                <C>             <C>         <C>          <C>            <C>
ASSETS
  Investments in hotel properties                                    28,658         25,601      8,550        163,237            39
  Accumulated depreciation                                           (5,385)        (4,015)        --        (24,213)          (18)
                                                                     ------         ------     ------        -------         -----
                                                                     23,273         21,586      8,550        139,024            21

  Restricted cash                                                        --             --         --             --            --
  Investments in and advances to affiliates                              --             --         --             --            --
  Due from subsidiaries                                               4,873          7,456      2,201         35,538         1,989
  Note receivable from Interstate Hotels & Resorts                       --             --         --             --            --
  Prepaid expenses and other assets                                       1              9         --              5            --
  Accounts receivable, net of allowance for doubtful accounts            --             --         --             --            --
  Cash and cash equivalents                                              --             --         --             --            --
                                                                     ------         ------     ------        -------         -----
                                                                     28,147         29,051     10,751        174,567         2,010
                                                                     ======         ======     ======        =======         =====

LIABILITIES AND PARTNERS' CAPITAL

  Long-term debt                                                     16,143             --         --             --            --
  Notes payable to MeriStar Hospitality Corporation                      --             --         --             --            --
  Accounts payable and accrued expenses                                 238            558        173            838             4
  Accrued interest                                                       --             --         --             --            --
  Due to Interstate Hotels & Resorts                                     --             --         --             --            --
  Other liabilities                                                      --             --         --             --            --
                                                                     ------         ------     ------        -------         -----
  Total liabilities                                                  16,381            558        173            838             4
                                                                     ------         ------     ------        -------         -----

  Minority interests                                                     --             --         --             --            --
  Redeemable OP units at redemption value                                --             --         --             --            --
  Partners' capital - Common OP Units                                11,766         28,493     10,578        173,729         2,006
                                                                     ------         ------     ------        -------         -----
                                                                     28,147         29,051     10,751        174,567         2,010
                                                                     ======         ======     ======        =======         =====
</TABLE>


<TABLE>
<CAPTION>

                                                                   MERISTAR        MERISTAR    MERISTAR     MERISTAR       MERISTAR
                                                                    SUB 5J,         SUB 5Q,     SUB 5A,      SUB 8D,        SUB 4J,
                                                                      LLC            LLC          LLC          LLC            LLC
                                                                   --------        --------    --------     --------       --------
<S>                                                                <C>             <C>         <C>          <C>            <C>
ASSETS
  Investments in hotel properties                                  107,471         16,509         34,981      30,687         38,154
  Accumulated depreciation                                         (13,334)        (1,709)        (9,395)     (5,080)        (5,862)
                                                                   -------         -------      --------     -------        -------
                                                                    94,137         14,800         25,586      25,607         32,292

  Restricted cash                                                       --             --             --          --             --
  Investments in and advances to affiliates                             --             --          4,627          --             --
  Due from subsidiaries                                             17,649          3,274          5,147       6,942          5,438
  Note receivable from Interstate Hotels & Resorts                      --             --             --          --             --
  Prepaid expenses and other assets                                     --             --             --          --              5
  Accounts receivable, net of allowance for doubtful accounts           --             --             --          --            (24)
  Cash and cash equivalents                                             --             --             --          --             --
                                                                   -------         -------      --------     -------        -------
                                                                   111,786         18,074         35,360      32,549         37,711
                                                                   =======         =======      ========     =======        =======

LIABILITIES AND PARTNERS' CAPITAL

  Long-term debt                                                        --             --         23,609          --             --
  Notes payable to MeriStar Hospitality Corporation                     --             --             --          --             --
  Accounts payable and accrued expenses                                453           (122)            (3)       (117)           171
  Accrued interest                                                      --             --             --          --             --
  Due to Interstate Hotels & Resorts                                    --             --             --          --             --
  Other liabilities                                                     --             --             --          --             --
                                                                   -------         -------      --------     -------        -------
  Total liabilities                                                    453           (122)        23,606        (117)           171
                                                                   -------         -------      --------     -------        -------

  Minority interests                                                    --             --             --          --             --
  Redeemable OP units at redemption value                               --             --             --          --             --
  Partners' capital - Common OP Units                              111,333         18,196         11,754      32,666         37,540
                                                                   -------         -------      --------     -------        -------
                                                                   111,786         18,074         35,360      32,549         37,711
                                                                   =======         =======      ========     =======        =======

</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2002
(DOLLARS IN THOUSANDS)


<TABLE>
<CAPTION>
                                                                   MERISTAR       GUARANTOR
                                                                    HOTEL       SUBSIDIARIES        ELIMINATIONS         TOTAL
                                                                 LESSEE, INC.      TOTAL                              CONSOLIDATED
                                                                 ------------   ------------        ------------      ------------
<S>                                                              <C>            <C>                 <C>               <C>
ASSETS
  Investments in hotel properties                                   2,252         1,536,518                 --        $ 3,020,909
  Accumulated depreciation                                         (2,219)         (231,359)                --           (460,972)
                                                                   ------         ---------         ----------        -----------
                                                                       33         1,305,159                 --          2,559,937

  Restricted cash                                                      --               115                 --             20,365
  Investments in and advances to affiliates                         1,630            60,828         (2,617,743)            41,714
  Due from subsidiaries                                             5,245           398,815                 --                 --
  Note receivable from Interstate Hotels & Resorts                     --                --           (108,605)            42,052
  Prepaid expenses and other assets                                15,759            16,436                 --             39,197
  Accounts receivable, net of allowance for doubtful accounts      42,400            43,571                 --             56,828
  Cash and cash equivalents                                        12,517            12,517                 --             33,889
                                                                   ------         ---------         ----------        -----------
                                                                   77,584         1,837,441         (2,726,348)       $ 2,793,982
                                                                   ======         =========         ==========        ===========

LIABILITIES AND PARTNERS' CAPITAL

  Long-term debt                                                    21,397           107,320           (108,605)         1,296,597
  Notes payable to MeriStar Hospitality Corporation                     --                --                 --            357,505
  Accounts payable and accrued expenses                             58,595            79,359                 --            104,677
  Accrued interest                                                     107               224                 --             52,907
  Due to Interstate Hotels & Resorts                                10,328            10,128                 --             10,500
  Other liabilities                                                 11,376            11,376                 --             15,967
                                                                   -------           -------           --------          ---------
  Total liabilities                                                101,803           208,407           (108,605)         1,838,153
                                                                   -------           -------           --------          ---------

  Minority interests                                                    --                --                 --              2,624
  Redeemable OP units at redemption value                               --                --                 --             38,205
  Partners' capital - Common OP Units                              (24,219)        1,629,034         (2,617,743)           915,000
                                                                    ------         ---------         ----------        -----------
                                                                    77,584         1,837,441         (2,726,348)       $ 2,793,982
                                                                    ======         =========         ==========        ===========
</TABLE>






<PAGE>
MeriStar Hospitality Operating Partnership, L.P.
Consolidating Statement of Operations
Three months ended June 30, 2003
(Dollars in thousands)

<TABLE>
<CAPTION>
                                                        MeriStar        Non-          MeriStar        AGH         MeriStar
                                                      Hospitality     Guarantor        Sub 7C,       Upreit,       Sub 5N,
                                                        OP, L.P.     Subsidiaries       LLC           LLC           LLC
                                                      -----------    ------------      -------       -------       --------
<S>                                                   <C>            <C>              <C>           <C>           <C>
 Revenue:
 Hotel operations:
   Rooms                                                      --             --             --            --            --
   Food and beverage                                          --             --             --            --            --
   Other hotel operations                                     --             --             --            --            --
 Office rental, parking and other revenues                 2,158          1,719             --            --            --
 Participating lease revenue                                  --         31,088             --            --           234
                                                        --------       --------       --------      --------      --------
Total revenue                                              2,158         32,807             --            --           234
                                                        --------       --------       --------      --------      --------
Hotel operating expenses:
   Rooms                                                      --             --             --            --            --
   Food and beverage                                          --             --             --            --            --
   Other hotel operating expenses                             --             --             --            --            --
 Office rental, parking and other expenses                    --            525             --            --            --
Other operating expenses:
   General and administrative                              3,185           (261)            --            --            --
   Property operating costs                                   --             --             --            --            --
   Depreciation and amortization                           2,858         12,790             --            --            35
   Loss on asset impairments                                  --        115,941             --            --            --
   Property taxes, insurance and other                     1,337          6,019             --            --            25
                                                        --------       --------       --------      --------      --------
 Operating expenses                                        7,380        135,014             --            --            60
                                                        --------       --------       --------      --------      --------
 Operating (loss) income                                  (5,222)      (102,207)            --            --           174
 Interest expense, net                                    25,285          6,950             --            --            --
 Equity in income from consolidated entities             186,138             --             --            --            --
                                                        --------       --------       --------      --------      --------
 (Loss) income before minority interests,
   income tax expense, and discontinued operations      (216,645)      (109,157)            --            --           174
 Minority interests                                            5             --             --            --            --
 Income tax expense                                          (21)            --             --            --            --
                                                        --------       --------       --------      --------      --------
 (Loss) income from continuing operations               (216,661)      (109,157)            --            --           174
 Discontinued operations:
 (Loss) income from discontinued operations
   before tax benefit                                         --            199             --            --            --
      Income tax benefit                                       2             --             --            --            --
                                                        --------       --------       --------      --------      --------
   (Loss) income on discontinued operations                    2            199             --            --            --
                                                        --------       --------       --------      --------      --------
 Net (loss) income                                      (216,659)      (108,958)            --            --           174
                                                        ========       ========       ========      ========      ========
</TABLE>


<TABLE>
<CAPTION>
                                                        MeriStar       MeriStar       MeriStar      MeriStar      MeriStar
                                                         SUB 8A,        Sub 8F,        Sub 8G,       Sub 6H,       Sub 8B,
                                                          LLC            L.P.           LLC           L.P.          LLC
                                                      -----------    ------------      -------       -------       --------
<S>                                                     <C>            <C>            <C>           <C>           <C>
 Revenue:
 Hotel operations:
   Rooms                                                      --            --            --            --            --
   Food and beverage                                          --            --            --            --            --
   Other hotel operations                                     --            --            --            --            --
 Office rental, parking and other revenues                    --            --            --            --            --
 Participating lease revenue                                  --           586            --           313         1,818
                                                        --------       --------       --------      --------      --------
Total revenue                                                 --           586            --           313         1,818
                                                        --------       --------       --------      --------      --------
Hotel operating expenses:
   Rooms                                                      --            --            --            --            --
   Food and beverage                                          --            --            --            --            --
   Other hotel operating expenses                             --            --            --            --            --
 Office rental, parking and other expenses                    --            --            --            --            --
Other operating expenses:
   General and administrative                                 --            --            --            --            --
   Property operating costs                                   --            --            --            --            --
   Depreciation and amortization                              --           146            --           144           610
   Loss on asset impairments                                  --            --            --            --            --
   Property taxes, insurance and other                        --            99            --            23           346
                                                        --------       --------       --------      --------      --------
 Operating expenses                                           --           245            --           167           956
                                                        --------       --------       --------      --------      --------
 Operating (loss) income                                      --           341            --           146           862
 Interest expense, net                                        --            --            --            --            --
 Equity in income from consolidated entities                  --            --            --            --            --
                                                        --------       --------       --------      --------      --------
 (Loss) income before minority interests,
   income tax expense, and discontinued operations            --           341            --           146           862
 Minority interests                                           --            --            --            --            --
 Income tax expense                                           --            --            --            --            --
                                                        --------       --------       --------      --------      --------
 (Loss) income from continuing operations                     --           341            --           146           862
 Discontinued operations:
 (Loss) income from discontinued operations
   before tax benefit                                         --            --            --            --            --
      Income tax benefit                                      --            --            --            --            --
                                                        --------       --------       --------      --------      --------
   (Loss) income on discontinued operations                   --            --            --            --            --
                                                        --------       --------       --------      --------      --------
 Net (loss) income                                            --           341            --           146           862
                                                        ========       ========       ========      ========      ========
</TABLE>
<PAGE>
MeriStar Hospitality Operating Partnership, L.P.
Consolidating Statement of Operations
Three months ended June 30, 2003
(Dollars in thousands)

<TABLE>
<CAPTION>
                                                        MeriStar       MeriStar       MeriStar      MeriStar      MeriStar
                                                         Sub 1C,        Sub 8E,        Sub 7F,       Sub 5L,       Sub 3C,
                                                          L.P.           LLC            LLC           LLC           LLC
                                                        --------       --------       --------      --------      --------
<S>                                                     <C>            <C>            <C>           <C>           <C>
 Revenue:
 Hotel operations:
   Rooms                                                      --             --            --             --            --
   Food and beverage                                          --             --            --             --            --
   Other hotel operations                                     --             --            --             --            --
 Office rental, parking and other revenues                    --              5            --             --            --
 Participating lease revenue                                 308            362           226            228           375
                                                        --------       --------       --------      --------      --------
Total revenue                                                308            367           226            228           375
                                                        --------       --------       --------      --------      --------
Hotel operating expenses:
   Rooms                                                      --             --            --             --            --
   Food and beverage                                          --             --            --             --            --
   Other hotel operating expenses                             --             --            --             --            --
 Office rental, parking and other expenses                    --             --            --             --            --
Other operating expenses:
   General and administrative                                 --             --            --             --            --
   Property operating costs                                   --             --            --             --            --
   Depreciation and amortization                             254            145           114             35           177
   Loss on asset impairments                                  --             --         1,637             --            --
   Property taxes, insurance and other                       132             54            41             37            99
                                                        --------       --------       --------      --------      --------
 Operating expenses                                          386            199         1,792             72           276
                                                        --------       --------       --------      --------      --------
 Operating (loss) income                                     (78)           168        (1,566)           156            99
 Interest expense, net                                        --             --            --             --            --
 Equity in income from consolidated entities                  --             --            --             --            --
                                                        --------       --------       --------      --------      --------
 (Loss) income before minority interests,
   income tax expense, and discontinued operations           (78)           168        (1,566)           156            99
 Minority interests                                           --             --            --             --            --
 Income tax expense                                           --             --            --             --            --
                                                        --------       --------       --------      --------      --------
 (Loss) income from continuing operations                    (78)           168        (1,566)           156            99
 Discontinued operations:
 (Loss) income from discontinued operations
   before tax benefit                                         --             --            --             --            --
      Income tax benefit                                      --             --            --             --            --
                                                        --------       --------       --------      --------      --------
   (Loss) income on discontinued operations                   --             --            --             --            --
                                                        --------       --------       --------      --------      --------
 Net (loss) income                                           (78)           168        (1,566)           156            99
                                                        ========       ========       ========      ========      ========
</TABLE>

<TABLE>
<CAPTION>
                                                        MeriStar       MeriStar       MeriStar      MeriStar      MeriStar
                                                         Sub 5R,        Sub 6D,        Sub 6E,       Sub 4E,       Sub 1B,
                                                          LLC            LLC            LLC           L.P.          LLC
                                                        --------       --------       --------      --------      --------
<S>                                                     <C>            <C>            <C>           <C>           <C>
 Revenue:
 Hotel operations:
   Rooms                                                      --            --            --            --             --
   Food and beverage                                          --            --            --            --             --
   Other hotel operations                                     --            --            --            --             --
 Office rental, parking and other revenues                    --             4            --             2              1
 Participating lease revenue                                  --           531         1,483           352            684
                                                        --------       --------       --------      --------      --------
Total revenue                                                 --           535         1,483           354            685
                                                        --------       --------       --------      --------      --------
Hotel operating expenses:
   Rooms                                                      --            --            --            --             --
   Food and beverage                                          --            --            --            --             --
   Other hotel operating expenses                             --            --            --            --             --
 Office rental, parking and other expenses                    --            --            --            --             --
Other operating expenses:
   General and administrative                                 --            --            --            --             --
   Property operating costs                                   --            --            --            --             --
   Depreciation and amortization                              --           136           408           210            141
   Loss on asset impairments                                  --            --            --        14,611             --
   Property taxes, insurance and other                        --            80           161           112             48
                                                        --------       --------       --------      --------      --------
 Operating expenses                                           --           216           569        14,933            189
                                                        --------       --------       --------      --------      --------
 Operating (loss) income                                      --           319           914       (14,579)           496
 Interest expense, net                                        --            --            --            --             --
 Equity in income from consolidated entities                  --            --            --            --             --
                                                        --------       --------       --------      --------      --------
 (Loss) income before minority interests,
   income tax expense, and discontinued operations            --           319           914       (14,579)           496
 Minority interests                                           --            --            --            --             --
 Income tax expense                                           --            --            --            --             --
                                                        --------       --------       --------      --------      --------
 (Loss) income from continuing operations                     --           319           914       (14,579)           496
 Discontinued operations:
 (Loss) income from discontinued operations
   before tax benefit                                         --            --            --            --             --
      Income tax benefit                                      --            --            --            --             --
                                                        --------       --------       --------      --------      --------
   (Loss) income on discontinued operations                   --            --            --            --             --
                                                        --------       --------       --------      --------      --------
 Net (loss) income                                            --           319           914       (14,579)           496
                                                        ========       ========       ========      ========      ========
</TABLE>
<PAGE>
MeriStar Hospitality Operating Partnership, L.P.
Consolidating Statement of Operations
Three months ended June 30, 2003
(Dollars in thousands)

<TABLE>
<CAPTION>
                                                        MeriStar       MeriStar       MeriStar      MeriStar      MeriStar
                                                         Sub 5F,        Sub 6G,        Sub 8C,       Sub 4C,       Sub 4H,
                                                          L.P.           LLC            LLC           L.P.          L.P.
                                                        --------       --------       --------      --------      --------
<S>                                                     <C>            <C>            <C>           <C>           <C>
 Revenue:
 Hotel operations:
   Rooms                                                      --             --            --             --            --
   Food and beverage                                          --             --            --             --            --
   Other hotel operations                                     --             --            --             --            --
 Office rental, parking and other revenues                    --             --             1             --            --
 Participating lease revenue                                 761            732           500             --            86
                                                        --------       --------       --------      --------      --------
Total revenue                                                761            732           501             --            86
                                                        --------       --------       --------      --------      --------
Hotel operating expenses:
   Rooms                                                      --             --            --             --            --
   Food and beverage                                          --             --            --             --            --
   Other hotel operating expenses                             --             --            --             --            --
 Office rental, parking and other expenses                    --             --            --             --            --
Other operating expenses:
   General and administrative                                 --             --            --             --            --
   Property operating costs                                   --             --            --             --            --
   Depreciation and amortization                             267            215           177             --           132
   Loss on asset impairments                               7,231             --         1,086             --         5,187
   Property taxes, insurance and other                        99            101           173             --            52
                                                        --------       --------       --------      --------      --------
 Operating expenses                                        7,597            316         1,436             --         5,371
                                                        --------       --------       --------      --------      --------
 Operating (loss) income                                  (6,836)           416          (935)            --        (5,285)
 Interest expense, net                                        --             --            --             --            --
 Equity in income from consolidated entities                  --             --            --             --            --
                                                        --------       --------       --------      --------      --------
 (Loss) income before minority interests,
   income tax expense, and discontinued operations        (6,836)           416          (935)            --        (5,285)
 Minority interests                                           --             --            --             --            --
 Income tax expense                                           --             --            --             --            --
                                                        --------       --------       --------      --------      --------
 (Loss) income from continuing operations                 (6,836)           416          (935)            --        (5,285)
 Discontinued operations:
 (Loss) income from discontinued operations
   before tax benefit                                         --             --            --             --            --
      Income tax benefit                                      --             --            --             --            --
                                                        --------       --------       --------      --------      --------
   (Loss) income on discontinued operations                   --             --            --             --            --
                                                        --------       --------       --------      --------      --------
 Net (loss) income                                        (6,836)           416          (935)            --        (5,285)
                                                        ========       ========       ========      ========      ========
</TABLE>

<TABLE>
<CAPTION>
                                                                                                                  MeriStar
                                                        MeriStar       MeriStar       MeriStar      MeriStar      Sub 7A
                                                         Sub 7E,        Sub 3D,        Sub 1A,       Sub 5E,       Joint
                                                          LLC            LLC            LLC           LLC         Venture
                                                        --------       --------       --------      --------      --------
<S>                                                     <C>            <C>            <C>           <C>           <C>
 Revenue:
 Hotel operations:
   Rooms                                                      --            --            --            --            --
   Food and beverage                                          --            --            --            --            --
   Other hotel operations                                     --            --            --            --            --
 Office rental, parking and other revenues                    --             1            --            --            --
 Participating lease revenue                                 337           352           446         1,698           300
                                                        --------       --------       --------      --------      --------
Total revenue                                                337           353           446         1,698           300
                                                        --------       --------       --------      --------      --------
Hotel operating expenses:
   Rooms                                                      --            --            --            --            --
   Food and beverage                                          --            --            --            --            --
   Other hotel operating expenses                             --            --            --            --            --
 Office rental, parking and other expenses                    --            --            --            --            --
Other operating expenses:
   General and administrative                                 --            --            --            --            --
   Property operating costs                                   --            --            --            --            --
   Depreciation and amortization                             154           195           112           478           108
   Loss on asset impairments                                  --            --            --            --         5,478
   Property taxes, insurance and other                        50            58           105           100            30
                                                        --------       --------       --------      --------      --------
 Operating expenses                                          204           253           217           578         5,616
                                                        --------       --------       --------      --------      --------
 Operating (loss) income                                     133           100           229         1,120        (5,316)
 Interest expense, net                                        --            --            --            --            --
 Equity in income from consolidated entities                  --            --            --            --            --
                                                        --------       --------       --------      --------      --------
 (Loss) income before minority interests,
   income tax expense, and discontinued operations           133           100           229         1,120        (5,316)
 Minority interests                                           --            --            --            --            --
 Income tax expense                                           --            --            --            --            --
                                                        --------       --------       --------      --------      --------
 (Loss) income from continuing operations                    133           100           229         1,120        (5,316)
 Discontinued operations:
 (Loss) income from discontinued operations
   before tax benefit                                         --            --            --            --            --
      Income tax benefit                                      --            --            --            --            --
                                                        --------       --------       --------      --------      --------
   (Loss) income on discontinued operations                   --            --            --            --            --
                                                        --------       --------       --------      --------      --------
 Net (loss) income                                           133           100           229         1,120        (5,316)
                                                        ========       ========       ========      ========      ========
</TABLE>
<PAGE>
MeriStar Hospitality Operating Partnership, L.P.
Consolidating Statement of Operations
Three months ended June 30, 2003
(Dollars in thousands)

<TABLE>
<CAPTION>
                                                        MeriStar       MeriStar       MeriStar      MeriStar      MeriStar
                                                         Sub 6K,        Sub 2B,        Sub 3A,       Sub 4A,       Sub 4D,
                                                          LLC             LLC            LLC           LLC           LLC
                                                        --------       --------       --------      --------      --------
<S>                                                     <C>            <C>            <C>           <C>           <C>
 Revenue:
 Hotel operations:
   Rooms                                                      --            --             --             --             --
   Food and beverage                                          --            --             --             --             --
   Other hotel operations                                     --            --             --             --             --
 Office rental, parking and other revenues                    --            --             --             --             --
 Participating lease revenue                               1,088           112            146            256             --
                                                        --------       --------       --------      --------       --------
Total revenue                                              1,088           112            146            256             --
                                                        --------       --------       --------      --------       --------
Hotel operating expenses:
   Rooms                                                      --            --             --             --             --
   Food and beverage                                          --            --             --             --             --
   Other hotel operating expenses                             --            --             --             --             --
 Office rental, parking and other expenses                    --            --             --             --             --
Other operating expenses:
   General and administrative                                 --            --             --             --             --
   Property operating costs                                   --            --             --             --             --
   Depreciation and amortization                             184           100             65             --             --
   Loss on asset impairments                                  --           990          1,497          1,455             --
   Property taxes, insurance and other                        96            40             27             93             --
                                                        --------       --------       --------      --------       --------
 Operating expenses                                          280         1,130          1,589          1,548             --
                                                        --------       --------       --------      --------       --------
 Operating (loss) income                                     808        (1,018)        (1,443)        (1,292)            --
 Interest expense, net                                        --           118             --             --             --
 Equity in income from consolidated entities                  --            --             --             --             --
                                                        --------       --------       --------      --------       --------
 (Loss) income before minority interests,
   income tax expense, and discontinued operations           808        (1,136)        (1,443)        (1,292)            --
 Minority interests                                           --            --             --             --             --
 Income tax expense                                           --            --             --             --             --
                                                        --------       --------       --------      --------       --------
 (Loss) income from continuing operations                    808        (1,136)        (1,443)        (1,292)            --
 Discontinued operations:
 (Loss) income from discontinued operations
   before tax benefit                                         --            --             --             --             30
      Income tax benefit                                      --            --             --             --             --
                                                        --------       --------       --------      --------       --------
   (Loss) income on discontinued operations                   --            --             --             --             30
                                                        --------       --------       --------      --------       --------
 Net (loss) income                                           808        (1,136)        (1,443)        (1,292)            30
                                                        ========       ========       ========      ========       ========
</TABLE>

<TABLE>
<CAPTION>
                                                        MeriStar       MeriStar         MDV         MeriStar      MeriStar
                                                         Sub 2A,        Sub 6L,        Limited       Sub 5C,       Sub 6J,
                                                           LLC            LLC        Partnership       LLC           LLC
                                                        --------       --------       --------      --------      --------
<S>                                                     <C>            <C>           <C>            <C>           <C>
 Revenue:
 Hotel operations:
   Rooms                                                      --             --             --            --             --
   Food and beverage                                          --             --             --            --             --
   Other hotel operations                                     --             --             --            --             --
 Office rental, parking and other revenues                    --             --             --            --             --
 Participating lease revenue                                 126            404            127           404            589
                                                        --------       --------       --------      --------       --------
Total revenue                                                126            404            127           404            589
                                                        --------       --------       --------      --------       --------
Hotel operating expenses:
   Rooms                                                      --             --             --            --             --
   Food and beverage                                          --             --             --            --             --
   Other hotel operating expenses                             --             --             --            --             --
 Office rental, parking and other expenses                    --             --             --            --             --
Other operating expenses:
   General and administrative                                 --             --             --            --             --
   Property operating costs                                   --             --             --            --             --
   Depreciation and amortization                              80            223             34           136            144
   Loss on asset impairments                                 847         13,286             --         1,347             --
   Property taxes, insurance and other                        50             54             36           112             65
                                                        --------       --------       --------      --------       --------
 Operating expenses                                          977         13,563             70         1,595            209
                                                        --------       --------       --------      --------       --------
 Operating (loss) income                                    (851)       (13,159)            57        (1,191)           380
 Interest expense, net                                       193             --             --            --             (1)
 Equity in income from consolidated entities                  --             --             --            --             --
                                                        --------       --------       --------      --------       --------
 (Loss) income before minority interests,
   income tax expense, and discontinued operations        (1,044)       (13,159)            57        (1,191)           381
 Minority interests                                           --             --             --            --             --
 Income tax expense                                           --             --             --            --             --
                                                        --------       --------       --------      --------       --------
 (Loss) income from continuing operations                 (1,044)       (13,159)            57        (1,191)           381
 Discontinued operations:
 (Loss) income from discontinued operations
   before tax benefit                                         --             --             --            --             --
      Income tax benefit                                      --             --             --            --             --
                                                        --------       --------       --------      --------       --------
   (Loss) income on discontinued operations                   --             --             --            --             --
                                                        --------       --------       --------      --------       --------
 Net (loss) income                                        (1,044)       (13,159)            57        (1,191)           381
                                                        ========       ========       ========      ========       ========
</TABLE>
<PAGE>
MeriStar Hospitality Operating Partnership, L.P.
Consolidating Statement of Operations
Three months ended June 30, 2003
(Dollars in thousands)

<TABLE>
<CAPTION>
                                                        MeriStar       MeriStar       MeriStar      MeriStar      MeriStar
                                                         Sub 1D,        Sub 7B,        Sub 7D,       Sub 7G,       Sub 6B,
                                                          L.P.           L.P.           LLC           LLC           LLC
                                                        --------       --------       --------      --------      --------
<S>                                                     <C>            <C>            <C>           <C>           <C>
 Revenue:
 Hotel operations:
   Rooms                                                      --             --             --             --             --
   Food and beverage                                          --             --             --             --             --
   Other hotel operations                                     --             --             --             --             --
 Office rental, parking and other revenues                   (73)            --           (358)            --             --
 Participating lease revenue                               1,241            402          2,240            150            325
                                                        --------       --------       --------        --------      --------
Total revenue                                              1,168            402          1,882            150            325
                                                        --------       --------       --------        --------      --------
Hotel operating expenses:
   Rooms                                                      --             --             --             --             --
   Food and beverage                                          --             --             --             --             --
   Other hotel operating expenses                             --             --             --             --             --
 Office rental, parking and other expenses                     5             --            (11)            --             --
Other operating expenses:
   General and administrative                                 25             --            177             --             --
   Property operating costs                                   --             --             --             --             --
   Depreciation and amortization                             570            161            441            130            116
   Loss on asset impairments                                  --          2,394             --            867             --
   Property taxes, insurance and other                       448            182            564             54             50
                                                        --------       --------       --------        --------      --------
 Operating expenses                                        1,048          2,737          1,171          1,051            166
                                                        --------       --------       --------        --------      --------
 Operating (loss) income                                     120         (2,335)           711           (901)           159
 Interest expense, net                                        --             --             --             --             --
 Equity in income from consolidated entities                  --             --             --             --             --
                                                        --------       --------       --------        --------      --------
 (Loss) income before minority interests,
   income tax expense, and discontinued operations           120         (2,335)           711           (901)           159
 Minority interests                                           --             --             --             --             --
 Income tax expense                                           --             --             --             --             --
                                                        --------       --------       --------        --------      --------
 (Loss) income from continuing operations                    120         (2,335)           711           (901)           159
 Discontinued operations:
 (Loss) income from discontinued operations
   before tax benefit                                         --             --             --             --             --
      Income tax benefit                                      --             --             --             --             --
                                                        --------       --------       --------        --------      --------
   (Loss) income on discontinued operations                   --             --             --             --             --
                                                        --------       --------       --------        --------      --------
 Net (loss) income                                           120         (2,335)           711           (901)           159
                                                        ========       ========       ========        ========      ========
</TABLE>

