Exhibit 99.1



MeriStar Hospitality Operating Partnership, L.P.

Consolidated Balance Sheet

March 31, 2005

(Dollars in thousands)



|                                                  |  |                             |            |   |                           |           |   |                               |        |   |                               |       |                    |    |                    |    |              |       |                     |        |   |                     |        |   |                    |         |   |                    |        |   |                    |        |  
|------------------------------------------------- |  | --------------------------- | ---------- | - | ------------------------- | --------- | - | ----------------------------- | ------ | - | ----------------------------- | ----- | ------------------ | -- | ------------------ | -- | ------------ | ----- | ------------------- | ------ | - | ------------------- | ------ | - | ------------------ | ------- | - | ------------------ | ------ | - | ------------------ | ------ | -
|                                                  |  | MeriStarHospitalityOP, L.P. |            |   | Non-GuarantorSubsidiaries |           |   | MeriStarLexingtonMortgage,LLC |        |   | MeriStarLexingtonPartners,LLC |       | MeriStarSub 7C,LLC |    | MeriStarSub 8G,LLC |    | AGHUPREITLLC |       | MeriStarSub 6H,L.P. |        |   | MeriStarSub 8F,L.P. |        |   | MeriStarSub 8B,LLC |         |   | MeriStarSub 1C,LLC |        |   | MeriStarSub 8E,LLC |       
|Assets                                            |  |                             |            |   |                           |           |   |                               |        |   |                               |       |                    |    |                    |    |              |       |                     |        |   |                     |        |   |                    |         |   |                    |        |   |                    |        |  
|Property and equipment                            |  | $                           | 23,772     |   |                           | 1,504,837 |   |                               |       |   |                               |      |                    |   |                    |   |              |      |                     | 10,886 |   |                     | 13,805 |   |                    | 94,250  |   |                    | 27,639 |   |                    | 16,074 |  
|Accumulated depreciation                          |  |                             | (15,296    | ) |                           | (299,876  | ) |                               |       |   |                               |      |                    |   |                    |   |              |      |                     | (940   | ) |                     | (3,343 | ) |                    | (15,365 | ) |                    | (7,672 | ) |                    | (3,754 | )
|                                                  |  |                             |            |   |                           |           |   |                               |        |   |                               |       |                    |    |                    |    |              |       |                     |        |   |                     |        |   |                    |         |   |                    |        |   |                    |        |  
|                                                  |  |                             | 8,476      |   |                           | 1,204,961 |   |                               |       |   |                               |      |                    |   |                    |   |              |      |                     | 9,946  |   |                     | 10,462 |   |                    | 78,885  |   |                    | 19,967 |   |                    | 12,320 |  
|                                                  |  |                             |            |   |                           |           |   |                               |        |   |                               |      
|Investments in affiliates                         |  |                             | 2,406,629  |   |                           | 7,992     |   |                               | 41,590 |   |                               | 8,146 |                    | 32 |                    | 72 |              | 2,989 |                     |       |   |                     |       |   |                    |        |   |                    |       |   |                    |       |  
|Prepaid expenses and other assets                 |  |                             | 30,965     |   |                           | (4,685    | ) |                               | (10    | ) |                               | 96    |                    |   |                    |   |              |      |                     | (14    | ) |                     | (94    | ) |                    | (116    | ) |                    | (228   | ) |                    | (30    | )
|Insurance claim receivable                        |  |                             | 60,896     |   |                           |          |   |                               |       |   |                               |      |                    |   |                    |   |              |      |                     |       |   |                     |       |   |                    |        |   |                    |       |   |                    |       |  
|Accounts receivable, net                          |  |                             | 13,004     |   |                           | 774       |   |                               |       |   |                               |      |                    |   |                    |   |              |      |                     |       |   |                     |       |   |                    | 63      |   |                    |       |   |                    |       |  
|Due to/from subsidiaries                          |  |                             | (1,130,785 | ) |                           | 537,290   |   |                               | 1,670  |   |                               | 655   |                    |   |                    | 9  |              | 73    |                     | 8,122  |   |                     | 7,107  |   |                    | 27,702  |   |                    | (4,041 | ) |                    | 7,796  |  
|Note receivable from subsidiaries                 |  |                             | 259,065    |   |                           |          |   |                               |       |   |                               |      |                    |   |                    |   |              |      |                     |       |   |                     |       |   |                    |        |   |                    |       |   |                    |       |  
|Restricted cash                                   |  |                             | 57,926     |   |                           | 1,478     |   |                               |       |   |                               |      |                    |   |                    |   |              |      |                     |       |   |                     |       |   |                    |        |   |                    |       |   |                    |       |  
|Cash and cash equivalents                         |  |                             | 24,971     |   |                           |          |   |                               |       |   |                               |      |                    |   |                    |   |              |      |                     |       |   |                     |       |   |                    |        |   |                    |       |   |                    |       |  
|                                                  |  |                             |            |   |                           |           |   |                               |        |   |                               |       |                    |    |                    |    |              |       |                     |        |   |                     |        |   |                    |         |   |                    |        |   |                    |        |  
|                                                  |  | $                           | 1,731,147  |   |                           | 1,747,810 |   |                               | 43,250 |   |                               | 8,897 |                    | 32 |                    | 81 |              | 3,062 |                     | 18,054 |   |                     | 17,475 |   |                    | 106,534 |   |                    | 15,698 |   |                    | 20,086 |  
|                                                  |  |                             |            |   |                           |           |   |                               |        |   |                               |       |                    |    |                    |    |              |       |                     |        |   |                     |        |   |                    |         |   |                    |        |   |                    |        |  
|Liabilities and Partners Capital                 |  |                             |            |   |                           |           |   |                               |        |   |                               |       |                    |    |                    |    |              |       |                     |        |   |                     |        |   |                    |         |   |                    |        |   |                    |        |  
|Long-term debt                                    |  | $                           | 835,410    |   |                           | 469,231   |   |                               |       |   |                               |      |                    |   |                    |   |              |      |                     |       |   |                     |       |   |                    |        |   |                    |       |   |                    |       |  
|Notes payable to MeriStar Hospitality Corporation |  |                             | 202,528    |   |                           |          |   |                               |       |   |                               |      |                    |   |                    |   |              |      |                     |       |   |                     |       |   |                    |        |   |                    |       |   |                    |       |  
|Accounts payable and accrued expenses             |  |                             | 12,035     |   |                           | 3,762     |   |                               |       |   |                               |      |                    |   |                    |   |              |      |                     | 22     |   |                     | 5      |   |                    | 5       |   |                    | 104    |   |                    | (32    | )
|Accrued interest                                  |  |                             | 33,399     |   |                           | 2,146     |   |                               |       |   |                               |      |                    |   |                    |   |              |      |                     |       |   |                     |       |   |                    |        |   |                    |       |   |                    |       |  
|Due to Interstate Hotels & Resorts                |  |                             | 11,808     |   |                           |          |   |                               |       |   |                               |      |                    |   |                    |   |              |      |                     |       |   |                     |       |   |                    |        |   |                    |       |   |                    |       |  
|Other liabilities                                 |  |                             | 12,130     |   |                           |          |   |                               |       |   |                               |      |                    |   |                    |   |              |      |                     |       |   |                     |       |   |                    |        |   |                    |       |   |                    |       |  
|                                                  |  |                             |            |   |                           |           |   |                               |        |   |                               |       |                    |    |                    |    |              |       |                     |        |   |                     |        |   |                    |         |   |                    |        |   |                    |        |  
|                                                  |  |                             | 1,107,310  |   |                           | 475,139   |   |                               |       |   |                               |      |                    |   |                    |   |              |      |                     | 22     |   |                     | 5      |   |                    | 5       |   |                    | 104    |   |                    | (32    | )
|                                                  |  |                             |            |   |                           |           |   |                               |        |   |                               |       |                    |    |                    |    |              |       |                     |        |   |                     |        |   |                    |         |   |                    |        |   |                    |        |  
|Minority interests                                |  |                             | 2,422      |   |                           |          |   |                               |       |   |                               |      |                    |   |                    |   |              |      |                     |       |   |                     |       |   |                    |        |   |                    |       |   |                    |       |  
|Redeemable OP units at redemption value           |  |                             | 16,085     |   |                           |          |   |                               |       |   |                               |      |                    |   |                    |   |              |      |                     |       |   |                     |       |   |                    |        |   |                    |       |   |                    |       |  
|Partners capital - Common OP units               |  |                             | 605,330    |   |                           | 1,272,671 |   |                               | 43,250 |   |                               | 8,897 |                    | 32 |                    | 81 |              | 3,062 |                     | 18,032 |   |                     | 17,470 |   |                    | 106,529 |   |                    | 15,594 |   |                    | 20,118 |  
|                                                  |  |                             |            |   |                           |           |   |                               |        |   |                               |       |                    |    |                    |    |              |       |                     |        |   |                     |        |   |                    |         |   |                    |        |   |                    |        |  
|                                                  |  | $                           | 1,731,147  |   |                           | 1,747,810 |   |                               | 43,250 |   |                               | 8,897 |                    | 32 |                    | 81 |              | 3,062 |                     | 18,054 |   |                     | 17,475 |   |                    | 106,534 |   |                    | 15,698 |   |                    | 20,086 |  
|                                                  |  |                             |            |   |                           |           |   |                               |        |   |                               |       |                    |    |                    |    |              |       |                     |        |   |                     |        |   |                    |         |   |                    |        |   |                    |        |  



1



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Balance Sheet

March 31, 2005

(Dollars in thousands)



|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                   
|------------------------------------------------- |  | ------------------ | - |  | ------------------ | - |  | ------------------ | - |  | ------------------ | - |  | ------------------ |  | ------------------ | - |  | ------------------ | - |  | ------------------- | - |  | ------------------ | - |  | ------------------- | - |  | ------------------ | - |  | ------------------
|                                                  |  | MeriStarSub 7F,LLC |   |  | MeriStarSub 5L,LLC |   |  | MeriStarSub 3C,LLC |   |  | MeriStarSub 5R,LLC |   |  | MeriStarSub 8A,LLC |  | MeriStarSub 6D,LLC |   |  | MeriStarSub 6E,LLC |   |  | MeriStarSub 4E,L.P. |   |  | MeriStarSub 1B,LLC |   |  | MeriStarSub 5F,L.P. |   |  | MeriStarSub 6G,LLC |   |  | MeriStarSub 8C,LLC
|Assets                                            |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                   
|Property and equipment                            |  | 9,753              |   |  | 11,990             |   |  | 17,612             |   |  |                   |   |  |                   |  | 18,427             |   |  | 51,799             |   |  |                    |   |  | 21,021             |   |  | 23,124              |   |  | 24,394             |   |  |                  
|Accumulated depreciation                          |  | (547               | ) |  | (763               | ) |  | (4,538             | ) |  |                   |   |  |                   |  | (3,483             | ) |  | (11,940            | ) |  | (1                  | ) |  | (4,684             | ) |  | (745                | ) |  | (5,905             | ) |  |                  
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                   
|                                                  |  | 9,206              |   |  | 11,227             |   |  | 13,074             |   |  |                   |   |  |                   |  | 14,944             |   |  | 39,859             |   |  | (1                  | ) |  | 16,337             |   |  | 22,379              |   |  | 18,489             |   |  |                  
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                    |  
|Investments in affiliates                         |  |                   |   |  |                   |   |  |                   |   |  | 43                 |   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                  
|Prepaid expenses and other assets                 |  | (14                | ) |  | (89                | ) |  | (4                 | ) |  |                   |   |  |                   |  | (24                | ) |  | 694                |   |  |                    |   |  | (95                | ) |  | (205                | ) |  | (40                | ) |  |                  
|Insurance claim receivable                        |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                  
|Accounts receivable, net                          |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  | 112                |   |  | 3                  |   |  |                    |   |  | 96                 |   |  |                    |   |  |                   |   |  |                  
|Due to/from subsidiaries                          |  | 3,659              |   |  | 5,125              |   |  | 7,299              |   |  | (43                | ) |  |                   |  | 9,801              |   |  | 56,137             |   |  | 7,074               |   |  | 15,475             |   |  | 8,860               |   |  | 9,288              |   |  | 11,439            
|Note receivable from subsidiaries                 |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                  
|Restricted cash                                   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  | 3,000              |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                  
|Cash and cash equivalents                         |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                  
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                   
|                                                  |  | 12,851             |   |  | 16,263             |   |  | 20,369             |   |  |                   |   |  |                   |  | 24,833             |   |  | 99,693             |   |  | 7,073               |   |  | 31,813             |   |  | 31,034              |   |  | 27,737             |   |  | 11,439            
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                   
|Liabilities and Partners Capital                 |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                   
|Long-term debt                                    |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  | 37,650             |   |  |                    |   |  | 28                 |   |  |                    |   |  |                   |   |  |                  
|Notes payable to MeriStar Hospitality Corporation |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                  
|Accounts payable and accrued expenses             |  | 184                |   |  | 23                 |   |  | 310                |   |  |                   |   |  |                   |  | (60                | ) |  | 121                |   |  |                    |   |  | 30                 |   |  | 61                  |   |  | 5                  |   |  |                  
|Accrued interest                                  |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                  
|Due to Interstate Hotels & Resorts                |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                  
|Other liabilities                                 |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                  
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                   
|                                                  |  | 184                |   |  | 23                 |   |  | 310                |   |  |                   |   |  |                   |  | (60                | ) |  | 37,771             |   |  |                    |   |  | 58                 |   |  | 61                  |   |  | 5                  |   |  |                  
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                   
|Minority interests                                |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                  
|Redeemable OP units at redemption value           |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                  
|Partners capital - Common OP units               |  | 12,667             |   |  | 16,240             |   |  | 20,059             |   |  |                   |   |  |                   |  | 24,893             |   |  | 61,922             |   |  | 7,073               |   |  | 31,755             |   |  | 30,973              |   |  | 27,732             |   |  | 11,439            
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                   
|                                                  |  | 12,851             |   |  | 16,263             |   |  | 20,369             |   |  |                   |   |  |                   |  | 24,833             |   |  | 99,693             |   |  | 7,073               |   |  | 31,813             |   |  | 31,034              |   |  | 27,737             |   |  | 11,439            
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                   



2



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Balance Sheet

March 31, 2005

(Dollars in thousands)



|                                                  |  |                     |  |                     |  |                    |   |  |                    |   |  |                    |   |  |                            |   |  |                    |  |                    |  |                   |  |                    |  |                    |  |                   
|------------------------------------------------- |  | ------------------- |  | ------------------- |  | ------------------ | - |  | ------------------ | - |  | ------------------ | - |  | -------------------------- | - |  | ------------------ |  | ------------------ |  | ----------------- |  | ------------------ |  | ------------------ |  | ------------------
|                                                  |  | MeriStarSub 4C,L.P. |  | MeriStarSub 4H,L.P. |  | MeriStarSub 7E,LLC |   |  | MeriStarSub 3D,LLC |   |  | MeriStarSub 1A,LLC |   |  | MeriStarSub 7AJointVenture |   |  | MeriStarSub 2B,LLC |  | MeriStarSub 3A,LLC |  | MeriStarSub 4A,LP |  | MeriStarSub 4D,LLC |  | MeriStarSub 2A,LLC |  | MeriStarSub 6L,LLC
|Assets                                            |  |                     |  |                     |  |                    |   |  |                    |   |  |                    |   |  |                            |   |  |                    |  |                    |  |                   |  |                    |  |                    |  |                   
|Property and equipment                            |  |                    |  | 1                   |  | 20,248             |   |  | 23,435             |   |  | 5,522              |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                  
|Accumulated depreciation                          |  |                    |  |                    |  | (4,139             | ) |  | (7,902             | ) |  | (75                | ) |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                  
|                                                  |  |                     |  |                     |  |                    |   |  |                    |   |  |                    |   |  |                            |   |  |                    |  |                    |  |                   |  |                    |  |                    |  |                   
|                                                  |  |                    |  | 1                   |  | 16,109             |   |  | 15,533             |   |  | 5,447              |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                  
|Investments in affiliates                         |  |                    |  |                    |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                  
|Prepaid expenses and other assets                 |  |                    |  |                    |  | (25                | ) |  | (50                | ) |  | (119               | ) |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                  
|Insurance claim receivable                        |  |                    |  |                    |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                  
|Accounts receivable, net                          |  |                    |  |                    |  |                   |   |  |                   |   |  |                   |   |  | (44                        | ) |  |                   |  |                   |  |                  |  |                   |  |                   |  | 178               
|Due to/from subsidiaries                          |  |                    |  | 3,413               |  | 6,193              |   |  | 9,381              |   |  | 8,842              |   |  | 9,944                      |   |  |                   |  | 4,976              |  |                  |  |                   |  |                   |  | 20,297            
|Note receivable from subsidiaries                 |  |                    |  |                    |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                  
|Restricted cash                                   |  |                    |  |                    |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                  
|Cash and cash equivalents                         |  |                    |  |                    |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                  
|                                                  |  |                     |  |                     |  |                    |   |  |                    |   |  |                    |   |  |                            |   |  |                    |  |                    |  |                   |  |                    |  |                    |  |                   
|                                                  |  |                    |  | 3,414               |  | 22,277             |   |  | 24,864             |   |  | 14,170             |   |  | 9,900                      |   |  |                   |  | 4,976              |  |                  |  |                   |  |                   |  | 20,475            
|                                                  |  |                     |  |                     |  |                    |   |  |                    |   |  |                    |   |  |                            |   |  |                    |  |                    |  |                   |  |                    |  |                    |  |                   
|Liabilities and Partners Capital                 |  |                     |  |                     |  |                    |   |  |                    |   |  |                    |   |  |                            |   |  |                    |  |                    |  |                   |  |                    |  |                    |  |                   
|Long-term debt                                    |  |                    |  |                    |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                  
|Notes payable to MeriStar Hospitality Corporation |  |                    |  |                    |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                  
|Accounts payable and accrued expenses             |  |                    |  |                    |  | 78                 |   |  | 30                 |   |  | 23                 |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                  
|Accrued interest                                  |  |                    |  |                    |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                  
|Due to Interstate Hotels & Resorts                |  |                    |  |                    |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                  
|Other liabilities                                 |  |                    |  |                    |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                  
|                                                  |  |                     |  |                     |  |                    |   |  |                    |   |  |                    |   |  |                            |   |  |                    |  |                    |  |                   |  |                    |  |                    |  |                   
|                                                  |  |                    |  |                    |  | 78                 |   |  | 30                 |   |  | 23                 |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                  
|                                                  |  |                     |  |                     |  |                    |   |  |                    |   |  |                    |   |  |                            |   |  |                    |  |                    |  |                   |  |                    |  |                    |  |                   
|Minority interests                                |  |                    |  |                    |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                  
|Redeemable OP units at redemption value           |  |                    |  |                    |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                  
|Partners capital - Common OP units               |  |                    |  | 3,414               |  | 22,199             |   |  | 24,834             |   |  | 14,147             |   |  | 9,900                      |   |  |                   |  | 4,976              |  |                  |  |                   |  |                   |  | 20,475            
|                                                  |  |                     |  |                     |  |                    |   |  |                    |   |  |                    |   |  |                            |   |  |                    |  |                    |  |                   |  |                    |  |                    |  |                   
|                                                  |  |                    |  | 3,414               |  | 22,277             |   |  | 24,864             |   |  | 14,170             |   |  | 9,900                      |   |  |                   |  | 4,976              |  |                  |  |                   |  |                   |  | 20,475            
|                                                  |  |                     |  |                     |  |                    |   |  |                    |   |  |                    |   |  |                            |   |  |                    |  |                    |  |                   |  |                    |  |                    |  |                   



3



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Balance Sheet

March 31, 2005

(Dollars in thousands)



|                                                  |  |                       |   |  |                    |  |                    |   |  |                    |   |  |                     |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                    |  |                   
|------------------------------------------------- |  | --------------------- | - |  | ------------------ |  | ------------------ | - |  | ------------------ | - |  | ------------------- |  | ------------------ | - |  | ------------------ |  | ------------------ | - |  | ------------------- |  | ------------------ | - |  | ------------------ |  | ------------------
|                                                  |  | MDVLimitedPartnership |   |  | MeriStarSub 5C,LLC |  | MeriStarSub 6J,LLC |   |  | MeriStarSub 1D,LLC |   |  | MeriStarSub 7B,L.P. |  | MeriStarSub 7D,LLC |   |  | MeriStarSub 7G,LLC |  | MeriStarSub 6B,LLC |   |  | MeriStarSub 4I,L.P. |  | MeriStarSub 5D,LLC |   |  | MeriStarSub 5H,LLC |  | MeriStarSub 7H,LLC
|Assets                                            |  |                       |   |  |                    |  |                    |   |  |                    |   |  |                     |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                    |  |                   
|Property and equipment                            |  | 3,981                 |   |  |                   |  | 20,113             |   |  | 70,361             |   |  |                    |  | 55,296             |   |  |                   |  | 11,976             |   |  |                    |  | 42,495             |   |  |                   |  |                  
|Accumulated depreciation                          |  | (889                  | ) |  |                   |  | (4,455             | ) |  | (14,906            | ) |  |                    |  | (11,595            | ) |  |                   |  | (2,748             | ) |  |                    |  | (9,875             | ) |  |                   |  |                  
|                                                  |  |                       |   |  |                    |  |                    |   |  |                    |   |  |                     |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                    |  |                   
|                                                  |  | 3,092                 |   |  |                   |  | 15,658             |   |  | 55,455             |   |  |                    |  | 43,701             |   |  |                   |  | 9,228              |   |  |                    |  | 32,620             |   |  |                   |  |                  
|Investments in affiliates                         |  |                      |   |  |                   |  |                   |   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |   |  |                    |  | 51,368             |   |  |                   |  |                  
|Prepaid expenses and other assets                 |  | (29                   | ) |  |                   |  | (13                | ) |  | (629               | ) |  |                    |  | 10                 |   |  |                   |  | (16                | ) |  |                    |  | (91                | ) |  |                   |  |                  
|Insurance claim receivable                        |  |                      |   |  |                   |  |                   |   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                  
|Accounts receivable, net                          |  |                      |   |  |                   |  |                   |   |  |                   |   |  |                    |  | 1,469              |   |  |                   |  | 22                 |   |  |                    |  |                   |   |  |                   |  |                  
|Due to/from subsidiaries                          |  | 2,926                 |   |  |                   |  | 10,356             |   |  | 23,476             |   |  |                    |  | 26,878             |   |  | 2,370              |  | 3,144              |   |  |                    |  | (6,150             | ) |  |                   |  |                  
|Note receivable from subsidiaries                 |  |                      |   |  |                   |  |                   |   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                  
|Restricted cash                                   |  |                      |   |  |                   |  |                   |   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                  
|Cash and cash equivalents                         |  |                      |   |  |                   |  |                   |   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                  
|                                                  |  |                       |   |  |                    |  |                    |   |  |                    |   |  |                     |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                    |  |                   
|                                                  |  | 5,989                 |   |  |                   |  | 26,001             |   |  | 78,302             |   |  |                    |  | 72,058             |   |  | 2,370              |  | 12,378             |   |  |                    |  | 77,747             |   |  |                   |  |                  
|                                                  |  |                       |   |  |                    |  |                    |   |  |                    |   |  |                     |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                    |  |                   
|Liabilities and Partners Capital                 |  |                       |   |  |                    |  |                    |   |  |                    |   |  |                     |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                    |  |                   
|Long-term debt                                    |  |                      |   |  |                   |  |                   |   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |   |  |                    |  | 24,000             |   |  |                   |  |                  
|Notes payable to MeriStar Hospitality Corporation |  |                      |   |  |                   |  |                   |   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                  
|Accounts payable and accrued expenses             |  | 40                    |   |  |                   |  | 21                 |   |  | 246                |   |  |                    |  | 1,881              |   |  |                   |  | (67                | ) |  |                    |  | 234                |   |  |                   |  |                  
|Accrued interest                                  |  |                      |   |  |                   |  |                   |   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                  
|Due to Interstate Hotels & Resorts                |  |                      |   |  |                   |  |                   |   |  |                   |   |  |                    |  | (200               | ) |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                  
|Other liabilities                                 |  |                      |   |  |                   |  |                   |   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                  
|                                                  |  |                       |   |  |                    |  |                    |   |  |                    |   |  |                     |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                    |  |                   
|                                                  |  | 40                    |   |  |                   |  | 21                 |   |  | 246                |   |  |                    |  | 1,681              |   |  |                   |  | (67                | ) |  |                    |  | 24,234             |   |  |                   |  |                  
|                                                  |  |                       |   |  |                    |  |                    |   |  |                    |   |  |                     |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                    |  |                   
|Minority interests                                |  |                      |   |  |                   |  |                   |   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                  
|Redeemable OP units at redemption value           |  |                      |   |  |                   |  |                   |   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                  
|Partners capital - Common OP units               |  | 5,949                 |   |  |                   |  | 25,980             |   |  | 78,056             |   |  |                    |  | 70,377             |   |  | 2,370              |  | 12,445             |   |  |                    |  | 53,513             |   |  |                   |  |                  
|                                                  |  |                       |   |  |                    |  |                    |   |  |                    |   |  |                     |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                    |  |                   
|                                                  |  | 5,989                 |   |  |                   |  | 26,001             |   |  | 78,302             |   |  |                    |  | 72,058             |   |  | 2,370              |  | 12,378             |   |  |                    |  | 77,747             |   |  |                   |  |                  
|                                                  |  |                       |   |  |                    |  |                    |   |  |                    |   |  |                     |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                    |  |                   



4



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Balance Sheet

March 31, 2005

(Dollars in thousands)



|                                                  |  |                |  |                    |  |                     |   |  |                    |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                     |   |  |                    |  |                     |  
|------------------------------------------------- |  | -------------- |  | ------------------ |  | ------------------- | - |  | ------------------ |  | ------------------ | - |  | ------------------ |  | ------------------ | - |  | ------------------- |  | ------------------ | - |  | ------------------- | - |  | ------------------ |  | ------------------- | -
|                                                  |  | AGH PSS I,Inc. |  | MeriStarSub 2D,LLC |  | MeriStarSub 4F,L.P. |   |  | MeriStarSub 5K,LLC |  | MeriStarSub 5M,LLC |   |  | MeriStarSub 1E,LLC |  | MeriStarSub 5O,LLC |   |  | MeriStarSub 4B,L.P. |  | MeriStarSub 2C,LLC |   |  | MeriStarSub 4G,L.P. |   |  | MeriStarSub 3B,LLC |  | MeriStarSub 5G,L.P. |  
|Assets                                            |  |                |  |                    |  |                     |   |  |                    |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                     |   |  |                    |  |                     |  
|Property and equipment                            |  |               |  |                   |  | 35,940              |   |  |                   |  | 19,714             |   |  |                   |  | 7,842              |   |  |                    |  |                   |   |  |                    |   |  |                   |  | 171,319             |  
|Accumulated depreciation                          |  |               |  |                   |  | (7,206              | ) |  |                   |  | (1,674             | ) |  |                   |  | (878               | ) |  |                    |  |                   |   |  | (1                  | ) |  |                   |  | (37,273             | )
|                                                  |  |                |  |                    |  |                     |   |  |                    |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                     |   |  |                    |  |                     |  
|                                                  |  |               |  |                   |  | 28,734              |   |  |                   |  | 18,040             |   |  |                   |  | 6,964              |   |  |                    |  |                   |   |  | (1                  | ) |  |                   |  | 134,046             |  
|Investments in affiliates                         |  |               |  |                   |  |                    |   |  |                   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                    |   |  |                   |  |                    |  
|Prepaid expenses and other assets                 |  |               |  |                   |  | (16                 | ) |  |                   |  | (135               | ) |  |                   |  | (45                | ) |  |                    |  |                   |   |  |                    |   |  |                   |  | (490                | )
|Insurance claim receivable                        |  |               |  |                   |  |                    |   |  |                   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                    |   |  |                   |  |                    |  
|Accounts receivable, net                          |  |               |  |                   |  |                    |   |  |                   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                    |   |  |                   |  |                    |  
|Due to/from subsidiaries                          |  |               |  |                   |  | 3,677               |   |  | 21,531             |  | 10,450             |   |  |                   |  | 3,969              |   |  |                    |  | (2,360             | ) |  | 16,930              |   |  |                   |  | 46,755              |  
|Note receivable from subsidiaries                 |  |               |  |                   |  |                    |   |  |                   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                    |   |  |                   |  |                    |  
|Restricted cash                                   |  |               |  |                   |  |                    |   |  |                   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                    |   |  |                   |  |                    |  
|Cash and cash equivalents                         |  |               |  |                   |  |                    |   |  |                   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                    |   |  |                   |  |                    |  
|                                                  |  |                |  |                    |  |                     |   |  |                    |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                     |   |  |                    |  |                     |  
|                                                  |  |               |  |                   |  | 32,395              |   |  | 21,531             |  | 28,355             |   |  |                   |  | 10,888             |   |  |                    |  | (2,360             | ) |  | 16,929              |   |  |                   |  | 180,311             |  
|                                                  |  |                |  |                    |  |                     |   |  |                    |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                     |   |  |                    |  |                     |  
|Liabilities and Partners Capital                 |  |                |  |                    |  |                     |   |  |                    |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                     |   |  |                    |  |                     |  
|Long-term debt                                    |  |               |  |                   |  |                    |   |  |                   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                    |   |  |                   |  |                    |  
|Notes payable to MeriStar Hospitality Corporation |  |               |  |                   |  |                    |   |  |                   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                    |   |  |                   |  |                    |  
|Accounts payable and accrued expenses             |  |               |  |                   |  | 84                  |   |  |                   |  | 51                 |   |  |                   |  | 19                 |   |  |                    |  |                   |   |  |                    |   |  |                   |  | 289                 |  
|Accrued interest                                  |  |               |  |                   |  |                    |   |  |                   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                    |   |  |                   |  |                    |  
|Due to Interstate Hotels & Resorts                |  |               |  |                   |  |                    |   |  |                   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                    |   |  |                   |  |                    |  
|Other liabilities                                 |  |               |  |                   |  |                    |   |  |                   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                    |   |  |                   |  |                    |  
|                                                  |  |                |  |                    |  |                     |   |  |                    |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                     |   |  |                    |  |                     |  
|                                                  |  |               |  |                   |  | 84                  |   |  |                   |  | 51                 |   |  |                   |  | 19                 |   |  |                    |  |                   |   |  |                    |   |  |                   |  | 289                 |  
|                                                  |  |                |  |                    |  |                     |   |  |                    |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                     |   |  |                    |  |                     |  
|Minority interests                                |  |               |  |                   |  |                    |   |  |                   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                    |   |  |                   |  |                    |  
|Redeemable OP units at redemption value           |  |               |  |                   |  |                    |   |  |                   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                    |   |  |                   |  |                    |  
|Partners capital - Common OP units               |  |               |  |                   |  | 32,311              |   |  | 21,531             |  | 28,304             |   |  |                   |  | 10,869             |   |  |                    |  | (2,360             | ) |  | 16,929              |   |  |                   |  | 180,022             |  
|                                                  |  |                |  |                    |  |                     |   |  |                    |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                     |   |  |                    |  |                     |  
|                                                  |  |               |  |                   |  | 32,395              |   |  | 21,531             |  | 28,355             |   |  |                   |  | 10,888             |   |  |                    |  | (2,360             | ) |  | 16,929              |   |  |                   |  | 180,311             |  
|                                                  |  |                |  |                    |  |                     |   |  |                    |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                     |   |  |                    |  |                     |  



5



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Balance Sheet

March 31, 2005

(Dollars in thousands)



|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                          |   |  |                    |  |                    |  |                   
|------------------------------------------------- |  | ------------------ | - |  | ------------------ | - |  | ------------------ | - |  | ------------------ | - |  | ------------------ | - |  | ------------------ |  | ------------------ | - |  | ------------------------ | - |  | ------------------ |  | ------------------ |  | ------------------
|                                                  |  | MeriStarSub 5N,LLC |   |  | MeriStarSub 5P,LLC |   |  | MeriStarSub 5J,LLC |   |  | MeriStarSub 5Q,LLC |   |  | MeriStarSub 5A,LLC |   |  | MeriStarSub 8D,LLC |  | MeriStarSub 4J,LLC |   |  | MeristarPentagonCity,LLC |   |  | MeriStarSub 6K,LLC |  | MeriStarSub 5E,LLC |  | MeriStarSub 6I,LLC
|Assets                                            |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                          |   |  |                    |  |                    |  |                   
|Property and equipment                            |  | 3,898              |   |  | 39                 |   |  | 83,616             |   |  | 15,131             |   |  | 37,544             |   |  |                   |  | 42,637             |   |  | 93,559                   |   |  |                   |  |                   |  |                  
|Accumulated depreciation                          |  | (467               | ) |  | (29                | ) |  | (15,730            | ) |  | (2,435             | ) |  | (12,037            | ) |  |                   |  | (8,717             | ) |  | (4,782                   | ) |  |                   |  |                   |  |                  
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                          |   |  |                    |  |                    |  |                   
|                                                  |  | 3,431              |   |  | 10                 |   |  | 67,886             |   |  | 12,696             |   |  | 25,507             |   |  |                   |  | 33,920             |   |  | 88,777                   |   |  |                   |  |                   |  |                  
|Investments in affiliates                         |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  | 4,627              |   |  |                   |  |                   |   |  |                         |   |  |                   |  |                   |  |                  
|Prepaid expenses and other assets                 |  | (52                | ) |  | (11                | ) |  | (891               | ) |  | (156               | ) |  | (90                | ) |  |                   |  | (58                | ) |  | 423                      |   |  |                   |  |                   |  |                  
|Insurance claim receivable                        |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                         |   |  |                   |  |                   |  |                  
|Accounts receivable, net                          |  |                   |   |  | 38                 |   |  | 2                  |   |  |                   |   |  |                   |   |  |                   |  | (14                | ) |  | (908                     | ) |  |                   |  |                   |  |                  
|Due to/from subsidiaries                          |  | 4,695              |   |  | 3,809              |   |  | 47,765             |   |  | 7,519              |   |  | 8,514              |   |  |                   |  | 5,962              |   |  | 60,732                   |   |  |                   |  |                   |  |                  
|Note receivable from subsidiaries                 |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                         |   |  |                   |  |                   |  |                  
|Restricted cash                                   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                         |   |  |                   |  |                   |  |                  
|Cash and cash equivalents                         |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                         |   |  |                   |  |                   |  |                  
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                          |   |  |                    |  |                    |  |                   
|                                                  |  | 8,074              |   |  | 3,846              |   |  | 114,762            |   |  | 20,059             |   |  | 38,558             |   |  |                   |  | 39,810             |   |  | 149,024                  |   |  |                   |  |                   |  |                  
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                          |   |  |                    |  |                    |  |                   
|Liabilities and Partners Capital                 |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                          |   |  |                    |  |                    |  |                   
|Long-term debt                                    |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  | 23,609             |   |  |                   |  |                   |   |  | 55,330                   |   |  |                   |  |                   |  |                  
|Notes payable to MeriStar Hospitality Corporation |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                         |   |  |                   |  |                   |  |                  
|Accounts payable and accrued expenses             |  | 22                 |   |  |                   |   |  | 362                |   |  | 12                 |   |  | 283                |   |  |                   |  | 97                 |   |  | 545                      |   |  |                   |  |                   |  |                  
|Accrued interest                                  |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  | 267                      |   |  |                   |  |                   |  |                  
|Due to Interstate Hotels & Resorts                |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                         |   |  |                   |  |                   |  |                  
|Other liabilities                                 |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                         |   |  |                   |  |                   |  |                  
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                          |   |  |                    |  |                    |  |                   
|                                                  |  | 22                 |   |  |                   |   |  | 362                |   |  | 12                 |   |  | 23,892             |   |  |                   |  | 97                 |   |  | 56,142                   |   |  |                   |  |                   |  |                  
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                          |   |  |                    |  |                    |  |                   
|Minority interests                                |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                         |   |  |                   |  |                   |  |                  
|Redeemable OP units at redemption value           |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                         |   |  |                   |  |                   |  |                  
|Partners capital - Common OP units               |  | 8,052              |   |  | 3,846              |   |  | 114,400            |   |  | 20,047             |   |  | 14,666             |   |  |                   |  | 39,713             |   |  | 92,882                   |   |  |                   |  |                   |  |                  
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                          |   |  |                    |  |                    |  |                   
|                                                  |  | 8,074              |   |  | 3,846              |   |  | 114,762            |   |  | 20,059             |   |  | 38,558             |   |  |                   |  | 39,810             |   |  | 149,024                  |   |  |                   |  |                   |  |                  
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                          |   |  |                    |  |                    |  |                   



