<PAGE>
                                                                               .
                                                                               .
                                                                               .
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)

<Table>
<Caption>
                                                             MERISTAR         NON-
                                                           HOSPITALITY     GUARANTOR      MERISTAR     AGH UPREIT,    MERISTAR
                                                             OP, L.P.     SUBSIDIARIES   SUB 7C, LLC        LLC      SUB 5N, LLC
                                                           -----------    ------------   -----------   -----------   -----------
<S>                                                        <C>            <C>            <C>           <C>           <C>
ASSETS
Property and equipment                                          22,219      1,472,038             --            --         4,193
Accumulated depreciation                                       (15,590)      (270,448)            --            --          (748)
                                                           -----------    -----------    -----------   -----------   -----------
                                                                 6,629      1,201,590             --            --         3,445

Assets held for sale                                                --          9,313             --            --            --
Investments in affiliates                                    2,635,432          8,200             32         2,989            --
Due to/from subsidiaries                                    (1,078,785)       528,088             --            74         4,724
Note receivable from subsidiaries                              158,084             --             --            --            --
Prepaid expenses and other assets                               32,454         (3,546)            --            --           (33)
Accounts receivable, net of allowance for doubtful accounts     26,366            810             --            --            --
Restricted cash                                                 67,707          2,166             --            --            --
Cash and cash equivalents - unrestricted                       125,513             --             --            --            --
                                                           -----------    -----------    -----------   -----------   -----------
                                                             1,973,400      1,746,621             32         3,063         8,136
                                                           ===========    ===========    ===========   ===========   ===========

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                 836,204        487,780             --            --            --
Notes payable to MeriStar Hospitality Corporation              207,576             --             --            --            --
Accounts payable and accrued expenses                            6,118          7,125             --            --            37
Accrued interest                                                38,951          2,170             --            --            --
Due to Interstate Hotels & Resorts                              13,841             --             --            --            --
Other liabilities                                               10,863             --             --            --            --
                                                           -----------    -----------    -----------   -----------   -----------
                                                             1,113,553        497,075             --            --            37
                                                           -----------    -----------    -----------   -----------   -----------

Minority interests                                               2,472             --             --            --            --
Redeemable OP units at redemption value                         27,533             --             --            --            --
Partners' capital                                              829,842      1,249,546             32         3,063         8,099
                                                           -----------    -----------    -----------   -----------   -----------
                                                             1,973,400      1,746,621             32         3,063         8,136
                                                           ===========    ===========    ===========   ===========   ===========

<Caption>

                                                            MERISTAR SUB  MERISTAR SUB   MERISTAR SUB  MERISTAR SUB   MERISTAR SUB
                                                               8A, LLC      8F, L.P.       8G, LLC       6H, L.P.       8B, LLC
                                                            ------------  ------------   ------------  ------------   ------------
<S>                                                         <C>           <C>            <C>           <C>            <C>
ASSETS
Property and equipment                                               --        11,535             --        10,863         87,997
Accumulated depreciation                                             --        (2,850)            --          (470)       (13,458)
                                                            -----------   -----------    -----------   -----------    -----------
                                                                     --         8,685             --        10,393         74,539

Assets held for sale                                                 --            --             --            --             --
Investments in affiliates                                            --            --             72            --             --
Due to/from subsidiaries                                             --         7,870              9         7,326         29,243
Note receivable from subsidiaries                                    --            --             --            --             --
Prepaid expenses and other assets                                    --           (50)            --            (5)           (70)
Accounts receivable, net of allowance for doubtful accounts          --            --             --            --             --
Restricted cash                                                      --           115             --            --             --
Cash and cash equivalents - unrestricted                             --            --             --            --             --
                                                            -----------   -----------    -----------   -----------    -----------
                                                                     --        16,620             81        17,714        103,712
                                                            ===========   ===========    ===========   ===========    ===========

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                       --            --             --            --             --
Notes payable to MeriStar Hospitality Corporation                    --            --             --            --             --
Accounts payable and accrued expenses                                --            38             --            43          2,395
Accrued interest                                                     --            --             --            --             --
Due to Interstate Hotels & Resorts                                   --            --             --            --             --
Other liabilities                                                    --            --             --            --             --
                                                            -----------   -----------    -----------   -----------    -----------
                                                                     --            38             --            43          2,395
                                                            -----------   -----------    -----------   -----------    -----------

Minority interests                                                   --            --             --            --             --
Redeemable OP units at redemption value                              --            --             --            --             --
Partners' capital                                                    --        16,582             81        17,671        101,317
                                                            -----------   -----------    -----------   -----------    -----------
                                                                     --        16,620             81        17,714        103,712
                                                            ===========   ===========    ===========   ===========    ===========
</Table>


<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)


<Table>
<Caption>
                                                             MERISTAR SUB  MERISTAR SUB  MERISTAR SUB  MERISTAR SUB  MERISTAR SUB
                                                              1C, L.P.       8E, LLC       7F, LLC       5L, LLC       3C, LLC
                                                             ------------  ------------  ------------  ------------  ------------
<S>                                                          <C>           <C>           <C>           <C>           <C>

ASSETS
Property and equipment                                            26,898        15,610         7,338        12,052        17,509
Accumulated depreciation                                          (6,597)       (3,322)         (266)         (722)       (4,047)
                                                             -----------   -----------   -----------   -----------   -----------
                                                                  20,301        12,288         7,072        11,330        13,462

Assets held for sale                                                  --            --            --            --            --
Investments in affiliates                                             --            --            --            --            --
Due to/from subsidiaries                                          (3,754)        7,262         5,515         4,673         5,928
Note receivable from subsidiaries                                     --            --            --            --            --
Prepaid expenses and other assets                                   (147)          (19)           (7)          (53)           15
Accounts receivable, net of allowance for doubtful accounts           --            --            --            --            --
Restricted cash                                                       --            --            --            --            --
Cash and cash equivalents - unrestricted                              --            --            --            --            --
                                                             -----------   -----------   -----------   -----------   -----------
                                                                  16,400        19,531        12,580        15,950        19,405
                                                             ===========   ===========   ===========   ===========   ===========

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                        --            --            --            --            --
Notes payable to MeriStar Hospitality Corporation                     --            --            --            --            --
Accounts payable and accrued expenses                                 72           (23)          157            48           212
Accrued interest                                                      --            --            --            --            --
Due to Interstate Hotels & Resorts                                    --            --            --            --            --
Other liabilities                                                     --            --            --            --            --
                                                             -----------   -----------   -----------   -----------   -----------
                                                                      72           (23)          157            48           212
                                                             -----------   -----------   -----------   -----------   -----------

Minority interests                                                    --            --            --            --            --
Redeemable OP units at redemption value                               --            --            --            --            --
Partners' capital                                                 16,328        19,554        12,423        15,902        19,193
                                                             -----------   -----------   -----------   -----------   -----------
                                                                  16,400        19,531        12,580        15,950        19,405
                                                             ===========   ===========   ===========   ===========   ===========

<Caption>

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

ASSETS
Property and equipment                                                --        17,921        47,575         3,880        19,375
Accumulated depreciation                                              --        (3,166)      (10,789)           --        (4,313)
                                                             -----------   -----------   -----------   -----------   -----------
                                                                      --        14,755        36,786         3,880        15,062

Assets held for sale                                                  --            --            --            --            --
Investments in affiliates                                             43            --            --            --            --
Due to/from subsidiaries                                             (43)        9,034        22,531         3,772        15,702
Note receivable from subsidiaries                                     --            --            --            --            --
Prepaid expenses and other assets                                     --           (14)          (64)          (37)          (60)
Accounts receivable, net of allowance for doubtful accounts           --            98            --            --            96
Restricted cash                                                       --            --            --            --            --
Cash and cash equivalents - unrestricted                              --            --            --            --            --
                                                             -----------   -----------   -----------   -----------   -----------
                                                                      --        23,873        59,253         7,615        30,800
                                                             ===========   ===========   ===========   ===========   ===========

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                        --            --            --            --            33
Notes payable to MeriStar Hospitality Corporation                     --            --            --            --            --
Accounts payable and accrued expenses                                 --           136            60           204            (5)
Accrued interest                                                      --            --            --            --            --
Due to Interstate Hotels & Resorts                                    --            --            --            --            --
Other liabilities                                                     --            --            --            --            --
                                                             -----------   -----------   -----------   -----------   -----------
                                                                      --           136            60           204            28
                                                             -----------   -----------   -----------   -----------   -----------

Minority interests                                                    --            --            --            --            --
Redeemable OP units at redemption value                               --            --            --            --            --
Partners' capital                                                     --        23,737        59,193         7,411        30,772
                                                             -----------   -----------   -----------   -----------   -----------
                                                                      --        23,873        59,253         7,615        30,800
                                                             ===========   ===========   ===========   ===========   ===========
</Table>

<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)

<Table>
<Caption>

                                                             MERISTAR SUB   MERISTAR SUB  MERISTAR SUB  MERISTAR SUB  MERISTAR SUB
                                                               5F, L.P.       6G, LLC       8C, LLC       4C, L.P.      4H, L.P.
                                                             -------------  ------------  ------------  ------------  ------------
<S>                                                          <C>            <C>           <C>           <C>           <C>

ASSETS
Property and equipment                                            19,426         22,883            --            --             1
Accumulated depreciation                                            (589)        (5,376)           --            --            --
                                                             -----------    -----------   -----------   -----------   -----------
                                                                  18,837         17,507            --            --             1

Assets held for sale                                                  --             --            --            --            --
Investments in affiliates                                             --             --            --            --            --
Due to/from subsidiaries                                          11,741          8,548        11,440            --         3,413
Note receivable from subsidiaries                                     --             --            --            --            --
Prepaid expenses and other assets                                   (126)           (24)           --            --            --
Accounts receivable, net of allowance for doubtful accounts           --             --            --            --            --
Restricted cash                                                       --             --            --            --            --
Cash and cash equivalents - unrestricted                              --             --            --            --            --
                                                             -----------    -----------   -----------   -----------   -----------
                                                                  30,452         26,031        11,440            --         3,414
                                                             ===========    ===========   ===========   ===========   ===========

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                        --             --            --            --            --
Notes payable to MeriStar Hospitality Corporation                     --             --            --            --            --
Accounts payable and accrued expenses                                120             72             1            --            --
Accrued interest                                                      --             --            --            --            --
Due to Interstate Hotels & Resorts                                    --             --            --            --            --
Other liabilities                                                     --             --            --            --            --
                                                             -----------    -----------   -----------   -----------   -----------
                                                                     120             72             1            --            --
                                                             -----------    -----------   -----------   -----------   -----------

Minority interests                                                    --             --            --            --            --
Redeemable OP units at redemption value                               --             --            --            --            --
Partners' capital                                                 30,332         25,959        11,439            --         3,414
                                                             -----------    -----------   -----------   -----------   -----------
                                                                  30,452         26,031        11,440            --         3,414
                                                             ===========    ===========   ===========   ===========   ===========

<Caption>
                                                                                                        MERISTAR SUB
                                                             MERISTAR SUB   MERISTAR SUB  MERISTAR SUB   7A JOINT     MERISTAR SUB
                                                               7E, LLC        3D, LLC       1A, LLC       VENTURE       2B, LLC
                                                             ------------   ------------  ------------  ------------  ------------
<S>                                                          <C>            <C>           <C>           <C>           <C>

ASSETS
Property and equipment                                            20,138         22,826            --            --            --
Accumulated depreciation                                          (3,636)        (7,418)           --            --            --
                                                             -----------    -----------   -----------   -----------   -----------
                                                                  16,502         15,408            --            --            --

Assets held for sale                                                  --             --         7,857         4,656            --
Investments in affiliates                                             --             --            --            --            --
Due to/from subsidiaries                                           5,428          9,001         7,965         5,449        (3,497)
Note receivable from subsidiaries                                     --             --            --            --            --
Prepaid expenses and other assets                                    (15)           (31)          (86)           (9)           --
Accounts receivable, net of allowance for doubtful accounts           --             --            --            --            --
Restricted cash                                                       --             --            --            --            --
Cash and cash equivalents - unrestricted                              --             --            --            --            --
                                                             -----------    -----------   -----------   -----------   -----------
                                                                  21,915         24,378        15,736        10,096        (3,497)
                                                             ===========    ===========   ===========   ===========   ===========

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                        --             --            --            --            --
Notes payable to MeriStar Hospitality Corporation                     --             --            --            --            --
Accounts payable and accrued expenses                                108             85            27           177            (7)
Accrued interest                                                      --             --            --            --            --
Due to Interstate Hotels & Resorts                                    --             --            --            --            --
Other liabilities                                                     --             --            --            --            --
                                                             -----------    -----------   -----------   -----------   -----------
                                                                     108             85            27           177            (7)
                                                             -----------    -----------   -----------   -----------   -----------

Minority interests                                                    --             --            --            --            --
Redeemable OP units at redemption value                               --             --            --            --            --
Partners' capital                                                 21,807         24,293        15,709         9,919        (3,490)
                                                             -----------    -----------   -----------   -----------   -----------
                                                                  21,915         24,378        15,736        10,096        (3,497)
                                                             ===========    ===========   ===========   ===========   ===========
</Table>

<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)


<Table>
<Caption>
                                                                             MERISTAR
                                                             MERISTAR SUB    SUB 4A,     MERISTAR SUB  MERISTAR SUB  MERISTAR SUB
                                                               3A, LLC         LLC         4D, LLC       2A, LLC       6L, LLC
                                                             ------------  -----------   ------------  ------------  ------------
<S>                                                          <C>           <C>           <C>           <C>           <C>
ASSETS
Property and equipment                                                --            --            --            --            --
Accumulated depreciation                                              --            --            --            --            --
                                                             -----------   -----------   -----------   -----------   -----------
                                                                      --            --            --            --            --

Assets held for sale                                                  --            --            --            --            --
Investments in affiliates                                             --            --            --            --            --
Due to/from subsidiaries                                           4,976         7,612            --        (7,913)       20,297
Note receivable from subsidiaries                                     --            --            --            --            --
Prepaid expenses and other assets                                     --            --            --            --            --
Accounts receivable, net of allowance for doubtful accounts           --            --            --            --           178
Restricted cash                                                       --            --            --            --            --
Cash and cash equivalents - unrestricted                              --            --            --            --            --
                                                             -----------   -----------   -----------   -----------   -----------
                                                                   4,976         7,612            --        (7,913)       20,475
                                                             ===========   ===========   ===========   ===========   ===========

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

Minority interests                                                    --            --            --            --            --
Redeemable OP units at redemption value                               --            --            --            --            --
Partners' capital                                                  4,976         7,612            --        (7,906)       20,475
                                                             -----------   -----------   -----------   -----------   -----------
                                                                   4,976         7,612            --        (7,913)       20,475
                                                             ===========   ===========   ===========   ===========   ===========

<Caption>

                                                             MDV LIMITED   MERISTAR SUB  MERISTAR SUB  MERISTAR SUB  MERISTAR SUB
                                                             PARTNERSHIP     5C, LLC       6J, LLC       1D, L.P.      7B, L.P.
                                                             -----------   ------------  ------------  ------------  ------------
<S>                                                          <C>           <C>           <C>           <C>           <C>
ASSETS
Property and equipment                                             3,900            --        19,721        69,078            --
Accumulated depreciation                                            (756)           --        (4,051)      (13,172)           --
                                                             -----------   -----------   -----------   -----------   -----------
                                                                   3,144            --        15,670        55,906            --

Assets held for sale                                                  --            --            --            --            --
Investments in affiliates                                             --            --            --            --            --
Due to/from subsidiaries                                           2,702         5,087         8,844        21,253          (262)
Note receivable from subsidiaries                                     --            --            --            --            --
Prepaid expenses and other assets                                    (14)            4             9          (393)           --
Accounts receivable, net of allowance for doubtful accounts           --            (2)           --            --            --
Restricted cash                                                       --            --            --            --            --
Cash and cash equivalents - unrestricted                              --            --            --            --            --
                                                             -----------   -----------   -----------   -----------   -----------
                                                                   5,832         5,089        24,523        76,766          (262)
                                                             ===========   ===========   ===========   ===========   ===========

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                        --            --            --            --            --
Notes payable to MeriStar Hospitality Corporation                     --            --            --            --            --
Accounts payable and accrued expenses                                102            --            72            98            --
Accrued interest                                                      --            --            --            --            --
Due to Interstate Hotels & Resorts                                    --            --            --            --            --
Other liabilities                                                     --            --            --            --            --
                                                             -----------   -----------   -----------   -----------   -----------
                                                                     102            --            72            98            --
                                                             -----------   -----------   -----------   -----------   -----------

Minority interests                                                    --            --            --            --            --
Redeemable OP units at redemption value                               --            --            --            --            --
Partners' capital                                                  5,730         5,089        24,451        76,668          (262)
                                                             -----------   -----------   -----------   -----------   -----------
                                                                   5,832         5,089        24,523        76,766          (262)
                                                             ===========   ===========   ===========   ===========   ===========
</Table>

<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)


<Table>
<Caption>
                                                             MERISTAR SUB  MERISTAR SUB  MERISTAR SUB  MERISTAR SUB  MERISTAR SUB
                                                               7D, LLC       7G, LLC       6B, LLC       4I, L.P.      5D, LLC
                                                             ------------  ------------  ------------  ------------  ------------
<S>                                                          <C>           <C>           <C>           <C>           <C>
ASSETS
Property and equipment                                            53,422            --        11,464            --        42,262
Accumulated depreciation                                         (10,591)           --        (2,411)           --        (8,839)
                                                             -----------   -----------   -----------   -----------   -----------
                                                                  42,831            --         9,053            --        33,423

Assets held for sale                                                  --            --            --            --            --
Investments in affiliates                                             --            --            --            --        51,368
Due to/from subsidiaries                                          27,467         2,369         3,052         1,660        (6,043)
Note receivable from subsidiaries                                     --            --            --            --            --
Prepaid expenses and other assets                                    118            --           (10)           --           (49)
Accounts receivable, net of allowance for doubtful accounts          676            --            --            --            --
Restricted cash                                                       --            --            --            --            --
Cash and cash equivalents - unrestricted                              --            --            --            --            --
                                                             -----------   -----------   -----------   -----------   -----------
                                                                  71,092         2,369        12,095         1,660        78,699
                                                             ===========   ===========   ===========   ===========   ===========

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                        --            --            --            --        24,000
Notes payable to MeriStar Hospitality Corporation                     --            --            --            --            --
Accounts payable and accrued expenses                              4,611            --            (2)           --           372
Accrued interest                                                      --            --            --            --            --
Due to Interstate Hotels & Resorts                                  (200)           --            --            --            --
Other liabilities                                                     --            --            --            --            --
                                                             -----------   -----------   -----------   -----------   -----------
                                                                   4,411            --            (2)           --        24,372
                                                             -----------   -----------   -----------   -----------   -----------

Minority interests                                                    --            --            --            --            --
Redeemable OP units at redemption value                               --            --            --            --            --
Partners' capital                                                 66,681         2,369        12,097         1,660        54,327
                                                             -----------   -----------   -----------   -----------   -----------
                                                                  71,092         2,369        12,095         1,660        78,699
                                                             ===========   ===========   ===========   ===========   ===========

<Caption>

                                                             MERISTAR SUB  MERISTAR SUB     AGH        MERISTAR SUB  MERISTAR SUB
                                                               5H, LLC       7H, LLC     PSS I, INC.     2D, LLC       4F, L.P.
                                                             ------------  ------------  -----------   ------------  ------------
<S>                                                          <C>           <C>           <C>           <C>           <C>
ASSETS
Property and equipment                                                --            --            --            --        33,470
Accumulated depreciation                                              --            --            --            --        (6,361)
                                                             -----------   -----------   -----------   -----------   -----------
                                                                      --            --            --            --        27,109

Assets held for sale                                                  --            --            --            --            --
Investments in affiliates                                             --            --            --            --            --
Due to/from subsidiaries                                          36,576         9,589        25,570        (4,616)        4,992
Note receivable from subsidiaries                                     --            --            --            --            --
Prepaid expenses and other assets                                     --            --            --            --             1
Accounts receivable, net of allowance for doubtful accounts           46            --            --            --            --
Restricted cash                                                       --            --            --            --            --
Cash and cash equivalents - unrestricted                              --            --            --            --            --
                                                             -----------   -----------   -----------   -----------   -----------
                                                                  36,622         9,589        25,570        (4,616)       32,102
                                                             ===========   ===========   ===========   ===========   ===========

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                        --            --            --            --            --
Notes payable to MeriStar Hospitality Corporation                     --            --            --            --            --
Accounts payable and accrued expenses                                 --            --            --            (1)          168
Accrued interest                                                      --            --            --            --            --
Due to Interstate Hotels & Resorts                                    --            --            --            --            --
Other liabilities                                                     --            --            --            --            --
                                                             -----------   -----------   -----------   -----------   -----------
                                                                      --            --            --            (1)          168
                                                             -----------   -----------   -----------   -----------   -----------

Minority interests                                                    --            --            --            --            --
Redeemable OP units at redemption value                               --            --            --            --            --
Partners' capital                                                 36,622         9,589        25,570        (4,615)       31,934
                                                             -----------   -----------   -----------   -----------   -----------
                                                                  36,622         9,589        25,570        (4,616)       32,102
                                                             ===========   ===========   ===========   ===========   ===========
</Table>

<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)

<Table>
<Caption>

                                                             MERISTAR SUB  MERISTAR SUB  MERISTAR SUB  MERISTAR SUB  MERISTAR SUB
                                                               5K, LLC       5M, LLC       1E, L.P.      5O, LLC       4B, L.P.
                                                             ------------  ------------  ------------  ------------  ------------
<S>                                                          <C>           <C>           <C>           <C>           <C>
ASSETS
Property and equipment                                            28,635        22,103            --         8,770            --
Accumulated depreciation                                          (5,854)       (2,593)           --        (1,259)           --
                                                             -----------   -----------   -----------   -----------   -----------
                                                                  22,781        19,510            --         7,511            --

Assets held for sale                                                  --            --            --            --            --
Investments in affiliates                                             --            --            --            --            --
Due to/from subsidiaries                                            (969)        8,794        24,352         3,527         1,728
Note receivable from subsidiaries                                     --            --            --            --            --
Prepaid expenses and other assets                                   (139)          (85)           --           (28)           --
Accounts receivable, net of allowance for doubtful accounts           --            --            --            --            --
Restricted cash                                                       --            --            --            --            --
Cash and cash equivalents - unrestricted                              --            --            --            --            --
                                                             -----------   -----------   -----------   -----------   -----------
                                                                  21,673        28,219        24,352        11,010         1,728
                                                             ===========   ===========   ===========   ===========   ===========

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                        --            --            --            --            --
Notes payable to MeriStar Hospitality Corporation                     --            --            --            --            --
Accounts payable and accrued expenses                              1,548            98            --            38            --
Accrued interest                                                      --            --            --            --            --
Due to Interstate Hotels & Resorts                                    --            --            --            --            --
Other liabilities                                                     --            --            --            --            --
                                                             -----------   -----------   -----------   -----------   -----------
                                                                   1,548            98            --            38            --
                                                             -----------   -----------   -----------   -----------   -----------

Minority interests                                                    --            --            --            --            --
Redeemable OP units at redemption value                               --            --            --            --            --
Partners' capital                                                 20,125        28,121        24,352        10,972         1,728
                                                             -----------   -----------   -----------   -----------   -----------
                                                                  21,673        28,219        24,352        11,010         1,728
                                                             ===========   ===========   ===========   ===========   ===========

<Caption>

                                                             MERISTAR SUB  MERISTAR SUB  MERISTAR SUB  MERISTAR SUB  MERISTAR SUB
                                                               2C, LLC       4G, L.P.      3B, LLC       5G, L.P.      5P, LLC
                                                             ------------  ------------  ------------  ------------  ------------
<S>                                                          <C>           <C>           <C>           <C>           <C>
ASSETS
Property and equipment                                                --         8,734            --       168,326            39
Accumulated depreciation                                              --          (111)           --       (33,652)          (25)
                                                             -----------   -----------   -----------   -----------   -----------
                                                                      --         8,623            --       134,674            14

Assets held for sale                                                  --            --            --            --            --
Investments in affiliates                                             --            --            --            --            --
Due to/from subsidiaries                                          (6,612)        9,361         9,351        43,062         3,575
Note receivable from subsidiaries                                     --            --            --            --            --
Prepaid expenses and other assets                                     (7)         (170)           (3)         (206)           (7)
Accounts receivable, net of allowance for doubtful accounts            5            --            --            --            38
Restricted cash                                                       --            --            --            --            --
Cash and cash equivalents - unrestricted                              --            --            --            --            --
                                                             -----------   -----------   -----------   -----------   -----------
                                                                  (6,614)       17,814         9,348       177,530         3,620
                                                             ===========   ===========   ===========   ===========   ===========

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                        --            --            --            --            --
Notes payable to MeriStar Hospitality Corporation                     --            --            --            --            --
Accounts payable and accrued expenses                                (33)          171            22           574            --
Accrued interest                                                      --            --            --            --            --
Due to Interstate Hotels & Resorts                                    --            --            --            --            --
Other liabilities                                                     --            --            --            --            --
                                                             -----------   -----------   -----------   -----------   -----------
                                                                     (33)          171            22           574            --
                                                             -----------   -----------   -----------   -----------   -----------

Minority interests                                                    --            --            --            --            --
Redeemable OP units at redemption value                               --            --            --            --            --
Partners' capital                                                 (6,581)       17,643         9,326       176,956         3,620
                                                             -----------   -----------   -----------   -----------   -----------
                                                                  (6,614)       17,814         9,348       177,530         3,620
                                                             ===========   ===========   ===========   ===========   ===========
</Table>


<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)

<Table>
<Caption>

                                                             MERISTAR SUB  MERISTAR SUB  MERISTAR SUB  MERISTAR SUB  MERISTAR SUB
                                                              5J, LLC        5Q, LLC       5A, LLC       8D, LLC       4J, LLC
                                                             ------------  ------------  ------------  ------------  ------------
<S>                                                          <C>           <C>           <C>           <C>           <C>
ASSETS
Property and equipment                                           112,407        16,905        36,345             2        39,184
Accumulated depreciation                                         (19,626)       (2,563)      (11,218)           --        (7,759)
                                                             -----------   -----------   -----------   -----------   -----------
                                                                  92,781        14,342        25,127             2        31,425

Assets held for sale                                                  --            --            --            --            --
Investments in affiliates                                             --            --         4,627            --            --
Due to/from subsidiaries                                          24,957         5,674         7,844        16,377         7,883
Note receivable from subsidiaries                                     --            --            --            --            --
Prepaid expenses and other assets                                   (661)          (98)          (55)           --           (36)
Accounts receivable, net of allowance for doubtful accounts           --            --            --           359           (14)
Restricted cash                                                       --            --            --            --            --
Cash and cash equivalents - unrestricted                              --            --            --            --            --
                                                             -----------   -----------   -----------   -----------   -----------
                                                                 117,077        19,918        37,543        16,738        39,258
                                                             ===========   ===========   ===========   ===========   ===========

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                        --            --        23,609            --            --
Notes payable to MeriStar Hospitality Corporation                     --            --            --            --            --
Accounts payable and accrued expenses                                441            41           364            --           155
Accrued interest                                                      --            --            --            --            --
Due to Interstate Hotels & Resorts                                    --            --            --            --            --
Other liabilities                                                     --            --            --            --            --
                                                             -----------   -----------   -----------   -----------   -----------
                                                                     441            41        23,973            --           155
                                                             -----------   -----------   -----------   -----------   -----------

Minority interests                                                    --            --            --            --            --
Redeemable OP units at redemption value                               --            --            --            --            --
Partners' capital                                                116,636        19,877        13,570        16,738        39,103
                                                             -----------   -----------   -----------   -----------   -----------
                                                                 117,077        19,918        37,543        16,738        39,258
                                                             ===========   ===========   ===========   ===========   ===========

<Caption>
                                                               MERISTAR     MERISTAR      GUARANTOR
                                                               PENTAGON       HOTEL      SUBSIDIARIES                   TOTAL
                                                              CITY, LLC    LESSEE, INC.      TOTAL     ELIMINATIONS  CONSOLIDATED
                                                             ------------  ------------  ------------  ------------  ------------
<S>                                                          <C>           <C>           <C>           <C>           <C>
ASSETS
Property and equipment                                            92,807         3,316     1,138,910            --     2,633,167
Accumulated depreciation                                            (355)       (3,370)     (202,333)           --      (488,371)
                                                             -----------   -----------   -----------   -----------   -----------
                                                                  92,452           (54)      936,577            --     2,144,796

Assets held for sale                                                  --            --        12,513            --        21,826
Investments in affiliates                                             --         1,629        60,760    (2,689,392)       15,000
Due to/from subsidiaries                                          56,880        (7,653)      550,697            --            --
Note receivable from subsidiaries                                     --            --            --      (158,084)           --
Prepaid expenses and other assets                                    524        14,053        11,913            --        40,821
Accounts receivable, net of allowance for doubtful accounts           --        47,861        49,341        (4,344)       72,173
Restricted cash                                                       --         2,490         2,605            --        72,478
Cash and cash equivalents - unrestricted                              --        23,299        23,299            --       148,812
                                                             -----------   -----------   -----------   -----------   -----------
                                                                 149,856        81,625     1,647,705    (2,851,820)    2,515,906
                                                             ===========   ===========   ===========   ===========   ===========

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                    55,800       110,486       213,928      (158,084)    1,379,828
Notes payable to MeriStar Hospitality Corporation                     --            --            --            --       207,576
Accounts payable and accrued expenses                                325        61,716        74,830            --        88,073
Accrued interest                                                      --         4,344         4,344        (4,344)       41,121
Due to Interstate Hotels & Resorts                                    --         8,246         8,046            --        21,887
Other liabilities                                                     --         8,292         8,292            --        19,155
                                                             -----------   -----------   -----------   -----------   -----------
                                                                  56,125       193,084       309,440      (162,428)    1,757,640
                                                             -----------   -----------   -----------   -----------   -----------

Minority interests                                                    --            --            --            --         2,472
Redeemable OP units at redemption value                               --            --            --            --        27,533
Partners' capital                                                 93,731      (111,459)    1,338,265    (2,689,392)      728,261
                                                             -----------   -----------   -----------   -----------   -----------
                                                                 149,856        81,625     1,647,705    (2,851,820)    2,515,906
                                                             ===========   ===========   ===========   ===========   ===========
</Table>
<PAGE>
 MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
 CONDENSED CONSOLIDATING BALANCE SHEET
 DECEMBER 31, 2003
 (DOLLARS IN THOUSANDS)

<Table>
<Caption>
                                                       MERISTAR        NON-
                                                     HOSPITALITY     GUARANTOR      MERISTAR SUB    AGH UPREIT,     MERISTAR
                                                       OP, L.P.     SUBSIDIARIES       7C, LLC          LLC        SUB 5N, LLC
                                                    -------------   -------------   -------------  -------------  -------------
<S>                                                 <C>             <C>             <C>            <C>            <C>
ASSETS
Property and equipment                                     18,987       1,407,432              --             --          4,146
Accumulated depreciation                                  (13,219)       (246,091)             --             --           (679)
                                                    -------------   -------------   -------------  -------------  -------------
                                                            5,768       1,161,341              --             --          3,467