<TABLE>
<CAPTION>
                                                        MeriStar       MeriStar       MeriStar      MeriStar         AGH
                                                         Sub 4I,        Sub 5D,        Sub 5H,       Sub 7H,        PSS I,
                                                          L.P.            LLC            LLC           LLC           Inc.
                                                        --------       --------       --------      --------      --------
<S>                                                     <C>            <C>            <C>           <C>           <C>
 Revenue:
 Hotel operations:
   Rooms                                                      --             --             --             --             --
   Food and beverage                                          --             --             --             --             --
   Other hotel operations                                     --             --             --             --             --
 Office rental, parking and other revenues                    --             --             --             --             --
 Participating lease revenue                                  20            549            867            324            575
                                                        --------       --------       --------        --------      --------
Total revenue                                                 20            549            867            324            575
                                                        --------       --------       --------        --------      --------
Hotel operating expenses:
   Rooms                                                      --             --             --             --             --
   Food and beverage                                          --             --             --             --             --
   Other hotel operating expenses                             --             --             --             --             --
 Office rental, parking and other expenses                    --             --             --             --             --
Other operating expenses:
   General and administrative                                 --             --             --             --             --
   Property operating costs                                   --             --             --             --             --
   Depreciation and amortization                              72            365            505             46             --
   Loss on asset impairments                               1,259             --         18,075          1,383          1,787
   Property taxes, insurance and other                        62             54            217            127            134
                                                        --------       --------       --------        --------      --------
 Operating expenses                                        1,393            419         18,797          1,556          1,921
                                                        --------       --------       --------        --------      --------
 Operating (loss) income                                  (1,373)           130        (17,930)        (1,232)        (1,346)
 Interest expense, net                                        --            316             --             --             --
 Equity in income from consolidated entities                  --             --             --             --             --
                                                        --------       --------       --------        --------      --------
 (Loss) income before minority interests,
   income tax expense, and discontinued operations        (1,373)          (186)       (17,930)        (1,232)        (1,346)
 Minority interests                                           --             --             --             --             --
 Income tax expense                                           --             --             --             --             --
                                                        --------       --------       --------        --------      --------
 (Loss) income from continuing operations                 (1,373)          (186)       (17,930)        (1,232)        (1,346)
 Discontinued operations:
 (Loss) income from discontinued operations
   before tax benefit                                         --             --             --             --             --
      Income tax benefit                                      --             --             --             --             --
                                                        --------       --------       --------        --------      --------
   (Loss) income on discontinued operations                   --             --             --             --             --
                                                        --------       --------       --------        --------      --------
 Net (loss) income                                        (1,373)          (186)       (17,930)        (1,232)        (1,346)
                                                        ========       ========       ========        ========      ========
</TABLE>
<PAGE>
MeriStar Hospitality Operating Partnership, L.P.
Consolidating Statement of Operations
Three months ended June 30, 2003
(Dollars in thousands)

<TABLE>
<CAPTION>
                                                        MeriStar       MeriStar       MeriStar      MeriStar      MeriStar
                                                         Sub 2D,        Sub 4F,        Sub 5K,       Sub 5M,       Sub 1E,
                                                           LLC            L.P.           LLC           LLC           L.P.
                                                        --------       --------       --------      --------      --------
<S>                                                     <C>            <C>            <C>           <C>           <C>
 Revenue:
 Hotel operations:
   Rooms                                                      --             --            --            --            --
   Food and beverage                                          --             --            --            --            --
   Other hotel operations                                     --             --            --            --            --
 Office rental, parking and other revenues                    --              4            --            --            --
 Participating lease revenue                                 352            455           632           429           421
                                                        --------       --------       --------      --------      --------
Total revenue                                                352            459           632           429           421
                                                        --------       --------       --------      --------      --------
Hotel operating expenses:
   Rooms                                                      --             --            --            --            --
   Food and beverage                                          --             --            --            --            --
   Other hotel operating expenses                             --             --            --            --            --
 Office rental, parking and other expenses                    --             --            --            --            --
Other operating expenses:
   General and administrative                                 --             --            --            --            --
   Property operating costs                                   --             --            --            --            --
   Depreciation and amortization                             107            277           322           118            79
   Loss on asset impairments                               1,035             --            --            --            --
   Property taxes, insurance and other                        74             87            93            65            42
                                                        --------       --------       --------      --------      --------
 Operating expenses                                        1,216            364           415           183           121
                                                        --------       --------       --------      --------      --------
 Operating (loss) income                                    (864)            95           217           246           300
 Interest expense, net                                       223             --            --            --            --
 Equity in income from consolidated entities                  --             --            --            --            --
                                                        --------       --------       --------      --------      --------
 (Loss) income before minority interests,
   income tax expense, and discontinued operations        (1,087)            95           217           246           300
 Minority interests                                           --             --            --            --            --
 Income tax expense                                           --             --            --            --            --
                                                        --------       --------       --------      --------      --------
 (Loss) income from continuing operations                 (1,087)            95           217           246           300
 Discontinued operations:
 (Loss) income from discontinued operations
   before tax benefit                                         --             --            --            --            --
      Income tax benefit                                      --             --            --            --            --
                                                        --------       --------       --------      --------      --------
   (Loss) income on discontinued operations                   --             --            --            --            --
                                                        --------       --------       --------      --------      --------
 Net (loss) income                                        (1,087)            95           217           246           300
                                                        ========       ========       ========      ========      ========
</TABLE>

<TABLE>
<CAPTION>
                                                        MeriStar       MeriStar       MeriStar      MeriStar      MeriStar
                                                         Sub 5O,        Sub 6M         Sub 4B,       Sub 6C,       Sub 2C,
                                                           LLC         Company           L.P.          LLC           LLC
<S>                                                     <C>            <C>            <C>           <C>           <C>
                                                        --------       --------       --------      --------      --------
 Revenue:
 Hotel operations:
   Rooms                                                      --            --            --             --            --
   Food and beverage                                          --            --            --             --            --
   Other hotel operations                                     --            --            --             --            --
 Office rental, parking and other revenues                    --            --            --              1             4
 Participating lease revenue                                 200         1,160            45            753           388
                                                        --------       --------       --------      --------      --------
Total revenue                                                200         1,160            45            754           392
                                                        --------       --------       --------      --------      --------
Hotel operating expenses:
   Rooms                                                      --            --            --             --            --
   Food and beverage                                          --            --            --             --            --
   Other hotel operating expenses                             --            --            --             --            --
 Office rental, parking and other expenses                    --            --            --             --            --
Other operating expenses:
   General and administrative                                 --            --            --             --            --
   Property operating costs                                   --            --            --             --            --
   Depreciation and amortization                              57           308           132            193           234
   Loss on asset impairments                                  --            --           264             --         1,973
   Property taxes, insurance and other                        26            82            65             56           140
                                                        --------       --------       --------      --------      --------
 Operating expenses                                           83           390           461            249         2,347
                                                        --------       --------       --------      --------      --------
 Operating (loss) income                                     117           770          (416)           505        (1,955)
 Interest expense, net                                        --            --            --             --           391
 Equity in income from consolidated entities                  --            --            --             --            --
                                                        --------       --------       --------      --------      --------
 (Loss) income before minority interests,
   income tax expense, and discontinued operations           117           770          (416)           505        (2,346)
 Minority interests                                           --            --            --             --            --
 Income tax expense                                           --            --            --             --            --
                                                        --------       --------       --------      --------      --------
 (Loss) income from continuing operations                    117           770          (416)           505        (2,346)
 Discontinued operations:
 (Loss) income from discontinued operations
   before tax benefit                                         --            --            --             --            --
      Income tax benefit                                      --            --            --             --            --
                                                        --------       --------       --------      --------      --------
   (Loss) income on discontinued operations                   --            --            --             --            --
                                                        --------       --------       --------      --------      --------
 Net (loss) income                                           117           770          (416)           505        (2,346)
                                                        ========       ========       ========      ========      ========
</TABLE>
<PAGE>
MeriStar Hospitality Operating Partnership, L.P.
Consolidating Statement of Operations
Three months ended June 30, 2003
(Dollars in thousands)

<TABLE>
<CAPTION>
                                                        MeriStar       MeriStar       MeriStar      MeriStar      MeriStar
                                                         Sub 4G,        Sub 3B,        Sub 5G,       Sub 5P,       Sub 5J,
                                                          L.P.            LLC            L.P.          LLC           LLC
                                                        --------       --------       --------      --------      --------
<S>                                                     <C>            <C>            <C>           <C>           <C>
 Revenue:
 Hotel operations:
   Rooms                                                      --             --             --            --            --
   Food and beverage                                          --             --             --            --            --
   Other hotel operations                                     --             --             --            --            --
 Office rental, parking and other revenues                    --             --             16            --            --
 Participating lease revenue                                 498             --          2,267           505         2,676
                                                        --------       --------       --------      --------      --------
Total revenue                                                498             --          2,283           505         2,676
                                                        --------       --------       --------      --------      --------
Hotel operating expenses:
   Rooms                                                      --             --             --            --            --
   Food and beverage                                          --             --             --            --            --
   Other hotel operating expenses                             --             --             --            --            --
 Office rental, parking and other expenses                    --             --             --            --            --
Other operating expenses:
   General and administrative                                 --             --             --            --            --
   Property operating costs                                   --             --             --            --            --
   Depreciation and amortization                             223             --          1,573             1           870
   Loss on asset impairments                               8,000             --             --            --            --
   Property taxes, insurance and other                       165             --            474             1           369
                                                        --------       --------       --------      --------      --------
 Operating expenses                                        8,388             --          2,047             2         1,239
                                                        --------       --------       --------      --------      --------
 Operating (loss) income                                  (7,890)            --            236           503         1,437
 Interest expense, net                                        --             --             --            --            --
 Equity in income from consolidated entities                  --             --             --            --            --
                                                        --------       --------       --------      --------      --------
 (Loss) income before minority interests,
   income tax expense, and discontinued operations        (7,890)            --            236           503         1,437
 Minority interests                                           --             --             --            --            --
 Income tax expense                                           --             --             --            --            --
                                                        --------       --------       --------      --------      --------
 (Loss) income from continuing operations                 (7,890)            --            236           503         1,437
 Discontinued operations:
 (Loss) income from discontinued operations
   before tax benefit                                         --           (392)            --            --            --
      Income tax benefit                                      --             --             --            --            --
                                                        --------       --------       --------      --------      --------
   (Loss) income on discontinued operations                   --           (392)            --            --            --
                                                        --------       --------       --------      --------      --------
 Net (loss) income                                        (7,890)          (392)           236           503         1,437
                                                        ========       ========       ========      ========      ========
</TABLE>

<TABLE>
<CAPTION>
                                                        MeriStar       MeriStar       MeriStar      MeriStar      MeriStar
                                                         Sub 5Q,        Sub 5R,        Sub 8D,       Sub 4J,        Hotel
                                                          LLC            LLC            LLC            LLC       Lessee, Inc.
                                                        --------       --------       --------      --------      --------
<S>                                                     <C>            <C>            <C>           <C>          <C>
 Revenue:
 Hotel operations:
   Rooms                                                      --            --            --            --        164,393
   Food and beverage                                          --            --            --            --         68,496
   Other hotel operations                                     --            --            --            --         21,693
 Office rental, parking and other revenues                    --            27            --           (51)            --
 Participating lease revenue                                 585         1,288           595           905             --
                                                        --------       --------       --------      --------      --------
Total revenue                                                585         1,315           595           854        254,582
                                                        --------       --------       --------      --------      --------
Hotel operating expenses:
   Rooms                                                      --            --            --            --         40,036
   Food and beverage                                          --            --            --            --         47,803
   Other hotel operating expenses                             --            --            --            --         12,787
 Office rental, parking and other expenses                    --            --            --            64             --
Other operating expenses:
   General and administrative                                 --            --             6            48         39,432
   Property operating costs                                   --            --            --            --         37,893
   Depreciation and amortization                             140           385           313           317            491
   Loss on asset impairments                                  --            --            --            --             --
   Property taxes, insurance and other                        55           178           110            79         74,346
                                                        --------       --------       --------      --------      --------
 Operating expenses                                          195           563           429           508        252,788
                                                        --------       --------       --------      --------      --------
 Operating (loss) income                                     390           752           166           346          1,794
 Interest expense, net                                        --           709            --            --            555
 Equity in income from consolidated entities                  --            --            --            --             --
                                                        --------       --------       --------      --------      --------
 (Loss) income before minority interests,
   income tax expense, and discontinued operations           390            43           166           346          1,239
 Minority interests                                           --            --            --            --             --
 Income tax expense                                           --            --            --            --             --
                                                        --------       --------       --------      --------      --------
 (Loss) income from continuing operations                    390            43           166           346          1,239
 Discontinued operations:
 (Loss) income from discontinued operations
   before tax benefit                                         --            --            --            --           (435)
      Income tax benefit                                      --            --            --            --             --
                                                        --------       --------       --------      --------      --------
   (Loss) income on discontinued operations                   --            --            --            --           (435)
                                                        --------       --------       --------      --------      --------
 Net (loss) income                                           390            43           166           346            804
                                                        ========       ========       ========      ========      ========
</TABLE>
<PAGE>
MeriStar Hospitality Operating Partnership, L.P.
Consolidating Statement of Operations
Three months ended June 30, 2003
(Dollars in thousands)

<TABLE>
<CAPTION>
                                                       Guarantor
                                                      Subsidiaries                     Total
                                                         Total        Eliminations  Consolidated
                                                      ------------    ------------  ------------
<S>                                                   <C>             <C>           <C>
 Revenue:
 Hotel operations:                                                                          --
   Rooms                                                 164,393             --        164,393
   Food and beverage                                      68,496             --         68,496
   Other hotel operations                                 21,693             --         21,693
 Office rental, parking and other revenues                  (416)            --          3,461
 Participating lease revenue                              36,811        (67,899)            --
                                                        --------       --------       --------
Total revenue                                            290,977        (67,899)       258,043
                                                        --------       --------       --------
Hotel operating expenses:
   Rooms                                                  40,036             --         40,036
   Food and beverage                                      47,803             --         47,803
   Other hotel operating expenses                         12,787             --         12,787
 Office rental, parking and other expenses                    58             --            583
Other operating expenses:
   General and administrative                             39,688             --         42,612
   Property operating costs                               37,893             --         37,893
   Depreciation and amortization                          13,905             --         29,553
   Loss on asset impairments                              91,689             --        207,630
   Property taxes, insurance and other                    80,997        (67,899)        20,454
                                                        --------       --------       --------
 Operating expenses                                      364,856        (67,899)       439,351
                                                        --------       --------       --------
 Operating (loss) income                                 (73,879)            --       (181,308)
 Interest expense, net                                     2,504             --         34,739
 Equity in income from consolidated entities                  --       (186,138)            --
                                                        --------       --------       --------
 (Loss) income before minority interests,
   income tax expense, and discontinued operations       (76,383)       186,138       (216,047)
 Minority interests                                           --             --              5
 Income tax expense                                           --             --            (21)
                                                        --------       --------       --------
 (Loss) income from continuing operations                (76,383)       186,138       (216,063)
 Discontinued operations:
 (Loss) income from discontinued operations
   before tax benefit                                       (797)            --           (598)
      Income tax benefit                                      --             --              2
                                                        --------       --------       --------
   (Loss) income on discontinued operations                 (797)            --           (596)
                                                        --------       --------       --------
 Net (loss) income                                       (77,180)       186,138       (216,659)
                                                        ========       ========       ========
</TABLE>

<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 2002
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                           MERISTAR          NON-       MERISTAR    AGH       MERISTAR
                                                        HOSPITALITY OP,   GUARANTOR      SUB 7C,   UPREIT,     SUB 5N,
                                                             L.P.        SUBSIDIARIES     LLC       LLC          LLC
                                                         --------------  ------------   --------   -------     --------
<S>                                                     <C>              <C>            <C>        <C>        <C>
Revenue:
   Rooms                                                        --              --         --        --             --
   Food and beverage                                            --              --         --        --             --
   Other hotel operations                                       --              --         --        --             --
 Office rental, parking and other revenue                    1,705           1,932         --        --             --
 Participating lease revenue                                    --          32,854         --        --            244
                                                           -------         -------     ------    ------        -------
Total revenue                                                1,705          34,786         --        --            244
                                                           -------         -------     ------    ------        -------
Hotel operating expenses:
   Rooms                                                        --              --         --        --             --
   Food and beverage                                            --              --         --        --             --
   Other hotel operating expenses                               --              --         --        --             --
 Office rental, parking and other  expenses                     --             362         --        --             --
Other operating expenses:
   General and administrative                                2,815               1         --        --             --
   Property operating costs                                     --              (2)        --        --             --
   Depreciation and amortization                             2,489          12,637         --        --             33
   Property taxes, insurance and other                      (1,171)          3,131         --        --             26
   Change in fair value of non-hedging derivatives,
     net of swap payments                                    3,090              --         --        --             --
                                                           -------         -------     ------    ------        -------
Operating expenses                                           7,223          16,129         --        --             59
                                                           -------         -------     ------    ------        -------
Operating (loss) income                                     (5,518)         18,657         --        --            185
Interest expense, net                                       25,866           7,005         --        --             (1)
Equity in income from consolidated entities                (34,974)             --         --        --             --
                                                           -------         -------     ------    ------        -------
(Loss) income before minority interests,
   income tax expense, and discontinued operations           3,590          11,652         --        --            186
Minority interests                                               3              --         --        --             --
Income tax expense                                             (69)             --         --        --             --
                                                           -------         -------     ------    ------        -------
(Loss) income from continuing operations                     3,524          11,652         --        --            186
Discontinued operations:
   (Loss) income from discontinued operations
     before tax expense                                         --           1,123         --        --             --
   Income tax expense                                          (21)             --         --        --             --
                                                           -------         -------     ------    ------        -------
(Loss) income from discontinued operations                     (21)          1,123         --        --             --

                                                           -------         -------     ------    ------        -------
Net (loss) income                                            3,503          12,775         --        --            186
                                                           =======         =======     ======    ======        =======
</TABLE>

<TABLE>
<CAPTION>
                                                           MERISTAR      MERISTAR     MERISTAR
                                                            SUB 8A,       SUB 8F,      SUB 8G,
                                                              LLC          L.P.          LLC
                                                         --------------  ------------   --------
<S>                                                        <C>           <C>          <C>
Revenue:
   Rooms                                                       --            --           --
   Food and beverage                                           --            --           --
   Other hotel operations                                      --            --           --
 Office rental, parking and other revenue                      --            --           --
 Participating lease revenue                                   --           570           --
                                                             ----          ----           --
Total revenue                                                  --           570           --
                                                             ----          ----           --
Hotel operating expenses:
   Rooms                                                       --            --           --
   Food and beverage                                           --            --           --
   Other hotel operating expenses                              --            --           --
 Office rental, parking and other  expenses                    --            --           --
Other operating expenses:
   General and administrative                                  --            --           --
   Property operating costs                                    --            --           --
   Depreciation and amortization                               --           113           --
   Property taxes, insurance and other                         --           146           --
   Change in fair value of non-hedging derivatives,
     net of swap payments                                      --            --           --
                                                             ----          ----           --
Operating expenses                                             --           259           --
                                                             ----          ----           --
Operating (loss) income                                        --           311           --
Interest expense, net                                          --            (2)          --
Equity in income from consolidated entities                    --            --           --
                                                             ----          ----           --
(Loss) income before minority interests,
   income tax expense, and discontinued operations             --           313           --
Minority interests                                             --            --           --
Income tax expense                                             --            --           --
                                                             ----          ----           --
(Loss) income from continuing operations                       --           313           --
Discontinued operations:
   (Loss) income from discontinued operations
     before tax expense                                       255            --           --
   Income tax expense                                          --            --           --
                                                             ----          ----           --
(Loss) income from discontinued operations                    255            --           --

                                                             ----          ----           --
Net (loss) income                                             255           313           --
                                                             ====          ====           ==
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 2002
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                             MERISTAR        MERISTAR         MERISTAR
                                                              SUB 6H,         SUB 8B,          SUB 1C,
                                                               L.P.            LLC              L.P.
                                                             ---------       ---------        ---------
<S>                                                          <C>             <C>              <C>
Revenue:
   Rooms                                                          --              --               --
   Food and beverage                                              --              --               --
   Other hotel operations                                         --              --               --
 Office rental, parking and other revenue                         --              --               --
 Participating lease revenue                                     413           2,082              404
                                                              ------          ------           ------
Total revenue                                                    413           2,082              404
                                                              ------          ------           ------
Hotel operating expenses:
   Rooms                                                          --              --               --
   Food and beverage                                              --              --               --
   Other hotel operating expenses                                 --              --               --
 Office rental, parking and other  expenses                       --              --               --
Other operating expenses:
   General and administrative                                     --              --                3
   Property operating costs                                       --              --               --
   Depreciation and amortization                                 108             595              257
   Property taxes, insurance and other                            24             358              198
   Change in fair value of non-hedging derivatives,
     net of swap payments                                         --              --               --
                                                              ------          ------           ------
Operating expenses                                               132             953              458
                                                              ------          ------           ------
Operating (loss) income                                          281           1,129              (54)
Interest expense, net                                             --             (25)             (11)
Equity in income from consolidated entities                       --              --               --
                                                              ------          ------           ------
(Loss) income before minority interests,
   income tax expense, and discontinued operations               281           1,154              (43)
Minority interests                                                --              --               --
Income tax expense                                                --              --               --
                                                              ------          ------           ------
(Loss) income from continuing operations                         281           1,154              (43)

Discontinued operations:
   (Loss) income from discontinued operations
     before tax expense                                           --              --               --
   Income tax expense                                             --              --               --
                                                              ------          ------           ------
(Loss) income from discontinued operations                        --              --               --

                                                              ------          ------           ------
Net (loss) income                                                281           1,154              (43)
                                                             =======          ======           ======
</TABLE>

<TABLE>
<CAPTION>
                                                           MERISTAR       MERISTAR       MERISTAR       MERISTAR       MERISTAR
                                                            SUB 8E,        SUB 7F,        SUB 5L,        SUB 3C,        SUB 5R,
                                                             LLC            LLC            LLC            LLC            LLC
                                                          ----------      ---------      ---------     -----------     ---------
<S>                                                        <C>            <C>            <C>            <C>            <C>
Revenue:
   Rooms                                                       --             --             --             --             --
   Food and beverage                                           --             --             --             --             --
   Other hotel operations                                      --             --             --             --             --
 Office rental, parking and other revenue                       7             --             --             --             --
 Participating lease revenue                                  431            322            294            448             --
                                                             ----           ----           ----           ----           ----
Total revenue                                                 438            322            294            448             --
                                                             ----           ----           ----           ----           ----
Hotel operating expenses:
   Rooms                                                       --             --             --             --             --
   Food and beverage                                           --             --             --             --             --
   Other hotel operating expenses                              --             --             --             --             --
 Office rental, parking and other  expenses                    --             --             --             --             --
Other operating expenses:
   General and administrative                                  --             --             --             --             --
   Property operating costs                                    --             --             --             --             --
   Depreciation and amortization                              149            115             34            177             --
   Property taxes, insurance and other                         45             36             30            112             --
   Change in fair value of non-hedging derivatives,
     net of swap payments                                      --             --             --             --             --
                                                             ----           ----           ----           ----           ----
Operating expenses                                            194            151             64            289             --
                                                             ----           ----           ----           ----           ----
Operating (loss) income                                       244            171            230            159             --
Interest expense, net                                          (1)            (3)            (1)            (5)            --
Equity in income from consolidated entities                    --             --             --             --             --
                                                             ----           ----           ----           ----           ----
(Loss) income before minority interests,
   income tax expense, and discontinued operations            245            174            231            164             --
Minority interests                                             --             --             --             --             --
Income tax expense                                             --             --             --             --             --
                                                             ----           ----           ----           ----           ----
(Loss) income from continuing operations                      245            174            231            164             --
Discontinued operations:
   (Loss) income from discontinued operations
     before tax expense                                        --             --             --             --             --
   Income tax expense                                          --             --             --             --             --
                                                             ----           ----           ----           ----           ----
(Loss) income from discontinued operations                     --             --             --             --             --

                                                             ----           ----           ----           ----           ----
Net (loss) income                                             245            174            231            164             --
                                                             ====           ====           ====           ====           ====
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 2002
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                          MERISTAR       MERISTAR       MERISTAR       MERISTAR       MERISTAR
                                                           SUB 6D,        SUB 6E,        SUB 4E,        SUB 1B,        SUB 5F,
                                                            LLC            LLC            L.P.           LLC            L.P.
                                                          --------       --------       --------       --------        --------
<S>                                                       <C>            <C>            <C>            <C>            <C>
Revenue:
   Rooms                                                       --             --             --             --             --
   Food and beverage                                           --             --             --             --             --
   Other hotel operations                                      --             --             --             --             --
 Office rental, parking and other revenue                       4             --              4            (12)            --
 Participating lease revenue                                  636          1,662            357            680            729
                                                           ------         ------         ------         ------         ------
Total revenue                                                 640          1,662            361            668            729
                                                           ------         ------         ------         ------         ------
Hotel operating expenses:
   Rooms                                                       --             --             --             --             --
   Food and beverage                                           --             --             --             --             --
   Other hotel operating expenses                              --             --             --             --             --
 Office rental, parking and other  expenses                    --             --             --             --             --
Other operating expenses:
   General and administrative                                  --             --             --             --             --
   Property operating costs                                    --             --             --             --             --
   Depreciation and amortization                              133            424            229            158            264
   Property taxes, insurance and other                         44            208             98             40             86
   Change in fair value of non-hedging derivatives,
     net of swap payments                                      --             --             --             --             --
                                                           ------         ------         ------         ------         ------
Operating expenses                                            177            632            327            198            350
                                                           ------         ------         ------         ------         ------
Operating (loss) income                                       463          1,030             34            470            379
Interest expense, net                                          (7)           (16)            (7)            (5)           (10)
Equity in income from consolidated entities                    --             --             --             --             --
                                                           ------         ------         ------         ------         ------
(Loss) income before minority interests,
   income tax expense, and discontinued operations            470          1,046             41            475            389
Minority interests                                             --             --             --             --             --
Income tax expense                                             --             --             --             --             --
                                                           ------         ------         ------         ------         ------
(Loss) income from continuing operations                      470          1,046             41            475            389
Discontinued operations:
   (Loss) income from discontinued operations
     before tax expense                                        --             --             --             --             --
   Income tax expense                                          --             --             --             --             --
                                                           ------         ------         ------         ------         ------
(Loss) income from discontinued operations                     --             --             --             --             --

                                                           ------         ------         ------         ------         ------
Net (loss) income                                             470          1,046             41            475            389
                                                           ======         ======         ======         ======         ======
</TABLE>

<TABLE>
<CAPTION>
                                                           MERISTAR       MERISTAR       MERISTAR      MERISTAR       MERISTAR
                                                            SUB 6G,        SUB 8C,        SUB 4C,       SUB 4H,        SUB 7E,
                                                             LLC            LLC            L.P           L.P.           LLC
                                                           --------       --------       --------      --------       --------
<S>                                                        <C>            <C>            <C>           <C>            <C>
Revenue:
   Rooms                                                       --             --             --            --             --
   Food and beverage                                           --             --             --            --             --
   Other hotel operations                                      --             --             --            --             --
 Office rental, parking and other revenue                      --             --             --            --             --
 Participating lease revenue                                  813            486             --           178            355
                                                             ----           ----           ----          ----           ----
Total revenue                                                 813            486             --           178            355
                                                             ----           ----           ----          ----           ----
Hotel operating expenses:
   Rooms                                                       --             --             --            --             --
   Food and beverage                                           --             --             --            --             --
   Other hotel operating expenses                              --             --             --            --             --
 Office rental, parking and other  expenses                    --             --             --            --             --
Other operating expenses:
   General and administrative                                  --             --             --            --             --
   Property operating costs                                    --             --             --            --             --
   Depreciation and amortization                              209            346             --           135            157
   Property taxes, insurance and other                         77            148             --            47             40
   Change in fair value of non-hedging derivatives,
     net of swap payments                                      --             --             --            --             --
                                                             ----           ----           ----          ----           ----
Operating expenses                                            286            494             --           182            197
                                                             ----           ----           ----          ----           ----
Operating (loss) income                                       527             (8)            --            (4)           158
Interest expense, net                                         (13)           (11)            --            (2)            (4)
Equity in income from consolidated entities                    --             --             --            --             --
                                                             ----           ----           ----          ----           ----
(Loss) income before minority interests,
   income tax expense, and discontinued operations            540              3             --            (2)           162
Minority interests                                             --             --             --            --             --
Income tax expense                                             --             --             --            --             --
                                                             ----           ----           ----          ----           ----
(Loss) income from continuing operations                      540              3             --            (2)           162
Discontinued operations:
   (Loss) income from discontinued operations
     before tax expense                                        --             --             26            --             --
   Income tax expense                                          --             --             --            --             --
                                                             ----           ----           ----          ----           ----
(Loss) income from discontinued operations                     --             --             26            --             --

                                                             ----           ----           ----          ----           ----
Net (loss) income                                             540              3             26            (2)           162
                                                             ====           ====           ====          ====           ====
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 2002
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                                                      MERISTAR
                                                          MERISTAR       MERISTAR       MERISTAR       SUB 7A         MERISTAR
                                                           SUB 3D,        SUB 1A,        SUB 5E,        JOINT          SUB 6K,
                                                            LLC            LLC            LLC          VENTURE          LLC
                                                          --------       --------        --------      --------        -------
<S>                                                       <C>            <C>            <C>           <C>             <C>
Revenue:
   Rooms                                                       --             --             --             --             --
   Food and beverage                                           --             --             --             --             --
   Other hotel operations                                      --             --             --             --             --
 Office rental, parking and other revenue                      --             --             --             --             --
 Participating lease revenue                                  514            470          1,824            353          1,163
                                                           ------         ------         ------         ------         ------
Total revenue                                                 514            470          1,824            353          1,163
                                                           ------         ------         ------         ------         ------
Hotel operating expenses:
   Rooms                                                       --             --             --             --             --
   Food and beverage                                           --             --             --             --             --
   Other hotel operating expenses                              --             --             --             --             --
 Office rental, parking and other  expenses                    --             --             --             --             --
Other operating expenses:
   General and administrative                                  --             --             --             --             --
   Property operating costs                                    --             --             --             --             --
   Depreciation and amortization                              211            113            484            104            186
   Property taxes, insurance and other                         63             81             99             55            121
   Change in fair value of non-hedging derivatives,
     net of swap payments                                      --             --             --             --             --
                                                           ------         ------         ------         ------         ------
Operating expenses                                            274            194            583            159            307
                                                           ------         ------         ------         ------         ------
Operating (loss) income                                       240            276          1,241            194            856
Interest expense, net                                         (11)            (4)            (8)            (9)           (10)
Equity in income from consolidated entities                    --             --             --             --             --
                                                           ------         ------         ------         ------         ------
(Loss) income before minority interests,
   income tax expense, and discontinued operations            251            280          1,249            203            866
Minority interests                                             --             --             --             --             --
Income tax expense                                             --             --             --             --             --
                                                           ------         ------         ------         ------         ------
(Loss) income from continuing operations                      251            280          1,249            203            866
Discontinued operations:
   (Loss) income from discontinued operations
     before tax expense                                        --             --             --             --             --
   Income tax expense                                          --             --             --             --             --
                                                           ------         ------         ------         ------         ------
(Loss) income from discontinued operations                     --             --             --             --             --