6



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Balance Sheet

March 31, 2005

(Dollars in thousands)



|                                                  |  |                    |  |                                |  |                                 |  |                    |  |                    |  |                          |  |                       |  |                            |  |                           |  |                  
|------------------------------------------------- |  | ------------------ |  | ------------------------------ |  | ------------------------------- |  | ------------------ |  | ------------------ |  | ------------------------ |  | --------------------- |  | -------------------------- |  | ------------------------- |  | -----------------
|                                                  |  | MeriStarSub 5I,LLC |  | CapStarCherry HillCompany, LLC |  | MeristarAcquisitionCompany, LLC |  | MeriStarSub 6A,LLC |  | MeriStarSub 6F,LLC |  | MeriStarHotelLessee,Inc. |  | GuarantorEliminations |  | GuarantorSubsidiariesTotal |  | ConsolidationEliminations |  | TotalConsolidated
|Assets                                            |  |                    |  |                                |  |                                 |  |                    |  |                    |  |                          |  |                       |  |                            |  |                           |  |                  
|Property and equipment                            |  |                   |  |                               |  |                                |  |                   |  |                   |  | 3,312                    |  |                      |  | 1,108,753                  |  |                          |  | $2,637,362       
|Accumulated depreciation                          |  |                   |  |                               |  |                                |  |                   |  |                   |  | (3,384)                  |  |                      |  | (214,877)                  |  |                          |  | (530,049)        
|                                                  |  |                    |  |                                |  |                                 |  |                    |  |                    |  |                          |  |                       |  |                            |  |                           |  |                  
|                                                  |  |                   |  |                               |  |                                |  |                   |  |                   |  | (72)                     |  |                      |  | 893,876                    |  |                          |  | 2,107,313        
|Investments in affiliates                         |  |                   |  |                               |  |                                |  |                   |  |                   |  | 43,219                   |  | (41,590)              |  | 110,496                    |  | (2,454,666)               |  | 70,451           
|Prepaid expenses and other assets                 |  |                   |  |                               |  |                                |  |                   |  |                   |  | 10,411                   |  | 10                    |  | 7,765                      |  |                          |  | 34,045           
|Insurance claim receivable                        |  |                   |  |                               |  |                                |  |                   |  |                   |  |                         |  |                      |  |                           |  |                          |  | 60,896           
|Accounts receivable, net                          |  |                   |  |                               |  |                                |  |                   |  |                   |  | 38,395                   |  |                      |  | 39,412                     |  | (12,684)                  |  | 40,506           
|Due to/from subsidiaries                          |  |                   |  |                               |  |                                |  |                   |  |                   |  | 45,964                   |  | (1,670)               |  | 593,495                    |  |                          |  |                 
|Note receivable from subsidiaries                 |  |                   |  |                               |  |                                |  |                   |  |                   |  |                         |  |                      |  |                           |  | (259,065)                 |  |                 
|Restricted cash                                   |  |                   |  |                               |  |                                |  |                   |  |                   |  | 542                      |  |                      |  | 3,542                      |  |                          |  | 62,946           
|Cash and cash equivalents                         |  |                   |  |                               |  |                                |  |                   |  |                   |  | 28,892                   |  |                      |  | 28,892                     |  |                          |  | 53,863           
|                                                  |  |                    |  |                                |  |                                 |  |                    |  |                    |  |                          |  |                       |  |                            |  |                           |  |                  
|                                                  |  |                   |  |                               |  |                                |  |                   |  |                   |  | 167,351                  |  | (43,250)              |  | 1,677,478                  |  | (2,726,415)               |  | $2,430,020       
|                                                  |  |                    |  |                                |  |                                 |  |                    |  |                    |  |                          |  |                       |  |                            |  |                           |  |                  
|Liabilities and Partners' Capital                 |  |                    |  |                                |  |                                 |  |                    |  |                    |  |                          |  |                       |  |                            |  |                           |  |                  
|Long-term debt                                    |  |                   |  |                               |  |                                |  |                   |  |                   |  | 211,456                  |  |                      |  | 352,073                    |  | (259,065)                 |  | $1,397,649       
|Notes payable to MeriStar Hospitality Corporation |  |                   |  |                               |  |                                |  |                   |  |                   |  |                         |  |                      |  |                           |  |                          |  | 202,528          
|Accounts payable and accrued expenses             |  |                   |  |                               |  |                                |  |                   |  |                   |  | 45,319                   |  |                      |  | 50,347                     |  |                          |  | 66,144           
|Accrued interest                                  |  |                   |  |                               |  |                                |  |                   |  |                   |  | 12,684                   |  |                      |  | 12,951                     |  | (12,684)                  |  | 35,812           
|Due to Interstate Hotels & Resorts                |  |                   |  |                               |  |                                |  |                   |  |                   |  | 6,437                    |  |                      |  | 6,237                      |  |                          |  | 18,045           
|Other liabilities                                 |  |                   |  |                               |  |                                |  |                   |  |                   |  | 8,116                    |  |                      |  | 8,116                      |  |                          |  | 20,246           
|                                                  |  |                    |  |                                |  |                                 |  |                    |  |                    |  |                          |  |                       |  |                            |  |                           |  |                  
|                                                  |  |                   |  |                               |  |                                |  |                   |  |                   |  | 284,012                  |  |                      |  | 429,724                    |  | (271,749)                 |  | 1,740,424        
|                                                  |  |                    |  |                                |  |                                 |  |                    |  |                    |  |                          |  |                       |  |                            |  |                           |  |                  
|Minority interests                                |  |                   |  |                               |  |                                |  |                   |  |                   |  |                         |  |                      |  |                           |  |                          |  | 2,422            
|Redeemable OP units at redemption value           |  |                   |  |                               |  |                                |  |                   |  |                   |  |                         |  |                      |  |                           |  |                          |  | 16,085           
|Partners' capitalCommon OP units                 |  |                   |  |                               |  |                                |  |                   |  |                   |  | (116,661)                |  | (43,250)              |  | 1,247,754                  |  | (2,454,666)               |  | 671,089          
|                                                  |  |                    |  |                                |  |                                 |  |                    |  |                    |  |                          |  |                       |  |                            |  |                           |  |                  
|                                                  |  |                   |  |                               |  |                                |  |                   |  |                   |  | 167,351                  |  | (43,250)              |  | 1,677,478                  |  | (2,726,415)               |  | $2,430,020       
|                                                  |  |                    |  |                                |  |                                 |  |                    |  |                    |  |                          |  |                       |  |                            |  |                           |  |                  



7



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Balance Sheet

December 31, 2004

(Dollars in thousands)



|                                                  |  |                             |            |   |                           |           |   |                               |        |                               |        |                    |    |                    |    |              |       |                     |        |   |                     |        |   |                    |         |   |                    |        |   |                    |        |   |                    |        |  
|------------------------------------------------- |  | --------------------------- | ---------- | - | ------------------------- | --------- | - | ----------------------------- | ------ | ----------------------------- | ------ | ------------------ | -- | ------------------ | -- | ------------ | ----- | ------------------- | ------ | - | ------------------- | ------ | - | ------------------ | ------- | - | ------------------ | ------ | - | ------------------ | ------ | - | ------------------ | ------ | -
|                                                  |  | MeriStarHospitalityOP, L.P. |            |   | Non-GuarantorSubsidiaries |           |   | MeriStarLexingtonMortgage,LLC |        | MeriStarLexingtonPartners,LLC |        | MeriStarSub 7C,LLC |    | MeriStarSub 8G,LLC |    | AGHUPREITLLC |       | MeriStarSub 6H,L.P. |        |   | MeriStarSub 8F,L.P. |        |   | MeriStarSub 8B,LLC |         |   | MeriStarSub 1C,LLC |        |   | MeriStarSub 8E,LLC |        |   | MeriStarSub 7F,LLC |       
|Assets                                            |  |                             |            |   |                           |           |   |                               |        |                               |        |                    |    |                    |    |              |       |                     |        |   |                     |        |   |                    |         |   |                    |        |   |                    |        |   |                    |        |  
|Property and equipment                            |  | $                           | 22,301     |   |                           | 1,476,952 |   |                               |       |                               |       |                    |   |                    |   |              |      |                     | 10,885 |   |                     | 13,687 |   |                    | 88,943  |   |                    | 27,485 |   |                    | 16,028 |   |                    | 10,034 |  
|Accumulated depreciation                          |  |                             | (14,642    | ) |                           | (286,652  | ) |                               |       |                               |       |                    |   |                    |   |              |      |                     | (783   | ) |                     | (3,179 | ) |                    | (14,741 | ) |                    | (7,319 | ) |                    | (3,618 | ) |                    | (413   | )
|                                                  |  |                             |            |   |                           |           |   |                               |        |                               |        |                    |    |                    |    |              |       |                     |        |   |                     |        |   |                    |         |   |                    |        |   |                    |        |   |                    |        |  
|                                                  |  |                             | 7,659      |   |                           | 1,190,300 |   |                               |       |                               |       |                    |   |                    |   |              |      |                     | 10,102 |   |                     | 10,508 |   |                    | 74,202  |   |                    | 20,166 |   |                    | 12,410 |   |                    | 9,621  |  
|                                                  |  |                             |            |   |                           |           |   |                               |        |                               |        |                    |   
|Investments in affiliates                         |  |                             | 2,492,499  |   |                           | 7,992     |   |                               | 40,661 |                               | 9,487  |                    | 32 |                    | 72 |              | 2,989 |                     |       |   |                     |       |   |                    |        |   |                    |       |   |                    |       |   |                    |       |  
|Prepaid expenses and other assets                 |  |                             | 31,287     |   |                           | (3,841    | ) |                               |       |                               |       |                    |   |                    |   |              |      |                     | (11    | ) |                     | (81    | ) |                    | (101    | ) |                    | (190   | ) |                    | (26    | ) |                    | (12    | )
|Insurance claim receivable                        |  |                             | 76,056     |   |                           |          |   |                               |       |                               |       |                    |   |                    |   |              |      |                     |       |   |                     |       |   |                    |        |   |                    |       |   |                    |       |   |                    |       |  
|Accounts receivable, net                          |  |                             | 9,596      |   |                           | 1,054     |   |                               |       |                               |       |                    |   |                    |   |              |      |                     |       |   |                     |       |   |                    |        |   |                    |       |   |                    |       |   |                    |       |  
|Due to/from subsidiaries                          |  |                             | (1,106,110 | ) |                           | 522,427   |   |                               | 1,181  |                               | 750    |                    |   |                    | 9  |              | 73    |                     | 7,830  |   |                     | 6,748  |   |                    | 31,376  |   |                    | (4,175 | ) |                    | 7,517  |   |                    | 3,135  |  
|Note receivable from subsidiaries                 |  |                             | 221,704    |   |                           |          |   |                               |       |                               |       |                    |   |                    |   |              |      |                     |       |   |                     |       |   |                    |        |   |                    |       |   |                    |       |   |                    |       |  
|Restricted cash                                   |  |                             | 55,754     |   |                           | 1,346     |   |                               |       |                               |       |                    |   |                    |   |              |      |                     |       |   |                     |       |   |                    |        |   |                    |       |   |                    |       |   |                    |       |  
|Cash and cash equivalents                         |  |                             | 41,224     |   |                           |          |   |                               |       |                               |       |                    |   |                    |   |              |      |                     |       |   |                     |       |   |                    |        |   |                    |       |   |                    |       |   |                    |       |  
|                                                  |  |                             |            |   |                           |           |   |                               |        |                               |        |                    |    |                    |    |              |       |                     |        |   |                     |        |   |                    |         |   |                    |        |   |                    |        |   |                    |        |  
|                                                  |  | $                           | 1,829,669  |   |                           | 1,719,278 |   |                               | 41,842 |                               | 10,237 |                    | 32 |                    | 81 |              | 3,062 |                     | 17,921 |   |                     | 17,175 |   |                    | 105,477 |   |                    | 15,801 |   |                    | 19,901 |   |                    | 12,744 |  
|                                                  |  |                             |            |   |                           |           |   |                               |        |                               |        |                    |    |                    |    |              |       |                     |        |   |                     |        |   |                    |         |   |                    |        |   |                    |        |   |                    |        |  
|Liabilities and Partners Capital                 |  |                             |            |   |                           |           |   |                               |        |                               |        |                    |    |                    |    |              |       |                     |        |   |                     |        |   |                    |         |   |                    |        |   |                    |        |  
|Long-term debt                                    |  | $                           | 841,976    |   |                           | 471,781   |   |                               |       |                               |       |                    |   |                    |   |              |      |                     |       |   |                     |       |   |                    |        |   |                    |       |   |                    |       |   |                    |       |  
|Notes payable to MeriStar Hospitality Corporation |  |                             | 203,977    |   |                           |          |   |                               |       |                               |       |                    |   |                    |   |              |      |                     |       |   |                     |       |   |                    |        |   |                    |       |   |                    |       |   |                    |       |  
|Accounts payable and accrued expenses             |  |                             | 14,777     |   |                           | 5,128     |   |                               |       |                               |       |                    |   |                    |   |              |      |                     |       |   |                     | 6      |   |                    |        |   |                    | 59     |   |                    |       |   |                    | 153    |  
|Accrued interest                                  |  |                             | 38,683     |   |                           | 2,214     |   |                               |       |                               |       |                    |   |                    |   |              |      |                     |       |   |                     |       |   |                    |        |   |                    |       |   |                    |       |   |                    |       |  
|Due to Interstate Hotels & Resorts                |  |                             | 11,347     |   |                           |          |   |                               |       |                               |       |                    |   |                    |   |              |      |                     |       |   |                     |       |   |                    |        |   |                    |       |   |                    |       |   |                    |       |  
|Other liabilities                                 |  |                             | 5,382      |   |                           |          |   |                               |       |                               |       |                    |   |                    |   |              |      |                     |       |   |                     |       |   |                    |        |   |                    |       |   |                    |       |   |                    |       |  
|                                                  |  |                             |            |   |                           |           |   |                               |        |                               |        |                    |    |                    |    |              |       |                     |        |   |                     |        |   |                    |         |   |                    |        |   |                    |        |   |                    |        |  
|                                                  |  |                             | 1,116,142  |   |                           | 479,123   |   |                               |       |                               |       |                    |   |                    |   |              |      |                     |       |   |                     | 6      |   |                    |        |   |                    | 59     |   |                    |       |   |                    | 153    |  
|                                                  |  |                             |            |   |                           |           |   |                               |        |                               |        |                    |    |                    |    |              |       |                     |        |   |                     |        |   |                    |         |   |                    |        |   |                    |        |   |                    |        |  
|Minority interests                                |  |                             | 2,418      |   |                           |          |   |                               |       |                               |       |                    |   |                    |   |              |      |                     |       |   |                     |       |   |                    |        |   |                    |       |   |                    |       |   |                    |       |  
|Redeemable OP units at redemption value           |  |                             | 19,187     |   |                           |          |   |                               |       |                               |       |                    |   |                    |   |              |      |                     |       |   |                     |       |   |                    |        |   |                    |       |   |                    |       |   |                    |       |  
|Partners capital - Common OP units               |  |                             | 691,922    |   |                           | 1,240,155 |   |                               | 41,842 |                               | 10,237 |                    | 32 |                    | 81 |              | 3,062 |                     | 17,921 |   |                     | 17,169 |   |                    | 105,477 |   |                    | 15,742 |   |                    | 19,901 |   |                    | 12,591 |  
|                                                  |  |                             |            |   |                           |           |   |                               |        |                               |        |                    |    |                    |    |              |       |                     |        |   |                     |        |   |                    |         |   |                    |        |   |                    |        |   |                    |        |  
|                                                  |  | $                           | 1,829,669  |   |                           | 1,719,278 |   |                               | 41,842 |                               | 10,237 |                    | 32 |                    | 81 |              | 3,062 |                     | 17,921 |   |                     | 17,175 |   |                    | 105,477 |   |                    | 15,801 |   |                    | 19,901 |   |                    | 12,744 |  
|                                                  |  |                             |            |   |                           |           |   |                               |        |                               |        |                    |    |                    |    |              |       |                     |        |   |                     |        |   |                    |         |   |                    |        |   |                    |        |   |                    |        |  



8



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Balance Sheet

December 31, 2004

(Dollars in thousands)



|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                    |  |                     |  |                    
|------------------------------------------------- |  | ------------------ | - |  | ------------------ | - |  | ------------------ | - |  | ------------------ |  | ------------------ | - |  | ------------------ | - |  | ------------------- | - |  | ------------------ | - |  | ------------------- | - |  | ------------------ | - |  | ------------------ |  | ------------------- |  | -------------------
|                                                  |  | MeriStarSub 5L,LLC |   |  | MeriStarSub 3C,LLC |   |  | MeriStarSub 5R,LLC |   |  | MeriStarSub 8A,LLC |  | MeriStarSub 6D,LLC |   |  | MeriStarSub 6E,LLC |   |  | MeriStarSub 4E,L.P. |   |  | MeriStarSub 1B,LLC |   |  | MeriStarSub 5F,L.P. |   |  | MeriStarSub 6G,LLC |   |  | MeriStarSub 8C,LLC |  | MeriStarSub 4C,L.P. |  | MeriStarSub 4H,L.P.
|Assets                                            |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                    |  |                     |  |                    
|Property and equipment                            |  | 11,800             |   |  | 17,581             |   |  |                   |   |  |                   |  | 18,367             |   |  | 49,971             |   |  |                    |   |  | 20,404             |   |  | 18,560              |   |  | 24,167             |   |  |                   |  |                    |  | 1                  
|Accumulated depreciation                          |  | (723               | ) |  | (4,384             | ) |  |                   |   |  |                   |  | (3,377             | ) |  | (11,560            | ) |  | (1                  | ) |  | (4,557             | ) |  | (591                | ) |  | (5,738             | ) |  |                   |  |                    |  |                   
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                    |  |                     |  |                    
|                                                  |  | 11,077             |   |  | 13,197             |   |  |                   |   |  |                   |  | 14,990             |   |  | 38,411             |   |  | (1                  | ) |  | 15,847             |   |  | 17,969              |   |  | 18,429             |   |  |                   |  |                    |  | 1                  
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                   
|Investments in affiliates                         |  |                   |   |  |                   |   |  | 43                 |   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                    |  |                   
|Prepaid expenses and other assets                 |  | (77                | ) |  | 2                  |   |  |                   |   |  |                   |  | (21                | ) |  | (93                | ) |  |                    |   |  | (83                | ) |  | (178                | ) |  | (35                | ) |  |                   |  |                    |  |                   
|Insurance claim receivable                        |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                    |  |                   
|Accounts receivable, net                          |  |                   |   |  |                   |   |  |                   |   |  |                   |  | 124                |   |  |                   |   |  | 64                  |   |  | 96                 |   |  |                    |   |  |                   |   |  |                   |  |                    |  |                   
|Due to/from subsidiaries                          |  | 5,022              |   |  | 6,581              |   |  | (43                | ) |  |                   |  | 9,328              |   |  | 22,758             |   |  | 7,015               |   |  | 15,571             |   |  | 12,510              |   |  | 8,688              |   |  | 11,439             |  |                    |  | 3,413              
|Note receivable from subsidiaries                 |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                    |  |                   
|Restricted cash                                   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                    |  |                   
|Cash and cash equivalents                         |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                    |  |                   
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                    |  |                     |  |                    
|                                                  |  | 16,022             |   |  | 19,780             |   |  |                   |   |  |                   |  | 24,421             |   |  | 61,076             |   |  | 7,078               |   |  | 31,431             |   |  | 30,301              |   |  | 27,082             |   |  | 11,439             |  |                    |  | 3,414              
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                    |  |                     |  |                    
|Liabilities and Partners Capital                 |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                    |  |                     |  |                    
|Long-term debt                                    |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                   |   |  |                    |   |  | 33                 |   |  |                    |   |  |                   |   |  |                   |  |                    |  |                   
|Notes payable to MeriStar Hospitality Corporation |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                    |  |                   
|Accounts payable and accrued expenses             |  | 1                  |   |  | 211                |   |  |                   |   |  |                   |  | (21                | ) |  | (20                | ) |  | 5                   |   |  | (7                 | ) |  | (4                  | ) |  | 61                 |   |  |                   |  |                    |  |                   
|Accrued interest                                  |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                    |  |                   
|Due to Interstate Hotels & Resorts                |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                    |  |                   
|Other liabilities                                 |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                    |  |                   
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                    |  |                     |  |                    
|                                                  |  | 1                  |   |  | 211                |   |  |                   |   |  |                   |  | (21                | ) |  | (20                | ) |  | 5                   |   |  | 26                 |   |  | (4                  | ) |  | 61                 |   |  |                   |  |                    |  |                   
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                    |  |                     |  |                    
|Minority interests                                |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                    |  |                   
|Redeemable OP units at redemption value           |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                    |  |                   
|Partners capital - Common OP units               |  | 16,021             |   |  | 19,569             |   |  |                   |   |  |                   |  | 24,442             |   |  | 61,096             |   |  | 7,073               |   |  | 31,405             |   |  | 30,305              |   |  | 27,021             |   |  | 11,439             |  |                    |  | 3,414              
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                    |  |                     |  |                    
|                                                  |  | 16,022             |   |  | 19,780             |   |  |                   |   |  |                   |  | 24,421             |   |  | 61,076             |   |  | 7,078               |   |  | 31,431             |   |  | 30,301              |   |  | 27,082             |   |  | 11,439             |  |                    |  | 3,414              
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                    |  |                     |  |                    



9



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Balance Sheet

December 31, 2004

(Dollars in thousands)



|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                            |   |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |   |  |                    |  |                    |  
|------------------------------------------------- |  | ------------------ | - |  | ------------------ | - |  | ------------------ | - |  | -------------------------- | - |  | ------------------ |  | ------------------ |  | ----------------- |  | ------------------ |  | ------------------ |  | ------------------ |  | --------------------- | - |  | ------------------ |  | ------------------ | -
|                                                  |  | MeriStarSub 7E,LLC |   |  | MeriStarSub 3D,LLC |   |  | MeriStarSub 1A,LLC |   |  | MeriStarSub 7AJointVenture |   |  | MeriStarSub 2B,LLC |  | MeriStarSub 3A,LLC |  | MeriStarSub 4A,LP |  | MeriStarSub 4D,LLC |  | MeriStarSub 2A,LLC |  | MeriStarSub 6L,LLC |  | MDVLimitedPartnership |   |  | MeriStarSub 5C,LLC |  | MeriStarSub 6J,LLC |  
|Assets                                            |  |                    |   |  |                    |   |  |                    |   |  |                            |   |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |   |  |                    |  |                    |  
|Property and equipment                            |  | 20,118             |   |  | 22,986             |   |  | 5,500              |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  | 3,955                 |   |  |                   |  | 19,976             |  
|Accumulated depreciation                          |  | (3,974             | ) |  | (7,740             | ) |  | (2                 | ) |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  | (840                  | ) |  |                   |  | (4,320             | )
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                            |   |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |   |  |                    |  |                    |  
|                                                  |  | 16,144             |   |  | 15,246             |   |  | 5,498              |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  | 3,115                 |   |  |                   |  | 15,656             |  
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                            |   | 
|Investments in affiliates                         |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |   |  |                   |  |                   |  
|Prepaid expenses and other assets                 |  | (22                | ) |  | (43                | ) |  | (96                | ) |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  | (24                   | ) |  |                   |  | (6                 | )
|Insurance claim receivable                        |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |   |  |                   |  |                   |  
|Accounts receivable, net                          |  |                   |   |  |                   |   |  |                   |   |  | (44                        | ) |  |                   |  |                   |  |                  |  |                   |  |                   |  | 178                |  |                      |   |  |                   |  |                   |  
|Due to/from subsidiaries                          |  | 6,024              |   |  | 9,411              |   |  | 8,518              |   |  | 9,944                      |   |  |                   |  | 4,976              |  | 7,612             |  |                   |  |                   |  | 20,297             |  | 2,879                 |   |  |                   |  | 9,835              |  
|Note receivable from subsidiaries                 |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |   |  |                   |  |                   |  
|Restricted cash                                   |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |   |  |                   |  |                   |  
|Cash and cash equivalents                         |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |   |  |                   |  |                   |  
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                            |   |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |   |  |                    |  |                    |  
|                                                  |  | 22,146             |   |  | 24,614             |   |  | 13,920             |   |  | 9,900                      |   |  |                   |  | 4,976              |  | 7,612             |  |                   |  |                   |  | 20,475             |  | 5,970                 |   |  |                   |  | 25,485             |  
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                            |   |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |   |  |                    |  |                    |  
|Liabilities and Partners Capital                 |  |                    |   |  |                    |   |  |                    |   |  |                            |   |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |   |  |                    |  |                    |  
|Long-term debt                                    |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |   |  |                   |  |                   |  
|Notes payable to MeriStar Hospitality Corporation |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |   |  |                   |  |                   |  
|Accounts payable and accrued expenses             |  | 88                 |   |  |                   |   |  | 2                  |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  | 75                    |   |  |                   |  | 59                 |  
|Accrued interest                                  |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |   |  |                   |  |                   |  
|Due to Interstate Hotels & Resorts                |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |   |  |                   |  |                   |  
|Other liabilities                                 |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |   |  |                   |  |                   |  
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                            |   |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |   |  |                    |  |                    |  
|                                                  |  | 88                 |   |  |                   |   |  | 2                  |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  | 75                    |   |  |                   |  | 59                 |  
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                            |   |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |   |  |                    |  |                    |  
|Minority interests                                |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |   |  |                   |  |                   |  
|Redeemable OP units at redemption value           |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |   |  |                   |  |                   |  
|Partners capital - Common OP units               |  | 22,058             |   |  | 24,614             |   |  | 13,918             |   |  | 9,900                      |   |  |                   |  | 4,976              |  | 7,612             |  |                   |  |                   |  | 20,475             |  | 5,895                 |   |  |                   |  | 25,426             |  
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                            |   |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |   |  |                    |  |                    |  
|                                                  |  | 22,146             |   |  | 24,614             |   |  | 13,920             |   |  | 9,900                      |   |  |                   |  | 4,976              |  | 7,612             |  |                   |  |                   |  | 20,475             |  | 5,970                 |   |  |                   |  | 25,485             |  
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                            |   |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |   |  |                    |  |                    |  



10



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Balance Sheet

December 31, 2004

(Dollars in thousands)



|                                                  |  |                    |   |  |                     |   |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                    |  |                     |   |  |                   
|------------------------------------------------- |  | ------------------ | - |  | ------------------- | - |  | ------------------ | - |  | ------------------ |  | ------------------ | - |  | ------------------- |  | ------------------ | - |  | ------------------ |  | ------------------ |  | ------------- |  | ------------------ |  | ------------------- | - |  | ------------------
|                                                  |  | MeriStarSub 1D,LLC |   |  | MeriStarSub 7B,L.P. |   |  | MeriStarSub 7D,LLC |   |  | MeriStarSub 7G,LLC |  | MeriStarSub 6B,LLC |   |  | MeriStarSub 4I,L.P. |  | MeriStarSub 5D,LLC |   |  | MeriStarSub 5H,LLC |  | MeriStarSub 7H,LLC |  | AGHPSS I,Inc. |  | MeriStarSub 2D,LLC |  | MeriStarSub 4F,L.P. |   |  | MeriStarSub 5K,LLC
|Assets                                            |  |                    |   |  |                     |   |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                    |  |                     |   |  |                   
|Property and equipment                            |  | 69,500             |   |  |                    |   |  | 55,081             |   |  |                   |  | 11,877             |   |  |                    |  | 42,467             |   |  |                   |  |                   |  |              |  |                   |  | 35,341              |   |  |                  
|Accumulated depreciation                          |  | (14,321            | ) |  |                    |   |  | (11,258            | ) |  |                   |  | (2,636             | ) |  |                    |  | (9,533             | ) |  |                   |  |                   |  |              |  |                   |  | (6,923              | ) |  |                  
|                                                  |  |                    |   |  |                     |   |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                    |  |                     |   |  |                   
|                                                  |  | 55,179             |   |  |                    |   |  | 43,823             |   |  |                   |  | 9,241              |   |  |                    |  | 32,934             |   |  |                   |  |                   |  |              |  |                   |  | 28,418              |   |  |                  
|                                                  |  |                    |   |  |                     |   |  |                    |   |  |                    |  |                   
|Investments in affiliates                         |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                   |   |  |                    |  | 51,368             |   |  |                   |  |                   |  |              |  |                   |  |                    |   |  |                  
|Prepaid expenses and other assets                 |  | (550               | ) |  |                    |   |  | 46                 |   |  |                   |  | (14                | ) |  |                    |  | (77                | ) |  |                   |  |                   |  |              |  |                   |  | (10                 | ) |  |                  
|Insurance claim receivable                        |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                   |  |                    |   |  |                  
|Accounts receivable, net                          |  |                   |   |  |                    |   |  | 1,169              |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                   |  |                    |   |  |                  
|Due to/from subsidiaries                          |  | 22,849             |   |  | (262                | ) |  | 26,640             |   |  | 2,370              |  | 2,976              |   |  |                    |  | (6,151             | ) |  |                   |  |                   |  |              |  |                   |  | 4,108               |   |  | 21,531            
|Note receivable from subsidiaries                 |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                   |  |                    |   |  |                  
|Restricted cash                                   |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                   |  |                    |   |  |                  
|Cash and cash equivalents                         |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                   |  |                    |   |  |                  
|                                                  |  |                    |   |  |                     |   |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                    |  |                     |   |  |                   
|                                                  |  | 77,478             |   |  | (262                | ) |  | 71,678             |   |  | 2,370              |  | 12,203             |   |  |                    |  | 78,074             |   |  |                   |  |                   |  |              |  |                   |  | 32,516              |   |  | 21,531            
|                                                  |  |                    |   |  |                     |   |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                    |  |                     |   |  |                   
|Liabilities and Partners Capital                 |  |                    |   |  |                     |   |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                    |  |                     |   |  |                   
|Long-term debt                                    |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                   |   |  |                    |  | 24,000             |   |  |                   |  |                   |  |              |  |                   |  |                    |   |  |                  
|Notes payable to MeriStar Hospitality Corporation |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                   |  |                    |   |  |                  
|Accounts payable and accrued expenses             |  |                   |   |  |                    |   |  | 2,381              |   |  |                   |  | (125               | ) |  |                    |  | 165                |   |  |                   |  |                   |  |              |  |                   |  | 334                 |   |  |                  
|Accrued interest                                  |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                   |  |                    |   |  |                  
|Due to Interstate Hotels & Resorts                |  |                   |   |  |                    |   |  | (200               | ) |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                   |  |                    |   |  |                  
|Other liabilities                                 |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                   |  |                    |   |  |                  
|                                                  |  |                    |   |  |                     |   |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                    |  |                     |   |  |                   
|                                                  |  |                   |   |  |                    |   |  | 2,181              |   |  |                   |  | (125               | ) |  |                    |  | 24,165             |   |  |                   |  |                   |  |              |  |                   |  | 334                 |   |  |                  
|                                                  |  |                    |   |  |                     |   |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                    |  |                     |   |  |                   
|Minority interests                                |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                   |  |                    |   |  |                  
|Redeemable OP units at redemption value           |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                   |  |                    |   |  |                  
|Partners capital - Common OP units               |  | 77,478             |   |  | (262                | ) |  | 69,497             |   |  | 2,370              |  | 12,328             |   |  |                    |  | 53,909             |   |  |                   |  |                   |  |              |  |                   |  | 32,182              |   |  | 21,531            
|                                                  |  |                    |   |  |                     |   |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                    |  |                     |   |  |                   
|                                                  |  | 77,478             |   |  | (262                | ) |  | 71,678             |   |  | 2,370              |  | 12,203             |   |  |                    |  | 78,074             |   |  |                   |  |                   |  |              |  |                   |  | 32,516              |   |  | 21,531            
|                                                  |  |                    |   |  |                     |   |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                    |  |                     |   |  |                   



11



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Balance Sheet

December 31, 2004

(Dollars in thousands)



|                                                  |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                     |   |  |                    |  |                     |   |  |                    |   |  |                    |  
|------------------------------------------------- |  | ------------------ | - |  | ------------------ |  | ------------------ | - |  | ------------------- |  | ------------------ | - |  | ------------------- | - |  | ------------------ |  | ------------------- | - |  | ------------------ | - |  | ------------------ | -
|                                                  |  | MeriStarSub 5M,LLC |   |  | MeriStarSub 1E,LLC |  | MeriStarSub 5O,LLC |   |  | MeriStarSub 4B,L.P. |  | MeriStarSub 2C,LLC |   |  | MeriStarSub 4G,L.P. |   |  | MeriStarSub 3B,LLC |  | MeriStarSub 5G,L.P. |   |  | MeriStarSub 5N,LLC |   |  | MeriStarSub 5P,LLC |  
|Assets                                            |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                     |   |  |                    |  |                     |   |  |                    |   |  |                    |  
|Property and equipment                            |  | 18,969             |   |  |                   |  | 7,263              |   |  |                    |  |                   |   |  |                    |   |  |                   |  | 168,827             |   |  | 3,580              |   |  | 39                 |  
|Accumulated depreciation                          |  | (1,607             | ) |  |                   |  | (844               | ) |  |                    |  |                   |   |  | (1                  | ) |  |                   |  | (35,721             | ) |  | (448               | ) |  | (28                | )
|                                                  |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                     |   |  |                    |  |                     |   |  |                    |   |  |                    |  
|                                                  |  | 17,362             |   |  |                   |  | 6,419              |   |  |                    |  |                   |   |  | (1                  | ) |  |                   |  | 133,106             |   |  | 3,132              |   |  | 11                 |  
|                                                  |  |                    |   |  |                    |  |                    |   |  |                    
|Investments in affiliates                         |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                    |   |  |                   |  |                    |   |  |                   |   |  |                   |  
|Prepaid expenses and other assets                 |  | (118               | ) |  |                   |  | (39                | ) |  |                    |  |                   |   |  |                    |   |  |                   |  | (394                | ) |  | (45                | ) |  | (10                | )
|Insurance claim receivable                        |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                    |   |  |                   |  |                    |   |  |                   |   |  |                   |  
|Accounts receivable, net                          |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                    |   |  |                   |  |                    |   |  |                   |   |  | 38                 |  
|Due to/from subsidiaries                          |  | 10,741             |   |  |                   |  | 4,524              |   |  | 1,728               |  | (2,360             | ) |  | 16,930              |   |  |                   |  | 45,208              |   |  | 4,988              |   |  | 3,724              |  
|Note receivable from subsidiaries                 |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                    |   |  |                   |  |                    |   |  |                   |   |  |                   |  
|Restricted cash                                   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                    |   |  |                   |  |                    |   |  |                   |   |  |                   |  
|Cash and cash equivalents                         |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                    |   |  |                   |  |                    |   |  |                   |   |  |                   |  
|                                                  |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                     |   |  |                    |  |                     |   |  |                    |   |  |                    |  
|                                                  |  | 27,985             |   |  |                   |  | 10,904             |   |  | 1,728               |  | (2,360             | ) |  | 16,929              |   |  |                   |  | 177,920             |   |  | 8,075              |   |  | 3,763              |  
|                                                  |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                     |   |  |                    |  |                     |   |  |                    |   |  |                    |  
|Liabilities and Partners Capital                 |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                     |   |  |                    |  |                     |   | 
|Long-term debt                                    |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                    |   |  |                   |  |                    |   |  |                   |   |  |                   |  
|Notes payable to MeriStar Hospitality Corporation |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                    |   |  |                   |  |                    |   |  |                   |   |  |                   |  
|Accounts payable and accrued expenses             |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                    |   |  |                   |  |                    |   |  | 4                  |   |  |                   |  
|Accrued interest                                  |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                    |   |  |                   |  |                    |   |  |                   |   |  |                   |  
|Due to Interstate Hotels & Resorts                |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                    |   |  |                   |  |                    |   |  |                   |   |  |                   |  
|Other liabilities                                 |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                    |   |  |                   |  |                    |   |  |                   |   |  |                   |  
|                                                  |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                     |   |  |                    |  |                     |   |  |                    |   |  |                    |  
|                                                  |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                    |   |  |                   |  |                    |   |  | 4                  |   |  |                   |  
|                                                  |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                     |   |  |                    |  |                     |   |  |                    |   |  |                    |  
|Minority interests                                |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                    |   |  |                   |  |                    |   |  |                   |   |  |                   |  
|Redeemable OP units at redemption value           |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                    |   |  |                   |  |                    |   |  |                   |   |  |                   |  
|Partners capital - Common OP units               |  | 27,985             |   |  |                   |  | 10,904             |   |  | 1,728               |  | (2,360             | ) |  | 16,929              |   |  |                   |  | 177,920             |   |  | 8,071              |   |  | 3,763              |  
|                                                  |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                     |   |  |                    |  |                     |   |  |                    |   |  |                    |  
|                                                  |  | 27,985             |   |  |                   |  | 10,904             |   |  | 1,728               |  | (2,360             | ) |  | 16,929              |   |  |                   |  | 177,920             |   |  | 8,075              |   |  | 3,763              |  
|                                                  |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                     |   |  |                    |  |                     |   |  |                    |   |  |                    |  