Assets held for sale                                           --           4,273              --             --             --
Investments in affiliate                                2,208,641           8,200              32          2,989             --
Due from/to subsidiaries                                 (838,258)        397,837              --            133          4,243
Note receivable from subsidiaries                         120,855              --              --             --             --
Prepaid expenses and other assets                          34,658          (1,612)             --             --            (18)
Accounts receivable, net of allowance for
 doubtful accounts                                         18,220             956              --             --             --
Restricted cash                                            39,932           2,476              --             --             --
Cash and cash equivalents - unrestricted                  218,646              --              --             --             --
                                                    -------------   -------------   -------------  -------------  -------------
                                                        1,808,462       1,573,471              32          3,122          7,692
                                                    =============   =============   =============  =============  =============

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                            917,232         436,778              --             --             --
Notes payable to MeriStar Hospitality Corporation         256,473              --              --             --             --
Accounts payable and accrued expenses                      14,806           5,517              --             --            (11)
Accrued interest                                           43,396           2,639              --             --             --
Due to Interstate Hotels & Resorts                          6,923              --              --             --             --
Other liabilities                                           1,750            (304)             --             --             --
                                                    -------------   -------------   -------------  -------------  -------------
Total liabilities                                       1,240,580         444,630              --             --            (11)
                                                    -------------   -------------   -------------  -------------  -------------

Minority interests                                          2,496              --              --             --             --
Redeemable OP units at redemption value                    35,926              --              --             --             --
Partners' capital                                         529,460       1,128,841              32          3,122          7,703
                                                    -------------   -------------   -------------  -------------  -------------
                                                        1,808,462       1,573,471              32          3,122          7,692
                                                    =============   =============   =============  =============  =============

<Caption>

                                                    MERISTAR SUB   MERISTAR SUB    MERISTAR SUB    MERISTAR SUB
                                                       8A, LLC        8F, L.P.        8G, LLC        6H, L.P.
                                                    -------------  -------------   -------------  -------------
<S>                                                 <C>            <C>             <C>            <C>
ASSETS
Property and equipment                                         --         11,502              --         10,862
Accumulated depreciation                                       --         (2,521)             --           (157)
                                                    -------------  -------------   -------------  -------------
                                                               --          8,981              --         10,705

Assets held for sale                                           --             --              --             --
Investments in affiliate                                       --             --              72             --
Due from/to subsidiaries                                       --          7,012              10          6,814
Note receivable from subsidiaries                              --             --              --             --
Prepaid expenses and other assets                              --            (28)             --              1
Accounts receivable, net of allowance for
 doubtful accounts                                             --             --              --             --
Restricted cash                                                --            115              --             --
Cash and cash equivalents - unrestricted                       --             --              --             --
                                                    -------------  -------------   -------------  -------------
                                                               --         16,080              82         17,520
                                                    =============  =============   =============  =============

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                 --             --              --             --
Notes payable to MeriStar Hospitality Corporation              --             --              --             --
Accounts payable and accrued expenses                          --             67              --            161
Accrued interest                                               --             --              --             --
Due to Interstate Hotels & Resorts                             --             --              --             --
Other liabilities                                              --             --              --             --
                                                    -------------  -------------   -------------  -------------
Total liabilities                                              --             67              --            161
                                                    -------------  -------------   -------------  -------------

Minority interests                                             --             --              --             --
Redeemable OP units at redemption value                        --             --              --             --
Partners' capital                                              --         16,013              82         17,359
                                                    -------------  -------------   -------------  -------------
                                                               --         16,080              82         17,520
                                                    =============  =============   =============  =============
</Table>



<PAGE>



MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2003
(DOLLARS IN THOUSANDS)


<Table>
<Caption>
                                                    MERISTAR SUB    MERISTAR SUB    MERISTAR SUB    MERISTAR SUB    MERISTAR SUB
                                                       8B, LLC         1C, L.P.        8E, LLC         7F, LLC         5L, LLC
                                                    -------------   -------------   -------------   -------------   -------------
<S>                                                 <C>             <C>             <C>             <C>             <C>
ASSETS
Property and equipment                                     83,215          26,641          15,493           7,293          11,841
Accumulated depreciation                                  (12,270)         (5,900)         (3,024)            (97)           (645)
                                                    -------------   -------------   -------------   -------------   -------------
                                                           70,945          20,741          12,469           7,196          11,196

Assets held for sale                                           --              --              --              --              --
Investments in affiliate                                       --              --              --              --              --
Due from/to subsidiaries                                   30,981          (3,881)          6,688           5,122           4,239
Note receivable from subsidiaries                              --              --              --              --              --
Prepaid expenses and other assets                             (26)            (88)            (10)             (1)            (24)
Accounts receivable, net of allowance for
  doubtful accounts                                            --              --              --              --              --
Restricted cash                                                --              --              --              --              --
Cash and cash equivalents - unrestricted                       --              --              --              --              --
                                                    -------------   -------------   -------------   -------------   -------------
                                                          101,900          16,772          19,147          12,317          15,411
                                                    =============   =============   =============   =============   =============

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                 --              --              --              --              --
Notes payable to MeriStar Hospitality Corporation              --              --              --              --              --
Accounts payable and accrued expenses                       2,502              88             (32)            208             (15)
Accrued interest                                               --              --              --              --              --
Due to Interstate Hotels & Resorts                             --              --              --              --              --
Other liabilities                                              --              --              --              --              --
                                                    -------------   -------------   -------------   -------------   -------------
Total liabilities                                           2,502              88             (32)            208             (15)
                                                    -------------   -------------   -------------   -------------   -------------

Minority interests                                             --              --              --              --              --
Redeemable OP units at redemption value                        --              --              --              --              --
Partners' capital                                          99,398          16,684          19,179          12,109          15,426
                                                    -------------   -------------   -------------   -------------   -------------
                                                          101,900          16,772          19,147          12,317          15,411
                                                    =============   =============   =============   =============   =============

<Caption>

                                                    MERISTAR SUB    MERISTAR SUB    MERISTAR SUB    MERISTAR SUB
                                                       3C, LLC         5R, LLC         6D, LLC         6E, LLC
                                                    -------------   -------------   -------------   -------------
<S>                                                 <C>             <C>             <C>             <C>
ASSETS
Property and equipment                                     17,498              --          17,449          45,155
Accumulated depreciation                                   (3,696)             --          (2,893)         (9,963)
                                                    -------------   -------------   -------------   -------------
                                                           13,802              --          14,556          35,192

Assets held for sale                                           --              --              --              --
Investments in affiliate                                       --              43              --              --
Due from/to subsidiaries                                    5,062             (43)          8,445          21,931
Note receivable from subsidiaries                              --              --              --              --
Prepaid expenses and other assets                              28              --              (7)            (33)
Accounts receivable, net of allowance for
  doubtful accounts                                            --              --             103              --
Restricted cash                                                --              --              --              --
Cash and cash equivalents - unrestricted                       --              --              --              --
                                                    -------------   -------------   -------------   -------------
                                                           18,892              --          23,097          57,090
                                                    =============   =============   =============   =============

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                 --              --              --              --
Notes payable to MeriStar Hospitality Corporation              --              --              --              --
Accounts payable and accrued expenses                         140              --              38            (208)
Accrued interest                                               --              --              --              --
Due to Interstate Hotels & Resorts                             --              --              --              --
Other liabilities                                              --              --              --              --
                                                    -------------   -------------   -------------   -------------
Total liabilities                                             140              --              38            (208)
                                                    -------------   -------------   -------------   -------------

Minority interests                                             --              --              --              --
Redeemable OP units at redemption value                        --              --              --              --
Partners' capital                                          18,752              --          23,059          57,298
                                                    -------------   -------------   -------------   -------------
                                                           18,892              --          23,097          57,090
                                                    =============   =============   =============   =============
</Table>


<PAGE>



MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2003
(DOLLARS IN THOUSANDS)

<Table>
<Caption>
                                                    MERISTAR SUB    MERISTAR SUB    MERISTAR SUB    MERISTAR SUB    MERISTAR SUB
                                                       4E, L.P.        1B, LLC         5F, L.P.        6G, LLC         8C, LLC
                                                    -------------   -------------   -------------   -------------   -------------
<S>                                                 <C>             <C>             <C>             <C>             <C>
ASSETS
Property and equipment                                      5,047          18,656          17,410          22,578              --
Accumulated depreciation                                      (76)         (4,064)           (198)         (5,014)             --
                                                    -------------   -------------   -------------   -------------   -------------
                                                            4,971          14,592          17,212          17,564              --

Assets held for sale                                           --              --              --              --           5,530
Investments in affiliate                                       --              --              --              --              --
Due from/to subsidiaries                                    3,545          15,375          12,431           6,988           5,557
Note receivable from subsidiaries                              --              --              --              --              --
Prepaid expenses and other assets                             (17)            (32)            (63)            (12)            117
Accounts receivable, net of allowance for
  doubtful accounts                                            --              96              --              --              --
Restricted cash                                                --              --              --              --              --
Cash and cash equivalents - unrestricted                       --              --              --              --              --
                                                    -------------   -------------   -------------   -------------   -------------
                                                            8,499          30,031          29,580          24,540          11,204
                                                    =============   =============   =============   =============   =============

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                 --              33              --              --              --
Notes payable to MeriStar Hospitality Corporation              --              --              --              --              --
Accounts payable and accrued expenses                         351              39              97             (69)           (306)
Accrued interest                                               --              --              --              --              --
Due to Interstate Hotels & Resorts                             --              --              --              --              --
Other liabilities                                              --              --              --              --              --
                                                    -------------   -------------   -------------   -------------   -------------
Total liabilities                                             351              72              97             (69)           (306)
                                                    -------------   -------------   -------------   -------------   -------------

Minority interests                                             --              --              --              --              --
Redeemable OP units at redemption value                        --              --              --              --              --
Partners' capital                                           8,148          29,959          29,483          24,609          11,510
                                                    -------------   -------------   -------------   -------------   -------------
                                                            8,499          30,031          29,580          24,540          11,204
                                                    =============   =============   =============   =============   =============

<Caption>

                                                    MERISTAR SUB   MERISTAR SUB    MERISTAR SUB    MERISTAR SUB
                                                      4C, L.P.       4H, L.P.         7E, LLC         3D, LLC
                                                    -------------  -------------   -------------   -------------
<S>                                                 <C>            <C>             <C>             <C>
ASSETS
Property and equipment                                         --          4,929          18,569          22,682
Accumulated depreciation                                       --           (130)         (3,323)         (7,036)
                                                    -------------  -------------   -------------   -------------
                                                               --          4,799          15,246          15,646

Assets held for sale                                           --             --              --              --
Investments in affiliate                                       --             --              --              --
Due from/to subsidiaries                                       --           (791)          6,367           8,459
Note receivable from subsidiaries                              --             --              --              --
Prepaid expenses and other assets                              --             (8)             (8)            (16)
Accounts receivable, net of allowance for
  doubtful accounts                                            --             --              --              --
Restricted cash                                                --             --              --              --
Cash and cash equivalents - unrestricted                       --             --              --              --
                                                    -------------  -------------   -------------   -------------
                                                               --          4,000          21,605          24,089
                                                    =============  =============   =============   =============

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                 --             --              --              --
Notes payable to MeriStar Hospitality Corporation              --             --              --              --
Accounts payable and accrued expenses                          --            178              74              30
Accrued interest                                               --             --              --              --
Due to Interstate Hotels & Resorts                             --             --              --              --
Other liabilities                                              --             --              --              --
                                                    -------------  -------------   -------------   -------------
Total liabilities                                              --            178              74              30
                                                    -------------  -------------   -------------   -------------

Minority interests                                             --             --              --              --
Redeemable OP units at redemption value                        --             --              --              --
Partners' capital                                              --          3,822          21,531          24,059
                                                    -------------  -------------   -------------   -------------
                                                               --          4,000          21,605          24,089
                                                    =============  =============   =============   =============
</Table>



<PAGE>



MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2003
(DOLLARS IN THOUSANDS)

<Table>
<Caption>
                                                                    MERISTAR SUB                                      MERISTAR
                                                    MERISTAR SUB      7A JOINT      MERISTAR SUB     MERISTAR SUB      SUB 4A,
                                                       1A, LLC        VENTURE          2B, LLC         3A, LLC           LLC
                                                    -------------   -------------   -------------   -------------   -------------
<S>                                                 <C>             <C>             <C>             <C>             <C>
ASSETS
Property and equipment                                     11,514           5,881              --           3,197              --
Accumulated depreciation                                   (2,928)           (121)             --             (51)             --
                                                    -------------   -------------   -------------   -------------   -------------
                                                            8,586           5,760              --           3,146              --

Assets held for sale                                           --              --              --              --           3,301
Investments in affiliate                                       --              --              --              --              --
Due from/to subsidiaries                                    7,330           5,021          (7,036)          1,904           4,573
Note receivable from subsidiaries                              --              --              --              --              --
Prepaid expenses and other assets                             (56)              1              --               1              (9)
Accounts receivable, net of allowance for
 doubtful accounts                                             --              --           2,345              --              --
Restricted cash                                                --              --              --              --              --
Cash and cash equivalents - unrestricted                       --              --              --              --              --
                                                    -------------   -------------   -------------   -------------   -------------
                                                           15,860          10,782          (4,691)          5,051           7,865
                                                    =============   =============   =============   =============   =============

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                 --              --              --              --              --
Notes payable to MeriStar Hospitality Corporation              --              --              --              --              --
Accounts payable and accrued expenses                         (17)            150              (8)            161             342
Accrued interest                                               --              --              --              --              --
Due to Interstate Hotels & Resorts                             --              --              --              --              --
Other liabilities                                              --              --              --              --              --
                                                    -------------   -------------   -------------   -------------   -------------
Total liabilities                                             (17)            150              (8)            161             342
                                                    -------------   -------------   -------------   -------------   -------------

Minority interests                                             --              --              --              --              --
Redeemable OP units at redemption value                        --              --              --              --              --
Partners' capital                                          15,877          10,632          (4,683)          4,890           7,523
                                                    -------------   -------------   -------------   -------------   -------------
                                                           15,860          10,782          (4,691)          5,051           7,865
                                                    =============   =============   =============   =============   =============

<Caption>

                                                    MERISTAR SUB    MERISTAR SUB    MERISTAR SUB    MDV LIMITED
                                                       4D, LLC         2A, LLC         6L, LLC      PARTNERSHIP
                                                    -------------   -------------   -------------  -------------
<S>                                                 <C>             <C>             <C>            <C>
ASSETS
Property and equipment                                         --              --              --          3,850
Accumulated depreciation                                       --              --              --           (686)
                                                    -------------   -------------   -------------  -------------
                                                               --              --              --          3,164

Assets held for sale                                           --              --          12,395             --
Investments in affiliate                                       --              --              --             --
Due from/to subsidiaries                                    2,930          (9,934)          6,238          2,538
Note receivable from subsidiaries                              --              --              --             --
Prepaid expenses and other assets                               3              --              15             (4)
Accounts receivable, net of allowance for
 doubtful accounts                                             --           2,002              --             --
Restricted cash                                                --              --              --             --
Cash and cash equivalents - unrestricted                       --              --              --             --
                                                    -------------   -------------   -------------  -------------
                                                            2,933          (7,932)         18,648          5,698
                                                    =============   =============   =============  =============

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                 --              --              --             --
Notes payable to MeriStar Hospitality Corporation              --              --              --             --
Accounts payable and accrued expenses                          --              (8)             25             96
Accrued interest                                               --              --              --             --
Due to Interstate Hotels & Resorts                             --              --              --             --
Other liabilities                                              --              --              --             --
                                                    -------------   -------------   -------------  -------------
Total liabilities                                              --              (8)             25             96
                                                    -------------   -------------   -------------  -------------

Minority interests                                             --              --              --             --
Redeemable OP units at redemption value                        --              --              --             --
Partners' capital                                           2,933          (7,924)         18,623          5,602
                                                    -------------   -------------   -------------  -------------
                                                            2,933          (7,932)         18,648          5,698
                                                    =============   =============   =============  =============
</Table>


<PAGE>



MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2003
(DOLLARS IN THOUSANDS)


<Table>
<Caption>
                                                    MERISTAR SUB   MERISTAR SUB    MERISTAR SUB    MERISTAR SUB    MERISTAR SUB
                                                       5C, LLC        6J, LLC         1D, L.P.        7B, L.P.        7D, LLC
                                                    -------------  -------------   -------------   -------------   -------------
<S>                                                 <C>            <C>             <C>             <C>             <C>
ASSETS
Property and equipment                                         --         19,530          68,709           4,806          52,417
Accumulated depreciation                                       --         (3,776)        (12,036)           (156)         (9,771)
                                                    -------------  -------------   -------------   -------------   -------------
                                                               --         15,754          56,673           4,650          42,646

Assets held for sale                                           --             --              --              --              --
Investments in affiliate                                       --             --              --              --              --
Due from/to subsidiaries                                    5,088          7,636          19,511          (3,011)         25,422
Note receivable from subsidiaries                              --             --              --              --              --
Prepaid expenses and other assets                              --             23            (209)              1             192
Accounts receivable, net of allowance for
 doubtful accounts                                             --             --              --              --           1,326
Restricted cash                                                --             --              --              --              --
Cash and cash equivalents - unrestricted                       --             --              --              --              --
                                                    -------------  -------------   -------------   -------------   -------------
                                                            5,088         23,413          75,975           1,640          69,586
                                                    =============  =============   =============   =============   =============

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                 --             --              --              --              --
Notes payable to MeriStar Hospitality Corporation              --             --              --              --              --
Accounts payable and accrued expenses                          --           (216)            (91)          1,080           4,169
Accrued interest                                               --             --              --              --              --
Due to Interstate Hotels & Resorts                             --             --              --              --            (200)
Other liabilities                                              --             --              --              --              --
                                                    -------------  -------------   -------------   -------------   -------------
Total liabilities                                              --           (216)            (91)          1,080           3,969
                                                    -------------  -------------   -------------   -------------   -------------

Minority interests                                             --             --              --              --              --
Redeemable OP units at redemption value                        --             --              --              --              --
Partners' capital                                           5,088         23,629          76,066             560          65,617
                                                    -------------  -------------   -------------   -------------   -------------
                                                            5,088         23,413          75,975           1,640          69,586
                                                    =============  =============   =============   =============   =============

<Caption>

                                                    MERISTAR SUB    MERISTAR SUB    MERISTAR SUB    MERISTAR SUB
                                                       7G, LLC         6B, LLC         4I, L.P.        5D, LLC
                                                    -------------   -------------   -------------   -------------
<S>                                                 <C>             <C>             <C>             <C>
ASSETS
Property and equipment                                      1,901          10,802              --          42,105
Accumulated depreciation                                       --          (2,188)             --          (8,102)
                                                    -------------   -------------   -------------   -------------
                                                            1,901           8,614              --          34,003

Assets held for sale                                           --              --              --              --
Investments in affiliate                                       --              --              --          51,368
Due from/to subsidiaries                                      365           3,137           1,609          (6,600)
Note receivable from subsidiaries                              --              --              --              --
Prepaid expenses and other assets                              --              (5)             --             (17)
Accounts receivable, net of allowance for
 doubtful accounts                                             --              --              --              --
Restricted cash                                                --              --              --              --
Cash and cash equivalents - unrestricted                       --              --              --              --
                                                    -------------   -------------   -------------   -------------
                                                            2,266          11,746           1,609          78,754
                                                    =============   =============   =============   =============

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                 --              --              --          24,000
Notes payable to MeriStar Hospitality Corporation              --              --              --              --
Accounts payable and accrued expenses                          (6)           (107)            (61)             12
Accrued interest                                               --              --              --              --
Due to Interstate Hotels & Resorts                             --              --              --              --
Other liabilities                                              --              --              --              --
                                                    -------------   -------------   -------------   -------------
Total liabilities                                              (6)           (107)            (61)         24,012
                                                    -------------   -------------   -------------   -------------

Minority interests                                             --              --              --              --
Redeemable OP units at redemption value                        --              --              --              --
Partners' capital                                           2,272          11,853           1,670          54,742
                                                    -------------   -------------   -------------   -------------
                                                            2,266          11,746           1,609          78,754
                                                    =============   =============   =============   =============
</Table>



<PAGE>



MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2003
(DOLLARS IN THOUSANDS)

<Table>
<Caption>
                                                    MERISTAR SUB    MERISTAR SUB       AGH         MERISTAR SUB    MERISTAR SUB
                                                       5H, LLC         7H, LLC      PSS I, INC.       2D, LLC         4F, L.P.
                                                    -------------   -------------  -------------   -------------   -------------
<S>                                                 <C>             <C>            <C>             <C>             <C>
ASSETS
Property and equipment                                         --              --             --              --          32,615
Accumulated depreciation                                       --              --             --              --          (5,809)
                                                    -------------   -------------  -------------   -------------   -------------
                                                               --              --             --              --          26,806

Assets held for sale                                           --              --             --              --              --
Investments in affiliate                                       --              --             --              --              --
Due from/to subsidiaries                                   36,579           9,567         25,579          (6,223)          5,237
Note receivable from subsidiaries                              --              --             --              --              --
Prepaid expenses and other assets                               1              --              1              --              13
Accounts receivable, net of allowance for
 doubtful accounts                                             46              43             --           1,166              --
Restricted cash                                                --              --             --              --              --
Cash and cash equivalents - unrestricted                       --              --             --              --              --
                                                    -------------   -------------  -------------   -------------   -------------
                                                           36,626           9,610         25,580          (5,057)         32,056
                                                    =============   =============  =============   =============   =============

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                 --              --             --              --              --
Notes payable to MeriStar Hospitality Corporation              --              --             --              --              --
Accounts payable and accrued expenses                          (2)             --             --              (1)            370
Accrued interest                                               --              --             --              --              --
Due to Interstate Hotels & Resorts                             --              --             --              --              --
Other liabilities                                              --              --             --              --              --
                                                    -------------   -------------  -------------   -------------   -------------
Total liabilities                                              (2)             --             --              (1)            370
                                                    -------------   -------------  -------------   -------------   -------------

Minority interests                                             --              --             --              --              --
Redeemable OP units at redemption value                        --              --             --              --              --
Partners' capital                                          36,628           9,610         25,580          (5,056)         31,686
                                                    -------------   -------------  -------------   -------------   -------------
                                                           36,626           9,610         25,580          (5,057)         32,056
                                                    =============   =============  =============   =============   =============

<Caption>

                                                    MERISTAR SUB    MERISTAR SUB    MERISTAR SUB
                                                       5K, LLC         5M, LLC         1E, L.P.
                                                    -------------   -------------   -------------
<S>                                                 <C>             <C>             <C>
ASSETS
Property and equipment                                     28,386          22,056              --
Accumulated depreciation                                   (5,206)         (2,355)             --
                                                    -------------   -------------   -------------
                                                           23,180          19,701              --

Assets held for sale                                           --              --              --
Investments in affiliate                                       --              --              --
Due from/to subsidiaries                                     (365)          7,852          24,172
Note receivable from subsidiaries                              --              --              --
Prepaid expenses and other assets                             (74)            (48)             (1)
Accounts receivable, net of allowance for
 doubtful accounts                                             --              --             198
Restricted cash                                                --              --              --
Cash and cash equivalents - unrestricted                       --              --              --
                                                    -------------   -------------   -------------
                                                           22,741          27,505          24,369
                                                    =============   =============   =============

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                 --              --              --
Notes payable to MeriStar Hospitality Corporation              --              --              --
Accounts payable and accrued expenses                       3,028              --              14
Accrued interest                                               --              --              --
Due to Interstate Hotels & Resorts                             --              --              --
Other liabilities                                              --              --              --
                                                    -------------   -------------   -------------
Total liabilities                                           3,028              --              14
                                                    -------------   -------------   -------------

Minority interests                                             --              --              --
Redeemable OP units at redemption value                        --              --              --
Partners' capital                                          19,713          27,505          24,355
                                                    -------------   -------------   -------------
                                                           22,741          27,505          24,369
                                                    =============   =============   =============
</Table>


<PAGE>



MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2003
(DOLLARS IN THOUSANDS)

<Table>
<Caption>
                                                    MERISTAR SUB    MERISTAR SUB    MERISTAR SUB    MERISTAR SUB    MERISTAR SUB
                                                       5O, LLC        4B, L.P.         2C, LLC         4G, L.P.        3B, LLC
                                                    -------------   -------------   -------------   -------------   -------------
<S>                                                 <C>             <C>             <C>             <C>             <C>
ASSETS
Property and equipment                                      8,741              --              --           9,086              --
Accumulated depreciation                                   (1,144)             --              --              --              --
                                                    -------------   -------------   -------------   -------------   -------------
                                                            7,597              --              --           9,086              --

Assets held for sale                                           --           7,158           9,415              --              --
Investments in affiliate                                       --              --              --              --              --
Due from/to subsidiaries                                    3,077          (4,789)          5,673           8,806           9,336
Note receivable from subsidiaries                              --              --              --              --              --
Prepaid expenses and other assets                             (15)             (4)           (240)            (89)             (3)
Accounts receivable, net of allowance for
 doubtful accounts                                             --              --              --              --              --
Restricted cash                                                --              --              --              --              --
Cash and cash equivalents - unrestricted                       --              --              --              --              --
                                                    -------------   -------------   -------------   -------------   -------------
                                                           10,659           2,365          14,848          17,803           9,333
                                                    =============   =============   =============   =============   =============

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                 --              --          19,731              --              --
Notes payable to MeriStar Hospitality Corporation              --              --              --              --              --
Accounts payable and accrued expenses                          (8)            410             257             488              --
Accrued interest                                               --              --              --              --              --
Due to Interstate Hotels & Resorts                             --              --              --              --              --
Other liabilities                                              --              --              --              --              --
                                                    -------------   -------------   -------------   -------------   -------------
Total liabilities                                              (8)            410          19,988             488              --
                                                    -------------   -------------   -------------   -------------   -------------

Minority interests                                             --              --              --              --              --
Redeemable OP units at redemption value                        --              --              --              --              --
Partners' capital                                          10,667           1,955          (5,140)         17,315           9,333
                                                    -------------   -------------   -------------   -------------   -------------
                                                           10,659           2,365          14,848          17,803           9,333
                                                    =============   =============   =============   =============   =============

<Caption>

                                                    MERISTAR SUB    MERISTAR SUB    MERISTAR SUB    MERISTAR SUB
                                                       5G, L.P.        5P, LLC         5J, LLC         5Q, LLC
                                                    -------------   -------------   -------------   -------------
<S>                                                 <C>             <C>             <C>             <C>
ASSETS
Property and equipment                                    164,273              39         110,406          16,737
Accumulated depreciation                                  (30,502)            (23)        (16,816)         (2,269)
                                                    -------------   -------------   -------------   -------------
                                                          133,771              16          93,590          14,468

Assets held for sale                                           --              --              --              --
Investments in affiliate                                       --              --              --              --
Due from/to subsidiaries                                   42,679           3,088          21,963           4,637
Note receivable from subsidiaries                              --              --              --              --
Prepaid expenses and other assets                            (255)             (4)           (370)            (53)
Accounts receivable, net of allowance for
 doubtful accounts                                             --              38              --              --
Restricted cash                                                --              --              --              --
Cash and cash equivalents - unrestricted                       --              --              --              --
                                                    -------------   -------------   -------------   -------------
                                                          176,195           3,138         115,183          19,052
                                                    =============   =============   =============   =============

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                 --              --              --              --
Notes payable to MeriStar Hospitality Corporation              --              --              --              --
Accounts payable and accrued expenses                         775              --             131            (189)
Accrued interest                                               --              --              --              --
Due to Interstate Hotels & Resorts                             --              --              --              --
Other liabilities                                              --              --              --              --
                                                    -------------   -------------   -------------   -------------
Total liabilities                                             775              --             131            (189)
                                                    -------------   -------------   -------------   -------------

Minority interests                                             --              --              --              --
Redeemable OP units at redemption value                        --              --              --              --
Partners' capital                                         175,420           3,138         115,052          19,241
                                                    -------------   -------------   -------------   -------------
                                                          176,195           3,138         115,183          19,052
                                                    =============   =============   =============   =============
</Table>



<PAGE>


MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2003
(DOLLARS IN THOUSANDS)

<Table>
<Caption>
                                                                                                                      GUARANTOR
                                                    MERISTAR SUB    MERISTAR SUB    MERISTAR SUB    MERISTAR HOTEL   SUBSIDIARIES
                                                       5A, LLC         8D, LLC         4J, LLC       LESSEE, INC.       TOTAL
                                                    -------------   -------------   -------------   -------------   -------------
<S>                                                 <C>             <C>             <C>             <C>             <C>
ASSETS
Property and equipment                                     35,707              --          38,463           3,146       1,055,333
Accumulated depreciation                                  (10,686)             --          (7,127)         (3,284)       (186,722)
                                                    -------------   -------------   -------------   -------------   -------------
                                                           25,021              --          31,336            (138)        868,611

Assets held for sale                                           --           9,097              --              --          46,896
Investments in affiliate                                    4,627              --              --           1,629          60,760
Due from/to subsidiaries                                    6,562           8,303           7,469            (189)        440,421
Note receivable from subsidiaries                              --              --              --              --              --
Prepaid expenses and other assets                             (29)             14             (19)         15,471          13,987
Accounts receivable, net of allowance for
 doubtful accounts                                             --              --             (13)         38,183          45,533
Restricted cash                                                --              --              --              --             115
Cash and cash equivalents - unrestricted                       --              --              --          12,230          12,230
                                                    -------------   -------------   -------------   -------------   -------------
                                                           36,181          17,414          38,773          67,186       1,488,553
                                                    =============   =============   =============   =============   =============

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                             23,609              --              --          81,027         148,400
Notes payable to MeriStar Hospitality Corporation              --              --              --              --              --
Accounts payable and accrued expenses                        (195)           (183)             81          45,862          59,691
Accrued interest                                               --              --              --             778             778
Due to Interstate Hotels & Resorts                             --              --              --           9,688           9,488
Other liabilities                                              --              --              --           9,599           9,599
                                                    -------------   -------------   -------------   -------------   -------------
Total liabilities                                          23,414            (183)             81         146,954         227,956
                                                    -------------   -------------   -------------   -------------   -------------

Minority interests                                             --              --              --              --              --
Redeemable OP units at redemption value                        --              --              --              --              --
Partners' capital                                          12,767          17,597          38,692         (79,768)      1,260,597
                                                    -------------   -------------   -------------   -------------   -------------
                                                           36,181          17,414          38,773          67,186       1,488,553
                                                    =============   =============   =============   =============   =============