                                                           ------         ------         ------         ------         ------
Net (loss) income                                             251            280          1,249            203            866
                                                           ======         ======         ======         ======         ======
</TABLE>

<TABLE>
<CAPTION>
                                                           MERISTAR       MERISTAR       MERISTAR       MERISTAR      MERISTAR
                                                            SUB 2B,        SUB 3A,        SUB 4A,        SUB 4D,       SUB 2A,
                                                             LLC            LLC            L.P.           LLC           LLC
                                                           --------       --------       --------       --------      --------
<S>                                                        <C>            <C>            <C>            <C>           <C>
Revenue:
   Rooms                                                       --             --             --             --            --
   Food and beverage                                           --             --             --             --            --
   Other hotel operations                                      --             --             --             --            --
 Office rental, parking and other revenue                      --             --             --             --            --
 Participating lease revenue                                  162            132            249             --           167
                                                             ----           ----           ----           ----          ----
Total revenue                                                 162            132            249             --           167
                                                             ----           ----           ----           ----          ----
Hotel operating expenses:
   Rooms                                                       --             --             --             --            --
   Food and beverage                                           --             --             --             --            --
   Other hotel operating expenses                              --             --             --             --            --
 Office rental, parking and other  expenses                    --             --             --             --            --
Other operating expenses:
   General and administrative                                  --             --             --             --            --
   Property operating costs                                    --             --             --             --            --
   Depreciation and amortization                              107             62             --             --            81
   Property taxes, insurance and other                         35             27             61             --            38
   Change in fair value of non-hedging derivatives,
     net of swap payments                                      --             --             --             --            --
                                                             ----           ----           ----           ----          ----
Operating expenses                                            142             89             61             --           119
                                                             ----           ----           ----           ----          ----
Operating (loss) income                                        20             43            188             --            48
Interest expense, net                                          99            (13)           (10)            --           174
Equity in income from consolidated entities                    --             --             --             --            --
(Loss) income before minority interests,
   income tax expense, and discontinued operations            (79)            56            198             --          (126)
Minority interests                                             --             --             --             --            --
Income tax expense                                             --             --             --             --            --
                                                             ----           ----           ----           ----          ----
(Loss) income from continuing operations                      (79)            56            198             --          (126)
Discontinued operations:
   (Loss) income from discontinued operations
     before tax expense                                        --             --             --             10            --
   Income tax expense                                          --             --             --             --            --
                                                             ----           ----           ----           ----          ----
(Loss) income from discontinued operations                     --             --             --             10            --

                                                             ----           ----           ----           ----          ----
Net (loss) income                                             (79)            56            198             10          (126)
                                                             ====           ====           ====           ====          ====
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 2002
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                          MERISTAR        MDV           MERISTAR       MERISTAR       MERISTAR
                                                           SUB 6L,       LIMITED         SUB 5C,        SUB 6J,        SUB 1D,
                                                            LLC        PARTNERSHIP        LLC            LLC            L.P.
                                                           ------         ------         ------         ------         ------
<S>                                                       <C>          <C>              <C>            <C>            <C>
Revenue:
   Rooms                                                       --             --             --             --             --
   Food and beverage                                           --             --             --             --             --
   Other hotel operations                                      --             --             --             --             --
 Office rental, parking and other revenue                      --             --             --             --            108
 Participating lease revenue                                  492            141            479            816          1,278
                                                           ------         ------         ------         ------         ------
Total revenue                                                 492            141            479            816          1,386
                                                           ------         ------         ------         ------         ------
Hotel operating expenses:
   Rooms                                                       --             --             --             --             --
   Food and beverage                                           --             --             --             --             --
   Other hotel operating expenses                              --             --             --             --             --
 Office rental, parking and other  expenses                    --             --             --             --             34
Other operating expenses:
   General and administrative                                  --             --             --             --             --
   Property operating costs                                    --             --             --             --             --
   Depreciation and amortization                              223             34            149            160            564
   Property taxes, insurance and other                         48             27            110             47            279
   Change in fair value of non-hedging derivatives,
     net of swap payments                                      --             --             --             --             --
                                                           ------         ------         ------         ------         ------
Operating expenses                                            271             61            259            207            877
                                                           ------         ------         ------         ------         ------
Operating (loss) income                                       221             80            220            609            509
Interest expense, net                                          (3)            (1)            (9)           (10)            (8)
Equity in income from consolidated entities                    --             --             --             --             --
                                                           ------         ------         ------         ------         ------
(Loss) income before minority interests,
   income tax expense, and discontinued operations            224             81            229            619            517
Minority interests                                             --             --             --             --             --
Income tax expense                                             --             --             --             --             --
                                                           ------         ------         ------         ------         ------
(Loss) income from continuing operations                      224             81            229            619            517
Discontinued operations:
   (Loss) income from discontinued operations
     before tax expense                                        --             --             --             --             --
   Income tax expense                                          --             --             --             --             --
                                                           ------         ------         ------         ------         ------
(Loss) income from discontinued operations                     --             --             --             --             --
                                                           ------         ------         ------         ------         ------
Net (loss) income                                             224             81            229            619            517
                                                           ======         ======         ======         ======         ======
</TABLE>

<TABLE>
<CAPTION>
                                                          MERISTAR       MERISTAR       MERISTAR       MERISTAR       MERISTAR
                                                           SUB 7B,        SUB 7D,        SUB 7G,        SUB 6B,        SUB 4I,
                                                            L.P.           LLC            LLC            LLC            L.P.
                                                           ------         ------         ------         ------         ------
<S>                                                       <C>            <C>            <C>            <C>            <C>
Revenue:
   Rooms                                                       --             --             --             --             --
   Food and beverage                                           --             --             --             --             --
   Other hotel operations                                      --             --             --             --             --
 Office rental, parking and other revenue                      --            331             --             --             --
 Participating lease revenue                                  390          1,387            146            396             19
                                                           ------         ------         ------         ------         ------
Total revenue                                                 390          1,718            146            396             19
                                                           ------         ------         ------         ------         ------
Hotel operating expenses:
   Rooms                                                       --             --             --             --             --
   Food and beverage                                           --             --             --             --             --
   Other hotel operating expenses                              --             --             --             --             --
 Office rental, parking and other  expenses                    --            199             --             --             --
Other operating expenses:
   General and administrative                                  --             --             --             --             --
   Property operating costs                                    --             --             --             --             --
   Depreciation and amortization                              232            416            189            113             99
   Property taxes, insurance and other                        221            534             61             56             76
   Change in fair value of non-hedging derivatives,
     net of swap payments                                      --             --             --             --             --
                                                           ------         ------         ------         ------         ------
Operating expenses                                            453          1,149            250            169            175
                                                           ------         ------         ------         ------         ------
Operating (loss) income                                       (63)           569           (104)           227           (156)
Interest expense, net                                          (4)           (12)            (6)            (3)           (11)
Equity in income from consolidated entities                    --             --             --             --             --
                                                           ------         ------         ------         ------         ------
(Loss) income before minority interests,
   income tax expense, and discontinued operations            (59)           581            (98)           230           (145)
Minority interests                                             --             --             --             --             --
Income tax expense                                             --             --             --             --             --
                                                           ------         ------         ------         ------         ------
(Loss) income from continuing operations                      (59)           581            (98)           230           (145)
Discontinued operations:
   (Loss) income from discontinued operations
     before tax expense                                        --             --             --             --             --
   Income tax expense                                          --             --             --             --             --
                                                           ------         ------         ------         ------         ------
(Loss) income from discontinued operations                     --             --             --             --             --
                                                           ------         ------         ------         ------         ------
Net (loss) income                                             (59)           581            (98)           230           (145)
                                                           ======         ======         ======         ======         ======
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 2002
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                           MERISTAR       MERISTAR       MERISTAR         AGH          MERISTAR
                                                            SUB 5D,        SUB 5H,        SUB 7H,        PSS I,         SUB 2D,
                                                             LLC            LLC            LLC            INC.           LLC
                                                           --------       --------        -------        ------        --------
<S>                                                        <C>            <C>            <C>             <C>           <C>
Revenue:
   Rooms                                                       --             --             --             --             --
   Food and beverage                                           --             --             --             --             --
   Other hotel operations                                      --             --             --             --             --
 Office rental, parking and other revenue                      --             --             --              1             --
 Participating lease revenue                                  576            731            314            666            352
                                                             ----           ----           ----           ----           ----
Total revenue                                                 576            731            314            667            352
                                                             ----           ----           ----           ----           ----
Hotel operating expenses:
   Rooms                                                       --             --             --             --             --
   Food and beverage                                           --             --             --             --             --
   Other hotel operating expenses                              --             --             --             --             --
 Office rental, parking and other  expenses                    --             --             --             --             --
Other operating expenses:
   General and administrative                                  --             --             --             --             --
   Property operating costs                                    --             --             --             --             --
   Depreciation and amortization                              362            493            138             --            120
   Property taxes, insurance and other                         76            164             91            107             59
   Change in fair value of non-hedging derivatives,
     net of swap payments                                      --             --             --             --             --
                                                             ----           ----           ----           ----           ----
Operating expenses                                            438            657            229            107            179
                                                             ----           ----           ----           ----           ----
Operating (loss) income                                       138             74             85            560            173
Interest expense, net                                         380            (22)            (5)           (14)           200
Equity in income from consolidated entities                    --             --             --             --             --
                                                             ----           ----           ----           ----           ----
(Loss) income before minority interests,
   income tax expense, and discontinued operations           (242)            96             90            574            (27)
Minority interests                                             --             --             --             --             --
Income tax expense                                             --             --             --             --             --
                                                             ----           ----           ----           ----           ----
(Loss) income from continuing operations                     (242)            96             90            574            (27)
Discontinued operations:
   (Loss) income from discontinued operations
     before tax expense                                        --             --             --             --             --
   Income tax expense                                          --             --             --             --             --
                                                             ----           ----           ----           ----           ----
(Loss) income from discontinued operations                     --             --             --             --             --
                                                             ----           ----           ----           ----           ----
Net (loss) income                                            (242)            96             90            574            (27)
                                                             ====           ====           ====           ====           ====
</TABLE>

<TABLE>
<CAPTION>
                                                           MERISTAR       MERISTAR       MERISTAR       MERISTAR       MERISTAR
                                                            SUB 4F,        SUB 5K,        SUB 5M,        SUB 1E,        SUB 5O,
                                                             L.P.           LLC            LLC            L.P.           LLC
                                                           --------       --------        -------        ------        --------
<S>                                                        <C>            <C>            <C>            <C>            <C>
Revenue:
   Rooms                                                       --             --             --             --             --
   Food and beverage                                           --             --             --             --             --
   Other hotel operations                                      --             --             --             --             --
 Office rental, parking and other revenue                      --             --             --             --             --
 Participating lease revenue                                  467            643            440            459            206
                                                             ----           ----           ----           ----           ----
Total revenue                                                 467            643            440            459            206
                                                             ----           ----           ----           ----           ----
Hotel operating expenses:
   Rooms                                                       --             --             --             --             --
   Food and beverage                                           --             --             --             --             --
   Other hotel operating expenses                              --             --             --             --             --
 Office rental, parking and other  expenses                    --             --             --             --             --
Other operating expenses:
   General and administrative                                  --             --             --             --             --
   Property operating costs                                    --             --             --             --             --
   Depreciation and amortization                              280            297            113             74             54
   Property taxes, insurance and other                         93             75             74             37             34
   Change in fair value of non-hedging derivatives,
     net of swap payments                                      --             --             --             --             --
                                                             ----           ----           ----           ----           ----
Operating expenses                                            373            372            187            111             88
                                                             ----           ----           ----           ----           ----
Operating (loss) income                                        94            271            253            348            118
Interest expense, net                                         (10)           (28)            (5)            (4)            (2)
Equity in income from consolidated entities                    --             --             --             --             --
                                                             ----           ----           ----           ----           ----
(Loss) income before minority interests,
   income tax expense, and discontinued operations            104            299            258            352            120
Minority interests                                             --             --             --             --             --
Income tax expense                                             --             --             --             --             --
                                                             ----           ----           ----           ----           ----
(Loss) income from continuing operations                      104            299            258            352            120
Discontinued operations:
   (Loss) income from discontinued operations
     before tax expense                                        --             --             --             --             --
   Income tax expense                                          --             --             --             --             --
                                                             ----           ----           ----           ----           ----
(Loss) income from discontinued operations                     --             --             --             --             --
                                                             ----           ----           ----           ----           ----
Net (loss) income                                             104            299            258            352            120
                                                             ====           ====           ====           ====           ====
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 2002
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                           MERISTAR        MERISTAR        MERISTAR        MERISTAR        MERISTAR
                                                            SUB 6M          SUB 4B,         SUB 6C,         SUB 2C,         SUB 4G,
                                                           COMPANY           L.P.            LLC             LLC             L.P.
                                                            ------          ------          ------          ------          ------
<S>                                                        <C>             <C>             <C>             <C>             <C>
Revenue:
   Rooms                                                        --              --              --              --              --
   Food and beverage                                            --              --              --              --              --
   Other hotel operations                                       --              --              --              --              --
 Office rental, parking and other revenue                       --              --               4               9               4
 Participating lease revenue                                 1,299              51             832             419             621
                                                            ------          ------          ------          ------          ------
Total revenue                                                1,299              51             836             428             625
                                                            ------          ------          ------          ------          ------
Hotel operating expenses:
   Rooms                                                        --              --              --              --              --
   Food and beverage                                            --              --              --              --              --
   Other hotel operating expenses                               --              --              --              --              --
 Office rental, parking and other  expenses                     --              --              --              --              --
Other operating expenses:
   General and administrative                                   --              --              --              --              --
   Property operating costs                                     --              --              --              --              --
   Depreciation and amortization                               301             119             195             264             229
   Property taxes, insurance and other                          73              85              50              89             125
   Change in fair value of non-hedging derivatives,
     net of swap payments                                       --              --              --              --              --
                                                            ------          ------          ------          ------          ------
Operating expenses                                             374             204             245             353             354
                                                            ------          ------          ------          ------          ------
Operating (loss) income                                        925            (153)            591              75             271
Interest expense, net                                           (7)            (66)            (11)            344              (7)
Equity in income from consolidated entities                     --              --              --              --              --
                                                            ------          ------          ------          ------          ------
(Loss) income before minority interests,
   income tax expense, and discontinued operations             932             (87)            602            (269)            278
Minority interests                                              --              --              --              --              --
Income tax expense                                              --              --              --              --              --
                                                            ------          ------          ------          ------          ------
(Loss) income from continuing operations                       932             (87)            602            (269)            278
Discontinued operations:
   (Loss) income from discontinued operations
     before tax expense                                         --              --              --              --              --
   Income tax expense                                           --              --              --              --              --
                                                            ------          ------          ------          ------          ------
(Loss) income from discontinued operations                      --              --              --              --              --
                                                            ------          ------          ------          ------          ------
Net (loss) income                                              932             (87)            602            (269)            278
                                                            ======          ======          ======          ======          ======
</TABLE>

<TABLE>
<CAPTION>
                                                           MERISTAR        MERISTAR        MERISTAR       MERISTAR        MERISTAR
                                                            SUB 3B,         SUB 5G,         SUB 5P,        SUB 5J,         SUB 5Q,
                                                             LLC             L.P.            LLC            LLC             LLC
                                                            ------          ------          ------         ------          ------
<S>                                                        <C>             <C>             <C>            <C>             <C>
Revenue:
   Rooms                                                        --              --              --             --              --
   Food and beverage                                            --              --              --             --              --
   Other hotel operations                                       --              --              --             --              --
 Office rental, parking and other revenue                       --              12              --             --              --
 Participating lease revenue                                    --           3,033             183          2,586             543
                                                            ------          ------          ------         ------          ------
Total revenue                                                   --           3,045             183          2,586             543
                                                            ------          ------          ------         ------          ------
Hotel operating expenses:
   Rooms                                                        --              --              --             --              --
   Food and beverage                                            --              --              --             --              --
   Other hotel operating expenses                               --              --              --             --              --
 Office rental, parking and other  expenses                     --              --              --             --              --
Other operating expenses:
   General and administrative                                   --              (1)             --             --              --
   Property operating costs                                     --              --              --             --              --
   Depreciation and amortization                                --           1,547               1            867             120
   Property taxes, insurance and other                          --             456              12            439              72
   Change in fair value of non-hedging derivatives,
     net of swap payments                                       --              --              --             --              --
                                                            ------          ------          ------         ------          ------
Operating expenses                                              --           2,002              13          1,306             192
                                                            ------          ------          ------         ------          ------
Operating (loss) income                                         --           1,043             170          1,280             351
Interest expense, net                                           --             (37)             --            (31)            (25)
Equity in income from consolidated entities                     --              --              --             --              --
                                                            ------          ------          ------         ------          ------
(Loss) income before minority interests,
   income tax expense, and discontinued operations              --           1,080             170          1,311             376
Minority interests                                              --              --              --             --              --
Income tax expense                                              --              --              --             --              --
                                                            ------          ------          ------         ------          ------
(Loss) income from continuing operations                        --           1,080             170          1,311             376
Discontinued operations:
   (Loss) income from discontinued operations
     before tax expense                                        (88)             --              --             --              --
   Income tax expense                                           --              --              --             --              --
                                                            ------          ------          ------         ------          ------
(Loss) income from discontinued operations                     (88)             --              --             --              --
                                                            ------          ------          ------         ------          ------
Net (loss) income                                              (88)          1,080             170          1,311             376
                                                            ======          ======          ======         ======          ======
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 2002
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                                                         MERISTAR
                                                          MERISTAR       MERISTAR        MERISTAR         HOTEL         GUARANTOR
                                                           SUB 5A,        SUB 8D,         SUB 4J,         LESSEE,      SUBSIDIARIES
                                                            LLC            LLC             LLC             INC.           TOTAL
                                                          --------       --------        --------        --------      ------------
<S>                                                       <C>            <C>             <C>             <C>           <C>
Revenue:
   Rooms                                                        --             --              --         174,945         174,945
   Food and beverage                                            --             --              --          69,817          69,817
   Other hotel operations                                       --             --              --          20,614          20,614
 Office rental, parking and other revenue                       37             --              69              25             603
 Participating lease revenue                                 1,418            579             814              --          38,914
                                                          --------       --------        --------        --------        --------
Total revenue                                                1,455            579             883         265,401         304,893
                                                          --------       --------        --------        --------        --------

Hotel operating expenses:                                       --
   Rooms                                                        --             --              --          41,199          41,199
   Food and beverage                                            --             --              --          48,752          48,752
   Other hotel operating expenses                               --             --              --          11,382          11,382
 Office rental, parking and other  expenses                     --             --              89              --             322
Other operating expenses:
   General and administrative                                   --             --               4          39,895          39,901
   Property operating costs                                     --             --              --          39,087          39,087
   Depreciation and amortization                               377            317             335             789          14,555
   Property taxes, insurance and other                         150            101             (86)         79,809          85,987
   Change in fair value of non-hedging derivatives,
     net of swap payments                                       --             --              --              --              --
                                                          --------       --------        --------        --------        --------
Operating expenses                                             527            418             342         260,913         281,185
                                                          --------       --------        --------        --------        --------
                                                                                                                               --
Operating (loss) income                                        928            161             541           4,488          23,708
Interest expense, net                                          691             (5)            (11)           (101)          1,241
Equity in income from consolidated entities                     --             --              --              --              --
                                                          --------       --------        --------        --------        --------
(Loss) income before minority interests,                        --
   income tax expense, and discontinued operations             237            166             552           4,589          22,467
Minority interests                                              --             --              --              --              --
Income tax expense                                              --             --              --              --              --
                                                          --------       --------        --------        --------        --------

(Loss) income from continuing operations                       237            166             552           4,589          22,467

Discontinued operations:
   (Loss) income from discontinued operations
     before tax expense                                         --             --              --            (471)           (268)
   Income tax expense                                           --             --              --              --              --
                                                          --------       --------        --------        --------        --------
(Loss) income from discontinued operations                      --             --              --            (471)           (268)
                                                          --------       --------        --------        --------        --------
Net (loss) income                                              237            166             552           4,118          22,199
                                                          ========       ========        ========        ========        ========
</TABLE>

<TABLE>
<CAPTION>
                                                                                           TOTAL
                                                                ELIMINATIONS            CONSOLIDATED
                                                                ------------            ------------
<S>                                                             <C>                     <C>
Revenue:
   Rooms                                                                --                 174,945
   Food and beverage                                                    --                  69,817
   Other hotel operations                                               --                  20,614
 Office rental, parking and other revenue                               --                   4,240
 Participating lease revenue                                       (71,768)                     --
                                                                  --------                --------
Total revenue                                                      (71,768)                269,616
                                                                  --------                --------
Hotel operating expenses:
   Rooms                                                                --                  41,199
   Food and beverage                                                    --                  48,752
   Other hotel operating expenses                                       --                  11,382
 Office rental, parking and other  expenses                             --                     684
Other operating expenses:
   General and administrative                                           --                  42,717
   Property operating costs                                             --                  39,085
   Depreciation and amortization                                        --                  29,681
   Property taxes, insurance and other                             (71,768)                 16,179
   Change in fair value of non-hedging derivatives,
     net of swap payments                                               --                   3,090
                                                                  --------                --------
Operating expenses                                                 (71,768)                232,769
                                                                  --------                --------
Operating (loss) income                                                 --                  36,847
Interest expense, net                                                   --                  34,112
Equity in income from consolidated entities                         34,974                      --
                                                                  --------                --------
(Loss) income before minority interests,
   income tax expense, and discontinued operations                 (34,974)                  2,735
Minority interests                                                      --                       3
Income tax expense                                                      --                     (69)
                                                                  --------                --------
(Loss) income from continuing operations                           (34,974)                  2,669
Discontinued operations:
   (Loss) income from discontinued operations
     before tax expense                                                 --                     855
   Income tax expense                                                   --                     (21)
                                                                  --------                --------
(Loss) income from discontinued operations                              --                     834
                                                                  --------                --------
Net (loss) income                                                  (34,974)                  3,503
                                                                  ========                ========
</TABLE>




<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2003
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                    MERISTAR        NON-        MERISTAR       AGH        MERISTAR
                                                  HOSPITALITY     GUARANTOR      SUB 7C,      UPREIT,      SUB 5N,
                                                    OP, L.P.    SUBSIDIARIES       LLC         LLC           LLC
                                                  -----------   ------------   ----------   ----------   ----------
<S>                                               <C>           <C>            <C>          <C>          <C>
 Revenue:
    Hotel operations:
       Rooms                                               --            --            --           --           --
       Food and beverage                                   --            --            --           --           --
       Other hotel operations                              --            --            --           --           --
    Office rental, parking and other revenues           4,211         2,386            --           --           --
 Participating lease revenue                               --        63,664            --           --          515
                                                   ----------    ----------    ----------   ----------   ----------
Total revenue                                           4,211        66,050            --           --          515
                                                   ----------    ----------    ----------   ----------   ----------
Hotel operating expenses:
       Rooms                                               --            --            --           --           --
       Food and beverage                                   --            --            --           --           --
       Other hotel operating expenses                      --            --            --           --           --
    Office rental, parking and other expenses              --           814            --           --           --
Other operating expenses:
       General and administrative                       6,104          (213)           --           --           --
       Property operating costs                            --             1            --           --           --
       Depreciation and amortization                    5,072        25,379            --           --           69
       Loss on asset impairments                           --       119,916            --           --           --
       Property taxes, insurance and other              2,029        12,357            --           --           52
                                                   ----------    ----------    ----------   ----------   ----------
 Operating expenses                                    13,205       158,254            --           --          121
                                                   ----------    ----------    ----------   ----------   ----------
 Operating (loss) income                               (8,994)      (92,204)           --           --          394
 Interest expense, net                                 50,780        13,944            --           --           --
 Equity in income from consolidated entities          230,202            --            --           --           --
                                                   ----------    ----------    ----------   ----------   ----------
 (Loss) income before minority interests, income
   tax benefit, and discontinued operations          (289,976)     (106,148)           --           --          394
 Minority interests                                        (6)           --            --           --           --
 Income tax benefit                                       127            --            --           --           --
                                                   ----------    ----------    ----------   ----------   ----------

 (Loss) income from continuing operations            (289,855)     (106,148)           --           --          394

 Discontinued operations:
 (Loss) income from discontinued operations
 before tax expense                                        --           344            --           --           --
      Income tax benefit                                   (2)           --            --           --           --
                                                   ----------    ----------    ----------   ----------   ----------
   (Loss) income on discontinued operations                (2)          344            --           --           --
                                                   ----------    ----------    ----------   ----------   ----------
 Net (loss) income                                   (289,857)     (105,804)           --           --          394
                                                   ==========    ==========    ==========   ==========   ==========
</TABLE>

<TABLE>
<CAPTION>
                                                    MERISTAR      MERISTAR      MERISTAR     MERISTAR     MERISTAR
                                                     SUB 8A,       SUB 8F,       SUB 8G,      SUB 6H,      SUB 8B,
                                                       LLC          L.P.           LLC          L.P.        LLC
                                                   ----------    ----------    ----------   ----------   ----------
<S>                                                <C>           <C>           <C>          <C>          <C>
 Revenue:
    Hotel operations:
       Rooms                                               --            --            --           --           --
       Food and beverage                                   --            --            --           --           --
       Other hotel operations                              --            --            --           --           --
    Office rental, parking and other revenues              --            --            --           --           --
 Participating lease revenue                               --         1,172            --          569        3,636
                                                   ----------    ----------    ----------   ----------   ----------
Total revenue                                              --         1,172            --          569        3,636
                                                   ----------    ----------    ----------   ----------   ----------
Hotel operating expenses:
       Rooms                                               --            --            --           --           --
       Food and beverage                                   --            --            --           --           --
       Other hotel operating expenses                      --            --            --           --           --
    Office rental, parking and other expenses              --            --            --           --           --
Other operating expenses:
       General and administrative                          --            --            --           --           --
       Property operating costs                            --            --            --           --           --
       Depreciation and amortization                       --           261            --          252        1,220
       Loss on asset impairments                           --            --            --           --           --
       Property taxes, insurance and other                 --           245            --           47          692
                                                   ----------    ----------    ----------   ----------   ----------
 Operating expenses                                        --           506            --          299        1,912
                                                   ----------    ----------    ----------   ----------   ----------
 Operating (loss) income                                   --           666            --          270        1,724
 Interest expense, net                                     --            --            --           --           --
 Equity in income from consolidated entities               --            --            --           --           --
                                                   ----------    ----------    ----------   ----------   ----------
 (Loss) income before minority interests, income
   tax benefit, and discontinued operations                --           666            --          270        1,724
 Minority interests                                        --            --            --           --           --
 Income tax benefit                                        --            --            --           --           --
                                                   ----------    ----------    ----------   ----------   ----------

 (Loss) income from continuing operations                  --           666            --          270        1,724

 Discontinued operations:
 (Loss) income from discontinued operations
 before tax expense                                        --            --            --           --           --
      Income tax benefit                                   --            --            --           --           --
                                                   ----------    ----------    ----------   ----------   ----------
   (Loss) income on discontinued operations                --            --            --           --           --
                                                   ----------    ----------    ----------   ----------   ----------
 Net (loss) income                                         --           666            --          270        1,724
                                                   ==========    ==========    ==========   ==========   ==========
</TABLE>


<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2003
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                    MERISTAR      MERISTAR     MERISTAR      MERISTAR     MERISTAR
                                                     SUB 1C,       SUB 8E,      SUB 7F,       SUB 5L,      SUB 3C,
                                                      L.P.           LLC         LLC            LLC          LLC
                                                   ----------    ----------   ----------    ----------   ----------
<S>                                                <C>           <C>          <C>           <C>          <C>
 Revenue:
    Hotel operations:
       Rooms                                               --            --           --            --           --
       Food and beverage                                   --            --           --            --           --
       Other hotel operations                              --            --           --            --           --
    Office rental, parking and other revenues              --            10           --            --           --
 Participating lease revenue                              834           724          452           547          969
                                                   ----------    ----------   ----------    ----------   ----------
Total revenue                                             834           734          452           547          969
                                                   ----------    ----------   ----------    ----------   ----------
Hotel operating expenses:
       Rooms                                               --            --           --            --           --
       Food and beverage                                   --            --           --            --           --
       Other hotel operating expenses                      --            --           --            --           --
    Office rental, parking and other expenses              --            --           --            --           --
Other operating expenses:
       General and administrative                          --            --           --            --           --
       Property operating costs                            --            --           --            --           --
       Depreciation and amortization                      508           291          229            69          356
       Loss on asset impairments                           --            --        1,637            --           --
       Property taxes, insurance and other                374           108           81            61          197
                                                   ----------    ----------   ----------    ----------   ----------
 Operating expenses                                       882           399        1,947           130          553
                                                   ----------    ----------   ----------    ----------   ----------
 Operating (loss) income                                  (48)          335       (1,495)          417          416
 Interest expense, net                                     --            --           --             2           --
 Equity in income from consolidated entities               --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------
 (Loss) income before minority interests, income
   tax benefit, and discontinued operations               (48)          335       (1,495)          415          416
 Minority interests                                        --            --           --            --           --
 Income tax benefit                                        --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------