12



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Balance Sheet

December 31, 2004

(Dollars in thousands)

|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                           |   |  |                    |  |                    |  |                    |  |                    |  |                               |  |                                |  |                   
|------------------------------------------------- |  | ------------------ | - |  | ------------------ | - |  | ------------------ | - |  | ------------------ |  | ------------------ | - |  | ------------------------- | - |  | ------------------ |  | ------------------ |  | ------------------ |  | ------------------ |  | ----------------------------- |  | ------------------------------ |  | ------------------
|                                                  |  | MeriStarSub 5J,LLC |   |  | MeriStarSub 5Q,LLC |   |  | MeriStarSub 5A,LLC |   |  | MeriStarSub 8D,LLC |  | MeriStarSub 4J,LLC |   |  | MeristarPentagon City,LLC |   |  | MeriStarSub 6K,LLC |  | MeriStarSub 5E,LLC |  | MeriStarSub 6I,LLC |  | MeriStarSub 5I,LLC |  | CapStarCherry HillCompany,LLC |  | MeristarAcquisitionCompany,LLC |  | MeriStarSub 6A,LLC
|Assets                                            |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                           |   |  |                    |  |                    |  |                    |  |                    |  |                               |  |                                |  |                   
|Property and equipment                            |  | 79,579             |   |  | 13,980             |   |  | 37,074             |   |  |                   |  | 41,862             |   |  | 93,264                    |   |  |                   |  |                   |  |                   |  |                   |  |                              |  |                               |  |                  
|Accumulated depreciation                          |  | (14,819            | ) |  | (2,312             | ) |  | (11,767            | ) |  |                   |  | (8,398             | ) |  | (3,478                    | ) |  |                   |  |                   |  |                   |  |                   |  |                              |  |                               |  |                  
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                           |   |  |                    |  |                    |  |                    |  |                    |  |                               |  |                                |  |                   
|                                                  |  | 64,760             |   |  | 11,668             |   |  | 25,307             |   |  |                   |  | 33,464             |   |  | 89,786                    |   |  |                   |  |                   |  |                   |  |                   |  |                              |  |                               |  |                  
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                   
|Investments in affiliates                         |  |                   |   |  |                   |   |  | 4,627              |   |  |                   |  |                   |   |  |                          |   |  |                   |  |                   |  |                   |  |                   |  |                              |  |                               |  |                  
|Prepaid expenses and other assets                 |  | (769               | ) |  | (137               | ) |  | (78                | ) |  |                   |  | (51                | ) |  | 466                       |   |  |                   |  |                   |  |                   |  |                   |  |                              |  |                               |  |                  
|Insurance claim receivable                        |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                          |   |  |                   |  |                   |  |                   |  |                   |  |                              |  |                               |  |                  
|Accounts receivable, net                          |  |                   |   |  |                   |   |  |                   |   |  | 359                |  | (14                | ) |  | (361                      | ) |  |                   |  |                   |  |                   |  |                   |  |                              |  |                               |  |                  
|Due to/from subsidiaries                          |  | 51,127             |   |  | 8,187              |   |  | 8,010              |   |  | 16,379             |  | 6,370              |   |  | 58,867                    |   |  |                   |  |                   |  |                   |  |                   |  |                              |  |                               |  |                  
|Note receivable from subsidiaries                 |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                          |   |  |                   |  |                   |  |                   |  |                   |  |                              |  |                               |  |                  
|Restricted cash                                   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                          |   |  |                   |  |                   |  |                   |  |                   |  |                              |  |                               |  |                  
|Cash and cash equivalents                         |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                          |   |  |                   |  |                   |  |                   |  |                   |  |                              |  |                               |  |                  
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                           |   |  |                    |  |                    |  |                    |  |                    |  |                               |  |                                |  |                   
|                                                  |  | 115,118            |   |  | 19,718             |   |  | 37,866             |   |  | 16,738             |  | 39,769             |   |  | 148,758                   |   |  |                   |  |                   |  |                   |  |                   |  |                              |  |                               |  |                  
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                           |   |  |                    |  |                    |  |                    |  |                    |  |                               |  |                                |  |                   
|Liabilities and Partners Capital                 |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                           |   |  |                    |  |                    |  |                    |  |                    |  |                               |  |                               
|Long-term debt                                    |  |                   |   |  |                   |   |  | 23,609             |   |  |                   |  |                   |   |  | 55,509                    |   |  |                   |  |                   |  |                   |  |                   |  |                              |  |                               |  |                  
|Notes payable to MeriStar Hospitality Corporation |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                          |   |  |                   |  |                   |  |                   |  |                   |  |                              |  |                               |  |                  
|Accounts payable and accrued expenses             |  | 126                |   |  | (18                | ) |  | 114                |   |  |                   |  | 152                |   |  | 273                       |   |  |                   |  |                   |  |                   |  |                   |  |                              |  |                               |  |                  
|Accrued interest                                  |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  | 268                       |   |  |                   |  |                   |  |                   |  |                   |  |                              |  |                               |  |                  
|Due to Interstate Hotels & Resorts                |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                          |   |  |                   |  |                   |  |                   |  |                   |  |                              |  |                               |  |                  
|Other liabilities                                 |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                          |   |  |                   |  |                   |  |                   |  |                   |  |                              |  |                               |  |                  
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                           |   |  |                    |  |                    |  |                    |  |                    |  |                               |  |                                |  |                   
|                                                  |  | 126                |   |  | (18                | ) |  | 23,723             |   |  |                   |  | 152                |   |  | 56,050                    |   |  |                   |  |                   |  |                   |  |                   |  |                              |  |                               |  |                  
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                           |   |  |                    |  |                    |  |                    |  |                    |  |                               |  |                                |  |                   
|Minority interests                                |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                          |   |  |                   |  |                   |  |                   |  |                   |  |                              |  |                               |  |                  
|Redeemable OP units at redemption value           |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |   |  |                          |   |  |                   |  |                   |  |                   |  |                   |  |                              |  |                               |  |                  
|Partners capital - Common OP units               |  | 114,992            |   |  | 19,736             |   |  | 14,143             |   |  | 16,738             |  | 39,617             |   |  | 92,708                    |   |  |                   |  |                   |  |                   |  |                   |  |                              |  |                               |  |                  
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                           |   |  |                    |  |                    |  |                    |  |                    |  |                               |  |                                |  |                   
|                                                  |  | 115,118            |   |  | 19,718             |   |  | 37,866             |   |  | 16,738             |  | 39,769             |   |  | 148,758                   |   |  |                   |  |                   |  |                   |  |                   |  |                              |  |                               |  |                  
|                                                  |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |   |  |                           |   |  |                    |  |                    |  |                    |  |                    |  |                               |  |                                |  |                   



13



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Balance Sheet

December 31, 2004

(Dollars in thousands)



|                                                  |  |                    |  |                           |   |  |                       |   |  |                            |   |  |                           |   |  |                   |           |  
|------------------------------------------------- |  | ------------------ |  | ------------------------- | - |  | --------------------- | - |  | -------------------------- | - |  | ------------------------- | - |  | ----------------- | --------- | -
|                                                  |  | MeriStarSub 6F,LLC |  | MeriStarHotel Lessee,Inc. |   |  | GuarantorEliminations |   |  | GuarantorSubsidiariesTotal |   |  | ConsolidationEliminations |   |  | TotalConsolidated |          
|Assets                                            |  |                    |  |                           |   |  |                       |   |  |                            |   |  |                           |   |  |                   |           |  
|Property and equipment                            |  |                   |  | 3,316                     |   |  |                      |   |  | 1,082,467                  |   |  |                          |   |  | $                 | 2,581,720 |  
|Accumulated depreciation                          |  |                   |  | (3,384                    | ) |  |                      |   |  | (205,338                   | ) |  |                          |   |  |                   | (506,632  | )
|                                                  |  |                    |  |                           |   |  |                       |   |  |                            |   |  |                           |   |  |                   |           |  
|                                                  |  |                   |  | (68                       | ) |  |                      |   |  | 877,129                    |   |  |                          |   |  |                   | 2,075,088 |  
|Investments in affiliates                         |  |                   |  | 42,290                    |   |  | (40,661               | ) |  | 110,908                    |   |  | (2,526,603                | ) |  |                   | 84,796    |  
|Prepaid expenses and other assets                 |  |                   |  | 9,661                     |   |  |                      |   |  | 6,784                      |   |  |                          |   |  |                   | 34,230    |  
|Insurance claim receivable                        |  |                   |  |                          |   |  |                      |   |  |                           |   |  |                          |   |  |                   | 76,056    |  
|Accounts receivable, net                          |  |                   |  | 30,134                    |   |  |                      |   |  | 31,743                     |   |  | (9,414                    | ) |  |                   | 32,979    |  
|Due to/from subsidiaries                          |  |                   |  | 40,158                    |   |  | (1,181                | ) |  | 583,683                    |   |  |                          |   |  |                   |          |  
|Note receivable from subsidiaries                 |  |                   |  |                          |   |  |                      |   |  |                           |   |  | (221,704                  | ) |  |                   |          |  
|Restricted cash                                   |  |                   |  | 1,313                     |   |  |                      |   |  | 1,313                      |   |  |                          |   |  |                   | 58,413    |  
|Cash and cash equivalents                         |  |                   |  | 19,309                    |   |  |                      |   |  | 19,309                     |   |  |                          |   |  |                   | 60,533    |  
|                                                  |  |                    |  |                           |   |  |                       |   |  |                            |   |  |                           |   |  |                   |           |  
|                                                  |  |                   |  | 142,797                   |   |  | (41,842               | ) |  | 1,630,869                  |   |  | (2,757,721                | ) |  | $                 | 2,422,095 |  
|                                                  |  |                    |  |                           |   |  |                       |   |  |                            |   |  |                           |   |  |                   |           |  
|Liabilities and Partners Capital                 |  |                    |  |                           |   |  |                       |   |  |                            |   |  |                           |   |  |                   |           |  
|Long-term debt                                    |  |                   |  | 174,095                   |   |  |                      |   |  | 277,246                    |   |  | (221,704                  | ) |  | $                 | 1,369,299 |  
|Notes payable to MeriStar Hospitality Corporation |  |                   |  |                          |   |  |                      |   |  |                           |   |  |                          |   |  |                   | 203,977   |  
|Accounts payable and accrued expenses             |  |                   |  | 47,802                    |   |  |                      |   |  | 51,876                     |   |  |                          |   |  |                   | 71,781    |  
|Accrued interest                                  |  |                   |  | 9,414                     |   |  |                      |   |  | 9,682                      |   |  | (9,414                    | ) |  |                   | 41,165    |  
|Due to Interstate Hotels & Resorts                |  |                   |  | 10,652                    |   |  |                      |   |  | 10,452                     |   |  |                          |   |  |                   | 21,799    |  
|Other liabilities                                 |  |                   |  | 6,171                     |   |  |                      |   |  | 6,171                      |   |  |                          |   |  |                   | 11,553    |  
|                                                  |  |                    |  |                           |   |  |                       |   |  |                            |   |  |                           |   |  |                   |           |  
|                                                  |  |                   |  | 248,134                   |   |  |                      |   |  | 355,427                    |   |  | (231,118                  | ) |  |                   | 1,719,574 |  
|                                                  |  |                    |  |                           |   |  |                       |   |  |                            |   |  |                           |   |  |                   |           |  
|Minority interests                                |  |                   |  |                          |   |  |                      |   |  |                           |   |  |                          |   |  |                   | 2,418     |  
|Redeemable OP units at redemption value           |  |                   |  |                          |   |  |                      |   |  |                           |   |  |                          |   |  |                   | 19,187    |  
|Partners capital - Common OP units               |  |                   |  | (105,337                  | ) |  | (41,842               | ) |  | 1,275,442                  |   |  | (2,526,603                | ) |  |                   | 680,916   |  
|                                                  |  |                    |  |                           |   |  |                       |   |  |                            |   |  |                           |   |  |                   |           |  
|                                                  |  |                   |  | 142,797                   |   |  | (41,842               | ) |  | 1,630,869                  |   |  | (2,757,721                | ) |  | $                 | 2,422,095 |  
|                                                  |  |                    |  |                           |   |  |                       |   |  |                            |   |  |                           |   |  |                   |           |  



14



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Operations

Three Months Ended March 31, 2005

(Dollars in thousands)

|                                                                            |  |                             |         |   |                           |        |   |                               |       |                               |        |   |                    |   |                    |   |              |   |                     |     |                     |     |                    |      
|--------------------------------------------------------------------------- |  | --------------------------- | ------- | - | ------------------------- | ------ | - | ----------------------------- | ----- | ----------------------------- | ------ | - | ------------------ | - | ------------------ | - | ------------ | - | ------------------- | --- | ------------------- | --- | ------------------ | -----
|                                                                            |  | MeriStarHospitalityOP, L.P. |         |   | Non-GuarantorSubsidiaries |        |   | MeriStarLexingtonMortgage,LLC |       | MeriStarLexingtonPartners,LLC |        |   | MeriStarSub 7C,LLC |   | MeriStarSub 8G,LLC |   | AGHUPREITLLC |   | MeriStarSub 6H,L.P. |     | MeriStarSub 8F,L.P. |     | MeriStarSub 8B,LLC
|Revenue:                                                                    |  |                             |         |   |                           |        |   |                               |       |                               |        |   |                    |   |                    |   |              |   |                     |     |                     |     |                    |      
|Hotel operations:                                                           |  |                             |         |   |                           |        |   |                               |       |                               |        |   |                    |   |                    |   |              |   |                     |     |                     |     |                    |      
|Rooms                                                                       |  | $                           |        |   |                           |       |   |                               |      |                               |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |     
|Food and beverage                                                           |  |                             |        |   |                           |       |   |                               |      |                               |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |     
|Other hotel operations                                                      |  |                             |        |   |                           |       |   |                               |      |                               |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |     
|Office rental, parking and other revenue                                    |  |                             | 1,434   |   |                           | 129    |   |                               |      |                               |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |     
|Participating lease revenue                                                 |  |                             |        |   |                           | 35,598 |   |                               | 1,408 |                               | (1,341 | ) |                    |  |                    |  |              |  |                     | 293 |                     | 624 |                    | 1,934
|                                                                            |  |                             |         |   |                           |        |   |                               |       |                               |        |   |                    |   |                    |   |              |   |                     |     |                     |     |                    |      
|Total revenue                                                               |  |                             | 1,434   |   |                           | 35,727 |   |                               | 1,408 |                               | (1,341 | ) |                    |  |                    |  |              |  |                     | 293 |                     | 624 |                    | 1,934
|                                                                            |  |                             |         |   |                           |        |   |                               |       |                               |        |   |                    |   |                    |   |              |   |                     |     |                     |     |                    |      
|Hotel operating expenses:                                                   |  |                             |         |   |                           |        |   |                               |       |                               |        |   |                    |   |                    |   |              |   |                     |     |                     |     |                    |      
|Rooms                                                                       |  |                             |        |   |                           |       |   |                               |      |                               |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |     
|Food and beverage                                                           |  |                             |        |   |                           |       |   |                               |      |                               |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |     
|Other hotel operating expenses                                              |  |                             |        |   |                           |       |   |                               |      |                               |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |     
|Office rental, parking and other expenses                                   |  |                             |        |   |                           | 346    |   |                               |      |                               |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |     
|Other operating expenses:                                                   |  |                             |        |   |                           |       |   |                               |      |                               |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |     
|General and administrative, hotel                                           |  |                             |        |   |                           |       |   |                               |      |                               |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |     
|General and administrative, corporate                                       |  |                             | 3,500   |   |                           |       |   |                               |      |                               |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |     
|Property operating costs                                                    |  |                             |        |   |                           |       |   |                               |      |                               |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |     
|Depreciation and amortization                                               |  |                             | 2,012   |   |                           | 13,257 |   |                               |      |                               |       |   |                    |  |                    |  |              |  |                     | 157 |                     | 165 |                    | 623  
|Property taxes, insurance and other                                         |  |                             | 1,387   |   |                           | 4,761  |   |                               |      |                               |       |   |                    |  |                    |  |              |  |                     | 25  |                     | 158 |                    | 259  
|Loss on asset impairments                                                   |  |                             |        |   |                           |       |   |                               |      |                               |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |     
|                                                                            |  |                             |         |   |                           |        |   |                               |       |                               |        |   |                    |   |                    |   |              |   |                     |     |                     |     |                    |      
|Operating expenses                                                          |  |                             | 6,899   |   |                           | 18,364 |   |                               |      |                               |       |   |                    |  |                    |  |              |  |                     | 182 |                     | 323 |                    | 882  
|                                                                            |  |                             |         |   |                           |        |   |                               |       |                               |        |   |                    |   |                    |   |              |   |                     |     |                     |     |                    |      
|Equity in income/loss of and interest earned from unconsolidated affiliates |  |                             | 1,634   |   |                           |       |   |                               |      |                               |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |     
|Hurricane business interruption income                                      |  |                             |        |   |                           |       |   |                               |      |                               |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |     
|Operating income (loss)                                                     |  |                             | (3,831  | ) |                           | 17,363 |   |                               | 1,408 |                               | (1,341 | ) |                    |  |                    |  |              |  |                     | 111 |                     | 301 |                    | 1,052
|                                                                            |  |                             |         |   |                           |        |   |                               |       |                               |        |   |                    |   |                    |   |              |   |                     |     |                     |     |                    |      
|Minority interest income (expense)                                          |  |                             | (5      | ) |                           |       |   |                               |      |                               |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |     
|Interest expense, net                                                       |  |                             | (17,675 | ) |                           | (7,669 | ) |                               |      |                               |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |     
|Loss on early extinguishments of debt                                       |  |                             | (60     | ) |                           |       |   |                               |      |                               |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |     
|Equity in income from consolidated entities                                 |  |                             | 7,822   |   |                           |       |   |                               |      |                               |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |     
|                                                                            |  |                             |         |   |                           |        |   |                               |       |                               |        |   |                    |   |                    |   |              |   |                     |     |                     |     |                    |      
|(Loss) income before income taxes and discontinued operations               |  |                             | (13,749 | ) |                           | 9,694  |   |                               | 1,408 |                               | (1,341 | ) |                    |  |                    |  |              |  |                     | 111 |                     | 301 |                    | 1,052
|Income tax expense                                                          |  |                             |        |   |                           |       |   |                               |      |                               |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |     
|                                                                            |  |                             |         |   |                           |        |   |                               |       |                               |        |   |                    |   |                    |   |              |   |                     |     |                     |     |                    |      
|(Loss) income from continuing operations                                    |  |                             | (13,749 | ) |                           | 9,694  |   |                               | 1,408 |                               | (1,341 | ) |                    |  |                    |  |              |  |                     | 111 |                     | 301 |                    | 1,052
|Discontinued operations:                                                    |  |                             |         |   |                           |        |   |                               |       |                               |        |   |                    |   |                    |   |              |   |                     |     |                     |     |                    |      
|(Loss) income from discontinued operations before income taxes              |  |                             |        |   |                           |       |   |                               |      |                               |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |     
|Income tax expense                                                          |  |                             |        |   |                           |       |   |                               |      |                               |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |     
|                                                                            |  |                             |         |   |                           |        |   |                               |       |                               |        |   |                    |   |                    |   |              |   |                     |     |                     |     |                    |      
|(Loss) income from discontinued operations                                  |  |                             |        |   |                           |       |   |                               |      |                               |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |     
|                                                                            |  |                             |         |   |                           |        |   |                               |       |                               |        |   |                    |   |                    |   |              |   |                     |     |                     |     |                    |      
|Net income (loss)                                                           |  | $                           | (13,749 | ) |                           | 9,694  |   |                               | 1,408 |                               | (1,341 | ) |                    |  |                    |  |              |  |                     | 111 |                     | 301 |                    | 1,052
|                                                                            |  |                             |         |   |                           |        |   |                               |       |                               |        |   |                    |   |                    |   |              |   |                     |     |                     |     |                    |      



15



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Operations

Three Months Ended March 31, 2005

(Dollars in thousands)

|                                                                            |  |                 |   |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |   |  |                    
|--------------------------------------------------------------------------- |  | --------------- | - |  | ------------------ |  | ------------------ |  | ------------------ |  | ------------------ |  | ------------------ |  | ------------------ |  | ------------------ |  | ------------------ | - |  | -------------------
|                                                                            |  | MeriStar 1C,LLC |   |  | MeriStarSub 8E,LLC |  | MeriStarSub 7F,LLC |  | MeriStarSub 5L,LLC |  | MeriStarSub 3C,LLC |  | MeriStarSub 5R,LLC |  | MeriStarSub 8A,LLC |  | MeriStarSub 6D,LLC |  | MeriStarSub 6E,LLC |   |  | MeriStarSub 4E,L.P.
|Revenue:                                                                    |  |                 |   |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |   |  |                    
|Hotel operations:                                                           |  |                 |   |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |   |  |                    
|Rooms                                                                       |  |                |   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   
|Food and beverage                                                           |  |                |   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   
|Other hotel operations                                                      |  |                |   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   
|Office rental, parking and other revenue                                    |  |                |   |  | 11                 |  |                   |  |                   |  | 1                  |  |                   |  |                   |  | 17                 |  | 3                  |   |  |                   
|Participating lease revenue                                                 |  | 414             |   |  | 385                |  | 242                |  | 293                |  | 748                |  |                   |  |                   |  | 618                |  | 1,561              |   |  |                   
|                                                                            |  |                 |   |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |   |  |                    
|Total revenue                                                               |  | 414             |   |  | 396                |  | 242                |  | 293                |  | 749                |  |                   |  |                   |  | 635                |  | 1,564              |   |  |                   
|                                                                            |  |                 |   |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |   |  |                    
|Hotel operating expenses:                                                   |  |                 |   |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |   |  |                    
|Rooms                                                                       |  |                |   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   
|Food and beverage                                                           |  |                |   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   
|Other hotel operating expenses                                              |  |                |   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   
|Office rental, parking and other expenses                                   |  | 3               |   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   
|Other operating expenses:                                                   |  |                |   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   
|General and administrative, hotel                                           |  |                |   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   
|General and administrative, corporate                                       |  |                |   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   
|Property operating costs                                                    |  |                |   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   
|Depreciation and amortization                                               |  | 353             |   |  | 136                |  | 134                |  | 40                 |  | 156                |  |                   |  |                   |  | 106                |  | 380                |   |  |                   
|Property taxes, insurance and other                                         |  | 207             |   |  | 44                 |  | 32                 |  | 34                 |  | 102                |  |                   |  |                   |  | 79                 |  | 138                |   |  |                   
|Loss on asset impairments                                                   |  |                |   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   
|                                                                            |  |                 |   |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |   |  |                    
|Operating expenses                                                          |  | 563             |   |  | 180                |  | 166                |  | 74                 |  | 258                |  |                   |  |                   |  | 185                |  | 518                |   |  |                   
|                                                                            |  |                 |   |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |   |  |                    
|Equity in income/loss of and interest earned from unconsolidated affiliates |  |                |   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   
|Hurricane business interruption income                                      |  |                |   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   
|Operating income (loss)                                                     |  | (149            | ) |  | 216                |  | 76                 |  | 219                |  | 491                |  |                   |  |                   |  | 450                |  | 1,046              |   |  |                   
|                                                                            |  |                 |   |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |   |  |                    
|Minority interest income (expense)                                          |  |                |   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   
|Interest expense, net                                                       |  |                |   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  | (220               | ) |  |                   
|Loss on early extinguishments of debt                                       |  |                |   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   
|Equity in income from consolidated entities                                 |  |                |   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   
|                                                                            |  |                 |   |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |   |  |                    
|(Loss) income before income taxes and discontinued operations               |  | (149            | ) |  | 216                |  | 76                 |  | 219                |  | 491                |  |                   |  |                   |  | 450                |  | 826                |   |  |                   
|Income tax expense                                                          |  |                |   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   
|                                                                            |  |                 |   |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |   |  |                    
|(Loss) income from continuing operations                                    |  | (149            | ) |  | 216                |  | 76                 |  | 219                |  | 491                |  |                   |  |                   |  | 450                |  | 826                |   |  |                   
|Discontinued operations:                                                    |  |                 |   |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |   |  |                    
|(Loss) income from discontinued operations before income taxes              |  |                |   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   
|Income tax expense                                                          |  |                |   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   
|                                                                            |  |                 |   |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |   |  |                    
|(Loss) income from discontinued operations                                  |  |                |   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   
|                                                                            |  |                 |   |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |   |  |                    
|Net income (loss)                                                           |  | (149            | ) |  | 216                |  | 76                 |  | 219                |  | 491                |  |                   |  |                   |  | 450                |  | 826                |   |  |                   
|                                                                            |  |                 |   |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |  |                    |   |  |                    



16



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Operations

Three Months Ended March 31, 2005

(Dollars in thousands)



|                                                                            |  |                    |   |  |                     |  |                    |  |                    |  |                     |  |                     |  |                    |  |                    |  |                    |  |                            |  |                   
|--------------------------------------------------------------------------- |  | ------------------ | - |  | ------------------- |  | ------------------ |  | ------------------ |  | ------------------- |  | ------------------- |  | ------------------ |  | ------------------ |  | ------------------ |  | -------------------------- |  | ------------------
|                                                                            |  | MeriStarSub 1B,LLC |   |  | MeriStarSub 5F,L.P. |  | MeriStarSub 6G,LLC |  | MeriStarSub 8C,LLC |  | MeriStarSub 4C,L.P. |  | MeriStarSub 4H,L.P. |  | MeriStarSub 7E,LLC |  | MeriStarSub 3D,LLC |  | MeriStarSub 1A,LLC |  | MeriStarSub 7AJointVenture |  | MeriStarSub 2B,LLC
|Revenue:                                                                    |  |                    |   |  |                     |  |                    |  |                    |  |                     |  |                     |  |                    |  |                    |  |                    |  |                            |  |                   
|Hotel operations:                                                           |  |                    |   |  |                     |  |                    |  |                    |  |                     |  |                     |  |                    |  |                    |  |                    |  |                            |  |                   
|Rooms                                                                       |  |                   |   |  |                    |  |                   |  |                   |  |                    |  |                    |  |                   |  |                   |  |                   |  |                           |  |                  
|Food and beverage                                                           |  |                   |   |  |                    |  |                   |  |                   |  |                    |  |                    |  |                   |  |                   |  |                   |  |                           |  |                  
|Other hotel operations                                                      |  |                   |   |  |                    |  |                   |  |                   |  |                    |  |                    |  |                   |  |                   |  |                   |  |                           |  |                  
|Office rental, parking and other revenue                                    |  |                   |   |  |                    |  |                   |  |                   |  |                    |  |                    |  |                   |  |                   |  |                   |  |                           |  |                  
|Participating lease revenue                                                 |  | 520                |   |  | 910                 |  | 979                |  |                   |  |                    |  |                    |  | 358                |  | 444                |  | 439                |  |                           |  |                  
|                                                                            |  |                    |   |  |                     |  |                    |  |                    |  |                     |  |                     |  |                    |  |                    |  |                    |  |                            |  |                   
|Total revenue                                                               |  | 520                |   |  | 910                 |  | 979                |  |                   |  |                    |  |                    |  | 358                |  | 444                |  | 439                |  |                           |  |                  
|                                                                            |  |                    |   |  |                     |  |                    |  |                    |  |                     |  |                     |  |                    |  |                    |  |                    |  |                            |  |                   
|Hotel operating expenses:                                                   |  |                    |   |  |                     |  |                    |  |                    |  |                     |  |                     |  |                    |  |                    |  |                    |  |                            |  |                   
|Rooms                                                                       |  |                   |   |  |                    |  |                   |  |                   |  |                    |  |                    |  |                   |  |                   |  |                   |  |                           |  |                  
|Food and beverage                                                           |  |                   |   |  |                    |  |                   |  |                   |  |                    |  |                    |  |                   |  |                   |  |                   |  |                           |  |                  
|Other hotel operating expenses                                              |  |                   |   |  |                    |  |                   |  |                   |  |                    |  |                    |  |                   |  |                   |  |                   |  |                           |  |                  
|Office rental, parking and other expenses                                   |  | (3                 | ) |  |                    |  |                   |  |                   |  |                    |  |                    |  |                   |  | 5                  |  | 36                 |  |                           |  |                  
|Other operating expenses:                                                   |  |                   |   |  |                    |  |                   |  |                   |  |                    |  |                    |  |                   |  |                   |  |                   |  |                           |  |                  
|General and administrative, hotel                                           |  |                   |   |  |                    |  |                   |  |                   |  |                    |  |                    |  |                   |  |                   |  |                   |  |                           |  |                  
|General and administrative, corporate                                       |  |                   |   |  |                    |  |                   |  |                   |  |                    |  |                    |  |                   |  |                   |  |                   |  |                           |  |                  
|Property operating costs                                                    |  |                   |   |  |                    |  |                   |  |                   |  |                    |  |                    |  |                   |  |                   |  |                   |  |                           |  |                  
|Depreciation and amortization                                               |  | 126                |   |  | 154                 |  | 167                |  |                   |  |                    |  |                    |  | 165                |  | 162                |  | 73                 |  |                           |  |                  
|Property taxes, insurance and other                                         |  | 44                 |   |  | 89                  |  | 101                |  |                   |  |                    |  |                    |  | 52                 |  | 57                 |  | 100                |  |                           |  |                  
|Loss on asset impairments                                                   |  |                   |   |  |                    |  |                   |  |                   |  |                    |  |                    |  |                   |  |                   |  |                   |  |                           |  |                  
|                                                                            |  |                    |   |  |                     |  |                    |  |                    |  |                     |  |                     |  |                    |  |                    |  |                    |  |                            |  |                   
|Operating expenses                                                          |  | 167                |   |  | 243                 |  | 268                |  |                   |  |                    |  |                    |  | 217                |  | 224                |  | 209                |  |                           |  |                  
|                                                                            |  |                    |   |  |                     |  |                    |  |                    |  |                     |  |                     |  |                    |  |                    |  |                    |  |                            |  |                   
|Equity in income/loss of and interest earned from unconsolidated affiliates |  |                   |   |  |                    |  |                   |  |                   |  |                    |  |                    |  |                   |  |                   |  |                   |  |                           |  |                  
|Hurricane business interruption income                                      |  |                   |   |  |                    |  |                   |  |                   |  |                    |  |                    |  |                   |  |                   |  |                   |  |                           |  |                  
|Operating income (loss)                                                     |  | 353                |   |  | 667                 |  | 711                |  |                   |  |                    |  |                    |  | 141                |  | 220                |  | 230                |  |                           |  |                  
|                                                                            |  |                    |   |  |                     |  |                    |  |                    |  |                     |  |                     |  |                    |  |                    |  |                    |  |                            |  |                   
|Minority interest income (expense)                                          |  |                   |   |  |                    |  |                   |  |                   |  |                    |  |                    |  |                   |  |                   |  |                   |  |                           |  |                  
|Interest expense, net                                                       |  | (2                 | ) |  |                    |  |                   |  |                   |  |                    |  |                    |  |                   |  |                   |  |                   |  |                           |  |                  
|Loss on early extinguishments of debt                                       |  |                   |   |  |                    |  |                   |  |                   |  |                    |  |                    |  |                   |  |                   |  |                   |  |                           |  |                  
|Equity in income from consolidated entities                                 |  |                   |   |  |                    |  |                   |  |                   |  |                    |  |                    |  |                   |  |                   |  |                   |  |                           |  |                  
|                                                                            |  |                    |   |  |                     |  |                    |  |                    |  |                     |  |                     |  |                    |  |                    |  |                    |  |                            |  |                   
|(Loss) income before income taxes and discontinued operations               |  | 351                |   |  | 667                 |  | 711                |  |                   |  |                    |  |                    |  | 141                |  | 220                |  | 230                |  |                           |  |                  
|Income tax expense                                                          |  |                   |   |  |                    |  |                   |  |                   |  |                    |  |                    |  |                   |  |                   |  |                   |  |                           |  |                  
|                                                                            |  |                    |   |  |                     |  |                    |  |                    |  |                     |  |                     |  |                    |  |                    |  |                    |  |                            |  |                   
|(Loss) income from continuing operations                                    |  | 351                |   |  | 667                 |  | 711                |  |                   |  |                    |  |                    |  | 141                |  | 220                |  | 230                |  |                           |  |                  
|Discontinued operations:                                                    |  |                    |   |  |                     |  |                    |  |                    |  |                     |  |                     |  |                    |  |                    |  |                    |  |                            |  |                   
|(Loss) income from discontinued operations before income taxes              |  |                   |   |  |                    |  |                   |  |                   |  |                    |  |                    |  |                   |  |                   |  |                   |  |                           |  |                  
|Income tax expense                                                          |  |                   |   |  |                    |  |                   |  |                   |  |                    |  |                    |  |                   |  |                   |  |                   |  |                           |  |                  
|                                                                            |  |                    |   |  |                     |  |                    |  |                    |  |                     |  |                     |  |                    |  |                    |  |                    |  |                            |  |                   
|(Loss) income from discontinued operations                                  |  |                   |   |  |                    |  |                   |  |                   |  |                    |  |                    |  |                   |  |                   |  |                   |  |                           |  |                  
|                                                                            |  |                    |   |  |                     |  |                    |  |                    |  |                     |  |                     |  |                    |  |                    |  |                    |  |                            |  |                   
|Net income (loss)                                                           |  | 351                |   |  | 667                 |  | 711                |  |                   |  |                    |  |                    |  | 141                |  | 220                |  | 230                |  |                           |  |                  
|                                                                            |  |                    |   |  |                     |  |                    |  |                    |  |                     |  |                     |  |                    |  |                    |  |                    |  |                            |  |                   



17



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Operations

Three Months Ended March 31, 2005

(Dollars in thousands)

|                                                                            |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |  |                    |  |                    |  |                    |  |                    
|--------------------------------------------------------------------------- |  | ------------------ |  | ----------------- |  | ------------------ |  | ------------------ |  | ------------------ |  | --------------------- |  | ------------------ |  | ------------------ |  | ------------------ |  | -------------------
|                                                                            |  | MeriStarSub 3A,LLC |  | MeriStarSub 4A,LP |  | MeriStarSub 4D,LLC |  | MeriStarSub 2A,LLC |  | MeriStarSub 6L,LLC |  | MDVLimitedPartnership |  | MeriStarSub 5C,LLC |  | MeriStarSub 6J,LLC |  | MeriStarSub 1D,LLC |  | MeriStarSub 7B,L.P.
|Revenue:                                                                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |  |                    |  |                    |  |                    |  |                    
|Hotel operations:                                                           |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |  |                    |  |                    |  |                    |  |                    
|Rooms                                                                       |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                   |  |                   |  |                   |  |                   
|Food and beverage                                                           |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                   |  |                   |  |                   |  |                   
|Other hotel operations                                                      |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                   |  |                   |  |                   |  |                   
|Office rental, parking and other revenue                                    |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                   |  |                   |  | 4                  |  |                   
|Participating lease revenue                                                 |  |                   |  |                  |  |                   |  |                   |  |                   |  | 134                   |  |                   |  | 768                |  | 1,581              |  |                   
|                                                                            |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |  |                    |  |                    |  |                    |  |                    
|Total revenue                                                               |  |                   |  |                  |  |                   |  |                   |  |                   |  | 134                   |  |                   |  | 768                |  | 1,585              |  |                   
|                                                                            |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |  |                    |  |                    |  |                    |  |                    
|Hotel operating expenses:                                                   |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |  |                    |  |                    |  |                    |  |                    
|Rooms                                                                       |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                   |  |                   |  |                   |  |                   
|Food and beverage                                                           |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                   |  |                   |  |                   |  |                   
|Other hotel operating expenses                                              |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                   |  |                   |  |                   |  |                   
|Office rental, parking and other expenses                                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                   |  |                   |  | 60                 |  |                   
|Other operating expenses:                                                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                   |  |                   |  |                   |  |                   
|General and administrative, hotel                                           |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                   |  |                   |  |                   |  |                   
|General and administrative, corporate                                       |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                   |  |                   |  |                   |  |                   
|Property operating costs                                                    |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                   |  |                   |  |                   |  |                   
|Depreciation and amortization                                               |  |                   |  |                  |  |                   |  |                   |  |                   |  | 49                    |  |                   |  | 139                |  | 584                |  |                   
|Property taxes, insurance and other                                         |  |                   |  |                  |  |                   |  |                   |  |                   |  | 31                    |  |                   |  | 76                 |  | 363                |  |                   
|Loss on asset impairments                                                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                   |  |                   |  |                   |  |                   
|                                                                            |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |  |                    |  |                    |  |                    |  |                    
|Operating expenses                                                          |  |                   |  |                  |  |                   |  |                   |  |                   |  | 80                    |  |                   |  | 215                |  | 1,007              |  |                   
|                                                                            |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |  |                    |  |                    |  |                    |  |                    
|Equity in income/loss of and interest earned from unconsolidated affiliates |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                   |  |                   |  |                   |  |                   
|Hurricane business interruption income                                      |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                   |  |                   |  |                   |  |                   
|Operating income (loss)                                                     |  |                   |  |                  |  |                   |  |                   |  |                   |  | 54                    |  |                   |  | 553                |  | 578                |  |                   
|                                                                            |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |  |                    |  |                    |  |                    |  |                    
|Minority interest income (expense)                                          |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                   |  |                   |  |                   |  |                   
|Interest expense, net                                                       |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                   |  |                   |  |                   |  |                   
|Loss on early extinguishments of debt                                       |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                   |  |                   |  |                   |  |                   
|Equity in income from consolidated entities                                 |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                   |  |                   |  |                   |  |                   
|                                                                            |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |  |                    |  |                    |  |                    |  |                    
|(Loss) income before income taxes and discontinued operations               |  |                   |  |                  |  |                   |  |                   |  |                   |  | 54                    |  |                   |  | 553                |  | 578                |  |                   
|Income tax expense                                                          |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                   |  |                   |  |                   |  |                   
|                                                                            |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |  |                    |  |                    |  |                    |  |                    
|(Loss) income from continuing operations                                    |  |                   |  |                  |  |                   |  |                   |  |                   |  | 54                    |  |                   |  | 553                |  | 578                |  |                   
|Discontinued operations:                                                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |  |                    |  |                    |  |                    |  |                    
|(Loss) income from discontinued operations before income taxes              |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                   |  |                   |  |                   |  |                   
|Income tax expense                                                          |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                   |  |                   |  |                   |  |                   
|                                                                            |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |  |                    |  |                    |  |                    |  |                    
|(Loss) income from discontinued operations                                  |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                   |  |                   |  |                   |  |                   
|                                                                            |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |  |                    |  |                    |  |                    |  |                    
|Net income (loss)                                                           |  |                   |  |                  |  |                   |  |                   |  |                   |  | 54                    |  |                   |  | 553                |  | 578                |  |                   
|                                                                            |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |  |                    |  |                    |  |                    |  |                    