<Caption>


                                                                       TOTAL
                                                    ELIMINATIONS    CONSOLIDATED
                                                    -------------   -------------
<S>                                                 <C>             <C>
ASSETS
Property and equipment                                         --       2,481,752
Accumulated depreciation                                       --        (446,032)
                                                    -------------   -------------
                                                               --       2,035,720

Assets held for sale                                           --          51,169
Investments in affiliate                               (2,262,601)         15,000
Due from/to subsidiaries                                       --              --
Note receivable from subsidiaries                        (120,855)             --
Prepaid expenses and other assets                              --          47,033
Accounts receivable, net of allowance for
 doubtful accounts                                             --          64,709
Restricted cash                                                --          42,523
Cash and cash equivalents - unrestricted                       --         230,876
                                                    -------------   -------------
                                                       (2,383,456)      2,487,030
                                                    =============   =============

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                           (120,855)      1,381,555
Notes payable to MeriStar Hospitality Corporation              --         256,473
Accounts payable and accrued expenses                          --          80,014
Accrued interest                                               --          46,813
Due to Interstate Hotels & Resorts                             --          16,411
Other liabilities                                              --          11,045
                                                    -------------   -------------
Total liabilities                                        (120,855)      1,792,311
                                                    -------------   -------------

Minority interests                                             --           2,496
Redeemable OP units at redemption value                        --          35,926
Partners' capital                                      (2,262,601)        656,297
                                                    -------------   -------------
                                                       (2,383,456)      2,487,030
                                                    =============   =============
</Table>

<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)

<Table>
<Caption>
                                                       MERISTAR          NON-
                                                     HOSPITALITY      GUARANTOR     MERISTAR SUB    AGH UPREIT,   MERISTAR SUB
                                                       OP, L.P.     SUBSIDIARIES       7C, LLC          LLC          5N, LLC
                                                    -------------   -------------   -------------  -------------  -------------
<S>                                                 <C>             <C>             <C>            <C>            <C>
 Revenue:
    Hotel operations:
       Rooms                                                   --              --              --             --             --
       Food and beverage                                       --              --              --             --             --
       Other hotel operations                                  --              --              --             --             --
    Office rental, parking and other revenue                1,623             662              --             --             --
 Participating lease revenue                                   --          33,509              --             --            211
                                                    -------------   -------------   -------------  -------------  -------------
Total revenue                                               1,623          34,171              --             --            211
                                                    -------------   -------------   -------------  -------------  -------------
Hotel operating expenses:
       Rooms                                                   --              --              --             --             --
       Food and beverage                                       --              --              --             --             --
       Other hotel operating expenses                          --              --              --             --             --
    Office rental, parking and other expenses                  --             271              --             --             --
Other operating expenses:
       General and administrative, hotel                       --              23              --             --             --
       General and administrative, corporate                3,185              --              --             --             --
       Property operating costs                                --              --              --             --             --
       Depreciation and amortization                        2,860          12,437              --             --             35
       Property taxes, insurance and other                   (356)          4,738              --             --             24
       Loss on asset impairments                               --             310              --             --             --
                                                    -------------   -------------   -------------  -------------  -------------
Operating expenses                                          5,689          17,779              --             --             59
                                                    -------------   -------------   -------------  -------------  -------------
 Operating income (loss)                                   (4,066)         16,392              --             --            152
                                                    -------------   -------------   -------------  -------------  -------------
 Minority interest                                             20              --              --             --             --
 Interest expense, net                                    (18,895)         (7,887)             --             --             --
 Loss on early extinguishments of debt                     (1,980)             --              --             --             --
 Equity in income from consolidated entities               12,880              --              --             --             --
                                                    -------------   -------------   -------------  -------------  -------------
 (Loss) income before income taxes and
    discontinued operations                               (12,041)          8,505              --             --            152

 Income tax (expense) benefit                                 (25)             --              --             --             --
                                                    -------------   -------------   -------------  -------------  -------------
 (Loss) income from continuing operations                 (12,066)          8,505              --             --            152

 Discontinued operations:
 (Loss) income from discontinued operations
   before income tax                                          (30)          1,569              --             --             --
   Income tax (expense) benefit                                45              --              --             --             --
                                                    -------------   -------------   -------------  -------------  -------------
  (Loss) income from discontinued operations                   15           1,569              --             --             --
                                                    -------------   -------------   -------------  -------------  -------------
 Net (loss) income                                        (12,051)         10,074              --             --            152
                                                    =============   =============   =============  =============  =============

<Caption>

                                                    MERISTAR SUB   MERISTAR SUB   MERISTAR SUB   MERISTAR SUB
                                                       8A, LLC        8F, L.P.       8G, LLC       6H, L.P.
                                                    -------------  -------------  -------------  -------------
<S>                                                 <C>            <C>            <C>            <C>
 Revenue:
    Hotel operations:
       Rooms                                                   --             --             --             --
       Food and beverage                                       --             --             --             --
       Other hotel operations                                  --             --             --             --
    Office rental, parking and other revenue                   --             --             --             --
 Participating lease revenue                                   --            601             --            373
                                                    -------------  -------------  -------------  -------------
Total revenue                                                  --            601             --            373
                                                    -------------  -------------  -------------  -------------
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                           --            165             --            156
       Property taxes, insurance and other                     --            182             --             26
       Loss on asset impairments                               --             --             --             --
                                                    -------------  -------------  -------------  -------------
Operating expenses                                             --            347             --            182
                                                    -------------  -------------  -------------  -------------
 Operating income (loss)                                       --            254             --            191
                                                    -------------  -------------  -------------  -------------
 Minority interest                                             --             --             --             --
 Interest expense, net                                         --             --             --             --
 Loss on early extinguishments of debt                         --             --             --             --
 Equity in income from consolidated entities                   --             --             --             --
                                                    -------------  -------------  -------------  -------------
 (Loss) income before income taxes and
    discontinued operations                                    --            254             --            191

 Income tax (expense) benefit                                  --             --             --             --
                                                    -------------  -------------  -------------  -------------
 (Loss) income from continuing operations                      --            254             --            191

 Discontinued operations:
 (Loss) income from discontinued operations
   before income tax                                           --             --             --             --
   Income tax (expense) benefit                                --             --             --             --
                                                    -------------  -------------  -------------  -------------
  (Loss) income from discontinued operations                   --             --             --             --
                                                    -------------  -------------  -------------  -------------
 Net (loss) income                                             --            254             --            191
                                                    =============  =============  =============  =============
</Table>


<PAGE>


MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)

<Table>
<Caption>
                                                    MERISTAR SUB   MERISTAR SUB    MERISTAR SUB   MERISTAR SUB   MERISTAR SUB
                                                       8B, LLC        1C, L.P.        8E, LLC        7F, LLC        5L, LLC
                                                    -------------  -------------   -------------  -------------  -------------
<S>                                                 <C>            <C>             <C>            <C>            <C>
 Revenue:
    Hotel operations:
       Rooms                                                   --             --              --             --             --
       Food and beverage                                       --             --              --             --             --
       Other hotel operations                                  --             --              --             --             --
    Office rental, parking and other revenue                   --             --               7             --             --
 Participating lease revenue                                1,863            304             371            305            253
                                                    -------------  -------------   -------------  -------------  -------------
Total revenue                                               1,863            304             378            305            253
                                                    -------------  -------------   -------------  -------------  -------------
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                          602            341             149             73             39
       Property taxes, insurance and other                    250            169              22             32             36
       Loss on asset impairments                               --             --              --             --             --
                                                    -------------  -------------   -------------  -------------  -------------
Operating expenses                                            852            510             171            105             75
                                                    -------------  -------------   -------------  -------------  -------------
 Operating income (loss)                                    1,011           (206)            207            200            178
                                                    -------------  -------------   -------------  -------------  -------------
 Minority interest                                             --             --              --             --             --
 Interest expense, net                                         --             --              --             --             --
 Loss on early extinguishments of debt                         --             --              --             --             --
 Equity in income from consolidated entities                   --             --              --             --             --
                                                    -------------  -------------   -------------  -------------  -------------
 (Loss) income before income taxes and
    discontinued operations                                 1,011           (206)            207            200            178
 Income tax (expense) benefit                                  --             --              --             --             --
                                                    -------------  -------------   -------------  -------------  -------------
 (Loss) income from continuing operations                   1,011           (206)            207            200            178

 Discontinued operations:
 (Loss) income from discontinued operations
   before income tax                                           --             --              --             --             --
   Income tax (expense) benefit                                --             --              --             --             --
                                                    -------------  -------------   -------------  -------------  -------------
  (Loss) income from discontinued operations                   --             --              --             --             --
                                                    -------------  -------------   -------------  -------------  -------------
 Net (loss) income                                          1,011           (206)            207            200            178
                                                    =============  =============   =============  =============  =============


<Caption>

                                                    MERISTAR SUB   MERISTAR SUB   MERISTAR SUB   MERISTAR SUB
                                                      3C, LLC        5R, LLC        6D, LLC        6E, LLC
                                                    -------------  -------------  -------------  -------------
<S>                                                 <C>            <C>            <C>            <C>
 Revenue:
    Hotel operations:
       Rooms                                                   --             --             --             --
       Food and beverage                                       --             --             --             --
       Other hotel operations                                  --             --             --             --
    Office rental, parking and other revenue                   --             --             41             --
 Participating lease revenue                                  432             --            582          1,594
                                                    -------------  -------------  -------------  -------------
Total revenue                                                 432             --            623          1,594
                                                    -------------  -------------  -------------  -------------
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             --            136            415
       Property taxes, insurance and other                     93             --             74            135
       Loss on asset impairments                               --             --             --             --
                                                    -------------  -------------  -------------  -------------
Operating expenses                                            271             --            210            550
                                                    -------------  -------------  -------------  -------------
 Operating income (loss)                                      161             --            413          1,044
                                                    -------------  -------------  -------------  -------------
 Minority interest                                             --             --             --             --
 Interest expense, net                                         --             --             --             --
 Loss on early extinguishments of debt                         --             --             --             --
 Equity in income from consolidated entities                   --             --             --             --
                                                    -------------  -------------  -------------  -------------
 (Loss) income before income taxes and
    discontinued operations                                   161             --            413          1,044
 Income tax (expense) benefit                                  --             --             --             --
                                                    -------------  -------------  -------------  -------------
 (Loss) income from continuing operations                     161             --            413          1,044

 Discontinued operations:
 (Loss) income from discontinued operations
   before income tax                                           --             --             --             --
   Income tax (expense) benefit                                --             --             --             --
                                                    -------------  -------------  -------------  -------------
  (Loss) income from discontinued operations                   --             --             --             --
                                                    -------------  -------------  -------------  -------------
 Net (loss) income                                            161             --            413          1,044
                                                    =============  =============  =============  =============
</Table>


<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)

<Table>
<Caption>
                                                    MERISTAR SUB    MERISTAR SUB    MERISTAR SUB   MERISTAR SUB   MERISTAR SUB
                                                      4E, L.P.         1B, LLC        5F, L.P.        6G, LLC        8C, LLC
                                                    -------------   -------------   -------------  -------------  -------------
<S>                                                 <C>             <C>             <C>            <C>            <C>
 Revenue:
    Hotel operations:
       Rooms                                                   --              --              --             --             --
       Food and beverage                                       --              --              --             --             --
       Other hotel operations                                  --              --              --             --             --
    Office rental, parking and other revenue                    2              (4)             --             --             --
 Participating lease revenue                                  360             519             737          1,084             --
                                                    -------------   -------------   -------------  -------------  -------------
Total revenue                                                 362             515             737          1,084             --
                                                    -------------   -------------   -------------  -------------  -------------
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                           73             121             195            153             --
       Property taxes, insurance and other                    194               8              89             92             --
       Loss on asset impairments                              981              --              --             --             --
                                                    -------------   -------------   -------------  -------------  -------------
Operating expenses                                          1,248             129             284            245             --
                                                    -------------   -------------   -------------  -------------  -------------
 Operating income (loss)                                     (886)            386             453            839             --
                                                    -------------   -------------   -------------  -------------  -------------
 Minority interest                                             --              --              --             --             --
 Interest expense, net                                         --              --              --             --             --
 Loss on early extinguishments of debt                         --              --              --             --             --
 Equity in income from consolidated entities                   --              --              --             --             --
                                                    -------------   -------------   -------------  -------------  -------------
 (Loss) income before income taxes and
    discontinued operations                                  (886)            386             453            839             --

 Income tax (expense) benefit                                  --              --              --             --             --
                                                    -------------   -------------   -------------  -------------  -------------
 (Loss) income from continuing operations                    (886)            386             453            839             --

 Discontinued operations:
 (Loss) income from discontinued operations
   before income tax                                           --              --              --             --            142
   Income tax (expense) benefit                                --              --              --             --             --
                                                    -------------   -------------   -------------  -------------  -------------
  (Loss) income from discontinued operations                   --              --              --             --            142
                                                    -------------   -------------   -------------  -------------  -------------
 Net (loss) income                                           (886)            386             453            839            142
                                                    =============   =============   =============  =============  =============

<Caption>

                                                    MERISTAR SUB   MERISTAR SUB   MERISTAR SUB   MERISTAR SUB
                                                      4C, L.P.       4H, L.P.       7E, LLC        3D, LLC
                                                    -------------  -------------  -------------  -------------
<S>                                                 <C>            <C>            <C>            <C>
 Revenue:
    Hotel operations:
       Rooms                                                   --             --             --             --
       Food and beverage                                       --             --             --             --
       Other hotel operations                                  --             --             --             --
    Office rental, parking and other revenue                   --             --             --             --
 Participating lease revenue                                   --             --            344            378
                                                    -------------  -------------  -------------  -------------
Total revenue                                                  --             --            344            378
                                                    -------------  -------------  -------------  -------------
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                           --             --            161            190
       Property taxes, insurance and other                     --             --             48             61
       Loss on asset impairments                               --             --             --             --
                                                    -------------  -------------  -------------  -------------
Operating expenses                                             --             --            209            251
                                                    -------------  -------------  -------------  -------------
 Operating income (loss)                                       --             --            135            127
                                                    -------------  -------------  -------------  -------------
 Minority interest                                             --             --             --             --
 Interest expense, net                                         --             --             --             --
 Loss on early extinguishments of debt                         --             --             --             --
 Equity in income from consolidated entities                   --             --             --             --
                                                    -------------  -------------  -------------  -------------
 (Loss) income before income taxes and
    discontinued operations                                    --             --            135            127

 Income tax (expense) benefit                                  --             --             --             --
                                                    -------------  -------------  -------------  -------------
 (Loss) income from continuing operations                      --             --            135            127

 Discontinued operations:
 (Loss) income from discontinued operations
   before income tax                                           --             --             --             --
   Income tax (expense) benefit                                --             --             --             --
                                                    -------------  -------------  -------------  -------------
  (Loss) income from discontinued operations                   --             --             --             --
                                                    -------------  -------------  -------------  -------------
 Net (loss) income                                             --             --            135            127
                                                    =============  =============  =============  =============
</Table>


<PAGE>


MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)

<Table>
<Caption>
                                                                    MERISTAR SUB
                                                    MERISTAR SUB      7A JOINT      MERISTAR SUB   MERISTAR SUB   MERISTAR SUB
                                                      1A, LLC         VENTURE          2B, LLC        3A, LLC        4A, LLC
                                                    -------------   -------------   -------------  -------------  -------------
<S>                                                 <C>             <C>             <C>            <C>            <C>
 Revenue:
    Hotel operations:
       Rooms                                                   --              --              --             --             --
       Food and beverage                                       --              --              --             --             --
       Other hotel operations                                  --              --              --             --             --
    Office rental, parking and other revenue                   --              --              --             --             --
 Participating lease revenue                                   --              --              --             --             --
                                                    -------------   -------------   -------------  -------------  -------------
Total revenue                                                  --              --              --             --             --
                                                    -------------   -------------   -------------  -------------  -------------
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                           --              --              --             --             --
       Property taxes, insurance and other                     --              --              --             --             --
       Loss on asset impairments                               --              --              --             --             --
                                                    -------------   -------------   -------------  -------------  -------------
Operating expenses                                             --              --              --             --             --
                                                    -------------   -------------   -------------  -------------  -------------
 Operating income (loss)                                       --              --              --             --             --
                                                    -------------   -------------   -------------  -------------  -------------
 Minority interest                                             --              --              --             --             --
 Interest expense, net                                         --              --              --             --             --
 Loss on early extinguishments of debt                         --              --              --             --             --
 Equity in income from consolidated entities                   --              --              --             --             --
                                                    -------------   -------------   -------------  -------------  -------------
 (Loss) income before income taxes and
    discontinued operations                                    --              --              --             --             --

 Income tax (expense) benefit                                  --              --              --             --             --
                                                    -------------   -------------   -------------  -------------  -------------
 (Loss) income from continuing operations                      --              --              --             --             --

 Discontinued operations:
 (Loss) income from discontinued operations
   before income tax                                         (149)            (49)             --             --              1
   Income tax (expense) benefit                                --              --              --             --             --
                                                    -------------   -------------   -------------  -------------  -------------
  (Loss) income from discontinued operations                 (149)            (49)             --             --              1
                                                    -------------   -------------   -------------  -------------  -------------
 Net (loss) income                                           (149)            (49)             --             --              1
                                                    =============   =============   =============  =============  =============

<Caption>

                                                    MERISTAR SUB    MERISTAR SUB  MERISTAR SUB    MDV LIMITED
                                                      4D, LLC         2A, LLC        6L, LLC      PARTNERSHIP
                                                    -------------  -------------  -------------  -------------
<S>                                                 <C>            <C>            <C>            <C>
 Revenue:
    Hotel operations:
       Rooms                                                   --             --             --             --
       Food and beverage                                       --             --             --             --
       Other hotel operations                                  --             --             --             --
    Office rental, parking and other revenue                   --             --             --             --
 Participating lease revenue                                   --             --             --            133
                                                    -------------  -------------  -------------  -------------
Total revenue                                                  --             --             --            133
                                                    -------------  -------------  -------------  -------------
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                           --             --             --             47
       Property taxes, insurance and other                     --             --             --             34
       Loss on asset impairments                               --             --             --             --
                                                    -------------  -------------  -------------  -------------
Operating expenses                                             --             --             --             81
                                                    -------------  -------------  -------------  -------------
 Operating income (loss)                                       --             --             --             52
                                                    -------------  -------------  -------------  -------------
 Minority interest                                             --             --             --             --
 Interest expense, net                                         --             --             --             --
 Loss on early extinguishments of debt                         --             --             --             --
 Equity in income from consolidated entities                   --             --             --             --
                                                    -------------  -------------  -------------  -------------
 (Loss) income before income taxes and
    discontinued operations                                    --             --             --             52

 Income tax (expense) benefit                                  --             --             --             --
                                                    -------------  -------------  -------------  -------------
 (Loss) income from continuing operations                      --             --             --             52

 Discontinued operations:
 (Loss) income from discontinued operations
   before income tax                                           --             --             --             --
   Income tax (expense) benefit                                --             --             --             --
                                                    -------------  -------------  -------------  -------------
  (Loss) income from discontinued operations                   --             --             --             --
                                                    -------------  -------------  -------------  -------------
 Net (loss) income                                             --             --             --             52
                                                    =============  =============  =============  =============
</Table>


<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)

<Table>
<Caption>
                                                    MERISTAR SUB    MERISTAR SUB  MERISTAR SUB   MERISTAR SUB    MERISTAR SUB
                                                       5C, LLC        6J, LLC       1D, L.P.       7B, L.P.        7D, LLC
                                                    -------------  -------------  -------------  -------------   -------------
<S>                                                 <C>            <C>            <C>            <C>             <C>
 Revenue:
    Hotel operations:
       Rooms                                                   --             --             --             --              --
       Food and beverage                                       --             --             --             --              --
       Other hotel operations                                  --             --             --             --              --
    Office rental, parking and other revenue                   --             --             55             --             274
 Participating lease revenue                                   --            754          1,124             --           1,474
                                                    -------------  -------------  -------------  -------------   -------------
Total revenue                                                  --            754          1,179             --           1,748
                                                    -------------  -------------  -------------  -------------   -------------
Hotel operating expenses:
       Rooms                                                   --             --             --             --              --
       Food and beverage                                       --             --             --             --              --
       Other hotel operating expenses                          --             --             --             --              --
    Office rental, parking and other expenses                  --             --             35             --             216
Other operating expenses:
       General and administrative, hotel                       --             --             --             --              --
       General and administrative, corporate                   --             --             --             --              --
       Property operating costs                                --             --             --             --              --
       Depreciation and amortization                           --            140            567             --             431
       Property taxes, insurance and other                     --             71            389             --             647
       Loss on asset impairments                               --             --             --             --              --
                                                    -------------  -------------  -------------  -------------   -------------
Operating expenses                                             --            211            991             --           1,294
                                                    -------------  -------------  -------------  -------------   -------------
 Operating income (loss)                                       --            543            188             --             454
                                                    -------------  -------------  -------------  -------------   -------------
 Minority interest                                             --             --             --             --              --
 Interest expense, net                                         --             --             --             --              --
 Loss on early extinguishments of debt                         --             --             --             --              --
 Equity in income from consolidated entities                   --             --             --             --              --
                                                    -------------  -------------  -------------  -------------   -------------
 (Loss) income before income taxes and
    discontinued operations                                    --            543            188             --             454

 Income tax (expense) benefit                                  --             --             --             --              --
                                                    -------------  -------------  -------------  -------------   -------------
 (Loss) income from continuing operations                      --            543            188             --             454

 Discontinued operations:
 (Loss) income from discontinued operations
   before income tax                                           --             --             --           (503)             --
   Income tax (expense) benefit                                --             --             --             --              --
                                                    -------------  -------------  -------------  -------------   -------------
  (Loss) income from discontinued operations                   --             --             --           (503)             --
                                                    -------------  -------------  -------------  -------------   -------------
 Net (loss) income                                             --            543            188           (503)            454
                                                    =============  =============  =============  =============   =============

<Caption>
                                                    MERISTAR SUB    MERISTAR SUB  MERISTAR SUB   MERISTAR SUB
                                                       7G, LLC        6B, LLC       4I, L.P.        5D, LLC
                                                    -------------  -------------  -------------  -------------
<S>                                                 <C>            <C>            <C>            <C>
 Revenue:
    Hotel operations:
       Rooms                                                   --             --             --             --
       Food and beverage                                       --             --             --             --
       Other hotel operations                                  --             --             --             --
    Office rental, parking and other revenue                   --             --             --             --
 Participating lease revenue                                   --            356             --            642
                                                    -------------  -------------  -------------  -------------
Total revenue                                                  --            356             --            642
                                                    -------------  -------------  -------------  -------------
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                           --            112             --            369
       Property taxes, insurance and other                     --             54             --             49
       Loss on asset impairments                               --             --             --             --
                                                    -------------  -------------  -------------  -------------
Operating expenses                                             --            166             --            418
                                                    -------------  -------------  -------------  -------------
 Operating income (loss)                                       --            190             --            224
                                                    -------------  -------------  -------------  -------------
 Minority interest                                             --             --             --             --
 Interest expense, net                                         --             --             --           (340)
 Loss on early extinguishments of debt                         --             --             --             --
 Equity in income from consolidated entities                   --             --             --             --
                                                    -------------  -------------  -------------  -------------
 (Loss) income before income taxes and
    discontinued operations                                    --            190             --           (116)

 Income tax (expense) benefit                                  --             --             --             --
                                                    -------------  -------------  -------------  -------------
 (Loss) income from continuing operations                      --            190             --           (116)

 Discontinued operations:
 (Loss) income from discontinued operations
   before income tax                                           56             --             --             --
   Income tax (expense) benefit                                --             --             --             --
                                                    -------------  -------------  -------------  -------------
  (Loss) income from discontinued operations                   56             --             --             --
                                                    -------------  -------------  -------------  -------------
 Net (loss) income                                             56            190             --           (116)
                                                    =============  =============  =============  =============
</Table>


<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)

<Table>
<Caption>
                                                     MERISTAR SUB  MERISTAR SUB    AGH PSS I,    MERISTAR SUB   MERISTAR SUB
                                                       5H, LLC        7H, LLC         INC.         2D, LLC         4F, L.P.
                                                    -------------  -------------  -------------  -------------  -------------
<S>                                                 <C>            <C>            <C>            <C>            <C>
 Revenue:
    Hotel operations:
       Rooms                                                   --             --             --             --             --
       Food and beverage                                       --             --             --             --             --
       Other hotel operations                                  --             --             --             --             --
    Office rental, parking and other revenue                   --             --             --             --              6
 Participating lease revenue                                   --             --             --             --            492
                                                    -------------  -------------  -------------  -------------  -------------
Total revenue                                                  --             --             --             --            498
                                                    -------------  -------------  -------------  -------------  -------------
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                           --             --             --             --            275
       Property taxes, insurance and other                     --             --             --             --             98
       Loss on asset impairments                               --             --             --             --             --
                                                    -------------  -------------  -------------  -------------  -------------
Operating expenses                                             --             --             --             --            373
                                                    -------------  -------------  -------------  -------------  -------------
 Operating income (loss)                                       --             --             --             --            125
                                                    -------------  -------------  -------------  -------------  -------------
 Minority interest                                             --             --             --             --             --
 Interest expense, net                                         --             --             --             --             --
 Loss on early extinguishments of debt                         --             --             --             --             --
 Equity in income from consolidated entities                   --             --             --             --             --
                                                    -------------  -------------  -------------  -------------  -------------
 (Loss) income before income taxes and
    discontinued operations                                    --             --             --             --            125

 Income tax (expense) benefit                                  --             --             --             --             --
                                                    -------------  -------------  -------------  -------------  -------------
 (Loss) income from continuing operations                      --             --             --             --            125

 Discontinued operations:
 (Loss) income from discontinued operations
   before income tax                                           --             --             --             --             --
   Income tax (expense) benefit                                --             --             --             --             --
                                                    -------------  -------------  -------------  -------------  -------------
  (Loss) income from discontinued operations                   --             --             --             --             --
                                                    -------------  -------------  -------------  -------------  -------------
 Net (loss) income                                             --             --             --             --            125
                                                    =============  =============  =============  =============  =============

<Caption>
                                                    MERISTAR SUB   MERISTAR SUB   MERISTAR SUB   MERISTAR SUB
                                                       5K, LLC        5M, LLC        1E, L.P.      5O, LLC
                                                    -------------  -------------  -------------  -------------
<S>                                                 <C>            <C>            <C>            <C>
 Revenue:
    Hotel operations:
       Rooms                                                   --             --             --             --
       Food and beverage                                       --             --             --             --
       Other hotel operations                                  --             --             --             --
    Office rental, parking and other revenue                   --             --             --             --
 Participating lease revenue                                  577            422             --            210
                                                    -------------  -------------  -------------  -------------
Total revenue                                                 577            422             --            210
                                                    -------------  -------------  -------------  -------------
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                          324            120             --             57
       Property taxes, insurance and other                     88             64             --             25
       Loss on asset impairments                               --             --             --             --
                                                    -------------  -------------  -------------  -------------
Operating expenses                                            412            184             --             82
                                                    -------------  -------------  -------------  -------------
 Operating income (loss)                                      165            238             --            128
                                                    -------------  -------------  -------------  -------------
 Minority interest                                             --             --             --             --
 Interest expense, net                                         --             --             --             --
 Loss on early extinguishments of debt                         --             --             --             --
 Equity in income from consolidated entities                   --             --             --             --
                                                    -------------  -------------  -------------  -------------
 (Loss) income before income taxes and
    discontinued operations                                   165            238             --            128

 Income tax (expense) benefit                                  --             --             --             --
                                                    -------------  -------------  -------------  -------------
 (Loss) income from continuing operations                     165            238             --            128

 Discontinued operations:
 (Loss) income from discontinued operations
   before income tax                                           --             --             --             --
   Income tax (expense) benefit                                --             --             --             --
                                                    -------------  -------------  -------------  -------------
  (Loss) income from discontinued operations                   --             --             --             --
                                                    -------------  -------------  -------------  -------------
 Net (loss) income                                            165            238             --            128
                                                    =============  =============  =============  =============
</Table>

<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)

<Table>
<Caption>
                                                     MERISTAR SUB   MERISTAR SUB    MERISTAR SUB   MERISTAR SUB   MERISTAR SUB
                                                       4B, L.P.        2C, LLC        4G, L.P.        3B, LLC        5G, L.P.
                                                    -------------   -------------   -------------  -------------  -------------
<S>                                                 <C>             <C>             <C>            <C>            <C>
 Revenue:
    Hotel operations:
       Rooms                                                   --              --              --             --             --
       Food and beverage                                       --              --              --             --             --
       Other hotel operations                                  --              --              --             --             --
    Office rental, parking and other revenue                   --              --              --             --              7
 Participating lease revenue                                   --              --             489             --          2,444
                                                    -------------   -------------   -------------  -------------  -------------
Total revenue                                                  --              --             489             --          2,451
                                                    -------------   -------------   -------------  -------------  -------------
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                           --              --             111             --          1,578
       Property taxes, insurance and other                     --              --             122             --            393
       Loss on asset impairments                               --              --              --             --             --
                                                    -------------   -------------   -------------  -------------  -------------
Operating expenses                                             --              --             233             --          1,971
                                                    -------------   -------------   -------------  -------------  -------------
 Operating income (loss)                                       --              --             256             --            480
                                                    -------------   -------------   -------------  -------------  -------------
 Minority interest                                             --              --              --             --             --
 Interest expense, net                                         --              --              --             --             --
 Loss on early extinguishments of debt                         --              --              --             --             --
 Equity in income from consolidated entities                   --              --              --             --             --
 (Loss) income before income taxes and
                                                    -------------   -------------   -------------  -------------  -------------
    discontinued operations                                    --              --             256             --            480

 Income tax (expense) benefit                                  --              --              --             --             --
                                                    -------------   -------------   -------------  -------------  -------------
 (Loss) income from continuing operations                      --              --             256             --            480

 Discontinued operations:
 (Loss) income from discontinued operations
   before income tax                                           (1)           (667)             --             --             --
   Income tax (expense) benefit                                --              --              --             --             --
                                                    -------------   -------------   -------------  -------------  -------------
  (Loss) income from discontinued operations                   (1)           (667)             --             --             --
                                                    -------------   -------------   -------------  -------------  -------------
 Net (loss) income                                             (1)           (667)            256             --            480
                                                    =============   =============   =============  =============  =============