 (Loss) income from continuing operations                 (48)          335       (1,495)          415          416

 Discontinued operations:
 (Loss) income from discontinued operations
 before tax expense                                        --            --           --            --           --
      Income tax benefit                                   --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------
   (Loss) income on discontinued operations                --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------
 Net (loss) income                                        (48)          335       (1,495)          415          416
                                                   ==========    ==========   ==========    ==========   ==========
</TABLE>

<TABLE>
<CAPTION>
                                                    MERISTAR      MERISTAR     MERISTAR      MERISTAR     MERISTAR
                                                     SUB 5R,       SUB 6D,      SUB 6E,       SUB 4E,      SUB 1B,
                                                      LLC           LLC          LLC           L.P.         LLC
                                                   ----------    ----------   ----------    ----------   ----------
<S>                                                <C>           <C>          <C>           <C>          <C>
 Revenue:
    Hotel operations:
       Rooms                                               --            --           --            --           --
       Food and beverage                                   --            --           --            --           --
       Other hotel operations                              --            --           --            --           --
    Office rental, parking and other revenues              --             8           --             3            1
 Participating lease revenue                               --           963        2,791           703        1,274
                                                   ----------    ----------   ----------    ----------   ----------
Total revenue                                              --           971        2,791           706        1,275
                                                   ----------    ----------   ----------    ----------   ----------
Hotel operating expenses:
       Rooms                                               --            --           --            --           --
       Food and beverage                                   --            --           --            --           --
       Other hotel operating expenses                      --            --           --            --           --
    Office rental, parking and other expenses              --            --           --            --           --
Other operating expenses:
       General and administrative                          --            --           --            --           --
       Property operating costs                            --            --           --            --           --
       Depreciation and amortization                       --           273          822           421          284
       Loss on asset impairments                           --            --           --        14,611           --
       Property taxes, insurance and other                 --           159          322           223           94
                                                   ----------    ----------   ----------    ----------   ----------
 Operating expenses                                        --           432        1,144        15,255          378
                                                   ----------    ----------   ----------    ----------   ----------
 Operating (loss) income                                   --           539        1,647       (14,549)         897
 Interest expense, net                                     --            --           --            --           10
 Equity in income from consolidated entities               --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------
 (Loss) income before minority interests, income
   tax benefit, and discontinued operations                --           539        1,647       (14,549)         887
 Minority interests                                        --            --           --            --           --
 Income tax benefit                                        --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------

 (Loss) income from continuing operations                  --           539        1,647       (14,549)         887

 Discontinued operations:
 (Loss) income from discontinued operations
 before tax expense                                        --            --           --            --           --
      Income tax benefit                                   --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------
   (Loss) income on discontinued operations                --            --           --            --           --

                                                   ----------    ----------   ----------    ----------   ----------
 Net (loss) income                                         --           539        1,647       (14,549)         887
                                                   ==========    ==========   ==========    ==========   ==========
</TABLE>

<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2003
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                    MERISTAR      MERISTAR     MERISTAR      MERISTAR     MERISTAR
                                                     SUB 5F,       SUB 6G,      SUB 8C,       SUB 4C,      SUB 4H,
                                                      L.P.          LLC          LLC           L.P.         L.P.
                                                   ----------    ----------   ----------    ----------   ----------
<S>                                                <C>           <C>          <C>           <C>          <C>
 Revenue:
    Hotel operations:
       Rooms                                               --            --           --            --           --
       Food and beverage                                   --            --           --            --           --
       Other hotel operations                              --            --           --            --           --
    Office rental, parking and other revenues              --            --            2            --           --
 Participating lease revenue                            1,487         1,248        1,000            --          149
                                                   ----------    ----------   ----------    ----------   ----------
Total revenue                                           1,487         1,248        1,002            --          149
                                                   ----------    ----------   ----------    ----------   ----------
Hotel operating expenses:
       Rooms                                               --            --           --            --           --
       Food and beverage                                   --            --           --            --           --
       Other hotel operating expenses                      --            --           --            --           --
    Office rental, parking and other expenses              --            --           --            --           --
Other operating expenses:
       General and administrative                          --            --           --            --           --
       Property operating costs                            --            --           --            --           --
       Depreciation and amortization                      534           430          377            --          264
       Loss on asset impairments                        7,231            --        5,213            --        5,187
       Property taxes, insurance and other                198           189          346            --           97
                                                   ----------    ----------   ----------    ----------   ----------
 Operating expenses                                     7,963           619        5,936            --        5,548
                                                   ----------    ----------   ----------    ----------   ----------
 Operating (loss) income                               (6,476)          629       (4,934)           --       (5,399)
 Interest expense, net                                     --            --           --            --           --
 Equity in income from consolidated entities               --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------
 (Loss) income before minority interests, income
   tax benefit, and discontinued operations            (6,476)          629       (4,934)           --       (5,399)
 Minority interests                                        --            --           --            --           --
 Income tax benefit                                        --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------

 (Loss) income from continuing operations              (6,476)          629       (4,934)           --       (5,399)

 Discontinued operations:
 (Loss) income from discontinued operations
 before tax expense                                        --            --           --            --           --
      Income tax benefit                                   --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------
   (Loss) income on discontinued operations                --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------
 Net (loss) income                                     (6,476)          629       (4,934)           --       (5,399)
                                                   ==========    ==========   ==========    ==========   ==========
</TABLE>

<TABLE>
<CAPTION>
                                                    MERISTAR      MERISTAR     MERISTAR      MERISTAR   MERISTAR SUB
                                                     SUB 7E,       SUB 3D,      SUB 1A,       SUB 5E,     7A JOINT
                                                      LLC           LLC          LLC           LLC         VENTURE
                                                   ----------    ----------   ----------    ----------  ------------
<S>                                                <C>           <C>          <C>           <C>         <C>
 Revenue:
    Hotel operations:
       Rooms                                               --            --           --            --           --
       Food and beverage                                   --            --           --            --           --
       Other hotel operations                              --            --           --            --           --
    Office rental, parking and other revenues              --             1           --            --           --
 Participating lease revenue                              673           726          895         2,940          571
                                                   ----------    ----------   ----------    ----------   ----------
Total revenue                                             673           727          895         2,940          571
                                                   ----------    ----------   ----------    ----------   ----------
Hotel operating expenses:
       Rooms                                               --            --           --            --           --
       Food and beverage                                   --            --           --            --           --
       Other hotel operating expenses                      --            --           --            --           --
    Office rental, parking and other expenses              --            --           --            --           --
Other operating expenses:
       General and administrative                          --            --           --            --           --
       Property operating costs                            --            --           --            --           --
       Depreciation and amortization                      309           392          225           962          215
       Loss on asset impairments                           --            --           --            --        5,478
       Property taxes, insurance and other                 99           117          210           201           93
                                                   ----------    ----------   ----------    ----------   ----------
 Operating expenses                                       408           509          435         1,163        5,786
                                                   ----------    ----------   ----------    ----------   ----------
 Operating (loss) income                                  265           218          460         1,777       (5,215)
 Interest expense, net                                     --            --           --            --           --
 Equity in income from consolidated entities               --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------
 (Loss) income before minority interests, income
   tax benefit, and discontinued operations               265           218          460         1,777       (5,215)
 Minority interests                                        --            --           --            --           --
 Income tax benefit                                        --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------

 (Loss) income from continuing operations                 265           218          460         1,777       (5,215)

 Discontinued operations:
 (Loss) income from discontinued operations
 before tax expense                                        --            --           --            --           --
      Income tax benefit                                   --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------
   (Loss) income on discontinued operations                --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------
 Net (loss) income                                        265           218          460         1,777       (5,215)
                                                   ==========    ==========   ==========    ==========   ==========
</TABLE>

<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2003
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                    MERISTAR      MERISTAR     MERISTAR      MERISTAR     MERISTAR
                                                     SUB 6K,       SUB 2B,      SUB 3A,       SUB 4A,      SUB 4D,
                                                      LLC           LLC          LLC           LLC          LLC
                                                   ----------    ----------   ----------    ----------   ----------
<S>                                                <C>           <C>          <C>           <C>          <C>
 Revenue:
    Hotel operations:
       Rooms                                               --            --           --            --           --
       Food and beverage                                   --            --           --            --           --
       Other hotel operations                              --            --           --            --           --
    Office rental, parking and other revenues              --            --           --            --           --
 Participating lease revenue                            2,040           214          282           511           --
                                                   ----------    ----------   ----------    ----------   ----------
Total revenue                                           2,040           214          282           511           --
                                                   ----------    ----------   ----------    ----------   ----------
Hotel operating expenses:
       Rooms                                               --            --           --            --           --
       Food and beverage                                   --            --           --            --           --
       Other hotel operating expenses                      --            --           --            --           --
    Office rental, parking and other expenses              --            --           --            --           --
Other operating expenses:
       General and administrative                          --            --           --            --           --
       Property operating costs                            --            --           --            --           --
       Depreciation and amortization                      370           213          131            --           --
       Loss on asset impairments                           --         4,670        1,497         1,455           --
       Property taxes, insurance and other                191            74           53           157           --
                                                   ----------    ----------   ----------    ----------   ----------
 Operating expenses                                       561         4,957        1,681         1,612           --
                                                   ----------    ----------   ----------    ----------   ----------
 Operating (loss) income                                1,479        (4,743)      (1,399)       (1,101)          --
 Interest expense, net                                     --           228           --            --           --
 Equity in income from consolidated entities               --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------
 (Loss) income before minority interests, income
   tax benefit, and discontinued operations             1,479        (4,971)      (1,399)       (1,101)          --
 Minority interests                                        --            --           --            --           --
 Income tax benefit                                        --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------

 (Loss) income from continuing operations               1,479        (4,971)      (1,399)       (1,101)          --

 Discontinued operations:
 (Loss) income from discontinued operations
 before tax expense                                        --            --           --            --         (939)
      Income tax benefit                                   --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------
   (Loss) income on discontinued operations                --            --           --            --         (939)
                                                   ----------    ----------   ----------    ----------   ----------
 Net (loss) income                                      1,479        (4,971)      (1,399)       (1,101)        (939)
                                                   ==========    ==========   ==========    ==========   ==========
</TABLE>

<TABLE>
<CAPTION>
                                                    MERISTAR      MERISTAR       MDV         MERISTAR     MERISTAR
                                                     SUB 2A,       SUB 6L,      LIMITED       SUB 5C,      SUB 6J,
                                                      LLC           LLC       PARTNERSHIP      LLC          LLC
                                                   ----------    ----------   -----------   ----------   ----------
<S>                                                <C>           <C>          <C>           <C>          <C>
 Revenue:
    Hotel operations:
       Rooms                                               --            --           --            --           --
       Food and beverage                                   --            --           --            --           --
       Other hotel operations                              --            --           --            --           --
    Office rental, parking and other revenues              --            --           --            --           --
 Participating lease revenue                              237           759          253           614        1,051
                                                   ----------    ----------   ----------    ----------   ----------
Total revenue                                             237           759          253           614        1,051
                                                   ----------    ----------   ----------    ----------   ----------
Hotel operating expenses:
       Rooms                                               --            --           --            --           --
       Food and beverage                                   --            --           --            --           --
       Other hotel operating expenses                      --            --           --            --           --
    Office rental, parking and other expenses              --            --           --            --           --
Other operating expenses:
       General and administrative                          --            --           --            --           --
       Property operating costs                            --            --           --            --           --
       Depreciation and amortization                      164           445           69           289          302
       Loss on asset impairments                        2,828        13,286           --         7,187           --
       Property taxes, insurance and other                 94           109           70           207          130
                                                   ----------    ----------   ----------    ----------   ----------
 Operating expenses                                     3,086        13,840          139         7,683          432
                                                   ----------    ----------   ----------    ----------   ----------
 Operating (loss) income                               (2,849)      (13,081)         114        (7,069)         619
 Interest expense, net                                    372            --           --            --           (2)
 Equity in income from consolidated entities               --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------
 (Loss) income before minority interests, income
   tax benefit, and discontinued operations            (3,221)      (13,081)         114        (7,069)         621
 Minority interests                                        --            --           --            --           --
 Income tax benefit                                        --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------

 (Loss) income from continuing operations              (3,221)      (13,081)         114        (7,069)         621

 Discontinued operations:
 (Loss) income from discontinued operations
 before tax expense                                        --            --           --            --           --
      Income tax benefit                                   --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------
   (Loss) income on discontinued operations                --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------
 Net (loss) income                                     (3,221)      (13,081)         114        (7,069)         621
                                                   ==========    ==========   ==========    ==========   ==========
</TABLE>

<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2003
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                    MERISTAR      MERISTAR     MERISTAR      MERISTAR     MERISTAR
                                                     SUB 1D,       SUB 7B,      SUB 7D,       SUB 7G,      SUB 6B,
                                                      L.P.          L.P.         LLC           LLC          LLC
                                                   ----------    ----------   ----------    ----------   ----------
<S>                                                <C>           <C>          <C>           <C>          <C>
 Revenue:
    Hotel operations:
       Rooms                                               --            --           --            --           --
       Food and beverage                                   --            --           --            --           --
       Other hotel operations                              --            --           --            --           --
    Office rental, parking and other revenues               6            --           --            --           --
 Participating lease revenue                            2,429           803        3,665           300          550
                                                   ----------    ----------   ----------    ----------   ----------
Total revenue                                           2,435           803        3,665           300          550
                                                   ----------    ----------   ----------    ----------   ----------
Hotel operating expenses:
       Rooms                                               --            --           --            --           --
       Food and beverage                                   --            --           --            --           --
       Other hotel operating expenses                      --            --           --            --           --
    Office rental, parking and other expenses              47            --          190            --           --
Other operating expenses:
       General and administrative                          25            --          177            --           --
       Property operating costs                            --            --           --            --           --
       Depreciation and amortization                    1,148           342          862           308          232
       Loss on asset impairments                           --        10,288           --         7,416           --
       Property taxes, insurance and other                835           364        1,125           107          100
                                                   ----------    ----------   ----------    ----------   ----------
 Operating expenses                                     2,055        10,994        2,354         7,831          332
                                                   ----------    ----------   ----------    ----------   ----------
 Operating (loss) income                                  380       (10,191)       1,311        (7,531)         218
 Interest expense, net                                     --            --           --            --           --
 Equity in income from consolidated entities               --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------
 (Loss) income before minority interests, income
   tax benefit, and discontinued operations               380       (10,191)       1,311        (7,531)         218
 Minority interests                                        --            --           --            --           --
 Income tax benefit                                        --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------

 (Loss) income from continuing operations                 380       (10,191)       1,311        (7,531)         218

 Discontinued operations:
 (Loss) income from discontinued operations
 before tax expense                                        --            --           --            --           --
      Income tax benefit                                   --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------
   (Loss) income on discontinued operations                --            --           --            --           --

                                                   ----------    ----------   ----------    ----------   ----------
 Net (loss) income                                        380       (10,191)       1,311        (7,531)         218
                                                   ==========    ==========   ==========    ==========   ==========
</TABLE>

<TABLE>
<CAPTION>
                                                    MERISTAR      MERISTAR     MERISTAR      MERISTAR       AGH
                                                     SUB 4I,       SUB 5D,      SUB 5H,       SUB 7H,      PSS I,
                                                      L.P.          LLC          LLC           LLC          INC.
                                                   ----------    ----------   ----------    ----------   ----------
<S>                                                <C>           <C>          <C>           <C>          <C>
 Revenue:
    Hotel operations:
       Rooms                                               --            --           --            --           --
       Food and beverage                                   --            --           --            --           --
       Other hotel operations                              --            --           --            --           --
    Office rental, parking and other revenues              --            --           --            --           --
 Participating lease revenue                               40         1,024        2,151           647        1,160
                                                   ----------    ----------   ----------    ----------   ----------
Total revenue                                              40         1,024        2,151           647        1,160
                                                   ----------    ----------   ----------    ----------   ----------
Hotel operating expenses:
       Rooms                                               --            --           --            --           --
       Food and beverage                                   --            --           --            --           --
       Other hotel operating expenses                      --            --           --            --           --
    Office rental, parking and other expenses              --            --           --            --           --
Other operating expenses:
       General and administrative                          --            --           --            --           --
       Property operating costs                            --            --           --            --           --
       Depreciation and amortization                      145           730        1,010            97           --
       Loss on asset impairments                        1,259            --       18,075         1,383        1,787
       Property taxes, insurance and other                120           112          434           253          269
                                                   ----------    ----------   ----------    ----------   ----------
 Operating expenses                                     1,524           842       19,519         1,733        2,056
                                                   ----------    ----------   ----------    ----------   ----------
 Operating (loss) income                               (1,484)          182      (17,368)       (1,086)        (896)
 Interest expense, net                                     --           644           --            --           --
 Equity in income from consolidated entities               --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------
 (Loss) income before minority interests, income
   tax benefit, and discontinued operations            (1,484)         (462)     (17,368)       (1,086)        (896)
 Minority interests                                        --            --           --            --           --
 Income tax benefit                                        --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------
 (Loss) income from continuing operations              (1,484)         (462)     (17,368)       (1,086)        (896)

 Discontinued operations:
 (Loss) income from discontinued operations
 before tax expense                                        --            --           --            --           --
      Income tax benefit                                   --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------
   (Loss) income on discontinued operations                --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------
 Net (loss) income                                     (1,484)         (462)     (17,368)       (1,086)        (896)
                                                   ==========    ==========   ==========    ==========   ==========
</TABLE>


<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2003
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                    MERISTAR      MERISTAR     MERISTAR      MERISTAR     MERISTAR
                                                     SUB 2D,       SUB 4F,      SUB 5K,       SUB 5M,      SUB 1E,
                                                      LLC           L.P.         LLC           LLC          L.P.
                                                   ----------    ----------   ----------    ----------   ----------
<S>                                                <C>           <C>          <C>           <C>          <C>
 Revenue:
    Hotel operations:
       Rooms                                               --            --           --            --           --
       Food and beverage                                   --            --           --            --           --
       Other hotel operations                              --            --           --            --           --
    Office rental, parking and other revenues              --             7           --            --           --
 Participating lease revenue                              577           981        1,259           976          781
                                                   ----------    ----------   ----------    ----------   ----------
Total revenue                                             577           988        1,259           976          781
                                                   ----------    ----------   ----------    ----------   ----------
Hotel operating expenses:
       Rooms                                               --            --           --            --           --
       Food and beverage                                   --            --           --            --           --
       Other hotel operating expenses                      --            --           --            --           --
    Office rental, parking and other expenses              --            --           --            --           --
Other operating expenses:
       General and administrative                          --            --           --            --           --
       Property operating costs                            --            --           --            --           --
       Depreciation and amortization                      234           556          644           236          158
       Loss on asset impairments                        8,685            --           --            --           --
       Property taxes, insurance and other                140           173          187           131           85
                                                   ----------    ----------   ----------    ----------   ----------
 Operating expenses                                     9,059           729          831           367          243
                                                   ----------    ----------   ----------    ----------   ----------
 Operating (loss) income                               (8,482)          259          428           609          538
 Interest expense, net                                    431            --           --            --           --
 Equity in income from consolidated entities               --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------
 (Loss) income before minority interests, income
   tax benefit, and discontinued operations            (8,913)          259          428           609          538
 Minority interests                                        --            --           --            --           --
 Income tax benefit                                        --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------

 (Loss) income from continuing operations              (8,913)          259          428           609          538

 Discontinued operations:
 (Loss) income from discontinued operations
 before tax expense                                        --            --           --            --           --
      Income tax benefit                                   --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------
   (Loss) income on discontinued operations                --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------
 Net (loss) income                                     (8,913)          259          428           609          538
                                                   ==========    ==========   ==========    ==========   ==========
</TABLE>

<TABLE>
<CAPTION>
                                                    MERISTAR      MERISTAR     MERISTAR      MERISTAR     MERISTAR
                                                     SUB 5O,       SUB 6M       SUB 4B,       SUB 6C,      SUB 2C,
                                                      LLC          COMPANY       L.P.          LLC          LLC
                                                   ----------    ----------   ----------    ----------   ----------
<S>                                                <C>           <C>          <C>           <C>          <C>
 Revenue:
    Hotel operations:
       Rooms                                               --            --           --            --           --
       Food and beverage                                   --            --           --            --           --
       Other hotel operations                              --            --           --            --           --
    Office rental, parking and other revenues              --            --           --             5           32
 Participating lease revenue                              440         2,077           92         1,402          749
                                                   ----------    ----------   ----------    ----------   ----------
Total revenue                                             440         2,077           92         1,407          781
                                                   ----------    ----------   ----------    ----------   ----------
Hotel operating expenses:
       Rooms                                               --            --           --            --           --
       Food and beverage                                   --            --           --            --           --
       Other hotel operating expenses                      --            --           --            --           --
    Office rental, parking and other expenses              --            --           --            --           --
Other operating expenses:
       General and administrative                          --            --           --            --           --
       Property operating costs                            --            --           --            --           --
       Depreciation and amortization                      114           616          268           387          512
       Loss on asset impairments                           --            --          264            --       15,255
       Property taxes, insurance and other                 52           165          132           112          266
                                                   ----------    ----------   ----------    ----------   ----------
 Operating expenses                                       166           781          664           499       16,033
                                                   ----------    ----------   ----------    ----------   ----------
 Operating (loss) income                                  274         1,296         (572)          908      (15,252)
 Interest expense, net                                     --            --           --            --          754
 Equity in income from consolidated entities               --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------
 (Loss) income before minority interests, income
   tax benefit, and discontinued operations               274         1,296         (572)          908      (16,006)
 Minority interests                                        --            --           --            --           --
 Income tax benefit                                        --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------

 (Loss) income from continuing operations                 274         1,296         (572)          908      (16,006)

 Discontinued operations:
 (Loss) income from discontinued operations
 before tax expense                                        --            --           --            --           --
      Income tax benefit                                   --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------
   (Loss) income on discontinued operations                --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------
 Net (loss) income                                        274         1,296         (572)          908      (16,006)
                                                   ==========    ==========   ==========    ==========   ==========
</TABLE>


<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2003
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                    MERISTAR      MERISTAR     MERISTAR      MERISTAR     MERISTAR
                                                     SUB 4G,       SUB 3B,      SUB 5G,       SUB 5P,      SUB 5J,
                                                      L.P.          LLC          L.P.          LLC          LLC
                                                   ----------    ----------   ----------    ----------   ----------
<S>                                                <C>           <C>          <C>           <C>          <C>
 Revenue:
    Hotel operations:
       Rooms                                               --            --           --            --           --
       Food and beverage                                   --            --           --            --           --
       Other hotel operations                              --            --           --            --           --
    Office rental, parking and other revenues              --            --           25            --           --
 Participating lease revenue                            1,026            --        5,323           686        5,369
                                                   ----------    ----------   ----------    ----------   ----------
Total revenue                                           1,026            --        5,348           686        5,369
                                                   ----------    ----------   ----------    ----------   ----------
Hotel operating expenses:
       Rooms                                               --            --           --            --           --
       Food and beverage                                   --            --           --            --           --
       Other hotel operating expenses                      --            --           --            --           --
    Office rental, parking and other expenses              --            --           --            --           --
Other operating expenses:
       General and administrative                          --            --           --            --           --
       Property operating costs                            --            --           --            --           --
       Depreciation and amortization                      448            --        3,145             2        1,741
       Loss on asset impairments                        8,000            --           --            --           --
       Property taxes, insurance and other                319            --          955             4          739
                                                   ----------    ----------   ----------    ----------   ----------
 Operating expenses                                     8,767            --        4,100             6        2,480
                                                   ----------    ----------   ----------    ----------   ----------
 Operating (loss) income                               (7,741)           --        1,248           680        2,889
 Interest expense, net                                     --            --           --            --            3
 Equity in income from consolidated entities               --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------
 (Loss) income before minority interests, income
   tax benefit, and discontinued operations            (7,741)           --        1,248           680        2,886
 Minority interests                                        --            --           --            --           --
 Income tax benefit                                        --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------

 (Loss) income from continuing operations              (7,741)           --        1,248           680        2,886

 Discontinued operations:
 (Loss) income from discontinued operations
 before tax expense                                        --          (883)          --            --           --
      Income tax benefit                                   --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------
   (Loss) income on discontinued operations                --          (883)          --            --           --
                                                   ----------    ----------   ----------    ----------   ----------
 Net (loss) income                                     (7,741)         (883)       1,248           680        2,886
                                                   ==========    ==========   ==========    ==========   ==========
</TABLE>

<TABLE>
<CAPTION>
                                                    MERISTAR      MERISTAR     MERISTAR      MERISTAR     MERISTAR
                                                     SUB 5Q,       SUB 5R,      SUB 8D,       SUB 4J,      HOTEL
                                                      LLC           LLC          LLC           LLC      LESSEE, INC.
                                                   ----------    ----------   ----------    ----------  ------------
<S>                                                <C>           <C>          <C>           <C>         <C>
 Revenue:
    Hotel operations:
       Rooms                                               --            --           --            --      319,610
       Food and beverage                                   --            --           --            --      130,196
       Other hotel operations                              --            --           --            --       40,402
    Office rental, parking and other revenues              --            56           --             3           --
 Participating lease revenue                            1,198         2,881        1,190         1,630           --
                                                   ----------    ----------   ----------    ----------   ----------
Total revenue                                           1,198         2,937        1,190         1,633      490,208
                                                   ----------    ----------   ----------    ----------   ----------
Hotel operating expenses:
       Rooms                                               --            --           --            --       77,902
       Food and beverage                                   --            --           --            --       93,042
       Other hotel operating expenses                      --            --           --            --       23,835
    Office rental, parking and other expenses              --            --           --           162           --
Other operating expenses:
       General and administrative                          --            --            6            48       78,154
       Property operating costs                            --            --           --            --       74,115
       Depreciation and amortization                      280           771          627           643          532
       Loss on asset impairments                           --            --           --            --           --
       Property taxes, insurance and other                109           355          219           160      148,680
                                                   ----------    ----------   ----------    ----------   ----------
 Operating expenses                                       389         1,126          852         1,013      496,260
                                                   ----------    ----------   ----------    ----------   ----------
 Operating (loss) income                                  809         1,811          338           620       (6,052)
 Interest expense, net                                     --         1,417           --            --          982
 Equity in income from consolidated entities               --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------
 (Loss) income before minority interests, income
   tax benefit, and discontinued operations               809           394          338           620       (7,034)
 Minority interests                                        --            --           --            --           --
 Income tax benefit                                        --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------

 (Loss) income from continuing operations                 809           394          338           620       (7,034)

 Discontinued operations:
 (Loss) income from discontinued operations
 before tax expense                                        --            --           --            --         (386)
      Income tax benefit                                   --            --           --            --           --
                                                   ----------    ----------   ----------    ----------   ----------
   (Loss) income on discontinued operations                --            --           --            --         (386)
                                                   ----------    ----------   ----------    ----------   ----------
 Net (loss) income                                        809           394          338           620       (7,420)
                                                   ==========    ==========   ==========    ==========   ==========
</TABLE>

<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2003
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                      GUARANTOR
                                                    SUBSIDIARIES                       TOTAL
                                                       TOTAL        ELIMINATIONS    CONSOLIDATED
                                                    ------------    ------------    ------------
<S>                                                 <C>             <C>             <C>
 Revenue:
    Hotel operations:                                                                        --
       Rooms                                            319,610              --         319,610
       Food and beverage                                130,196              --         130,196
       Other hotel operations                            40,402              --          40,402
    Office rental, parking and other revenues               159              --           6,756
 Participating lease revenue                             72,205        (135,869)             --
                                                     ----------      ----------      ----------
Total revenue                                           562,572        (135,869)        496,964
                                                     ----------      ----------      ----------

Hotel operating expenses:
       Rooms                                             77,902              --          77,902
       Food and beverage                                 93,042              --          93,042
       Other hotel operating expenses                    23,835              --          23,835
    Office rental, parking and other expenses               399              --           1,213
Other operating expenses:
       General and administrative                        78,410              --          84,301
       Property operating costs                          74,115              --          74,116
       Depreciation and amortization                     27,534              --          57,985
       Loss on asset impairments                        142,692              --         262,608
       Property taxes, insurance and other              161,992        (135,869)         40,509
                                                     ----------      ----------      ----------
 Operating expenses                                     679,921        (135,869)        715,511
                                                     ----------      ----------      ----------

 Operating (loss) income                               (117,349)             --        (218,547)
 Interest expense, net                                    4,841              --          69,565
 Equity in income from consolidated entities                 --        (230,202)             --
                                                     ----------      ----------      ----------
 (Loss) income before minority interests, income
   tax benefit, and discontinued operations            (122,190)        230,202        (288,112)
 Minority interests                                          --              --              (6)
 Income tax benefit                                          --              --             127
                                                     ----------      ----------      ----------

 (Loss) income from continuing operations              (122,190)        230,202        (287,991)

 Discontinued operations:
 (Loss) income from discontinued operations
 before tax expense                                      (2,208)             --          (1,864)
      Income tax benefit                                     --              --              (2)
                                                     ----------      ----------      ----------
   (Loss) income on discontinued operations              (2,208)             --          (1,866)
                                                     ----------      ----------      ----------
 Net (loss) income                                     (124,398)        230,202        (289,857)
                                                     ==========      ==========      ==========
</TABLE>
<PAGE>
 MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
 CONSOLIDATING STATEMENT OF OPERATIONS
 SIX MONTHS ENDED JUNE 30, 2002
 (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                            MERISTAR            NON-         MERISTAR         AGH        MERISTAR
                                                           HOSPITALITY       GUARANTOR        SUB 7C,        UPREIT,      SUB 5N,
                                                             OP, L.P.       SUBSIDIARIES        LLC            LLC         LLC
                                                           -----------      ------------     --------        -------     ---------
<S>                                                        <C>              <C>              <C>             <C>         <C>
 Revenue:
    Hotel operations:
       Rooms                                                        --                --             --             --           --
       Food and beverage                                            --                --             --             --           --
       Other hotel operations                                       --                --             --             --           --
    Office rental, parking and other revenue                     3,538             2,673             --             --           --
    Participating lease revenue                                     --            66,334             --             --          563
                                                               -------           -------        -------        -------      -------
Total revenue                                                    3,538            69,007             --             --          563
                                                               -------           -------        -------        -------      -------