18



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Operations

Three Months Ended March 31, 2005

(Dollars in thousands)

|                                                                            |  |                    |  |                    |  |                    |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                    |  |                     |  
|--------------------------------------------------------------------------- |  | ------------------ |  | ------------------ |  | ------------------ |  | ------------------- |  | ------------------ | - |  | ------------------ |  | ------------------ |  | ------------- |  | ------------------ |  | ------------------- | -
|                                                                            |  | MeriStarSub 7D,LLC |  | MeriStarSub 7G,LLC |  | MeriStarSub 6B,LLC |  | MeriStarSub 4I,L.P. |  | MeriStarSub 5D,LLC |   |  | MeriStarSub 5H,LLC |  | MeriStarSub 7H,LLC |  | AGHPSS I,Inc. |  | MeriStarSub 2D,LLC |  | MeriStarSub 4F,L.P. |  
|Revenue:                                                                    |  |                    |  |                    |  |                    |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                    |  |                     |  
|Hotel operations:                                                           |  |                    |  |                    |  |                    |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                    |  |                     |  
|Rooms                                                                       |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                   |  |                    |  
|Food and beverage                                                           |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                   |  |                    |  
|Other hotel operations                                                      |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                   |  |                    |  
|Office rental, parking and other revenue                                    |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                   |  | 3                   |  
|Participating lease revenue                                                 |  | 2,176              |  |                   |  | 267                |  |                    |  | 442                |   |  |                   |  |                   |  |              |  |                   |  | 511                 |  
|                                                                            |  |                    |  |                    |  |                    |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                    |  |                     |  
|Total revenue                                                               |  | 2,176              |  |                   |  | 267                |  |                    |  | 442                |   |  |                   |  |                   |  |              |  |                   |  | 514                 |  
|                                                                            |  |                    |  |                    |  |                    |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                    |  |                     |  
|Hotel operating expenses:                                                   |  |                    |  |                    |  |                    |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                    |  |                     |  
|Rooms                                                                       |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                   |  |                    |  
|Food and beverage                                                           |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                   |  |                    |  
|Other hotel operating expenses                                              |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                   |  |                    |  
|Office rental, parking and other expenses                                   |  | 353                |  |                   |  |                   |  |                    |  | 2                  |   |  |                   |  |                   |  |              |  |                   |  | (1                  | )
|Other operating expenses:                                                   |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                   |  |                    |  
|General and administrative, hotel                                           |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                   |  |                    |  
|General and administrative, corporate                                       |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                   |  |                    |  
|Property operating costs                                                    |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                   |  |                    |  
|Depreciation and amortization                                               |  | 358                |  |                   |  | 113                |  |                    |  | 343                |   |  |                   |  |                   |  |              |  |                   |  | 283                 |  
|Property taxes, insurance and other                                         |  | 585                |  |                   |  | 37                 |  |                    |  | 86                 |   |  |                   |  |                   |  |              |  |                   |  | 101                 |  
|Loss on asset impairments                                                   |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                   |  |                    |  
|                                                                            |  |                    |  |                    |  |                    |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                    |  |                     |  
|Operating expenses                                                          |  | 1,296              |  |                   |  | 150                |  |                    |  | 431                |   |  |                   |  |                   |  |              |  |                   |  | 383                 |  
|                                                                            |  |                    |  |                    |  |                    |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                    |  |                     |  
|Equity in income/loss of and interest earned from unconsolidated affiliates |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                   |  |                    |  
|Hurricane business interruption income                                      |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                   |  |                    |  
|Operating income (loss)                                                     |  | 880                |  |                   |  | 117                |  |                    |  | 11                 |   |  |                   |  |                   |  |              |  |                   |  | 131                 |  
|                                                                            |  |                    |  |                    |  |                    |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                    |  |                     |  
|Minority interest income (expense)                                          |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                   |  |                    |  
|Interest expense, net                                                       |  |                   |  |                   |  |                   |  |                    |  | (408               | ) |  |                   |  |                   |  |              |  |                   |  |                    |  
|Loss on early extinguishments of debt                                       |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                   |  |                    |  
|Equity in income from consolidated entities                                 |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                   |  |                    |  
|                                                                            |  |                    |  |                    |  |                    |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                    |  |                     |  
|(Loss) income before income taxes and discontinued operations               |  | 880                |  |                   |  | 117                |  |                    |  | (397               | ) |  |                   |  |                   |  |              |  |                   |  | 131                 |  
|Income tax expense                                                          |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                   |  |                    |  
|                                                                            |  |                    |  |                    |  |                    |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                    |  |                     |  
|(Loss) income from continuing operations                                    |  | 880                |  |                   |  | 117                |  |                    |  | (397               | ) |  |                   |  |                   |  |              |  |                   |  | 131                 |  
|Discontinued operations:                                                    |  |                    |  |                    |  |                    |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                    |  |                     |  
|(Loss) income from discontinued operations before income taxes              |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                   |  |                    |  
|Income tax expense                                                          |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                   |  |                    |  
|                                                                            |  |                    |  |                    |  |                    |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                    |  |                     |  
|(Loss) income from discontinued operations                                  |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                   |  |                    |  
|                                                                            |  |                    |  |                    |  |                    |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                    |  |                     |  
|Net income (loss)                                                           |  | 880                |  |                   |  | 117                |  |                    |  | (397               | ) |  |                   |  |                   |  |              |  |                   |  | 131                 |  
|                                                                            |  |                    |  |                    |  |                    |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                    |  |                     |  



19



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Operations

Three Months Ended March 31, 2005

(Dollars in thousands)

|                                                                            |  |                    |  |                    |  |                    |  |                    |   |  |                     |  |                    |  |                     |  |                    |  |                     |  |                    |  
|--------------------------------------------------------------------------- |  | ------------------ |  | ------------------ |  | ------------------ |  | ------------------ | - |  | ------------------- |  | ------------------ |  | ------------------- |  | ------------------ |  | ------------------- |  | ------------------ | -
|                                                                            |  | MeriStarSub 5K,LLC |  | MeriStarSub 5M,LLC |  | MeriStarSub 1E,LLC |  | MeriStarSub 5O,LLC |   |  | MeriStarSub 4B,L.P. |  | MeriStarSub 2C,LLC |  | MeriStarSub 4G,L.P. |  | MeriStarSub 3B,LLC |  | MeriStarSub 5G,L.P. |  | MeriStarSub 5N,LLC |  
|Revenue:                                                                    |  |                    |  |                    |  |                    |  |                    |   |  |                     |  |                    |  |                     |  |                    |  |                     |  |                    |  
|Hotel operations:                                                           |  |                    |  |                    |  |                    |  |                    |   |  |                     |  |                    |  |                     |  |                    |  |                     |  |                    |  
|Rooms                                                                       |  |                   |  |                   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  |                   |  
|Food and beverage                                                           |  |                   |  |                   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  |                   |  
|Other hotel operations                                                      |  |                   |  |                   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  |                   |  
|Office rental, parking and other revenue                                    |  |                   |  |                   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  | 9                   |  |                   |  
|Participating lease revenue                                                 |  |                   |  | 386                |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  | 3,989               |  |                   |  
|                                                                            |  |                    |  |                    |  |                    |  |                    |   |  |                     |  |                    |  |                     |  |                    |  |                     |  |                    |  
|Total revenue                                                               |  |                   |  | 386                |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  | 3,998               |  |                   |  
|                                                                            |  |                    |  |                    |  |                    |  |                    |   |  |                     |  |                    |  |                     |  |                    |  |                     |  |                    |  
|Hotel operating expenses:                                                   |  |                    |  |                    |  |                    |  |                    |   |  |                     |  |                    |  |                     |  |                    |  |                     |  |                    |  
|Rooms                                                                       |  |                   |  |                   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  |                   |  
|Food and beverage                                                           |  |                   |  |                   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  |                   |  
|Other hotel operating expenses                                              |  |                   |  |                   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  |                   |  
|Office rental, parking and other expenses                                   |  |                   |  |                   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  | 8                   |  |                   |  
|Other operating expenses:                                                   |  |                   |  |                   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  |                   |  
|General and administrative, hotel                                           |  |                   |  |                   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  |                   |  
|General and administrative, corporate                                       |  |                   |  |                   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  |                   |  
|Property operating costs                                                    |  |                   |  |                   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  |                   |  
|Depreciation and amortization                                               |  |                   |  | 67                 |  |                   |  | 35                 |   |  |                    |  |                   |  |                    |  |                   |  | 1,551               |  | 19                 |  
|Property taxes, insurance and other                                         |  |                   |  |                   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  | 336                 |  |                   |  
|Loss on asset impairments                                                   |  |                   |  |                   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  |                   |  
|                                                                            |  |                    |  |                    |  |                    |  |                    |   |  |                     |  |                    |  |                     |  |                    |  |                     |  |                    |  
|Operating expenses                                                          |  |                   |  | 67                 |  |                   |  | 35                 |   |  |                    |  |                   |  |                    |  |                   |  | 1,895               |  | 19                 |  
|                                                                            |  |                    |  |                    |  |                    |  |                    |   |  |                     |  |                    |  |                     |  |                    |  |                     |  |                    |  
|Equity in income/loss of and interest earned from unconsolidated affiliates |  |                   |  |                   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  |                   |  
|Hurricane business interruption income                                      |  |                   |  |                   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  |                   |  
|Operating income (loss)                                                     |  |                   |  | 319                |  |                   |  | (35                | ) |  |                    |  |                   |  |                    |  |                   |  | 2,103               |  | (19                | )
|                                                                            |  |                    |  |                    |  |                    |  |                    |   |  |                     |  |                    |  |                     |  |                    |  |                     |  |                    |  
|Minority interest income (expense)                                          |  |                   |  |                   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  |                   |  
|Interest expense, net                                                       |  |                   |  |                   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  |                   |  
|Loss on early extinguishments of debt                                       |  |                   |  |                   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  |                   |  
|Equity in income from consolidated entities                                 |  |                   |  |                   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  |                   |  
|                                                                            |  |                    |  |                    |  |                    |  |                    |   |  |                     |  |                    |  |                     |  |                    |  |                     |  |                    |  
|(Loss) income before income taxes and discontinued operations               |  |                   |  | 319                |  |                   |  | (35                | ) |  |                    |  |                   |  |                    |  |                   |  | 2,103               |  | (19                | )
|Income tax expense                                                          |  |                   |  |                   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  |                   |  
|                                                                            |  |                    |  |                    |  |                    |  |                    |   |  |                     |  |                    |  |                     |  |                    |  |                     |  |                    |  
|(Loss) income from continuing operations                                    |  |                   |  | 319                |  |                   |  | (35                | ) |  |                    |  |                   |  |                    |  |                   |  | 2,103               |  | (19                | )
|Discontinued operations:                                                    |  |                    |  |                    |  |                    |  |                    |   |  |                     |  |                    |  |                     |  |                    |  |                     |  |                    |  
|(Loss) income from discontinued operations before income taxes              |  |                   |  |                   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  |                   |  
|Income tax expense                                                          |  |                   |  |                   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  |                   |  
|                                                                            |  |                    |  |                    |  |                    |  |                    |   |  |                     |  |                    |  |                     |  |                    |  |                     |  |                    |  
|(Loss) income from discontinued operations                                  |  |                   |  |                   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  |                   |  
|                                                                            |  |                    |  |                    |  |                    |  |                    |   |  |                     |  |                    |  |                     |  |                    |  |                     |  |                    |  
|Net income (loss)                                                           |  |                   |  | 319                |  |                   |  | (35                | ) |  |                    |  |                   |  |                    |  |                   |  | 2,103               |  | (19                | )
|                                                                            |  |                    |  |                    |  |                    |  |                    |   |  |                     |  |                    |  |                     |  |                    |  |                     |  |                    |  



20



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Operations

Three Months Ended March 31, 2005

(Dollars in thousands)

|                                                                            |  |                    |  |                    |   |  |                    |  |                    |   |  |                    |  |                    |  |                          |   |  |                    |  |                    |  |                   
|--------------------------------------------------------------------------- |  | ------------------ |  | ------------------ | - |  | ------------------ |  | ------------------ | - |  | ------------------ |  | ------------------ |  | ------------------------ | - |  | ------------------ |  | ------------------ |  | ------------------
|                                                                            |  | MeriStarSub 5P,LLC |  | MeriStarSub 5J,LLC |   |  | MeriStarSub 5Q,LLC |  | MeriStarSub 5A,LLC |   |  | MeriStarSub 8D,LLC |  | MeriStarSub 4J,LLC |  | MeristarPentagonCity,LLC |   |  | MeriStarSub 6K,LLC |  | MeriStarSub 5E,LLC |  | MeriStarSub 6I,LLC
|Revenue:                                                                    |  |                    |  |                    |   |  |                    |  |                    |   |  |                    |  |                    |  |                          |   |  |                    |  |                    |  |                   
|Hotel operations:                                                           |  |                    |  |                    |   |  |                    |  |                    |   |  |                    |  |                    |  |                          |   |  |                    |  |                    |  |                   
|Rooms                                                                       |  |                   |  |                   |   |  |                   |  |                   |   |  |                   |  |                   |  |                         |   |  |                   |  |                   |  |                  
|Food and beverage                                                           |  |                   |  |                   |   |  |                   |  |                   |   |  |                   |  |                   |  |                         |   |  |                   |  |                   |  |                  
|Other hotel operations                                                      |  |                   |  |                   |   |  |                   |  |                   |   |  |                   |  |                   |  |                         |   |  |                   |  |                   |  |                  
|Office rental, parking and other revenue                                    |  |                   |  | 227                |   |  |                   |  | 18                 |   |  |                   |  | 2                  |  |                         |   |  |                   |  |                   |  |                  
|Participating lease revenue                                                 |  | 85                 |  |                   |   |  | 434                |  | 1,696              |   |  |                   |  | 630                |  | 2,878                    |   |  |                   |  |                   |  |                  
|                                                                            |  |                    |  |                    |   |  |                    |  |                    |   |  |                    |  |                    |  |                          |   |  |                    |  |                    |  |                   
|Total revenue                                                               |  | 85                 |  | 227                |   |  | 434                |  | 1,714              |   |  |                   |  | 632                |  | 2,878                    |   |  |                   |  |                   |  |                  
|                                                                            |  |                    |  |                    |   |  |                    |  |                    |   |  |                    |  |                    |  |                          |   |  |                    |  |                    |  |                   
|Hotel operating expenses:                                                   |  |                    |  |                    |   |  |                    |  |                    |   |  |                    |  |                    |  |                          |   |  |                    |  |                    |  |                   
|Rooms                                                                       |  |                   |  |                   |   |  |                   |  |                   |   |  |                   |  |                   |  |                         |   |  |                   |  |                   |  |                  
|Food and beverage                                                           |  |                   |  |                   |   |  |                   |  |                   |   |  |                   |  |                   |  |                         |   |  |                   |  |                   |  |                  
|Other hotel operating expenses                                              |  |                   |  |                   |   |  |                   |  |                   |   |  |                   |  |                   |  |                         |   |  |                   |  |                   |  |                  
|Office rental, parking and other expenses                                   |  |                   |  | 1                  |   |  |                   |  | 1                  |   |  |                   |  | 122                |  |                         |   |  |                   |  |                   |  |                  
|Other operating expenses:                                                   |  |                   |  |                   |   |  |                   |  |                   |   |  |                   |  |                   |  |                         |   |  |                   |  |                   |  |                  
|General and administrative, hotel                                           |  |                   |  |                   |   |  |                   |  |                   |   |  |                   |  |                   |  |                         |   |  |                   |  |                   |  |                  
|General and administrative, corporate                                       |  |                   |  |                   |   |  |                   |  |                   |   |  |                   |  |                   |  |                         |   |  |                   |  |                   |  |                  
|Property operating costs                                                    |  |                   |  |                   |   |  |                   |  |                   |   |  |                   |  |                   |  |                         |   |  |                   |  |                   |  |                  
|Depreciation and amortization                                               |  | 1                  |  | 911                |   |  | 123                |  | 270                |   |  |                   |  | 318                |  | 1,323                    |   |  |                   |  |                   |  |                  
|Property taxes, insurance and other                                         |  | 1                  |  | (93                | ) |  |                   |  | 211                |   |  |                   |  | 96                 |  | 578                      |   |  |                   |  |                   |  |                  
|Loss on asset impairments                                                   |  |                   |  |                   |   |  |                   |  |                   |   |  |                   |  |                   |  |                         |   |  |                   |  |                   |  |                  
|                                                                            |  |                    |  |                    |   |  |                    |  |                    |   |  |                    |  |                    |  |                          |   |  |                    |  |                    |  |                   
|Operating expenses                                                          |  | 2                  |  | 819                |   |  | 123                |  | 482                |   |  |                   |  | 536                |  | 1,901                    |   |  |                   |  |                   |  |                  
|                                                                            |  |                    |  |                    |   |  |                    |  |                    |   |  |                    |  |                    |  |                          |   |  |                    |  |                    |  |                   
|Equity in income/loss of and interest earned from unconsolidated affiliates |  |                   |  |                   |   |  |                   |  |                   |   |  |                   |  |                   |  |                         |   |  |                   |  |                   |  |                  
|Hurricane business interruption income                                      |  |                   |  |                   |   |  |                   |  |                   |   |  |                   |  |                   |  |                         |   |  |                   |  |                   |  |                  
|Operating income (loss)                                                     |  | 83                 |  | (592               | ) |  | 311                |  | 1,232              |   |  |                   |  | 96                 |  | 977                      |   |  |                   |  |                   |  |                  
|                                                                            |  |                    |  |                    |   |  |                    |  |                    |   |  |                    |  |                    |  |                          |   |  |                    |  |                    |  |                   
|Minority interest income (expense)                                          |  |                   |  |                   |   |  |                   |  |                   |   |  |                   |  |                   |  |                         |   |  |                   |  |                   |  |                  
|Interest expense, net                                                       |  |                   |  |                   |   |  |                   |  | (708               | ) |  |                   |  |                   |  | (803                     | ) |  |                   |  |                   |  |                  
|Loss on early extinguishments of debt                                       |  |                   |  |                   |   |  |                   |  |                   |   |  |                   |  |                   |  |                         |   |  |                   |  |                   |  |                  
|Equity in income from consolidated entities                                 |  |                   |  |                   |   |  |                   |  |                   |   |  |                   |  |                   |  |                         |   |  |                   |  |                   |  |                  
|                                                                            |  |                    |  |                    |   |  |                    |  |                    |   |  |                    |  |                    |  |                          |   |  |                    |  |                    |  |                   
|(Loss) income before income taxes and discontinued operations               |  | 83                 |  | (592               | ) |  | 311                |  | 524                |   |  |                   |  | 96                 |  | 174                      |   |  |                   |  |                   |  |                  
|Income tax expense                                                          |  |                   |  |                   |   |  |                   |  |                   |   |  |                   |  |                   |  |                         |   |  |                   |  |                   |  |                  
|                                                                            |  |                    |  |                    |   |  |                    |  |                    |   |  |                    |  |                    |  |                          |   |  |                    |  |                    |  |                   
|(Loss) income from continuing operations                                    |  | 83                 |  | (592               | ) |  | 311                |  | 524                |   |  |                   |  | 96                 |  | 174                      |   |  |                   |  |                   |  |                  
|Discontinued operations:                                                    |  |                    |  |                    |   |  |                    |  |                    |   |  |                    |  |                    |  |                          |   |  |                    |  |                    |  |                   
|(Loss) income from discontinued operations before income taxes              |  |                   |  |                   |   |  |                   |  |                   |   |  |                   |  |                   |  |                         |   |  |                   |  |                   |  |                  
|Income tax expense                                                          |  |                   |  |                   |   |  |                   |  |                   |   |  |                   |  |                   |  |                         |   |  |                   |  |                   |  |                  
|                                                                            |  |                    |  |                    |   |  |                    |  |                    |   |  |                    |  |                    |  |                          |   |  |                    |  |                    |  |                   
|(Loss) income from discontinued operations                                  |  |                   |  |                   |   |  |                   |  |                   |   |  |                   |  |                   |  |                         |   |  |                   |  |                   |  |                  
|                                                                            |  |                    |  |                    |   |  |                    |  |                    |   |  |                    |  |                    |  |                          |   |  |                    |  |                    |  |                   
|Net income (loss)                                                           |  | 83                 |  | (592               | ) |  | 311                |  | 524                |   |  |                   |  | 96                 |  | 174                      |   |  |                   |  |                   |  |                  
|                                                                            |  |                    |  |                    |   |  |                    |  |                    |   |  |                    |  |                    |  |                          |   |  |                    |  |                    |  |                   



21



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Operations

Three Months Ended March 31, 2005

(Dollars in thousands)

|                                                                            |  |                    |  |                              |  |                                |  |                    |  |                    |  |                          |   |  |                       |   |  |                            |   |  |                           |   |  |                   |         |  
|--------------------------------------------------------------------------- |  | ------------------ |  | ---------------------------- |  | ------------------------------ |  | ------------------ |  | ------------------ |  | ------------------------ | - |  | --------------------- | - |  | -------------------------- | - |  | ------------------------- | - |  | ----------------- | ------- | -
|                                                                            |  | MeriStarSub 5I,LLC |  | CapStarCherryHillCompany,LLC |  | MeristarAcquisitionCompany,LLC |  | MeriStarSub 6A,LLC |  | MeriStarSub 6F,LLC |  | MeriStarHotelLessee,Inc. |   |  | GuarantorEliminations |   |  | GuarantorSubsidiariesTotal |   |  | ConsolidationEliminations |   |  | TotalConsolidated |        
|Revenue:                                                                    |  |                    |  |                              |  |                                |  |                    |  |                    |  |                          |   |  |                       |   |  |                            |   |  |                           |   |  |                   |         |  
|Hotel operations:                                                           |  |                    |  |                              |  |                                |  |                    |  |                    |  |                          |   |  |                       |   |  |                            |   |  |                           |   |  |                   |         |  
|Rooms                                                                       |  |                   |  |                             |  |                               |  |                   |  |                   |  | 125,995                  |   |  |                      |   |  | 125,995                    |   |  |                          |   |  | $                 | 125,995 |  
|Food and beverage                                                           |  |                   |  |                             |  |                               |  |                   |  |                   |  | 51,858                   |   |  |                      |   |  | 51,858                     |   |  |                          |   |  |                   | 51,858  |  
|Other hotel operations                                                      |  |                   |  |                             |  |                               |  |                   |  |                   |  | 11,384                   |   |  |                      |   |  | 11,384                     |   |  |                          |   |  |                   | 11,384  |  
|Office rental, parking and other revenue                                    |  |                   |  |                             |  |                               |  |                   |  |                   |  |                         |   |  |                      |   |  | 295                        |   |  |                          |   |  |                   | 1,858   |  
|Participating lease revenue                                                 |  |                   |  |                             |  |                               |  |                   |  |                   |  | 1,408                    |   |  | (1,408                | ) |  | 26,806                     |   |  | (62,404                   | ) |  |                   |        |  
|                                                                            |  |                    |  |                              |  |                                |  |                    |  |                    |  |                          |   |  |                       |   |  |                            |   |  |                           |   |  |                   |         |  
|Total revenue                                                               |  |                   |  |                             |  |                               |  |                   |  |                   |  | 190,645                  |   |  | (1,408                | ) |  | 216,338                    |   |  | (62,404                   | ) |  |                   | 191,095 |  
|                                                                            |  |                    |  |                              |  |                                |  |                    |  |                    |  |                          |   |  |                       |   |  |                            |   |  |                           |   |  |                   |         |  
|Hotel operating expenses:                                                   |  |                    |  |                              |  |                                |  |                    |  |                    |  |                          |   |  |                       |   |  |                            |   |  |                           |   |  |                   |         |  
|Rooms                                                                       |  |                   |  |                             |  |                               |  |                   |  |                   |  | 31,359                   |   |  |                      |   |  | 31,359                     |   |  |                          |   |  |                   | 31,359  |  
|Food and beverage                                                           |  |                   |  |                             |  |                               |  |                   |  |                   |  | 37,509                   |   |  |                      |   |  | 37,509                     |   |  |                          |   |  |                   | 37,509  |  
|Other hotel operating expenses                                              |  |                   |  |                             |  |                               |  |                   |  |                   |  | 7,116                    |   |  |                      |   |  | 7,116                      |   |  |                          |   |  |                   | 7,116   |  
|Office rental, parking and other expenses                                   |  |                   |  |                             |  |                               |  |                   |  |                   |  | (109                     | ) |  |                      |   |  | 478                        |   |  |                          |   |  |                   | 824     |  
|Other operating expenses:                                                   |  |                   |  |                             |  |                               |  |                   |  |                   |  |                         |   |  |                      |   |  |                           |   |  |                          |   |  |                   |        |  
|General and administrative, hotel                                           |  |                   |  |                             |  |                               |  |                   |  |                   |  | 32,105                   |   |  |                      |   |  | 32,105                     |   |  |                          |   |  |                   | 32,105  |  
|General and administrative, corporate                                       |  |                   |  |                             |  |                               |  |                   |  |                   |  | 33                       |   |  |                      |   |  | 33                         |   |  |                          |   |  |                   | 3,533   |  
|Property operating costs                                                    |  |                   |  |                             |  |                               |  |                   |  |                   |  | 29,682                   |   |  |                      |   |  | 29,682                     |   |  |                          |   |  |                   | 29,682  |  
|Depreciation and amortization                                               |  |                   |  |                             |  |                               |  |                   |  |                   |  |                         |   |  |                      |   |  | 9,584                      |   |  |                          |   |  |                   | 24,853  |  
|Property taxes, insurance and other                                         |  |                   |  |                             |  |                               |  |                   |  |                   |  | 63,316                   |   |  |                      |   |  | 67,245                     |   |  | (62,404                   | ) |  |                   | 10,989  |  
|Loss on asset impairments                                                   |  |                   |  |                             |  |                               |  |                   |  |                   |  |                         |   |  |                      |   |  |                           |   |  |                          |   |  |                   |        |  
|                                                                            |  |                    |  |                              |  |                                |  |                    |  |                    |  |                          |   |  |                       |   |  |                            |   |  |                           |   |  |                   |         |  
|Operating expenses                                                          |  |                   |  |                             |  |                               |  |                   |  |                   |  | 201,011                  |   |  |                      |   |  | 215,111                    |   |  | (62,404                   | ) |  |                   | 177,970 |  
|                                                                            |  |                    |  |                              |  |                                |  |                    |  |                    |  |                          |   |  |                       |   |  |                            |   |  |                           |   |  |                   |         |  
|Equity in income/loss of and interest earned from unconsolidated affiliates |  |                   |  |                             |  |                               |  |                   |  |                   |  |                         |   |  |                      |   |  |                           |   |  |                          |   |  |                   | 1,634   |  
|Hurricane business interruption income                                      |  |                   |  |                             |  |                               |  |                   |  |                   |  | 2,281                    |   |  |                      |   |  | 2,281                      |   |  |                          |   |  |                   | 2,281   |  
|Operating income (loss)                                                     |  |                   |  |                             |  |                               |  |                   |  |                   |  | (8,085                   | ) |  | (1,408                | ) |  | 3,508                      |   |  |                          |   |  |                   | 17,040  |  
|                                                                            |  |                    |  |                              |  |                                |  |                    |  |                    |  |                          |   |  |                       |   |  |                            |   |  |                           |   |  |                   |         |  
|Minority interest income (expense)                                          |  |                   |  |                             |  |                               |  |                   |  |                   |  |                         |   |  |                      |   |  |                           |   |  |                          |   |  |                   | (5      | )
|Interest expense, net                                                       |  |                   |  |                             |  |                               |  |                   |  |                   |  | (3,229                   | ) |  |                      |   |  | (5,370                     | ) |  |                          |   |  |                   | (30,714 | )
|Loss on early extinguishments of debt                                       |  |                   |  |                             |  |                               |  |                   |  |                   |  |                         |   |  |                      |   |  |                           |   |  |                          |   |  |                   | (60     | )
|Equity in income from consolidated entities                                 |  |                   |  |                             |  |                               |  |                   |  |                   |  |                         |   |  |                      |   |  |                           |   |  | (7,822                    | ) |  |                   |        |  
|                                                                            |  |                    |  |                              |  |                                |  |                    |  |                    |  |                          |   |  |                       |   |  |                            |   |  |                           |   |  |                   |         |  
|(Loss) income before income taxes and discontinued operations               |  |                   |  |                             |  |                               |  |                   |  |                   |  | (11,314                  | ) |  | (1,408                | ) |  | (1,862                     | ) |  | (7,822                    | ) |  |                   | (13,739 | )
|Income tax expense                                                          |  |                   |  |                             |  |                               |  |                   |  |                   |  | (10                      | ) |  |                      |   |  | (10                        | ) |  |                          |   |  |                   | (10     | )
|                                                                            |  |                    |  |                              |  |                                |  |                    |  |                    |  |                          |   |  |                       |   |  |                            |   |  |                           |   |  |                   |         |  
|(Loss) income from continuing operations                                    |  |                   |  |                             |  |                               |  |                   |  |                   |  | (11,324                  | ) |  | (1,408                | ) |  | (1,872                     | ) |  | (7,822                    | ) |  |                   | (13,749 | )
|Discontinued operations:                                                    |  |                    |  |                              |  |                                |  |                    |  |                    |  |                          |   |  |                       |   |  |                            |   |  |                           |   |  |                   |         |  
|(Loss) income from discontinued operations before income taxes              |  |                   |  |                             |  |                               |  |                   |  |                   |  |                         |   |  |                      |   |  |                           |   |  |                          |   |  |                   |        |  
|Income tax expense                                                          |  |                   |  |                             |  |                               |  |                   |  |                   |  |                         |   |  |                      |   |  |                           |   |  |                          |   |  |                   |        |  
|                                                                            |  |                    |  |                              |  |                                |  |                    |  |                    |  |                          |   |  |                       |   |  |                            |   |  |                           |   |  |                   |         |  
|(Loss) income from discontinued operations                                  |  |                   |  |                             |  |                               |  |                   |  |                   |  |                         |   |  |                      |   |  |                           |   |  |                          |   |  |                   |        |  
|                                                                            |  |                    |  |                              |  |                                |  |                    |  |                    |  |                          |   |  |                       |   |  |                            |   |  |                           |   |  |                   |         |  
|Net income (loss)                                                           |  |                   |  |                             |  |                               |  |                   |  |                   |  | (11,324                  | ) |  | (1,408                | ) |  | (1,872                     | ) |  | (7,822                    | ) |  | $                 | (13,749 | )
|                                                                            |  |                    |  |                              |  |                                |  |                    |  |                    |  |                          |   |  |                       |   |  |                            |   |  |                           |   |  |                   |         |  



22



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Operations

Three Months Ended March 31, 2004

(Dollars in thousands)

|                                                                            |  |                             |         |   |                           |        |   |                    |   |                    |   |              |   |                     |     |                     |     |                    |       |                    |      |   |                    |     |                    |     |                    |    
|--------------------------------------------------------------------------- |  | --------------------------- | ------- | - | ------------------------- | ------ | - | ------------------ | - | ------------------ | - | ------------ | - | ------------------- | --- | ------------------- | --- | ------------------ | ----- | ------------------ | ---- | - | ------------------ | --- | ------------------ | --- | ------------------ | ---
|                                                                            |  | MeriStarHospitalityOP, L.P. |         |   | Non-GuarantorSubsidiaries |        |   | MeriStarSub 7C,LLC |   | MeriStarSub 8G,LLC |   | AGHUPREITLLC |   | MeriStarSub 6H,L.P. |     | MeriStarSub 8F,L.P. |     | MeriStarSub 8B,LLC |       | MeriStarSub 1C,LLC |      |   | MeriStarSub 8E,LLC |     | MeriStarSub 7F,LLC |     | MeriStarSub 5L,LLC
|Revenue:                                                                    |  |                             |         |   |                           |        |   |                    |   |                    |   |              |   |                     |     |                     |     |                    |       |                    |      |   |                    |     |                    |     |                    |    
|Hotel operations:                                                           |  |                             |         |   |                           |        |   |                    |   |                    |   |              |   |                     |     |                     |     |                    |       |                    |      |   |                    |     |                    |     |                    |    
|Rooms                                                                       |  | $                           |        |   |                           |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |      |                    |     |   |                    |    |                    |    |                    |   
|Food and beverage                                                           |  |                             |        |   |                           |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |      |                    |     |   |                    |    |                    |    |                    |   
|Other hotel operations                                                      |  |                             |        |   |                           |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |      |                    |     |   |                    |    |                    |    |                    |   
|Office rental, parking and other revenue                                    |  |                             | 4       |   |                           | 634    |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |      |                    |     |   |                    | 9   |                    |    |                    |   
|Participating lease revenue                                                 |  |                             |        |   |                           | 33,982 |   |                    |  |                    |  |              |  |                     | 302 |                     | 601 |                    | 1,864 |                    | 422  |   |                    | 371 |                    | 245 |                    | 377
|                                                                            |  |                             |         |   |                           |        |   |                    |   |                    |   |              |   |                     |     |                     |     |                    |       |                    |      |   |                    |     |                    |     |                    |    
|Total revenue                                                               |  |                             | 4       |   |                           | 34,616 |   |                    |  |                    |  |              |  |                     | 302 |                     | 601 |                    | 1,864 |                    | 422  |   |                    | 380 |                    | 245 |                    | 377
|                                                                            |  |                             |         |   |                           |        |   |                    |   |                    |   |              |   |                     |     |                     |     |                    |       |                    |      |   |                    |     |                    |     |                    |    
|Hotel operating expenses:                                                   |  |                             |         |   |                           |        |   |                    |   |                    |   |              |   |                     |     |                     |     |                    |       |                    |      |   |                    |     |                    |     |                    |    
|Rooms                                                                       |  |                             |        |   |                           |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |      |                    |     |   |                    |    |                    |    |                    |   
|Food and beverage                                                           |  |                             |        |   |                           |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |      |                    |     |   |                    |    |                    |    |                    |   
|Other hotel operating expenses                                              |  |                             |        |   |                           |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |      |                    |     |   |                    |    |                    |    |                    |   
|Office rental, parking and other expenses                                   |  |                             |        |   |                           | 290    |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |      |                    |     |   |                    |    |                    |    |                    |   
|Other operating expenses:                                                   |  |                             |         |   |                           |        |   |                    |   |                    |   |              |   |                     |     |                     |     |                    |       |                    |      |   |                    |     |                    |     |                    |    
|General and administrative, hotel                                           |  |                             |        |   |                           |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |      |                    |     |   |                    |    |                    |    |                    |   
|General and administrative, corporate                                       |  |                             | 3,831   |   |                           |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |      |                    |     |   |                    |    |                    |    |                    |   
|Property operating costs                                                    |  |                             |        |   |                           |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |      |                    |     |   |                    |    |                    |    |                    |   
|Depreciation and amortization                                               |  |                             | 2,521   |   |                           | 12,529 |   |                    |  |                    |  |              |  |                     | 157 |                     | 164 |                    | 595   |                    | 356  |   |                    | 149 |                    | 97  |                    | 38 
|Property taxes, insurance and other                                         |  |                             |        |   |                           | 5,735  |   |                    |  |                    |  |              |  |                     | 24  |                     | 123 |                    | 306   |                    | 210  |   |                    | 62  |                    | 29  |                    | 40 
|Loss on asset impairments                                                   |  |                             |        |   |                           |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |      |                    |     |   |                    |    |                    |    |                    |   
|Write-off of deferred financing fees                                        |  |                             | 856     |   |                           |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |      |                    |     |   |                    |    |                    |    |                    |   
|                                                                            |  |                             |         |   |                           |        |   |                    |   |                    |   |              |   |                     |     |                     |     |                    |       |                    |      |   |                    |     |                    |     |                    |    
|Operating expenses                                                          |  |                             | 7,208   |   |                           | 18,554 |   |                    |  |                    |  |              |  |                     | 181 |                     | 287 |                    | 901   |                    | 566  |   |                    | 211 |                    | 126 |                    | 78 
|                                                                            |  |                             |         |   |                           |        |   |                    |   |                    |   |              |   |                     |     |                     |     |                    |       |                    |      |   |                    |     |                    |     |                    |    
|Equity in income/loss of and interest earned from unconsolidated affiliates |  |                             | 1,600   |   |                           |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |      |                    |     |   |                    |    |                    |    |                    |   
|Operating income (loss)                                                     |  |                             | (5,604  | ) |                           | 16,062 |   |                    |  |                    |  |              |  |                     | 121 |                     | 314 |                    | 963   |                    | (144 | ) |                    | 169 |                    | 119 |                    | 299
|                                                                            |  |                             |         |   |                           |        |   |                    |   |                    |   |              |   |                     |     |                     |     |                    |       |                    |      |   |                    |     |                    |     |                    |    
|Minority interest income (expense)                                          |  |                             | 4       |   |                           |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |      |                    |     |   |                    |    |                    |    |                    |   
|Interest expense, net                                                       |  |                             | (23,430 | ) |                           | (8,415 | ) |                    |  |                    |  |              |  |                     |    |                     |    |                    |      |                    |     |   |                    |    |                    |    |                    |   
|Loss on early extinguishments of debt                                       |  |                             | (5,923  | ) |                           |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |      |                    |     |   |                    |    |                    |    |                    |   
|Equity in income from consolidated entities                                 |  |                             | (6,866  | ) |                           |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |      |                    |     |   |                    |    |                    |    |                    |   
|                                                                            |  |                             |         |   |                           |        |   |                    |   |                    |   |              |   |                     |     |                     |     |                    |       |                    |      |   |                    |     |                    |     |                    |    
|(Loss) income before income taxes and discontinued operations               |  |                             | (41,819 | ) |                           | 7,647  |   |                    |  |                    |  |              |  |                     | 121 |                     | 314 |                    | 963   |                    | (144 | ) |                    | 169 |                    | 119 |                    | 299
|Income tax benefit                                                          |  |                             | 390     |   |                           |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |      |                    |     |   |                    |    |                    |    |                    |   
|                                                                            |  |                             |         |   |                           |        |   |                    |   |                    |   |              |   |                     |     |                     |     |                    |       |                    |      |   |                    |     |                    |     |                    |    
|(Loss) income from continuing operations                                    |  |                             | (41,429 | ) |                           | 7,647  |   |                    |  |                    |  |              |  |                     | 121 |                     | 314 |                    | 963   |                    | (144 | ) |                    | 169 |                    | 119 |                    | 299
|Discontinued operations:                                                    |  |                             |         |   |                           |        |   |                    |   |                    |   |              |   |                     |     |                     |     |                    |       |                    |      |   |                    |     |                    |     |                    |    
|(Loss) income from discontinued operations before income taxes              |  |                             | 477     |   |                           | (56    | ) |                    |  |                    |  |              |  |                     |    |                     |    |                    |      |                    |     |   |                    |    |                    |    |                    |   
|Income tax benefit                                                          |  |                             | 65      |   |                           |       |   |                    |  |                    |  |              |  |                     |    |                     |    |                    |      |                    |     |   |                    |    |                    |    |                    |   
|                                                                            |  |                             |         |   |                           |        |   |                    |   |                    |   |              |   |                     |     |                     |     |                    |       |                    |      |   |                    |     |                    |     |                    |    
|(Loss) income from discontinued operations                                  |  |                             | 542     |   |                           | (56    | ) |                    |  |                    |  |              |  |                     |    |                     |    |                    |      |                    |     |   |                    |    |                    |    |                    |   
|                                                                            |  |                             |         |   |                           |        |   |                    |   |                    |   |              |   |                     |     |                     |     |                    |       |                    |      |   |                    |     |                    |     |                    |    
|Net income (loss)                                                           |  | $                           | (40,887 | ) |                           | 7,591  |   |                    |  |                    |  |              |  |                     | 121 |                     | 314 |                    | 963   |                    | (144 | ) |                    | 169 |                    | 119 |                    | 299
|                                                                            |  |                             |         |   |                           |        |   |                    |   |                    |   |              |   |                     |     |                     |     |                    |       |                    |      |   |                    |     |                    |     |                    |    