<Caption>
                                                    MERISTAR SUB   MERISTAR SUB   MERISTAR SUB   MERISTAR SUB
                                                       5P, LLC       5J, LLC         5Q, LLC        5A, LLC
                                                    -------------  -------------  -------------  -------------
<S>                                                 <C>            <C>            <C>            <C>
 Revenue:
    Hotel operations:
       Rooms                                                   --             --             --             --
       Food and beverage                                       --             --             --             --
       Other hotel operations                                  --             --             --             --
    Office rental, parking and other revenue                   --             --             --             24
 Participating lease revenue                                  321          2,611            516          1,484
                                                    -------------  -------------  -------------  -------------
Total revenue                                                 321          2,611            516          1,508
                                                    -------------  -------------  -------------  -------------
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                            1          1,395            154            263
       Property taxes, insurance and other                      1            498             97            201
       Loss on asset impairments                               --             --             --             --
                                                    -------------  -------------  -------------  -------------
Operating expenses                                              2          1,893            251            464
                                                    -------------  -------------  -------------  -------------
 Operating income (loss)                                      319            718            265          1,044
                                                    -------------  -------------  -------------  -------------
 Minority interest                                             --             --             --             --
 Interest expense, net                                         --             --             --           (709)
 Loss on early extinguishments of debt                         --             --             --             --
 Equity in income from consolidated entities                   --             --             --             --
 (Loss) income before income taxes and
                                                    -------------  -------------  -------------  -------------
    discontinued operations                                   319            718            265            335

 Income tax (expense) benefit                                  --             --             --             --
                                                    -------------  -------------  -------------  -------------
 (Loss) income from continuing operations                     319            718            265            335

 Discontinued operations:
 (Loss) income from discontinued operations
   before income tax                                           --             --             --             --
   Income tax (expense) benefit                                --             --             --             --
                                                    -------------  -------------  -------------  -------------
  (Loss) income from discontinued operations                   --             --             --             --
                                                    -------------  -------------  -------------  -------------
 Net (loss) income                                            319            718            265            335
                                                    =============  =============  =============  =============
</Table>


<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)

<Table>
<Caption>
                                                                                   MERISTAR         MERISTAR        GUARANTOR
                                                    MERISTAR SUB   MERISTAR SUB     PENTAGON      HOTEL LESSEE,    SUBSIDIARIES
                                                       8D, LLC        4J, LLC       CITY, LLC          INC.            TOTAL
                                                    -------------  -------------  -------------   -------------   -------------
<S>                                                 <C>            <C>            <C>             <C>             <C>
 Revenue:
    Hotel operations:
       Rooms                                                   --             --             --         143,156         143,156
       Food and beverage                                       --             --             --          59,442          59,442
       Other hotel operations                                  --             --             --          17,362          17,362
    Office rental, parking and other revenue                   --             72             --             160             644
 Participating lease revenue                                   --            699          1,406              --          26,465
                                                    -------------  -------------  -------------   -------------   -------------
Total revenue                                                  --            771          1,406         220,120         247,069
                                                    -------------  -------------  -------------   -------------   -------------
Hotel operating expenses:
       Rooms                                                   --             --             --          35,046          35,046
       Food and beverage                                       --             --             --          41,739          41,739
       Other hotel operating expenses                          --             --             --          10,864          10,864
    Office rental, parking and other expenses                  --            148             --              --             399
Other operating expenses:
       General and administrative, hotel                       --             --              4          31,983          31,987
       General and administrative, corporate                   --             --             --             288             288
       Property operating costs                                --             --             --          31,909          31,909
       Depreciation and amortization                           --            317            355              42           9,840
       Property taxes, insurance and other                     --             81            177          66,974          71,598
       Loss on asset impairments                               --             --             --              --             981
                                                    -------------  -------------  -------------   -------------   -------------
Operating expenses                                             --            546            536         218,845         234,651
                                                    -------------  -------------  -------------   -------------   -------------
 Operating income (loss)                                       --            225            870           1,275          12,418
                                                    -------------  -------------  -------------   -------------   -------------
 Minority interest                                             --             --             --              --              --
 Interest expense, net                                         --             --             (9)         (1,884)         (2,942)
 Loss on early extinguishments of debt                         --             --             --              --              --
 Equity in income from consolidated entities                   --             --             --              --              --
                                                    -------------  -------------  -------------   -------------   -------------
 (Loss) income before income taxes and
    discontinued operations                                    --            225            861            (609)          9,476

 Income tax (expense) benefit                                  --             --             --              --              --
                                                    -------------  -------------  -------------   -------------   -------------

 (Loss) income from continuing operations                      --            225            861            (609)          9,476

 Discontinued operations:
 (Loss) income from discontinued operations
   before income tax                                           --             --             --          (5,500)         (6,670)
   Income tax (expense) benefit                                --             --             --              --              --
                                                    -------------  -------------  -------------   -------------   -------------
  (Loss) income from discontinued operations                   --             --             --          (5,500)         (6,670)

                                                    -------------  -------------  -------------   -------------   -------------
 Net (loss) income                                             --            225            861          (6,109)          2,806
                                                    =============  =============  =============   =============   =============

<Caption>

                                                                       TOTAL
                                                    ELIMINATIONS    CONSOLIDATED
                                                    -------------   -------------
<S>                                                 <C>             <C>
 Revenue:
    Hotel operations:
       Rooms                                                   --         143,156
       Food and beverage                                       --          59,442
       Other hotel operations                                  --          17,362
    Office rental, parking and other revenue                   --           2,929
 Participating lease revenue                              (59,974)             --
                                                    -------------   -------------
Total revenue                                             (59,974)        222,889
                                                    -------------   -------------
Hotel operating expenses:
       Rooms                                                   --          35,046
       Food and beverage                                       --          41,739
       Other hotel operating expenses                          --          10,864
    Office rental, parking and other expenses                  --             670
Other operating expenses:
       General and administrative, hotel                       --          32,010
       General and administrative, corporate                   --           3,473
       Property operating costs                                --          31,909
       Depreciation and amortization                           --          25,137
       Property taxes, insurance and other                (59,974)         16,006
       Loss on asset impairments                               --           1,291
                                                    -------------   -------------
Operating expenses                                        (59,974)        198,145
                                                    -------------   -------------
 Operating income (loss)                                       --          24,744
                                                    -------------   -------------
 Minority interest                                             --              20
 Interest expense, net                                         --         (29,724)
 Loss on early extinguishments of debt                         --          (1,980)
 Equity in income from consolidated entities              (12,880)             --
                                                    -------------   -------------
 (Loss) income before income taxes and                         --              --
    discontinued operations                               (12,880)         (6,940)

 Income tax (expense) benefit                                  --             (25)
                                                                               --
                                                    -------------   -------------
 (Loss) income from continuing operations                 (12,880)         (6,965)

 Discontinued operations:
 (Loss) income from discontinued operations
   before income tax                                           --          (5,131)
   Income tax (expense) benefit                                --              45
                                                    -------------   -------------
  (Loss) income from discontinued operations                   --          (5,086)
                                                                               --
                                                    -------------   -------------

 Net (loss) income                                        (12,880)        (12,051)
                                                    =============   =============
</Table>


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


<Table>
<Caption>

                                                   MERISTAR
                                                HOSPITALITY OP,   NON-GUARANTOR    MERISTAR SUB 7C,   AGH UPREIT,  MERISTAR SUB 5N,
                                                      L.P.        SUBSIDIARIES           LLC              LLC            LLC
                                                ---------------   -------------    ----------------   -----------  ----------------
<S>                                             <C>               <C>              <C>                <C>          <C>
Revenue:
   Hotel operations:
        Rooms                                                --              --                  --            --                --
        Food and beverage                                    --              --                  --            --                --
        Other hotel operations                               --              --                  --            --                --
   Office rental, parking and other revenues              2,158           1,716                  --            --                --
 Participating lease revenue                                 --          26,838                  --            --               234
                                                ---------------   -------------    ----------------   -----------  ----------------
Total revenue                                             2,158          28,554                  --            --               234
                                                ---------------   -------------    ----------------   -----------  ----------------

Hotel operating expenses:
        Rooms                                                --              --                  --            --                --
        Food and beverage                                    --              --                  --            --                --
        Other hotel operating expenses                       --              --                  --            --                --
Office rental, parking and other expenses                    --             525                  --            --                --
Other operating expenses:
        General and administrative, hotel                    --            (260)                 --            --                --
        General and administrative, corporate             3,185              --                  --            --                --
        Property operating costs                             --              --                  --            --                --
        Depreciation and amortization                     2,858          11,102                  --            --                35
        Property taxes, insurance and other               1,337           4,828                  --            --                25
        Loss on asset impairments                            --          33,644                  --            --                --
                                                ---------------   -------------    ----------------   -----------  ----------------
 Operating expenses                                       7,380          49,839                  --            --                60
                                                ---------------   -------------    ----------------   -----------  ----------------

 Operating (loss) income                                 (5,222)        (21,285)                 --            --               174

 Minority interest                                            5              --                  --            --                --
 Interest expense, net                                  (26,212)         (6,792)                 --            --                --
 Equity in loss from consolidated entities             (186,138)             --                  --            --                --
                                                ---------------   -------------    ----------------   -----------  ----------------

 (Loss) income before income taxes and
    discontinued operations                            (217,567)        (28,077)                 --            --               174

 Income tax expense                                         (10)             --                  --            --                --
                                                ---------------   -------------    ----------------   -----------  ----------------

 (Loss) income from continuing operations              (217,577)        (28,077)                 --            --               174

 Discontinued operations:
    (Loss) income from discontinued operations
       before income tax                                    927         (80,881)                 --            --                --
    Income tax expense                                       (9)             --                  --            --                --
                                                ---------------   -------------    ----------------   -----------  ----------------

    (Loss) income on discontinued operations                918         (80,881)                 --            --                --

                                                ---------------   -------------    ----------------   -----------  ----------------
 Net (loss) income                                     (216,659)       (108,958)                 --            --               174
                                                ===============   =============    ================   ===========  ================

<Caption>

                                                    MERISTAR SUB 8A,  MERISTAR SUB 8F,  MERISTAR SUB 8G,     MERISTAR SUB 6H,
                                                          LLC               L.P.              LLC                  L.P.
                                                    ----------------  ----------------  ----------------     ----------------
<S>                                                 <C>               <C>               <C>                  <C>
Revenue:
    Hotel operations:
        Rooms                                                     --                --                --                   --
        Food and beverage                                         --                --                --                   --
        Other hotel operations                                    --                --                --                   --
    Office rental, parking and other revenues                     --                --                --                   --
 Participating lease revenue                                      --               586                --                  313
                                                    ----------------  ----------------  ----------------     ----------------
Total revenue                                                     --               586                --                  313
                                                    ----------------  ----------------  ----------------     ----------------

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                             --               146                --                  144
        Property taxes, insurance and other                       --                99                --                   23
        Loss on asset impairments                                 --                --                --                   --
                                                    ----------------  ----------------  ----------------     ----------------
 Operating expenses                                               --               245                --                  167
                                                    ----------------  ----------------  ----------------     ----------------

 Operating (loss) income                                          --               341                --                  146

 Minority interest                                                --                --                --                   --
 Interest expense, net                                            --                --                --                   --
 Equity in loss from consolidated entities                        --                --                --                   --
                                                    ----------------  ----------------  ----------------     ----------------

 (Loss) income before income taxes and
  discontinued operations                                         --               341                --                  146
 Income tax expense                                               --                --                --                   --
                                                    ----------------  ----------------  ----------------     ----------------

 (Loss) income from continuing operations                         --               341                --                  146

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

     (Loss) income on discontinued operations                     --                --                --                   --

                                                    ----------------  ----------------  ----------------     ----------------
 Net (loss) income                                                --               341                --                  146
                                                    ================  ================  ================     ================
</Table>




<PAGE>

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

<Table>
<Caption>
                                                       MERISTAR     MERISTAR         MERISTAR      MERISTAR        MERISTAR
                                                        SUB 8B,      SUB 1C,          SUB 8E,       SUB 7F,         SUB 5L,
                                                         LLC           L.P.             LLC           LLC             LLC
                                                    -------------  -------------   -------------  -------------   -------------
<S>                                                 <C>            <C>             <C>            <C>             <C>
 Revenue:
    Hotel operations:
        Rooms                                                  --             --              --             --              --
        Food and beverage                                      --             --              --             --              --
        Other hotel operations                                 --             --              --             --              --
    Office rental, parking and other revenues                  --             --               5             --              --
 Participating lease revenue                                1,818            308             362            226             228
                                                    -------------  -------------   -------------  -------------   -------------
Total revenue                                               1,818            308             367            226             228
                                                    -------------  -------------   -------------  -------------   -------------

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                         610            254             145            114              35
        Property taxes, insurance and other                   346            132              54             41              37
        Loss on asset impairments                              --             --              --          1,637              --
                                                    -------------  -------------   -------------  -------------   -------------
 Operating expenses                                           956            386             199          1,792              72
                                                    -------------  -------------   -------------  -------------   -------------

 Operating (loss) income                                      862            (78)            168         (1,566)            156

 Minority interest                                             --             --              --             --              --
 Interest expense, net                                         --             --              --             --              --
 Equity in loss from consolidated entities                     --             --              --             --              --
                                                    -------------  -------------   -------------  -------------   -------------

 (Loss) income before income taxes and
    discontinued operations                                   862            (78)            168         (1,566)            156

 Income tax expense                                            --             --              --             --              --
                                                    -------------  -------------   -------------  -------------   -------------

 (Loss) income from continuing operations                     862            (78)            168         (1,566)            156

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

                                                    -------------  -------------   -------------  -------------   -------------
 Net (loss) income                                            862            (78)            168         (1,566)            156
                                                    =============  =============   =============  =============   =============

<Caption>

                                                       MERISTAR       MERISTAR       MERISTAR       MERISTAR
                                                        SUB 3C,        SUB 5R,        SUB 6D,        SUB 6E,
                                                         LLC            LLC            LLC            LLC
                                                    -------------  -------------  -------------  -------------
<S>                                                 <C>            <C>            <C>            <C>
Revenue:
    Hotel operations:
        Rooms                                                  --             --             --             --
        Food and beverage                                      --             --             --             --
        Other hotel operations                                 --             --             --             --
    Office rental, parking and other revenues                  --             --              4             --
 Participating lease revenue                                  375             --            531          1,483
                                                    -------------  -------------  -------------  -------------
Total revenue                                                 375             --            535          1,483
                                                    -------------  -------------  -------------  -------------

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                         177             --            136            408
        Property taxes, insurance and other                    99             --             80            161
        Loss on asset impairments                              --             --             --             --
                                                    -------------  -------------  -------------  -------------
 Operating expenses                                           276             --            216            569
                                                    -------------  -------------  -------------  -------------


 Operating (loss) income                                       99             --            319            914

 Minority interest                                             --             --             --             --
 Interest expense, net                                         --             --             --             --
 Equity in loss from consolidated entities                     --             --             --             --
                                                    -------------  -------------  -------------  -------------


 (Loss) income before income taxes and
    discontinued operations                                    99             --            319            914

 Income tax expense                                            --             --             --             --
                                                    -------------  -------------  -------------  -------------


 (Loss) income from continuing operations                      99             --            319            914

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

     (Loss) income on discontinued operations                  --             --             --             --

                                                    -------------  -------------  -------------  -------------
 Net (loss) income                                             99             --            319            914
                                                    =============  =============  =============  =============
</Table>


<PAGE>

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

<Table>
<Caption>
                                                      MERISTAR        MERISTAR       MERISTAR        MERISTAR       MERISTAR
                                                       SUB 4E,         SUB 1B,        SUB 5F,         SUB 6G,        SUB 8C,
                                                         L.P.            LLC            L.P.            LLC            LLC
                                                    -------------   -------------  -------------   -------------  -------------
<S>                                                 <C>             <C>            <C>             <C>            <C>
 Revenue:
    Hotel operations:
        Rooms                                                  --              --             --              --             --
        Food and beverage                                      --              --             --              --             --
        Other hotel operations                                 --              --             --              --             --
    Office rental, parking and other revenues                   2               1             --              --             --
 Participating lease revenue                                  352             684            761             732             --
                                                    -------------   -------------  -------------   -------------  -------------
Total revenue                                                 354             685            761             732             --
                                                    -------------   -------------  -------------   -------------  -------------


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                         210             141            267             215             --
        Property taxes, insurance and other                   112              48             99             101             --
        Loss on asset impairments                          14,611              --          7,231              --             --
                                                    -------------   -------------  -------------   -------------  -------------
 Operating expenses                                        14,933             189          7,597             316             --

 Operating (loss) income                                  (14,579)            496         (6,836)            416             --
                                                    -------------   -------------  -------------   -------------  -------------

 Minority interest                                             --              --             --              --             --
 Interest expense, net                                         --              --             --              --             --
 Equity in loss from consolidated entities                     --              --             --              --             --
                                                    -------------   -------------  -------------   -------------  -------------


 (Loss) income before income taxes and
    discontinued operations                               (14,579)            496         (6,836)            416             --

 Income tax expense                                            --              --             --              --             --
                                                    -------------   -------------  -------------   -------------  -------------


 (Loss) income from continuing operations                 (14,579)            496         (6,836)            416             --

 Discontinued operations:
     (Loss) income from discontinued operations
        before income tax                                      --              --             --              --           (935)
      Income tax expense                                       --              --             --              --             --
                                                    -------------   -------------  -------------   -------------  -------------

     (Loss) income on discontinued operations                  --              --             --              --           (935)

                                                    -------------   -------------  -------------   -------------  -------------
 Net (loss) income                                        (14,579)            496         (6,836)            416           (935)
                                                    =============   =============  =============   =============  =============
<Caption>

                                                      MERISTAR       MERISTAR        MERISTAR         MERISTAR
                                                       SUB 4C,        SUB 4H,         SUB 7E,          SUB 3D,
                                                        L.P.           L.P.            LLC             LLC
                                                    -------------  -------------   -------------  -------------
<S>                                                 <C>            <C>             <C>            <C>
Revenue:
    Hotel operations:
        Rooms                                                  --             --              --             --
        Food and beverage                                      --             --              --             --
        Other hotel operations                                 --             --              --             --
    Office rental, parking and other revenues                  --             --              --              1
 Participating lease revenue                                   --             --             337            352
                                                    -------------  -------------   -------------  -------------
Total revenue                                                  --             --             337            353
                                                    -------------  -------------   -------------  -------------

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                          --             --             154            195
        Property taxes, insurance and other                    --             --              50             58
        Loss on asset impairments                              --             --              --             --
                                                    -------------  -------------   -------------  -------------
 Operating expenses                                            --             --             204            253
                                                    -------------  -------------   -------------  -------------

 Operating (loss) income                                       --             --             133            100

 Minority interest                                             --             --              --             --
 Interest expense, net                                         --             --              --             --
 Equity in loss from consolidated entities                     --             --              --             --
                                                    -------------  -------------   -------------  -------------

 (Loss) income before income taxes and
    discontinued operations                                    --             --             133            100

 Income tax expense                                            --             --              --             --
                                                    -------------  -------------   -------------  -------------

 (Loss) income from continuing operations                      --             --             133            100

 Discontinued operations:
     (Loss) income from discontinued operations
        before income tax                                      --         (5,285)             --             --
      Income tax expense                                       --             --              --             --
                                                    -------------  -------------   -------------  -------------
     (Loss) income on discontinued operations                  --         (5,285)             --             --

                                                    -------------  -------------   -------------  -------------
 Net (loss) income                                             --         (5,285)            133            100
                                                    =============  =============   =============  =============
</Table>

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

<Table>
<Caption>
                                                                                     MERISTAR
                                                      MERISTAR        MERISTAR        SUB 7A         MERISTAR       MERISTAR
                                                       SUB 1A,         SUB 5E,         JOINT          SUB 6K,        SUB 2B,
                                                         LLC             LLC          VENTURE          LLC            LLC
                                                    -------------  -------------  -------------   -------------  -------------
<S>                                                 <C>            <C>             <C>            <C>             <C>
Revenue:
    Hotel operations:
        Rooms                                                  --             --             --              --             --
        Food and beverage                                      --             --             --              --             --
        Other hotel operations                                 --             --             --              --             --
    Office rental, parking and other revenues                  --             --             --              --             --
 Participating lease revenue                                   --          1,698             --           1,088             --
                                                    -------------  -------------  -------------   -------------  -------------
Total revenue                                                  --          1,698             --           1,088             --
                                                    -------------  -------------  -------------   -------------  -------------


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                          --            478             --             184             --
        Property taxes, insurance and other                    --            100             --              96             --
        Loss on asset impairments                              --             --             --              --             --
                                                    -------------  -------------  -------------   -------------  -------------

 Operating expenses                                            --            578             --             280             --
                                                    -------------  -------------  -------------   -------------  -------------

 Operating (loss) income                                       --          1,120             --             808             --

 Minority interest                                             --             --             --              --             --
 Interest expense, net                                         --             --             --              --             --
 Equity in loss from consolidated entities                     --             --             --              --             --
                                                    -------------  -------------  -------------   -------------  -------------


 (Loss) income before income taxes and
    discontinued operations                                    --          1,120             --             808             --

 Income tax expense                                            --             --             --              --             --
                                                    -------------  -------------  -------------   -------------  -------------


 (Loss) income from continuing operations                      --          1,120             --             808             --

 Discontinued operations:
     (Loss) income from discontinued operations
        before income tax                                     229             --         (5,316)             --         (1,136)
      Income tax expense                                       --             --             --              --             --
                                                    -------------  -------------  -------------   -------------  -------------

     (Loss) income on discontinued operations                 229             --         (5,316)             --         (1,136)

                                                    -------------  -------------  -------------   -------------  -------------
 Net (loss) income                                            229          1,120         (5,316)            808         (1,136)
                                                    =============  =============  =============   =============  =============

<Caption>

                                                     MERISTAR        MERISTAR        MERISTAR        MERISTAR
                                                      SUB 3A,         SUB 4A,         SUB 4D,         SUB 2A,
                                                        LLC             LLC             LLC             LLC
                                                    -------------   -------------   -------------  -------------
<S>                                                 <C>             <C>             <C>            <C>
Revenue:
    Hotel operations:
        Rooms                                                  --              --              --             --
        Food and beverage                                      --              --              --             --
        Other hotel operations                                 --              --              --             --
    Office rental, parking and other revenues                  --              --              --             --
 Participating lease revenue                                   --              --              --             --
                                                    -------------   -------------   -------------  -------------
Total revenue                                                  --              --              --             --
                                                    -------------   -------------   -------------  -------------

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                          --              --              --             --
        Property taxes, insurance and other                    --              --              --             --
        Loss on asset impairments                              --              --              --             --
                                                    -------------   -------------   -------------  -------------
 Operating expenses                                            --              --              --             --
                                                    -------------   -------------   -------------  -------------

 Operating (loss) income                                       --              --              --             --

 Minority interest                                             --              --              --             --
 Interest expense, net                                         --              --              --             --
 Equity in loss from consolidated entities                     --              --              --             --
                                                    -------------   -------------   -------------  -------------

 (Loss) income before income taxes and
    discontinued operations                                    --              --              --             --

 Income tax expense                                            --              --              --             --
                                                    -------------   -------------   -------------  -------------

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

 Discontinued operations:
     (Loss) income from discontinued operations
        before income tax                                  (1,443)         (1,292)             30         (1,044)
      Income tax expense                                       --              --              --             --
                                                    -------------   -------------   -------------  -------------
(Loss) income on discontinued operations                   (1,443)         (1,292)             30         (1,044)
                                                    -------------   -------------   -------------  -------------
 Net (loss) income                                         (1,443)         (1,292)             30         (1,044)
                                                    =============   =============   =============  =============
</Table>


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

<Table>
<Caption>
                                                       MERISTAR          MDV         MERISTAR       MERISTAR        MERISTAR
                                                        SUB 6L,        LIMITED        SUB 5C,        SUB 6J,         SUB 1D,
                                                         LLC         PARTNERSHIP        LLC            LLC            L.P.
                                                    -------------   -------------  -------------   -------------  -------------
<S>                                                 <C>             <C>            <C>             <C>            <C>
Revenue:
    Hotel operations:
        Rooms                                                  --              --             --              --             --
        Food and beverage                                      --              --             --              --             --
        Other hotel operations                                 --              --             --              --             --
    Office rental, parking and other revenues                  --              --             --              --            (73)
 Participating lease revenue                                   --             127             --             589          1,241
                                                    -------------   -------------  -------------   -------------  -------------
Total revenue                                                  --             127             --             589          1,168
                                                    -------------   -------------  -------------   -------------  -------------


Hotel operating expenses:
        Rooms                                                  --              --             --              --             --
        Food and beverage                                      --              --             --              --             --
        Other hotel operating expenses                         --              --             --              --             --
Office rental, parking and other expenses                      --              --             --              --              5
Other operating expenses:
        General and administrative, hotel                      --              --             --              --             25
        General and administrative, corporate                  --              --             --              --             --
        Property operating costs                               --              --             --              --             --
        Depreciation and amortization                          --              34             --             144            570
        Property taxes, insurance and other                    --              36             --              65            448
        Loss on asset impairments                              --              --             --              --             --
                                                    -------------   -------------  -------------   -------------  -------------
 Operating expenses                                            --              70             --             209          1,048
                                                    -------------   -------------  -------------   -------------  -------------


 Operating (loss) income                                       --              57             --             380            120

 Minority interest                                             --              --             --              --             --
 Interest expense, net                                         --              --             --               1             --
 Equity in loss from consolidated entities                     --              --             --              --             --
                                                    -------------   -------------  -------------   -------------  -------------


 (Loss) income before income taxes and
    discontinued operations                                    --              57             --             381            120

 Income tax expense                                            --              --             --              --             --
                                                    -------------   -------------  -------------   -------------  -------------


 (Loss) income from continuing operations                      --              57             --             381            120

 Discontinued operations:
     (Loss) income from discontinued operations
        before income tax                                 (13,159)             --         (1,191)             --             --
      Income tax expense                                       --              --             --              --             --
                                                    -------------   -------------  -------------   -------------  -------------
     (Loss) income on discontinued operations             (13,159)             --         (1,191)             --             --

                                                    -------------   -------------  -------------   -------------  -------------
Net (loss) income                                         (13,159)             57         (1,191)            381            120
                                                    =============   =============  =============   =============  =============

<Caption>
                                                      MERISTAR        MERISTAR       MERISTAR        MERISTAR
                                                       SUB 7B,         SUB 7D,        SUB 7G,         SUB 6B,
                                                         L.P.            LLC            LLC             LLC
                                                    -------------   -------------  -------------   -------------
<S>                                                 <C>             <C>            <C>             <C>
Revenue:
    Hotel operations:
        Rooms                                                  --              --             --              --
        Food and beverage                                      --              --             --              --
        Other hotel operations                                 --              --             --              --
    Office rental, parking and other revenues                  --            (358)            --              --
 Participating lease revenue                                   --           2,240             --             325
                                                    -------------   -------------  -------------   -------------
Total revenue                                                  --           1,882             --             325
                                                    -------------   -------------  -------------   -------------

Hotel operating expenses:
        Rooms                                                  --              --             --              --
        Food and beverage                                      --              --             --              --
        Other hotel operating expenses                         --              --             --              --
Office rental, parking and other expenses                      --             (11)            --              --
Other operating expenses:
        General and administrative, hotel                      --             177             --              --
        General and administrative, corporate                  --              --             --              --
        Property operating costs                               --              --             --              --
        Depreciation and amortization                          --             441             --             116
        Property taxes, insurance and other                    --             564             --              50
        Loss on asset impairments                              --              --             --              --
                                                    -------------   -------------  -------------   -------------
 Operating expenses                                            --           1,171             --             166
                                                    -------------   -------------  -------------   -------------

 Operating (loss) income                                       --             711             --             159

 Minority interest                                             --              --             --              --
 Interest expense, net                                         --              --             --              --
 Equity in loss from consolidated entities                     --              --             --              --
                                                    -------------   -------------  -------------   -------------

 (Loss) income before income taxes and
    discontinued operations                                    --             711             --             159

 Income tax expense                                            --              --             --              --
                                                    -------------   -------------  -------------   -------------

 (Loss) income from continuing operations                      --             711             --             159

 Discontinued operations:
     (Loss) income from discontinued operations
        before income tax                                  (2,335)             --           (901)             --
      Income tax expense                                       --              --             --              --
                                                    -------------   -------------  -------------   -------------
     (Loss) income on discontinued operations              (2,335)             --           (901)             --

                                                    -------------   -------------  -------------   -------------
Net (loss) income                                          (2,335)            711           (901)            159
                                                    =============   =============  =============   =============
</Table>

<PAGE>

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

<Table>
<Caption>
                                                       MERISTAR       MERISTAR        MERISTAR        MERISTAR
                                                       SUB 4I,         SUB 5D,         SUB 5H,         SUB 7H,        AGH PSSI,
                                                         L.P.            LLC            LLC             LLC              INC.
                                                    -------------   -------------   -------------   -------------   -------------
<S>                                                 <C>             <C>             <C>             <C>             <C>
Revenue:
    Hotel operations:
        Rooms                                                  --              --              --              --              --
        Food and beverage                                      --              --              --              --              --
        Other hotel operations                                 --              --              --              --              --
    Office rental, parking and other revenues                  --              --              --              --              --
 Participating lease revenue                                   --             549              --              --              --
                                                    -------------   -------------   -------------   -------------   -------------

Total revenue                                                  --             549              --              --              --
                                                    -------------   -------------   -------------   -------------   -------------


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                          --             365              --              --              --
        Property taxes, insurance and other                    --              54              --              --              --
        Loss on asset impairments                              --              --              --              --              --
                                                    -------------   -------------   -------------   -------------   -------------

 Operating expenses                                            --             419              --              --              --
                                                    -------------   -------------   -------------   -------------   -------------


 Operating (loss) income                                       --             130              --              --              --

 Minority interest                                             --              --              --              --              --
 Interest expense, net                                         --            (316)             --              --              --
 Equity in loss from consolidated entities                     --              --              --              --              --
                                                    -------------   -------------   -------------   -------------   -------------


 (Loss) income before income taxes and
    discontinued operations                                    --            (186)             --              --              --

 Income tax expense                                            --              --              --              --              --
                                                    -------------   -------------   -------------   -------------   -------------


 (Loss) income from continuing operations                      --            (186)             --              --              --

 Discontinued operations:
     (Loss) income from discontinued operations
        before income tax                                  (1,373)             --         (17,930)         (1,232)         (1,346)
      Income tax expense                                       --              --              --              --              --
                                                    -------------   -------------   -------------   -------------   -------------
     (Loss) income on discontinued operations              (1,373)             --         (17,930)         (1,232)         (1,346)

                                                    -------------   -------------   -------------   -------------   -------------
Net (loss) income                                          (1,373)           (186)        (17,930)         (1,232)         (1,346)
                                                    =============   =============   =============   =============   =============
<Caption>

                                                      MERISTAR        MERISTAR       MERISTAR       MERISTAR
                                                       SUB 2D,         SUB 4F,        SUB 5K,        SUB 5M,
                                                         LLC             L.P.           LLC            LLC
                                                    -------------   -------------  -------------  -------------
<S>                                                 <C>            <C>             <C>            <C>
Revenue:
    Hotel operations:
        Rooms                                                  --              --             --             --
        Food and beverage                                      --              --             --             --
        Other hotel operations                                 --              --             --             --
    Office rental, parking and other revenues                  --               4             --             --
 Participating lease revenue                                   --             455            632            429
                                                    -------------   -------------  -------------  -------------
Total revenue                                                  --             459            632            429
                                                    -------------   -------------  -------------  -------------