Hotel operating expenses:
       Rooms                                                        --                --             --             --           --
       Food and beverage                                            --                --             --             --           --
       Other hotel operating expenses                               --                --             --             --           --
    Office rental, parking and other expenses                       --               562             --             --           --
Other operating expenses:
       General and administrative                                5,150                14             --             --           --
       Property operating costs                                   (454)               (1)            --             --           --
       Depreciation and amortization                             6,689            24,938             --             --           66
       Property taxes, insurance and other                      (1,931)            9,104             --             --           53
       Change in fair value of non-hedging derivatives,
         net of swap payments                                    3,079                --             --             --           --
       Loss on fair value of non-hedging derivatives             4,735                --             --             --           --
                                                               -------           -------        -------        -------      -------
Operating expenses                                              17,268            34,617             --             --          119
                                                               -------           -------        -------        -------      -------

 Operating (loss) income                                       (13,730)           34,390             --             --          444
       Interest expense, net                                    52,076            13,974             --             --           (3)
       Equity in income from consolidated entities             (58,834)               --             --             --           --
                                                               -------           -------        -------        -------      -------
       (Loss) before minority interests, income
            tax benefit, and discontinued operations            (6,972)           20,416             --             --          447
       Minority interests                                           (8)               --             --             --           --
       Income tax benefit                                          214                --             --             --           --
                                                               -------           -------        -------        -------      -------

       (Loss) income from continuing operations                 (6,766)           20,416             --             --          447

    Discontinued operations:
       (Loss) income from discontinued operations
         before tax expense                                         --             2,080             --             --           --
            Income tax expense                                     (55)               --             --             --           --
                                                               -------           -------        -------        -------      -------
       (Loss) income from discontinued operations                  (55)            2,080             --             --           --

                                                               -------           -------        -------        -------      -------
       Net (loss) income                                        (6,821)           22,496             --             --          447
                                                               =======           =======        =======        =======      =======
</TABLE>

<TABLE>
<CAPTION>
                                                              MERISTAR          MERISTAR         AGH
                                                               SUB 8A,           SUB 8F,      SECAUCUS,
                                                                LLC               L.P.           LLC
                                                              --------          --------      ---------
<S>                                                           <C>               <C>           <C>
 Revenue:
    Hotel operations:
       Rooms                                                        --                --             --
       Food and beverage                                            --                --             --
       Other hotel operations                                       --                --             --
    Office rental, parking and other revenue                        --                --             --
    Participating lease revenue                                     --             1,141             --
                                                                ------            ------         ------
Total revenue                                                       --             1,141             --
                                                                ------            ------         ------

Hotel operating expenses:
       Rooms                                                        --                --             --
       Food and beverage                                            --                --             --
       Other hotel operating expenses                               --                --             --
    Office rental, parking and other expenses                       --                --             --
Other operating expenses:
       General and administrative                                   --                 1             --
       Property operating costs                                     --                --             --
       Depreciation and amortization                                --               226             --
       Property taxes, insurance and other                          --               376             --
       Change in fair value of non-hedging derivatives,
         net of swap payments                                       --                --             --
       Loss on fair value of non-hedging derivatives                --                --             --
                                                                ------            ------         ------
Operating expenses                                                  --               603             --
                                                                ------            ------         ------

 Operating (loss) income                                            --               538             --
       Interest expense, net                                        --                (4)            --
       Equity in income from consolidated entities                  --                --             --
                                                                ------            ------         ------
       (Loss) before minority interests, income
            tax benefit, and discontinued operations                --               542             --
       Minority interests                                           --                --             --
       Income tax benefit                                           --                --             --
                                                                ------            ------         ------

       (Loss) income from continuing operations                     --               542             --

    Discontinued operations:
       (Loss) income from discontinued operations
         before tax expense                                        507                --             --
            Income tax expense                                      --                --             --
                                                                ------            ------         ------
       (Loss) income from discontinued operations                  507                --             --

                                                                ------            ------         ------
       Net (loss) income                                           507               542             --
                                                                ======            ======         ======
</TABLE>
<PAGE>

 MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
 CONSOLIDATING STATEMENT OF OPERATIONS
 SIX MONTHS ENDED JUNE 30, 2002
 (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                               MERISTAR       MERISTAR         MERISTAR        MERISTAR
                                                                SUB 6H,        SUB 8B,          SUB 1C,         SUB 8E,
                                                                 L.P.            LLC             L.P.            LLC
                                                               --------       --------         --------        --------
<S>                                                            <C>            <C>              <C>             <C>
 Revenue:
    Hotel operations:
       Rooms                                                        --             --               --             --
       Food and beverage                                            --             --               --             --
       Other hotel operations                                       --             --               --             --
    Office rental, parking and other revenue                        --             --               --             15
    Participating lease revenue                                    791          3,873              814            807
                                                                ------         ------           ------         ------
Total revenue                                                      791          3,873              814            822
                                                                ------         ------           ------         ------

Hotel operating expenses:
       Rooms                                                        --             --               --             --
       Food and beverage                                            --             --               --             --
       Other hotel operating expenses                               --             --               --             --
    Office rental, parking and other expenses                       --             --               --             --
Other operating expenses:
       General and administrative                                    1             --                3             --
       Property operating costs                                     --             --               --             --
       Depreciation and amortization                               215          1,190              514            296
       Property taxes, insurance and other                          49            716              400             91
       Change in fair value of non-hedging derivatives,
         net of swap payments                                       --             --               --             --
       Loss on fair value of non-hedging derivatives                --             --               --             --
                                                                ------         ------           ------         ------
Operating expenses                                                 265          1,906              917            387
                                                                ------         ------           ------         ------

 Operating (loss) income                                           526          1,967             (103)           435
       Interest expense, net                                        (1)           (39)             (21)            (5)
       Equity in income from consolidated entities                  --             --               --             --
                                                                ------         ------           ------         ------
       (Loss) before minority interests, income
            tax benefit, and discontinued operations               527          2,006              (82)           440
       Minority interests                                           --             --               --             --
       Income tax benefit                                           --             --               --             --
                                                                ------         ------           ------         ------

       (Loss) income from continuing operations                    527          2,006              (82)           440

    Discontinued operations:
       (Loss) income from discontinued operations
         before tax expense                                         --             --               --             --
            Income tax expense                                      --             --               --             --
                                                                ------         ------           ------         ------
       (Loss) income from discontinued operations                   --             --               --             --

                                                                ------         ------           ------         ------
       Net (loss) income                                           527          2,006              (82)           440
                                                                ======         ======           ======         ======
</TABLE>

<TABLE>
<CAPTION>
                                                             MERISTAR       MERISTAR       MERISTAR         MERISTAR       MERISTAR
                                                              SUB 7F,        SUB 5L,        SUB 3C,          SUB 5R,        SUB 5A,
                                                               LLC            LLC            LLC              LLC            LLC
                                                             --------       --------       --------         --------       --------
<S>                                                          <C>            <C>            <C>              <C>            <C>
 Revenue:
    Hotel operations:
       Rooms                                                       --             --             --               --             --
       Food and beverage                                           --             --             --               --             --
       Other hotel operations                                      --             --             --               --             --
    Office rental, parking and other revenue                       --             --             --               --             --
    Participating lease revenue                                   596            611            989               --             --
                                                                 ----           ----           ----             ----           ----
Total revenue                                                     596            611            989               --             --
                                                                 ----           ----           ----             ----           ----

Hotel operating expenses:
       Rooms                                                       --             --             --               --             --
       Food and beverage                                           --             --             --               --             --
       Other hotel operating expenses                              --             --             --               --             --
    Office rental, parking and other expenses                      --             --             --               --             --
Other operating expenses:
       General and administrative                                  --             --             --               --             --
       Property operating costs                                    --             --             --               --             --
       Depreciation and amortization                              233             67            353               --             --
       Property taxes, insurance and other                         70             60            226               --             --
       Change in fair value of non-hedging derivatives,
         net of swap payments                                      --             --             --               --             --
       Loss on fair value of non-hedging derivatives               --             --             --               --             --
                                                                 ----           ----           ----             ----           ----
Operating expenses                                                303            127            579               --             --
                                                                 ----           ----           ----             ----           ----

 Operating (loss) income                                          293            484            410               --             --
       Interest expense, net                                       (5)            (4)           (10)              --             --
       Equity in income from consolidated entities                 --             --             --               --             --
                                                                 ----           ----           ----             ----           ----
       (Loss) before minority interests, income
            tax benefit, and discontinued operations              298            488            420               --             --
       Minority interests                                          --             --             --               --             --
       Income tax benefit                                          --             --             --               --             --
                                                                 ----           ----           ----             ----           ----

       (Loss) income from continuing operations                   298            488            420               --             --

    Discontinued operations:
       (Loss) income from discontinued operations
         before tax expense                                        --             --             --               --             --
            Income tax expense                                     --             --             --               --             --
                                                                 ----           ----           ----             ----           ----
       (Loss) income from discontinued operations                  --             --             --               --             --

                                                                 ----           ----           ----             ----           ----
       Net (loss) income                                          298            488            420               --             --
                                                                 ====           ====           ====             ====           ====
</TABLE>
<PAGE>

 MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
 CONSOLIDATING STATEMENT OF OPERATIONS
 SIX MONTHS ENDED JUNE 30, 2002
 (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                              MERISTAR     MERISTAR         MERISTAR       MERISTAR         MERISTAR
                                                               SUB 8A,      SUB 6D,          SUB 6E,        SUB 4E,          SUB 1B,
                                                                LLC          LLC              LLC            L.P.             LLC
                                                              --------     --------         --------       --------         --------
<S>                                                           <C>          <C>              <C>            <C>              <C>
 Revenue:
    Hotel operations:
       Rooms                                                       --             --             --             --               --
       Food and beverage                                           --             --             --             --               --
       Other hotel operations                                      --             --             --             --               --
    Office rental, parking and other revenue                       --             10             --              7              569
    Participating lease revenue                                    --          1,153          2,926            699            1,185
                                                               ------         ------         ------         ------           ------
Total revenue                                                      --          1,163          2,926            706            1,754
                                                               ------         ------         ------         ------           ------

Hotel operating expenses:
       Rooms                                                       --             --             --             --               --
       Food and beverage                                           --             --             --             --               --
       Other hotel operating expenses                              --             --             --             --               --
    Office rental, parking and other expenses                      --             --             --             --               --
Other operating expenses:
       General and administrative                                  --             --             --             --               --
       Property operating costs                                    --             --             --             --               --
       Depreciation and amortization                               --            266            849            459              316
       Property taxes, insurance and other                         --             90            415            195               79
       Change in fair value of non-hedging derivatives,
         net of swap payments                                      --             --             --             --               --
       Loss on fair value of non-hedging derivatives               --             --             --             --               --
                                                               ------         ------         ------         ------           ------
Operating expenses                                                 --            356          1,264            654              395
                                                               ------         ------         ------         ------           ------

 Operating (loss) income                                           --            807          1,662             52            1,359
       Interest expense, net                                       --            (13)           (28)           (13)              (8)
       Equity in income from consolidated entities                 --             --             --             --               --
                                                               ------         ------         ------         ------           ------
       (Loss) before minority interests, income
            tax benefit, and discontinued operations               --            820          1,690             65            1,367
       Minority interests                                          --             --             --             --               --
       Income tax benefit                                          --             --             --             --               --
                                                               ------          ------           ---         ------           ------

       (Loss) income from continuing operations                    --             820         1,690             65            1,367

    Discontinued operations:
       (Loss) income from discontinued operations
         before tax expense                                        --              --            --             --               --
            Income tax expense                                     --              --            --             --               --
                                                               ------          ------        ------         ------           ------
       (Loss) income from discontinued operations                  --              --            --             --               --

                                                               ------          ------        ------         ------           ------
       Net (loss) income                                           --             820         1,690             65            1,367
                                                               ======          ======        ======         ======           ======
</TABLE>

<TABLE>
<CAPTION>
                                                            MERISTAR         MERISTAR        MERISTAR        MERISTAR      MERISTAR
                                                              5F,             SUB 6G,         SUB 8C,         SUB 4C,       SUB 4H,
                                                              L.P.              LLC             LLC             L.P.          L.P.
                                                            --------         --------        --------        --------      --------
<S>                                                         <C>              <C>             <C>             <C>           <C>
 Revenue:
    Hotel operations:
       Rooms                                                     --               --              --              --            --
       Food and beverage                                         --               --              --              --            --
       Other hotel operations                                    --               --              --              --           --
    Office rental, parking and other revenue                     --               --               2              --            --
    Participating lease revenue                               1,531            1,376             973              --           349
                                                             ------           ------          ------          ------        ------
Total revenue                                                 1,531            1,376             975              --           349
                                                             ------           ------          ------          ------        ------

Hotel operating expenses:
       Rooms                                                     --               --              --              --            --
       Food and beverage                                         --               --              --              --            --
       Other hotel operating expenses                            --               --              --              --            --
    Office rental, parking and other expenses                    --               --              --              --            --
Other operating expenses:
       General and administrative                                 1               --              (1)             --            --
       Property operating costs                                  --               --              --              --            --
       Depreciation and amortization                            528              418             692              --           270
       Property taxes, insurance and other                      170              152             299              --            94
       Change in fair value of non-hedging derivatives,
         net of swap payments                                    --               --              --              --            --
       Loss on fair value of non-hedging derivatives             --               --              --              --            --
                                                             ------           ------          ------          ------        ------
Operating expenses                                              699              570             990              --           364
                                                             ------           ------          ------          ------        ------

 Operating (loss) income                                        832              806             (15)             --           (15)
       Interest expense, net                                    (17)             (22)            (21)             --            (4)
       Equity in income from consolidated entities               --               --              --              --            --
                                                             ------           ------          ------          ------        ------
       (Loss) before minority interests, income
            tax benefit, and discontinued operations            849              828               6              --           (11)
       Minority interests                                        --               --              --              --            --
       Income tax benefit                                        --               --              --              --            --
                                                             ------           ------          ------          ------        ------

       (Loss) income from continuing operations                 849              828               6              --           (11)

    Discontinued operations:
       (Loss) income from discontinued operations
         before tax expense                                      --               --              --              92            --
            Income tax expense                                   --               --              --              --            --
                                                             ------           ------          ------          ------        ------
       (Loss) income from discontinued operations                --               --              --              92            --

                                                             ------           ------          ------          ------        ------
       Net (loss) income                                        849              828               6              92           (11)
                                                             ======           ======          ======          ======        ======
</TABLE>
<PAGE>
 MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
 CONSOLIDATING STATEMENT OF OPERATIONS
 SIX MONTHS ENDED JUNE 30, 2002
 (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                              MERISTAR       MERISTAR       MERISTAR       MERISTAR       MERISTAR
                                                               SUB 7E,        SUB 3D,        SUB 1A,        SUB 5E,       7A JOINT
                                                                 LLC            LLC            LLC            LLC          VENTURE
                                                              --------       --------       --------       --------       --------
<S>                                                           <C>            <C>            <C>            <C>            <C>
 Revenue:
    Hotel operations:
       Rooms                                                       --             --             --             --             --
       Food and beverage                                           --             --             --             --             --
       Other hotel operations                                      --             --             --             --             --
    Office rental, parking and other revenue                       --             --             --             --             --
    Participating lease revenue                                   717          1,227            871          2,904            625
                                                               ------         ------         ------         ------         ------
Total revenue                                                     717          1,227            871          2,904            625
                                                               ------         ------         ------         ------         ------

Hotel operating expenses:
       Rooms                                                       --             --             --             --             --
       Food and beverage                                           --             --             --             --             --
       Other hotel operating expenses                              --             --             --             --             --
    Office rental, parking and other expenses                      --             --             --             --             --
Other operating expenses:
       General and administrative                                  --             --             --             --              1
       Property operating costs                                    --             --             --             --             --
       Depreciation and amortization                              315            451            232            969            208
       Property taxes, insurance and other                         79             81            163            195            111
       Change in fair value of non-hedging derivatives,
         net of swap payments                                      --             --             --             --             --
       Loss on fair value of non-hedging derivatives               --             --             --             --             --
                                                               ------         ------         ------         ------         ------
Operating expenses                                                394            532            395          1,164            320
                                                               ------         ------         ------         ------         ------

 Operating (loss) income                                          323            695            476          1,740            305
       Interest expense, net                                       (9)           (20)            (9)           (16)           (16)
       Equity in income from consolidated entities                 --             --             --             --             --
                                                               ------         ------         ------         ------         ------
       (Loss) before minority interests, income
            tax benefit, and discontinued operations              332            715            485          1,756            321
       Minority interests                                          --             --             --             --             --
       Income tax benefit                                          --             --             --             --             --
                                                               ------         ------         ------         ------         ------

       (Loss) income from continuing operations                   332            715            485          1,756            321

    Discontinued operations:
       (Loss) income from discontinued operations
         before tax expense                                        --             --             --             --             --
            Income tax expense                                     --             --             --             --             --
                                                               ------         ------         ------         ------         ------
       (Loss) income from discontinued operations                  --             --             --             --             --

                                                               ------         ------         ------         ------         ------
       Net (loss) income                                          332            715            485          1,756            321
                                                               ======         ======         ======         ======         ======
</TABLE>

<TABLE>
<CAPTION>
                                                             MERISTAR        MERISTAR       MERISTAR       MERISTAR       MERISTAR
                                                              SUB 6K,         SUB 2B,        SUB 3A,        SUB 4A,        SUB 4D,
                                                                LLC             LLC            LLC            LLC            LLC
                                                             --------        --------       ---------      --------       --------
<S>                                                          <C>             <C>            <C>            <C>            <C>
 Revenue:
    Hotel operations:
       Rooms                                                       --               --             --             --            --
       Food and beverage                                           --               --             --             --            --
       Other hotel operations                                      --               --             --             --            --
    Office rental, parking and other revenue                       --               --             --             --            --
    Participating lease revenue                                 2,045              271            265            497            --
                                                               ------           ------         ------         ------        ------
Total revenue                                                   2,045              271            265            497            --
                                                               ------           ------         ------         ------        ------

Hotel operating expenses:
       Rooms                                                       --               --             --             --            --
       Food and beverage                                           --               --             --             --            --
       Other hotel operating expenses                              --               --             --             --            --
    Office rental, parking and other expenses                      --               --             --             --            --
Other operating expenses:
       General and administrative                                  --               --             --             --            --
       Property operating costs                                    --               --             --             --            --
       Depreciation and amortization                              372              212            133             --            --
       Property taxes, insurance and other                        241               71             55            121            --
       Change in fair value of non-hedging derivatives,
         net of swap payments                                      --               --             --             --            --
       Loss on fair value of non-hedging derivatives               --               --             --             --            --
                                                               ------           ------         ------         ------        ------
Operating expenses                                                613              283            188            121            --
                                                               ------           ------         ------         ------        ------

 Operating (loss) income                                        1,432              (12)            77            376            --
       Interest expense, net                                      (18)             194            (18)           (17)           --
       Equity in income from consolidated entities                 --               --             --             --            --
                                                               ------           ------         ------         ------        ------
       (Loss) before minority interests, income
            tax benefit, and discontinued operations            1,450             (206)            95            393            --
       Minority interests                                          --               --             --             --            --
       Income tax benefit                                          --               --             --             --            --
                                                               ------           ------         ------         ------        ------

       (Loss) income from continuing operations                 1,450             (206)            95            393            --

    Discontinued operations:
       (Loss) income from discontinued operations
         before tax expense                                        --               --             --             --            10
            Income tax expense                                     --               --             --             --            --
                                                               ------           ------         ------         ------        ------
       (Loss) income from discontinued operations                  --               --             --             --            10

                                                               ------           ------         ------         ------        ------
       Net (loss) income                                        1,450             (206)            95            393            10
                                                               ======           ======         ======         ======        ======
</TABLE>
<PAGE>
 MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
 CONSOLIDATING STATEMENT OF OPERATIONS
 SIX MONTHS ENDED JUNE 30, 2002
 (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                MERISTAR       MERISTAR         MDV          MERISTAR       MERISTAR
                                                                 SUB 2A,        SUB 6L,       LIMITED         SUB 5C,        SUB 6J,
                                                                   LLC            LLC       PARTNERSHIP         LLC            LLC
                                                                --------       --------     -----------      ---------      --------
<S>                                                             <C>            <C>          <C>              <C>            <C>
 Revenue:
    Hotel operations:
       Rooms                                                         --             --             --             --             --
       Food and beverage                                             --             --             --             --             --
       Other hotel operations                                        --             --             --             --             --
    Office rental, parking and other revenue                         --             --             --             --             --
    Participating lease revenue                                     294            842            331            738          1,438
                                                                 ------         ------         ------         ------         ------
Total revenue                                                       294            842            331            738          1,438
                                                                 ------         ------         ------         ------         ------

Hotel operating expenses:
       Rooms                                                         --             --             --             --             --
       Food and beverage                                             --             --             --             --             --
       Other hotel operating expenses                                --             --             --             --             --
    Office rental, parking and other expenses                        --             --             --             --             --
Other operating expenses:
       General and administrative                                     2              1             --             --             --
       Property operating costs                                      --             --             --             --             --
       Depreciation and amortization                                159            445             68            298            322
       Property taxes, insurance and other                           75             98             65            208             93
       Change in fair value of non-hedging derivatives,
         net of swap payments                                        --             --             --             --             --
       Loss on fair value of non-hedging derivatives                 --             --             --             --             --
                                                                 ------         ------         ------         ------         ------
Operating expenses                                                  236            544            133            506            415
                                                                 ------         ------         ------         ------         ------

 Operating (loss) income                                             58            298            198            232          1,023
       Interest expense, net                                        341             (5)            (2)           (17)           (19)
       Equity in income from consolidated entities                   --             --             --             --             --
                                                                 ------         ------         ------         ------         ------
       (Loss) before minority interests, income
            tax benefit, and discontinued operations               (283)           303            200            249          1,042
       Minority interests                                            --             --             --             --             --
       Income tax benefit                                            --             --             --             --             --
                                                                 ------         ------         ------         ------         ------

       (Loss) income from continuing operations                    (283)           303            200            249          1,042

    Discontinued operations:
       (Loss) income from discontinued operations
         before tax expense                                          --             --             --             --             --
            Income tax expense                                       --             --             --             --             --
                                                                 ------         ------         ------         ------         ------
       (Loss) income from discontinued operations                    --             --             --             --             --

                                                                 ------         ------         ------         ------         ------
       Net (loss) income                                           (283)           303            200            249          1,042
                                                                 ======         ======         ======         ======         ======
</TABLE>

<TABLE>
<CAPTION>
                                                                MERISTAR       MERISTAR       MERISTAR       MERISTAR       MERISTAR
                                                                 SUB 1D,        SUB 7B,        SUB 7D,        SUB 7G,        SUB 6B,
                                                                   L.P.           L.P.           LLC            LLC            LLC
                                                                --------       --------       --------       --------       --------
<S>                                                             <C>              <C>          <C>              <C>            <C>
 Revenue:
    Hotel operations:
       Rooms                                                         --             --             --             --             --
       Food and beverage                                             --             --             --             --             --
       Other hotel operations                                        --             --             --             --             --
    Office rental, parking and other revenue                        215             --            672             --             --
    Participating lease revenue                                   2,660            781          2,774            292            649
                                                                 ------         ------         ------         ------         ------
Total revenue                                                     2,875            781          3,446            292            649
                                                                 ------         ------         ------         ------         ------

Hotel operating expenses:
       Rooms                                                         --             --             --             --             --
       Food and beverage                                             --             --             --             --             --
       Other hotel operating expenses                                --             --             --             --             --
    Office rental, parking and other expenses                        65             --            682             --             --
Other operating expenses:
       General and administrative                                    --              1             --             --             --
       Property operating costs                                      --             --             --             --             --
       Depreciation and amortization                              1,118            463            832            378            227
       Property taxes, insurance and other                          546            444          1,067            120            116
       Change in fair value of non-hedging derivatives,
         net of swap payments                                        --             --             --             --             --
       Loss on fair value of non-hedging derivatives                 --             --             --             --             --
                                                                 ------         ------         ------         ------         ------
Operating expenses                                                1,729            908          2,581            498            343
                                                                 ------         ------         ------         ------         ------

 Operating (loss) income                                          1,146           (127)           865           (206)           306
       Interest expense, net                                        (30)            (8)           (23)           (12)            (4)
       Equity in income from consolidated entities                   --             --             --             --             --
                                                                 ------         ------         ------         ------         ------
       (Loss) before minority interests, income
            tax benefit, and discontinued operations              1,176           (119)           888           (194)           310
       Minority interests                                            --             --             --             --             --
       Income tax benefit                                            --             --             --             --             --
                                                                 ------         ------         ------         ------         ------

       (Loss) income from continuing operations                   1,176           (119)           888           (194)           310

    Discontinued operations:
       (Loss) income from discontinued operations
         before tax expense                                          --             --             --             --             --
            Income tax expense                                       --             --             --             --             --
                                                                 ------         ------         ------         ------         ------
       (Loss) income from discontinued operations                    --             --             --             --             --

                                                                 ------         ------         ------         ------         ------
       Net (loss) income                                          1,176           (119)           888           (194)           310
                                                                 ======         ======         ======         ======         ======
</TABLE>
<PAGE>
 MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
 CONSOLIDATING STATEMENT OF OPERATIONS
 SIX MONTHS ENDED JUNE 30, 2002
 (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                MERISTAR       MERISTAR       MERISTAR       MERISTAR         AGH
                                                                 SUB 4I,        SUB 5D,        SUB 5H,        SUB 7H,        PSS I,
                                                                   L.P.           LLC            LLC            LLC           INC.
                                                                --------       --------       --------       --------        ------
<S>                                                             <C>            <C>            <C>            <C>             <C>
 Revenue:
    Hotel operations:
       Rooms                                                         --             --             --             --             --
       Food and beverage                                             --             --             --             --             --
       Other hotel operations                                        --             --             --             --             --
    Office rental, parking and other revenue                         --             --             --             --              2
    Participating lease revenue                                      39            992          1,970            629          1,403
                                                                 ------         ------         ------         ------         ------
Total revenue                                                        39            992          1,970            629          1,405
                                                                 ------         ------         ------         ------         ------

Hotel operating expenses:
       Rooms                                                         --             --             --             --             --
       Food and beverage                                             --             --             --             --             --
       Other hotel operating expenses                                --             --             --             --             --
    Office rental, parking and other expenses                        --             --             --             --             --
Other operating expenses:
       General and administrative                                    --             --             --             --             --
       Property operating costs                                      --             --             --             --             --
       Depreciation and amortization                                243            724            986            290             --
       Property taxes, insurance and other                          152            163            332            183            212
       Change in fair value of non-hedging derivatives,
         net of swap payments                                        --             --             --             --             --
       Loss on fair value of non-hedging derivatives                 --             --             --             --             --
                                                                 ------         ------         ------         ------         ------
Operating expenses                                                  395            887          1,318            473            212
                                                                 ------         ------         ------         ------         ------

 Operating (loss) income                                           (356)           105            652            156          1,193
       Interest expense, net                                        (20)           779            (40)           (10)           (22)
       Equity in income from consolidated entities                   --             --             --             --             --
                                                                 ------         ------         ------         ------         ------
       (Loss) before minority interests, income
            tax benefit, and discontinued operations               (336)          (674)           692            166          1,215
       Minority interests                                            --             --             --             --             --
       Income tax benefit                                            --             --             --             --             --
                                                                 ------         ------         ------         ------         ------

       (Loss) income from continuing operations                    (336)          (674)           692            166          1,215

    Discontinued operations:
       (Loss) income from discontinued operations
         before tax expense                                          --             --             --             --             --
            Income tax expense                                       --             --             --             --             --
                                                                 ------         ------         ------         ------         ------
       (Loss) income from discontinued operations                    --             --             --             --             --

                                                                 ------         ------         ------         ------         ------
       Net (loss) income                                           (336)          (674)           692            166          1,215
                                                                 ======         ======         ======         ======         ======
</TABLE>

<TABLE>
<CAPTION>
                                                                MERISTAR       MERISTAR       MERISTAR       MERISTAR       MERISTAR
                                                                 SUB 2D,        SUB 4F,        SUB 5K,        SUB 5M,        SUB 1E,
                                                                   LLC           L.P.            LLC            LLC            L.P.
                                                                --------       --------       --------       --------       --------
<S>                                                             <C>            <C>            <C>            <C>            <C>
 Revenue:
    Hotel operations:
       Rooms                                                         --             --             --             --             --
       Food and beverage                                             --             --             --             --             --
       Other hotel operations                                        --             --             --             --             --
    Office rental, parking and other revenue                         --              4             --             --             --
    Participating lease revenue                                     597            934          1,379          1,089            776
                                                                 ------         ------         ------         ------         ------
Total revenue                                                       597            938          1,379          1,089            776
                                                                 ------         ------         ------         ------         ------

Hotel operating expenses:
       Rooms                                                         --             --             --             --             --
       Food and beverage                                             --             --             --             --             --
       Other hotel operating expenses                                --             --             --             --             --
    Office rental, parking and other expenses                        --             --             --             --             --
Other operating expenses:
       General and administrative                                    --             --             --             --             --
       Property operating costs                                      --             --             --             --             --
       Depreciation and amortization                                237            560            594            226            150
       Property taxes, insurance and other                          115            186            151            150             73
       Change in fair value of non-hedging derivatives,
         net of swap payments                                        --             --             --             --             --
       Loss on fair value of non-hedging derivatives                 --             --             --             --             --
                                                                 ------         ------         ------         ------         ------
Operating expenses                                                  352            746            745            376            223
                                                                 ------         ------         ------         ------         ------

 Operating (loss) income                                            245            192            634            713            553
       Interest expense, net                                        392            (17)           (50)           (10)            (8)
       Equity in income from consolidated entities                   --             --             --             --             --
                                                                 ------         ------         ------         ------         ------
       (Loss) before minority interests, income
            tax benefit, and discontinued operations               (147)           209            684            723            561
       Minority interests                                            --             --             --             --             --
       Income tax benefit                                            --             --             --             --             --
                                                                 ------         ------         ------         ------         ------

       (Loss) income from continuing operations                    (147)           209            684            723            561

    Discontinued operations:
       (Loss) income from discontinued operations
         before tax expense                                          --             --             --             --             --
            Income tax expense                                       --             --             --             --             --
                                                                 ------         ------         ------         ------         ------
       (Loss) income from discontinued operations                    --             --             --             --             --