23



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Operations

Three Months Ended March 31, 2004

(Dollars in thousands)

|                                                                            |  |                    |  |                    |  |                    |  |                    |  |                    |  |                     |  |                    |  |                     |  |                    |  |                    |   |  |                     |  |                     |  
|--------------------------------------------------------------------------- |  | ------------------ |  | ------------------ |  | ------------------ |  | ------------------ |  | ------------------ |  | ------------------- |  | ------------------ |  | ------------------- |  | ------------------ |  | ------------------ | - |  | ------------------- |  | ------------------- | -
|                                                                            |  | MeriStarSub 3C,LLC |  | MeriStarSub 5R,LLC |  | MeriStarSUB 8A,LLC |  | MeriStarSub 6D,LLC |  | MeriStarSub 6E,LLC |  | MeriStarSub 4E,L.P. |  | MeriStarSub 1B,LLC |  | MeriStarSub 5F,L.P. |  | MeriStarSub 6G,LLC |  | MeriStarSub 8C,LLC |   |  | MeriStarSub 4C,L.P. |  | MeriStarSub 4H,L.P. |  
|Revenue:                                                                    |  |                    |  |                    |  |                    |  |                    |  |                    |  |                     |  |                    |  |                     |  |                    |  |                    |   |  |                     |  |                     |  
|Hotel operations:                                                           |  |                    |  |                    |  |                    |  |                    |  |                    |  |                     |  |                    |  |                     |  |                    |  |                    |   |  |                     |  |                     |  
|Rooms                                                                       |  |                   |  |                   |  |                   |  |                   |  |                   |  |                    |  |                   |  |                    |  |                   |  |                   |   |  |                    |  |                    |  
|Food and beverage                                                           |  |                   |  |                   |  |                   |  |                   |  |                   |  |                    |  |                   |  |                    |  |                   |  |                   |   |  |                    |  |                    |  
|Other hotel operations                                                      |  |                   |  |                   |  |                   |  |                   |  |                   |  |                    |  |                   |  |                    |  |                   |  |                   |   |  |                    |  |                    |  
|Office rental, parking and other revenue                                    |  | 1                  |  |                   |  |                   |  | 49                 |  |                   |  |                    |  |                   |  |                    |  |                   |  |                   |   |  |                    |  |                    |  
|Participating lease revenue                                                 |  | 583                |  |                   |  |                   |  | 432                |  | 1,413              |  |                    |  | 604                |  | 692                 |  | 829                |  |                   |   |  |                    |  |                    |  
|                                                                            |  |                    |  |                    |  |                    |  |                    |  |                    |  |                     |  |                    |  |                     |  |                    |  |                    |   |  |                     |  |                     |  
|Total revenue                                                               |  | 584                |  |                   |  |                   |  | 481                |  | 1,413              |  |                    |  | 604                |  | 692                 |  | 829                |  |                   |   |  |                    |  |                    |  
|                                                                            |  |                    |  |                    |  |                    |  |                    |  |                    |  |                     |  |                    |  |                     |  |                    |  |                    |   |  |                     |  |                     |  
|Hotel operating expenses:                                                   |  |                    |  |                    |  |                    |  |                    |  |                    |  |                     |  |                    |  |                     |  |                    |  |                    |   |  |                     |  |                     |  
|Rooms                                                                       |  |                   |  |                   |  |                   |  |                   |  |                   |  |                    |  |                   |  |                    |  |                   |  |                   |   |  |                    |  |                    |  
|Food and beverage                                                           |  |                   |  |                   |  |                   |  |                   |  |                   |  |                    |  |                   |  |                    |  |                   |  |                   |   |  |                    |  |                    |  
|Other hotel operating expenses                                              |  |                   |  |                   |  |                   |  |                   |  |                   |  |                    |  |                   |  |                    |  |                   |  |                   |   |  |                    |  |                    |  
|Office rental, parking and other expenses                                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                    |  |                   |  |                    |  |                   |  |                   |   |  |                    |  |                    |  
|Other operating expenses:                                                   |  |                    |  |                    |  |                    |  |                    |  |                    |  |                     |  |                    |  |                     |  |                    |  |                    |   |  |                     |  |                     |  
|General and administrative, hotel                                           |  |                   |  |                   |  |                   |  |                   |  |                   |  |                    |  |                   |  |                    |  |                   |  |                   |   |  |                    |  |                    |  
|General and administrative, corporate                                       |  |                   |  |                   |  |                   |  |                   |  |                   |  |                    |  |                   |  |                    |  |                   |  |                   |   |  |                    |  |                    |  
|Property operating costs                                                    |  |                   |  |                   |  |                   |  |                   |  |                   |  |                    |  |                   |  |                    |  |                   |  |                   |   |  |                    |  |                    |  
|Depreciation and amortization                                               |  | 178                |  |                   |  |                   |  | 137                |  | 410                |  |                    |  | 128                |  | 196                 |  | 209                |  |                   |   |  |                    |  |                    |  
|Property taxes, insurance and other                                         |  | 109                |  |                   |  |                   |  | 78                 |  | 153                |  |                    |  | 47                 |  | 98                  |  | 105                |  |                   |   |  |                    |  |                    |  
|Loss on asset impairments                                                   |  |                   |  |                   |  |                   |  |                   |  |                   |  |                    |  |                   |  |                    |  |                   |  |                   |   |  |                    |  |                    |  
|Write-off of deferred financing fees                                        |  |                   |  |                   |  |                   |  |                   |  |                   |  |                    |  |                   |  |                    |  |                   |  |                   |   |  |                    |  |                    |  
|                                                                            |  |                    |  |                    |  |                    |  |                    |  |                    |  |                     |  |                    |  |                     |  |                    |  |                    |   |  |                     |  |                     |  
|Operating expenses                                                          |  | 287                |  |                   |  |                   |  | 215                |  | 563                |  |                    |  | 175                |  | 294                 |  | 314                |  |                   |   |  |                    |  |                    |  
|                                                                            |  |                    |  |                    |  |                    |  |                    |  |                    |  |                     |  |                    |  |                     |  |                    |  |                    |   |  |                     |  |                     |  
|Equity in income/loss of and interest earned from unconsolidated affiliates |  |                   |  |                   |  |                   |  |                   |  |                   |  |                    |  |                   |  |                    |  |                   |  |                   |   |  |                    |  |                    |  
|Operating income (loss)                                                     |  | 297                |  |                   |  |                   |  | 266                |  | 850                |  |                    |  | 429                |  | 398                 |  | 515                |  |                   |   |  |                    |  |                    |  
|                                                                            |  |                    |  |                    |  |                    |  |                    |  |                    |  |                     |  |                    |  |                     |  |                    |  |                    |   |  |                     |  |                     |  
|Minority interest income (expense)                                          |  |                   |  |                   |  |                   |  |                   |  |                   |  |                    |  |                   |  |                    |  |                   |  |                   |   |  |                    |  |                    |  
|Interest expense, net                                                       |  |                   |  |                   |  |                   |  |                   |  |                   |  |                    |  |                   |  |                    |  |                   |  |                   |   |  |                    |  |                    |  
|Loss on early extinguishments of debt                                       |  |                   |  |                   |  |                   |  |                   |  |                   |  |                    |  |                   |  |                    |  |                   |  |                   |   |  |                    |  |                    |  
|Equity in income from consolidated entities                                 |  |                   |  |                   |  |                   |  |                   |  |                   |  |                    |  |                   |  |                    |  |                   |  |                   |   |  |                    |  |                    |  
|                                                                            |  |                    |  |                    |  |                    |  |                    |  |                    |  |                     |  |                    |  |                     |  |                    |  |                    |   |  |                     |  |                     |  
|(Loss) income before income taxes and discontinued operations               |  | 297                |  |                   |  |                   |  | 266                |  | 850                |  |                    |  | 429                |  | 398                 |  | 515                |  |                   |   |  |                    |  |                    |  
|Income tax benefit                                                          |  |                   |  |                   |  |                   |  |                   |  |                   |  |                    |  |                   |  |                    |  |                   |  |                   |   |  |                    |  |                    |  
|                                                                            |  |                    |  |                    |  |                    |  |                    |  |                    |  |                     |  |                    |  |                     |  |                    |  |                    |   |  |                     |  |                     |  
|(Loss) income from continuing operations                                    |  | 297                |  |                   |  |                   |  | 266                |  | 850                |  |                    |  | 429                |  | 398                 |  | 515                |  |                   |   |  |                    |  |                    |  
|Discontinued operations:                                                    |  |                    |  |                    |  |                    |  |                    |  |                    |  |                     |  |                    |  |                     |  |                    |  |                    |   |  |                     |  |                     |  
|(Loss) income from discontinued operations before income taxes              |  |                   |  |                   |  |                   |  |                   |  |                   |  | 165                 |  |                   |  |                    |  |                   |  | (203               | ) |  |                    |  | (403                | )
|Income tax benefit                                                          |  |                   |  |                   |  |                   |  |                   |  |                   |  |                    |  |                   |  |                    |  |                   |  |                   |   |  |                    |  |                    |  
|                                                                            |  |                    |  |                    |  |                    |  |                    |  |                    |  |                     |  |                    |  |                     |  |                    |  |                    |   |  |                     |  |                     |  
|(Loss) income from discontinued operations                                  |  |                   |  |                   |  |                   |  |                   |  |                   |  | 165                 |  |                   |  |                    |  |                   |  | (203               | ) |  |                    |  | (403                | )
|                                                                            |  |                    |  |                    |  |                    |  |                    |  |                    |  |                     |  |                    |  |                     |  |                    |  |                    |   |  |                     |  |                     |  
|Net income (loss)                                                           |  | 297                |  |                   |  |                   |  | 266                |  | 850                |  | 165                 |  | 429                |  | 398                 |  | 515                |  | (203               | ) |  |                    |  | (403                | )
|                                                                            |  |                    |  |                    |  |                    |  |                    |  |                    |  |                     |  |                    |  |                     |  |                    |  |                    |   |  |                     |  |                     |  



24



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Operations

Three Months Ended March 31, 2004

(Dollars in thousands)

|                                                                            |  |                    |  |                    |  |                    |   |  |                            |   |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |  |                   
|--------------------------------------------------------------------------- |  | ------------------ |  | ------------------ |  | ------------------ | - |  | -------------------------- | - |  | ------------------ |  | ------------------ |  | ----------------- |  | ------------------ |  | ------------------ |  | ------------------ |  | --------------------- |  | ------------------
|                                                                            |  | MeriStarSub 7E,LLC |  | MeriStarSub 3D,LLC |  | MeriStarSub 1A,LLC |   |  | MeriStarSub 7AJointVenture |   |  | MeriStarSub 2B,LLC |  | MeriStarSub 3A,LLC |  | MeriStarSub 4A,LP |  | MeriStarSub 4D,LLC |  | MeriStarSub 2A,LLC |  | MeriStarSub 6L,LLC |  | MDVLimitedPartnership |  | MeriStarSub 5C,LLC
|Revenue:                                                                    |  |                    |  |                    |  |                    |   |  |                            |   |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |  |                   
|Hotel operations:                                                           |  |                    |  |                    |  |                    |   |  |                            |   |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |  |                   
|Rooms                                                                       |  |                   |  |                   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                  
|Food and beverage                                                           |  |                   |  |                   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                  
|Other hotel operations                                                      |  |                   |  |                   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                  
|Office rental, parking and other revenue                                    |  | 1                  |  |                   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                  
|Participating lease revenue                                                 |  | 345                |  | 376                |  | 422                |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  | 130                   |  |                  
|                                                                            |  |                    |  |                    |  |                    |   |  |                            |   |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |  |                   
|Total revenue                                                               |  | 346                |  | 376                |  | 422                |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  | 130                   |  |                  
|                                                                            |  |                    |  |                    |  |                    |   |  |                            |   |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |  |                   
|Hotel operating expenses:                                                   |  |                    |  |                    |  |                    |   |  |                            |   |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |  |                   
|Rooms                                                                       |  |                   |  |                   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                  
|Food and beverage                                                           |  |                   |  |                   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                  
|Other hotel operating expenses                                              |  |                   |  |                   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                  
|Office rental, parking and other expenses                                   |  |                   |  |                   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                  
|Other operating expenses:                                                   |  |                    |  |                    |  |                    |   |  |                            |   |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |  |                   
|General and administrative, hotel                                           |  |                   |  |                   |  | 34                 |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                  
|General and administrative, corporate                                       |  |                   |  |                   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                  
|Property operating costs                                                    |  |                   |  |                   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                  
|Depreciation and amortization                                               |  | 152                |  | 192                |  | 113                |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  | 23                    |  |                  
|Property taxes, insurance and other                                         |  | 52                 |  | 65                 |  | 108                |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  | 29                    |  |                  
|Loss on asset impairments                                                   |  |                   |  |                   |  | 184                |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                  
|Write-off of deferred financing fees                                        |  |                   |  |                   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                  
|                                                                            |  |                    |  |                    |  |                    |   |  |                            |   |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |  |                   
|Operating expenses                                                          |  | 204                |  | 257                |  | 439                |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  | 52                    |  |                  
|                                                                            |  |                    |  |                    |  |                    |   |  |                            |   |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |  |                   
|Equity in income/loss of and interest earned from unconsolidated affiliates |  |                   |  |                   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                  
|Operating income (loss)                                                     |  | 142                |  | 119                |  | (17                | ) |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  | 78                    |  |                  
|                                                                            |  |                    |  |                    |  |                    |   |  |                            |   |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |  |                   
|Minority interest income (expense)                                          |  |                   |  |                   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                  
|Interest expense, net                                                       |  |                   |  |                   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                  
|Loss on early extinguishments of debt                                       |  |                   |  |                   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                  
|Equity in income from consolidated entities                                 |  |                   |  |                   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                  
|                                                                            |  |                    |  |                    |  |                    |   |  |                            |   |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |  |                   
|(Loss) income before income taxes and discontinued operations               |  | 142                |  | 119                |  | (17                | ) |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  | 78                    |  |                  
|Income tax benefit                                                          |  |                   |  |                   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                  
|                                                                            |  |                    |  |                    |  |                    |   |  |                            |   |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |  |                   
|(Loss) income from continuing operations                                    |  | 142                |  | 119                |  | (17                | ) |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  | 78                    |  |                  
|Discontinued operations:                                                    |  |                    |  |                    |  |                    |   |  |                            |   |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |  |                   
|(Loss) income from discontinued operations before income taxes              |  |                   |  |                   |  |                   |   |  | (664                       | ) |  |                   |  | 89                 |  | 96                |  |                   |  |                   |  | 1,852              |  |                      |  |                  
|Income tax benefit                                                          |  |                   |  |                   |  |                   |   |  |                           |   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |  |                  
|                                                                            |  |                    |  |                    |  |                    |   |  |                            |   |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |  |                   
|(Loss) income from discontinued operations                                  |  |                   |  |                   |  |                   |   |  | (664                       | ) |  |                   |  | 89                 |  | 96                |  |                   |  |                   |  | 1,852              |  |                      |  |                  
|                                                                            |  |                    |  |                    |  |                    |   |  |                            |   |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |  |                   
|Net income (loss)                                                           |  | 142                |  | 119                |  | (17                | ) |  | (664                       | ) |  |                   |  | 89                 |  | 96                |  |                   |  |                   |  | 1,852              |  | 78                    |  |                  
|                                                                            |  |                    |  |                    |  |                    |   |  |                            |   |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |  |                   



25



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Operations

Three Months Ended March 31, 2004

(Dollars in thousands)

|                                                                            |  |                    |  |                    |  |                     |   |  |                    |  |                    |  |                    |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                   
|--------------------------------------------------------------------------- |  | ------------------ |  | ------------------ |  | ------------------- | - |  | ------------------ |  | ------------------ |  | ------------------ |  | ------------------- |  | ------------------ | - |  | ------------------ |  | ------------------ |  | ------------- |  | ------------------
|                                                                            |  | MeriStarSub 6J,LLC |  | MeriStarSub 1D,LLC |  | MeriStarSub 7B,L.P. |   |  | MeriStarSub 7D,LLC |  | MeriStarSub 7G,LLC |  | MeriStarSub 6B,LLC |  | MeriStarSub 4I,L.P. |  | MeriStarSub 5D,LLC |   |  | MeriStarSub 5H,LLC |  | MeriStarSub 7H,LLC |  | AGHPSS I,Inc. |  | MeriStarSub 2D,LLC
|Revenue:                                                                    |  |                    |  |                    |  |                     |   |  |                    |  |                    |  |                    |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                   
|Hotel operations:                                                           |  |                    |  |                    |  |                     |   |  |                    |  |                    |  |                    |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                   
|Rooms                                                                       |  |                   |  |                   |  |                    |   |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|Food and beverage                                                           |  |                   |  |                   |  |                    |   |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|Other hotel operations                                                      |  |                   |  |                   |  |                    |   |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|Office rental, parking and other revenue                                    |  |                   |  | 85                 |  |                    |   |  | 436                |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|Participating lease revenue                                                 |  | 496                |  | 1,389              |  |                    |   |  | 1,461              |  |                   |  | 237                |  |                    |  | 459                |   |  |                   |  |                   |  |              |  |                  
|                                                                            |  |                    |  |                    |  |                     |   |  |                    |  |                    |  |                    |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                   
|Total revenue                                                               |  | 496                |  | 1,474              |  |                    |   |  | 1,897              |  |                   |  | 237                |  |                    |  | 459                |   |  |                   |  |                   |  |              |  |                  
|                                                                            |  |                    |  |                    |  |                     |   |  |                    |  |                    |  |                    |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                   
|Hotel operating expenses:                                                   |  |                    |  |                    |  |                     |   |  |                    |  |                    |  |                    |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                   
|Rooms                                                                       |  |                   |  |                   |  |                    |   |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|Food and beverage                                                           |  |                   |  |                   |  |                    |   |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|Other hotel operating expenses                                              |  |                   |  |                   |  |                    |   |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|Office rental, parking and other expenses                                   |  |                   |  | 28                 |  |                    |   |  | 199                |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|Other operating expenses:                                                   |  |                    |  |                    |  |                     |   |  |                    |  |                    |  |                    |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                   
|General and administrative, hotel                                           |  |                   |  |                   |  |                    |   |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|General and administrative, corporate                                       |  |                   |  |                   |  |                    |   |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|Property operating costs                                                    |  |                   |  |                   |  |                    |   |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|Depreciation and amortization                                               |  | 141                |  | 569                |  |                    |   |  | 431                |  |                   |  | 112                |  |                    |  | 369                |   |  |                   |  |                   |  |              |  |                  
|Property taxes, insurance and other                                         |  | 75                 |  | 418                |  |                    |   |  | 658                |  |                   |  | 58                 |  |                    |  | 53                 |   |  |                   |  |                   |  |              |  |                  
|Loss on asset impairments                                                   |  |                   |  |                   |  |                    |   |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|Write-off of deferred financing fees                                        |  |                   |  |                   |  |                    |   |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|                                                                            |  |                    |  |                    |  |                     |   |  |                    |  |                    |  |                    |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                   
|Operating expenses                                                          |  | 216                |  | 1,015              |  |                    |   |  | 1,288              |  |                   |  | 170                |  |                    |  | 422                |   |  |                   |  |                   |  |              |  |                  
|                                                                            |  |                    |  |                    |  |                     |   |  |                    |  |                    |  |                    |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                   
|Equity in income/loss of and interest earned from unconsolidated affiliates |  |                   |  |                   |  |                    |   |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|Operating income (loss)                                                     |  | 280                |  | 459                |  |                    |   |  | 609                |  |                   |  | 67                 |  |                    |  | 37                 |   |  |                   |  |                   |  |              |  |                  
|                                                                            |  |                    |  |                    |  |                     |   |  |                    |  |                    |  |                    |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                   
|Minority interest income (expense)                                          |  |                   |  |                   |  |                    |   |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|Interest expense, net                                                       |  |                   |  |                   |  |                    |   |  |                   |  |                   |  |                   |  |                    |  | (307               | ) |  |                   |  |                   |  |              |  |                  
|Loss on early extinguishments of debt                                       |  |                   |  |                   |  |                    |   |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|Equity in income from consolidated entities                                 |  |                   |  |                   |  |                    |   |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|                                                                            |  |                    |  |                    |  |                     |   |  |                    |  |                    |  |                    |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                   
|(Loss) income before income taxes and discontinued operations               |  | 280                |  | 459                |  |                    |   |  | 609                |  |                   |  | 67                 |  |                    |  | (270               | ) |  |                   |  |                   |  |              |  |                  
|Income tax benefit                                                          |  |                   |  |                   |  |                    |   |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|                                                                            |  |                    |  |                    |  |                     |   |  |                    |  |                    |  |                    |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                   
|(Loss) income from continuing operations                                    |  | 280                |  | 459                |  |                    |   |  | 609                |  |                   |  | 67                 |  |                    |  | (270               | ) |  |                   |  |                   |  |              |  |                  
|Discontinued operations:                                                    |  |                    |  |                    |  |                     |   |  |                    |  |                    |  |                    |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                   
|(Loss) income from discontinued operations before income taxes              |  |                   |  |                   |  | (284                | ) |  |                   |  | 47                 |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|Income tax benefit                                                          |  |                   |  |                   |  |                    |   |  |                   |  |                   |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|                                                                            |  |                    |  |                    |  |                     |   |  |                    |  |                    |  |                    |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                   
|(Loss) income from discontinued operations                                  |  |                   |  |                   |  | (284                | ) |  |                   |  | 47                 |  |                   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|                                                                            |  |                    |  |                    |  |                     |   |  |                    |  |                    |  |                    |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                   
|Net income (loss)                                                           |  | 280                |  | 459                |  | (284                | ) |  | 609                |  | 47                 |  | 67                 |  |                    |  | (270               | ) |  |                   |  |                   |  |              |  |                  
|                                                                            |  |                    |  |                    |  |                     |   |  |                    |  |                    |  |                    |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                   



26



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Operations

Three Months Ended March 31, 2004

(Dollars in thousands)

|                                                                            |  |                     |  |                    |  |                    |  |                    |  |                    |  |                     |   |  |                    |   |  |                     |  |                    |  |                    
|--------------------------------------------------------------------------- |  | ------------------- |  | ------------------ |  | ------------------ |  | ------------------ |  | ------------------ |  | ------------------- | - |  | ------------------ | - |  | ------------------- |  | ------------------ |  | -------------------
|                                                                            |  | MeriStarSub 4F,L.P. |  | MeriStarSub 5K,LLC |  | MeriStarSub 5M,LLC |  | MeriStarSub 1E,LLC |  | MeriStarSub 5O,LLC |  | MeriStarSub 4B,L.P. |   |  | MeriStarSub 2C,LLC |   |  | MeriStarSub 4G,L.P. |  | MeriStarSub 3B,LLC |  | MeriStarSub 5G,L.P.
|Revenue:                                                                    |  |                     |  |                    |  |                    |  |                    |  |                    |  |                     |   |  |                    |   |  |                     |  |                    |  |                    
|Hotel operations:                                                           |  |                     |  |                    |  |                    |  |                    |  |                    |  |                     |   |  |                    |   |  |                     |  |                    |  |                    
|Rooms                                                                       |  |                    |  |                   |  |                   |  |                   |  |                   |  |                    |   |  |                   |   |  |                    |  |                   |  |                   
|Food and beverage                                                           |  |                    |  |                   |  |                   |  |                   |  |                   |  |                    |   |  |                   |   |  |                    |  |                   |  |                   
|Other hotel operations                                                      |  |                    |  |                   |  |                   |  |                   |  |                   |  |                    |   |  |                   |   |  |                    |  |                   |  |                   
|Office rental, parking and other revenue                                    |  | 4                   |  |                   |  |                   |  |                   |  |                   |  |                    |   |  |                   |   |  |                    |  |                   |  | 7                  
|Participating lease revenue                                                 |  | 492                 |  |                   |  | 569                |  |                   |  | 261                |  |                    |   |  |                   |   |  |                    |  |                   |  | 3,062              
|                                                                            |  |                     |  |                    |  |                    |  |                    |  |                    |  |                     |   |  |                    |   |  |                     |  |                    |  |                    
|Total revenue                                                               |  | 496                 |  |                   |  | 569                |  |                   |  | 261                |  |                    |   |  |                   |   |  |                    |  |                   |  | 3,069              
|                                                                            |  |                     |  |                    |  |                    |  |                    |  |                    |  |                     |   |  |                    |   |  |                     |  |                    |  |                    
|Hotel operating expenses:                                                   |  |                     |  |                    |  |                    |  |                    |  |                    |  |                     |   |  |                    |   |  |                     |  |                    |  |                    
|Rooms                                                                       |  |                    |  |                   |  |                   |  |                   |  |                   |  |                    |   |  |                   |   |  |                    |  |                   |  |                   
|Food and beverage                                                           |  |                    |  |                   |  |                   |  |                   |  |                   |  |                    |   |  |                   |   |  |                    |  |                   |  |                   
|Other hotel operating expenses                                              |  |                    |  |                   |  |                   |  |                   |  |                   |  |                    |   |  |                   |   |  |                    |  |                   |  |                   
|Office rental, parking and other expenses                                   |  |                    |  |                   |  |                   |  |                   |  |                   |  |                    |   |  |                   |   |  |                    |  |                   |  |                   
|Other operating expenses:                                                   |  |                     |  |                    |  |                    |  |                    |  |                    |  |                     |   |  |                    |   |  |                     |  |                    |  |                    
|General and administrative, hotel                                           |  |                    |  |                   |  |                   |  |                   |  |                   |  |                    |   |  |                   |   |  |                    |  |                   |  |                   
|General and administrative, corporate                                       |  |                    |  |                   |  |                   |  |                   |  |                   |  |                    |   |  |                   |   |  |                    |  |                   |  |                   
|Property operating costs                                                    |  |                    |  |                   |  |                   |  |                   |  |                   |  |                    |   |  |                   |   |  |                    |  |                   |  |                   
|Depreciation and amortization                                               |  | 277                 |  |                   |  | 118                |  |                   |  | 57                 |  |                    |   |  |                   |   |  |                    |  |                   |  | 1,572              
|Property taxes, insurance and other                                         |  | 89                  |  |                   |  | 71                 |  |                   |  | 27                 |  |                    |   |  |                   |   |  |                    |  |                   |  | 426                
|Loss on asset impairments                                                   |  |                    |  |                   |  |                   |  |                   |  |                   |  |                    |   |  |                   |   |  |                    |  |                   |  |                   
|Write-off of deferred financing fees                                        |  |                    |  |                   |  |                   |  |                   |  |                   |  |                    |   |  |                   |   |  |                    |  |                   |  |                   
|                                                                            |  |                     |  |                    |  |                    |  |                    |  |                    |  |                     |   |  |                    |   |  |                     |  |                    |  |                    
|Operating expenses                                                          |  | 366                 |  |                   |  | 189                |  |                   |  | 84                 |  |                    |   |  |                   |   |  |                    |  |                   |  | 1,998              
|                                                                            |  |                     |  |                    |  |                    |  |                    |  |                    |  |                     |   |  |                    |   |  |                     |  |                    |  |                    
|Equity in income/loss of and interest earned from unconsolidated affiliates |  |                    |  |                   |  |                   |  |                   |  |                   |  |                    |   |  |                   |   |  |                    |  |                   |  |                   
|Operating income (loss)                                                     |  | 130                 |  |                   |  | 380                |  |                   |  | 177                |  |                    |   |  |                   |   |  |                    |  |                   |  | 1,071              
|                                                                            |  |                     |  |                    |  |                    |  |                    |  |                    |  |                     |   |  |                    |   |  |                     |  |                    |  |                    
|Minority interest income (expense)                                          |  |                    |  |                   |  |                   |  |                   |  |                   |  |                    |   |  |                   |   |  |                    |  |                   |  |                   
|Interest expense, net                                                       |  |                    |  |                   |  |                   |  |                   |  |                   |  |                    |   |  |                   |   |  |                    |  |                   |  |                   
|Loss on early extinguishments of debt                                       |  |                    |  |                   |  |                   |  |                   |  |                   |  |                    |   |  |                   |   |  |                    |  |                   |  |                   
|Equity in income from consolidated entities                                 |  |                    |  |                   |  |                   |  |                   |  |                   |  |                    |   |  |                   |   |  |                    |  |                   |  |                   
|                                                                            |  |                     |  |                    |  |                    |  |                    |  |                    |  |                     |   |  |                    |   |  |                     |  |                    |  |                    
|(Loss) income before income taxes and discontinued operations               |  | 130                 |  |                   |  | 380                |  |                   |  | 177                |  |                    |   |  |                   |   |  |                    |  |                   |  | 1,071              
|Income tax
benefit                                                          |  |                    |  |                   |  |                   |  |                   |  |                   |  |                    |   |  |                   |   |  |                    |  |                   |  |                   
|                                                                            |  |                     |  |                    |  |                    |  |                    |  |                    |  |                     |   |  |                    |   |  |                     |  |                    |  |                    
|(Loss) income from continuing operations                                    |  | 130                 |  |                   |  | 380                |  |                   |  | 177                |  |                    |   |  |                   |   |  |                    |  |                   |  | 1,071              
|Discontinued operations:                                                    |  |                     |  |                    |  |                    |  |                    |  |                    |  |                     |   |  |                    |   |  |                     |  |                    |  |                    
|(Loss) income from discontinued operations before income taxes              |  |                    |  | 264                |  |                   |  |                   |  |                   |  | (216                | ) |  | (978               | ) |  | 85                  |  |                   |  |                   
|Income tax benefit                                                          |  |                    |  |                   |  |                   |  |                   |  |                   |  |                    |   |  |                   |   |  |                    |  |                   |  |                   
|                                                                            |  |                     |  |                    |  |                    |  |                    |  |                    |  |                     |   |  |                    |   |  |                     |  |                    |  |                    
|(Loss) income from discontinued operations                                  |  |                    |  | 264                |  |                   |  |                   |  |                   |  | (216                | ) |  | (978               | ) |  | 85                  |  |                   |  |                   
|                                                                            |  |                     |  |                    |  |                    |  |                    |  |                    |  |                     |   |  |                    |   |  |                     |  |                    |  |                    
|Net income (loss)                                                           |  | 130                 |  | 264                |  | 380                |  |                   |  | 177                |  | (216                | ) |  | (978               | ) |  | 85                  |  |                   |  | 1,071              
|                                                                            |  |                     |  |                    |  |                    |  |                    |  |                    |  |                     |   |  |                    |   |  |                     |  |                    |  |                    



27



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Operations

Three Months Ended March 31, 2004

(Dollars in thousands)

|                                                                            |  |                    |  |                    |  |                    |  |                    |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |  |                   
|--------------------------------------------------------------------------- |  | ------------------ |  | ------------------ |  | ------------------ |  | ------------------ |  | ------------------ | - |  | ------------------ | - |  | ------------------ |  | ------------------ |  | ------------------ |  | ------------------
|                                                                            |  | MeriStarSub 5N,LLC |  | MeriStarSub 5P,LLC |  | MeriStarSub 5J,LLC |  | MeriStarSub 5Q,LLC |  | MeriStarSub 5A,LLC |   |  | MeriStarSub 8D,LLC |   |  | MeriStarSub 4J,LLC |  | MeriStarSub 6K,LLC |  | MeriStarSub 5E,LLC |  | MeriStarSub 6I,LLC
|Revenue:                                                                    |  |                    |  |                    |  |                    |  |                    |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |  |                   
|Hotel operations:                                                           |  |                    |  |                    |  |                    |  |                    |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |  |                   
|Rooms                                                                       |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |  |                  
|Food and beverage                                                           |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |  |                  
|Other hotel operations                                                      |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |  |                  
|Office rental, parking and other revenue                                    |  |                   |  |                   |  |                   |  |                   |  | 36                 |   |  |                   |   |  | 32                 |  |                   |  |                   |  |                  
|Participating lease revenue                                                 |  | 308                |  | 167                |  | 2,675              |  | 571                |  | 1,631              |   |  |                   |   |  | 654                |  |                   |  |                   |  |                  
|                                                                            |  |                    |  |                    |  |                    |  |                    |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |  |                   
|Total revenue                                                               |  | 308                |  | 167                |  | 2,675              |  | 571                |  | 1,667              |   |  |                   |   |  | 686                |  |                   |  |                   |  |                  
|                                                                            |  |                    |  |                    |  |                    |  |                    |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |  |                   
|Hotel operating expenses:                                                   |  |                    |  |                    |  |                    |  |                    |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |  |                   
|Rooms                                                                       |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |  |                  
|Food and beverage                                                           |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |  |                  
|Other hotel operating expenses                                              |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |  |                  
|Office rental, parking and other expenses                                   |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   |   |  | 68                 |  |                   |  |                   |  |                  
|Other operating expenses:                                                   |  |                    |  |                    |  |                    |  |                    |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |  |                   
|General and administrative, hotel                                           |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |  |                  
|General and administrative, corporate                                       |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |  |                  
|Property operating costs                                                    |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |  |                  
|Depreciation and amortization                                               |  | 34                 |  | 1                  |  | 1,415              |  | 140                |  | 269                |   |  |                   |   |  | 315                |  |                   |  |                   |  |                  
|Property taxes, insurance and other                                         |  | 28                 |  | 2                  |  | 375                |  | 57                 |  | 189                |   |  |                   |   |  | 91                 |  |                   |  |                   |  |                  
|Loss on asset impairments                                                   |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |  |                  
|Write-off of deferred financing fees                                        |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |  |                  
|                                                                            |  |                    |  |                    |  |                    |  |                    |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |  |                   
|Operating expenses                                                          |  | 62                 |  | 3                  |  | 1,790              |  | 197                |  | 458                |   |  |                   |   |  | 474                |  |                   |  |                   |  |                  
|                                                                            |  |                    |  |                    |  |                    |  |                    |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |  |                   
|Equity in income/loss of and interest earned from unconsolidated affiliates |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |  |                  
|Operating income (loss)                                                     |  | 246                |  | 164                |  | 885                |  | 374                |  | 1,209              |   |  |                   |   |  | 212                |  |                   |  |                   |  |                  
|                                                                            |  |                    |  |                    |  |                    |  |                    |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |  |                   
|Minority interest income (expense)                                          |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |  |                  
|Interest expense, net                                                       |  |                   |  |                   |  |                   |  |                   |  | (708               | ) |  |                   |   |  |                   |  |                   |  |                   |  |                  
|Loss on early extinguishments of debt                                       |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |  |                  
|Equity in income from consolidated entities                                 |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |  |                  
|                                                                            |  |                    |  |                    |  |                    |  |                    |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |  |                   
|(Loss) income before income taxes and discontinued operations               |  | 246                |  | 164                |  | 885                |  | 374                |  | 501                |   |  |                   |   |  | 212                |  |                   |  |                   |  |                  
|Income tax benefit                                                          |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |  |                  
|                                                                            |  |                    |  |                    |  |                    |  |                    |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |  |                   
|(Loss) income from continuing operations                                    |  | 246                |  | 164                |  | 885                |  | 374                |  | 501                |   |  |                   |   |  | 212                |  |                   |  |                   |  |                  
|Discontinued operations:                                                    |  |                    |  |                    |  |                    |  |                    |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |  |                   
|(Loss) income from discontinued operations before income taxes              |  |                   |  |                   |  |                   |  |                   |  |                   |   |  | (857               | ) |  |                   |  |                   |  |                   |  |                  
|Income tax benefit                                                          |  |                   |  |                   |  |                   |  |                   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |  |                  
|                                                                            |  |                    |  |                    |  |                    |  |                    |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |  |                   
|(Loss) income from discontinued operations                                  |  |                   |  |                   |  |                   |  |                   |  |                   |   |  | (857               | ) |  |                   |  |                   |  |                   |  |                  
|                                                                            |  |                    |  |                    |  |                    |  |                    |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |  |                   
|Net income (loss)                                                           |  | 246                |  | 164                |  | 885                |  | 374                |  | 501                |   |  | (857               | ) |  | 212                |  |                   |  |                   |  |                  
|                                                                            |  |                    |  |                    |  |                    |  |                    |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |  |                   