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            322            118
        Property taxes, insurance and other                    --              87             93             65
        Loss on asset impairments                              --              --             --             --
                                                    -------------   -------------  -------------  -------------
 Operating expenses                                            --             364            415            183
                                                    -------------   -------------  -------------  -------------

 Operating (loss) income                                       --              95            217            246

 Minority interest                                             --              --             --             --
 Interest expense, net                                         --              --             --             --
 Equity in loss from consolidated entities                     --              --             --             --
                                                    -------------   -------------  -------------  -------------

 (Loss) income before income taxes and
    discontinued operations                                    --              95            217            246

 Income tax expense                                            --              --             --             --
                                                    -------------   -------------  -------------  -------------

 (Loss) income from continuing operations                      --              95            217            246

 Discontinued operations:
     (Loss) income from discontinued operations
        before income tax                                  (1,087)             --             --             --
      Income tax expense                                       --              --             --             --
                                                    -------------   -------------  -------------  -------------
     (Loss) income on discontinued operations              (1,087)             --             --             --

                                                    -------------   -------------  -------------  -------------
Net (loss) income                                          (1,087)             95            217            246
                                                    =============   =============  =============  =============
</Table>

<PAGE>

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

<Table>
<Caption>

                                                      MERISTAR       MERISTAR        MERISTAR     MERISTAR         MERISTAR
                                                       SUB 1E,        SUB 5O,         SUB 6M       SUB 4B,          SUB 6C,
                                                         L.P.           LLC          COMPANY         L.P.             LLC
                                                    -------------  -------------  -------------  -------------   -------------
<S>                                                 <C>            <C>            <C>            <C>             <C>
Revenue:
    Hotel operations:
        Rooms                                                  --             --             --             --              --
        Food and beverage                                      --             --             --             --              --
        Other hotel operations                                 --             --             --             --              --
    Office rental, parking and other revenues                  --             --             --             --               1
 Participating lease revenue                                   --            200          1,160             --             753
                                                    -------------  -------------  -------------  -------------   -------------
Total revenue                                                  --            200          1,160             --             754
                                                    -------------  -------------  -------------  -------------   -------------

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                          --             57            308             --             193
        Property taxes, insurance and other                    --             26             82             --              56
        Loss on asset impairments                              --             --             --             --              --
                                                    -------------  -------------  -------------  -------------   -------------
 Operating expenses                                            --             83            390             --             249
                                                    -------------  -------------  -------------  -------------   -------------

 Operating (loss) income                                       --            117            770             --             505

 Minority interest                                             --             --             --             --              --
 Interest expense, net                                         --             --             --             --              --
 Equity in loss from consolidated entities                     --             --             --             --              --
                                                    -------------  -------------  -------------  -------------   -------------

 (Loss) income before income taxes and
    discontinued operations                                    --            117            770             --             505

 Income tax expense                                            --             --             --             --              --
                                                    -------------  -------------  -------------  -------------   -------------

 (Loss) income from continuing operations                      --            117            770             --             505

 Discontinued operations:
     (Loss) income from discontinued operations
        before income tax                                     300             --             --           (416)             --
      Income tax expense                                       --             --             --             --              --
                                                    -------------  -------------  -------------  -------------   -------------
      (Loss) income on discontinued operations                300             --             --           (416)             --

                                                    -------------  -------------  -------------  -------------   -------------
Net (loss) income                                             300            117            770           (416)            505
                                                    =============  =============  =============  =============   =============

<Caption>

                                                       MERISTAR        MERISTAR       MERISTAR         MERISTAR
                                                        SUB 2C,         SUB 4G,        SUB 3B,          SUB 5G,
                                                          LLC            L.P.            LLC             L.P.
                                                    -------------   -------------   -------------   -------------
<S>                                                 <C>             <C>             <C>             <C>
Revenue:
    Hotel operations:
        Rooms                                                  --              --              --              --
        Food and beverage                                      --              --              --              --
        Other hotel operations                                 --              --              --              --
    Office rental, parking and other revenues                  --              --              --              16
 Participating lease revenue                                   --             498              --           2,267
                                                    -------------   -------------   -------------   -------------
Total revenue                                                  --             498              --           2,283
                                                    -------------   -------------   -------------   -------------

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                          --             223              --           1,573
        Property taxes, insurance and other                    --             165              --             474
        Loss on asset impairments                              --           8,000              --              --
                                                    -------------   -------------   -------------   -------------
 Operating expenses                                            --           8,388              --           2,047
                                                    -------------   -------------   -------------   -------------

 Operating (loss) income                                       --          (7,890)             --             236

 Minority interest                                             --              --              --              --
 Interest expense, net                                         --              --              --              --
 Equity in loss from consolidated entities                     --              --              --              --
                                                    -------------   -------------   -------------   -------------

 (Loss) income before income taxes and
    discontinued operations                                    --          (7,890)             --             236

 Income tax expense                                            --              --              --              --
                                                    -------------   -------------   -------------   -------------

 (Loss) income from continuing operations                      --          (7,890)             --             236

 Discontinued operations:
     (Loss) income from discontinued operations
        before income tax                                  (2,346)             --            (392)             --
      Income tax expense                                       --              --              --              --
                                                    -------------   -------------   -------------   -------------
     (Loss) income on discontinued operations              (2,346)             --            (392)             --

                                                    -------------   -------------   -------------   -------------
Net (loss) income                                          (2,346)         (7,890)           (392)            236
                                                    =============   =============   =============   =============
</Table>

<PAGE>

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

<Table>
<Caption>
                                                       MERISTAR      MERISTAR       MERISTAR       MERISTAR        MERISTAR
                                                        SUB 5P,       SUB 5J,        SUB 5Q,        SUB 5A,         SUB 8D,
                                                         LLC           LLC            LLC            LLC             LLC
                                                    -------------  -------------  -------------  -------------  --------------
<S>                                                 <C>            <C>            <C>            <C>            <C>
Revenue:
    Hotel operations:
        Rooms                                                  --             --             --             --              --
        Food and beverage                                      --             --             --             --              --
        Other hotel operations                                 --             --             --             --              --
    Office rental, parking and other revenues                  --             --             --             27              --
 Participating lease revenue                                  505          2,676            585          1,288              --
                                                    -------------  -------------  -------------  -------------  --------------

Total revenue                                                 505          2,676            585          1,315              --
                                                    -------------  -------------  -------------  -------------  --------------

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                           1            870            140            385              --
        Property taxes, insurance and other                     1            369             55            178              --
        Loss on asset impairments                              --             --             --             --              --
                                                    -------------  -------------  -------------  -------------  --------------
 Operating expenses                                             2          1,239            195            563              --
                                                    -------------  -------------  -------------  -------------  --------------

 Operating (loss) income                                      503          1,437            390            752              --

 Minority interest                                             --             --             --             --              --
 Interest expense, net                                         --             --             --           (709)             --
 Equity in loss from consolidated entities                     --             --             --             --              --
                                                    -------------  -------------  -------------  -------------  --------------

 (Loss) income before income taxes and
    discontinued operations                                   503          1,437            390             43              --

 Income tax expense                                            --             --             --             --              --
                                                    -------------  -------------  -------------  -------------  --------------

 (Loss) income from continuing operations                     503          1,437            390             43              --

 Discontinued operations:
     (Loss) income from discontinued operations
        before income tax                                      --             --             --             --             166
      Income tax expense                                       --             --             --             --              --
                                                    -------------  -------------  -------------  -------------  --------------
     (Loss) income on discontinued operations                  --             --             --             --             166

                                                    -------------  -------------  -------------  -------------  --------------
Net (loss) income                                             503          1,437            390             43             166
                                                    =============  =============  =============  =============  ==============

<Caption>

                                                       MERISTAR        MERISTAR       GUARANTOR
                                                        SUB 4J,         HOTEL       SUBSIDIARIES
                                                         LLC         LESSEE, INC.       TOTAL        ELIMINATIONS
                                                    -------------   -------------   -------------   -------------
<S>                                                 <C>             <C>             <C>             <C>
Revenue:
    Hotel operations:
        Rooms                                                  --         136,911         136,911              --
        Food and beverage                                      --          56,404          56,404              --
        Other hotel operations                                 --          19,201          19,201              --
    Office rental, parking and other revenues                 (51)             --            (421)             --
 Participating lease revenue                                  905              --          29,892         (56,730)
                                                    -------------   -------------   -------------   -------------
Total revenue                                                 854         212,516         241,987         (56,730)
                                                    -------------   -------------   -------------   -------------

Hotel operating expenses:
        Rooms                                                  --          32,467          32,467              --
        Food and beverage                                      --          38,789          38,789              --
        Other hotel operating expenses                         --          10,936          10,936              --
Office rental, parking and other expenses                      64              --              58              --
Other operating expenses:
        General and administrative, hotel                      48          31,874          32,124              --
        General and administrative, corporate                  --             (53)            (53)             --
        Property operating costs                               --          30,620          30,620              --
        Depreciation and amortization                         317             491          10,993              --
        Property taxes, insurance and other                    79          63,405          68,113         (56,730)
        Loss on asset impairments                              --              --          31,479              --
                                                    -------------   -------------   -------------   -------------
 Operating expenses                                           508         208,529         255,526         (56,730)
                                                    -------------   -------------   -------------   -------------

 Operating (loss) income                                      346           3,987         (13,539)             --

 Minority interest                                             --              --              --              --
 Interest expense, net                                         --            (555)         (1,579)             --
 Equity in loss from consolidated entities                     --              --              --         186,138
                                                    -------------   -------------   -------------   -------------

 (Loss) income before income taxes and
    discontinued operations                                   346           3,432         (15,118)        186,138

 Income tax expense                                            --              --              --              --
                                                    -------------   -------------   -------------   -------------

 (Loss) income from continuing operations                     346           3,432         (15,118)        186,138

 Discontinued operations:
     (Loss) income from discontinued operations
        before income tax                                      --          (2,628)        (62,062)             --
      Income tax expense                                       --              --              --              --
                                                    -------------   -------------   -------------   -------------
     (Loss) income on discontinued operations                  --          (2,628)        (62,062)             --

                                                    -------------   -------------   -------------   -------------
Net (loss) income                                             346             804         (77,180)        186,138
                                                    =============   =============   =============   =============
</Table>
<PAGE>
 MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
 CONSOLIDATING STATEMENT OF OPERATIONS
 THREE MONTHS ENDED JUNE 30, 2003
 UNAUDITED
 (DOLLARS IN THOUSANDS)

<Table>
<Caption>
                                                       TOTAL
                                                    CONSOLIDATED
                                                    -------------
<S>                                                 <C>
Revenue:
    Hotel operations:
        Rooms                                             136,911
        Food and beverage                                  56,404
        Other hotel operations                             19,201
    Office rental, parking and other revenues               3,453
 Participating lease revenue                                   --
                                                    -------------
Total revenue                                             215,969
                                                    -------------

Hotel operating expenses:
        Rooms                                              32,467
        Food and beverage                                  38,789
        Other hotel operating expenses                     10,936
Office rental, parking and other expenses                     583
Other operating expenses:
        General and administrative, hotel                  31,864
        General and administrative, corporate               3,132
        Property operating costs                           30,620
        Depreciation and amortization                      24,953
        Property taxes, insurance and other                17,548
        Loss on asset impairments                          65,123
                                                    -------------
 Operating expenses                                       256,015
                                                    -------------

 Operating (loss) income                                  (40,046)

 Minority interest                                              5
 Interest expense, net                                    (34,583)
 Equity in loss from consolidated entities                     --
                                                    -------------

 (Loss) income before income taxes and
    discontinued operations                               (74,624)

 Income tax expense                                           (10)
                                                    -------------

 (Loss) income from continuing operations                 (74,634)

 Discontinued operations:                                      --
     (Loss) income from discontinued operations
        before income tax                                (142,016)
      Income tax expense                                       (9)
                                                    -------------
     (Loss) income on discontinued operations            (142,025)

                                                    -------------
 Net (loss) income                                       (216,659)
                                                    =============
</Table>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)

<Table>
<Caption>
                                                       MERISTAR         NON-
                                                     HOSPITALITY     GUARANTOR      MERISTAR SUB    AGH UPREIT,   MERISTAR SUB
                                                       OP, L.P.     SUBSIDIARIES       7C, LLC          LLC          5N, LLC
                                                    -------------   -------------   -------------  -------------  -------------
<S>                                                 <C>             <C>             <C>            <C>            <C>
 Revenue:
    Hotel operations:                                          --              --              --             --             --
       Rooms                                                   --              --              --             --             --
       Food and beverage                                       --              --              --             --             --
       Other hotel operations                                  --              --              --             --             --
    Office rental, parking and other revenue                3,227           1,295              --             --             --
 Participating lease revenue                                   --          68,968              --             --            519
                                                    -------------   -------------   -------------  -------------  -------------
Total revenue                                               3,227          70,263              --             --            519
                                                    -------------   -------------   -------------  -------------  -------------

Hotel operating expenses:
       Rooms                                                   --              --              --             --             --
       Food and beverage                                       --              --              --             --             --
       Other hotel operating departments                       --              --              --             --             --
    Office rental, parking and other expenses                  --             561              --             --             --
Other operating expenses:                                      --              --              --             --             --
       General and administrative, hotel                       --              23              --             --             --
       General and administrative, corporate                7,016              --              --             --             --
       Property operating costs                                --              --              --             --             --
       Depreciation and amortization                        6,237          25,092              --             --             69
       Property taxes, insurance and other                   (356)         10,150              --             --             52
       Loss on asset impairment                                --             310              --             --             --
                                                    -------------   -------------   -------------  -------------  -------------
Operating expenses                                         12,897          36,136              --             --            121
                                                    -------------   -------------   -------------  -------------  -------------

 Operating income (loss)                                   (9,670)         34,127              --             --            398
                                                    -------------   -------------   -------------  -------------  -------------

 Minority interest                                             24              --              --             --             --
 Interest expense, net                                    (42,325)        (16,179)             --             --             --
 Loss on early extinguishments of debt                     (7,903)             --              --             --             --
 Equity in income from consolidated entities                6,014              --              --             --             --
                                                    -------------   -------------   -------------  -------------  -------------
 (Loss) income before income taxes and
    discontinued operations                               (53,860)         17,948              --             --            398

 Income tax benefit (expense)                                 314              --              --             --             --
                                                    -------------   -------------   -------------  -------------  -------------

 (Loss) income from continuing operations                 (53,546)         17,948              --             --            398

 Discontinued operations:
 (Loss) income from discontinued operations
  before income tax                                           447           1,123              --             --             --
   Income tax (expense) benefit                               161              --              --             --             --
                                                    -------------   -------------   -------------  -------------  -------------
   (Loss) income from discontinued operations                 608           1,123              --             --             --

                                                    -------------   -------------   -------------  -------------  -------------
 Net (loss) income                                        (52,938)         19,071              --             --            398
                                                    =============   =============   =============  =============  =============

<Caption>

                                                    MERISTAR SUB    MERISTAR SUB   MERISTAR SUB   MERISTAR SUB
                                                       8A, LLC        8F, L.P.       8G, LLC        6H, L.P.
                                                    -------------  -------------  -------------  -------------
<S>                                                 <C>            <C>            <C>            <C>
 Revenue:
    Hotel operations:                                          --             --             --             --
       Rooms                                                   --             --             --             --
       Food and beverage                                       --             --             --             --
       Other hotel operations                                  --             --             --             --
    Office rental, parking and other revenue                   --             --             --             --
 Participating lease revenue                                   --          1,202             --            675
                                                    -------------  -------------  -------------  -------------
Total revenue                                                  --          1,202             --            675
                                                    -------------  -------------  -------------  -------------

Hotel operating expenses:
       Rooms                                                   --             --             --             --
       Food and beverage                                       --             --             --             --
       Other hotel operating departments                       --             --             --             --
    Office rental, parking and other expenses                  --             --             --             --
Other operating expenses:                                      --             --             --             --
       General and administrative, hotel                       --             --             --             --
       General and administrative, corporate                   --             --             --             --
       Property operating costs                                --             --             --             --
       Depreciation and amortization                           --            329             --            313
       Property taxes, insurance and other                     --            305             --             50
       Loss on asset impairment                                --             --             --             --
                                                    -------------  -------------  -------------  -------------
Operating expenses                                             --            634             --            363
                                                    -------------  -------------  -------------  -------------

 Operating income (loss)                                       --            568             --            312
                                                    -------------  -------------  -------------  -------------

 Minority interest                                             --             --             --             --
 Interest expense, net                                         --             --             --             --
 Loss on early extinguishments of debt                         --             --             --             --
 Equity in income from consolidated entities                   --             --             --             --
                                                    -------------  -------------  -------------  -------------
 (Loss) income before income taxes and
    discontinued operations                                    --            568             --            312

 Income tax benefit (expense)                                  --             --             --             --
                                                    -------------  -------------  -------------  -------------

 (Loss) income from continuing operations                      --            568             --            312

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

                                                    -------------  -------------  -------------  -------------
 Net (loss) income                                             --            568             --            312
                                                    =============  =============  =============  =============
</Table>




<PAGE>




MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)

<Table>
<Caption>
                                                    MERISTAR SUB   MERISTAR SUB    MERISTAR SUB   MERISTAR SUB   MERISTAR SUB
                                                       8B, LLC        1C, L.P.        8E, LLC        7F, LLC        5L, LLC
                                                    -------------  -------------   -------------  -------------  -------------
<S>                                                 <C>            <C>             <C>            <C>            <C>
 Revenue:
    Hotel operations:                                          --             --              --             --             --
       Rooms                                                   --             --              --             --             --
       Food and beverage                                       --             --              --             --             --
       Other hotel operations                                  --             --              --             --             --
    Office rental, parking and other revenue                   --             --              16             --             --
 Participating lease revenue                                3,727            726             742            550            630
                                                    -------------  -------------   -------------  -------------  -------------
Total revenue                                               3,727            726             758            550            630
                                                    -------------  -------------   -------------  -------------  -------------

Hotel operating expenses:
       Rooms                                                   --             --              --             --             --
       Food and beverage                                       --             --              --             --             --
       Other hotel operating departments                       --             --              --             --             --
    Office rental, parking and other expenses                  --             --              --             --             --
Other operating expenses:                                      --             --              --             --             --
       General and administrative, hotel                       --             --              --             --             --
       General and administrative, corporate                   --             --              --             --             --
       Property operating costs                                --             --              --             --             --
       Depreciation and amortization                        1,197            697             298            170             77
       Property taxes, insurance and other                    556            379              84             61             76
       Loss on asset impairment                                --             --              --             --             --
                                                    -------------  -------------   -------------  -------------  -------------
Operating expenses                                          1,753          1,076             382            231            153
                                                    -------------  -------------   -------------  -------------  -------------

 Operating income (loss)                                    1,974           (350)            376            319            477
                                                    -------------  -------------   -------------  -------------  -------------

 Minority interest                                             --             --              --             --             --
 Interest expense, net                                         --             --              --             --             --
 Loss on early extinguishments of debt                         --             --              --             --             --
 Equity in income from consolidated entities                   --             --              --             --             --
                                                    -------------  -------------   -------------  -------------  -------------
 (Loss) income before income taxes and
    discontinued operations                                 1,974           (350)            376            319            477

 Income tax benefit (expense)                                  --             --              --             --             --
                                                    -------------  -------------   -------------  -------------  -------------

 (Loss) income from continuing operations                   1,974           (350)            376            319            477

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

                                                    -------------  -------------   -------------  -------------  -------------
 Net (loss) income                                          1,974           (350)            376            319            477
                                                    =============  =============   =============  =============  =============

<Caption>

                                                     MERISTAR SUB  MERISTAR SUB   MERISTAR SUB   MERISTAR SUB
                                                       3C, LLC        5R, LLC        6D, LLC        6E, LLC
                                                    -------------  -------------  -------------  -------------
<S>                                                 <C>            <C>            <C>            <C>
 Revenue:
    Hotel operations:                                          --             --             --             --
       Rooms                                                   --             --             --             --
       Food and beverage                                       --             --             --             --
       Other hotel operations                                  --             --             --             --
    Office rental, parking and other revenue                    1             --             90             --
 Participating lease revenue                                1,015             --          1,014          3,007
                                                    -------------  -------------  -------------  -------------
Total revenue                                               1,016             --          1,104          3,007
                                                    -------------  -------------  -------------  -------------

Hotel operating expenses:
       Rooms                                                   --             --             --             --
       Food and beverage                                       --             --             --             --
       Other hotel operating departments                       --             --             --             --
    Office rental, parking and other expenses                  --             --             --             --
Other operating expenses:                                      --             --             --             --
       General and administrative, hotel                       --             --             --             --
       General and administrative, corporate                   --             --             --             --
       Property operating costs                                --             --             --             --
       Depreciation and amortization                          356             --            273            825
       Property taxes, insurance and other                    202             --            152            288
       Loss on asset impairment                                --             --             --             --
                                                    -------------  -------------  -------------  -------------
Operating expenses                                            558             --            425          1,113
                                                    -------------  -------------  -------------  -------------

 Operating income (loss)                                      458             --            679          1,894
                                                    -------------  -------------  -------------  -------------

 Minority interest                                             --             --             --             --
 Interest expense, net                                         --             --             --             --
 Loss on early extinguishments of debt                         --             --             --             --
 Equity in income from consolidated entities                   --             --             --             --
                                                    -------------  -------------  -------------  -------------
 (Loss) income before income taxes and
    discontinued operations                                   458             --            679          1,894

 Income tax benefit (expense)                                  --             --             --             --
                                                    -------------  -------------  -------------  -------------

 (Loss) income from continuing operations                     458             --            679          1,894

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

                                                    -------------  -------------  -------------  -------------
 Net (loss) income                                            458             --            679          1,894
                                                    =============  =============  =============  =============
</Table>



<PAGE>




MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)

<Table>
<Caption>
                                                    MERISTAR SUB    MERISTAR SUB    MERISTAR SUB   MERISTAR SUB    MERISTAR SUB
                                                       4E, L.P.        1B, LLC         5F, L.P.       6G, LLC         8C, LLC
                                                    -------------   -------------   -------------  -------------   -------------
<S>                                                 <C>             <C>             <C>            <C>             <C>
 Revenue:
    Hotel operations:                                          --              --              --             --              --
       Rooms                                                   --              --              --             --              --
       Food and beverage                                       --              --              --             --              --
       Other hotel operations                                  --              --              --             --              --
    Office rental, parking and other revenue                    3              (4)             --             --              --
 Participating lease revenue                                  720           1,123           1,429          1,913              --
                                                    -------------   -------------   -------------  -------------   -------------
Total revenue                                                 723           1,119           1,429          1,913              --
                                                    -------------   -------------   -------------  -------------   -------------

Hotel operating expenses:
       Rooms                                                   --              --              --             --              --
       Food and beverage                                       --              --              --             --              --
       Other hotel operating departments                       --              --              --             --              --
    Office rental, parking and other expenses                  --              --              --             --              --
Other operating expenses:                                      --              --              --             --              --
       General and administrative, hotel                       --              --              --             --              --
       General and administrative, corporate                   --              --              --             --              --
       Property operating costs                                --              --              --             --              --
       Depreciation and amortization                          149             249             391            362              --
       Property taxes, insurance and other                    314              55             187            197              --
       Loss on asset impairment                               981              --              --             --              --
                                                    -------------   -------------   -------------  -------------   -------------
Operating expenses                                          1,444             304             578            559              --
                                                    -------------   -------------   -------------  -------------   -------------

 Operating income (loss)                                     (721)            815             851          1,354              --
                                                    -------------   -------------   -------------  -------------   -------------

 Minority interest                                             --              --              --             --              --
 Interest expense, net                                         --              --              --             --              --
 Loss on early extinguishments of debt                         --              --              --             --              --
 Equity in income from consolidated entities                   --              --              --             --              --
                                                    -------------   -------------   -------------  -------------   -------------
 (Loss) income before income taxes and
    discontinued operations                                  (721)            815             851          1,354              --

 Income tax benefit (expense)                                  --              --              --             --              --
                                                    -------------   -------------   -------------  -------------   -------------

 (Loss) income from continuing operations                    (721)            815             851          1,354              --

 Discontinued operations:
 (Loss) income from discontinued operations
  before income tax                                            --              --              --             --             (61)
   Income tax (expense) benefit                                --              --              --             --              --
                                                    -------------   -------------   -------------  -------------   -------------
   (Loss) income from discontinued operations                  --              --              --             --             (61)
                                                    -------------   -------------   -------------  -------------   -------------
 Net (loss) income                                           (721)            815             851          1,354             (61)
                                                    =============   =============   =============  =============   =============

<Caption>

                                                    MERISTAR SUB    MERISTAR SUB    MERISTAR SUB   MERISTAR SUB
                                                      4C, L.P.        4H, L.P.         7E, LLC        3D, LLC
                                                    -------------   -------------   -------------  -------------
<S>                                                 <C>             <C>             <C>            <C>
 Revenue:
    Hotel operations:                                          --              --              --             --
       Rooms                                                   --              --              --             --
       Food and beverage                                       --              --              --             --
       Other hotel operations                                  --              --              --             --
    Office rental, parking and other revenue                   --              --               1             --
 Participating lease revenue                                   --              --             689            754
                                                    -------------   -------------   -------------  -------------
Total revenue                                                  --              --             690            754
                                                    -------------   -------------   -------------  -------------

Hotel operating expenses:
       Rooms                                                   --              --              --             --
       Food and beverage                                       --              --              --             --
       Other hotel operating departments                       --              --              --             --
    Office rental, parking and other expenses                  --              --              --             --
Other operating expenses:                                      --              --              --             --
       General and administrative, hotel                       --              --              --             --
       General and administrative, corporate                   --              --              --             --
       Property operating costs                                --              --              --             --
       Depreciation and amortization                           --              --             313            382
       Property taxes, insurance and other                     --              --             100            126
       Loss on asset impairment                                --              --              --             --
                                                    -------------   -------------   -------------  -------------
Operating expenses                                             --              --             413            508
                                                    -------------   -------------   -------------  -------------

 Operating income (loss)                                       --              --             277            246
                                                    -------------   -------------   -------------  -------------

 Minority interest                                             --              --              --             --
 Interest expense, net                                         --              --              --             --
 Loss on early extinguishments of debt                         --              --              --             --
 Equity in income from consolidated entities                   --              --              --             --
                                                    -------------   -------------   -------------  -------------
 (Loss) income before income taxes and
    discontinued operations                                    --              --             277            246

 Income tax benefit (expense)                                  --              --              --             --
                                                    -------------   -------------   -------------  -------------

 (Loss) income from continuing operations                      --              --             277            246

 Discontinued operations:
 (Loss) income from discontinued operations
  before income tax                                            --            (403)             --             --
   Income tax (expense) benefit                                --              --              --             --
                                                    -------------   -------------   -------------  -------------
   (Loss) income from discontinued operations                  --            (403)             --             --
                                                    -------------   -------------   -------------  -------------
 Net (loss) income                                             --            (403)            277            246
                                                    =============   =============   =============  =============
</Table>



<PAGE>



MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)

<Table>
<Caption>
                                                                    MERISTAR SUB
                                                    MERISTAR SUB      7A JOINT      MERISTAR SUB   MERISTAR SUB   MERISTAR SUB
                                                       1A, LLC         VENTURE         2B, LLC        3A, LLC        4A, LLC
                                                    -------------   -------------   -------------  -------------  -------------
<S>                                                 <C>             <C>             <C>            <C>            <C>
 Revenue:
    Hotel operations:                                          --              --              --             --             --
       Rooms                                                   --              --              --             --             --
       Food and beverage                                       --              --              --             --             --
       Other hotel operations                                  --              --              --             --             --
    Office rental, parking and other revenue                   --              --              --             --             --
 Participating lease revenue                                   --              --              --             --             --
                                                    -------------   -------------   -------------  -------------  -------------
Total revenue                                                  --              --              --             --             --
                                                    -------------   -------------   -------------  -------------  -------------

Hotel operating expenses:
       Rooms                                                   --              --              --             --             --
       Food and beverage                                       --              --              --             --             --
       Other hotel operating departments                       --              --              --             --             --
    Office rental, parking and other expenses                  --              --              --             --             --
Other operating expenses:                                      --              --              --             --             --
       General and administrative, hotel                       --              --              --             --             --
       General and administrative, corporate                   --              --              --             --             --
       Property operating costs                                --              --              --             --             --
       Depreciation and amortization                           --              --              --             --             --
       Property taxes, insurance and other                     --              --              --             --             --
       Loss on asset impairment                                --              --              --             --             --
                                                    -------------   -------------   -------------  -------------  -------------
Operating expenses                                             --              --              --             --             --
                                                    -------------   -------------   -------------  -------------  -------------

 Operating income (loss)                                       --              --              --             --             --
                                                    -------------   -------------   -------------  -------------  -------------

 Minority interest                                             --              --              --             --             --
 Interest expense, net                                         --              --              --             --             --
 Loss on early extinguishments of debt                         --              --              --             --             --
 Equity in income from consolidated entities                   --              --              --             --             --
                                                    -------------   -------------   -------------  -------------  -------------
 (Loss) income before income taxes and
    discontinued operations                                    --              --              --             --             --

 Income tax benefit (expense)                                  --              --              --             --             --
                                                    -------------   -------------   -------------  -------------  -------------

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

 Discontinued operations:
 (Loss) income from discontinued operations
  before income tax                                          (167)           (713)             --             89             97
   Income tax (expense) benefit                                --              --              --             --             --
                                                    -------------   -------------   -------------  -------------  -------------
   (Loss) income from discontinued operations                (167)           (713)             --             89             97

                                                    -------------   -------------   -------------  -------------  -------------
 Net (loss) income                                           (167)           (713)             --             89             97
                                                    =============   =============   =============  =============  =============

<Caption>

                                                    MERISTAR SUB    MERISTAR SUB  MERISTAR SUB    MDV LIMITED
                                                       4D, LLC        2A, LLC        6L, LLC      PARTNERSHIP
                                                    -------------  -------------  -------------  -------------
<S>                                                 <C>            <C>            <C>            <C>
 Revenue:
    Hotel operations:                                          --             --             --             --
       Rooms                                                   --             --             --             --
       Food and beverage                                       --             --             --             --
       Other hotel operations                                  --             --             --             --
    Office rental, parking and other revenue                   --             --             --             --
 Participating lease revenue                                   --             --             --            263
                                                    -------------  -------------  -------------  -------------
Total revenue                                                  --             --             --            263
                                                    -------------  -------------  -------------  -------------

Hotel operating expenses:
       Rooms                                                   --             --             --             --
       Food and beverage                                       --             --             --             --
       Other hotel operating departments                       --             --             --             --
    Office rental, parking and other expenses                  --             --             --             --
Other operating expenses:                                      --             --             --             --
       General and administrative, hotel                       --             --             --             --
       General and administrative, corporate                   --             --             --             --
       Property operating costs                                --             --             --             --
       Depreciation and amortization                           --             --             --             70
       Property taxes, insurance and other                     --             --             --             63
       Loss on asset impairment                                --             --             --             --
                                                    -------------  -------------  -------------  -------------
Operating expenses                                             --             --             --            133
                                                    -------------  -------------  -------------  -------------