                                                                 ------         ------         ------         ------         ------
       Net (loss) income                                           (147)           209            684            723            561
                                                                 ======         ======         ======         ======         ======
</TABLE>
<PAGE>
 MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
 CONSOLIDATING STATEMENT OF OPERATIONS
 SIX MONTHS ENDED JUNE 30, 2002
 (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                MERISTAR       MERISTAR      MERISTAR        MERISTAR       MERISTAR
                                                                 SUB 5O,       SUB 6M         SUB 4B,         SUB 6C,        SUB 2C,
                                                                   LLC         COMPANY          L.P.            LLC            LLC
                                                                --------       --------      --------        --------       --------
<S>                                                             <C>            <C>           <C>             <C>            <C>
 Revenue:
    Hotel operations:
       Rooms                                                         --             --             --             --             --
       Food and beverage                                             --             --             --             --             --
       Other hotel operations                                        --             --             --             --             --
    Office rental, parking and other revenue                         --             --             --              8             28
    Participating lease revenue                                     482          2,216            106          1,546            762
                                                                 ------         ------         ------         ------         ------
Total revenue                                                       482          2,216            106          1,554            790
                                                                 ------         ------         ------         ------         ------

Hotel operating expenses:
       Rooms                                                         --             --             --             --             --
       Food and beverage                                             --             --             --             --             --
       Other hotel operating expenses                                --             --             --             --             --
    Office rental, parking and other expenses                        --             --             --             --             --
Other operating expenses:
       General and administrative                                    --             --             --             --             --
       Property operating costs                                      --             --             --             --             --
       Depreciation and amortization                                109            603            296            394            519
       Property taxes, insurance and other                           69            144            171            100            175
       Change in fair value of non-hedging derivatives,
         net of swap payments                                        --             --             --             --             --
       Loss on fair value of non-hedging derivatives                 --             --             --             --             --
                                                                 ------         ------         ------         ------         ------
Operating expenses                                                  178            747            467            494            694
                                                                 ------         ------         ------         ------         ------

 Operating (loss) income                                            304          1,469           (361)         1,060             96
       Interest expense, net                                         (4)           (11)          (122)           (18)           676
       Equity in income from consolidated entities                   --             --             --             --             --
                                                                 ------         ------         ------         ------         ------
       (Loss) before minority interests, income
            tax benefit, and discontinued operations                308          1,480           (239)         1,078           (580)
       Minority interests                                            --             --             --             --             --
       Income tax benefit                                            --             --             --             --             --
                                                                 ------         ------         ------         ------         ------

       (Loss) income from continuing operations                     308          1,480           (239)         1,078           (580)

    Discontinued operations:
       (Loss) income from discontinued operations
         before tax expense                                          --             --             --             --             --
            Income tax expense                                       --             --             --             --             --
                                                                 ------         ------         ------         ------         ------
       (Loss) income from discontinued operations                    --             --             --             --             --

                                                                 ------         ------         ------         ------         ------
       Net (loss) income                                            308          1,480           (239)         1,078           (580)
                                                                 ======         ======         ======         ======         ======
</TABLE>

<TABLE>
<CAPTION>
                                                                 MERISTAR       MERISTAR       MERISTAR       MERISTAR      MERISTAR
                                                                  SUB 4G,        SUB 3B,        SUB 5G,        SUB 5P,       SUB 5J,
                                                                   L.P.            LLC            L.P.           LLC           LLC
                                                                 --------       --------       --------       --------      --------
<S>                                                              <C>            <C>            <C>            <C>           <C>
 Revenue:
    Hotel operations:
       Rooms                                                          --             --             --             --            --
       Food and beverage                                              --             --             --             --            --
       Other hotel operations                                         --             --             --             --            --
    Office rental, parking and other revenue                          10             --             30             --            --
    Participating lease revenue                                    1,347             --          6,253            302         5,376
                                                                  ------         ------         ------         ------        ------
Total revenue                                                      1,357             --          6,283            302         5,376
                                                                  ------         ------         ------         ------        ------

Hotel operating expenses:
       Rooms                                                          --             --             --             --            --
       Food and beverage                                              --             --             --             --            --
       Other hotel operating expenses                                 --             --             --             --            --
    Office rental, parking and other expenses                         --             --             --             --            --
Other operating expenses:
       General and administrative                                     --             --              2             --            --
       Property operating costs                                       --             --             --             --            --
       Depreciation and amortization                                 458             --          3,095              1         1,733
       Property taxes, insurance and other                           249             --            921             18           910
       Change in fair value of non-hedging derivatives,
         net of swap payments                                         --             --             --             --            --
       Loss on fair value of non-hedging derivatives                  --             --             --             --            --
                                                                  ------         ------         ------         ------        ------
Operating expenses                                                   707             --          4,018             19         2,643
                                                                  ------         ------         ------         ------        ------

 Operating (loss) income                                             650             --          2,265            283         2,733
       Interest expense, net                                         (13)            --            (67)            --           (57)
       Equity in income from consolidated entities                    --             --             --             --            --
                                                                  ------         ------         ------         ------        ------
       (Loss) before minority interests, income
            tax benefit, and discontinued operations                 663             --          2,332            283         2,790
       Minority interests                                             --             --             --             --            --
       Income tax benefit                                             --             --             --             --            --
                                                                  ------         ------         ------         ------        ------

       (Loss) income from continuing operations                      663             --          2,332            283         2,790

    Discontinued operations:
       (Loss) income from discontinued operations
         before tax expense                                           --            (18)            --             --            --
            Income tax expense                                        --             --             --             --            --
                                                                  ------         ------         ------         ------        ------
       (Loss) income from discontinued operations                     --            (18)            --             --            --

                                                                  ------         ------         ------         ------        ------
       Net (loss) income                                             663            (18)         2,332            283         2,790
                                                                  ======         ======         ======         ======        ======
</TABLE>
<PAGE>
 MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
 CONSOLIDATING STATEMENT OF OPERATIONS
 SIX MONTHS ENDED JUNE 30, 2002
 (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                               MERISTAR       MERISTAR      MERISTAR       MERISTAR      MERISTAR
                                                                SUB 5Q,        SUB 5R,       SUB 8D,        SUB 4J,        HOTEL
                                                                  LLC            LLC           LLC            LLC       LESSEE, INC.
                                                               --------       --------      --------       --------     ------------
<S>                                                            <C>            <C>           <C>            <C>          <C>
 Revenue:
    Hotel operations:
       Rooms                                                         --             --            --             --        336,830
       Food and beverage                                             --             --            --             --        129,673
       Other hotel operations                                        --             --            --             --         39,298
    Office rental, parking and other revenue                         --             60            --            134            524
    Participating lease revenue                                   1,196          3,000         1,158          1,590           (523)
                                                               --------       --------      --------       --------       --------
Total revenue                                                     1,196          3,060         1,158          1,724        505,802
                                                               --------       --------      --------       --------       --------

Hotel operating expenses:
       Rooms                                                         --             --            --             --         78,085
       Food and beverage                                             --             --            --             --         91,515
       Other hotel operating expenses                                --             --            --             --         21,827
    Office rental, parking and other expenses                        --             --            --            188             --
Other operating expenses:
       General and administrative                                    --             --            --              4         78,981
       Property operating costs                                      --             --            --             --         74,454
       Depreciation and amortization                                240            690           634            671          1,083
       Property taxes, insurance and other                          140            301           207             15        157,303
       Change in fair value of non-hedging derivatives,
         net of swap payments                                        --             --            --             --             --
       Loss on fair value of non-hedging derivatives                 --             --            --             --             --
                                                               --------       --------      --------       --------       --------
Operating expenses                                                  380            991           841            878        503,248
                                                               --------       --------      --------       --------       --------

 Operating (loss) income                                            816          2,069           317            846          2,554
       Interest expense, net                                        (47)         1,384           (10)           (22)           (40)
       Equity in income from consolidated entities                   --             --            --             --             --
                                                               --------       --------      --------       --------       --------
       (Loss) before minority interests, income
            tax benefit, and discontinued operations                863            685           327            868          2,594
       Minority interests                                            --             --            --             --             --
       Income tax benefit                                            --             --            --             --             --
                                                               --------       --------      --------       --------       --------

       (Loss) income from continuing operations                     863            685           327            868          2,594

    Discontinued operations:
       (Loss) income from discontinued operations
         before tax expense                                          --             --            --             --           (411)
            Income tax expense                                       --             --            --             --             --
                                                               --------       --------      --------       --------       --------
       (Loss) income from discontinued operations                    --             --            --             --           (411)

                                                               --------       --------      --------       --------       --------
       Net (loss) income                                            863            685           327            868          2,183
                                                               ========       ========      ========       ========       ========
</TABLE>

<TABLE>
<CAPTION>
                                                                                 GUARANTOR
                                                                                SUBSIDIARIES                               TOTAL
                                                                                   TOTAL            ELIMINATIONS        CONSOLIDATED
                                                                                ------------        ------------        ------------
<S>                                                                             <C>                 <C>                 <C>
 Revenue:
    Hotel operations:
       Rooms                                                                       336,830                  --              336,830
       Food and beverage                                                           129,673                  --              129,673
       Other hotel operations                                                       39,298                  --               39,298
    Office rental, parking and other revenue                                         2,290                  --                8,501
    Participating lease revenue                                                     75,217            (141,551)                  --
                                                                                  --------            --------             --------
Total revenue                                                                      583,308            (141,551)             514,302
                                                                                  --------            --------             --------

Hotel operating expenses:
       Rooms                                                                        78,085                  --               78,085
       Food and beverage                                                            91,515                  --               91,515
       Other hotel operating expenses                                               21,827                  --               21,827
    Office rental, parking and other expenses                                          935                  --                1,497
Other operating expenses:
       General and administrative                                                   78,997                  --               84,161
       Property operating costs                                                     74,454                  --               73,999
       Depreciation and amortization                                                28,696                  --               60,323
       Property taxes, insurance and other                                         169,924            (141,551)              35,546
       Change in fair value of non-hedging derivatives,
         net of swap payments                                                           --                  --                3,079
       Loss on fair value of non-hedging derivatives                                    --                  --                4,735
                                                                                  --------            --------             --------
Operating expenses                                                                 544,433            (141,551)             454,767
                                                                                  --------            --------             --------

 Operating (loss) income                                                            38,875                  --               59,535
       Interest expense, net                                                         2,717                  --               68,767
       Equity in income from consolidated entities                                      --              58,834                   --
                                                                                  --------            --------             --------
       (Loss) before minority interests, income
            tax benefit, and discontinued operations                                36,158             (58,834)              (9,232)
       Minority interests                                                               --                  --                   (8)
       Income tax benefit                                                               --                  --                  214
                                                                                  --------            --------             --------

       (Loss) income from continuing operations                                     36,158             (58,834)              (9,026)

    Discontinued operations:
       (Loss) income from discontinued operations
         before tax expense                                                            180                  --                2,260
            Income tax expense                                                          --                  --                  (55)
                                                                                  --------            --------             --------
       (Loss) income from discontinued operations                                      180                  --                2,205

                                                                                  --------            --------             --------
       Net (loss) income                                                            36,338             (58,834)              (6,821)
                                                                                  ========            ========             ========
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING CASH FLOW
SIX MONTHS ENDED JUNE 30, 2003
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>

                                                                    MERISTAR         NON-       MERISTAR        AGH        MERISTAR
                                                                   HOSPITALITY    GUARANTOR      SUB 7C,      UPREIT,      SUB 5N,
                                                                    OP, L.P.     SUBSIDIARIES      LLC          LLC          LLC
                                                                   -----------   ------------  ----------   ----------   ----------
<S>                                                                <C>           <C>           <C>          <C>          <C>
Operating activities:

   Net (loss) income                                                 (289,857)     (105,804)           --           --          394
   Adjustments to reconcile net (loss) income to net cash
     provided by (used in) operating activities:
    Depreciation and amortization                                       5,072        25,558            --           --           69
    Loss on asset impairment                                               --       119,917            --           --           --
    Equity in earnings of affiliates                                  230,202            --            --           --           --
    Minority interests                                                      6            --            --           --           --
    Amortization of unearned stock based compensation                   1,433            --            --           --           --
    Unrealized gain on interest rate swaps recognized in net loss      (3,395)           --            --           --           --
    Deferred income taxes                                              (1,534)           --            --           --           --
    Changes in operating assets and liabilities:
     Accounts receivable, net                                          (2,792)          144            --           --           --
     Prepaid expenses and other                                         4,476            89            --           --           --
     Due from/to Interstate Hotels                                        724            (1)           --           --           --
     Due to/from subsidiaries                                          81,069       (41,235)           --           --         (465)
     Accounts payable, accrued expenses and other liabilities           4,348        (4,256)           --           --           15
                                                                   ----------    ----------    ----------   ----------   ----------
     Net cash provided by (used in) operating activities               29,752        (5,588)           --           --           13
                                                                   ----------    ----------    ----------   ----------   ----------

Investing activities:

   Investment in hotel properties                                        (503)       (3,061)           --           --          (13)
   Proceeds from sales of assets                                           --        12,650            --           --           --
   Purchases of marketable securities                                 (18,056)           --            --           --           --
   Net payments from (advances to) Interstate Hotels & Resorts         42,052            --            --           --           --
   Decrease in restricted cash                                         (9,692)          (48)           --           --           --
   Other, net                                                              --          (299)           --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
     Net cash provided by (used in) investing activities               13,801         9,242            --           --          (13)
                                                                   ----------    ----------    ----------   ----------   ----------

Financing activities:

   Principal payments on long-term debt                               (24,359)       (3,654)           --           --           --
   Distributions paid to partners                                        (141)           --            --           --           --
   Purchase of limited partnership unit                                   (65)           --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
     Net cash used in financing activities                            (24,565)       (3,654)           --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
Effect of exchange rate changes on cash                                  (115)           --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
NET CHANGE IN CASH                                                     18,873            --            --           --           --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                         21,372            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                               40,245            --            --           --           --
                                                                   ==========    ==========    ==========   ==========   ==========
</TABLE>

<TABLE>
<CAPTION>

                                                                    MERISTAR      MERISTAR      MERISTAR     MERISTAR     MERISTAR
                                                                     SUB 8A,       SUB 8F,       SUB 8G,      SUB 6H,      SUB 8B,
                                                                      LLC            L.P.          LLC         L.P.          LLC
                                                                   ----------    ----------    ----------   ----------   ----------
<S>                                                                <C>           <C>           <C>          <C>          <C>
Operating activities:

   Net (loss) income                                                       --           666            --          270        1,724
   Adjustments to reconcile net (loss) income to net cash
     provided by (used in) operating activities:
    Depreciation and amortization                                          --           261            --          252        1,220
    Loss on asset impairment                                               --            --            --           --           --
    Equity in earnings of affiliates                                       --            --            --           --           --
    Minority interests                                                     --            --            --           --           --
    Amortization of unearned stock based compensation                      --            --            --           --           --
    Unrealized gain on interest rate swaps recognized in net loss          --            --            --           --           --
    Deferred income taxes                                                  --            --            --           --           --
    Changes in operating assets and liabilities:
     Accounts receivable, net                                              --           (28)           --           --           --
     Prepaid expenses and other                                            --            (5)           --           (5)          --
     Due from/to Interstate Hotels                                         --            --            --           --           --
     Due to/from subsidiaries                                               1          (743)           --         (541)      (2,164)
     Accounts payable, accrued expenses and other liabilities              (1)         (130)           --           31          (44)
                                                                   ----------    ----------    ----------   ----------   ----------
     Net cash provided by (used in) operating activities                   --            21            --            7          736
                                                                   ----------    ----------    ----------   ----------   ----------

Investing activities:

   Investment in hotel properties                                          --           (21)           --           (7)        (736)
   Proceeds from sales of assets                                           --            --            --           --           --
   Purchases of marketable securities                                      --            --            --           --           --
   Net payments from (advances to) Interstate Hotels & Resorts             --            --            --           --           --
   Decrease in restricted cash                                             --            --            --           --           --
   Other, net                                                              --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
     Net cash provided by (used in) investing activities                   --           (21)           --           (7)        (736)
                                                                   ----------    ----------    ----------   ----------   ----------

Financing activities:

   Principal payments on long-term debt                                    --            --            --           --           --
   Distributions paid to partners                                          --            --            --           --           --
   Purchase of limited partnership unit                                    --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
     Net cash used in financing activities                                 --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
Effect of exchange rate changes on cash                                    --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
NET CHANGE IN CASH                                                         --            --            --           --           --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                             --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                   --            --            --           --           --
                                                                   ==========    ==========    ==========   ==========   ==========
</TABLE>

<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING CASH FLOW
SIX MONTHS ENDED JUNE 30, 2003
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                    MERISTAR      MERISTAR      MERISTAR     MERISTAR     MERISTAR
                                                                     SUB 1C,       SUB 8E,       SUB 7F,      SUB 5L,      SUB 3C,
                                                                       L.P           LLC           LLC          LLC          LLC
                                                                   ----------    ----------    ----------   ----------   ----------
<S>                                                                <C>           <C>           <C>          <C>          <C>
Operating activities:

  Net (loss) income                                                      (48)          335        (1,495)         415           416
   Adjustments to reconcile net (loss) income to net cash
     provided by (used in) operating activities:
    Depreciation and amortization                                         508           291           229           69          356
    Loss on asset impairment                                               --            --         1,637           --           --
    Equity in earnings of affiliates                                       --            --            --           --           --
    Minority interests                                                     --            --            --           --           --
    Amortization of unearned stock based compensation                      --            --            --           --           --
    Unrealized gain on interest rate swaps recognized in net loss          --            --            --           --           --
    Deferred income taxes                                                  --            --            --           --           --
    Changes in operating assets and liabilities:
     Accounts receivable, net                                              --            --            --           48           --
     Prepaid expenses and other                                           (17)           --            --           (6)          --
     Due from/to Interstate Hotels                                         --            --            --           --           --
     Due to/from subsidiaries                                            (223)         (543)         (358)        (430)        (698)
     Accounts payable, accrued expenses and other liabilities            (143)          (15)           20           (4)         (62)
                                                                   ----------    ----------    ----------   ----------   ----------
     Net cash provided by (used in) operating activities                   77            68            33           92           12
                                                                   ----------    ----------    ----------   ----------   ----------

Investing activities:

   Investment in hotel properties                                         (77)          (68)          (33)         (92)         (12)
   Proceeds from sales of assets                                           --            --            --           --           --
   Purchases of marketable securities                                      --            --            --           --           --
   Net payments from (advances to) Interstate Hotels & Resorts             --            --            --           --           --
   Decrease in restricted cash                                             --            --            --           --           --
   Other, net                                                              --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
     Net cash provided by (used in) investing activities                  (77)          (68)          (33)         (92)         (12)
                                                                   ----------    ----------    ----------   ----------   ----------

Financing activities:

   Principal payments on long-term debt                                    --            --            --           --           --
   Distributions paid to partners                                          --            --            --           --           --
   Purchase of limited partnership unit                                    --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
     Net cash used in financing activities                                 --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
Effect of exchange rate changes on cash                                    --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
NET CHANGE IN CASH                                                         --            --            --           --           --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                             --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                   --            --            --           --           --
                                                                   ==========    ==========    ==========   ==========   ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                    MERISTAR     MERISTAR      MERISTAR      MERISTAR     MERISTAR
                                                                     SUB 5R,      SUB 6D,       SUB 6E,       SUB 4E,      SUB 1B,
                                                                       LLC         LLC            LLC           L.P.         LLC
                                                                   ----------   ----------    ----------    ----------   ----------
<S>                                                                <C>          <C>           <C>           <C>          <C>
Operating activities:

   Net (loss) income                                                       --          539         1,647       (14,549)         887
   Adjustments to reconcile net (loss) income to net cash
     provided by (used in) operating activities:
    Depreciation and amortization                                          --          273           822           421          284
    Loss on asset impairment                                               --           --            --        14,611           --
    Equity in earnings of affiliates                                       --           --            --            --           --
    Minority interests                                                     --           --            --            --           --
    Amortization of unearned stock based compensation                      --           --            --            --           --
    Unrealized gain on interest rate swaps recognized in net loss          --           --            --            --           --
    Deferred income taxes                                                  --           --            --            --           --
    Changes in operating assets and liabilities:
     Accounts receivable, net                                              --           (5)           --            --           --
     Prepaid expenses and other                                            --           --            --            --          (36)
     Due from/to Interstate Hotels                                         --           --            --            --           --
     Due to/from subsidiaries                                              --         (801)       (2,298)         (129)      (1,031)
     Accounts payable, accrued expenses and other liabilities              --           (6)          (45)         (260)         (13)
                                                                   ----------   ----------    ----------    ----------   ----------
     Net cash provided by (used in) operating activities                   --           --           126            94           91
                                                                   ----------   ----------    ----------    ----------   ----------

Investing activities:

   Investment in hotel properties                                          --           --          (126)          (94)         (80)
   Proceeds from sales of assets                                           --           --            --            --           --
   Purchases of marketable securities                                      --           --            --            --           --
   Net payments from (advances to) Interstate Hotels & Resorts             --           --            --            --           --
   Decrease in restricted cash                                             --           --            --            --           --
   Other, net                                                              --           --            --            --           --
                                                                   ----------   ----------    ----------    ----------   ----------
     Net cash provided by (used in) investing activities                   --           --          (126)          (94)         (80)
                                                                   ----------   ----------    ----------    ----------   ----------

Financing activities:

   Principal payments on long-term debt                                    --           --            --            --          (11)
   Distributions paid to partners                                          --           --            --            --           --
   Purchase of limited partnership unit                                    --           --            --            --           --
                                                                   ----------   ----------    ----------    ----------   ----------
     Net cash used in financing activities                                 --           --            --            --          (11)
                                                                   ----------   ----------    ----------    ----------   ----------
Effect of exchange rate changes on cash                                    --           --            --            --           --
                                                                   ----------   ----------    ----------    ----------   ----------
NET CHANGE IN CASH                                                         --           --            --            --           --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                             --           --            --            --           --
                                                                   ----------   ----------    ----------    ----------   ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                   --           --            --            --           --
                                                                   ==========   ==========    ==========    ==========   ==========
</TABLE>


<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING CASH FLOW
SIX MONTHS ENDED JUNE 30, 2003
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                    MERISTAR      MERISTAR      MERISTAR     MERISTAR     MERISTAR
                                                                     SUB 5F,       SUB 6G,       SUB 8C,      SUB 4C,      SUB 4H,
                                                                      L.P.          LLC           LLC          L.P.         L.P.
                                                                   ----------    ----------    ----------   ----------   ----------
<S>                                                                <C>           <C>           <C>          <C>          <C>
Operating activities:

   Net (loss) income                                                   (6,476)          629        (4,934)          --       (5,399)
   Adjustments to reconcile net (loss) income to net cash
     provided by (used in) operating activities:
    Depreciation and amortization                                         534           430           377           --          264
    Loss on asset impairment                                            7,231            --         5,213           --        5,187
    Equity in earnings of affiliates                                       --            --            --           --           --
    Minority interests                                                     --            --            --           --           --
    Amortization of unearned stock based compensation                      --            --            --           --           --
    Unrealized gain on interest rate swaps recognized in net loss          --            --            --           --           --
    Deferred income taxes                                                  --            --            --           --           --
    Changes in operating assets and liabilities:
     Accounts receivable, net                                              --            --            --           --           14
     Prepaid expenses and other                                            --            --           (22)           5           (7)
     Due from/to Interstate Hotels                                         --            --            --           --           --
     Due to/from subsidiaries                                          (1,288)         (805)         (480)          --           94
     Accounts payable, accrued expenses and other liabilities              46          (150)         (145)          (5)         (61)
                                                                   ----------    ----------    ----------   ----------   ----------
     Net cash provided by (used in) operating activities                   47           104             9           --           92
                                                                   ----------    ----------    ----------   ----------   ----------

Investing activities:

   Investment in hotel properties                                         (47)         (104)           (9)          --          (92)
   Proceeds from sales of assets                                           --            --            --           --           --
   Purchases of marketable securities                                      --            --            --           --           --
   Net payments from (advances to) Interstate Hotels & Resorts             --            --            --           --           --
   Decrease in restricted cash                                             --            --            --           --           --
   Other, net                                                              --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
     Net cash provided by (used in) investing activities                  (47)         (104)           (9)          --          (92)
                                                                   ----------    ----------    ----------   ----------   ----------

Financing activities:

   Principal payments on long-term debt                                    --            --            --           --           --
   Distributions paid to partners                                          --            --            --           --           --
   Purchase of limited partnership unit                                    --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
     Net cash used in financing activities                                 --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
Effect of exchange rate changes on cash                                    --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
NET CHANGE IN CASH                                                         --            --            --           --           --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                             --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                   --            --            --           --           --
                                                                   ==========    ==========    ==========   ==========   ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                                                                          MERISTAR
                                                                    MERISTAR      MERISTAR      MERISTAR     MERISTAR      SUB 7A
                                                                     SUB 7E,      SUB 3D,       SUB 1A,      SUB 5E,       JOINT
                                                                      LLC           LLC           LLC          LLC        VENTURE
                                                                   ----------    ----------    ----------   ----------   ----------
<S>                                                                <C>           <C>           <C>          <C>          <C>
Operating activities:

   Net (loss) income                                                      265           218           460        1,777       (5,215)
   Adjustments to reconcile net (loss) income to net cash
     provided by (used in) operating activities:
    Depreciation and amortization                                         309           392           225          962          215
    Loss on asset impairment                                               --            --            --           --        5,478
    Equity in earnings of affiliates                                       --            --            --           --           --
    Minority interests                                                     --            --            --           --           --
    Amortization of unearned stock based compensation                      --            --            --           --           --
    Unrealized gain on interest rate swaps recognized in net loss          --            --            --           --           --
    Deferred income taxes                                                  --            --            --           --           --
    Changes in operating assets and liabilities:
     Accounts receivable, net                                              --            --            --           --           --
     Prepaid expenses and other                                            --            --            --           --           --
     Due from/to Interstate Hotels                                         --            --            --           --           --
     Due to/from subsidiaries                                            (495)         (556)         (499)      (2,846)        (314)
     Accounts payable, accrued expenses and other liabilities              15            54           (92)         156          (51)
                                                                   ----------    ----------    ----------   ----------   ----------
     Net cash provided by (used in) operating activities                   94           108            94           49          113
                                                                   ----------    ----------    ----------   ----------   ----------

Investing activities:

   Investment in hotel properties                                         (94)         (108)          (94)         (49)        (113)
   Proceeds from sales of assets                                           --            --            --           --           --
   Purchases of marketable securities                                      --            --            --           --           --
   Net payments from (advances to) Interstate Hotels & Resorts             --            --            --           --           --
   Decrease in restricted cash                                             --            --            --           --           --
   Other, net                                                              --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
     Net cash provided by (used in) investing activities                  (94)         (108)          (94)         (49)        (113)
                                                                   ----------    ----------    ----------   ----------   ----------

Financing activities:

   Principal payments on long-term debt                                    --            --            --           --           --
   Distributions paid to partners                                          --            --            --           --           --
   Purchase of limited partnership unit                                    --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
     Net cash used in financing activities                                 --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
Effect of exchange rate changes on cash                                    --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
NET CHANGE IN CASH                                                         --            --            --           --           --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                             --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                   --            --            --           --           --
                                                                   ==========    ==========    ==========   ==========   ==========
</TABLE>


<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING CASH FLOW
SIX MONTHS ENDED JUNE 30, 2003
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                    MERISTAR     MERISTAR      MERISTAR     MERISTAR      MERISTAR
                                                                    SUB 6K,      SUB 2B,       SUB 3A,      SUB 4A,        SUB 4D,
                                                                      LLC          LLC           LLC          LLC           LLC
                                                                   ----------   ----------    ----------   ----------    ----------
<S>                                                                <C>          <C>           <C>          <C>           <C>
Operating activities:

   Net (loss) income                                                    1,479       (4,971)       (1,399)      (1,101)         (939)
   Adjustments to reconcile net (loss) income to net cash
     provided by (used in) operating activities:
    Depreciation and amortization                                         370          213           131           --            55
    Loss on asset impairment                                               --        4,670         1,497        1,455         1,004
    Equity in earnings of affiliates                                       --           --            --           --            --
    Minority interests                                                     --           --            --           --            --
    Amortization of unearned stock based compensation                      --           --            --           --            --
    Unrealized gain on interest rate swaps recognized in net loss          --           --            --           --            --
    Deferred income taxes                                                  --           --            --           --            --
    Changes in operating assets and liabilities:
     Accounts receivable, net                                              --            2            --           --            --
     Prepaid expenses and other                                            --           --            (2)          --            (3)
     Due from/to Interstate Hotels                                         --           --            --           --            --
     Due to/from subsidiaries                                          (1,727)         632          (160)          (3)       (3,091)
     Accounts payable, accrued expenses and other liabilities            (113)          --           (44)        (118)           (5)
                                                                   ----------   ----------    ----------   ----------    ----------
     Net cash provided by (used in) operating activities                    9          546            23          233        (2,979)
                                                                   ----------   ----------    ----------   ----------    ----------

Investing activities:

   Investment in hotel properties                                          (9)        (546)          (23)        (233)          (91)
   Proceeds from sales of assets                                           --           --            --           --         3,070
   Purchases of marketable securities                                      --           --            --           --            --
   Net payments from (advances to) Interstate Hotels & Resorts             --           --            --           --            --
   Decrease in restricted cash                                             --           --            --           --            --
   Other, net                                                              --           --            --           --            --
                                                                   ----------   ----------    ----------   ----------    ----------
     Net cash provided by (used in) investing activities                   (9)        (546)          (23)        (233)        2,979
                                                                   ----------   ----------    ----------   ----------    ----------

Financing activities:

   Principal payments on long-term debt                                    --           --            --           --            --
   Distributions paid to partners                                          --           --            --           --            --
   Purchase of limited partnership unit                                    --           --            --           --            --
                                                                   ----------   ----------    ----------   ----------    ----------
     Net cash used in financing activities                                 --           --            --           --            --
                                                                   ----------   ----------    ----------   ----------    ----------
Effect of exchange rate changes on cash                                    --           --            --           --            --
                                                                   ----------   ----------    ----------   ----------    ----------
NET CHANGE IN CASH                                                         --           --            --           --            --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                             --           --            --           --            --
                                                                   ----------   ----------    ----------   ----------    ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                   --           --            --           --            --
                                                                   ==========   ==========    ==========   ==========    ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                     MERISTAR     MERISTAR        MDV        MERISTAR     MERISTAR
                                                                     SUB 2A,      SUB 6L,       LIMITED      SUB 5C,       SUB 6J,
                                                                       LLC           LLC      PARTNERSHIP      LLC           LLC
                                                                    ----------   ----------   ----------    ----------   ----------
<S>                                                                 <C>          <C>          <C>           <C>          <C>
Operating activities:

   Net (loss) income                                                    (3,221)     (13,081)         114        (7,069)         621
   Adjustments to reconcile net (loss) income to net cash
     provided by (used in) operating activities:
    Depreciation and amortization                                          164          445           69           289          302
    Loss on asset impairment                                             2,828       13,286           --         7,187           --
    Equity in earnings of affiliates                                        --           --           --            --           --
    Minority interests                                                      --           --           --            --           --
    Amortization of unearned stock based compensation                       --           --           --            --           --
    Unrealized gain on interest rate swaps recognized in net loss           --           --           --            --           --
    Deferred income taxes                                                   --           --           --            --           --
    Changes in operating assets and liabilities:
     Accounts receivable, net                                               (1)          --           --            --           --
     Prepaid expenses and other                                             --           (2)          --            26           --
     Due from/to Interstate Hotels                                          --           --           --            --           --
     Due to/from subsidiaries                                            1,153         (635)        (143)         (302)        (822)
     Accounts payable, accrued expenses and other liabilities              (79)          32          (32)          (51)         (67)
                                                                    ----------   ----------   ----------    ----------   ----------
     Net cash provided by (used in) operating activities                   844           45            8            80           34
                                                                    ----------   ----------   ----------    ----------   ----------

Investing activities:

   Investment in hotel properties                                         (844)         (45)          (8)          (80)         (34)
   Proceeds from sales of assets                                            --           --           --            --           --
   Purchases of marketable securities                                       --           --           --            --           --
   Net payments from (advances to) Interstate Hotels & Resorts              --           --           --            --           --
   Decrease in restricted cash                                              --           --           --            --           --
   Other, net                                                               --           --           --            --           --
                                                                    ----------   ----------   ----------    ----------   ----------
     Net cash provided by (used in) investing activities                  (844)         (45)          (8)          (80)         (34)
                                                                    ----------   ----------   ----------    ----------   ----------

Financing activities:

   Principal payments on long-term debt                                     --           --           --            --           --
   Distributions paid to partners                                           --           --           --            --           --
   Purchase of limited partnership unit                                     --           --           --            --           --
                                                                    ----------   ----------   ----------    ----------   ----------
     Net cash used in financing activities                                  --           --           --            --           --
                                                                    ----------   ----------   ----------    ----------   ----------
Effect of exchange rate changes on cash                                     --           --           --            --           --
                                                                    ----------   ----------   ----------    ----------   ----------
NET CHANGE IN CASH                                                          --           --           --            --           --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                              --           --           --            --           --
                                                                    ----------   ----------   ----------    ----------   ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                    --           --           --            --           --
                                                                    ==========   ==========   ==========    ==========   ==========
</TABLE>

<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING CASH FLOW
SIX MONTHS ENDED JUNE 30, 2003
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                    MERISTAR      MERISTAR      MERISTAR     MERISTAR     MERISTAR
                                                                     SUB 1D,      SUB 7B,       SUB 7D,      SUB 7G,      SUB 6B,
                                                                      L.P.          L.P.          LLC          LLC          LLC
                                                                   ----------    ----------    ----------   ----------   ----------
<S>                                                                <C>           <C>           <C>          <C>          <C>
Operating activities:

   Net (loss) income                                                      380       (10,191)        1,311       (7,531)         218
   Adjustments to reconcile net (loss) income to net cash
     provided by (used in) operating activities:
    Depreciation and amortization                                       1,148           342           862          308          232
    Loss on asset impairment                                               --        10,288            --        7,416           --
    Equity in earnings of affiliates                                       --            --            --           --           --
    Minority interests                                                     --            --            --           --           --
    Amortization of unearned stock based compensation                      --            --            --           --           --
    Unrealized gain on interest rate swaps recognized in net loss          --            --            --           --           --
    Deferred income taxes                                                  --            --            --           --           --
    Changes in operating assets and liabilities:
     Accounts receivable, net                                              --            --           182           --           --
     Prepaid expenses and other                                            --            --            --           --           --
     Due from/to Interstate Hotels                                         --            --            --           --           --
     Due to/from subsidiaries                                          (1,201)         (364)       (2,139)          (2)        (439)
     Accounts payable, accrued expenses and other liabilities            (241)          (37)         (169)        (132)          92
                                                                   ----------    ----------    ----------   ----------   ----------
     Net cash provided by (used in) operating activities                   86            38            47           59          103
                                                                   ----------    ----------    ----------   ----------   ----------

Investing activities:

   Investment in hotel properties                                         (86)          (38)          (47)         (59)        (103)
   Proceeds from sales of assets                                           --            --            --           --           --
   Purchases of marketable securities                                      --            --            --           --           --
   Net payments from (advances to) Interstate Hotels & Resorts             --            --            --           --           --
   Decrease in restricted cash                                             --            --            --           --           --
   Other, net                                                              --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
     Net cash provided by (used in) investing activities                  (86)          (38)          (47)         (59)        (103)
                                                                   ----------    ----------    ----------   ----------   ----------

Financing activities:

   Principal payments on long-term debt                                    --            --            --           --           --
   Distributions paid to partners                                          --            --            --           --           --
   Purchase of limited partnership unit                                    --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
     Net cash used in financing activities                                 --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
Effect of exchange rate changes on cash                                    --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
NET CHANGE IN CASH                                                         --            --            --           --           --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                             --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                   --            --            --           --           --
                                                                   ==========    ==========    ==========   ==========   ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                    MERISTAR      MERISTAR      MERISTAR     MERISTAR        AGH
                                                                     SUB 4I,      SUB 5D,       SUB 5H,      SUB 7H,       PSS I,
                                                                      L.P.           LLC          LLC          LLC          INC.
                                                                   ----------    ----------    ----------   ----------   ----------
<S>                                                                <C>           <C>           <C>          <C>          <C>
Operating activities:

   Net (loss) income                                                   (1,484)         (462)      (17,368)      (1,086)        (896)
   Adjustments to reconcile net (loss) income to net cash
     provided by (used in) operating activities:
    Depreciation and amortization                                         145           730         1,010           97           --
    Loss on asset impairment                                            1,259            --        18,075        1,383        1,787
    Equity in earnings of affiliates                                       --            --            --           --           --
    Minority interests                                                     --            --            --           --           --
    Amortization of unearned stock based compensation                      --            --            --           --           --
    Unrealized gain on interest rate swaps recognized in net loss          --            --            --           --           --
    Deferred income taxes                                                  --            --            --           --           --
    Changes in operating assets and liabilities:
     Accounts receivable, net                                              --            --            --           --           --
     Prepaid expenses and other                                            (8)           --            (1)          --           --
     Due from/to Interstate Hotels                                         --            --            --           --           --
     Due to/from subsidiaries                                             246          (254)       (1,676)        (354)        (932)
     Accounts payable, accrued expenses and other liabilities            (129)           13            43          (23)          88
                                                                   ----------    ----------    ----------   ----------   ----------
     Net cash provided by (used in) operating activities                   29            27            83           17           47
                                                                   ----------    ----------    ----------   ----------   ----------

Investing activities:

   Investment in hotel properties                                         (29)          (27)          (83)         (17)         (47)
   Proceeds from sales of assets                                           --            --            --           --           --
   Purchases of marketable securities                                      --            --            --           --           --
   Net payments from (advances to) Interstate Hotels & Resorts             --            --            --           --           --
   Decrease in restricted cash                                             --            --            --           --           --
   Other, net                                                              --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
     Net cash provided by (used in) investing activities                  (29)          (27)          (83)         (17)         (47)
                                                                   ----------    ----------    ----------   ----------   ----------

Financing activities:

   Principal payments on long-term debt                                    --            --            --           --           --
   Distributions paid to partners                                          --            --            --           --           --
   Purchase of limited partnership unit                                    --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
     Net cash used in financing activities                                 --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
Effect of exchange rate changes on cash                                    --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
NET CHANGE IN CASH                                                         --            --            --           --           --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                             --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                   --            --            --           --           --
                                                                   ==========    ==========    ==========   ==========   ==========
</TABLE>


<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING CASH FLOW
SIX MONTHS ENDED JUNE 30, 2003
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                    MERISTAR      MERISTAR      MERISTAR     MERISTAR     MERISTAR
                                                                    SUB 2D,       SUB 4F,       SUB 5K,      SUB 5M,      SUB 1E,
                                                                      LLC           L.P.          LLC          LLC          L.P.
                                                                   ----------    ----------    ----------   ----------   ----------
<S>                                                                <C>           <C>           <C>          <C>          <C>
Operating activities:

   Net (loss) income                                                   (8,913)          259           428          609          538
   Adjustments to reconcile net (loss) income to net cash
     provided by (used in) operating activities:
    Depreciation and amortization                                         234           556           644          236          158
    Loss on asset impairment                                            8,685            --            --           --           --
    Equity in earnings of affiliates                                       --            --            --           --           --
    Minority interests                                                     --            --            --           --           --
    Amortization of unearned stock based compensation                      --            --            --           --           --
    Unrealized gain on interest rate swaps recognized in net loss          --            --            --           --           --
    Deferred income taxes                                                  --            --            --           --           --
    Changes in operating assets and liabilities:
     Accounts receivable, net                                              (7)           --            --           --           --
     Prepaid expenses and other                                            --            --            --            2           --
     Due from/to Interstate Hotels                                         --            --            --           --           --
     Due to/from subsidiaries                                             968          (288)          159         (873)        (650)
     Accounts payable, accrued expenses and other liabilities            (158)         (189)       (1,171)          39          (27)
                                                                   ----------    ----------    ----------   ----------   ----------
     Net cash provided by (used in) operating activities                  809           338            60           13           19
                                                                   ----------    ----------    ----------   ----------   ----------

Investing activities:

   Investment in hotel properties                                        (809)         (338)          (60)         (13)         (19)
   Proceeds from sales of assets                                           --            --            --           --           --
   Purchases of marketable securities                                      --            --            --           --           --
   Net payments from (advances to) Interstate Hotels & Resorts             --            --            --           --           --
   Decrease in restricted cash                                             --            --            --           --           --
   Other, net                                                              --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
     Net cash provided by (used in) investing activities                 (809)         (338)          (60)         (13)         (19)
                                                                   ----------    ----------    ----------   ----------   ----------

Financing activities:

   Principal payments on long-term debt                                    --            --            --           --           --
   Distributions paid to partners                                          --            --            --           --           --
   Purchase of limited partnership unit                                    --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
     Net cash used in financing activities                                 --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
Effect of exchange rate changes on cash                                    --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
NET CHANGE IN CASH                                                         --            --            --           --           --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                             --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                   --            --            --           --           --
                                                                   ==========    ==========    ==========   ==========   ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                    MERISTAR     MERISTAR      MERISTAR      MERISTAR     MERISTAR
                                                                    SUB 5O,       SUB 6M       SUB 4B,       SUB 6C,      SUB 2C,
                                                                       LLC        COMPANY        L.P.          LLC          LLC
                                                                   ----------   ----------    ----------    ----------   ----------
<S>                                                                <C>          <C>           <C>           <C>          <C>
Operating activities:

   Net (loss) income                                                      274        1,296          (572)          908      (16,006)
   Adjustments to reconcile net (loss) income to net cash
     provided by (used in) operating activities:
    Depreciation and amortization                                         114          616           268           387          512
    Loss on asset impairment                                               --           --           264            --       15,255
    Equity in earnings of affiliates                                       --           --            --            --           --
    Minority interests                                                     --           --            --            --           --
    Amortization of unearned stock based compensation                      --           --            --            --           --
    Unrealized gain on interest rate swaps recognized in net loss          --           --            --            --           --
    Deferred income taxes                                                  --           --            --            --           --
    Changes in operating assets and liabilities:
     Accounts receivable, net                                              --           --            --            --           --
     Prepaid expenses and other                                            --           --            --            --           --
     Due from/to Interstate Hotels                                         --           --            --            --           --
     Due to/from subsidiaries                                            (401)      (2,032)          267        (1,280)       1,923
     Accounts payable, accrued expenses and other liabilities              19          136          (147)           41         (202)
                                                                   ----------   ----------    ----------    ----------   ----------
     Net cash provided by (used in) operating activities                    6           16            80            56        1,482
                                                                   ----------   ----------    ----------    ----------   ----------

Investing activities:

   Investment in hotel properties                                          (6)         (16)          (80)          (56)      (1,482)
   Proceeds from sales of assets                                           --           --            --            --           --
   Purchases of marketable securities                                      --           --            --            --           --
   Net payments from (advances to) Interstate Hotels & Resorts             --           --            --            --           --
   Decrease in restricted cash                                             --           --            --            --           --
   Other, net                                                              --           --            --            --           --
                                                                   ----------   ----------    ----------    ----------   ----------
     Net cash provided by (used in) investing activities                   (6)         (16)          (80)          (56)      (1,482)
                                                                   ----------   ----------    ----------    ----------   ----------

Financing activities:

   Principal payments on long-term debt                                    --           --            --            --           --
   Distributions paid to partners                                          --           --            --            --           --
   Purchase of limited partnership unit                                    --           --            --            --           --
                                                                   ----------   ----------    ----------    ----------   ----------
     Net cash used in financing activities                                 --           --            --            --           --
                                                                   ----------   ----------    ----------    ----------   ----------
Effect of exchange rate changes on cash                                    --           --            --            --           --
                                                                   ----------   ----------    ----------    ----------   ----------
NET CHANGE IN CASH                                                         --           --            --            --           --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                             --           --            --            --           --
                                                                   ----------   ----------    ----------    ----------   ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                   --           --            --            --           --
                                                                   ==========   ==========    ==========    ==========   ==========
</TABLE>

<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING CASH FLOW
SIX MONTHS ENDED JUNE 30, 2003
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                    MERISTAR      MERISTAR      MERISTAR     MERISTAR     MERISTAR
                                                                    SUB 4G,       SUB 3B,       SUB 5G,      SUB 5P,      SUB 5J,
                                                                      L.P.           LLC         L.P.           LLC          LLC
                                                                   ----------    ----------    ----------   ----------   ----------
<S>                                                                <C>           <C>           <C>          <C>          <C>
Operating activities:

   Net (loss) income                                                   (7,741)         (883)        1,248          680        2,886
   Adjustments to reconcile net (loss) income to net cash
     provided by (used in) operating activities:
    Depreciation and amortization                                         448           259         3,145            2        1,741
    Loss on asset impairment                                            8,000         1,064            --           --           --
    Equity in earnings of affiliates                                       --            --            --           --           --
    Minority interests                                                     --            --            --           --           --
    Amortization of unearned stock based compensation                      --            --            --           --           --
    Unrealized gain on interest rate swaps recognized in net loss          --            --            --           --           --
    Deferred income taxes                                                  --            --            --           --           --
    Changes in operating assets and liabilities:
     Accounts receivable, net                                              --            --            --           --           --
     Prepaid expenses and other                                            (3)          (11)           --           (8)          29
     Due from/to Interstate Hotels                                         --            --            --           --           --
     Due to/from subsidiaries                                            (405)         (475)       (4,374)        (678)      (3,043)
     Accounts payable, accrued expenses and other liabilities            (282)          (35)          373            4           25
                                                                   ----------    ----------    ----------   ----------   ----------
     Net cash provided by (used in) operating activities                   17           (81)          392           --        1,638
                                                                   ----------    ----------    ----------   ----------   ----------

Investing activities:

   Investment in hotel properties                                         (17)           81          (392)          --       (1,638)
   Proceeds from sales of assets                                           --            --            --           --           --
   Purchases of marketable securities                                      --            --            --           --           --
   Net payments from (advances to) Interstate Hotels & Resorts             --            --            --           --           --
   Decrease in restricted cash                                             --            --            --           --           --
   Other, net                                                              --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
     Net cash provided by (used in) investing activities                  (17)           81          (392)          --       (1,638)
                                                                   ----------    ----------    ----------   ----------   ----------

Financing activities:

   Principal payments on long-term debt                                    --            --            --           --           --
   Distributions paid to partners                                          --            --            --           --           --
   Purchase of limited partnership unit                                    --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
     Net cash used in financing activities                                 --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
Effect of exchange rate changes on cash                                    --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
NET CHANGE IN CASH                                                         --            --            --           --           --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                             --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                   --            --            --           --           --
                                                                   ==========    ==========    ==========   ==========   ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                                                                          MERISTAR
                                                                    MERISTAR      MERISTAR      MERISTAR     MERISTAR      HOTEL
                                                                    SUB 5Q,       SUB 5R,       SUB 8D,      SUB 4J,      LESSEE,
                                                                       LLC          LLC           LLC          LLC          INC.
                                                                   ----------    ----------    ----------   ----------   ----------
<S>                                                                <C>           <C>           <C>          <C>          <C>
Operating activities:

   Net (loss) income                                                      809           394           338          620       (7,420)
   Adjustments to reconcile net (loss) income to net cash
     provided by (used in) operating activities:
    Depreciation and amortization                                         280           771           627          643          532
    Loss on asset impairment                                               --            --            --           --           --
    Equity in earnings of affiliates                                       --            --            --           --           --
    Minority interests                                                     --            --            --           --           --
    Amortization of unearned stock based compensation                      --            --            --           --           --
    Unrealized gain on interest rate swaps recognized in net loss          --            --            --           --           --
    Deferred income taxes                                                  --            --            --           --           --
    Changes in operating assets and liabilities:
     Accounts receivable, net                                              --            --            --          (12)      (9,713)
     Prepaid expenses and other                                            --            --           (23)          --         (243)
     Due from/to Interstate Hotels                                         --            --            --           --       (5,298)
     Due to/from subsidiaries                                            (976)       (1,132)         (564)      (1,186)       5,031
     Accounts payable, accrued expenses and other liabilities              (2)          197           (15)         (43)      (2,273)
                                                                   ----------    ----------    ----------   ----------   ----------
     Net cash provided by (used in) operating activities                  111           230           363           22      (19,384)
                                                                   ----------    ----------    ----------   ----------   ----------

Investing activities:

   Investment in hotel properties                                        (111)         (230)         (363)         (22)        (894)
   Proceeds from sales of assets                                           --            --            --           --           --
   Purchases of marketable securities                                      --            --            --           --           --
   Net payments from (advances to) Interstate Hotels & Resorts             --            --            --           --           --
   Decrease in restricted cash                                             --            --            --           --           --
   Other, net                                                              --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
     Net cash provided by (used in) investing activities                 (111)         (230)         (363)         (22)        (894)
                                                                   ----------    ----------    ----------   ----------   ----------

Financing activities:

   Principal payments on long-term debt                                    --            --            --           --       23,816
   Distributions paid to partners                                          --            --            --           --           --
   Purchase of limited partnership unit                                    --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
     Net cash used in financing activities                                 --            --            --           --       23,816
                                                                   ----------    ----------    ----------   ----------   ----------
Effect of exchange rate changes on cash                                    --            --            --           --           --
                                                                   ----------    ----------    ----------   ----------   ----------
NET CHANGE IN CASH                                                         --            --            --           --        3,538

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                             --            --            --           --       12,517
                                                                   ----------    ----------    ----------   ----------   ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                   --            --            --           --       16,055
                                                                   ==========    ==========    ==========   ==========   ==========
</TABLE>

<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING CASH FLOW
SIX MONTHS ENDED JUNE 30, 2003
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                      GUARANTOR
                                                                     SUBSIDIARIES                        TOTAL
                                                                         TOTAL       ELIMINATIONS     CONSOLIDATED
                                                                     ------------    ------------     ------------
<S>                                                                  <C>             <C>              <C>
Operating activities:

   Net (loss) income                                                    (124,398)        230,202        (289,857)
   Adjustments to reconcile net (loss) income to net cash
     provided by (used in) operating activities:
    Depreciation and amortization                                         27,848              --          58,478
    Loss on asset impairment                                             144,760              --         264,677
    Equity in earnings of affiliates                                          --        (230,202)             --
    Minority interests                                                        --              --               6
    Amortization of unearned stock based compensation                         --              --           1,433
    Unrealized gain on interest rate swaps recognized in net loss             --              --          (3,395)
    Deferred income taxes                                                     --              --          (1,534)
    Changes in operating assets and liabilities:
     Accounts receivable, net                                             (9,520)             --         (12,168)
     Prepaid expenses and other                                             (340)             --           4,225
     Due from/to Interstate Hotels                                        (5,298)             --          (4,575)
     Due to/from subsidiaries                                            (39,834)             --              --
     Accounts payable, accrued expenses and other liabilities             (5,572)             --          (5,480)
                                                                      ----------      ----------      ----------
     Net cash provided by (used in) operating activities                 (12,354)             --          11,810
                                                                      ----------      ----------      ----------

Investing activities:

   Investment in hotel properties                                        (10,983)             --         (14,547)
   Proceeds from sales of assets                                           3,070              --          15,720
   Purchases of marketable securities                                         --              --         (18,056)
   Net payments from (advances to) Interstate Hotels & Resorts                --              --          42,052
   Decrease in restricted cash                                                --              --          (9,740)
   Other, net                                                                 --              --            (299)
                                                                      ----------      ----------      ----------
     Net cash provided by (used in) investing activities                  (7,913)             --          15,130
                                                                      ----------      ----------      ----------

Financing activities:

   Principal payments on long-term debt                                   23,805              --          (4,208)
   Distributions paid to partners                                             --              --            (141)
   Purchase of limited partnership unit                                       --              --             (65)
                                                                      ----------      ----------      ----------
     Net cash used in financing activities                                23,805              --          (4,414)
                                                                      ----------      ----------      ----------
Effect of exchange rate changes on cash                                       --              --            (115)
                                                                      ----------      ----------      ----------
NET CHANGE IN CASH                                                         3,538              --          22,411

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                            12,517              --          33,889
                                                                      ----------      ----------      ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                  16,055              --          56,300
                                                                      ==========      ==========      ==========
</TABLE>

<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2002
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                  MERISTAR        NON-        MERISTAR        AGH         MERISTAR
                                                                 HOSPITALITY   GUARANTOR       SUB 7C,       UPREIT,       SUB 5N,
                                                                   OP, L.P.   SUBSIDIARIES       LLC          LLC            LLC
                                                                 -----------  ------------   ----------    ----------    ----------
<S>                                                              <C>          <C>            <C>           <C>           <C>
Operating activities:

 Net (loss) income                                                   (6,821)       22,495            --            --           447
 Adjustments to reconcile net (loss) income to net cash
  provided by (used in) operating activities:
  Depreciation and amortization                                       6,689        26,862            --            --            66
  Equity in income from affiliates                                  (58,834)           --            --            --            --
  Loss on fair value of non-hedging derivatives                       4,735            --            --            --            --
  Minority interests                                                      8            --            --            --            --
  Amortization of unearned stock based compensation                   1,920            --            --            --            --
  Unrealized gain on interest rate swaps recognized in net loss      (2,905)           --            --            --            --
  Deferred income taxes                                                (332)           --            --            --            --
  Changes in operating assets and liabilities:
   Accounts receivable, net                                          (3,922)         (145)           --            --           (16)
   Prepaid expenses and other assets                                  4,016          (451)           --            --            --
   Due from/to Interstate Hotels & Resorts                             (557)           --            --            --            --
   Due from subsidiaries                                            349,453       (36,605)           --            --          (540)
   Accounts payable, accrued expenses and other liabilities           2,402        (2,668)           --            --            53
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) operating activities              295,852         9,488            --            --            10
                                                                 ----------    ----------    ----------    ----------    ----------

Investing activities:

 Investment in hotel properties                                        (523)       (9,580)           --            --           (10)
 Note receivable                                                     (2,545)          613            --            --            --
 Increase in restricted cash                                          2,375         2,009            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) investing activities                 (693)       (6,958)           --            --           (10)
                                                                 ----------    ----------    ----------    ----------    ----------

Financing activities:

 Principal payments on long-term debt                              (259,310)       (2,530)           --            --            --
 Proceeds from issuance of long-term debt                           (40,915)           --            --            --            --
 Deferred financing fees                                             (3,567)           --            --            --            --
 Contributions from partners                                          3,156            --            --            --            --
 Distributions paid to partners                                      (1,212)           --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) financing activities             (301,848)       (2,530)           --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------

Effect of exchange rate changes on cash                                 (28)           --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
NET CHANGE IN CASH                                                   (6,717)           --            --            --            --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                        6,798            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                 81            --            --            --            --
                                                                 ==========    ==========    ==========    ==========    ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                  MERISTAR      MERISTAR        AGH
                                                                   SUB 8A,       SUB 8F,      SECAUCUS,
                                                                     LLC           LLC          LLC
                                                                 ----------    ----------    ----------
<S>                                                              <C>           <C>           <C>
Operating activities:

 Net (loss) income                                                      507           542            --
 Adjustments to reconcile net (loss) income to net cash
  provided by (used in) operating activities:
  Depreciation and amortization                                         112           226            --
  Equity in income from affiliates                                       --            --            --
  Loss on fair value of non-hedging derivatives                          --            --            --
  Minority interests                                                     --            --            --
  Amortization of unearned stock based compensation                      --            --            --
  Unrealized gain on interest rate swaps recognized in net loss          --            --            --
  Deferred income taxes                                                  --            --            --
  Changes in operating assets and liabilities:
   Accounts receivable, net                                             (16)            8            --
   Prepaid expenses and other assets                                     --            19            --
   Due from/to Interstate Hotels & Resorts                               --            --            --
   Due from subsidiaries                                             (2,540)         (798)           --
   Accounts payable, accrued expenses and other liabilities              (1)           19            --
                                                                 ----------    ----------    ----------
   Net cash provided by (used in) operating activities               (1,938)           16            --
                                                                 ----------    ----------    ----------

Investing activities:

 Investment in hotel properties                                       1,938           (16)           --
 Note receivable                                                         --            --            --
 Increase in restricted cash                                             --            --            --
                                                                 ----------    ----------    ----------
   Net cash provided by (used in) investing activities                1,938           (16)           --
                                                                 ----------    ----------    ----------

Financing activities:

 Principal payments on long-term debt                                    --            --            --
 Proceeds from issuance of long-term debt                                --            --            --
 Deferred financing fees                                                 --            --            --
 Contributions from partners                                             --            --            --
 Distributions paid to partners                                          --            --            --
                                                                 ----------    ----------    ----------
   Net cash provided by (used in) financing activities                   --            --            --
                                                                 ----------    ----------    ----------

Effect of exchange rate changes on cash                                  --            --            --
                                                                 ----------    ----------    ----------
NET CHANGE IN CASH                                                       --            --            --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                           --            --            --
                                                                 ----------    ----------    ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                 --            --            --
                                                                 ==========    ==========    ==========
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2002
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                      MERISTAR      MERISTAR      MERISTAR
                                                                       SUB 6H,       SUB 8B,       SUB 1C,
                                                                        L.P.           LLC           L.P.
                                                                     ----------    ----------    ----------
<S>                                                                  <C>           <C>           <C>
Operating activities:

 Net (loss) income                                                          528         2,006           (81)
 Adjustments to reconcile net (loss) income to net cash
  provided by (used in) operating activities:
  Depreciation and amortization                                             215         1,190           514
  Equity in income from affiliates                                           --            --            --
  Loss on fair value of non-hedging derivatives                              --            --            --
  Minority interests                                                         --            --            --
  Amortization of unearned stock based compensation                          --            --            --
  Unrealized gain on interest rate swaps recognized in net loss              --            --            --
  Deferred income taxes                                                      --            --            --
  Changes in operating assets and liabilities:
   Accounts receivable, net                                                  --            --            --
   Prepaid expenses and other assets                                         --            --           (17)
   Due from/to Interstate Hotels & Resorts                                   --            --            --
   Due from subsidiaries                                                   (765)       (2,738)         (302)
   Accounts payable, accrued expenses and other liabilities                  33           293           102
                                                                     ----------    ----------    ----------
   Net cash provided by (used in) operating activities                       11           751           216
                                                                     ----------    ----------    ----------

Investing activities:

 Investment in hotel properties                                            (11)         (751)         (216)
 Note receivable                                                            --            --            --
 Increase in restricted cash                                                --            --            --
                                                                    ----------    ----------    ----------
   Net cash provided by (used in) investing activities                     (11)         (751)         (216)
                                                                    ----------    ----------    ----------

Financing activities:

 Principal payments on long-term debt                                       --            --            --
 Proceeds from issuance of long-term debt                                   --            --            --
 Deferred financing fees                                                    --            --            --
 Contributions from partners                                                --            --            --
 Distributions paid to partners                                             --            --            --
                                                                    ----------    ----------    ----------
   Net cash provided by (used in) financing activities                      --            --            --
                                                                    ----------    ----------    ----------

Effect of exchange rate changes on cash                                     --            --            --
                                                                    ----------    ----------    ----------
NET CHANGE IN CASH                                                          --            --            --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                              --            --            --
                                                                    ----------    ----------    ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                    --            --            --
                                                                    ==========    ==========    ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                  MERISTAR      MERISTAR      MERISTAR      MERISTAR      MERISTAR
                                                                   SUB 8E,       SUB 7F,       SUB 5L,       SUB 3C,       SUB 5R,
                                                                     LLC           LLC           LLC           LLC           LLC
                                                                 ----------    ----------    ----------    ----------    ----------
<S>                                                              <C>           <C>           <C>           <C>           <C>
Operating activities:

 Net (loss) income                                                      441           297           489           420            --
 Adjustments to reconcile net (loss) income to net cash
  provided by (used in) operating activities:
  Depreciation and amortization                                         296           233            67           353            --
  Equity in income from affiliates                                       --            --            --            --            --
  Loss on fair value of non-hedging derivatives                          --            --            --            --            --
  Minority interests                                                     --            --            --            --            --
  Amortization of unearned stock based compensation                      --            --            --            --            --
  Unrealized gain on interest rate swaps recognized in net loss          --            --            --            --            --
  Deferred income taxes                                                  --            --            --            --            --
  Changes in operating assets and liabilities:
   Accounts receivable, net                                              --            --            --            --            --
   Prepaid expenses and other assets                                     --            --            --            --            --
   Due from/to Interstate Hotels & Resorts                               --            --            --            --            --
   Due from subsidiaries                                               (674)         (497)         (565)         (798)           --
   Accounts payable, accrued expenses and other liabilities              (3)           (5)           81            54            --
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) operating activities                   60            28            72            29            --
                                                                 ----------    ----------    ----------    ----------    ----------

Investing activities:

 Investment in hotel properties                                         (60)          (28)          (72)          (29)           --
 Note receivable                                                         --            --            --            --            --
 Increase in restricted cash                                             --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) investing activities                  (60)          (28)          (72)          (29)           --
                                                                 ----------    ----------    ----------    ----------    ----------

Financing activities:

 Principal payments on long-term debt                                    --            --            --            --            --
 Proceeds from issuance of long-term debt                                --            --            --            --            --
 Deferred financing fees                                                 --            --            --            --            --
 Contributions from partners                                             --            --            --            --            --
 Distributions paid to partners                                          --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) financing activities                   --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------

Effect of exchange rate changes on cash                                  --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
NET CHANGE IN CASH                                                       --            --            --            --            --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                           --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                 --            --            --            --            --
                                                                 ==========    ==========    ==========    ==========    ==========
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2002
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                  MERISTAR      MERISTAR      MERISTAR      MERISTAR      MERISTAR
                                                                   SUB 8A,       SUB 6D,       SUB 6E,       SUB 4E,       SUB 1B,
                                                                     LLC           LLC           LLC          L.P.           LLC
                                                                 ----------    ----------    ----------    ----------    ----------
<S>                                                              <C>           <C>           <C>           <C>           <C>
Operating activities:

 Net (loss) income                                                       --           820         1,689            64         1,367
 Adjustments to reconcile net (loss) income to net cash
  provided by (used in) operating activities:
  Depreciation and amortization                                          --           266           849           459           316
  Equity in income from affiliates                                       --            --            --            --            --
  Loss on fair value of non-hedging derivatives                          --            --            --            --            --
  Minority interests                                                     --            --            --            --            --
  Amortization of unearned stock based compensation                      --            --            --            --            --
  Unrealized gain on interest rate swaps recognized in net loss          --            --            --            --            --
  Deferred income taxes                                                  --            --            --            --            --
  Changes in operating assets and liabilities:
   Accounts receivable, net                                              --           (37)           --            --            --
   Prepaid expenses and other assets                                      1            --            --            --            --
   Due from/to Interstate Hotels & Resorts                               --            --            --            --            --
   Due from subsidiaries                                                 46          (973)       (2,494)         (169)       (1,549)
   Accounts payable, accrued expenses and other liabilities             (46)           65           271          (241)           40
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) operating activities                    1           141           315           113           174
                                                                 ----------    ----------    ----------    ----------    ----------

Investing activities:

 Investment in hotel properties                                          (1)         (141)         (315)         (113)         (174)
 Note receivable                                                         --            --            --            --            --
 Increase in restricted cash                                             --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) investing activities                   (1)         (141)         (315)         (113)         (174)
                                                                 ----------    ----------    ----------    ----------    ----------

Financing activities:

 Principal payments on long-term debt                                    --            --            --            --            --
 Proceeds from issuance of long-term debt                                --            --            --            --            --
 Deferred financing fees                                                 --            --            --            --            --
 Contributions from partners                                             --            --            --            --            --
 Distributions paid to partners                                          --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) financing activities                   --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------

Effect of exchange rate changes on cash                                  --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
NET CHANGE IN CASH                                                       --            --            --            --            --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                           --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                 --            --            --            --            --
                                                                 ==========    ==========    ==========    ==========    ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                  MERISTAR      MERISTAR      MERISTAR      MERISTAR      MERISTAR
                                                                   SUB 5F,       SUB 6G,       SUB 8C,       SUB 4C,       SUB 4H,
                                                                     L.P.          LLC           LLC           L.P.          L.P.
                                                                 ----------    ----------    ----------    ----------    ----------
<S>                                                              <C>           <C>           <C>           <C>           <C>
Operating activities:

 Net (loss) income                                                      849           827             6            92           (11)
 Adjustments to reconcile net (loss) income to net cash
  provided by (used in) operating activities:
  Depreciation and amortization                                         528           418           692           283           270
  Equity in income from affiliates                                       --            --            --            --            --
  Loss on fair value of non-hedging derivatives                          --            --            --            --            --
  Minority interests                                                     --            --            --            --            --
  Amortization of unearned stock based compensation                      --            --            --            --            --
  Unrealized gain on interest rate swaps recognized in net loss          --            --            --            --            --
  Deferred income taxes                                                  --            --            --            --            --
  Changes in operating assets and liabilities:
   Accounts receivable, net                                              --            --            --            --            --
   Prepaid expenses and other assets                                     --            --            --            --            (7)
   Due from/to Interstate Hotels & Resorts                               --            --            --            --            --
   Due from subsidiaries                                             (1,342)       (1,137)         (573)         (205)         (112)
   Accounts payable, accrued expenses and other liabilities             227           161           (24)         (139)         (104)
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) operating activities                  262           269           101            31            36
                                                                 ----------    ----------    ----------    ----------    ----------

Investing activities:

 Investment in hotel properties                                        (262)         (269)         (101)          (31)          (36)
 Note receivable                                                         --            --            --            --            --
 Increase in restricted cash                                             --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) investing activities                 (262)         (269)         (101)          (31)          (36)
                                                                 ----------    ----------    ----------    ----------    ----------

Financing activities:

 Principal payments on long-term debt                                    --            --            --            --            --
 Proceeds from issuance of long-term debt                                --            --            --            --            --
 Deferred financing fees                                                 --            --            --            --            --
 Contributions from partners                                             --            --            --            --            --
 Distributions paid to partners                                          --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) financing activities                   --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------

Effect of exchange rate changes on cash                                  --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
NET CHANGE IN CASH                                                       --            --            --            --            --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                           --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                 --            --            --            --            --
                                                                 ==========    ==========    ==========    ==========    ==========
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2002
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                                                                          MERISTAR
                                                                  MERISTAR      MERISTAR      MERISTAR      MERISTAR       SUB 7A
                                                                   SUB 7E,       SUB 3D,       SUB 1A,       SUB 5E,        JOINT
                                                                     LLC           LLC           LLC           LLC         VENTURE
                                                                 ----------    ----------    ----------    ----------    ----------
<S>                                                              <C>           <C>           <C>           <C>           <C>
Operating activities:

 Net (loss) income                                                      332           716           485         1,757           320
 Adjustments to reconcile net (loss) income to net cash
  provided by (used in) operating activities:
  Depreciation and amortization                                         315           451           232           969           208
  Equity in income from affiliates                                       --            --            --            --            --
  Loss on fair value of non-hedging derivatives                          --            --            --            --            --
  Minority interests                                                     --            --            --            --            --
  Amortization of unearned stock based compensation                      --            --            --            --            --
  Unrealized gain on interest rate swaps recognized in net loss          --            --            --            --            --
  Deferred income taxes                                                  --            --            --            --            --
  Changes in operating assets and liabilities:
   Accounts receivable, net                                              --            --            --            --            --
   Prepaid expenses and other assets                                     --            --            --            --            --
   Due from/to Interstate Hotels & Resorts                               --            --            --            --            --
   Due from subsidiaries                                               (623)       (1,175)         (683)       (2,805)         (350)
   Accounts payable, accrued expenses and other liabilities              10           116           (20)           94           (26)
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) operating activities                   34           108            14            15           152
                                                                 ----------    ----------    ----------    ----------    ----------

Investing activities:

 Investment in hotel properties                                         (34)         (108)          (14)          (15)         (152)
 Note receivable                                                         --            --            --            --            --
 Increase in restricted cash                                             --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) investing activities                  (34)         (108)          (14)          (15)         (152)
                                                                 ----------    ----------    ----------    ----------    ----------

Financing activities:

 Principal payments on long-term debt                                    --            --            --            --            --
 Proceeds from issuance of long-term debt                                --            --            --            --            --
 Deferred financing fees                                                 --            --            --            --            --
 Contributions from partners                                             --            --            --            --            --
 Distributions paid to partners                                          --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) financing activities                   --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------

Effect of exchange rate changes on cash                                  --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
NET CHANGE IN CASH                                                       --            --            --            --            --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                           --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                 --            --            --            --            --
                                                                 ==========    ==========    ==========    ==========    ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                  MERISTAR       MERISTAR     MERISTAR      MERISTAR      MERISTAR
                                                                   SUB 6K,        SUB 2B,      SUB 3A,       SUB 4A,       SUB 4D,
                                                                     LLC            LLC          LLC           LLC           LLC
                                                                 ----------    ----------    ----------    ----------    ----------
<S>                                                              <C>           <C>           <C>           <C>           <C>
Operating activities:

 Net (loss) income                                                    1,450          (205)           96           392            10
 Adjustments to reconcile net (loss) income to net cash
  provided by (used in) operating activities:
  Depreciation and amortization                                         372           212           133            --           157
  Equity in income from affiliates                                       --            --            --            --            --
  Loss on fair value of non-hedging derivatives                          --            --            --            --            --
  Minority interests                                                     --            --            --            --            --
  Amortization of unearned stock based compensation                      --            --            --            --            --
  Unrealized gain on interest rate swaps recognized in net loss          --            --            --            --            --
  Deferred income taxes                                                  --            --            --            --            --
  Changes in operating assets and liabilities:
   Accounts receivable, net                                              --             1            --            --            --
   Prepaid expenses and other assets                                     --            --            --            --            --
   Due from/to Interstate Hotels & Resorts                               --            --            --            --            --
   Due from subsidiaries                                             (1,782)          267           424           (50)         (139)
   Accounts payable, accrued expenses and other liabilities              95            --             7           (92)           80
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) operating activities                  135           275           660           250           108
                                                                 ----------    ----------    ----------    ----------    ----------

Investing activities:

 Investment in hotel properties                                        (135)         (511)         (660)         (250)         (108)
 Note receivable                                                         --            --            --            --            --
 Increase in restricted cash                                             --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) investing activities                 (135)         (511)         (660)         (250)         (108)
                                                                 ----------    ----------    ----------    ----------    ----------

Financing activities:

 Principal payments on long-term debt                                    --            --            --            --            --
 Proceeds from issuance of long-term debt                                --           236            --            --            --
 Deferred financing fees                                                 --            --            --            --            --
 Contributions from partners                                             --            --            --            --            --
 Distributions paid to partners                                          --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) financing activities                   --           236            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------

Effect of exchange rate changes on cash                                  --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
NET CHANGE IN CASH                                                       --            --            --            --            --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                           --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                 --            --            --            --            --
                                                                 ==========    ==========    ==========    ==========    ==========
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2002
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                  MERISTAR      MERISTAR        MDV         MERISTAR      MERISTAR
                                                                   SUB 2A,       SUB 6L,       LIMITED       SUB 5C,       SUB 6J,
                                                                     LLC           LLC       PARTNERSHIP       LLC           LLC
                                                                 ----------    ----------    -----------   ----------    ----------
<S>                                                              <C>           <C>           <C>           <C>           <C>
Operating activities:

 Net (loss) income                                                     (283)          303           201           249         1,042
 Adjustments to reconcile net (loss) income to net cash
  provided by (used in) operating activities:
  Depreciation and amortization                                         159           445            68           298           322
  Equity in income from affiliates                                       --            --            --            --            --
  Loss on fair value of non-hedging derivatives                          --            --            --            --            --
  Minority interests                                                     --            --            --            --            --
  Amortization of unearned stock based compensation                      --            --            --            --            --
  Unrealized gain on interest rate swaps recognized in net loss          --            --            --            --            --
  Deferred income taxes                                                  --            --            --            --            --
  Changes in operating assets and liabilities:
   Accounts receivable, net                                              --            --            --            --            --
   Prepaid expenses and other assets                                     --            --             4           (27)           --
   Due from/to Interstate Hotels & Resorts                               --            --            --            --            --
   Due from subsidiaries                                                 60          (673)         (254)         (449)       (1,301)
   Accounts payable, accrued expenses and other liabilities              79            50           (15)           92           107
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) operating activities                   15           125             4           163           170
                                                                 ----------    ----------    ----------    ----------    ----------

Investing activities:

 Investment in hotel properties                                        (400)         (125)           (4)         (163)         (170)
 Note receivable                                                         --            --            --            --            --
 Increase in restricted cash                                             --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) investing activities                 (400)         (125)           (4)         (163)         (170)
                                                                 ----------    ----------    ----------    ----------    ----------

Financing activities:

 Principal payments on long-term debt                                    --            --            --            --            --
 Proceeds from issuance of long-term debt                               385            --            --            --            --
 Deferred financing fees                                                 --            --            --            --            --
 Contributions from partners                                             --            --            --            --            --
 Distributions paid to partners                                          --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) financing activities                  385            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------

Effect of exchange rate changes on cash                                  --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
NET CHANGE IN CASH                                                       --            --            --            --            --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                           --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                 --            --            --            --            --
                                                                 ==========    ==========    ==========    ==========    ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                  MERISTAR      MERISTAR      MERISTAR      MERISTAR      MERISTAR
                                                                   SUB 1D,       SUB 7B,       SUB 7D,       SUB 7G,       SUB 6B,
                                                                     L.P.          L.P.          LLC           LLC           LLC
                                                                 ----------    ----------    ----------    ----------    ----------
<S>                                                              <C>           <C>           <C>           <C>           <C>
Operating activities:

 Net (loss) income                                                    1,175          (118)          889          (193)          310
 Adjustments to reconcile net (loss) income to net cash
  provided by (used in) operating activities:
  Depreciation and amortization                                       1,118           463           832           378           227
  Equity in income from affiliates                                       --            --            --            --            --
  Loss on fair value of non-hedging derivatives                          --            --            --            --            --
  Minority interests                                                     --            --            --            --            --
  Amortization of unearned stock based compensation                      --            --            --            --            --
  Unrealized gain on interest rate swaps recognized in net loss          --            --            --            --            --
  Deferred income taxes                                                  --            --            --            --            --
  Changes in operating assets and liabilities:
   Accounts receivable, net                                              --            --           120            --            --
   Prepaid expenses and other assets                                     --            --            --            --            --
   Due from/to Interstate Hotels & Resorts                               --            --            --            --            --
   Due from subsidiaries                                             (1,453)         (312)       (1,695)           53          (544)
   Accounts payable, accrued expenses and other liabilities            (422)          (10)          (38)         (183)           69
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) operating activities                  418            23           108            55            62
                                                                 ----------    ----------    ----------    ----------    ----------

Investing activities:

 Investment in hotel properties                                        (418)          (23)         (108)          (55)          (62)
 Note receivable                                                         --            --            --            --            --
 Increase in restricted cash                                             --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) investing activities                 (418)          (23)         (108)          (55)          (62)
                                                                 ----------    ----------    ----------    ----------    ----------

Financing activities:

 Principal payments on long-term debt                                    --            --            --            --            --
 Proceeds from issuance of long-term debt                                --            --            --            --            --
 Deferred financing fees                                                 --            --            --            --            --
 Contributions from partners                                             --            --            --            --            --
 Distributions paid to partners                                          --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) financing activities                   --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------

Effect of exchange rate changes on cash                                  --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
NET CHANGE IN CASH                                                       --            --            --            --            --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                           --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                 --            --            --            --            --
                                                                 ==========    ==========    ==========    ==========    ==========
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2002
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                  MERISTAR      MERISTAR      MERISTAR      MERISTAR        AGH
                                                                   SUB 4I,       SUB 5D,       SUB 5H,       SUB 7H,       PSS I,
                                                                     L.P.          LLC           LLC           LLC          INC.
                                                                 ----------    ----------    ----------    ----------    ----------
<S>                                                              <C>           <C>           <C>           <C>           <C>
Operating activities:

 Net (loss) income                                                     (337)         (674)          692           166         1,215
 Adjustments to reconcile net (loss) income to net cash
  provided by (used in) operating activities:
  Depreciation and amortization                                         243           724           986           290            --
  Equity in income from affiliates                                       --            --            --            --            --
  Loss on fair value of non-hedging derivatives                          --            --            --            --            --
  Minority interests                                                     --            --            --            --            --
  Amortization of unearned stock based compensation                      --            --            --            --            --
  Unrealized gain on interest rate swaps recognized in net loss          --            --            --            --            --
  Deferred income taxes                                                  --            --            --            --            --
  Changes in operating assets and liabilities:
   Accounts receivable, net                                              --            --            --            --            --
   Prepaid expenses and other assets                                     --            --            --            --            --
   Due from/to Interstate Hotels & Resorts                               --            --            --            --            --
   Due from subsidiaries                                                300            56        (1,616)         (395)       (1,051)
   Accounts payable, accrued expenses and other liabilities             (93)           75           556            (3)          276
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) operating activities                  113           181           618            58           440
                                                                 ----------    ----------    ----------    ----------    ----------

Investing activities:

 Investment in hotel properties                                        (113)         (182)         (618)          (58)         (440)
 Note receivable                                                         --            --            --            --            --
 Increase in restricted cash                                             --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) investing activities                 (113)         (182)         (618)          (58)         (440)
                                                                 ----------    ----------    ----------    ----------    ----------

Financing activities:

 Principal payments on long-term debt                                    --            --            --            --            --
 Proceeds from issuance of long-term debt                                --            --            --            --            --
 Deferred financing fees                                                 --             1            --            --            --
 Contributions from partners                                             --            --            --            --            --
 Distributions paid to partners                                          --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) financing activities                   --             1            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------

Effect of exchange rate changes on cash                                  --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
NET CHANGE IN CASH                                                       --            --            --            --            --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                           --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                 --            --            --            --            --
                                                                 ==========    ==========    ==========    ==========    ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                  MERISTAR      MERISTAR      MERISTAR      MERISTAR      MERISTAR
                                                                   SUB 2D,       SUB 4F,       SUB 5K,       SUB 5M,       SUB 1E,
                                                                     LLC          L.P.           LLC           LLC           L.P.
                                                                 ----------    ----------    ----------    ----------    ----------
<S>                                                              <C>           <C>           <C>           <C>           <C>
Operating activities:

 Net (loss) income                                                     (147)          210           684           723           562
 Adjustments to reconcile net (loss) income to net cash
  provided by (used in) operating activities:
  Depreciation and amortization                                         237           560           594           226           150
  Equity in income from affiliates                                       --            --            --            --            --
  Loss on fair value of non-hedging derivatives                          --            --            --            --            --
  Minority interests                                                     --            --            --            --            --
  Amortization of unearned stock based compensation                      --            --            --            --            --
  Unrealized gain on interest rate swaps recognized in net loss          --            --            --            --            --
  Deferred income taxes                                                  --            --            --            --            --
  Changes in operating assets and liabilities:
   Accounts receivable, net                                              --            --            --            --            --
   Prepaid expenses and other assets                                     --            --            --            --            --
   Due from/to Interstate Hotels & Resorts                               --            --            --            --            --
   Due from subsidiaries                                                230          (248)          505        (1,074)         (647)
   Accounts payable, accrued expenses and other liabilities             (12)         (161)       (1,212)          207            (3)
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) operating activities                  308           361           571            82            62
                                                                 ----------    ----------    ----------    ----------    ----------

Investing activities:

 Investment in hotel properties                                        (755)         (361)         (571)          (82)          (62)
 Note receivable                                                         --            --            --            --            --
 Increase in restricted cash                                             --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) investing activities                 (755)         (361)         (571)          (82)          (62)
                                                                 ----------    ----------    ----------    ----------    ----------

Financing activities:

 Principal payments on long-term debt                                    --            --            --            --            --
 Proceeds from issuance of long-term debt                               447            --            --            --            --
 Deferred financing fees                                                 --            --            --            --            --
 Contributions from partners                                             --            --            --            --            --
 Distributions paid to partners                                          --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) financing activities                  447            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------

Effect of exchange rate changes on cash                                  --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
NET CHANGE IN CASH                                                       --            --            --            --            --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                           --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                 --            --            --            --            --
                                                                 ==========    ==========    ==========    ==========    ==========
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2002
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                  MERISTAR      MERISTAR      MERISTAR      MERISTAR      MERISTAR
                                                                   SUB 5O,       SUB 6M        SUB 4B,       SUB 6C,       SUB 2C,
                                                                     LLC        COMPANY          L.P.          LLC           LLC
                                                                 ----------    ----------    ----------    ----------    ----------
<S>                                                              <C>           <C>           <C>           <C>           <C>
Operating activities:

 Net (loss) income                                                      307         1,480          (239)        1,078          (582)
 Adjustments to reconcile net (loss) income to net cash
  provided by (used in) operating activities:
  Depreciation and amortization                                         109           603           296           394           519
  Equity in income from affiliates                                       --            --            --            --            --
  Loss on fair value of non-hedging derivatives                          --            --            --            --            --
  Minority interests                                                     --            --            --            --            --
  Amortization of unearned stock based compensation                      --            --            --            --            --
  Unrealized gain on interest rate swaps recognized in net loss          --            --            --            --            --
  Deferred income taxes                                                  --            --            --            --            --
  Changes in operating assets and liabilities:
   Accounts receivable, net                                              --            --            --            --            --
   Prepaid expenses and other assets                                     --            --            --            --            --
   Due from/to Interstate Hotels & Resorts                               --            --            --            --            --
   Due from subsidiaries                                               (468)       (2,077)        1,033        (1,252)          549
   Accounts payable, accrued expenses and other liabilities              82           141           (57)           59           131
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) operating activities                   30           147         1,033           279           617
                                                                 ----------    ----------    ----------    ----------    ----------

Investing activities:

 Investment in hotel properties                                         (30)         (147)       (1,033)         (279)       (1,397)
 Note receivable                                                         --            --            --            --            --
 Increase in restricted cash                                             --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) investing activities                  (30)         (147)       (1,033)         (279)       (1,397)
                                                                 ----------    ----------    ----------    ----------    ----------

Financing activities:

 Principal payments on long-term debt                                    --            --            --            --            --
 Proceeds from issuance of long-term debt                                --            --            --            --           780
 Deferred financing fees                                                 --            --            --            --            --
 Contributions from partners                                             --            --            --            --            --
 Distributions paid to partners                                          --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) financing activities                   --            --            --            --           780
                                                                 ----------    ----------    ----------    ----------    ----------

Effect of exchange rate changes on cash                                  --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
NET CHANGE IN CASH                                                       --            --            --            --            --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                           --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                 --            --            --            --            --
                                                                 ==========    ==========    ==========    ==========    ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                  MERISTAR      MERISTAR      MERISTAR      MERISTAR      MERISTAR
                                                                   SUB 4G,       SUB 3B,       SUB 5G,       SUB 5P,       SUB 5J,
                                                                     L.P.          LLC           LLC           LLC           LLC
                                                                 ----------    ----------    ----------    ----------    ----------
<S>                                                              <C>           <C>           <C>           <C>           <C>
Operating activities:

 Net (loss) income                                                      662           (18)        2,332           283         2,790
 Adjustments to reconcile net (loss) income to net cash
  provided by (used in) operating activities:
  Depreciation and amortization                                         458           461         3,095             1         1,733
  Equity in income from affiliates                                       --            --            --            --            --
  Loss on fair value of non-hedging derivatives                          --            --            --            --            --
  Minority interests                                                     --            --            --            --            --
  Amortization of unearned stock based compensation                      --            --            --            --            --
  Unrealized gain on interest rate swaps recognized in net loss          --            --            --            --            --
  Deferred income taxes                                                  --            --            --            --            --
  Changes in operating assets and liabilities:
   Accounts receivable, net                                              --            --            --           319            --
   Prepaid expenses and other assets                                     --            --            --            --           483
   Due from/to Interstate Hotels & Resorts                               --            --            --            --            --
   Due from subsidiaries                                               (835)         (190)       (5,473)         (582)       (4,726)
   Accounts payable, accrued expenses and other liabilities            (256)           67           910            18         1,269
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) operating activities                   29           320           864            39         1,549
                                                                 ----------    ----------    ----------    ----------    ----------

Investing activities:

 Investment in hotel properties                                         (29)         (320)         (859)          (39)       (1,549)
 Note receivable                                                         --            --            --            --            --
 Increase in restricted cash                                             --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) investing activities                  (29)         (320)         (859)          (39)       (1,549)
                                                                 ----------    ----------    ----------    ----------    ----------

Financing activities:

 Principal payments on long-term debt                                    --            --            --            --            --
 Proceeds from issuance of long-term debt                                --            --            --            --            --
 Deferred financing fees                                                 --            --            (5)           --            --
 Contributions from partners                                             --            --            --            --            --
 Distributions paid to partners                                          --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) financing activities                   --            --            (5)           --            --
                                                                 ----------    ----------    ----------    ----------    ----------

Effect of exchange rate changes on cash                                  --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
NET CHANGE IN CASH                                                       --            --            --            --            --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                           --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                 --            --            --            --            --
                                                                 ==========    ==========    ==========    ==========    ==========
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2002
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                  MERISTAR      MERISTAR      MERISTAR      MERISTAR      MERISTAR
                                                                   SUB 5Q,       SUB 5R,       SUB 8D,       SUB 4J,        HOTEL
                                                                     LLC           LLC           LLC           LLC      LESSEE, INC.
                                                                 ----------    ----------    ----------    ----------   ------------
<S>                                                              <C>           <C>           <C>           <C>          <C>
Operating activities:

 Net (loss) income                                                      862           685           327           868         2,183
 Adjustments to reconcile net (loss) income to net cash
  provided by (used in) operating activities:
  Depreciation and amortization                                         240           690           634           671         1,083
  Equity in income from affiliates                                       --            --            --            --            --
  Loss on fair value of non-hedging derivatives                          --            --            --            --            --
  Minority interests                                                     --            --            --            --            --
  Amortization of unearned stock based compensation                      --            --            --            --            --
  Unrealized gain on interest rate swaps recognized in net loss          --            --            --            --            --
  Deferred income taxes                                                  --            --            --            --            --
  Changes in operating assets and liabilities:
   Accounts receivable, net                                              --            --            --            31        (1,160)
   Prepaid expenses and other assets                                     --            --            --            --          (923)
   Due from/to Interstate Hotels & Resorts                               --            --            --            --         5,457
   Due from subsidiaries                                               (909)       (1,563)         (895)       (1,447)       13,703
   Accounts payable, accrued expenses and other liabilities             228           362           (15)          (63)          815
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) operating activities                  421           174            51            60        21,158
                                                                 ----------    ----------    ----------    ----------    ----------

Investing activities:

 Investment in hotel properties                                        (421)         (174)          (51)          (60)         (750)
 Note receivable                                                         --            --            --            --          (613)
 Increase in restricted cash                                             --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) investing activities                 (421)         (174)          (51)          (60)       (1,363)
                                                                 ----------    ----------    ----------    ----------    ----------

Financing activities:

 Principal payments on long-term debt                                    --            --            --            --        (4,000)
 Proceeds from issuance of long-term debt                                --            --            --            --        (5,114)
 Deferred financing fees                                                 --            --            --            --            --
 Contributions from partners                                             --            --            --            --            --
 Distributions paid to partners                                          --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
   Net cash provided by (used in) financing activities                   --            --            --            --        (9,114)
                                                                 ----------    ----------    ----------    ----------    ----------

Effect of exchange rate changes on cash                                  --            --            --            --            --
                                                                 ----------    ----------    ----------    ----------    ----------
NET CHANGE IN CASH                                                       --            --            --            --        10,681

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                           --            --            --            --        16,643
                                                                 ----------    ----------    ----------    ----------    ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                 --            --            --            --        27,324
                                                                 ==========    ==========    ==========    ==========    ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                 GUARANTOR
                                                                SUBSIDIARIES                    TOTAL
                                                                   TOTAL      ELIMINATIONS  CONSOLIDATED
                                                                ------------  ------------  ------------
<S>                                                             <C>           <C>           <C>
Operating activities:

 Net (loss) income                                                   36,339       (58,834)       (6,821)
 Adjustments to reconcile net (loss) income to net cash
  provided by (used in) operating activities:
  Depreciation and amortization                                      29,709            --        63,260
  Equity in income from affiliates                                       --        58,834            --
  Loss on fair value of non-hedging derivatives                          --            --         4,735
  Minority interests                                                     --            --             8
  Amortization of unearned stock based compensation                      --            --         1,920
  Unrealized gain on interest rate swaps recognized in net loss          --            --        (2,905)
  Deferred income taxes                                                  --            --          (332)
  Changes in operating assets and liabilities:
   Accounts receivable, net                                            (750)           --        (4,817)
   Prepaid expenses and other assets                                   (467)           --         3,098
   Due from/to Interstate Hotels & Resorts                            5,457            --         4,900
   Due from subsidiaries                                            (41,281)     (271,567)           --
   Accounts payable, accrued expenses and other liabilities           4,150            --         3,884
                                                                 ----------    ----------    ----------
   Net cash provided by (used in) operating activities               33,157      (271,567)       66,930
                                                                 ----------    ----------    ----------

Investing activities:

 Investment in hotel properties                                     (14,593)           --       (24,696)
 Note receivable                                                       (613)       (7,455)      (10,000)
 Increase in restricted cash                                             --            --         4,384
                                                                 ---------     ----------    ----------
   Net cash provided by (used in) investing activities              (15,206)       (7,455)      (30,312)
                                                                 ----------    ----------    ----------

Financing activities:

 Principal payments on long-term debt                                (4,000)           --      (265,840)
 Proceeds from issuance of long-term debt                            (3,266)      279,022       234,841
 Deferred financing fees                                                 (4)           --        (3,571)
 Contributions from partners                                             --            --         3,156
 Distributions paid to partners                                          --            --        (1,212)
                                                                 ----------    ----------    ----------
   Net cash provided by (used in) financing activities               (7,270)      279,022       (32,626)
                                                                 ----------    ----------    ----------

Effect of exchange rate changes on cash                                  --            --           (28)
                                                                 ----------    ----------    ----------
NET CHANGE IN CASH                                                   10,681            --         3,964

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                       16,643            --        23,441
                                                                 ----------    ----------    ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                             27,324            --        27,405
                                                                 ==========    ==========    ==========
</TABLE>