28



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Operations

Three Months Ended March 31, 2004

(Dollars in thousands)

|                                                                            |  |                    |  |                              |  |                                |  |                    |  |                    |  |                          |   |  |                            |   |  |              |   |  |                   |         |  
|--------------------------------------------------------------------------- |  | ------------------ |  | ---------------------------- |  | ------------------------------ |  | ------------------ |  | ------------------ |  | ------------------------ | - |  | -------------------------- | - |  | ------------ | - |  | ----------------- | ------- | -
|                                                                            |  | MeriStarSub 5I,LLC |  | CapStarCherryHillCompany,LLC |  | MeristarAcquisitionCompany,LLC |  | MeriStarSub 6A,LLC |  | MeriStarSub 6F,LLC |  | MeriStarHotelLessee,Inc. |   |  | GuarantorSubsidiariesTotal |   |  | Eliminations |   |  | TotalConsolidated |        
|Revenue:                                                                    |  |                    |  |                              |  |                                |  |                    |  |                    |  |                          |   |  |                            |   |  |              |   |  |                   |         |  
|Hotel operations:                                                           |  |                    |  |                              |  |                                |  |                    |  |                    |  |                          |   |  |                            |   |  |              |   |  |                   |         |  
|Rooms                                                                       |  |                   |  |                             |  |                               |  |                   |  |                   |  | 129,992                  |   |  | 129,992                    |   |  |             |   |  | $                 | 129,992 |  
|Food and beverage                                                           |  |                   |  |                             |  |                               |  |                   |  |                   |  | 49,110                   |   |  | 49,110                     |   |  |             |   |  |                   | 49,110  |  
|Other hotel operations                                                      |  |                   |  |                             |  |                               |  |                   |  |                   |  | 15,340                   |   |  | 15,340                     |   |  |             |   |  |                   | 15,340  |  
|Office rental, parking and other revenue                                    |  |                   |  |                             |  |                               |  |                   |  |                   |  | 70                       |   |  | 730                        |   |  |             |   |  |                   | 1,368   |  
|Participating lease revenue                                                 |  |                   |  |                             |  |                               |  |                   |  |                   |  |                         |   |  | 24,440                     |   |  | (58,422      | ) |  |                   |        |  
|                                                                            |  |                    |  |                              |  |                                |  |                    |  |                    |  |                          |   |  |                            |   |  |              |   |  |                   |         |  
|Total revenue                                                               |  |                   |  |                             |  |                               |  |                   |  |                   |  | 194,512                  |   |  | 219,612                    |   |  | (58,422      | ) |  |                   | 195,810 |  
|                                                                            |  |                    |  |                              |  |                                |  |                    |  |                    |  |                          |   |  |                            |   |  |              |   |  |                   |         |  
|Hotel operating expenses:                                                   |  |                    |  |                              |  |                                |  |                    |  |                    |  |                          |   |  |                            |   |  |              |   |  |                   |         |  
|Rooms                                                                       |  |                   |  |                             |  |                               |  |                   |  |                   |  | 31,686                   |   |  | 31,686                     |   |  |             |   |  |                   | 31,686  |  
|Food and beverage                                                           |  |                   |  |                             |  |                               |  |                   |  |                   |  | 36,907                   |   |  | 36,907                     |   |  |             |   |  |                   | 36,907  |  
|Other hotel operating expenses                                              |  |                   |  |                             |  |                               |  |                   |  |                   |  | 9,475                    |   |  | 9,475                      |   |  |             |   |  |                   | 9,475   |  
|Office rental, parking and other expenses                                   |  |                   |  |                             |  |                               |  |                   |  |                   |  |                         |   |  | 295                        |   |  |             |   |  |                   | 585     |  
|Other operating expenses:                                                   |  |                    |  |                              |  |                                |  |                    |  |                    |  |                          |   |  |                            |   |  |              |   |  |                   |         |  
|General and administrative, hotel                                           |  |                   |  |                             |  |                               |  |                   |  |                   |  | 32,230                   |   |  | 32,264                     |   |  |             |   |  |                   | 32,264  |  
|General and administrative, corporate                                       |  |                   |  |                             |  |                               |  |                   |  |                   |  | 51                       |   |  | 51                         |   |  |             |   |  |                   | 3,882   |  
|Property operating costs                                                    |  |                   |  |                             |  |                               |  |                   |  |                   |  | 29,735                   |   |  | 29,735                     |   |  |             |   |  |                   | 29,735  |  
|Depreciation and amortization                                               |  |                   |  |                             |  |                               |  |                   |  |                   |  | 39                       |   |  | 9,153                      |   |  |             |   |  |                   | 24,203  |  
|Property taxes, insurance and other                                         |  |                   |  |                             |  |                               |  |                   |  |                   |  | 64,766                   |   |  | 69,021                     |   |  | (58,422      | ) |  |                   | 16,334  |  
|Loss on asset impairments                                                   |  |                   |  |                             |  |                               |  |                   |  |                   |  |                         |   |  | 184                        |   |  |             |   |  |                   | 184     |  
|Write-off of deferred financing fees                                        |  |                   |  |                             |  |                               |  |                   |  |                   |  |                         |   |  |                           |   |  |             |   |  |                   | 856     |  
|                                                                            |  |                    |  |                              |  |                                |  |                    |  |                    |  |                          |   |  |                            |   |  |              |   |  |                   |         |  
|Operating expenses                                                          |  |                   |  |                             |  |                               |  |                   |  |                   |  | 204,889                  |   |  | 218,771                    |   |  | (58,422      | ) |  |                   | 186,111 |  
|                                                                            |  |                    |  |                              |  |                                |  |                    |  |                    |  |                          |   |  |                            |   |  |              |   |  |                   |         |  
|Equity in income/loss of and interest earned from unconsolidated affiliates |  |                   |  |                             |  |                               |  |                   |  |                   |  |                         |   |  |                           |   |  |             |   |  |                   | 1,600   |  
|Operating income (loss)                                                     |  |                   |  |                             |  |                               |  |                   |  |                   |  | (10,377                  | ) |  | 841                        |   |  |             |   |  |                   | 11,299  |  
|                                                                            |  |                    |  |                              |  |                                |  |                    |  |                    |  |                          |   |  |                            |   |  |              |   |  |                   |         |  
|Minority interest income (expense)                                          |  |                   |  |                             |  |                               |  |                   |  |                   |  |                         |   |  |                           |   |  |             |   |  |                   | 4       |  
|Interest expense, net                                                       |  |                   |  |                             |  |                               |  |                   |  |                   |  | (1,642                   | ) |  | (2,657                     | ) |  |             |   |  |                   | (34,502 | )
|Loss on early extinguishments of debt                                       |  |                   |  |                             |  |                               |  |                   |  |                   |  |                         |   |  |                           |   |  |             |   |  |                   | (5,923  | )
|Equity in income from consolidated entities                                 |  |                   |  |                             |  |                               |  |                   |  |                   |  |                         |   |  |                           |   |  | 6,866        |   |  |                   |        |  
|                                                                            |  |                    |  |                              |  |                                |  |                    |  |                    |  |                          |   |  |                            |   |  |              |   |  |                   |         |  
|(Loss) income before income taxes and discontinued operations               |  |                   |  |                             |  |                               |  |                   |  |                   |  | (12,019                  | ) |  | (1,816                     | ) |  | 6,866        |   |  |                   | (29,122 | )
|Income tax benefit                                                          |  |                   |  |                             |  |                               |  |                   |  |                   |  |                         |   |  |                           |   |  |             |   |  |                   | 390     |  
|                                                                            |  |                    |  |                              |  |                                |  |                    |  |                    |  |                          |   |  |                            |   |  |              |   |  |                   |         |  
|(Loss) income from continuing operations                                    |  |                   |  |                             |  |                               |  |                   |  |                   |  | (12,019                  | ) |  | (1,816                     | ) |  | 6,866        |   |  |                   | (28,732 | )
|Discontinued operations:                                                    |  |                    |  |                              |  |                                |  |                    |  |                    |  |                          |   |  |                            |   |  |              |   |  |                   |         |  
|(Loss) income from discontinued operations before income taxes              |  |                   |  |                             |  |                               |  |                   |  |                   |  | (11,634                  | ) |  | (12,641                    | ) |  |             |   |  |                   | (12,220 | )
|Income tax benefit                                                          |  |                   |  |                             |  |                               |  |                   |  |                   |  |                         |   |  |                           |   |  |             |   |  |                   | 65      |  
|                                                                            |  |                    |  |                              |  |                                |  |                    |  |                    |  |                          |   |  |                            |   |  |              |   |  |                   |         |  
|(Loss) income from discontinued operations                                  |  |                   |  |                             |  |                               |  |                   |  |                   |  | (11,634                  | ) |  | (12,641                    | ) |  |             |   |  |                   | (12,155 | )
|                                                                            |  |                    |  |                              |  |                                |  |                    |  |                    |  |                          |   |  |                            |   |  |              |   |  |                   |         |  
|Net income (loss)                                                           |  |                   |  |                             |  |                               |  |                   |  |                   |  | (23,653                  | ) |  | (14,457                    | ) |  | 6,866        |   |  | $                 | (40,887 | )
|                                                                            |  |                    |  |                              |  |                                |  |                    |  |                    |  |                          |   |  |                            |   |  |              |   |  |                   |         |  



29



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Cash Flows

Three Months Ended March 31, 2005

(Dollars in thousands)



|                                                                                          |  |                             |          |   |                            |         |   |                               |        |   |                               |        |   |                    |   |                    |   |              |   |                     |      |   |                     |      |   |                    |        |  
|----------------------------------------------------------------------------------------- |  | --------------------------- | -------- | - | -------------------------- | ------- | - | ----------------------------- | ------ | - | ----------------------------- | ------ | - | ------------------ | - | ------------------ | - | ------------ | - | ------------------- | ---- | - | ------------------- | ---- | - | ------------------ | ------ | -
|                                                                                          |  | MeriStarHospitality OP,L.P. |          |   | Non- GuarantorSubsidiaries |         |   | MeriStarLexingtonMortgage,LLC |        |   | MeriStarLexingtonPartners,LLC |        |   | MeriStarSub 7C,LLC |   | MeriStarSub 8G,LLC |   | AGHUPREITLLC |   | MeriStarSub 6H,L.P. |      |   | MeriStarSub 8F,L.P. |      |   | MeriStarSub 8B,LLC |       
|Operating activities:                                                                     |  |                             |          |   |                            |         |   |                               |        |   |                               |        |   |                    |   |                    |   |              |   |                     |      |   |                     |      |   |                    |        |  
|Net income (loss)                                                                         |  | $                           | (13,749  | ) |                            | 9,694   |   |                               | 1,408  |   |                               | (1,341 | ) |                    |  |                    |  |              |  |                     | 111  |   |                     | 301  |   |                    | 1,052  |  
|Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |                             |          |   |                            |         |   |                               |        |   |                               |        |   |                    |   |                    |   |              |   |                     |      |   |                     |      |   |                    |        |  
|Depreciation and amortization                                                             |  |                             | 2,012    |   |                            | 13,257  |   |                               |       |   |                               | (29    | ) |                    |  |                    |  |              |  |                     | 157  |   |                     | 165  |   |                    | 623    |  
|Loss on early extinguishments of debt                                                     |  |                             | 60       |   |                            |        |   |                               |       |   |                               |       |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |  
|Minority interests                                                                        |  |                             | 5        |   |                            |        |   |                               |       |   |                               |       |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |  
|Equity in loss (income) of unconsolidated affiliates                                      |  |                             | (7,822   | ) |                            |        |   |                               |       |   |                               | 1,370  |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |  
|Amortization of unearned stock-based compensation                                         |  |                             | 277      |   |                            |        |   |                               |       |   |                               |       |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |  
|Changes in operating assets and liabilities:                                              |  |                             |          |   |                            |         |   |                               |        |   |                               |        |   |                    |   |                    |   |              |   |                     |      |   |                     |      |   |                    |        |  
|Accounts receivable                                                                       |  |                             | 11,752   |   |                            | 280     |   |                               |       |   |                               |       |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    | (63    | )
|Prepaid expenses and other assets                                                         |  |                             | 25       |   |                            | 844     |   |                               | 10     |   |                               | (96    | ) |                    |  |                    |  |              |  |                     | 3    |   |                     | 13   |   |                    | 15     |  
|Receivables from unconsolidated affiliates                                                |  |                             | 13,933   |   |                            |        |   |                               | 1,229  |   |                               | (2,158 | ) |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |  
|Due from/to Interstate Hotels & Resorts                                                   |  |                             | 461      |   |                            |        |   |                               |       |   |                               |       |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |  
|Accounts payable, accrued expenses, accrued interest and other liabilities                |  |                             | (7,005   | ) |                            | (1,434  | ) |                               |       |   |                               |       |   |                    |  |                    |  |              |  |                     | 22   |   |                     | (1   | ) |                    | 5      |  
|Due from/to subsidiaries                                                                  |  |                             | 202,954  |   |                            | 5,866   |   |                               | (1,624 | ) |                               | 913    |   |                    |  |                    |  |              |  |                     | (292 | ) |                     | (360 | ) |                    | 3,675  |  
|                                                                                          |  |                             |          |   |                            |         |   |                               |        |   |                               |        |   |                    |   |                    |   |              |   |                     |      |   |                     |      |   |                    |        |  
|Net cash provided by (used in) operating activities                                       |  |                             | 202,903  |   |                            | 28,507  |   |                               | 1,023  |   |                               | (1,341 | ) |                    |  |                    |  |              |  |                     | 1    |   |                     | 118  |   |                    | 5,307  |  
|                                                                                          |  |                             |          |   |                            |         |   |                               |        |   |                               |        |   |                    |   |                    |   |              |   |                     |      |   |                     |      |   |                    |        |  
|Investing activities:                                                                     |  |                             |          |   |                            |         |   |                               |        |   |                               |        |   |                    |   |                    |   |              |   |                     |      |   |                     |      |   |                    |        |  
|Capital expenditures for property and equipment                                           |  |                             | (1,472   | ) |                            | (27,830 | ) |                               | (929   | ) |                               | 1,341  |   |                    |  |                    |  |              |  |                     | (1   | ) |                     | (118 | ) |                    | (5,307 | )
|Proceeds from sales of assets                                                             |  |                             |         |   |                            |        |   |                               |       |   |                               |       |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |  
|(Increase) decrease in restricted cash                                                    |  |                             | (2,172   | ) |                            | (132    | ) |                               |       |   |                               |       |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |  
|                                                                                          |  |                             |          |   |                            |         |   |                               |        |   |                               |        |   |                    |   |                    |   |              |   |                     |      |   |                     |      |   |                    |        |  
|Net cash (used in) provided by investing activities                                       |  |                             | (3,644   | ) |                            | (27,962 | ) |                               | (929   | ) |                               | 1,341  |   |                    |  |                    |  |              |  |                     | (1   | ) |                     | (118 | ) |                    | (5,307 | )
|                                                                                          |  |                             |          |   |                            |         |   |                               |        |   |                               |        |   |                    |   |                    |   |              |   |                     |      |   |                     |      |   |                    |        |  
|Financing activities:                                                                     |  |                             |          |   |                            |         |   |                               |        |   |                               |        |   |                    |   |                    |   |              |   |                     |      |   |                     |      |   |                    |        |  
|Prepayments on long-term debt                                                             |  |                             | (1,531   | ) |                            |        |   |                               |       |   |                               |       |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |  
|Scheduled payments on long-term debt                                                      |  |                             | (2,003   | ) |                            | (545    | ) |                               |       |   |                               |       |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |  
|Proceeds from incurrence of mortgage loan, net of financing costs                         |  |                             | (41      | ) |                            |        |   |                               | (94    | ) |                               |       |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |  
|Loans to/from subsidiaries                                                                |  |                             | (211,456 | ) |                            |        |   |                               |       |   |                               |       |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |  
|Repurchase of limited partnership units                                                   |  |                             | (507     | ) |                            |        |   |                               |       |   |                               |       |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |  
|Other                                                                                     |  |                             | 26       |   |                            |        |   |                               |       |   |                               |       |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |  
|                                                                                          |  |                             |          |   |                            |         |   |                               |        |   |                               |        |   |                    |   |                    |   |              |   |                     |      |   |                     |      |   |                    |        |  
|Net cash provided by (used in) financing activities                                       |  |                             | (215,512 | ) |                            | (545    | ) |                               | (94    | ) |                               |       |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |  
|                                                                                          |  |                             |          |   |                            |         |   |                               |        |   |                               |        |   |                    |   |                    |   |              |   |                     |      |   |                     |      |   |                    |        |  
|Net (decrease) increase in cash and cash equivalents                                      |  |                             | (16,253  | ) |                            |        |   |                               |       |   |                               |       |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |  
|Cash and cash equivalents, beginning of period                                            |  |                             | 41,224   |   |                            |        |   |                               |       |   |                               |       |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |  
|                                                                                          |  |                             |          |   |                            |         |   |                               |        |   |                               |        |   |                    |   |                    |   |              |   |                     |      |   |                     |      |   |                    |        |  
|Cash and cash equivalents, end of period                                                  |  | $                           | 24,971   |   |                            |        |   |                               |       |   |                               |       |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |  
|                                                                                          |  |                             |          |   |                            |         |   |                               |        |   |                               |        |   |                    |   |                    |   |              |   |                     |      |   |                     |      |   |                    |        |  





30



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Cash Flows

Three Months Ended March 31, 2005

(Dollars in thousands)



|                                                                                          |  |                     |   |  |                     |   |  |                     |   |  |                     |   |  |                     |   |  |                     |  |                     |  |                     |   |  |                     |   |  |                      |  
|----------------------------------------------------------------------------------------- |  | ------------------- | - |  | ------------------- | - |  | ------------------- | - |  | ------------------- | - |  | ------------------- | - |  | ------------------- |  | ------------------- |  | ------------------- | - |  | ------------------- | - |  | -------------------- | -
|                                                                                          |  | MeriStar Sub 1C,LLC |   |  | MeriStar Sub 8E,LLC |   |  | MeriStar Sub 7F,LLC |   |  | MeriStar Sub 5L,LLC |   |  | MeriStar Sub 3C,LLC |   |  | MeriStar Sub 5R,LLC |  | MeriStar Sub 8A,LLC |  | MeriStar Sub 6D,LLC |   |  | MeriStar Sub 6E,LLC |   |  | MeriStar Sub 4E,L.P. |  
|Operating activities:                                                                     |  |                     |   |  |                     |   |  |                     |   |  |                     |   |  |                     |   |  |                     |  |                     |  |                     |   |  |                     |   |  |                      |  
|Net income (loss)                                                                         |  | (149                | ) |  | 216                 |   |  | 76                  |   |  | 219                 |   |  | 491                 |   |  |                    |  |                    |  | 450                 |   |  | 826                 |   |  |                     |  
|Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |                     |   |  |                     |   |  |                     |   |  |                     |   |  |                     |   |  |                     |  |                     |  |                     |   |  |                     |   |  |                      |  
|Depreciation and amortization                                                             |  | 353                 |   |  | 136                 |   |  | 134                 |   |  | 40                  |   |  | 156                 |   |  |                    |  |                    |  | 106                 |   |  | 380                 |   |  |                     |  
|Loss on early extinguishments of debt                                                     |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |   |  |                    |   |  |                     |  
|Minority interests                                                                        |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |   |  |                    |   |  |                     |  
|Equity in loss (income) of unconsolidated affiliates                                      |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |   |  |                    |   |  |                     |  
|Amortization of unearned stock-based compensation                                         |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |   |  |                    |   |  |                     |  
|Changes in operating assets and liabilities:                                              |  |                     |   |  |                     |   |  |                     |   |  |                     |   |  |                     |   |  |                     |  |                     |  |                     |   |  |                     |   |  |                      |  
|Accounts receivable                                                                       |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  | 12                  |   |  | (3                  | ) |  | 64                   |  
|Prepaid expenses and other assets                                                         |  | 38                  |   |  | 4                   |   |  | 2                   |   |  | 12                  |   |  | 6                   |   |  |                    |  |                    |  | 3                   |   |  | (787                | ) |  |                     |  
|Receivables from unconsolidated affiliates                                                |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |   |  |                    |   |  |                     |  
|Due from/to Interstate Hotels & Resorts                                                   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |   |  |                    |   |  |                     |  
|Accounts payable, accrued expenses, accrued interest and other liabilities                |  | 45                  |   |  | (32                 | ) |  | 31                  |   |  | 22                  |   |  | 99                  |   |  |                    |  |                    |  | (39                 | ) |  | 141                 |   |  | (5                   | )
|Due from/to subsidiaries                                                                  |  | (133                | ) |  | (278                | ) |  | (525                | ) |  | (104                | ) |  | (722                | ) |  |                    |  |                    |  | (472                | ) |  | (32,578             | ) |  | (59                  | )
|                                                                                          |  |                     |   |  |                     |   |  |                     |   |  |                     |   |  |                     |   |  |                     |  |                     |  |                     |   |  |                     |   |  |                      |  
|Net cash provided by (used in) operating activities                                       |  | 154                 |   |  | 46                  |   |  | (282                | ) |  | 189                 |   |  | 30                  |   |  |                    |  |                    |  | 60                  |   |  | (32,021             | ) |  |                     |  
|                                                                                          |  |                     |   |  |                     |   |  |                     |   |  |                     |   |  |                     |   |  |                     |  |                     |  |                     |   |  |                     |   |  |                      |  
|Investing activities:                                                                     |  |                     |   |  |                     |   |  |                     |   |  |                     |   |  |                     |   |  |                     |  |                     |  |                     |   |  |                     |   |  |                      |  
|Capital expenditures for property and equipment                                           |  | (154                | ) |  | (46                 | ) |  | 282                 |   |  | (189                | ) |  | (30                 | ) |  |                    |  |                    |  | (60                 | ) |  | (1,828              | ) |  |                     |  
|Proceeds from sales of assets                                                             |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |   |  |                    |   |  |                     |  
|(Increase) decrease in restricted cash                                                    |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |   |  | (3,000              | ) |  |                     |  
|                                                                                          |  |                     |   |  |                     |   |  |                     |   |  |                     |   |  |                     |   |  |                     |  |                     |  |                     |   |  |                     |   |  |                      |  
|Net cash (used in) provided by investing activities                                       |  | (154                | ) |  | (46                 | ) |  | 282                 |   |  | (189                | ) |  | (30                 | ) |  |                    |  |                    |  | (60                 | ) |  | (4,828              | ) |  |                     |  
|                                                                                          |  |                     |   |  |                     |   |  |                     |   |  |                     |   |  |                     |   |  |                     |  |                     |  |                     |   |  |                     |   |  |                      |  
|Financing activities:                                                                     |  |                     |   |  |                     |   |  |                     |   |  |                     |   |  |                     |   |  |                     |  |                     |  |                     |   |  |                     |   |  |                      |  
|Prepayments on long-term debt                                                             |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |   |  |                    |   |  |                     |  
|Scheduled payments on long-term debt                                                      |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |   |  |                    |   |  |                     |  
|Proceeds from incurrence of mortgage loan, net of financing costs                         |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |   |  | 36,849              |   |  |                     |  
|Loans to/from subsidiaries                                                                |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |   |  |                    |   |  |                     |  
|Repurchase of limited partnership units                                                   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |   |  |                    |   |  |                     |  
|Other                                                                                     |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |   |  |                    |   |  |                     |  
|                                                                                          |  |                     |   |  |                     |   |  |                     |   |  |                     |   |  |                     |   |  |                     |  |                     |  |                     |   |  |                     |   |  |                      |  
|Net cash provided by (used in) financing activities                                       |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |   |  | 36,849              |   |  |                     |  
|                                                                                          |  |                     |   |  |                     |   |  |                     |   |  |                     |   |  |                     |   |  |                     |  |                     |  |                     |   |  |                     |   |  |                      |  
|Net (decrease) increase in cash and cash equivalents                                      |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |   |  |                    |   |  |                     |  
|Cash and cash equivalents, beginning of period                                            |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |   |  |                    |   |  |                     |  
|                                                                                          |  |                     |   |  |                     |   |  |                     |   |  |                     |   |  |                     |   |  |                     |  |                     |  |                     |   |  |                     |   |  |                      |  
|Cash and cash equivalents, end of period                                                  |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |   |  |                    |   |  |                     |  
|                                                                                          |  |                     |   |  |                     |   |  |                     |   |  |                     |   |  |                     |   |  |                     |  |                     |  |                     |   |  |                     |   |  |                      |  



31



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Cash Flows

Three Months Ended March 31, 2005

(Dollars in thousands)



|                                                                                          |  |                    |   |  |                     |   |  |                    |   |  |                    |  |                     |  |                     |  |                    |   |  |                    |   |  |                    |   |  |                           
|----------------------------------------------------------------------------------------- |  | ------------------ | - |  | ------------------- | - |  | ------------------ | - |  | ------------------ |  | ------------------- |  | ------------------- |  | ------------------ | - |  | ------------------ | - |  | ------------------ | - |  | --------------------------
|                                                                                          |  | MeriStarSub 1B,LLC |   |  | MeriStarSub 5F,L.P. |   |  | MeriStarSub 6G,LLC |   |  | MeriStarSub 8C,LLC |  | MeriStarSub 4C,L.P. |  | MeriStarSub 4H,L.P. |  | MeriStarSub 7E,LLC |   |  | MeriStarSub 3D,LLC |   |  | MeriStarSub 1A,LLC |   |  | MeriStarSub 7AJointVenture
|Operating activities:                                                                     |  |                    |   |  |                     |   |  |                    |   |  |                    |  |                     |  |                     |  |                    |   |  |                    |   |  |                    |   |  |                           
|Net income (loss)                                                                         |  | 351                |   |  | 667                 |   |  | 711                |   |  |                   |  |                    |  |                    |  | 141                |   |  | 220                |   |  | 230                |   |  |                          
|Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |                    |   |  |                     |   |  |                    |   |  |                    |  |                     |  |                     |  |                    |   |  |                    |   |  |                    |   |  |                           
|Depreciation and amortization                                                             |  | 126                |   |  | 154                 |   |  | 167                |   |  |                   |  |                    |  |                    |  | 165                |   |  | 162                |   |  | 73                 |   |  |                          
|Loss on early extinguishments of debt                                                     |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                    |  |                    |  |                   |   |  |                   |   |  |                   |   |  |                          
|Minority interests                                                                        |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                    |  |                    |  |                   |   |  |                   |   |  |                   |   |  |                          
|Equity in loss (income) of unconsolidated affiliates                                      |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                    |  |                    |  |                   |   |  |                   |   |  |                   |   |  |                          
|Amortization of unearned stock-based compensation                                         |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                    |  |                    |  |                   |   |  |                   |   |  |                   |   |  |                          
|Changes in operating assets and liabilities:                                              |  |                    |   |  |                     |   |  |                    |   |  |                    |  |                     |  |                     |  |                    |   |  |                    |   |  |                    |   |  |                           
|Accounts receivable                                                                       |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                    |  |                    |  |                   |   |  |                   |   |  |                   |   |  |                          
|Prepaid expenses and other assets                                                         |  | 12                 |   |  | 27                  |   |  | 5                  |   |  |                   |  |                    |  |                    |  | 3                  |   |  | 7                  |   |  | 23                 |   |  |                          
|Receivables from unconsolidated affiliates                                                |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                    |  |                    |  |                   |   |  |                   |   |  |                   |   |  |                          
|Due from/to Interstate Hotels & Resorts                                                   |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                    |  |                    |  |                   |   |  |                   |   |  |                   |   |  |                          
|Accounts payable, accrued expenses, accrued interest and other liabilities                |  | 37                 |   |  | 65                  |   |  | (56                | ) |  |                   |  |                    |  |                    |  | (10                | ) |  | 30                 |   |  | 21                 |   |  |                          
|Due from/to subsidiaries                                                                  |  | 97                 |   |  | 3,651               |   |  | (600               | ) |  |                   |  |                    |  |                    |  | (169               | ) |  | 31                 |   |  | (325               | ) |  |                          
|                                                                                          |  |                    |   |  |                     |   |  |                    |   |  |                    |  |                     |  |                     |  |                    |   |  |                    |   |  |                    |   |  |                           
|Net cash provided by (used in) operating activities                                       |  | 623                |   |  | 4,564               |   |  | 227                |   |  |                   |  |                    |  |                    |  | 130                |   |  | 450                |   |  | 22                 |   |  |                          
|                                                                                          |  |                    |   |  |                     |   |  |                    |   |  |                    |  |                     |  |                     |  |                    |   |  |                    |   |  |                    |   |  |                           
|Investing activities:                                                                     |  |                    |   |  |                     |   |  |                    |   |  |                    |  |                     |  |                     |  |                    |   |  |                    |   |  |                    |   |  |                           
|Capital expenditures for property and equipment                                           |  | (618               | ) |  | (4,564              | ) |  | (227               | ) |  |                   |  |                    |  |                    |  | (130               | ) |  | (450               | ) |  | (22                | ) |  |                          
|Proceeds from sales of assets                                                             |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                    |  |                    |  |                   |   |  |                   |   |  |                   |   |  |                          
|(Increase) decrease in restricted cash                                                    |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                    |  |                    |  |                   |   |  |                   |   |  |                   |   |  |                          
|                                                                                          |  |                    |   |  |                     |   |  |                    |   |  |                    |  |                     |  |                     |  |                    |   |  |                    |   |  |                    |   |  |                           
|Net cash (used in) provided by investing activities                                       |  | (618               | ) |  | (4,564              | ) |  | (227               | ) |  |                   |  |                    |  |                    |  | (130               | ) |  | (450               | ) |  | (22                | ) |  |                          
|                                                                                          |  |                    |   |  |                     |   |  |                    |   |  |                    |  |                     |  |                     |  |                    |   |  |                    |   |  |                    |   |  |                           
|Financing activities:                                                                     |  |                    |   |  |                     |   |  |                    |   |  |                    |  |                     |  |                     |  |                    |   |  |                    |   |  |                    |   |  |                           
|Prepayments on long-term debt                                                             |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                    |  |                    |  |                   |   |  |                   |   |  |                   |   |  |                          
|Scheduled payments on long-term debt                                                      |  | (5                 | ) |  |                    |   |  |                   |   |  |                   |  |                    |  |                    |  |                   |   |  |                   |   |  |                   |   |  |                          
|Proceeds from incurrence of mortgage loan, net of financing costs                         |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                    |  |                    |  |                   |   |  |                   |   |  |                   |   |  |                          
|Loans to/from subsidiaries                                                                |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                    |  |                    |  |                   |   |  |                   |   |  |                   |   |  |                          
|Repurchase of limited partnership units                                                   |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                    |  |                    |  |                   |   |  |                   |   |  |                   |   |  |                          
|Other                                                                                     |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                    |  |                    |  |                   |   |  |                   |   |  |                   |   |  |                          
|                                                                                          |  |                    |   |  |                     |   |  |                    |   |  |                    |  |                     |  |                     |  |                    |   |  |                    |   |  |                    |   |  |                           
|Net cash provided by (used in) financing activities                                       |  | (5                 | ) |  |                    |   |  |                   |   |  |                   |  |                    |  |                    |  |                   |   |  |                   |   |  |                   |   |  |                          
|                                                                                          |  |                    |   |  |                     |   |  |                    |   |  |                    |  |                     |  |                     |  |                    |   |  |                    |   |  |                    |   |  |                           
|Net (decrease) increase in cash and cash equivalents                                      |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                    |  |                    |  |                   |   |  |                   |   |  |                   |   |  |                          
|Cash and cash equivalents, beginning of period                                            |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                    |  |                    |  |                   |   |  |                   |   |  |                   |   |  |                          
|                                                                                          |  |                    |   |  |                     |   |  |                    |   |  |                    |  |                     |  |                     |  |                    |   |  |                    |   |  |                    |   |  |                           
|Cash and cash equivalents, end of period                                                  |  |                   |   |  |                    |   |  |                   |   |  |                   |  |                    |  |                    |  |                   |   |  |                   |   |  |                   |   |  |                          
|                                                                                          |  |                    |   |  |                     |   |  |                    |   |  |                    |  |                     |  |                     |  |                    |   |  |                    |   |  |                    |   |  |                           





32



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Cash Flows

Three Months Ended March 31, 2005

(Dollars in thousands)



|                                                                                          |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |   |  |                    |  |                    |   |  |                    |  
|----------------------------------------------------------------------------------------- |  | ------------------ |  | ------------------ |  | ----------------- |  | ------------------ |  | ------------------ |  | ------------------ |  | --------------------- | - |  | ------------------ |  | ------------------ | - |  | ------------------ | -
|                                                                                          |  | MeriStarSub 2B,LLC |  | MeriStarSub 3A,LLC |  | MeriStarSub 4A,LP |  | MeriStarSub 4D,LLC |  | MeriStarSub 2A,LLC |  | MeriStarSub 6L,LLC |  | MDVLimitedPartnership |   |  | MeriStarSub 5C,LLC |  | MeriStarSub 6J,LLC |   |  | MeriStarSub 1D,LLC |  
|Operating activities:                                                                     |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |   |  |                    |  |                    |   |  |                    |  
|Net income (loss)                                                                         |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  | 54                    |   |  |                   |  | 553                |   |  | 578                |  
|Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |   |  |                    |  |                    |   |  |                    |  
|Depreciation and amortization                                                             |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  | 49                    |   |  |                   |  | 139                |   |  | 584                |  
|Loss on early extinguishments of debt                                                     |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |   |  |                   |  |                   |   |  |                   |  
|Minority interests                                                                        |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |   |  |                   |  |                   |   |  |                   |  
|Equity in loss (income) of unconsolidated affiliates                                      |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |   |  |                   |  |                   |   |  |                   |  
|Amortization of unearned stock-based compensation                                         |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |   |  |                   |  |                   |   |  |                   |  
|Changes in operating assets and liabilities:                                              |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |   |  |                    |  |                    |   |  |                    |  
|Accounts receivable                                                                       |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |   |  |                   |  |                   |   |  |                   |  
|Prepaid expenses and other assets                                                         |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  | 5                     |   |  |                   |  | 7                  |   |  | 79                 |  
|Receivables from unconsolidated affiliates                                                |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |   |  |                   |  |                   |   |  |                   |  
|Due from/to Interstate Hotels & Resorts                                                   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |   |  |                   |  |                   |   |  |                   |  
|Accounts payable, accrued expenses, accrued interest and other liabilities                |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  | (35                   | ) |  |                   |  | (38                | ) |  | 246                |  
|Due from/to subsidiaries                                                                  |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  | (47                   | ) |  |                   |  | (524               | ) |  | (574               | )
|                                                                                          |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |   |  |                    |  |                    |   |  |                    |  
|Net cash provided by (used in) operating activities                                       |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  | 26                    |   |  |                   |  | 137                |   |  | 913                |  
|                                                                                          |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |   |  |                    |  |                    |   |  |                    |  
|Investing activities:                                                                     |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |   |  |                    |  |                    |   |  |                    |  
|Capital expenditures for property and equipment                                           |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  | (26                   | ) |  |                   |  | (137               | ) |  | (913               | )
|Proceeds from sales of assets                                                             |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |   |  |                   |  |                   |   |  |                   |  
|(Increase) decrease in restricted cash                                                    |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |   |  |                   |  |                   |   |  |                   |  
|                                                                                          |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |   |  |                    |  |                    |   |  |                    |  
|Net cash (used in) provided by investing activities                                       |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  | (26                   | ) |  |                   |  | (137               | ) |  | (913               | )
|                                                                                          |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |   |  |                    |  |                    |   |  |                    |  
|Financing activities:                                                                     |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |   |  |                    |  |                    |   |  |                    |  
|Prepayments on long-term debt                                                             |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |   |  |                   |  |                   |   |  |                   |  
|Scheduled payments on long-term debt                                                      |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |   |  |                   |  |                   |   |  |                   |  
|Proceeds from incurrence of mortgage loan, net of financing costs                         |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |   |  |                   |  |                   |   |  |                   |  
|Loans to/from subsidiaries                                                                |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |   |  |                   |  |                   |   |  |                   |  
|Repurchase of limited partnership units                                                   |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |   |  |                   |  |                   |   |  |                   |  
|Other                                                                                     |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |   |  |                   |  |                   |   |  |                   |  
|                                                                                          |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |   |  |                    |  |                    |   |  |                    |  
|Net cash provided by (used in) financing activities                                       |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |   |  |                   |  |                   |   |  |                   |  
|                                                                                          |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |   |  |                    |  |                    |   |  |                    |  
|Net (decrease) increase in cash and cash equivalents                                      |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |   |  |                   |  |                   |   |  |                   |  
|Cash and cash equivalents, beginning of period                                            |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |   |  |                   |  |                   |   |  |                   |  
|                                                                                          |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |   |  |                    |  |                    |   |  |                    |  
|Cash and cash equivalents, end of period                                                  |  |                   |  |                   |  |                  |  |                   |  |                   |  |                   |  |                      |   |  |                   |  |                   |   |  |                   |  
|                                                                                          |  |                    |  |                    |  |                   |  |                    |  |                    |  |                    |  |                       |   |  |                    |  |                    |   |  |                    |  





33



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Cash Flows

Three Months Ended March 31, 2005

(Dollars in thousands)



|                                                                                          |  |                     |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                   
|----------------------------------------------------------------------------------------- |  | ------------------- |  | ------------------ | - |  | ------------------ |  | ------------------ | - |  | ------------------- |  | ------------------ | - |  | ------------------ |  | ------------------ |  | ------------- |  | ------------------
|                                                                                          |  | MeriStarSub 7B,L.P. |  | MeriStarSub 7D,LLC |   |  | MeriStarSub 7G,LLC |  | MeriStarSub 6B,LLC |   |  | MeriStarSub 4I,L.P. |  | MeriStarSub 5D,LLC |   |  | MeriStarSub 5H,LLC |  | MeriStarSub 7H,LLC |  | AGHPSS I,Inc. |  | MeriStarSub 2D,LLC
|Operating activities:                                                                     |  |                     |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                   
|Net income (loss)                                                                         |  |                    |  | 880                |   |  |                   |  | 117                |   |  |                    |  | (397               | ) |  |                   |  |                   |  |              |  |                  
|Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |                     |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                   
|Depreciation and amortization                                                             |  |                    |  | 358                |   |  |                   |  | 113                |   |  |                    |  | 343                |   |  |                   |  |                   |  |              |  |                  
|Loss on early extinguishments of debt                                                     |  |                    |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|Minority interests                                                                        |  |                    |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|Equity in loss (income) of unconsolidated affiliates                                      |  |                    |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|Amortization of unearned stock-based compensation                                         |  |                    |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|Changes in operating assets and liabilities:                                              |  |                     |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                   
|Accounts receivable                                                                       |  |                    |  | (300               | ) |  |                   |  | (22                | ) |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|Prepaid expenses and other assets                                                         |  |                    |  | 36                 |   |  |                   |  | 2                  |   |  |                    |  | 14                 |   |  |                   |  |                   |  |              |  |                  
|Receivables from unconsolidated affiliates                                                |  |                    |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|Due from/to Interstate Hotels & Resorts                                                   |  |                    |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|Accounts payable, accrued expenses, accrued interest and other liabilities                |  |                    |  | (500               | ) |  |                   |  | 58                 |   |  |                    |  | 69                 |   |  |                   |  |                   |  |              |  |                  
|Due from/to subsidiaries                                                                  |  |                    |  | (259               | ) |  |                   |  | (169               | ) |  |                    |  | (1                 | ) |  |                   |  |                   |  |              |  |                  
|                                                                                          |  |                     |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                   
|Net cash provided by (used in) operating activities                                       |  |                    |  | 215                |   |  |                   |  | 99                 |   |  |                    |  | 28                 |   |  |                   |  |                   |  |              |  |                  
|                                                                                          |  |                     |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                   
|Investing activities:                                                                     |  |                     |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                   
|Capital expenditures for property and equipment                                           |  |                    |  | (215               | ) |  |                   |  | (99                | ) |  |                    |  | (28                | ) |  |                   |  |                   |  |              |  |                  
|Proceeds from sales of assets                                                             |  |                    |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|(Increase) decrease in restricted cash                                                    |  |                    |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|                                                                                          |  |                     |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                   
|Net cash (used in) provided by investing activities                                       |  |                    |  | (215               | ) |  |                   |  | (99                | ) |  |                    |  | (28                | ) |  |                   |  |                   |  |              |  |                  
|                                                                                          |  |                     |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                   
|Financing activities:                                                                     |  |                     |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                   
|Prepayments on long-term debt                                                             |  |                    |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|Scheduled payments on long-term debt                                                      |  |                    |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|Proceeds from incurrence of mortgage loan, net of financing costs                         |  |                    |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|Loans to/from subsidiaries                                                                |  |                    |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|Repurchase of limited partnership units                                                   |  |                    |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|Other                                                                                     |  |                    |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|                                                                                          |  |                     |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                   
|Net cash provided by (used in) financing activities                                       |  |                    |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|                                                                                          |  |                     |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                   
|Net (decrease) increase in cash and cash equivalents                                      |  |                    |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|Cash and cash equivalents, beginning of period                                            |  |                    |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|                                                                                          |  |                     |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                   
|Cash and cash equivalents, end of period                                                  |  |                    |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |   |  |                   |  |                   |  |              |  |                  
|                                                                                          |  |                     |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |   |  |                    |  |                    |  |               |  |                   