 Operating income (loss)                                       --             --             --            130
                                                    -------------  -------------  -------------  -------------

 Minority interest                                             --             --             --             --
 Interest expense, net                                         --             --             --             --
 Loss on early extinguishments of debt                         --             --             --             --
 Equity in income from consolidated entities                   --             --             --             --
                                                    -------------  -------------  -------------  -------------
 (Loss) income before income taxes and
    discontinued operations                                    --             --             --            130

 Income tax benefit (expense)                                  --             --             --             --
                                                    -------------  -------------  -------------  -------------

 (Loss) income from continuing operations                      --             --             --            130

 Discontinued operations:
 (Loss) income from discontinued operations
  before income tax                                            --             --          1,852             --
   Income tax (expense) benefit                                --             --             --             --
                                                    -------------  -------------  -------------  -------------
   (Loss) income from discontinued operations                  --             --          1,852             --

                                                    -------------  -------------  -------------  -------------
 Net (loss) income                                             --             --          1,852            130
                                                    =============  =============  =============  =============
</Table>


<PAGE>



 MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
 CONSOLIDATING STATEMENT OF OPERATIONS
 SIX MONTHS ENDED JUNE 30, 2004
 UNAUDITED
 (DOLLARS IN THOUSANDS)

<Table>
<Caption>
                                                     MERISTAR SUB     MERISTAR SUB    MERISTAR SUB     MERISTAR SUB    MERISTAR SUB
                                                       5C, LLC          6J, LLC         1D, L.P.        7B, L.P.         7D, LLC
                                                     -------------   -------------   -------------   -------------    -------------
<S>                                                  <C>             <C>             <C>             <C>              <C>
 Revenue:
    Hotel operations:                                           --              --              --              --               --
       Rooms                                                    --              --              --              --               --
       Food and beverage                                        --              --              --              --               --
       Other hotel operations                                   --              --              --              --               --
    Office rental, parking and other revenue                    --              --             140              --              710
 Participating lease revenue                                    --           1,250           2,513              --            2,935
                                                     -------------   -------------   -------------   -------------    -------------
Total revenue                                                   --           1,250           2,653              --            3,645
                                                     -------------   -------------   -------------   -------------    -------------

Hotel operating expenses:
       Rooms                                                    --              --              --              --               --
       Food and beverage                                        --              --              --              --               --
       Other hotel operating departments                        --              --              --              --               --
    Office rental, parking and other expenses                   --              --              63              --              415
Other operating expenses:                                       --              --              --              --               --
       General and administrative, hotel                        --              --              --              --               --
       General and administrative, corporate                    --              --              --              --               --
       Property operating costs                                 --              --              --              --               --
       Depreciation and amortization                            --             281           1,136              --              862
       Property taxes, insurance and other                      --             146             807              --            1,305
       Loss on asset impairment                                 --              --              --              --               --
                                                     -------------   -------------   -------------   -------------    -------------
Operating expenses                                              --             427           2,006              --            2,582
                                                     -------------   -------------   -------------   -------------    -------------

 Operating income (loss)                                        --             823             647              --            1,063
                                                     -------------   -------------   -------------   -------------    -------------

 Minority interest                                              --              --              --              --               --
 Interest expense, net                                          --              --              --              --               --
 Loss on early extinguishments of debt                          --              --              --              --               --
 Equity in income from consolidated entities                    --              --              --              --               --
                                                     -------------   -------------   -------------   -------------    -------------
 (Loss) income before income taxes and
    discontinued operations                                     --             823             647              --            1,063

 Income tax benefit (expense)                                   --              --              --              --               --
                                                     -------------   -------------   -------------   -------------    -------------

 (Loss) income from continuing operations                       --             823             647              --            1,063

 Discontinued operations:
 (Loss) income from discontinued operations
  before income tax                                             --              --              --            (787)              --
   Income tax (expense) benefit                                 --              --              --              --               --
                                                     -------------   -------------   -------------   -------------    -------------
   (Loss) income from discontinued operations                   --              --              --            (787)              --

                                                     -------------   -------------   -------------   -------------    -------------
 Net (loss) income                                              --             823             647            (787)           1,063
                                                     =============   =============   =============   =============    =============

<Caption>

                                                       MERISTAR SUB     MERISTAR SUB    MERISTAR SUB     MERISTAR SUB
                                                         7G, LLC          6B, LLC         4I, L.P.         5D, LLC
                                                     -------------   -------------   -------------   -------------
<S>                                                  <C>             <C>             <C>             <C>
 Revenue:
    Hotel operations:                                           --              --              --              --
       Rooms                                                    --              --              --              --
       Food and beverage                                        --              --              --              --
       Other hotel operations                                   --              --              --              --
    Office rental, parking and other revenue                    --              --              --              --
 Participating lease revenue                                    --             593              --           1,101
                                                     -------------   -------------   -------------   -------------
Total revenue                                                   --             593              --           1,101
                                                     -------------   -------------   -------------   -------------

Hotel operating expenses:
       Rooms                                                    --              --              --              --
       Food and beverage                                        --              --              --              --
       Other hotel operating departments                        --              --              --              --
    Office rental, parking and other expenses                   --              --              --              --
Other operating expenses:                                       --              --              --              --
       General and administrative, hotel                        --              --              --              --
       General and administrative, corporate                    --              --              --              --
       Property operating costs                                 --              --              --              --
       Depreciation and amortization                            --             224              --             738
       Property taxes, insurance and other                      --             112              --             102
       Loss on asset impairment                                 --              --              --              --
                                                     -------------   -------------   -------------   -------------
Operating expenses                                              --             336              --             840
                                                     -------------   -------------   -------------   -------------

 Operating income (loss)                                        --             257              --             261
                                                     -------------   -------------   -------------   -------------

 Minority interest                                              --              --              --              --
 Interest expense, net                                          --              --              --            (647)
 Loss on early extinguishments of debt                          --              --              --              --
 Equity in income from consolidated entities                    --              --              --              --
                                                     -------------   -------------   -------------   -------------
 (Loss) income before income taxes and
    discontinued operations                                     --             257              --            (386)

 Income tax benefit (expense)                                   --              --              --              --
                                                     -------------   -------------   -------------   -------------

 (Loss) income from continuing operations                       --             257              --            (386)

 Discontinued operations:
 (Loss) income from discontinued operations
  before income tax                                            103              --              --              --
   Income tax (expense) benefit                                 --              --              --              --
                                                     -------------   -------------   -------------   -------------
   (Loss) income from discontinued operations                  103              --              --              --

                                                     -------------   -------------   -------------   -------------
 Net (loss) income                                             103             257              --            (386)
                                                     =============   =============   =============   =============
</Table>


<PAGE>


MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)

<Table>
<Caption>
                                                    MERISTAR SUB    MERISTAR SUB    AGH PSS I,   MERISTAR SUB   MERISTAR SUB
                                                      5H, LLC         7H, LLC          INC.         2D, LLC        4F, L.P.
                                                    -------------  -------------  -------------  -------------  -------------
<S>                                                 <C>            <C>            <C>            <C>            <C>
 Revenue:
    Hotel operations:                                          --             --             --             --             --
       Rooms                                                   --             --             --             --             --
       Food and beverage                                       --             --             --             --             --
       Other hotel operations                                  --             --             --             --             --
    Office rental, parking and other revenue                   --             --             --             --             10
 Participating lease revenue                                   --             --             --             --            984
                                                    -------------  -------------  -------------  -------------  -------------
Total revenue                                                  --             --             --             --            994
                                                    -------------  -------------  -------------  -------------  -------------

Hotel operating expenses:
       Rooms                                                   --             --             --             --             --
       Food and beverage                                       --             --             --             --             --
       Other hotel operating departments                       --             --             --             --             --
    Office rental, parking and other expenses                  --             --             --             --             --
Other operating expenses:                                      --             --             --             --             --
       General and administrative, hotel                       --             --             --             --             --
       General and administrative, corporate                   --             --             --             --             --
       Property operating costs                                --             --             --             --             --
       Depreciation and amortization                           --             --             --             --            552
       Property taxes, insurance and other                     --             --             --             --            187
       Loss on asset impairment                                --             --             --             --             --
                                                    -------------  -------------  -------------  -------------  -------------
Operating expenses                                             --             --             --             --            739
                                                    -------------  -------------  -------------  -------------  -------------

 Operating income (loss)                                       --             --             --             --            255
                                                    -------------  -------------  -------------  -------------  -------------

 Minority interest                                             --             --             --             --             --
 Interest expense, net                                         --             --             --             --             --
 Loss on early extinguishments of debt                         --             --             --             --             --
 Equity in income from consolidated entities                   --             --             --             --             --
                                                    -------------  -------------  -------------  -------------  -------------
 (Loss) income before income taxes and
    discontinued operations                                    --             --             --             --            255

 Income tax benefit (expense)                                  --             --             --             --             --
                                                    -------------  -------------  -------------  -------------  -------------

 (Loss) income from continuing operations                      --             --             --             --            255

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

                                                    -------------  -------------  -------------  -------------  -------------
 Net (loss) income                                             --             --             --             --            255
                                                    =============  =============  =============  =============  =============

<Caption>

                                                    MERISTAR SUB   MERISTAR SUB    MERISTAR SUB  MERISTAR SUB
                                                       5K, LLC        5M, LLC        1E, L.P.       5O, LLC
                                                    -------------  -------------  -------------  -------------
<S>                                                 <C>            <C>            <C>            <C>
 Revenue:
    Hotel operations:                                          --             --             --             --
       Rooms                                                   --             --             --             --
       Food and beverage                                       --             --             --             --
       Other hotel operations                                  --             --             --             --
    Office rental, parking and other revenue                   --             --             --             --
 Participating lease revenue                                1,263            991             --            471
                                                    -------------  -------------  -------------  -------------
Total revenue                                               1,263            991             --            471
                                                    -------------  -------------  -------------  -------------

Hotel operating expenses:
       Rooms                                                   --             --             --             --
       Food and beverage                                       --             --             --             --
       Other hotel operating departments                       --             --             --             --
    Office rental, parking and other expenses                  --             --             --             --
Other operating expenses:                                      --             --             --             --
       General and administrative, hotel                       --             --             --             --
       General and administrative, corporate                   --             --             --             --
       Property operating costs                                --             --             --             --
       Depreciation and amortization                          648            238             --            114
       Property taxes, insurance and other                    186            135             --             52
       Loss on asset impairment                                --             --             --             --
                                                    -------------  -------------  -------------  -------------
Operating expenses                                            834            373             --            166
                                                    -------------  -------------  -------------  -------------

 Operating income (loss)                                      429            618             --            305
                                                    -------------  -------------  -------------  -------------

 Minority interest                                             --             --             --             --
 Interest expense, net                                         --             --             --             --
 Loss on early extinguishments of debt                         --             --             --             --
 Equity in income from consolidated entities                   --             --             --             --
                                                    -------------  -------------  -------------  -------------
 (Loss) income before income taxes and
    discontinued operations                                   429            618             --            305

 Income tax benefit (expense)                                  --             --             --             --
                                                    -------------  -------------  -------------  -------------

 (Loss) income from continuing operations                     429            618             --            305

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

                                                    -------------  -------------  -------------  -------------
 Net (loss) income                                            429            618             --            305
                                                    =============  =============  =============  =============
</Table>



<PAGE>



MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)

<Table>
<Caption>
                                                    MERISTAR SUB    MERISTAR SUB    MERISTAR SUB   MERISTAR SUB   MERISTAR SUB
                                                      4B, L.P.         2C, LLC        4G, L.P.       3B, LLC         5G, L.P.
                                                    -------------   -------------   -------------  -------------  -------------
<S>                                                 <C>             <C>             <C>            <C>            <C>
 Revenue:
    Hotel operations:                                          --              --              --             --             --
       Rooms                                                   --              --              --             --             --
       Food and beverage                                       --              --              --             --             --
       Other hotel operations                                  --              --              --             --             --
    Office rental, parking and other revenue                   --              --              --             --             14
 Participating lease revenue                                   --              --           1,066             --          5,506
                                                    -------------   -------------   -------------  -------------  -------------
Total revenue                                                  --              --           1,066             --          5,520
                                                    -------------   -------------   -------------  -------------  -------------

Hotel operating expenses:
       Rooms                                                   --              --              --             --             --
       Food and beverage                                       --              --              --             --             --
       Other hotel operating departments                       --              --              --             --             --
    Office rental, parking and other expenses                  --              --              --             --             --
Other operating expenses:                                      --              --              --             --             --
       General and administrative, hotel                       --              --              --             --             --
       General and administrative, corporate                   --              --              --             --             --
       Property operating costs                                --              --              --             --             --
       Depreciation and amortization                           --              --             223             --          3,150
       Property taxes, insurance and other                     --              --             257             --            819
       Loss on asset impairment                                --              --             245             --             --
                                                    -------------   -------------   -------------  -------------  -------------
Operating expenses                                             --              --             725             --          3,969
                                                    -------------   -------------   -------------  -------------  -------------

 Operating income (loss)                                       --              --             341             --          1,551
                                                    -------------   -------------   -------------  -------------  -------------

 Minority interest                                             --              --              --             --             --
 Interest expense, net                                         --              --              --             --             --
 Loss on early extinguishments of debt                         --              --              --             --             --
 Equity in income from consolidated entities                   --              --              --             --             --
                                                    -------------   -------------   -------------  -------------  -------------
 (Loss) income before income taxes and
    discontinued operations                                    --              --             341             --          1,551

 Income tax benefit (expense)                                  --              --              --             --             --
                                                    -------------   -------------   -------------  -------------  -------------

 (Loss) income from continuing operations                      --              --             341             --          1,551

 Discontinued operations:
 (Loss) income from discontinued operations
  before income tax                                          (217)         (1,645)             --             --             --
   Income tax (expense) benefit                                --              --              --             --             --
                                                    -------------   -------------   -------------  -------------  -------------
   (Loss) income from discontinued operations                (217)         (1,645)             --             --             --

                                                    -------------   -------------   -------------  -------------  -------------
 Net (loss) income                                           (217)         (1,645)            341             --          1,551
                                                    =============   =============   =============  =============  =============

<Caption>

                                                     MERISTAR SUB   MERISTAR SUB  MERISTAR SUB   MERISTAR SUB
                                                       5P, LLC        5J, LLC        5Q, LLC        5A, LLC
                                                    -------------  -------------  -------------  -------------
<S>                                                 <C>            <C>            <C>            <C>
 Revenue:
    Hotel operations:                                          --             --             --             --
       Rooms                                                   --             --             --             --
       Food and beverage                                       --             --             --             --
       Other hotel operations                                  --             --             --             --
    Office rental, parking and other revenue                   --             --             --             60
 Participating lease revenue                                  488          5,286          1,087          3,115
                                                    -------------  -------------  -------------  -------------
Total revenue                                                 488          5,286          1,087          3,175
                                                    -------------  -------------  -------------  -------------

Hotel operating expenses:
       Rooms                                                   --             --             --             --
       Food and beverage                                       --             --             --             --
       Other hotel operating departments                       --             --             --             --
    Office rental, parking and other expenses                  --             --             --             --
Other operating expenses:                                      --             --             --             --
       General and administrative, hotel                       --             --             --             --
       General and administrative, corporate                   --             --             --             --
       Property operating costs                                --             --             --             --
       Depreciation and amortization                            2          2,810            294            532
       Property taxes, insurance and other                      3            873            154            390
       Loss on asset impairment                                --             --             --             --
                                                    -------------  -------------  -------------  -------------
Operating expenses                                              5          3,683            448            922
                                                    -------------  -------------  -------------  -------------

 Operating income (loss)                                      483          1,603            639          2,253
                                                    -------------  -------------  -------------  -------------

 Minority interest                                             --             --             --             --
 Interest expense, net                                         --             --             --         (1,417)
 Loss on early extinguishments of debt                         --             --             --             --
 Equity in income from consolidated entities                   --             --             --             --
                                                    -------------  -------------  -------------  -------------
 (Loss) income before income taxes and
    discontinued operations                                   483          1,603            639            836

 Income tax benefit (expense)                                  --             --             --             --
                                                    -------------  -------------  -------------  -------------

 (Loss) income from continuing operations                     483          1,603            639            836

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

                                                    -------------  -------------  -------------  -------------
 Net (loss) income                                            483          1,603            639            836
                                                    =============  =============  =============  =============
</Table>



<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)

<Table>
<Caption>
                                                                                     MERISTAR        MERISTAR       GUARANTOR
                                                    MERISTAR SUB    MERISTAR SUB   PENTAGON CITY,  HOTEL LESSEE,   SUBSIDIARIES
                                                       8D, LLC         4J, LLC          LLC            INC.            TOTAL
                                                    -------------   -------------  -------------   -------------   -------------
<S>                                                 <C>             <C>            <C>             <C>             <C>
 Revenue:
    Hotel operations:                                          --              --             --              --              --
       Rooms                                                   --              --             --         277,284         277,284
       Food and beverage                                       --              --             --         110,450         110,450
       Other hotel operations                                  --              --             --          34,397          34,397
    Office rental, parking and other revenue                   --             104             --             161           1,306
 Participating lease revenue                                   --           1,353          1,406              --          52,106
                                                    -------------   -------------  -------------   -------------   -------------
Total revenue                                                  --           1,457          1,406         422,292         475,543
                                                    -------------   -------------  -------------   -------------   -------------

Hotel operating expenses:
       Rooms                                                   --              --             --          67,795          67,795
       Food and beverage                                       --              --             --          79,923          79,923
       Other hotel operating departments                       --              --             --          21,162          21,162
    Office rental, parking and other expenses                  --             216             --              --             694
Other operating expenses:                                      --              --             --              --              --
       General and administrative, hotel                       --              --              4          65,747          65,751
       General and administrative, corporate                   --              --             --              90              90
       Property operating costs                                --              --             --          62,941          62,941
       Depreciation and amortization                           --             632            355              84          19,395
       Property taxes, insurance and other                     --             172            177         135,016         144,140
       Loss on asset impairment                                --              --             --              --           1,226
                                                    -------------   -------------  -------------   -------------   -------------
Operating expenses                                             --           1,020            536         432,758         463,117
                                                    -------------   -------------  -------------   -------------   -------------

 Operating income (loss)                                       --             437            870         (10,466)         12,426
                                                    -------------   -------------  -------------   -------------   -------------

 Minority interest                                             --              --             --              --              --
 Interest expense, net                                         --              --             (9)         (3,526)         (5,599)
 Loss on early extinguishments of debt                         --              --             --              --              --
 Equity in income from consolidated entities                   --              --             --              --              --
                                                    -------------   -------------  -------------   -------------   -------------
 (Loss) income before income taxes and
    discontinued operations                                    --             437            861         (13,992)          6,827
 Income tax benefit (expense)                                  --              --             --              --              --
                                                    -------------   -------------  -------------   -------------   -------------

 (Loss) income from continuing operations                      --             437            861         (13,992)          6,827

 Discontinued operations:
 (Loss) income from discontinued operations
  before income tax                                          (857)             --             --         (17,175)        (19,884)
   Income tax (expense) benefit                                --              --             --              --              --
                                                    -------------   -------------  -------------   -------------   -------------
   (Loss) income from discontinued operations                (857)             --             --         (17,175)        (19,884)
                                                    -------------   -------------  -------------   -------------   -------------
 Net (loss) income                                           (857)            437            861         (31,167)        (13,057)
                                                    =============   =============  =============   =============   =============

<Caption>

                                                                       TOTAL
                                                    ELIMINATIONS    CONSOLIDATED
                                                    -------------   -------------
<S>                                                 <C>             <C>
 Revenue:
    Hotel operations:                                          --              --
       Rooms                                                   --         277,284
       Food and beverage                                       --         110,450
       Other hotel operations                                  --          34,397
    Office rental, parking and other revenue                   --           5,828
 Participating lease revenue                             (121,074)             --
                                                    -------------   -------------
Total revenue                                            (121,074)        427,959
                                                    -------------   -------------

Hotel operating expenses:
       Rooms                                                   --          67,795
       Food and beverage                                       --          79,923
       Other hotel operating departments                       --          21,162
    Office rental, parking and other expenses                  --           1,255
Other operating expenses:                                      --              --
       General and administrative, hotel                       --          65,774
       General and administrative, corporate                   --           7,106
       Property operating costs                                --          62,941
       Depreciation and amortization                           --          50,724
       Property taxes, insurance and other               (121,074)         32,860
       Loss on asset impairment                                --           1,536
                                                    -------------   -------------
Operating expenses                                       (121,074)        391,076
                                                    -------------   -------------

 Operating income (loss)                                       --          36,883
                                                    -------------   -------------

 Minority interest                                             --              24
 Interest expense, net                                         --         (64,103)
 Loss on early extinguishments of debt                         --          (7,903)
 Equity in income from consolidated entities               (6,014)             --
                                                    -------------   -------------
 (Loss) income before income taxes and
    discontinued operations                                (6,014)        (35,099)
 Income tax benefit (expense)                                  --             314
                                                    -------------   -------------
 (Loss) income from continuing operations                  (6,014)        (34,785)

 Discontinued operations:
 (Loss) income from discontinued operations
  before income tax                                            --         (18,314)
   Income tax (expense) benefit                                --             161
                                                    -------------   -------------
   (Loss) income from discontinued operations                  --         (18,153)
                                                    -------------   -------------
 Net (loss) income                                         (6,014)        (52,938)
                                                    =============   =============
</Table>


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

<Table>
<Caption>
                                                    MERISTAR
                                                 HOSPITALITY OP,   NON-GUARANTOR   MERISTAR SUB7C,   AGH UPREIT,   MERISTAR SUB 5N,
                                                      L.P.          SUBSIDIARIES          LLC            LLC             LLC
                                                 ---------------  ---------------  --------------- --------------- ----------------
<S>                                              <C>              <C>              <C>             <C>             <C>
 Revenue:
    Hotel operations:
       Rooms                                                  --               --               --              --              --
       Food and beverage                                      --               --               --              --              --
       Other hotel operations                                 --               --               --              --              --
    Office rental, parking and other revenue               4,211            2,380               --              --              --
 Participating lease revenue                                  --           54,691               --              --             515
                                                 ---------------  ---------------  --------------- --------------- ---------------
Total revenue                                              4,211           57,071               --              --             515
                                                 ---------------  ---------------  --------------- --------------- ---------------
Hotel operating expenses:
       Rooms                                                  --               --               --              --              --
       Food and beverage                                      --               --               --              --              --
       Other hotel operating expenses                         --               --               --              --              --
    Office rental, parking and other expenses                 --              814               --              --              --
Other operating expenses:
       General and administrative, hotel                      --             (261)              --              --              --
       General and administrative, corporate               6,104               --               --              --              --
       Property operating costs                               --               --               --              --              --
       Depreciation and amortization                       5,072           22,031               --              --              69
       Property taxes, insurance and other                 2,029            9,456               --              --              52
       Loss on asset impairments                              --           33,644               --              --              --
                                                 ---------------  ---------------  --------------- --------------- ---------------
 Operating expenses                                       13,205           65,684               --              --             121
                                                 ---------------  ---------------  --------------- --------------- ---------------
 Operating income (loss)                                  (8,994)          (8,613)              --              --             394
 Minority interest                                            (6)              --               --              --              --
 Interest expense, net                                   (52,566)         (13,679)              --              --              --
 Equity in loss from consolidated entities              (230,202)              --               --              --              --
                                                 ---------------  ---------------  --------------- --------------- ---------------
 (Loss) income before income taxes and
    discontinued operations                             (291,768)         (22,292)              --              --             394

 Income tax (expense) benefit                                119               --               --              --              --
                                                 ---------------  ---------------  --------------- --------------- ---------------
 (Loss) income from continuing operations               (291,649)         (22,292)              --              --             394

 Discontinued operations:
     (Loss) income from discontinued
      operations before income tax                         1,786          (83,512)              --              --              --
      Income tax (expense) benefit                             6               --               --              --              --
                                                 ---------------  ---------------  --------------- --------------- ---------------
   (Loss) income on discontinued operations                1,792          (83,512)              --              --              --
                                                 ---------------  ---------------  --------------- --------------- ---------------
 Net (loss) income                                      (289,857)        (105,804)              --              --             394
                                                 ===============  ===============  =============== =============== ===============

<Caption>

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

 Income tax (expense) benefit                                 --              --              --              --              --
                                                 --------------- --------------- --------------- --------------- ---------------
 (Loss) income from continuing operations                     --             666              --             270           1,724

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


<PAGE>

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

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

 Income tax (expense) benefit                              --                --              --               --               --
                                               --------------    --------------  --------------   --------------   --------------
 (Loss) income from continuing operations                 (48)              335          (1,495)             415              416

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

<Caption>

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

 Income tax (expense) benefit                             --               --               --               --                --
                                               -------------   --------------   --------------   --------------    --------------
 (Loss) income from continuing operations                 --              539            1,647          (14,549)              887

 Discontinued operations:
     (Loss) income from discontinued
      operations before income tax                        --               --               --               --                --
      Income tax (expense) benefit                        --               --               --               --                --
                                               -------------   --------------   --------------   --------------    --------------
   (Loss) income on discontinued operations               --               --               --               --                --
                                               -------------   --------------   --------------   --------------    --------------
 Net (loss) income                                        --              539            1,647          (14,549)              887
                                               =============   ==============   ==============   ==============    ==============
</Table>


<PAGE>


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

<Table>
<Caption>
                                                MERISTAR SUB 5F,   MERISTAR SUB   MERISTAR SUB 8C, MERISTAR SUB 4C,  MERISTAR SUB
                                                      L.P.           6G, LLC           LLC               L.P.          4H, L.P.
                                                ----------------  -------------- ---------------- ---------------- --------------
<S>                                             <C>               <C>            <C>              <C>              <C>
 Revenue:
    Hotel operations:
       Rooms                                                 --               --              --               --              --
       Food and beverage                                     --               --              --               --              --
       Other hotel operations                                --               --              --               --              --
    Office rental, parking and other revenue                 --               --              --               --              --
 Participating lease revenue                              1,487            1,248              --               --              --
                                                 --------------   --------------  --------------   --------------  --------------
Total revenue                                             1,487            1,248              --               --              --
                                                 --------------   --------------  --------------   --------------  --------------
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                        534              430              --               --              --
       Property taxes, insurance and other                  198              189              --               --              --
       Loss on asset impairments                          7,231               --              --               --              --
                                                 --------------   --------------  --------------   --------------  --------------
 Operating expenses                                       7,963              619              --               --              --
                                                 --------------   --------------  --------------   --------------  --------------
 Operating income (loss)                                 (6,476)             629              --               --              --
 Minority interest                                           --               --              --               --              --
 Interest expense, net                                       --               --              --               --              --
 Equity in loss from consolidated entities                   --               --              --               --              --
                                                 --------------   --------------  --------------   --------------  --------------
 (Loss) income before income taxes and
    discontinued operations                              (6,476)             629              --               --              --

 Income tax (expense) benefit                                --               --              --               --              --
                                                 --------------   --------------  --------------   --------------  --------------
 (Loss) income from continuing operations                (6,476)             629              --               --              --

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

<Caption>
                                                MERISTAR SUB 7E, MERISTAR SUB 3D, MERISTAR SUB 1A, MERISTAR SUB 5E, MERISTAR SUB 7A
                                                       LLC             LLC              LLC              LLC         JOINT VENTURE
                                                ---------------- ---------------- ---------------- ---------------- ---------------
<S>                                             <C>              <C>              <C>              <C>              <C>
 Revenue:
    Hotel operations:
       Rooms                                                 --              --                --              --               --
       Food and beverage                                     --              --                --              --               --
       Other hotel operations                                --              --                --              --               --
    Office rental, parking and other revenue                 --               1                --              --               --
 Participating lease revenue                                673             726                --           2,940               --
                                                 --------------  --------------    --------------  --------------   --------------
Total revenue                                               673             727                --           2,940               --
                                                 --------------  --------------    --------------  --------------   --------------
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                        309             392                --             962               --
       Property taxes, insurance and other                   99             117                --             201               --
       Loss on asset impairments                             --              --                --              --               --
                                                 --------------  --------------    --------------  --------------   --------------
 Operating expenses                                         408             509                --           1,163               --
                                                 --------------  --------------    --------------  --------------   --------------
 Operating income (loss)                                    265             218                --           1,777               --
 Minority interest                                           --              --                --              --               --
 Interest expense, net                                       --              --                --              --               --
 Equity in loss from consolidated entities                   --              --                --              --               --
                                                 --------------  --------------    --------------  --------------   --------------
 (Loss) income before income taxes and
    discontinued operations                                 265             218                --           1,777               --

 Income tax (expense) benefit                                --              --                --              --               --
                                                 --------------  --------------    --------------  --------------   --------------
 (Loss) income from continuing operations                   265             218                --           1,777               --

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


<PAGE>

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

<Table>
<Caption>
                                                 MERISTAR SUB  MERISTAR SUB 2B, MERISTAR SUB 3A, MERISTAR SUB 4A,  MERISTAR SUB 4D,
                                                    6K, LLC          LLC              LLC              LLC                LLC
                                               --------------- ---------------- ---------------- ----------------  ----------------
<S>                                            <C>             <C>              <C>              <C>               <C>
 Revenue:
    Hotel operations:
       Rooms                                                --              --               --               --               --
       Food and beverage                                    --              --               --               --               --
       Other hotel operations                               --              --               --               --               --
    Office rental, parking and other revenue                --              --               --               --               --
 Participating lease revenue                             2,040              --               --               --               --
                                               --------------- ---------------  ---------------  ---------------  ---------------
Total revenue                                            2,040              --               --               --               --
                                               --------------- ---------------  ---------------  ---------------  ---------------
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                       370              --               --               --               --
       Property taxes, insurance and other                 191              --               --               --               --
       Loss on asset impairments                            --              --               --               --               --
                                               --------------- ---------------  ---------------  ---------------  ---------------
 Operating expenses                                        561              --               --               --               --
                                               --------------- ---------------  ---------------  ---------------  ---------------
 Operating income (loss)                                 1,479              --               --               --               --
 Minority interest                                          --              --               --               --               --
 Interest expense, net                                      --              --               --               --               --
 Equity in loss from consolidated entities                  --              --               --               --               --
                                               --------------- ---------------  ---------------  ---------------  ---------------
 (Loss) income before income taxes and
    discontinued operations                              1,479              --               --               --               --

 Income tax (expense) benefit                               --              --               --               --               --
                                               --------------- ---------------  ---------------  ---------------  ---------------
 (Loss) income from continuing operations                1,479              --               --               --               --