34



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Cash Flows

Three Months Ended March 31, 2005

(Dollars in thousands)



|                                                                                          |  |                     |   |  |                    |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |  |                     |  |                    |  |                     |  
|----------------------------------------------------------------------------------------- |  | ------------------- | - |  | ------------------ |  | ------------------ | - |  | ------------------ |  | ------------------ | - |  | ------------------- |  | ------------------ |  | ------------------- |  | ------------------ |  | ------------------- | -
|                                                                                          |  | MeriStarSub 4F,L.P. |   |  | MeriStarSub 5K,LLC |  | MeriStarSub 5M,LLC |   |  | MeriStarSub 1E,LLC |  | MeriStarSub 5O,LLC |   |  | MeriStarSub 4B,L.P. |  | MeriStarSub 2C,LLC |  | MeriStarSub 4G,L.P. |  | MeriStarSub 3B,LLC |  | MeriStarSub 5G,L.P. |  
|Operating activities:                                                                     |  |                     |   |  |                    |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |  |                     |  |                    |  |                     |  
|Net income (loss)                                                                         |  | 131                 |   |  |                   |  | 319                |   |  |                   |  | (35                | ) |  |                    |  |                   |  |                    |  |                   |  | 2,103               |  
|Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |                     |   |  |                    |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |  |                     |  |                    |  |                     |  
|Depreciation and amortization                                                             |  | 283                 |   |  |                   |  | 67                 |   |  |                   |  | 35                 |   |  |                    |  |                   |  |                    |  |                   |  | 1,551               |  
|Loss on early extinguishments of debt                                                     |  |                    |   |  |                   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  
|Minority interests                                                                        |  |                    |   |  |                   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  
|Equity in loss (income) of unconsolidated affiliates                                      |  |                    |   |  |                   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  
|Amortization of unearned stock-based compensation                                         |  |                    |   |  |                   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  
|Changes in operating assets and liabilities:                                              |  |                     |   |  |                    |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |  |                     |  |                    |  |                     |  
|Accounts receivable                                                                       |  |                    |   |  |                   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  
|Prepaid expenses and other assets                                                         |  | 6                   |   |  |                   |  | 17                 |   |  |                   |  | 6                  |   |  |                    |  |                   |  |                    |  |                   |  | 96                  |  
|Receivables from unconsolidated affiliates                                                |  |                    |   |  |                   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  
|Due from/to Interstate Hotels & Resorts                                                   |  |                    |   |  |                   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  
|Accounts payable, accrued expenses, accrued interest and other liabilities                |  | (250                | ) |  |                   |  | 51                 |   |  |                   |  | 19                 |   |  |                    |  |                   |  |                    |  |                   |  | 289                 |  
|Due from/to subsidiaries                                                                  |  | 429                 |   |  |                   |  | 291                |   |  |                   |  | 554                |   |  |                    |  |                   |  |                    |  |                   |  | (1,548              | )
|                                                                                          |  |                     |   |  |                    |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |  |                     |  |                    |  |                     |  
|Net cash provided by (used in) operating activities                                       |  | 599                 |   |  |                   |  | 745                |   |  |                   |  | 579                |   |  |                    |  |                   |  |                    |  |                   |  | 2,491               |  
|                                                                                          |  |                     |   |  |                    |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |  |                     |  |                    |  |                     |  
|Investing activities:                                                                     |  |                     |   |  |                    |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |  |                     |  |                    |  |                     |  
|Capital expenditures for property and equipment                                           |  | (599                | ) |  |                   |  | (745               | ) |  |                   |  | (579               | ) |  |                    |  |                   |  |                    |  |                   |  | (2,491              | )
|Proceeds from sales of assets                                                             |  |                    |   |  |                   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  
|(Increase) decrease in restricted cash                                                    |  |                    |   |  |                   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  
|                                                                                          |  |                     |   |  |                    |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |  |                     |  |                    |  |                     |  
|Net cash (used in) provided by investing activities                                       |  | (599                | ) |  |                   |  | (745               | ) |  |                   |  | (579               | ) |  |                    |  |                   |  |                    |  |                   |  | (2,491              | )
|                                                                                          |  |                     |   |  |                    |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |  |                     |  |                    |  |                     |  
|Financing activities:                                                                     |  |                     |   |  |                    |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |  |                     |  |                    |  |                     |  
|Prepayments on long-term debt                                                             |  |                    |   |  |                   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  
|Scheduled payments on long-term debt                                                      |  |                    |   |  |                   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  
|Proceeds from incurrence of mortgage loan, net of financing costs                         |  |                    |   |  |                   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  
|Loans to/from subsidiaries                                                                |  |                    |   |  |                   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  
|Repurchase of limited partnership units                                                   |  |                    |   |  |                   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  
|Other                                                                                     |  |                    |   |  |                   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  
|                                                                                          |  |                     |   |  |                    |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |  |                     |  |                    |  |                     |  
|Net cash provided by (used in) financing activities                                       |  |                    |   |  |                   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  
|                                                                                          |  |                     |   |  |                    |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |  |                     |  |                    |  |                     |  
|Net (decrease) increase in cash and cash equivalents                                      |  |                    |   |  |                   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  
|Cash and cash equivalents, beginning of period                                            |  |                    |   |  |                   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  
|                                                                                          |  |                     |   |  |                    |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |  |                     |  |                    |  |                     |  
|Cash and cash equivalents, end of period                                                  |  |                    |   |  |                   |  |                   |   |  |                   |  |                   |   |  |                    |  |                   |  |                    |  |                   |  |                    |  
|                                                                                          |  |                     |   |  |                    |  |                    |   |  |                    |  |                    |   |  |                     |  |                    |  |                     |  |                    |  |                     |  



35



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Cash Flows

Three Months Ended March 31, 2005

(Dollars in thousands)



|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                          |   |  |                    |  |                   
|----------------------------------------------------------------------------------------- |  | ------------------ | - |  | ------------------ | - |  | ------------------ | - |  | ------------------ | - |  | ------------------ | - |  | ------------------ | - |  | ------------------ | - |  | ------------------------ | - |  | ------------------ |  | ------------------
|                                                                                          |  | MeriStarSub 5N,LLC |   |  | MeriStarSub 5P,LLC |   |  | MeriStarSub 5J,LLC |   |  | MeriStarSub 5Q,LLC |   |  | MeriStarSub 5A,LLC |   |  | MeriStarSub 8D,LLC |   |  | MeriStarSub 4J,LLC |   |  | MeriStarPentagonCity,LLC |   |  | MeriStarSub 6K,LLC |  | MeriStarSub 5E,LLC
|Operating activities:                                                                     |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                          |   |  |                    |  |                   
|Net income (loss)                                                                         |  | (19                | ) |  | 83                 |   |  | (592               | ) |  | 311                |   |  | 524                |   |  |                   |   |  | 96                 |   |  | 174                      |   |  |                   |  |                  
|Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                          |   |  |                    |  |                   
|Depreciation and amortization                                                             |  | 19                 |   |  | 1                  |   |  | 911                |   |  | 123                |   |  | 270                |   |  |                   |   |  | 318                |   |  | 1,323                    |   |  |                   |  |                  
|Loss on early extinguishments of debt                                                     |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                         |   |  |                   |  |                  
|Minority interests                                                                        |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                         |   |  |                   |  |                  
|Equity in loss (income) of unconsolidated affiliates                                      |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                         |   |  |                   |  |                  
|Amortization of unearned stock-based compensation                                         |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                         |   |  |                   |  |                  
|Changes in operating assets and liabilities:                                              |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                          |   |  |                    |  |                   
|Accounts receivable                                                                       |  |                   |   |  |                   |   |  | (2                 | ) |  |                   |   |  |                   |   |  | 359                |   |  |                   |   |  | 547                      |   |  |                   |  |                  
|Prepaid expenses and other assets                                                         |  | 7                  |   |  | 1                  |   |  | 122                |   |  | 19                 |   |  | 12                 |   |  |                   |   |  | 7                  |   |  | 43                       |   |  |                   |  |                  
|Receivables from unconsolidated affiliates                                                |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                         |   |  |                   |  |                  
|Due from/to Interstate Hotels & Resorts                                                   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                         |   |  |                   |  |                  
|Accounts payable, accrued expenses, accrued interest and other liabilities                |  | 18                 |   |  |                   |   |  | 236                |   |  | 30                 |   |  | 169                |   |  |                   |   |  | (55                | ) |  | 271                      |   |  |                   |  |                  
|Due from/to subsidiaries                                                                  |  | 293                |   |  | (85                | ) |  | 3,362              |   |  | 668                |   |  | (505               | ) |  | (359               | ) |  | 409                |   |  | (1,885                   | ) |  |                   |  |                  
|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                          |   |  |                    |  |                   
|Net cash provided by (used in) operating activities                                       |  | 318                |   |  |                   |   |  | 4,037              |   |  | 1,151              |   |  | 470                |   |  |                   |   |  | 775                |   |  | 473                      |   |  |                   |  |                  
|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                          |   |  |                    |  |                   
|Investing activities:                                                                     |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                          |   |  |                    |  |                   
|Capital expenditures for property and equipment                                           |  | (318               | ) |  |                   |   |  | (4,037             | ) |  | (1,151             | ) |  | (470               | ) |  |                   |   |  | (775               | ) |  | (295                     | ) |  |                   |  |                  
|Proceeds from sales of assets                                                             |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                         |   |  |                   |  |                  
|(Increase) decrease in restricted cash                                                    |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                         |   |  |                   |  |                  
|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                          |   |  |                    |  |                   
|Net cash (used in) provided by investing activities                                       |  | (318               | ) |  |                   |   |  | (4,037             | ) |  | (1,151             | ) |  | (470               | ) |  |                   |   |  | (775               | ) |  | (295                     | ) |  |                   |  |                  
|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                          |   |  |                    |  |                   
|Financing activities:                                                                     |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                          |   |  |                    |  |                   
|Prepayments on long-term debt                                                             |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                         |   |  |                   |  |                  
|Scheduled payments on long-term debt                                                      |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  | (178                     | ) |  |                   |  |                  
|Proceeds from incurrence of mortgage loan, net of financing costs                         |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                         |   |  |                   |  |                  
|Loans to/from subsidiaries                                                                |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                         |   |  |                   |  |                  
|Repurchase of limited partnership units                                                   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                         |   |  |                   |  |                  
|Other                                                                                     |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                         |   |  |                   |  |                  
|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                          |   |  |                    |  |                   
|Net cash provided by (used in) financing activities                                       |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  | (178                     | ) |  |                   |  |                  
|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                          |   |  |                    |  |                   
|Net (decrease) increase in cash and cash equivalents                                      |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                         |   |  |                   |  |                  
|Cash and cash equivalents, beginning of period                                            |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                         |   |  |                   |  |                  
|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                          |   |  |                    |  |                   
|Cash and cash equivalents, end of period                                                  |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                         |   |  |                   |  |                  
|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                          |   |  |                    |  |                   





36



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Cash Flows

Three Months Ended March 31, 2005

(Dollars in thousands)



|                                                                                          |  |                    |  |                    |  |                               |  |                                |  |                    |  |                    |  |                           |   |  |                       |   |  |                            |   |  |                           |   |  |                   |         |  
|----------------------------------------------------------------------------------------- |  | ------------------ |  | ------------------ |  | ----------------------------- |  | ------------------------------ |  | ------------------ |  | ------------------ |  | ------------------------- | - |  | --------------------- | - |  | -------------------------- | - |  | ------------------------- | - |  | ----------------- | ------- | -
|                                                                                          |  | MeriStarSub 6I,LLC |  | MeriStarSub 5I,LLC |  | CapStarCherry HillCompany,LLC |  | MeriStarAcquisitionCompany,LLC |  | MeriStarSub 6A,LLC |  | MeriStarSub 6F,LLC |  | MeriStarHotelLessee, Inc. |   |  | GuarantorEliminations |   |  | GuarantorSubsidiariesTotal |   |  | ConsolidationEliminations |   |  | TotalConsolidated |        
|Operating activities:                                                                     |  |                    |  |                    |  |                               |  |                                |  |                    |  |                    |  |                           |   |  |                       |   |  |                            |   |  |                           |   |  |                   |         |  
|Net income (loss)                                                                         |  |                   |  |                   |  |                              |  |                               |  |                   |  |                   |  | (11,324                   | ) |  | (1,408                | ) |  | (1,872                     | ) |  | (7,822                    | ) |  | $                 | (13,749 | )
|Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |                    |  |                    |  |                               |  |                                |  |                    |  |                    |  |                           |   |  |                       |   |  |                            |   |  |                           |   |  |                   |         |  
|Depreciation and amortization                                                             |  |                   |  |                   |  |                              |  |                               |  |                   |  |                   |  |                          |   |  |                      |   |  | 9,555                      |   |  |                          |   |  |                   | 24,824  |  
|Loss on early extinguishments of debt                                                     |  |                   |  |                   |  |                              |  |                               |  |                   |  |                   |  |                          |   |  |                      |   |  |                           |   |  |                          |   |  |                   | 60      |  
|Minority interests                                                                        |  |                   |  |                   |  |                              |  |                               |  |                   |  |                   |  |                          |   |  |                      |   |  |                           |   |  |                          |   |  |                   | 5       |  
|Equity in loss (income) of unconsolidated affiliates                                      |  |                   |  |                   |  |                              |  |                               |  |                   |  |                   |  |                          |   |  |                      |   |  | 1,370                      |   |  | 7,822                     |   |  |                   | 1,370   |  
|Amortization of unearned stock-based compensation                                         |  |                   |  |                   |  |                              |  |                               |  |                   |  |                   |  |                          |   |  |                      |   |  |                           |   |  |                          |   |  |                   | 277     |  
|Changes in operating assets and liabilities:                                              |  |                    |  |                    |  |                               |  |                                |  |                    |  |                    |  |                           |   |  |                       |   |  |                            |   |  |                           |   |  |                   |         |  
|Accounts receivable                                                                       |  |                   |  |                   |  |                              |  |                               |  |                   |  |                   |  | (8,261                    | ) |  |                      |   |  | (7,669                     | ) |  | 3,270                     |   |  |                   | 7,633   |  
|Prepaid expenses and other assets                                                         |  |                   |  |                   |  |                              |  |                               |  |                   |  |                   |  | (750                      | ) |  | (10                   | ) |  | (981                       | ) |  |                          |   |  |                   | (112    | )
|Receivables from unconsolidated affiliates                                                |  |                   |  |                   |  |                              |  |                               |  |                   |  |                   |  | 1,229                     |   |  | (1,229                | ) |  | (929                       | ) |  |                          |   |  |                   | 13,004  |  
|Due from/to Interstate Hotels & Resorts                                                   |  |                   |  |                   |  |                              |  |                               |  |                   |  |                   |  | (4,215                    | ) |  |                      |   |  | (4,215                     | ) |  |                          |   |  |                   | (3,754  | )
|Accounts payable, accrued expenses, accrued interest and other liabilities                |  |                   |  |                   |  |                              |  |                               |  |                   |  |                   |  | 2,732                     |   |  |                      |   |  | 3,685                      |   |  | (3,270                    | ) |  |                   | (8,024  | )
|Due from/to subsidiaries                                                                  |  |                   |  |                   |  |                              |  |                               |  |                   |  |                   |  | (180,714                  | ) |  | 1,718                 |   |  | (208,820                   | ) |  |                          |   |  |                   |        |  
|                                                                                          |  |                    |  |                    |  |                               |  |                                |  |                    |  |                    |  |                           |   |  |                       |   |  |                            |   |  |                           |   |  |                   |         |  
|Net cash provided by (used in) operating activities                                       |  |                   |  |                   |  |                              |  |                               |  |                   |  |                   |  | (201,303                  | ) |  | (929                  | ) |  | (209,876                   | ) |  |                          |   |  |                   | 21,534  |  
|                                                                                          |  |                    |  |                    |  |                               |  |                                |  |                    |  |                    |  |                           |   |  |                       |   |  |                            |   |  |                           |   |  |                   |         |  
|Investing activities:                                                                     |  |                    |  |                    |  |                               |  |                                |  |                    |  |                    |  |                           |   |  |                       |   |  |                            |   |  |                           |   |  |                   |         |  
|Capital expenditures for property and equipment                                           |  |                   |  |                   |  |                              |  |                               |  |                   |  |                   |  | (1,341                    | ) |  | 929                   |   |  | (26,340                    | ) |  |                          |   |  |                   | (55,642 | )
|Proceeds from sales of assets                                                             |  |                   |  |                   |  |                              |  |                               |  |                   |  |                   |  |                          |   |  |                      |   |  |                           |   |  |                          |   |  |                   |        |  
|(Increase) decrease in restricted cash                                                    |  |                   |  |                   |  |                              |  |                               |  |                   |  |                   |  | 771                       |   |  |                      |   |  | (2,229                     | ) |  |                          |   |  |                   | (4,533  | )
|                                                                                          |  |                    |  |                    |  |                               |  |                                |  |                    |  |                    |  |                           |   |  |                       |   |  |                            |   |  |                           |   |  |                   |         |  
|Net cash (used in) provided by investing activities                                       |  |                   |  |                   |  |                              |  |                               |  |                   |  |                   |  | (570                      | ) |  | 929                   |   |  | (28,569                    | ) |  |                          |   |  |                   | (60,175 | )
|                                                                                          |  |                    |  |                    |  |                               |  |                                |  |                    |  |                    |  |                           |   |  |                       |   |  |                            |   |  |                           |   |  |                   |         |  
|Financing activities:                                                                     |  |                    |  |                    |  |                               |  |                                |  |                    |  |                    |  |                           |   |  |                       |   |  |                            |   |  |                           |   |  |                   |         |  
|Prepayments on long-term debt                                                             |  |                   |  |                   |  |                              |  |                               |  |                   |  |                   |  |                          |   |  |                      |   |  |                           |   |  |                          |   |  |                   | (1,531  | )
|Scheduled payments on long-term debt                                                      |  |                   |  |                   |  |                              |  |                               |  |                   |  |                   |  |                          |   |  |                      |   |  | (183                       | ) |  |                          |   |  |                   | (2,731  | )
|Proceeds from incurrence of mortgage loan, net of financing costs                         |  |                   |  |                   |  |                              |  |                               |  |                   |  |                   |  |                          |   |  |                      |   |  | 36,755                     |   |  |                          |   |  |                   | 36,714  |  
|Loans to/from subsidiaries                                                                |  |                   |  |                   |  |                              |  |                               |  |                   |  |                   |  | 211,456                   |   |  |                      |   |  | 211,456                    |   |  |                          |   |  |                   |        |  
|Repurchase of limited partnership units                                                   |  |                   |  |                   |  |                              |  |                               |  |                   |  |                   |  |                          |   |  |                      |   |  |                           |   |  |                          |   |  |                   | (507    | )
|Other                                                                                     |  |                   |  |                   |  |                              |  |                               |  |                   |  |                   |  |                          |   |  |                      |   |  |                           |   |  |                          |   |  |                   | 26      |  
|                                                                                          |  |                    |  |                    |  |                               |  |                                |  |                    |  |                    |  |                           |   |  |                       |   |  |                            |   |  |                           |   |  |                   |         |  
|Net cash provided by (used in) financing activities                                       |  |                   |  |                   |  |                              |  |                               |  |                   |  |                   |  | 211,456                   |   |  |                      |   |  | 248,028                    |   |  |                          |   |  |                   | 31,971  |  
|                                                                                          |  |                    |  |                    |  |                               |  |                                |  |                    |  |                    |  |                           |   |  |                       |   |  |                            |   |  |                           |   |  |                   |         |  
|Net (decrease) increase in cash and cash equivalents                                      |  |                   |  |                   |  |                              |  |                               |  |                   |  |                   |  | 9,583                     |   |  |                      |   |  | 9,583                      |   |  |                          |   |  |                   | (6,670  | )
|Cash and cash equivalents, beginning of period                                            |  |                   |  |                   |  |                              |  |                               |  |                   |  |                   |  | 19,309                    |   |  |                      |   |  | 19,309                     |   |  |                          |   |  |                   | 60,533  |  
|                                                                                          |  |                    |  |                    |  |                               |  |                                |  |                    |  |                    |  |                           |   |  |                       |   |  |                            |   |  |                           |   |  |                   |         |  
|Cash and cash equivalents, end of period                                                  |  |                   |  |                   |  |                              |  |                               |  |                   |  |                   |  | 28,892                    |   |  |                      |   |  | 28,892                     |   |  |                          |   |  | $                 | 53,863  |  
|                                                                                          |  |                    |  |                    |  |                               |  |                                |  |                    |  |                    |  |                           |   |  |                       |   |  |                            |   |  |                           |   |  |                   |         |  





37



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Cash Flows

Three Months Ended March 31, 2004

(Dollars in thousands)



|                                                                                          |  |                             |          |   |                            |         |   |                    |   |                    |   |              |   |                     |      |   |                     |      |   |                    |        |   |                    |      |   |                    |      |  
|----------------------------------------------------------------------------------------- |  | --------------------------- | -------- | - | -------------------------- | ------- | - | ------------------ | - | ------------------ | - | ------------ | - | ------------------- | ---- | - | ------------------- | ---- | - | ------------------ | ------ | - | ------------------ | ---- | - | ------------------ | ---- | -
|                                                                                          |  | MeriStarHospitalityOP, L.P. |          |   | Non- GuarantorSubsidiaries |         |   | MeriStarSub 7C,LLC |   | MeriStarSub 8G,LLC |   | AGHUPREITLLC |   | MeriStarSub 6H,L.P. |      |   | MeriStarSub 8F,L.P. |      |   | MeriStarSub 8B,LLC |        |   | MeriStarSub 1C,LLC |      |   | MeriStarSub 8E,LLC |     
|Operating activities:                                                                     |  |                             |          |   |                            |         |   |                    |   |                    |   |              |   |                     |      |   |                     |      |   |                    |        |   |                    |      |   |                    |      |  
|Net income (loss)                                                                         |  | $                           | (40,887  | ) |                            | 7,591   |   |                    |  |                    |  |              |  |                     | 121  |   |                     | 314  |   |                    | 963    |   |                    | (144 | ) |                    | 169  |  
|Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |                             |          |   |                            |         |   |                    |   |                    |   |              |   |                     |      |   |                     |      |   |                    |        |   |                    |      |   |                    |      |  
|Depreciation and amortization                                                             |  |                             | 3,377    |   |                            | 13,358  |   |                    |  |                    |  |              |  |                     | 157  |   |                     | 164  |   |                    | 595    |   |                    | 356  |   |                    | 149  |  
|Loss on asset impairments                                                                 |  |                             |         |   |                            | 2,870   |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |   |                    |     |   |                    |     |  
|Loss on sale of assets, before tax effect                                                 |  |                             | (68      | ) |                            | (378    | ) |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |   |                    |     |   |                    |     |  
|Loss on early extinguishments of debt                                                     |  |                             | 5,923    |   |                            |        |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |   |                    |     |   |                    |     |  
|Minority interests                                                                        |  |                             | (4       | ) |                            |        |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |   |                    |     |   |                    |     |  
|Equity in loss of unconsolidated affiliates                                               |  |                             | 6,866    |   |                            |        |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |   |                    |     |   |                    |     |  
|Amortization of unearned stock-based compensation                                         |  |                             | 587      |   |                            |        |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |   |                    |     |   |                    |     |  
|Deferred income taxes                                                                     |  |                             | (358     | ) |                            |        |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |   |                    |     |   |                    |     |  
|Changes in operating assets and liabilities:                                              |  |                             |          |   |                            |         |   |                    |   |                    |   |              |   |                     |      |   |                     |      |   |                    |        |   |                    |      |   |                    |      |  
|Accounts receivable                                                                       |  |                             | 26       |   |                            | 151     |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |   |                    |     |   |                    |     |  
|Prepaid expenses and other assets                                                         |  |                             | 1,187    |   |                            | 1,972   |   |                    |  |                    |  |              |  |                     | 4    |   |                     | 16   |   |                    | 19     |   |                    | 19   |   |                    | 5    |  
|Receivables from unconsolidated affiliates                                                |  |                             | (1,600   | ) |                            |        |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |   |                    |     |   |                    |     |  
|Due from/to Interstate Hotels & Resorts                                                   |  |                             | 5,866    |   |                            |        |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |   |                    |     |   |                    |     |  
|Accounts payable, accrued expenses, accrued interest and other liabilities                |  |                             | (8,972   | ) |                            | (3,129  | ) |                    |  |                    |  |              |  |                     | (139 | ) |                     | (66  | ) |                    | 59     |   |                    | 37   |   |                    | (11  | )
|Due from/to subsidiaries                                                                  |  |                             | 86,165   |   |                            | (36,539 | ) |                    |  |                    |  |              |  |                     | (143 | ) |                     | (428 | ) |                    | 954    |   |                    | (111 | ) |                    | (256 | )
|                                                                                          |  |                             |          |   |                            |         |   |                    |   |                    |   |              |   |                     |      |   |                     |      |   |                    |        |   |                    |      |   |                    |      |  
|Net cash provided by (used in) operating activities                                       |  |                             | 58,108   |   |                            | (14,104 | ) |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    | 2,590  |   |                    | 157  |   |                    | 56   |  
|                                                                                          |  |                             |          |   |                            |         |   |                    |   |                    |   |              |   |                     |      |   |                     |      |   |                    |        |   |                    |      |   |                    |      |  
|Investing activities:                                                                     |  |                             |          |   |                            |         |   |                    |   |                    |   |              |   |                     |      |   |                     |      |   |                    |        |   |                    |      |   |                    |      |  
|Capital expenditures for property and equipment                                           |  |                             | (3,321   | ) |                            | (9,189  | ) |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    | (2,590 | ) |                    | (157 | ) |                    | (56  | )
|Proceeds from sales of assets                                                             |  |                             |         |   |                            | 26,475  |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |   |                    |     |   |                    |     |  
|(Increase) decrease in restricted cash                                                    |  |                             | (1,127   | ) |                            | 282     |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |   |                    |     |   |                    |     |  
|Costs associated with disposition program and other, net                                  |  |                             | 84       |   |                            | (1,157  | ) |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |   |                    |     |   |                    |     |  
|                                                                                          |  |                             |          |   |                            |         |   |                    |   |                    |   |              |   |                     |      |   |                     |      |   |                    |        |   |                    |      |   |                    |      |  
|Net cash (used in) provided by investing activities                                       |  |                             | (4,364   | ) |                            | 16,411  |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    | (2,590 | ) |                    | (157 | ) |                    | (56  | )
|                                                                                          |  |                             |          |   |                            |         |   |                    |   |                    |   |              |   |                     |      |   |                     |      |   |                    |        |   |                    |      |   |                    |      |  
|Financing activities:                                                                     |  |                             |          |   |                            |         |   |                    |   |                    |   |              |   |                     |      |   |                     |      |   |                    |        |   |                    |      |   |                    |      |  
|Prepayments on long-term debt                                                             |  |                             | (75,497  | ) |                            |        |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |   |                    |     |   |                    |     |  
|Scheduled payments on long-term debt                                                      |  |                             |         |   |                            | (2,307  | ) |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |   |                    |     |   |                    |     |  
|Loans to/from subsidiaries                                                                |  |                             | (27,493  | ) |                            |        |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |   |                    |     |   |                    |     |  
|Distributions to minority investors                                                       |  |                             | (141     | ) |                            |        |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |   |                    |     |   |                    |     |  
|Other                                                                                     |  |                             | (77      | ) |                            |        |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |   |                    |     |   |                    |     |  
|                                                                                          |  |                             |          |   |                            |         |   |                    |   |                    |   |              |   |                     |      |   |                     |      |   |                    |        |   |                    |      |   |                    |      |  
|Net cash provided by (used in) financing activities                                       |  |                             | (103,208 | ) |                            | (2,307  | ) |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |   |                    |     |   |                    |     |  
|                                                                                          |  |                             |          |   |                            |         |   |                    |   |                    |   |              |   |                     |      |   |                     |      |   |                    |        |   |                    |      |   |                    |      |  
|Effect of exchange rate changes on cash and cash equivalents                              |  |                             | (150     | ) |                            |        |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |   |                    |     |   |                    |     |  
|                                                                                          |  |                             |          |   |                            |         |   |                    |   |                    |   |              |   |                     |      |   |                     |      |   |                    |        |   |                    |      |   |                    |      |  
|Net decrease in cash and cash equivalents                                                 |  |                             | (49,614  | ) |                            |        |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |   |                    |     |   |                    |     |  
|Cash and cash equivalents, beginning of period                                            |  |                             | 218,646  |   |                            |        |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |   |                    |     |   |                    |     |  
|                                                                                          |  |                             |          |   |                            |         |   |                    |   |                    |   |              |   |                     |      |   |                     |      |   |                    |        |   |                    |      |   |                    |      |  
|Cash and cash equivalents, end of period                                                  |  | $                           | 169,032  |   |                            |        |   |                    |  |                    |  |              |  |                     |     |   |                     |     |   |                    |       |   |                    |     |   |                    |     |  
|                                                                                          |  |                             |          |   |                            |         |   |                    |   |                    |   |              |   |                     |      |   |                     |      |   |                    |        |   |                    |      |   |                    |      |  



38



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Cash Flows

Three Months Ended March 31, 2004

(Dollars in thousands)



|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |  
|----------------------------------------------------------------------------------------- |  | ------------------ | - |  | ------------------ | - |  | ------------------ | - |  | ------------------ |  | ------------------ |  | ------------------ | - |  | ------------------ | - |  | ------------------- | - |  | ------------------ | - |  | ------------------- | -
|                                                                                          |  | MeriStarSub 7F,LLC |   |  | MeriStarSub 5L,LLC |   |  | MeriStarSub 3C,LLC |   |  | MeriStarSub 5R,LLC |  | MeriStarSub 8A,LLC |  | MeriStarSub 6D,LLC |   |  | MeriStarSub 6E,LLC |   |  | MeriStarSub 4E,L.P. |   |  | MeriStarSub 1B,LLC |   |  | MeriStarSub 5F,L.P. |  
|Operating activities:                                                                     |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |  
|Net income (loss)                                                                         |  | 119                |   |  | 299                |   |  | 297                |   |  |                   |  |                   |  | 266                |   |  | 850                |   |  | 165                 |   |  | 429                |   |  | 398                 |  
|Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |  
|Depreciation and amortization                                                             |  | 97                 |   |  | 38                 |   |  | 178                |   |  |                   |  |                   |  | 137                |   |  | 410                |   |  | 76                  |   |  | 128                |   |  | 196                 |  
|Loss on asset impairments                                                                 |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |  
|Loss on sale of assets, before tax effect                                                 |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |  
|Loss on early extinguishments of debt                                                     |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |  
|Minority interests                                                                        |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |  
|Equity in loss of unconsolidated affiliates                                               |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |  
|Amortization of unearned stock-based compensation                                         |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |  
|Deferred income taxes                                                                     |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |  
|Changes in operating assets and liabilities:                                              |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |  
|Accounts receivable                                                                       |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  | (7                 | ) |  |                   |   |  |                    |   |  |                   |   |  |                    |  
|Prepaid expenses and other assets                                                         |  | 3                  |   |  | 17                 |   |  | 5                  |   |  |                   |  |                   |  | 4                  |   |  | 16                 |   |  | 10                  |   |  | 16                 |   |  | 36                  |  
|Receivables from unconsolidated affiliates                                                |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |  
|Due from/to Interstate Hotels & Resorts                                                   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |  
|Accounts payable, accrued expenses, accrued interest and other liabilities                |  | (24                | ) |  | 38                 |   |  | 175                |   |  |                   |  |                   |  | (38                | ) |  | 328                |   |  | (255                | ) |  | (15                | ) |  | (39                 | )
|Due from/to subsidiaries                                                                  |  | (186               | ) |  | (357               | ) |  | (648               | ) |  |                   |  |                   |  | (312               | ) |  | (1,026             | ) |  | 13                  |   |  | (311               | ) |  | (442                | )
|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |  
|Net cash provided by (used in) operating activities                                       |  | 9                  |   |  | 35                 |   |  | 7                  |   |  |                   |  |                   |  | 50                 |   |  | 578                |   |  | 9                   |   |  | 247                |   |  | 149                 |  
|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |  
|Investing activities:                                                                     |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |  
|Capital expenditures for property and equipment                                           |  | (9                 | ) |  | (35                | ) |  | (7                 | ) |  |                   |  |                   |  | (50                | ) |  | (578               | ) |  | (9                  | ) |  | (247               | ) |  | (149                | )
|Proceeds from sales of assets                                                             |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |  
|(Increase) decrease in restricted cash                                                    |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |  
|Costs associated with disposition program and other, net                                  |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |  
|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |  
|Net cash (used in) provided by investing activities                                       |  | (9                 | ) |  | (35                | ) |  | (7                 | ) |  |                   |  |                   |  | (50                | ) |  | (578               | ) |  | (9                  | ) |  | (247               | ) |  | (149                | )
|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |  
|Financing activities:                                                                     |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |  
|Prepayments on long-term debt                                                             |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |  
|Scheduled payments on long-term debt                                                      |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |  
|Loans to/from subsidiaries                                                                |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |  
|Distributions to minority investors                                                       |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |  
|Other                                                                                     |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |  
|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |  
|Net cash provided by (used in) financing activities                                       |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |  
|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |  
|Effect of exchange rate changes on cash and cash equivalents                              |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |  
|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |  
|Net decrease in cash and cash equivalents                                                 |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |  
|Cash and cash equivalents, beginning of period                                            |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |  
|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |  
|Cash and cash equivalents, end of period                                                  |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |  
|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |  





39



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Cash Flows

Three Months Ended March 31, 2004

(Dollars in thousands)



|                                                                                          |  |                    |   |  |                    |   |  |                     |  |                     |   |  |                    |   |  |                    |   |  |                    |   |  |                            |   |  |                    |   |  |                    |  
|----------------------------------------------------------------------------------------- |  | ------------------ | - |  | ------------------ | - |  | ------------------- |  | ------------------- | - |  | ------------------ | - |  | ------------------ | - |  | ------------------ | - |  | -------------------------- | - |  | ------------------ | - |  | ------------------ | -
|                                                                                          |  | MeriStarSub 6G,LLC |   |  | MeriStarSub 8C,LLC |   |  | MeriStarSub 4C,L.P. |  | MeriStarSub 4H,L.P. |   |  | MeriStarSub 7E,LLC |   |  | MeriStarSub 3D,LLC |   |  | MeriStarSub 1A,LLC |   |  | MeriStarSub 7AJointVenture |   |  | MeriStarSub 2B,LLC |   |  | MeriStarSub 3A,LLC |  
|Operating activities:                                                                     |  |                    |   |  |                    |   |  |                     |  |                     |   |  |                    |   |  |                    |   |  |                    |   |  |                            |   |  |                    |   |  |                    |  
|Net income (loss)                                                                         |  | 515                |   |  | (203               | ) |  |                    |  | (403                | ) |  | 142                |   |  | 119                |   |  | (17                | ) |  | (664                       | ) |  |                   |   |  | 89                 |  
|Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |                    |   |  |                    |   |  |                     |  |                     |   |  |                    |   |  |                    |   |  |                    |   |  |                            |   |  |                    |   |  |                    |  
|Depreciation and amortization                                                             |  | 209                |   |  |                   |   |  |                    |  | 43                  |   |  | 152                |   |  | 192                |   |  | 113                |   |  | 61                         |   |  |                   |   |  | 51                 |  
|Loss on asset impairments                                                                 |  |                   |   |  |                   |   |  |                    |  |                    |   |  |                   |   |  |                   |   |  | 184                |   |  | 809                        |   |  |                   |   |  |                   |  
|Loss on sale of assets, before tax effect                                                 |  |                   |   |  | 253                |   |  |                    |  | 365                 |   |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |   |  | (20                | )
|Loss on early extinguishments of debt                                                     |  |                   |   |  |                   |   |  |                    |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |   |  |                   |  
|Minority interests                                                                        |  |                   |   |  |                   |   |  |                    |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |   |  |                   |  
|Equity in loss of unconsolidated affiliates                                               |  |                   |   |  |                   |   |  |                    |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |   |  |                   |  
|Amortization of unearned stock-based compensation                                         |  |                   |   |  |                   |   |  |                    |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |   |  |                   |  
|Deferred income taxes                                                                     |  |                   |   |  |                   |   |  |                    |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |   |  |                   |  
|Changes in operating assets and liabilities:                                              |  |                    |   |  |                    |   |  |                     |  |                     |   |  |                    |   |  |                    |   |  |                    |   |  |                            |   |  |                    |   |  |                    |  
|Accounts receivable                                                                       |  |                   |   |  |                   |   |  |                    |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  | 2,345              |   |  |                   |  
|Prepaid expenses and other assets                                                         |  | 6                  |   |  | 117                |   |  |                    |  | (8                  | ) |  | 4                  |   |  | 8                  |   |  | 26                 |   |  | 7                          |   |  |                   |   |  | 1                  |  
|Receivables from unconsolidated affiliates                                                |  |                   |   |  |                   |   |  |                    |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |   |  |                   |  
|Due from/to Interstate Hotels & Resorts                                                   |  |                   |   |  |                   |   |  |                    |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |   |  |                   |  
|Accounts payable, accrued expenses, accrued interest and other liabilities                |  | 97                 |   |  | 306                |   |  |                    |  | (178                | ) |  | (13                | ) |  | 3                  |   |  | 59                 |   |  | (20                        | ) |  |                   |   |  | (161               | )
|Due from/to subsidiaries                                                                  |  | (742               | ) |  | (5,787             | ) |  |                    |  | (4,192              | ) |  | 158                |   |  | (298               | ) |  | (361               | ) |  | (185                       | ) |  | (2,345             | ) |  | (2,936             | )
|                                                                                          |  |                    |   |  |                    |   |  |                     |  |                     |   |  |                    |   |  |                    |   |  |                    |   |  |                            |   |  |                    |   |  |                    |  
|Net cash provided by (used in) operating activities                                       |  | 85                 |   |  | (5,314             | ) |  |                    |  | (4,373              | ) |  | 443                |   |  | 24                 |   |  | 4                  |   |  | 8                          |   |  |                   |   |  | (2,976             | )
|                                                                                          |  |                    |   |  |                    |   |  |                     |  |                     |   |  |                    |   |  |                    |   |  |                    |   |  |                            |   |  |                    |   |  |                    |  
|Investing activities:                                                                     |  |                    |   |  |                    |   |  |                     |  |                     |   |  |                    |   |  |                    |   |  |                    |   |  |                            |   |  |                    |   |  |                    |  
|Capital expenditures for property and equipment                                           |  | (85                | ) |  | 569                |   |  |                    |  | (86                 | ) |  | (443               | ) |  | (24                | ) |  | (4                 | ) |  | (8                         | ) |  |                   |   |  | (83                | )
|Proceeds from sales of assets                                                             |  |                   |   |  | 5,000              |   |  |                    |  | 4,650               |   |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |   |  | 3,300              |  
|(Increase) decrease in restricted cash                                                    |  |                   |   |  |                   |   |  |                    |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |   |  |                   |  
|Costs associated with disposition program and other, net                                  |  |                   |   |  | (255               | ) |  |                    |  | (191                | ) |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |   |  | (241               | )
|                                                                                          |  |                    |   |  |                    |   |  |                     |  |                     |   |  |                    |   |  |                    |   |  |                    |   |  |                            |   |  |                    |   |  |                    |  
|Net cash (used in) provided by investing activities                                       |  | (85                | ) |  | 5,314              |   |  |                    |  | 4,373               |   |  | (443               | ) |  | (24                | ) |  | (4                 | ) |  | (8                         | ) |  |                   |   |  | 2,976              |  
|                                                                                          |  |                    |   |  |                    |   |  |                     |  |                     |   |  |                    |   |  |                    |   |  |                    |   |  |                            |   |  |                    |   |  |                    |  
|Financing activities:                                                                     |  |                    |   |  |                    |   |  |                     |  |                     |   |  |                    |   |  |                    |   |  |                    |   |  |                            |   |  |                    |   |  |                    |  
|Prepayments on long-term debt                                                             |  |                   |   |  |                   |   |  |                    |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |   |  |                   |  
|Scheduled payments on long-term debt                                                      |  |                   |   |  |                   |   |  |                    |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |   |  |                   |  
|Loans to/from subsidiaries                                                                |  |                   |   |  |                   |   |  |                    |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |   |  |                   |  
|Distributions to minority investors                                                       |  |                   |   |  |                   |   |  |                    |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |   |  |                   |  
|Other                                                                                     |  |                   |   |  |                   |   |  |                    |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |   |  |                   |  
|                                                                                          |  |                    |   |  |                    |   |  |                     |  |                     |   |  |                    |   |  |                    |   |  |                    |   |  |                            |   |  |                    |   |  |                    |  
|Net cash provided by (used in) financing activities                                       |  |                   |   |  |                   |   |  |                    |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |   |  |                   |  
|                                                                                          |  |                    |   |  |                    |   |  |                     |  |                     |   |  |                    |   |  |                    |   |  |                    |   |  |                            |   |  |                    |   |  |                    |  
|Effect of exchange rate changes on cash and cash equivalents                              |  |                   |   |  |                   |   |  |                    |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |   |  |                   |  
|                                                                                          |  |                    |   |  |                    |   |  |                     |  |                     |   |  |                    |   |  |                    |   |  |                    |   |  |                            |   |  |                    |   |  |                    |  
|Net decrease in cash and cash equivalents                                                 |  |                   |   |  |                   |   |  |                    |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |   |  |                   |  
|Cash and cash equivalents, beginning of period                                            |  |                   |   |  |                   |   |  |                    |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |   |  |                   |  
|                                                                                          |  |                    |   |  |                    |   |  |                     |  |                     |   |  |                    |   |  |                    |   |  |                    |   |  |                            |   |  |                    |   |  |                    |  
|Cash and cash equivalents, end of period                                                  |  |                   |   |  |                   |   |  |                    |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |                           |   |  |                   |   |  |                   |  
|                                                                                          |  |                    |   |  |                    |   |  |                     |  |                     |   |  |                    |   |  |                    |   |  |                    |   |  |                            |   |  |                    |   |  |                    |  





40



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Cash Flows

Three Months Ended March 31, 2004

(Dollars in thousands)



|                                                                                          |  |                   |   |  |                    |   |  |                    |   |  |                    |   |  |                       |   |  |                    |   |  |                    |   |  |                    |   |  |                     |   |  |                    |  
|----------------------------------------------------------------------------------------- |  | ----------------- | - |  | ------------------ | - |  | ------------------ | - |  | ------------------ | - |  | --------------------- | - |  | ------------------ | - |  | ------------------ | - |  | ------------------ | - |  | ------------------- | - |  | ------------------ | -
|                                                                                          |  | MeriStarSub 4A,LP |   |  | MeriStarSub 4D,LLC |   |  | MeriStarSub 2A,LLC |   |  | MeriStarSub 6L,LLC |   |  | MDVLimitedPartnership |   |  | MeriStarSub 5C,LLC |   |  | MeriStarSub 6J,LLC |   |  | MeriStarSub 1D,LLC |   |  | MeriStarSub 7B,L.P. |   |  | MeriStarSub 7D,LLC |  
|Operating activities:                                                                     |  |                   |   |  |                    |   |  |                    |   |  |                    |   |  |                       |   |  |                    |   |  |                    |   |  |                    |   |  |                     |   |  |                    |  
|Net income (loss)                                                                         |  | 96                |   |  |                   |   |  |                   |   |  | 1,852              |   |  | 78                    |   |  |                   |   |  | 280                |   |  | 459                |   |  | (284                | ) |  | 609                |  
|Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |                   |   |  |                    |   |  |                    |   |  |                    |   |  |                       |   |  |                    |   |  |                    |   |  |                    |   |  |                     |   |  |                    |  
|Depreciation and amortization                                                             |  |                  |   |  |                   |   |  |                   |   |  |                   |   |  | 23                    |   |  |                   |   |  | 141                |   |  | 569                |   |  | 98                  |   |  | 431                |  
|Loss on asset impairments                                                                 |  |                  |   |  |                   |   |  |                   |   |  |                   |   |  |                      |   |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |  
|Loss on sale of assets, before tax effect                                                 |  | 46                |   |  |                   |   |  |                   |   |  | (1,827             | ) |  |                      |   |  |                   |   |  |                   |   |  |                   |   |  | 425                 |   |  |                   |  
|Loss on early extinguishments of debt                                                     |  |                  |   |  |                   |   |  |                   |   |  |                   |   |  |                      |   |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |  
|Minority interests                                                                        |  |                  |   |  |                   |   |  |                   |   |  |                   |   |  |                      |   |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |  
|Equity in loss of unconsolidated affiliates                                               |  |                  |   |  |                   |   |  |                   |   |  |                   |   |  |                      |   |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |  
|Amortization of unearned stock-based compensation                                         |  |                  |   |  |                   |   |  |                   |   |  |                   |   |  |                      |   |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |  
|Deferred income taxes                                                                     |  |                  |   |  |                   |   |  |                   |   |  |                   |   |  |                      |   |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |  
|Changes in operating assets and liabilities:                                              |  |                   |   |  |                    |   |  |                    |   |  |                    |   |  |                       |   |  |                    |   |  |                    |   |  |                    |   |  |                     |   |  |                    |  
|Accounts receivable                                                                       |  |                  |   |  |                   |   |  | 2,002              |   |  | (178               | ) |  |                      |   |  | 2                  |   |  |                   |   |  |                   |   |  |                    |   |  | (234               | )
|Prepaid expenses and other assets                                                         |  | (9                | ) |  | 3                  |   |  |                   |   |  | 14                 |   |  | 4                     |   |  | (4                 | ) |  | 4                  |   |  | 105                |   |  | 7                   |   |  | 17                 |  
|Receivables from unconsolidated affiliates                                                |  |                  |   |  |                   |   |  |                   |   |  |                   |   |  |                      |   |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |  
|Due from/to Interstate Hotels & Resorts                                                   |  |                  |   |  |                   |   |  |                   |   |  |                   |   |  |                      |   |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |  
|Accounts payable, accrued expenses, accrued interest and other liabilities                |  | (342              | ) |  |                   |   |  |                   |   |  | (25                | ) |  | 4                     |   |  |                   |   |  | 228                |   |  | 335                |   |  | (540                | ) |  | (166               | )
|Due from/to subsidiaries                                                                  |  | (2,918            | ) |  | (3                 | ) |  | (2,002             | ) |  | (13,823            | ) |  | (82                   | ) |  | 2                  |   |  | (560               | ) |  | (1,155             | ) |  | 328                 |   |  | (326               | )
|                                                                                          |  |                   |   |  |                    |   |  |                    |   |  |                    |   |  |                       |   |  |                    |   |  |                    |   |  |                    |   |  |                     |   |  |                    |  
|Net cash provided by (used in) operating activities                                       |  | (3,127            | ) |  |                   |   |  |                   |   |  | (13,987            | ) |  | 27                    |   |  |                   |   |  | 93                 |   |  | 313                |   |  | 34                  |   |  | 331                |  
|                                                                                          |  |                   |   |  |                    |   |  |                    |   |  |                    |   |  |                       |   |  |                    |   |  |                    |   |  |                    |   |  |                     |   |  |                    |  
|Investing activities:                                                                     |  |                   |   |  |                    |   |  |                    |   |  |                    |   |  |                       |   |  |                    |   |  |                    |   |  |                    |   |  |                     |   |  |                    |  
|Capital expenditures for property and equipment                                           |  | (194              | ) |  |                   |   |  |                   |   |  | (319               | ) |  | (27                   | ) |  |                   |   |  | (93                | ) |  | (313               | ) |  | (34                 | ) |  | (331               | )
|Proceeds from sales of assets                                                             |  | 3,575             |   |  |                   |   |  |                   |   |  | 14,775             |   |  |                      |   |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |  
|(Increase) decrease in restricted cash                                                    |  |                  |   |  |                   |   |  |                   |   |  |                   |   |  |                      |   |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |  
|Costs associated with disposition program and other, net                                  |  | (254              | ) |  |                   |   |  |                   |   |  | (469               | ) |  |                      |   |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |  
|                                                                                          |  |                   |   |  |                    |   |  |                    |   |  |                    |   |  |                       |   |  |                    |   |  |                    |   |  |                    |   |  |                     |   |  |                    |  
|Net cash (used in) provided by investing activities                                       |  | 3,127             |   |  |                   |   |  |                   |   |  | 13,987             |   |  | (27                   | ) |  |                   |   |  | (93                | ) |  | (313               | ) |  | (34                 | ) |  | (331               | )
|                                                                                          |  |                   |   |  |                    |   |  |                    |   |  |                    |   |  |                       |   |  |                    |   |  |                    |   |  |                    |   |  |                     |   |  |                    |  
|Financing activities:                                                                     |  |                   |   |  |                    |   |  |                    |   |  |                    |   |  |                       |   |  |                    |   |  |                    |   |  |                    |   |  |                     |   |  |                    |  
|Prepayments on long-term debt                                                             |  |                  |   |  |                   |   |  |                   |   |  |                   |   |  |                      |   |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |  
|Scheduled payments on long-term debt                                                      |  |                  |   |  |                   |   |  |                   |   |  |                   |   |  |                      |   |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |  
|Loans to/from subsidiaries                                                                |  |                  |   |  |                   |   |  |                   |   |  |                   |   |  |                      |   |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |  
|Distributions to minority investors                                                       |  |                  |   |  |                   |   |  |                   |   |  |                   |   |  |                      |   |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |  
|Other                                                                                     |  |                  |   |  |                   |   |  |                   |   |  |                   |   |  |                      |   |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |  
|                                                                                          |  |                   |   |  |                    |   |  |                    |   |  |                    |   |  |                       |   |  |                    |   |  |                    |   |  |                    |   |  |                     |   |  |                    |  
|Net cash provided by (used in) financing activities                                       |  |                  |   |  |                   |   |  |                   |   |  |                   |   |  |                      |   |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |  
|                                                                                          |  |                   |   |  |                    |   |  |                    |   |  |                    |   |  |                       |   |  |                    |   |  |                    |   |  |                    |   |  |                     |   |  |                    |  
|Effect of exchange rate changes on cash and cash equivalents                              |  |                  |   |  |                   |   |  |                   |   |  |                   |   |  |                      |   |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |  
|                                                                                          |  |                   |   |  |                    |   |  |                    |   |  |                    |   |  |                       |   |  |                    |   |  |                    |   |  |                    |   |  |                     |   |  |                    |  
|Net decrease in cash and cash equivalents                                                 |  |                  |   |  |                   |   |  |                   |   |  |                   |   |  |                      |   |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |  
|Cash and cash equivalents, beginning of period                                            |  |                  |   |  |                   |   |  |                   |   |  |                   |   |  |                      |   |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |  
|                                                                                          |  |                   |   |  |                    |   |  |                    |   |  |                    |   |  |                       |   |  |                    |   |  |                    |   |  |                    |   |  |                     |   |  |                    |  
|Cash and cash equivalents, end of period                                                  |  |                  |   |  |                   |   |  |                   |   |  |                   |   |  |                      |   |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |  
|                                                                                          |  |                   |   |  |                    |   |  |                    |   |  |                    |   |  |                       |   |  |                    |   |  |                    |   |  |                    |   |  |                     |   |  |                    |  





41



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Cash Flows

Three Months Ended March 31, 2004

(Dollars in thousands)



|                                                                                          |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                    |   |  |                    |   |  |               |   |  |                    |   |  |                     |   |  |                    |  
|----------------------------------------------------------------------------------------- |  | ------------------ | - |  | ------------------ | - |  | ------------------- | - |  | ------------------ | - |  | ------------------ | - |  | ------------------ | - |  | ------------- | - |  | ------------------ | - |  | ------------------- | - |  | ------------------ | -
|                                                                                          |  | MeriStarSub 7G,LLC |   |  | MeriStarSub 6B,LLC |   |  | MeriStarSub 4I,L.P. |   |  | MeriStarSub 5D,LLC |   |  | MeriStarSub 5H,LLC |   |  | MeriStarSub 7H,LLC |   |  | AGHPSS I,Inc. |   |  | MeriStarSub 2D,LLC |   |  | MeriStarSub 4F,L.P. |   |  | MeriStarSub 5K,LLC |  
|Operating activities:                                                                     |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                    |   |  |                    |   |  |               |   |  |                    |   |  |                     |   |  |                    |  
|Net income (loss)                                                                         |  | 47                 |   |  | 67                 |   |  |                    |   |  | (270               | ) |  |                   |   |  |                   |   |  |              |   |  |                   |   |  | 130                 |   |  | 264                |  
|Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                    |   |  |                    |   |  |               |   |  |                    |   |  |                     |   |  |                    |  
|Depreciation and amortization                                                             |  | 49                 |   |  | 112                |   |  |                    |   |  | 369                |   |  |                   |   |  |                   |   |  |              |   |  |                   |   |  | 277                 |   |  | 324                |  
|Loss on asset impairments                                                                 |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |              |   |  |                   |   |  |                    |   |  |                   |  
|Loss on sale of assets, before tax effect                                                 |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |              |   |  |                   |   |  |                    |   |  |                   |  
|Loss on early extinguishments of debt                                                     |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |              |   |  |                   |   |  |                    |   |  |                   |  
|Minority interests                                                                        |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |              |   |  |                   |   |  |                    |   |  |                   |  
|Equity in loss of unconsolidated affiliates                                               |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |              |   |  |                   |   |  |                    |   |  |                   |  
|Amortization of unearned stock-based compensation                                         |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |              |   |  |                   |   |  |                    |   |  |                   |  
|Deferred income taxes                                                                     |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |              |   |  |                   |   |  |                    |   |  |                   |  
|Changes in operating assets and liabilities:                                              |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                    |   |  |                    |   |  |               |   |  |                    |   |  |                     |   |  |                    |  
|Accounts receivable                                                                       |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                   |   |  | 43                 |   |  |              |   |  | 1,166              |   |  |                    |   |  |                   |  
|Prepaid expenses and other assets                                                         |  | 5                  |   |  | 2                  |   |  |                    |   |  | 18                 |   |  | 1                  |   |  |                   |   |  | 1             |   |  |                   |   |  | 7                   |   |  | 37                 |  
|Receivables from unconsolidated affiliates                                                |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |              |   |  |                   |   |  |                    |   |  |                   |  
|Due from/to Interstate Hotels & Resorts                                                   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |              |   |  |                   |   |  |                    |   |  |                   |  
|Accounts payable, accrued expenses, accrued interest and other liabilities                |  | 147                |   |  | 63                 |   |  | 61                  |   |  | 327                |   |  |                   |   |  |                   |   |  |              |   |  |                   |   |  | (295                | ) |  | 44                 |  
|Due from/to subsidiaries                                                                  |  | (241               | ) |  | (81                | ) |  | (61                 | ) |  | (346               | ) |  | (1                 | ) |  | (43                | ) |  | (1            | ) |  | (1,166             | ) |  | 241                 |   |  | (632               | )
|                                                                                          |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                    |   |  |                    |   |  |               |   |  |                    |   |  |                     |   |  |                    |  
|Net cash provided by (used in) operating activities                                       |  | 7                  |   |  | 163                |   |  |                    |   |  | 98                 |   |  |                   |   |  |                   |   |  |              |   |  |                   |   |  | 360                 |   |  | 37                 |  
|                                                                                          |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                    |   |  |                    |   |  |               |   |  |                    |   |  |                     |   |  |                    |  
|Investing activities:                                                                     |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                    |   |  |                    |   |  |               |   |  |                    |   |  |                     |   |  |                    |  
|Capital expenditures for property and equipment                                           |  | (7                 | ) |  | (163               | ) |  |                    |   |  | (98                | ) |  |                   |   |  |                   |   |  |              |   |  |                   |   |  | (360                | ) |  | (37                | )
|Proceeds from sales of assets                                                             |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |              |   |  |                   |   |  |                    |   |  |                   |  
|(Increase) decrease in restricted cash                                                    |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |              |   |  |                   |   |  |                    |   |  |                   |  
|Costs associated with disposition program and other, net                                  |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |              |   |  |                   |   |  |                    |   |  |                   |  
|                                                                                          |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                    |   |  |                    |   |  |               |   |  |                    |   |  |                     |   |  |                    |  
|Net cash (used in) provided by investing activities                                       |  | (7                 | ) |  | (163               | ) |  |                    |   |  | (98                | ) |  |                   |   |  |                   |   |  |              |   |  |                   |   |  | (360                | ) |  | (37                | )
|                                                                                          |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                    |   |  |                    |   |  |               |   |  |                    |   |  |                     |   |  |                    |  
|Financing activities:                                                                     |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                    |   |  |                    |   |  |               |   |  |                    |   |  |                     |   |  |                    |  
|Prepayments on long-term debt                                                             |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |              |   |  |                   |   |  |                    |   |  |                   |  
|Scheduled payments on long-term debt                                                      |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |              |   |  |                   |   |  |                    |   |  |                   |  
|Loans to/from subsidiaries                                                                |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |              |   |  |                   |   |  |                    |   |  |                   |  
|Distributions to minority investors                                                       |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |              |   |  |                   |   |  |                    |   |  |                   |  
|Other                                                                                     |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |              |   |  |                   |   |  |                    |   |  |                   |  
|                                                                                          |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                    |   |  |                    |   |  |               |   |  |                    |   |  |                     |   |  |                    |  
|Net cash provided by (used in) financing activities                                       |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |              |   |  |                   |   |  |                    |   |  |                   |  
|                                                                                          |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                    |   |  |                    |   |  |               |   |  |                    |   |  |                     |   |  |                    |  
|Effect of exchange rate changes on cash and cash equivalents                              |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |              |   |  |                   |   |  |                    |   |  |                   |  
|                                                                                          |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                    |   |  |                    |   |  |               |   |  |                    |   |  |                     |   |  |                    |  
|Net decrease in cash and cash equivalents                                                 |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |              |   |  |                   |   |  |                    |   |  |                   |  
|Cash and cash equivalents, beginning of period                                            |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |              |   |  |                   |   |  |                    |   |  |                   |  
|                                                                                          |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                    |   |  |                    |   |  |               |   |  |                    |   |  |                     |   |  |                    |  
|Cash and cash equivalents, end of period                                                  |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                   |   |  |                   |   |  |              |   |  |                   |   |  |                    |   |  |                   |  
|                                                                                          |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                    |   |  |                    |   |  |               |   |  |                    |   |  |                     |   |  |                    |  



42



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Cash Flows

Three Months Ended March 31, 2004

(Dollars in thousands)



|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                    |  
|----------------------------------------------------------------------------------------- |  | ------------------ | - |  | ------------------ | - |  | ------------------ | - |  | ------------------- | - |  | ------------------ | - |  | ------------------- | - |  | ------------------ | - |  | ------------------- | - |  | ------------------ | - |  | ------------------ | -
|                                                                                          |  | MeriStarSub 5M,LLC |   |  | MeriStarSub 1E,LLC |   |  | MeriStarSub 5O,LLC |   |  | MeriStarSub 4B,L.P. |   |  | MeriStarSub 2C,LLC |   |  | MeriStarSub 4G,L.P. |   |  | MeriStarSub 3B,LLC |   |  | MeriStarSub 5G,L.P. |   |  | MeriStarSub 5N,LLC |   |  | MeriStarSub 5P,LLC |  
|Operating activities:                                                                     |  |                    |   |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                    |  
|Net income (loss)                                                                         |  | 380                |   |  |                   |   |  | 177                |   |  | (216                | ) |  | (978               | ) |  | 85                  |   |  |                   |   |  | 1,071               |   |  | 246                |   |  | 164                |  
|Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |                    |   |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                    |  
|Depreciation and amortization                                                             |  | 118                |   |  |                   |   |  | 57                 |   |  |                    |   |  |                   |   |  | 112                 |   |  |                   |   |  | 1,572               |   |  | 34                 |   |  | 1                  |  
|Loss on asset impairments                                                                 |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  | 903                |   |  | 245                 |   |  |                   |   |  |                    |   |  |                   |   |  |                   |  
|Loss on sale of assets, before tax effect                                                 |  |                   |   |  |                   |   |  |                   |   |  | 215                 |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                   |  
|Loss on early extinguishments of debt                                                     |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                   |  
|Minority interests                                                                        |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                   |  
|Equity in loss of unconsolidated affiliates                                               |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                   |  
|Amortization of unearned stock-based compensation                                         |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                   |  
|Deferred income taxes                                                                     |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                   |  
|Changes in operating assets and liabilities:                                              |  |                    |   |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                    |  
|Accounts receivable                                                                       |  |                   |   |  | 198                |   |  |                   |   |  |                    |   |  | (7                 | ) |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                   |  
|Prepaid expenses and other assets                                                         |  | 21                 |   |  | (1                 | ) |  | 8                  |   |  | (4                  | ) |  | 17                 |   |  | 47                  |   |  |                   |   |  | 131                 |   |  | 9                  |   |  | 2                  |  
|Receivables from unconsolidated affiliates                                                |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                   |  
|Due from/to Interstate Hotels & Resorts                                                   |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                   |  
|Accounts payable, accrued expenses, accrued interest and other liabilities                |  | 49                 |   |  | (14                | ) |  | 27                 |   |  | (411                | ) |  | (119               | ) |  | (405                | ) |  | 22                 |   |  | (761                | ) |  | 28                 |   |  |                   |  
|Due from/to subsidiaries                                                                  |  | (548               | ) |  | (183               | ) |  | (264               | ) |  | (6,187              | ) |  | 251                |   |  | (83                 | ) |  | (22                | ) |  | 567                 |   |  | (300               | ) |  | (167               | )
|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                    |  
|Net cash provided by (used in) operating activities                                       |  | 20                 |   |  |                   |   |  | 5                  |   |  | (6,603              | ) |  | 67                 |   |  | 1                   |   |  |                   |   |  | 2,580               |   |  | 17                 |   |  |                   |  
|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                    |  
|Investing activities:                                                                     |  |                    |   |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                    |  
|Capital expenditures for property and equipment                                           |  | (20                | ) |  |                   |   |  | (5                 | ) |  | (415                | ) |  | (67                | ) |  | (1                  | ) |  |                   |   |  | (2,580              | ) |  | (17                | ) |  |                   |  
|Proceeds from sales of assets                                                             |  |                   |   |  |                   |   |  |                   |   |  | 7,500               |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                   |  
|(Increase) decrease in restricted cash                                                    |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                   |  
|Costs associated with disposition program and other, net                                  |  |                   |   |  |                   |   |  |                   |   |  | (482                | ) |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                   |  
|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                    |  
|Net cash (used in) provided by investing activities                                       |  | (20                | ) |  |                   |   |  | (5                 | ) |  | 6,603               |   |  | (67                | ) |  | (1                  | ) |  |                   |   |  | (2,580              | ) |  | (17                | ) |  |                   |  
|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                    |  
|Financing activities:                                                                     |  |                    |   |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                    |  
|Prepayments on long-term debt                                                             |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                   |  
|Scheduled payments on long-term debt                                                      |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                   |  
|Loans to/from subsidiaries                                                                |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                   |  
|Distributions to minority investors                                                       |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                   |  
|Other                                                                                     |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                   |  
|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                    |  
|Net cash provided by (used in) financing activities                                       |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                   |  
|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                    |  
|Effect of exchange rate changes on cash and cash equivalents                              |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                   |  
|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                    |  
|Net decrease in cash and cash equivalents                                                 |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                   |  
|Cash and cash equivalents, beginning of period                                            |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                   |  
|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                    |  
|Cash and cash equivalents, end of period                                                  |  |                   |   |  |                   |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                    |   |  |                   |   |  |                   |  
|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                     |   |  |                    |   |  |                    |  



43



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Cash Flows

Three Months Ended March 31, 2004

(Dollars in thousands)



|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |  |                    |  |                              
|----------------------------------------------------------------------------------------- |  | ------------------ | - |  | ------------------ | - |  | ------------------ | - |  | ------------------ | - |  | ------------------ | - |  | ------------------ |  | ------------------ |  | ------------------ |  | ------------------ |  | -----------------------------
|                                                                                          |  | MeriStarSub 5J,LLC |   |  | MeriStarSub 5Q,LLC |   |  | MeriStarSub 5A,LLC |   |  | MeriStarSub 8D,LLC |   |  | MeriStarSub 4J,LLC |   |  | MeriStarSub 6K,LLC |  | MeriStarSub 5E,LLC |  | MeriStarSub 6I,LLC |  | MeriStarSub 5I,LLC |  | CapStarCherry HillCompany,LLC
|Operating activities:                                                                     |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |  |                    |  |                              
|Net income (loss)                                                                         |  | 885                |   |  | 374                |   |  | 501                |   |  | (857               | ) |  | 212                |   |  |                   |  |                   |  |                   |  |                   |  |                             
|Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |  |                    |  |                              
|Depreciation and amortization                                                             |  | 1,415              |   |  | 140                |   |  | 269                |   |  |                   |   |  | 315                |   |  |                   |  |                   |  |                   |  |                   |  |                             
|Loss on asset impairments                                                                 |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |  |                   |  |                             
|Loss on sale of assets, before tax effect                                                 |  |                   |   |  |                   |   |  |                   |   |  | 899                |   |  |                   |   |  |                   |  |                   |  |                   |  |                   |  |                             
|Loss on early extinguishments of debt                                                     |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |  |                   |  |                             
|Minority interests                                                                        |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |  |                   |  |                             
|Equity in loss of unconsolidated affiliates                                               |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |  |                   |  |                             
|Amortization of unearned stock-based compensation                                         |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |  |                   |  |                             
|Deferred income taxes                                                                     |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |  |                   |  |                             
|Changes in operating assets and liabilities:                                              |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |  |                    |  |                              
|Accounts receivable                                                                       |  |                   |   |  |                   |   |  |                   |   |  | (359               | ) |  |                   |   |  |                   |  |                   |  |                   |  |                   |  |                             
|Prepaid expenses and other assets                                                         |  | 169                |   |  | 26                 |   |  | 15                 |   |  | 14                 |   |  | 9                  |   |  |                   |  |                   |  |                   |  |                   |  |                             
|Receivables from unconsolidated affiliates                                                |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |  |                   |  |                             
|Due from/to Interstate Hotels & Resorts                                                   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |  |                   |  |                             
|Accounts payable, accrued expenses, accrued interest and other liabilities                |  | 154                |   |  | 28                 |   |  | 370                |   |  | 183                |   |  | 12                 |   |  |                   |  |                   |  |                   |  |                   |  |                             
|Due from/to subsidiaries                                                                  |  | (1,505             | ) |  | (510               | ) |  | (940               | ) |  | (7,983             | ) |  | (202               | ) |  |                   |  |                   |  |                   |  |                   |  |                             
|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |  |                    |  |                              
|Net cash provided by (used in) operating activities                                       |  | 1,118              |   |  | 58                 |   |  | 215                |   |  | (8,103             | ) |  | 346                |   |  |                   |  |                   |  |                   |  |                   |  |                             
|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |  |                    |  |                              
|Investing activities:                                                                     |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |  |                    |  |                              
|Capital expenditures for property and equipment                                           |  | (1,118             | ) |  | (58                | ) |  | (215               | ) |  | (358               | ) |  | (346               | ) |  |                   |  |                   |  |                   |  |                   |  |                             
|Proceeds from sales of assets                                                             |  |                   |   |  |                   |   |  |                   |   |  | 8,800              |   |  |                   |   |  |                   |  |                   |  |                   |  |                   |  |                             
|(Increase) decrease in restricted cash                                                    |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |  |                   |  |                             
|Costs associated with disposition program and other, net                                  |  |                   |   |  |                   |   |  |                   |   |  | (339               | ) |  |                   |   |  |                   |  |                   |  |                   |  |                   |  |                             
|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |  |                    |  |                              
|Net cash (used in) provided by investing activities                                       |  | (1,118             | ) |  | (58                | ) |  | (215               | ) |  | 8,103              |   |  | (346               | ) |  |                   |  |                   |  |                   |  |                   |  |                             
|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |  |                    |  |                              
|Financing activities:                                                                     |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |  |                    |  |                              
|Prepayments on long-term debt                                                             |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |  |                   |  |                             
|Scheduled payments on long-term debt                                                      |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |  |                   |  |                             
|Loans to/from subsidiaries                                                                |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |  |                   |  |                             
|Distributions to minority investors                                                       |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |  |                   |  |                             
|Other                                                                                     |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |  |                   |  |                             
|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |  |                    |  |                              
|Net cash provided by (used in) financing activities                                       |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |  |                   |  |                             
|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |  |                    |  |                              
|Effect of exchange rate changes on cash and cash equivalents                              |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |  |                   |  |                             
|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |  |                    |  |                              
|Net decrease in cash and cash equivalents                                                 |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |  |                   |  |                             
|Cash and cash equivalents, beginning of period                                            |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |  |                   |  |                             
|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |  |                    |  |                              
|Cash and cash equivalents, end of period                                                  |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |   |  |                   |  |                   |  |                   |  |                   |  |                             
|                                                                                          |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |   |  |                    |  |                    |  |                    |  |                    |  |                              



44



---

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Cash Flows

Three Months Ended March 31, 2004

(Dollars in thousands)



|                                                                                          |  |                                |  |                    |  |                    |  |                          |   |  |                            |   |  |              |   |  |                   |         |  
|----------------------------------------------------------------------------------------- |  | ------------------------------ |  | ------------------ |  | ------------------ |  | ------------------------ | - |  | -------------------------- | - |  | ------------ | - |  | ----------------- | ------- | -
|                                                                                          |  | MeristarAcquisitionCompany,LLC |  | MeriStarSub 6A,LLC |  | MeriStarSub 6F,LLC |  | MeriStarHotelLessee,Inc. |   |  | GuarantorSubsidiariesTotal |   |  | Eliminations |   |  | TotalConsolidated |        
|Operating activities:                                                                     |  |                                |  |                    |  |                    |  |                          |   |  |                            |   |  |              |   |  |                   |         |  
|Net income (loss)                                                                         |  |                               |  |                   |  |                   |  | (23,653                  | ) |  | (14,457                    | ) |  | 6,866        |   |  | $                 | (40,887 | )
|Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |                                |  |                    |  |                    |  |                          |   |  |                            |   |  |              |   |  |                   |         |  
|Depreciation and amortization                                                             |  |                               |  |                   |  |                   |  | 39                       |   |  | 9,967                      |   |  |             |   |  |                   | 26,702  |  
|Loss on asset impairments                                                                 |  |                               |  |                   |  |                   |  |                         |   |  | 2,141                      |   |  |             |   |  |                   | 5,011   |  
|Loss on sale of assets, before tax effect                                                 |  |                               |  |                   |  |                   |  | 7,036                    |   |  | 7,392                      |   |  |             |   |  |                   | 6,946   |  
|Loss on early extinguishments of debt                                                     |  |                               |  |                   |  |                   |  |                         |   |  |                           |   |  |             |   |  |                   | 5,923   |  
|Minority interests                                                                        |  |                               |  |                   |  |                   |  |                         |   |  |                           |   |  |             |   |  |                   | (4      | )
|Equity in loss of unconsolidated affiliates                                               |  |                               |  |                   |  |                   |  |                         |   |  |                           |   |  | (6,866       | ) |  |                   |        |  
|Amortization of unearned stock-based compensation                                         |  |                               |  |                   |  |                   |  |                         |   |  |                           |   |  |             |   |  |                   | 587     |  
|Deferred income taxes                                                                     |  |                               |  |                   |  |                   |  |                         |   |  |                           |   |  |             |   |  |                   | (358    | )
|Changes in operating assets and liabilities:                                              |  |                                |  |                    |  |                    |  |                          |   |  |                            |   |  |              |   |  |                   |         |  
|Accounts receivable                                                                       |  |                               |  |                   |  |                   |  | (7,915                   | ) |  | (2,944                     | ) |  |             |   |  |                   | (2,767  | )
|Prepaid expenses and other assets                                                         |  |                               |  |                   |  |                   |  | 755                      |   |  | 1,761                      |   |  |             |   |  |                   | 4,920   |  
|Receivables from unconsolidated affiliates                                                |  |                               |  |                   |  |                   |  |                         |   |  |                           |   |  |             |   |  |                   | (1,600  | )
|Due from/to Interstate Hotels & Resorts                                                   |  |                               |  |                   |  |                   |  | (11,327                  | ) |  | (11,327                    | ) |  |             |   |  |                   | (5,461  | )
|Accounts payable, accrued expenses, accrued interest and other liabilities                |  |                               |  |                   |  |                   |  | 11,306                   |   |  | 10,453                     |   |  |             |   |  |                   | (1,648  | )
|Due from/to subsidiaries                                                                  |  |                               |  |                   |  |                   |  | 11,261                   |   |  | (49,626                    | ) |  |             |   |  |                   |        |  
|                                                                                          |  |                                |  |                    |  |                    |  |                          |   |  |                            |   |  |              |   |  |                   |         |  
|Net cash provided by (used in) operating activities                                       |  |                               |  |                   |  |                   |  | (12,498                  | ) |  | (46,640                    | ) |  |             |   |  |                   | (2,636  | )
|                                                                                          |  |                                |  |                    |  |                    |  |                          |   |  |                            |   |  |              |   |  |                   |         |  
|Investing activities:                                                                     |  |                                |  |                    |  |                    |  |                          |   |  |                            |   |  |              |   |  |                   |         |  
|Capital expenditures for property and equipment                                           |  |                               |  |                   |  |                   |  |                         |   |  | (11,227                    | ) |  |             |   |  |                   | (23,737 | )
|Proceeds from sales of assets                                                             |  |                               |  |                   |  |                   |  |                         |   |  | 47,600                     |   |  |             |   |  |                   | 74,075  |  
|(Increase) decrease in restricted cash                                                    |  |                               |  |                   |  |                   |  | (1,288                   | ) |  | (1,288                     | ) |  |             |   |  |                   | (2,133  | )
|Costs associated with disposition program and other, net                                  |  |                               |  |                   |  |                   |  |                         |   |  | (2,231                     | ) |  |             |   |  |                   | (3,304  | )
|                                                                                          |  |                                |  |                    |  |                    |  |                          |   |  |                            |   |  |              |   |  |                   |         |  
|Net cash (used in) provided by investing activities                                       |  |                               |  |                   |  |                   |  | (1,288                   | ) |  | 32,854                     |   |  |             |   |  |                   | 44,901  |  
|                                                                                          |  |                                |  |                    |  |                    |  |                          |   |  |                            |   |  |              |   |  |                   |         |  
|Financing activities:                                                                     |  |                                |  |                    |  |                    |  |                          |   |  |                            |   |  |              |   |  |                   |         |  
|Prepayments on long-term debt                                                             |  |                               |  |                   |  |                   |  |                         |   |  |                           |   |  |             |   |  |                   | (75,497 | )
|Scheduled payments on long-term debt                                                      |  |                               |  |                   |  |                   |  |                         |   |  |                           |   |  |             |   |  |                   | (2,307  | )
|Loans to/from subsidiaries                                                                |  |                               |  |                   |  |                   |  | 27,493                   |   |  | 27,493                     |   |  |             |   |  |                   |        |  
|Distributions to minority investors                                                       |  |                               |  |                   |  |                   |  |                         |   |  |                           |   |  |             |   |  |                   | (141    | )
|Other                                                                                     |  |                               |  |                   |  |                   |  |                         |   |  |                           |   |  |             |   |  |                   | (77     | )
|                                                                                          |  |                                |  |                    |  |                    |  |                          |   |  |                            |   |  |              |   |  |                   |         |  
|Net cash provided by (used in) financing activities                                       |  |                               |  |                   |  |                   |  | 27,493                   |   |  | 27,493                     |   |  |             |   |  |                   | (78,022 | )
|                                                                                          |  |                                |  |                    |  |                    |  |                          |   |  |                            |   |  |              |   |  |                   |         |  
|Effect of exchange rate changes on cash and cash equivalents                              |  |                               |  |                   |  |                   |  |                         |   |  |                           |   |  |             |   |  |                   | (150    | )
|                                                                                          |  |                                |  |                    |  |                    |  |                          |   |  |                            |   |  |              |   |  |                   |         |  
|Net decrease in cash and cash equivalents                                                 |  |                               |  |                   |  |                   |  | 13,707                   |   |  | 13,707                     |   |  |             |   |  |                   | (35,907 | )
|Cash and cash equivalents, beginning of period                                            |  |                               |  |                   |  |                   |  | 12,230                   |   |  | 12,230                     |   |  |             |   |  |                   | 230,876 |  
|                                                                                          |  |                                |  |                    |  |                    |  |                          |   |  |                            |   |  |              |   |  |                   |         |  
|Cash and cash equivalents, end of period                                                  |  |                               |  |                   |  |                   |  | 25,937                   |   |  | 25,937                     |   |  |             |   |  | $                 | 194,969 |  
|                                                                                          |  |                                |  |                    |  |                    |  |                          |   |  |                            |   |  |              |   |  |                   |         |  



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