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

<Caption>
                                               MERISTAR SUB 2A,  MERISTAR SUB 6L,   MDV LIMITED   MERISTAR SUB 5C, MERISTAR SUB 6J,
                                                     LLC               LLC          PARTNERSHIP         LLC                LLC
                                               ----------------  ---------------- --------------- ---------------- ----------------
<S>                                            <C>               <C>              <C>             <C>              <C>
 Revenue:
    Hotel operations:
       Rooms                                                 --               --               --              --               --
       Food and beverage                                     --               --               --              --               --
       Other hotel operations                                --               --               --              --               --
    Office rental, parking and other revenue                 --               --               --              --               --
 Participating lease revenue                                 --               --              253              --            1,051
                                                ---------------  ---------------  --------------- ---------------  ---------------
Total revenue                                                --               --              253              --            1,051
                                                ---------------  ---------------  --------------- ---------------  ---------------
Hotel operating expenses:
       Rooms                                                 --               --               --              --               --
       Food and beverage                                     --               --               --              --               --
       Other hotel operating expenses                        --               --               --              --               --
    Office rental, parking and other expenses                --               --               --              --               --
Other operating expenses:
       General and administrative, hotel                     --               --               --              --               --
       General and administrative, corporate                 --               --               --              --               --
       Property operating costs                              --               --               --              --               --
       Depreciation and amortization                         --               --               69              --              302
       Property taxes, insurance and other                   --               --               70              --              130
       Loss on asset impairments                             --               --               --              --               --
                                                ---------------  ---------------  --------------- ---------------  ---------------
 Operating expenses                                          --               --              139              --              432
                                                ---------------  ---------------  --------------- ---------------  ---------------
 Operating income (loss)                                     --               --              114              --              619
 Minority interest                                           --               --               --              --               --
 Interest expense, net                                       --               --               --              --                2
 Equity in loss from consolidated entities                   --               --               --              --               --
                                                ---------------  ---------------  --------------- ---------------  ---------------
 (Loss) income before income taxes and
    discontinued operations                                  --               --              114              --              621

 Income tax (expense) benefit                                --               --               --              --               --
                                                ---------------  ---------------  --------------- ---------------  ---------------
 (Loss) income from continuing operations                    --               --              114              --              621

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


<PAGE>


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

<Table>
<Caption>
                                               MERISTAR SUB 1D, MERISTAR SUB 7B, MERISTAR SUB 7D,  MERISTAR SUB   MERISTAR SUB 6B,
                                                      L.P.             L.P.            LLC            7G, LLC            LLC
                                               ---------------- ---------------- ---------------- --------------  ----------------
<S>                                            <C>              <C>              <C>              <C>             <C>
 Revenue:
    Hotel operations:
       Rooms                                                 --              --               --              --               --
       Food and beverage                                     --              --               --              --               --
       Other hotel operations                                --              --               --              --               --
    Office rental, parking and other revenue                  6              --               --              --               --
 Participating lease revenue                              2,429              --            3,665              --              550
                                                --------------- ---------------  --------------- ---------------  ---------------
Total revenue                                             2,435              --            3,665              --              550
                                                --------------- ---------------  --------------- ---------------  ---------------
Hotel operating expenses:
       Rooms                                                 --              --               --              --               --
       Food and beverage                                     --              --               --              --               --
       Other hotel operating expenses                        --              --               --              --               --
    Office rental, parking and other expenses                47              --              190              --               --
Other operating expenses:
       General and administrative, hotel                     25              --              177              --               --
       General and administrative, corporate                 --              --               --              --               --
       Property operating costs                              --              --               --              --               --
       Depreciation and amortization                      1,148              --              862              --              232
       Property taxes, insurance and other                  835              --            1,125              --              100
       Loss on asset impairments                             --              --               --              --               --
                                                --------------- ---------------  --------------- ---------------  ---------------
 Operating expenses                                       2,055              --            2,354              --              332
                                                --------------- ---------------  --------------- ---------------  ---------------
 Operating income (loss)                                    380              --            1,311              --              218
 Minority interest                                           --              --               --              --               --
 Interest expense, net                                       --              --               --              --               --
 Equity in loss from consolidated entities                   --              --               --              --               --
                                                --------------- ---------------  --------------- ---------------  ---------------
 (Loss) income before income taxes and
    discontinued operations                                 380              --            1,311              --              218

 Income tax (expense) benefit                                --              --               --              --               --
                                                --------------- ---------------  --------------- ---------------  ---------------
 (Loss) income from continuing operations                   380              --            1,311              --              218

 Discontinued operations:
     (Loss) income from discontinued
      operations before income tax                           --         (10,191)              --          (7,531)              --
      Income tax (expense) benefit                           --              --               --              --               --
                                                --------------- ---------------  --------------- ---------------  ---------------
   (Loss) income on discontinued operations                  --         (10,191)              --          (7,531)              --
                                                --------------- ---------------  --------------- ---------------  ---------------
 Net (loss) income                                          380         (10,191)           1,311          (7,531)             218
                                                =============== ===============  =============== ===============  ===============

<Caption>
                                               MERISTAR SUB 4I, MERISTAR SUB 5D,  MERISTAR SUB     MERISTAR SUB
                                                      L.P.             LLC           5H, LLC          7H, LLC      AGH PSS I, INC.
                                               ---------------- ---------------- ---------------  ---------------  ---------------
<S>                                            <C>              <C>              <C>              <C>              <C>
 Revenue:
    Hotel operations:
       Rooms                                                --               --               --               --               --
       Food and beverage                                    --               --               --               --               --
       Other hotel operations                               --               --               --               --               --
    Office rental, parking and other revenue                --               --               --               --               --
 Participating lease revenue                                --            1,024               --               --               --
                                               ---------------  ---------------  ---------------  ---------------  ---------------
Total revenue                                               --            1,024               --               --               --
                                               ---------------  ---------------  ---------------  ---------------  ---------------
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                        --              730               --               --               --
       Property taxes, insurance and other                  --              112               --               --               --
       Loss on asset impairments                            --               --               --               --               --
                                               ---------------  ---------------  ---------------  ---------------  ---------------
 Operating expenses                                         --              842               --               --               --
                                               ---------------  ---------------  ---------------  ---------------  ---------------
 Operating income (loss)                                    --              182               --               --               --
 Minority interest                                          --               --               --               --               --
 Interest expense, net                                      --             (644)              --               --               --
 Equity in loss from consolidated entities                  --               --               --               --               --
                                               ---------------  ---------------  ---------------  ---------------  ---------------
 (Loss) income before income taxes and
    discontinued operations                                 --             (462)              --               --               --

 Income tax (expense) benefit                               --               --               --               --               --
                                               ---------------  ---------------  ---------------  ---------------  ---------------
 (Loss) income from continuing operations                   --             (462)              --               --               --

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


<PAGE>


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

<Table>
<Caption>
                                               MERISTAR SUB 2D, MERISTAR SUB 4F,  MERISTAR SUB    MERISTAR SUB   MERISTAR SUB 1E,
                                                     LLC               L.P.          5K, LLC         5M, LLC            L.P.
                                               ---------------- ---------------- --------------- --------------- ----------------
<S>                                            <C>              <C>              <C>             <C>             <C>
 Revenue:
    Hotel operations:
       Rooms                                                 --               --              --              --              --
       Food and beverage                                     --               --              --              --              --
       Other hotel operations                                --               --              --              --              --
    Office rental, parking and other revenue                 --                7              --              --              --
 Participating lease revenue                                 --              981           1,259             976              --
                                                ---------------  --------------- --------------- --------------- ---------------
Total revenue                                                --              988           1,259             976              --
                                                ---------------  --------------- --------------- --------------- ---------------
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                         --              556             644             236              --
       Property taxes, insurance and other                   --              173             187             131              --
       Loss on asset impairments                             --               --              --              --              --
                                                ---------------  --------------- --------------- --------------- ---------------
 Operating expenses                                          --              729             831             367              --
                                                ---------------  --------------- --------------- --------------- ---------------
 Operating income (loss)                                     --              259             428             609              --
 Minority interest                                           --               --              --              --              --
 Interest expense, net                                       --               --              --              --              --
 Equity in loss from consolidated entities                   --               --              --              --              --
                                                ---------------  --------------- --------------- --------------- ---------------
 (Loss) income before income taxes and
    discontinued operations                                  --              259             428             609              --

 Income tax (expense) benefit                                --               --              --              --              --
                                                ---------------  --------------- --------------- --------------- ---------------
 (Loss) income from continuing operations                    --              259             428             609              --

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

<Caption>
                                                MERISTAR SUB   MERISTAR SUB 6M  MERISTAR SUB 4B,  MERISTAR SUB 6C, MERISTAR SUB 2C,
                                                   5O, LLC         COMPANY            L.P.               LLC              LLC
                                               --------------- ---------------  ----------------  ---------------- ----------------
<S>                                            <C>             <C>              <C>               <C>              <C>
 Revenue:
    Hotel operations:
       Rooms                                                --              --               --                --               --
       Food and beverage                                    --              --               --                --               --
       Other hotel operations                               --              --               --                --               --
    Office rental, parking and other revenue                --              --               --                 5               --
 Participating lease revenue                               440           2,077               --             1,402               --
                                               --------------- ---------------  ---------------   ---------------  ---------------
Total revenue                                              440           2,077               --             1,407               --
                                               --------------- ---------------  ---------------   ---------------  ---------------
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                       114             616               --               387               --
       Property taxes, insurance and other                  52             165               --               112               --
       Loss on asset impairments                            --              --               --                --               --
                                               --------------- ---------------  ---------------   ---------------  ---------------
 Operating expenses                                        166             781               --               499               --
                                               --------------- ---------------  ---------------   ---------------  ---------------
 Operating income (loss)                                   274           1,296               --               908               --
 Minority interest                                          --              --               --                --               --
 Interest expense, net                                      --              --               --                --               --
 Equity in loss from consolidated entities                  --              --               --                --               --
                                               --------------- ---------------  ---------------   ---------------  ---------------
 (Loss) income before income taxes and
    discontinued operations                                274           1,296               --               908               --

 Income tax (expense) benefit                               --              --               --                --               --
                                               --------------- ---------------  ---------------   ---------------  ---------------
 (Loss) income from continuing operations                  274           1,296               --               908               --

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


<PAGE>


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

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

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

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

<Caption>
                                                  MERISTAR SUB   MERISTAR SUB 5A, MERISTAR SUB 8D, MERISTAR SUB 4J, MERISTAR HOTEL
                                                     5Q, LLC          LLC               LLC             LLC           LESSEE, INC.
                                                 --------------- ---------------- ---------------- ---------------- ---------------
<S>                                              <C>             <C>              <C>              <C>              <C>
 Revenue:
    Hotel operations:
       Rooms                                                  --              --               --              --         266,706
       Food and beverage                                      --              --               --              --         107,520
       Other hotel operations                                 --              --               --              --          35,754
    Office rental, parking and other revenue                  --              56               --               3              --
 Participating lease revenue                               1,198           2,881               --           1,630              --
                                                 --------------- ---------------  --------------- --------------- ---------------
Total revenue                                              1,198           2,937               --           1,633         409,980
                                                 --------------- ---------------  --------------- --------------- ---------------
Hotel operating expenses:
       Rooms                                                  --              --               --              --          63,163
       Food and beverage                                      --              --               --              --          75,646
       Other hotel operating expenses                         --              --               --              --          20,392
    Office rental, parking and other expenses                 --              --               --             162              --
Other operating expenses:
       General and administrative, hotel                      --              --               --              48          62,917
       General and administrative, corporate                  --              --               --              --              --
       Property operating costs                               --              --               --              --          59,609
       Depreciation and amortization                         280             771               --             643             532
       Property taxes, insurance and other                   109             355               --             160         126,753
       Loss on asset impairments                              --              --               --              --              --
                                                 --------------- ---------------  --------------- --------------- ---------------
 Operating expenses                                          389           1,126               --           1,013         409,013
                                                 --------------- ---------------  --------------- --------------- ---------------
 Operating income (loss)                                     809           1,811               --             620             967
 Minority interest                                            --              --               --              --              --
 Interest expense, net                                        --          (1,417)              --              --            (982)
 Equity in loss from consolidated entities                    --              --               --              --              --
                                                 --------------- ---------------  --------------- --------------- ---------------
 (Loss) income before income taxes and
    discontinued operations                                  809             394               --             620             (15)

 Income tax (expense) benefit                                 --              --               --              --              --
                                                 --------------- ---------------  --------------- --------------- ---------------
 (Loss) income from continuing operations                    809             394               --             620             (15)

 Discontinued operations:
     (Loss) income from discontinued
      operations before income tax                            --              --              338              --          (7,405)
      Income tax (expense) benefit                            --              --               --              --              --
                                                 --------------- ---------------  --------------- --------------- ---------------
   (Loss) income on discontinued operations                   --              --              338              --          (7,405)
                                                 --------------- ---------------  --------------- --------------- ---------------
 Net (loss) income                                           809             394              338             620          (7,420)
                                                 =============== ===============  =============== =============== ===============
</Table>



<PAGE>

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

<Table>
<Caption>
                                                       GUARANTOR                                  TOTAL
                                                   SUBSIDIARIES TOTAL      ELIMINATIONS        CONSOLIDATED
                                                   ------------------   -----------------   -----------------
<S>                                                <C>                  <C>                 <C>
 Revenue:
    Hotel operations:
       Rooms                                                  266,706                  --             266,706
       Food and beverage                                      107,520                  --             107,520
       Other hotel operations                                  35,754                  --              35,754
    Office rental, parking and other revenue                      125                  --               6,716
 Participating lease revenue                                   58,483            (113,174)                 --
                                                    -----------------   -----------------   -----------------
Total revenue                                                 468,588            (113,174)            416,696
                                                    -----------------   -----------------   -----------------
Hotel operating expenses:
       Rooms                                                   63,163                  --              63,163
       Food and beverage                                       75,646                  --              75,646
       Other hotel operating expenses                          20,392                  --              20,392
    Office rental, parking and other expenses                     399                  --               1,213
Other operating expenses:
       General and administrative, hotel                       63,167                  --              62,906
       General and administrative, corporate                        1                  --               6,105
       Property operating costs                                59,609                  --              59,609
       Depreciation and amortization                           21,510                  --              48,613
       Property taxes, insurance and other                    136,236            (113,174)             34,547
       Loss on asset impairments                               31,479                  --              65,123
                                                    -----------------   -----------------   -----------------
 Operating expenses                                           471,602            (113,174)            437,317
                                                    -----------------   -----------------   -----------------
 Operating income (loss)                                       (3,014)                 --             (20,621)
 Minority interest                                                 --                  --                  (6)
 Interest expense, net                                         (3,056)                 --             (69,301)
 Equity in loss from consolidated entities                         --             230,202                  --
                                                    -----------------   -----------------   -----------------
 (Loss) income before income taxes and
    discontinued operations                                    (6,070)            230,202             (89,928)

 Income tax (expense) benefit                                      --                  --                 119
                                                    -----------------   -----------------   -----------------
 (Loss) income from continuing operations                      (6,070)            230,202             (89,809)
 Discontinued operations:                                          --
     (Loss) income from discontinued
      operations before income tax                           (118,328)                 --            (200,054)
      Income tax (expense) benefit                                 --                  --                   6
                                                    -----------------   -----------------   -----------------
   (Loss) income on discontinued operations                  (118,328)                 --            (200,048)
                                                    -----------------   -----------------   -----------------
 Net (loss) income                                           (124,398)            230,202            (289,857)
                                                    =================   =================   =================
</Table>


<PAGE>
 MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
 CONSOLIDATING CASH FLOW
 SIX MONTHS ENDED JUNE 30, 2004
 UNAUDITED
 (DOLLARS IN THOUSANDS)


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

    Net (loss) income                                                  (52,938)            19,071                 --
    Adjustments to reconcile net (loss) income to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                      6,237             25,793                 --
      Equity in earnings                                                (6,014)                --                 --
      Loss on asset impairments                                             --              3,763                 --
      Loss on sale of assets, before tax effect                            226               (833)                --
      Loss on early extinguishments of debt                              7,903                 --                 --
      Minority interests                                                   (24)                --                 --
      Amortization of unearned stock-based compensation                  1,090                 --                 --
      Deferred income taxes                                               (652)                --                 --
      Changes in operating assets and liabilities:                          --                 --                 --
        Accounts receivable                                             (8,146)               149                 --
        Prepaid expenses and other assets                               (1,221)             2,738                 --
        Due from/to Interstate Hotels & Resorts                          6,808                 --                 --
        Accounts payable, accrued expenses, accrued interest
          and other liabilities                                        (12,214)               707                 --
        Due from subsidiaries                                           46,887            (26,984)                --
                                                               ---------------    ---------------    ---------------
        Net cash provided by (used in) operating activities            (12,058)            24,404                 --
                                                               ---------------    ---------------    ---------------

Investing activities:

    Acquisition of hotels, net of cash acquired                             --            (92,140)                --
    Capital expenditures for property and equipment                     (1,215)           (23,254)                --
    Proceeds from sales of assets                                           --             42,075                 --
    Change in restricted cash                                          (27,774)               309                 --
    Costs associated with disposition program and other, net                84             (1,654)                --
                                                               ---------------    ---------------    ---------------
        Net cash (used in) provided by investing activities            (28,905)           (74,664)                --
                                                               ---------------    ---------------    ---------------

Financing activities:

    Prepayments on long-term debt                                      (85,319)              (807)                --
    Proceeds from debt issuance, net of issuance costs                    (347)            54,758                 --
    Scheduled payments on long-term debt                                    --             (3,691)                --
    Loans to/from subsidiaries                                         (29,460)                --                 --
    Distributions to partners                                             (141)                --                 --
    Proceed from OP units issuance                                      72,340                 --                 --
    Purchase of OP units                                                (8,690)                --                 --
    Other                                                                 (325)                --                 --
                                                               ---------------    ---------------    ---------------
        Net cash provided by (used in) financing activities            (51,942)            50,260                 --
                                                               ---------------    ---------------    ---------------

Effect of exchange rate changes on cash                                   (227)                --                 --
                                                               ---------------    ---------------    ---------------
NET CHANGE IN CASH                                                     (93,132)                --                 --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                         218,645                 --                 --
                                                               ---------------    ---------------    ---------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                               125,513                 --                 --
                                                               ===============    ===============    ===============
<CAPTION>

                                                                  AGH UPREIT,      MERISTAR SUB       MERISTAR SUB
                                                                      LLC             5N, LLC            8A, LLC
                                                               ---------------   ---------------    ---------------
<S>                                                            <C>               <C>                <C>
Operating activities:

    Net (loss) income                                                       --               398                 --
    Adjustments to reconcile net (loss) income to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                         --                69                 --
      Equity in earnings                                                    --                --                 --
      Loss on asset impairments                                             --                --                 --
      Loss on sale of assets, before tax effect                             --                --                 --
      Loss on early extinguishments of debt                                 --                --                 --
      Minority interests                                                    --                --                 --
      Amortization of unearned stock-based compensation                     --                --                 --
      Deferred income taxes                                                 --                --                 --
      Changes in operating assets and liabilities:                          --                --                 --
        Accounts receivable                                                 --                --                 --
        Prepaid expenses and other assets                                   --                15                 --
        Due from/to Interstate Hotels & Resorts                             --                --                 --
        Accounts payable, accrued expenses, accrued interest
          and other liabilities                                             --                48                 --
        Due from subsidiaries                                               --              (483)                --
                                                               ---------------    ---------------    ---------------
        Net cash provided by (used in) operating activities                 --                47                 --
                                                               ---------------   ---------------    ---------------

Investing activities:

    Acquisition of hotels, net of cash acquired                             --                --                 --
    Capital expenditures for property and equipment                         --               (47)                --
    Proceeds from sales of assets                                           --                --                 --
    Change in restricted cash                                               --                --                 --
    Costs associated with disposition program and other, net                --                --                 --
                                                               ---------------   ---------------    ---------------
        Net cash (used in) provided by investing activities                 --               (47)                --
                                                               ---------------   ---------------    ---------------

Financing activities:

    Prepayments on long-term debt                                           --                --                 --
    Proceeds from debt issuance, net of issuance costs                      --                --                 --
    Scheduled payments on long-term debt                                    --                --                 --
    Loans to/from subsidiaries                                              --                --                 --
    Distributions to partners                                               --                --                 --
    Proceed from OP units issuance                                          --                --                 --
    Purchase of OP units                                                    --                --                 --
    Other                                                                   --                --                 --
                                                               ---------------   ---------------    ---------------
        Net cash provided by (used in) financing activities                 --                --                 --
                                                               ---------------   ---------------    ---------------

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

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                              --                --                 --
                                                               ---------------   ---------------    ---------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                    --                --                 --
                                                               ===============   ===============    ===============
<CAPTION>
                                                                 MERISTAR SUB       MERISTAR SUB     MERISTAR SUB
                                                                   8F, L.P.           8G, LLC           6H, L.P.
                                                               ---------------    ---------------   ---------------
<S>                                                            <C>                <C>               <C>
Operating activities:

    Net (loss) income                                                      568                 --               312
    Adjustments to reconcile net (loss) income to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                        329                 --               313
      Equity in earnings                                                    --                 --                --
      Loss on asset impairments                                             --                 --                --
      Loss on sale of assets, before tax effect                             --                 --                --
      Loss on early extinguishments of debt                                 --                 --                --
      Minority interests                                                    --                 --                --
      Amortization of unearned stock-based compensation                     --                 --                --
      Deferred income taxes                                                 --                 --                --
      Changes in operating assets and liabilities:                          --                 --                --
        Accounts receivable                                                 --                 --                --
        Prepaid expenses and other assets                                   22                 --                 6
        Due from/to Interstate Hotels & Resorts                             --                 --                --
        Accounts payable, accrued expenses, accrued interest
          and other liabilities                                            (29)                --              (118)
        Due from subsidiaries                                             (857)                --              (512)
                                                               ---------------    ---------------    ---------------
        Net cash provided by (used in) operating activities                 33                 --                 1
                                                               ---------------    ---------------   ---------------

Investing activities:

    Acquisition of hotels, net of cash acquired                             --                 --                --
    Capital expenditures for property and equipment                        (33)                --                (1)
    Proceeds from sales of assets                                           --                 --                --
    Change in restricted cash                                               --                 --                --
    Costs associated with disposition program and other, net                --                 --                --
                                                               ---------------    ---------------   ---------------
        Net cash (used in) provided by investing activities                (33)                --                (1)
                                                               ---------------    ---------------   ---------------

Financing activities:

    Prepayments on long-term debt                                           --                 --                --
    Proceeds from debt issuance, net of issuance costs                      --                 --                --
    Scheduled payments on long-term debt                                    --                 --                --
    Loans to/from subsidiaries                                              --                 --                --
    Distributions to partners                                               --                 --                --
    Proceed from OP units issuance                                          --                 --                --
    Purchase of OP units                                                    --                 --                --
    Other                                                                   --                 --                --
                                                               ---------------    ---------------   ---------------
        Net cash provided by (used in) financing activities                 --                 --                --
                                                               ---------------    ---------------   ---------------

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

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                              --                 --                --
                                                               ---------------    ---------------   ---------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                    --                 --                --
                                                               ===============    ===============   ===============
<CAPTION>
                                                                MERISTAR SUB       MERISTAR SUB       MERISTAR SUB
                                                                   8B, LLC            1C, L.P.           8E, LLC
                                                               ---------------    ---------------    ---------------
<S>                                                            <C>                <C>                <C>
Operating activities:

    Net (loss) income                                                    1,974               (350)               376
    Adjustments to reconcile net (loss) income to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                      1,197                697                298
      Equity in earnings                                                    --                 --                 --
      Loss on asset impairments                                             --                 --                 --
      Loss on sale of assets, before tax effect                             --                 --                 --
      Loss on early extinguishments of debt                                 --                 --                 --
      Minority interests                                                    --                 --                 --
      Amortization of unearned stock-based compensation                     --                 --                 --
      Deferred income taxes                                                 --                 --                 --
      Changes in operating assets and liabilities:                          --                 --                 --
        Accounts receivable                                                 --                 --                 --
        Prepaid expenses and other assets                                   34                 59                  9
        Due from/to Interstate Hotels & Resorts                             --                 --                 --
        Accounts payable, accrued expenses, accrued interest
          and other liabilities                                           (107)               (16)                 9
        Due from subsidiaries                                            1,684               (134)              (576)
                                                               ---------------    ---------------    ---------------
        Net cash provided by (used in) operating activities              4,782                256                116
                                                               ---------------    ---------------    ---------------

Investing activities:

    Acquisition of hotels, net of cash acquired                             --                 --                 --
    Capital expenditures for property and equipment                     (4,782)              (256)              (116)
    Proceeds from sales of assets                                           --                 --                 --
    Change in restricted cash                                               --                 --                 --
    Costs associated with disposition program and other, net                --                 --                 --
                                                               ---------------    ---------------    ---------------
        Net cash (used in) provided by investing activities             (4,782)              (256)              (116)
                                                               ---------------    ---------------    ---------------

Financing activities:

    Prepayments on long-term debt                                           --                 --                 --
    Proceeds from debt issuance, net of issuance costs                      --                 --                 --
    Scheduled payments on long-term debt                                    --                 --                 --
    Loans to/from subsidiaries                                              --                 --                 --
    Distributions to partners                                               --                 --                 --
    Proceed from OP units issuance                                          --                 --                 --
    Purchase of OP units                                                    --                 --                 --
    Other                                                                   --                 --                 --
                                                               ---------------    ---------------    ---------------
        Net cash provided by (used in) financing activities                 --                 --                 --
                                                               ---------------    ---------------    ---------------

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

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


<PAGE>
 MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
 CONSOLIDATING CASH FLOW
 SIX MONTHS ENDED JUNE 30, 2004
 UNAUDITED
 (DOLLARS IN THOUSANDS)

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

    Net (loss) income                                                      319                477                458
    Adjustments to reconcile net (loss) income to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                        170                 77                356
      Equity in earnings                                                    --                 --                 --
      Loss on asset impairments                                             --                 --                 --
      Loss on sale of assets, before tax effect                             --                 --                 --
      Loss on early extinguishments of debt                                 --                 --                 --
      Minority interests                                                    --                 --                 --
      Amortization of unearned stock-based compensation                     --                 --                 --
      Deferred income taxes                                                 --                 --                 --
      Changes in operating assets and liabilities:                          --                 --                 --
        Accounts receivable                                                 --                 --                 --
        Prepaid expenses and other assets                                    6                 29                  9
        Due from/to Interstate Hotels & Resorts                             --                 --                 --
        Accounts payable, accrued expenses, accrued interest
          and other liabilities                                            (51)                63                 72
        Due from subsidiaries                                             (400)              (435)              (884)
                                                               ---------------    ---------------    ---------------
        Net cash provided by (used in) operating activities                 44                211                 11
                                                               ---------------    ---------------    ---------------

Investing activities:

    Acquisition of hotels, net of cash acquired                             --                 --                 --
    Capital expenditures for property and equipment                        (44)              (211)               (11)
    Proceeds from sales of assets                                           --                 --                 --
    Change in restricted cash                                               --                 --                 --
    Costs associated with disposition program and other, net                --                 --                 --
                                                               ---------------    ---------------    ---------------
        Net cash (used in) provided by investing activities                (44)              (211)               (11)
                                                               ---------------    ---------------    ---------------

Financing activities:

    Prepayments on long-term debt                                           --                 --                 --
    Proceeds from debt issuance, net of issuance costs                      --                 --                 --
    Scheduled payments on long-term debt                                    --                 --                 --
    Loans to/from subsidiaries                                              --                 --                 --
    Distributions to partners                                               --                 --                 --
    Proceed from OP units issuance                                          --                 --                 --
    Purchase of OP units                                                    --                 --                 --
    Other                                                                   --                 --                 --
                                                               ---------------    ---------------    ---------------
        Net cash provided by (used in) financing activities                 --                 --                 --
                                                               ---------------    ---------------    ---------------

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

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                              --                 --                 --
                                                               ---------------    ---------------    ---------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                    --                 --                 --
                                                               ===============    ===============    ===============
<CAPTION>
                                                                 MERISTAR SUB     MERISTAR SUB        MERISTAR SUB
                                                                   5R, LLC          6D, LLC            6E, LLC
                                                               ---------------   ---------------    ---------------
<S>                                                            <C>               <C>                <C>
Operating activities:

    Net (loss) income                                                       --               679              1,894
    Adjustments to reconcile net (loss) income to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                         --               273                825
      Equity in earnings                                                    --                --                 --
      Loss on asset impairments                                             --                --                 --
      Loss on sale of assets, before tax effect                             --                --                 --
      Loss on early extinguishments of debt                                 --                --                 --
      Minority interests                                                    --                --                 --
      Amortization of unearned stock-based compensation                     --                --                 --
      Deferred income taxes                                                 --                --                 --
      Changes in operating assets and liabilities:                          --                --                 --
        Accounts receivable                                                 --                 5                 --
        Prepaid expenses and other assets                                   --                 7                 31
        Due from/to Interstate Hotels & Resorts                             --                --                 --
        Accounts payable, accrued expenses, accrued interest
          and other liabilities                                             --                98                268
        Due from subsidiaries                                               --              (590)              (598)
                                                               ---------------    ---------------    ---------------
        Net cash provided by (used in) operating activities                 --               472              2,420
                                                               ---------------   ---------------    ---------------

Investing activities:

    Acquisition of hotels, net of cash acquired                             --                --                 --
    Capital expenditures for property and equipment                         --              (472)            (2,420)
    Proceeds from sales of assets                                           --                --                 --
    Change in restricted cash                                               --                --                 --
    Costs associated with disposition program and other, net                --                --                 --
                                                               ---------------   ---------------    ---------------
        Net cash (used in) provided by investing activities                 --              (472)            (2,420)
                                                               ---------------   ---------------    ---------------

Financing activities:

    Prepayments on long-term debt                                           --                --                 --
    Proceeds from debt issuance, net of issuance costs                      --                --                 --
    Scheduled payments on long-term debt                                    --                --                 --
    Loans to/from subsidiaries                                              --                --                 --
    Distributions to partners                                               --                --                 --
    Proceed from OP units issuance                                          --                --                 --
    Purchase of OP units                                                    --                --                 --
    Other                                                                   --                --                 --
                                                               ---------------   ---------------    ---------------
        Net cash provided by (used in) financing activities                 --                --                 --
                                                               ---------------   ---------------    ---------------

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

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                              --                --                 --
                                                               ---------------   ---------------    ---------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                    --                --                 --
                                                               ===============   ===============    ===============
<CAPTION>
                                                                MERISTAR SUB       MERISTAR SUB       MERISTAR SUB
                                                                   4E, L.P.          1B, LLC             5F, L.P.
                                                               ---------------    ---------------    ---------------
<S>                                                             <C>                <C>               <C>
Operating activities:

    Net (loss) income                                                     (721)               815                851
    Adjustments to reconcile net (loss) income to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                        149                249                391
      Equity in earnings                                                    --                 --                 --
      Loss on asset impairments                                            981                 --                 --
      Loss on sale of assets, before tax effect                             --                 --                 --
      Loss on early extinguishments of debt                                 --                 --                 --
      Minority interests                                                    --                 --                 --
      Amortization of unearned stock-based compensation                     --                 --                 --
      Deferred income taxes                                                 --                 --                 --
      Changes in operating assets and liabilities:                          --                 --                 --
        Accounts receivable                                                 --                 --                 --
        Prepaid expenses and other assets                                   20                 28                 62
        Due from/to Interstate Hotels & Resorts                             --                 --                 --
        Accounts payable, accrued expenses, accrued interest
          and other liabilities                                           (147)               (44)                23
        Due from subsidiaries                                             (244)              (329)               690
                                                               ---------------    ---------------    ---------------
        Net cash provided by (used in) operating activities                 38                719              2,017
                                                               ---------------    ---------------    ---------------

Investing activities:

    Acquisition of hotels, net of cash acquired                             --                 --                 --
    Capital expenditures for property and equipment                        (38)              (719)            (2,017)
    Proceeds from sales of assets                                           --                 --                 --
    Change in restricted cash                                               --                 --                 --
    Costs associated with disposition program and other, net                --                 --                 --
                                                               ---------------    ---------------    ---------------
        Net cash (used in) provided by investing activities                (38)              (719)            (2,017)
                                                               ---------------    ---------------    ---------------

Financing activities:

    Prepayments on long-term debt                                           --                 --                 --
    Proceeds from debt issuance, net of issuance costs                      --                 --                 --
    Scheduled payments on long-term debt                                    --                 --                 --
    Loans to/from subsidiaries                                              --                 --                 --
    Distributions to partners                                               --                 --                 --
    Proceed from OP units issuance                                          --                 --                 --
    Purchase of OP units                                                    --                 --                 --
    Other                                                                   --                 --                 --
                                                               ---------------    ---------------    ---------------
        Net cash provided by (used in) financing activities                 --                 --                 --
                                                               ---------------    ---------------    ---------------

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

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                              --                 --                 --
                                                               ---------------    ---------------    ---------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                    --                 --                 --
                                                               ===============    ===============    ===============
<CAPTION>
                                                                 MERISTAR SUB       MERISTAR SUB      MERISTAR SUB
                                                                     6G, LLC           8C, LLC          4C, L.P.
                                                               ---------------    ---------------   ---------------
<S>                                                            <C>                <C>                <C>
Operating activities:

    Net (loss) income                                                    1,354                (61)               --
    Adjustments to reconcile net (loss) income to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                        362                 --                --
      Equity in earnings                                                    --                 --                --
      Loss on asset impairments                                             --                 --                --
      Loss on sale of assets, before tax effect                             --                110                --
      Loss on early extinguishments of debt                                 --                 --                --
      Minority interests                                                    --                 --                --
      Amortization of unearned stock-based compensation                     --                 --                --
      Deferred income taxes                                                 --                 --                --
      Changes in operating assets and liabilities:                          --                 --                --
        Accounts receivable                                                 --                 --                --
        Prepaid expenses and other assets                                   12                117                --
        Due from/to Interstate Hotels & Resorts                             --                 --                --
        Accounts payable, accrued expenses, accrued interest
          and other liabilities                                            142                839                --
        Due from subsidiaries                                           (1,565)            (6,603)               --
                                                               ---------------    ---------------    ---------------
        Net cash provided by (used in) operating activities                305             (5,598)               --
                                                               ---------------    ---------------   ---------------

Investing activities:

    Acquisition of hotels, net of cash acquired                             --                 --                --
    Capital expenditures for property and equipment                       (305)               711                --
    Proceeds from sales of assets                                           --              5,000                --
    Change in restricted cash                                               --                 --                --
    Costs associated with disposition program and other, net                --               (113)               --
                                                               ---------------    ---------------   ---------------
        Net cash (used in) provided by investing activities               (305)             5,598                --
                                                               ---------------    ---------------   ---------------

Financing activities:

    Prepayments on long-term debt                                           --                 --                --
    Proceeds from debt issuance, net of issuance costs                      --                 --                --
    Scheduled payments on long-term debt                                    --                 --                --
    Loans to/from subsidiaries                                              --                 --                --
    Distributions to partners                                               --                 --                --
    Proceed from OP units issuance                                          --                 --                --
    Purchase of OP units                                                    --                 --                --
    Other                                                                   --                 --                --
                                                               ---------------    ---------------   ---------------
        Net cash provided by (used in) financing activities                 --                 --                --
                                                               ---------------    ---------------   ---------------

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

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                              --                 --                --
                                                               ---------------    ---------------   ---------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                    --                 --                --
                                                               ===============    ===============   ===============
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING CASH FLOW
SIX MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)

<Table>
<Caption>

                                                                     MERISTAR SUB        MERISTAR SUB         MERISTAR SUB
                                                                       4H, L.P.             7E, LLC              3D, LLC
                                                                   ---------------      ---------------      ---------------
<S>                                                                <C>                  <C>                  <C>
Operating activities:
    Net (loss) income                                                         (403)                 277                  246
    Adjustments to reconcile net (loss) income to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                             43                  313                  382
      Equity in earnings                                                        --                   --                   --
      Loss on asset impairments                                                 --                   --                   --
      Loss on sale of assets, before tax effect                                365                   --                   --
      Loss on early extinguishments of debt                                     --                   --                   --
      Minority interests                                                        --                   --                   --
      Amortization of unearned stock-based compensation                         --                   --                   --
      Deferred income taxes                                                     --                   --                   --
      Changes in operating assets and liabilities:                              --                   --                   --
        Accounts receivable                                                     --                   --                   --
        Prepaid expenses and other assets                                       (8)                   7                   15
        Due from/to Interstate Hotels & Resorts                                 --                   --                   --
        Accounts payable, accrued expenses, accrued interest
         and other liabilities                                                (236)                  34                   54
        Due from subsidiaries                                               (4,133)                 938                 (553)
                                                                   ---------------      ---------------      ---------------
        Net cash provided by (used in) operating activities                 (4,372)               1,569                  144
                                                                   ---------------      ---------------      ---------------
Investing activities:

    Acquisition of hotels, net of cash acquired                                 --                   --                   --
    Capital expenditures for property and equipment                            (87)              (1,569)                (144)
    Proceeds from sales of assets                                            4,650                   --                   --
    Change in restricted cash                                                   --                   --                   --
    Costs associated with disposition program and other, net                  (191)                  --                   --
                                                                   ---------------      ---------------      ---------------
        Net cash (used in) provided by investing activities                  4,372               (1,569)                (144)
                                                                   ---------------      ---------------      ---------------
Financing activities:

    Prepayments on long-term debt                                               --                   --                   --
    Proceeds from debt issuance, net of issuance costs                          --                   --                   --
    Scheduled payments on long-term debt                                        --                   --                   --
    Loans to/from subsidiaries                                                  --                   --                   --
    Distributions to partners                                                   --                   --                   --
    Proceed from OP units issuance                                              --                   --                   --
    Purchase of OP units                                                        --                   --                   --
    Other                                                                       --                   --                   --
                                                                   ---------------      ---------------      ---------------
        Net cash provided by (used in) financing activities                     --                   --                   --
                                                                   ---------------      ---------------      ---------------
Effect of exchange rate changes on cash                                         --                   --                   --
                                                                   ---------------      ---------------      ---------------
NET CHANGE IN CASH                                                              --                   --                   --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                  --                   --                   --
                                                                   ---------------      ---------------      ---------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                        --                   --                   --
                                                                   ===============      ===============      ===============



<Caption>
                                                                                           MERISTAR SUB
                                                                    MERISTAR SUB            7A JOINT          MERISTAR SUB
                                                                       1A, LLC              VENTURE              2B, LLC
                                                                   ---------------      ---------------      ---------------
<S>                                                                <C>                  <C>                  <C>
Operating activities:
    Net (loss) income                                                         (167)                (713)                  --
    Adjustments to reconcile net (loss) income to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                            197                  121                   --
      Equity in earnings                                                        --                   --                   --
      Loss on asset impairments                                                544                1,005                   --
      Loss on sale of assets, before tax effect                                 --                   --                   --
      Loss on early extinguishments of debt                                     --                   --                   --
      Minority interests                                                        --                   --                   --
      Amortization of unearned stock-based compensation                         --                   --                   --
      Deferred income taxes                                                     --                   --                   --
      Changes in operating assets and liabilities:                              --                   --                   --
        Accounts receivable                                                     --                   --                2,345
        Prepaid expenses and other assets                                       30                   10                   --
        Due from/to Interstate Hotels & Resorts                                 --                   --                   --
        Accounts payable, accrued expenses, accrued interest
         and other liabilities                                                  44                   27                   --
        Due from subsidiaries                                                 (637)                (428)              (2,345)
                                                                   ---------------      ---------------      ---------------
        Net cash provided by (used in) operating activities                     11                   22                   --
                                                                   ---------------      ---------------      ---------------
Investing activities:

    Acquisition of hotels, net of cash acquired                                 --                   --                   --
    Capital expenditures for property and equipment                            (11)                 (22)                  --
    Proceeds from sales of assets                                               --                   --                   --
    Change in restricted cash                                                   --                   --                   --
    Costs associated with disposition program and other, net                    --                   --                   --
                                                                   ---------------      ---------------      ---------------
        Net cash (used in) provided by investing activities                    (11)                 (22)                  --
                                                                   ---------------      ---------------      ---------------
Financing activities:

    Prepayments on long-term debt                                               --                   --                   --
    Proceeds from debt issuance, net of issuance costs                          --                   --                   --
    Scheduled payments on long-term debt                                        --                   --                   --
    Loans to/from subsidiaries                                                  --                   --                   --
    Distributions to partners                                                   --                   --                   --
    Proceed from OP units issuance                                              --                   --                   --
    Purchase of OP units                                                        --                   --                   --
    Other                                                                       --                   --                   --
                                                                   ---------------      ---------------      ---------------
        Net cash provided by (used in) financing activities                     --                   --                   --
                                                                   ---------------      ---------------      ---------------
Effect of exchange rate changes on cash                                         --                   --                   --
                                                                   ---------------      ---------------      ---------------
NET CHANGE IN CASH                                                              --                   --                   --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                  --                   --                   --
                                                                   ---------------      ---------------      ---------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                        --                   --                   --
                                                                   ===============      ===============      ===============



<Caption>
                                                                                                               MERISTAR
                                                                     MERISTAR SUB          MERISTAR             SUB 4D,
                                                                       3A, LLC            SUB 4A, LLC             LLC
                                                                   ---------------      ---------------      ---------------
<S>                                                                <C>                  <C>                  <C>
Operating activities:
    Net (loss) income                                                           89                   97                   --
    Adjustments to reconcile net (loss) income to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                             51                   --                   --
      Equity in earnings                                                        --                   --                   --
      Loss on asset impairments                                                 --                   --                   --
      Loss on sale of assets, before tax effect                                (20)                  45                   --
      Loss on early extinguishments of debt                                     --                   --                   --
      Minority interests                                                        --                   --                   --
      Amortization of unearned stock-based compensation                         --                   --                   --
      Deferred income taxes                                                     --                   --                   --
      Changes in operating assets and liabilities:                              --                   --                   --
        Accounts receivable                                                     --                   --                   --
        Prepaid expenses and other assets                                        1                   (9)                   3
        Due from/to Interstate Hotels & Resorts                                 --                   --                   --
        Accounts payable, accrued expenses, accrued interest
         and other liabilities                                                (104)                (400)                  --
        Due from subsidiaries                                               (2,993)              (2,860)                  (3)
                                                                   ---------------      ---------------      ---------------
        Net cash provided by (used in) operating activities                 (2,976)              (3,127)                  --
                                                                   ---------------      ---------------      ---------------
Investing activities:

    Acquisition of hotels, net of cash acquired                                 --                   --                   --
    Capital expenditures for property and equipment                            (83)                (194)                  --
    Proceeds from sales of assets                                            3,300                3,575                   --
    Change in restricted cash                                                   --                   --                   --
    Costs associated with disposition program and other, net                  (241)                (254)                  --
                                                                   ---------------      ---------------      ---------------
        Net cash (used in) provided by investing activities                  2,976                3,127                   --
                                                                   ---------------      ---------------      ---------------
Financing activities:

    Prepayments on long-term debt                                               --                   --                   --
    Proceeds from debt issuance, net of issuance costs                          --                   --                   --
    Scheduled payments on long-term debt                                        --                   --                   --
    Loans to/from subsidiaries                                                  --                   --                   --
    Distributions to partners                                                   --                   --                   --
    Proceed from OP units issuance                                              --                   --                   --
    Purchase of OP units                                                        --                   --                   --
    Other                                                                       --                   --                   --
                                                                   ---------------      ---------------      ---------------
        Net cash provided by (used in) financing activities                     --                   --                   --
                                                                   ---------------      ---------------      ---------------
Effect of exchange rate changes on cash                                         --                   --                   --
                                                                   ---------------      ---------------      ---------------
NET CHANGE IN CASH                                                              --                   --                   --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                  --                   --                   --
                                                                   ---------------      ---------------      ---------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                        --                   --                   --
                                                                   ===============      ===============      ===============



<Caption>

                                                                     MERISTAR SUB        MERISTAR SUB          MDV LIMITED
                                                                       2A, LLC              6L, LLC            PARTNERSHIP
                                                                   ---------------      ---------------      ---------------
<S>                                                                <C>                  <C>                  <C>
Operating activities:
    Net (loss) income                                                           --                1,852                  130
    Adjustments to reconcile net (loss) income to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                             --                   --                   70
      Equity in earnings                                                        --                   --                   --
      Loss on asset impairments                                                 --                   --                   --
      Loss on sale of assets, before tax effect                                 --               (1,827)                  --
      Loss on early extinguishments of debt                                     --                   --                   --
      Minority interests                                                        --                   --                   --
      Amortization of unearned stock-based compensation                         --                   --                   --
      Deferred income taxes                                                     --                   --                   --
      Changes in operating assets and liabilities:                              --                   --                   --
        Accounts receivable                                                  2,002                 (178)                  --
        Prepaid expenses and other assets                                       --                   14                    9
        Due from/to Interstate Hotels & Resorts                                 --                   --                   --
        Accounts payable, accrued expenses, accrued interest
         and other liabilities                                                  --                 (109)                   6
        Due from subsidiaries                                               (2,002)             (13,739)                (165)
                                                                   ---------------      ---------------      ---------------
        Net cash provided by (used in) operating activities                     --              (13,987)                  50
                                                                   ---------------      ---------------      ---------------
Investing activities:

    Acquisition of hotels, net of cash acquired                                 --                   --                   --
    Capital expenditures for property and equipment                             --                 (319)                 (50)
    Proceeds from sales of assets                                               --               14,775                   --
    Change in restricted cash                                                   --                   --                   --
    Costs associated with disposition program and other, net                    --                 (469)                  --
                                                                   ---------------      ---------------      ---------------
        Net cash (used in) provided by investing activities                     --               13,987                  (50)
                                                                   ---------------      ---------------      ---------------
Financing activities:

    Prepayments on long-term debt                                               --                   --                   --
    Proceeds from debt issuance, net of issuance costs                          --                   --                   --
    Scheduled payments on long-term debt                                        --                   --                   --
    Loans to/from subsidiaries                                                  --                   --                   --
    Distributions to partners                                                   --                   --                   --
    Proceed from OP units issuance                                              --                   --                   --
    Purchase of OP units                                                        --                   --                   --
    Other                                                                       --                   --                   --
                                                                   ---------------      ---------------      ---------------
        Net cash provided by (used in) financing activities                     --                   --                   --
                                                                   ---------------      ---------------      ---------------
Effect of exchange rate changes on cash                                         --                   --                   --
                                                                   ---------------      ---------------      ---------------
NET CHANGE IN CASH                                                              --                   --                   --

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

<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING CASH FLOW
SIX MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)

<Table>
<Caption>
                                                                     MERISTAR SUB        MERISTAR SUB         MERISTAR SUB
                                                                       5C, LLC              6J, LLC             1D, L.P.
                                                                   ---------------      ---------------      ---------------
<S>                                                                <C>                  <C>                  <C>
Operating activities:
    Net (loss) income                                                           --                  823                  647
    Adjustments to reconcile net (loss) income to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                             --                  281                1,136
      Equity in earnings                                                        --                   --                   --
      Loss on asset impairments                                                 --                   --                   --
      Loss on sale of assets, before tax effect                                 --                   --                   --
      Loss on early extinguishments of debt                                     --                   --                   --
      Minority interests                                                        --                   --                   --
      Amortization of unearned stock-based compensation                         --                   --                   --
      Deferred income taxes                                                     --                   --                   --
      Changes in operating assets and liabilities:                              --                   --                   --
        Accounts receivable                                                      2                   --                   --
        Prepaid expenses and other assets                                       (4)                   8                  183
        Due from/to Interstate Hotels & Resorts                                 --                   --                   --
        Accounts payable, accrued expenses, accrued interest
          and other liabilities                                                 --                  288                  189
        Due from subsidiaries                                                    2               (1,208)              (1,785)
                                                                   ---------------      ---------------      ---------------
        Net cash provided by (used in) operating activities                     --                  192                  370
                                                                   ---------------      ---------------      ---------------
Investing activities:

    Acquisition of hotels, net of cash acquired                                 --                   --                   --
    Capital expenditures for property and equipment                             --                 (192)                (370)
    Proceeds from sales of assets                                               --                   --                   --
    Change in restricted cash                                                   --                   --                   --
    Costs associated with disposition program and other, net                    --                   --                   --
                                                                   ---------------      ---------------      ---------------
        Net cash (used in) provided by investing activities                     --                 (192)                (370)
                                                                   ---------------      ---------------      ---------------
Financing activities:

    Prepayments on long-term debt                                               --                   --                   --
    Proceeds from debt issuance, net of issuance costs                          --                   --                   --
    Scheduled payments on long-term debt                                        --                   --                   --
    Loans to/from subsidiaries                                                  --                   --                   --
    Distributions to partners                                                   --                   --                   --
    Proceed from OP units issuance                                              --                   --                   --
    Purchase of OP units                                                        --                   --                   --
    Other                                                                       --                   --                   --
                                                                   ---------------      ---------------      ---------------
        Net cash provided by (used in) financing activities                     --                   --                   --
                                                                   ---------------      ---------------      ---------------
Effect of exchange rate changes on cash                                         --                   --                   --
                                                                   ---------------      ---------------      ---------------
NET CHANGE IN CASH                                                              --                   --                   --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                  --                   --                   --
                                                                   ---------------      ---------------      ---------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                        --                   --                   --
                                                                   ===============      ===============      ===============
<Caption>
                                                                     MERISTAR SUB         MERISTAR SUB         MERISTAR SUB
                                                                       7B, L.P.             7D, LLC              7G, LLC
                                                                   ---------------      ---------------      ---------------
<S>                                                                <C>                  <C>                  <C>
Operating activities:
    Net (loss) income                                                         (787)               1,063                  103
    Adjustments to reconcile net (loss) income to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                             99                  862                   49
      Equity in earnings                                                        --                   --                   --
      Loss on asset impairments                                                 --                   --                   --
      Loss on sale of assets, before tax effect                              1,035                   --                  (39)
      Loss on early extinguishments of debt                                     --                   --                   --
      Minority interests                                                        --                   --                   --
      Amortization of unearned stock-based compensation                         --                   --                   --
      Deferred income taxes                                                     --                   --                   --
      Changes in operating assets and liabilities:                              --                   --                   --
        Accounts receivable                                                     --                  650                   --
        Prepaid expenses and other assets                                        1                   31                   --
        Due from/to Interstate Hotels & Resorts                                 --                   --                   --
        Accounts payable, accrued expenses, accrued interest
          and other liabilities                                             (1,602)                 442                    6
        Due from subsidiaries                                               (3,147)              (2,044)              (1,659)
                                                                   ---------------      ---------------      ---------------
        Net cash provided by (used in) operating activities                 (4,401)               1,004               (1,540)
                                                                   ---------------      ---------------      ---------------
Investing activities:

    Acquisition of hotels, net of cash acquired                                 --                   --                   --
    Capital expenditures for property and equipment                            306               (1,004)                (399)
    Proceeds from sales of assets                                            4,500                   --                2,300
    Change in restricted cash                                                   --                   --                   --
    Costs associated with disposition program and other, net                  (405)                  --                 (361)
                                                                   ---------------      ---------------      ---------------
        Net cash (used in) provided by investing activities                  4,401               (1,004)               1,540
                                                                   ---------------      ---------------      ---------------
Financing activities:

    Prepayments on long-term debt                                               --                   --                   --
    Proceeds from debt issuance, net of issuance costs                          --                   --                   --
    Scheduled payments on long-term debt                                        --                   --                   --
    Loans to/from subsidiaries                                                  --                   --                   --
    Distributions to partners                                                   --                   --                   --
    Proceed from OP units issuance                                              --                   --                   --
    Purchase of OP units                                                        --                   --                   --
    Other                                                                       --                   --                   --
                                                                   ---------------      ---------------      ---------------
        Net cash provided by (used in) financing activities                     --                   --                   --
                                                                   ---------------      ---------------      ---------------
Effect of exchange rate changes on cash                                         --                   --                   --
                                                                   ---------------      ---------------      ---------------
NET CHANGE IN CASH                                                              --                   --                   --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                  --                   --                   --
                                                                   ---------------      ---------------      ---------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                        --                   --                   --
                                                                   ===============      ===============      ===============
<Caption>
                                                                    MERISTAR SUB         MERISTAR SUB         MERISTAR SUB
                                                                       6B, LLC             4I, L.P.             5D, LLC
                                                                   ---------------      ---------------      ---------------
<S>                                                                <C>                  <C>                  <C>
Operating activities:
    Net (loss) income                                                          257                   --                 (386)
    Adjustments to reconcile net (loss) income to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                            224                   --                  738
      Equity in earnings                                                        --                   --                   --
      Loss on asset impairments                                                 --                   --                   --
      Loss on sale of assets, before tax effect                                 --                   --                   --
      Loss on early extinguishments of debt                                     --                   --                   --
      Minority interests                                                        --                   --                   --
      Amortization of unearned stock-based compensation                         --                   --                   --
      Deferred income taxes                                                     --                   --                   --
      Changes in operating assets and liabilities:                              --                   --                   --
        Accounts receivable                                                     --                   --                   --
        Prepaid expenses and other assets                                        4                   --                   31
        Due from/to Interstate Hotels & Resorts                                 --                   --                   --
        Accounts payable, accrued expenses, accrued interest
          and other liabilities                                                105                   61                  359
        Due from subsidiaries                                                   73                  (61)                (585)
                                                                   ---------------      ---------------      ---------------
        Net cash provided by (used in) operating activities                    663                   --                  157
                                                                   ---------------      ---------------      ---------------
Investing activities:

    Acquisition of hotels, net of cash acquired                                 --                   --                   --
    Capital expenditures for property and equipment                           (663)                  --                 (157)
    Proceeds from sales of assets                                               --                   --                   --
    Change in restricted cash                                                   --                   --                   --
    Costs associated with disposition program and other, net                    --                   --                   --
                                                                   ---------------      ---------------      ---------------
        Net cash (used in) provided by investing activities                   (663)                  --                 (157)
                                                                   ---------------      ---------------      ---------------
Financing activities:

    Prepayments on long-term debt                                               --                   --                   --
    Proceeds from debt issuance, net of issuance costs                          --                   --                   --
    Scheduled payments on long-term debt                                        --                   --                   --
    Loans to/from subsidiaries                                                  --                   --                   --
    Distributions to partners                                                   --                   --                   --
    Proceed from OP units issuance                                              --                   --                   --
    Purchase of OP units                                                        --                   --                   --
    Other                                                                       --                   --                   --
                                                                   ---------------      ---------------      ---------------
        Net cash provided by (used in) financing activities                     --                   --                   --
                                                                   ---------------      ---------------      ---------------
Effect of exchange rate changes on cash                                         --                   --                   --
                                                                   ---------------      ---------------      ---------------
NET CHANGE IN CASH                                                              --                   --                   --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                  --                   --                   --
                                                                   ---------------      ---------------      ---------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                        --                   --                   --
                                                                   ===============      ===============      ===============
<Caption>
                                                                    MERISTAR SUB        MERISTAR SUB            AGH PSS I,
                                                                       5H, LLC             7H, LLC                 INC.
                                                                   ---------------      ---------------      ---------------
<S>                                                                <C>                  <C>                  <C>
Operating activities:
    Net (loss) income                                                           --                   --                   --
    Adjustments to reconcile net (loss) income to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                             --                   --                   --
      Equity in earnings                                                        --                   --                   --
      Loss on asset impairments                                                 --                   --                   --
      Loss on sale of assets, before tax effect                                 --                   --                   --
      Loss on early extinguishments of debt                                     --                   --                   --
      Minority interests                                                        --                   --                   --
      Amortization of unearned stock-based compensation                         --                   --                   --
      Deferred income taxes                                                     --                   --                   --
      Changes in operating assets and liabilities:                              --                   --                   --
        Accounts receivable                                                     --                   43                   --
        Prepaid expenses and other assets                                        1                   --                    1
        Due from/to Interstate Hotels & Resorts                                 --                   --                   --
        Accounts payable, accrued expenses, accrued interest
          and other liabilities                                                  2                   --                   --
        Due from subsidiaries                                                   (3)                 (43)                  (1)
                                                                   ---------------      ---------------      ---------------
        Net cash provided by (used in) operating activities                     --                   --                   --
                                                                   ---------------      ---------------      ---------------
Investing activities:

    Acquisition of hotels, net of cash acquired                                 --                   --                   --
    Capital expenditures for property and equipment                             --                   --                   --
    Proceeds from sales of assets                                               --                   --                   --
    Change in restricted cash                                                   --                   --                   --
    Costs associated with disposition program and other, net                    --                   --                   --
                                                                   ---------------      ---------------      ---------------
        Net cash (used in) provided by investing activities                     --                   --                   --
                                                                   ---------------      ---------------      ---------------
Financing activities:

    Prepayments on long-term debt                                               --                   --                   --
    Proceeds from debt issuance, net of issuance costs                          --                   --                   --
    Scheduled payments on long-term debt                                        --                   --                   --
    Loans to/from subsidiaries                                                  --                   --                   --
    Distributions to partners                                                   --                   --                   --
    Proceed from OP units issuance                                              --                   --                   --
    Purchase of OP units                                                        --                   --                   --
    Other                                                                       --                   --                   --
                                                                   ---------------      ---------------      ---------------
        Net cash provided by (used in) financing activities                     --                   --                   --
                                                                   ---------------      ---------------      ---------------
Effect of exchange rate changes on cash                                         --                   --                   --
                                                                   ---------------      ---------------      ---------------
NET CHANGE IN CASH                                                              --                   --                   --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                  --                   --                   --
                                                                   ---------------      ---------------      ---------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                        --                   --                   --
                                                                   ===============      ===============      ===============
</Table>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING CASH FLOW
SIX MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)

<Table>
<Caption>
                                                                  MERISTAR SUB       MERISTAR SUB       MERISTAR SUB
                                                                     2D, LLC           4F, L.P.            5K, LLC
                                                                 ---------------    ---------------    ---------------
<S>                                                              <C>                <C>                <C>
Operating activities:

    Net (loss) income                                                         --                255                429
    Adjustments to reconcile net (loss) income to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                           --                552                648
      Equity in earnings                                                      --                 --                 --
      Loss on asset impairments                                               --                 --                 --
      Loss on sale of assets, before tax effect                               --                 --                 --
      Loss on early extinguishments of debt                                   --                 --                 --
      Minority interests                                                      --                 --                 --
      Amortization of unearned stock-based compensation                       --                 --                 --
      Deferred income taxes                                                   --                 --                 --
      Changes in operating assets and liabilities:                            --                 --                 --
        Accounts receivable                                                1,166                 --                 --
        Prepaid expenses and other assets                                     --                 13                 64
        Due from/to Interstate Hotels & Resorts                               --                 --                 --
        Accounts payable, accrued expenses, accrued interest
          and other liabilities                                               --               (202)            (1,481)
        Due from subsidiaries                                             (1,166)               237                589
                                                                 ---------------    ---------------    ---------------
        Net cash provided by (used in) operating activities                   --                855                249
                                                                 ---------------    ---------------    ---------------

Investing activities:

    Acquisition of hotels, net of cash acquired                               --                 --                 --
    Capital expenditures for property and equipment                           --               (855)              (249)
    Proceeds from sales of assets                                             --                 --                 --
    Change in restricted cash                                                 --                 --                 --
    Costs associated with disposition program and other, net                  --                 --                 --
                                                                 ---------------    ---------------    ---------------
        Net cash (used in) provided by investing activities                   --               (855)              (249)
                                                                 ---------------    ---------------    ---------------

Financing activities:

    Prepayments on long-term debt                                             --                 --                 --
    Proceeds from debt issuance, net of issuance costs                        --                 --                 --
    Scheduled payments on long-term debt                                      --                 --                 --
    Loans to/from subsidiaries                                                --                 --                 --
    Distributions to partners                                                 --                 --                 --
    Proceed from OP units issuance                                            --                 --                 --
    Purchase of OP units                                                      --                 --                 --
    Other                                                                     --                 --                 --
                                                                 ---------------    ---------------    ---------------
        Net cash provided by (used in) financing activities                   --                 --                 --
                                                                 ---------------    ---------------    ---------------

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

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                --                 --                 --
                                                                 ---------------    ---------------    ---------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                      --                 --                 --
                                                                 ===============    ===============    ===============

<Caption>
                                                                  MERISTAR SUB       MERISTAR SUB       MERISTAR SUB
                                                                     5M, LLC            1E, L.P.           5O, LLC
                                                                 ---------------    ---------------    ---------------
<S>                                                              <C>                <C>                <C>
Operating activities:

    Net (loss) income                                                        618                 --                305
    Adjustments to reconcile net (loss) income to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                          238                 --                114
      Equity in earnings                                                      --                 --                 --
      Loss on asset impairments                                               --                 --                 --
      Loss on sale of assets, before tax effect                               --                 --                 --
      Loss on early extinguishments of debt                                   --                 --                 --
      Minority interests                                                      --                 --                 --
      Amortization of unearned stock-based compensation                       --                 --                 --
      Deferred income taxes                                                   --                 --                 --
      Changes in operating assets and liabilities:                            --                 --                 --
        Accounts receivable                                                   --                198                 --
        Prepaid expenses and other assets                                     37                 (1)                13
        Due from/to Interstate Hotels & Resorts                               --                 --                 --
        Accounts payable, accrued expenses, accrued interest
          and other liabilities                                               98                (14)                46
        Due from subsidiaries                                               (944)              (183)              (449)
                                                                 ---------------    ---------------    ---------------
        Net cash provided by (used in) operating activities                   47                 --                 29
                                                                 ---------------    ---------------    ---------------

Investing activities:

    Acquisition of hotels, net of cash acquired                               --                 --                 --
    Capital expenditures for property and equipment                          (47)                --                (29)
    Proceeds from sales of assets                                             --                 --                 --
    Change in restricted cash                                                 --                 --                 --
    Costs associated with disposition program and other, net                  --                 --                 --
                                                                 ---------------    ---------------    ---------------
        Net cash (used in) provided by investing activities                  (47)                --                (29)
                                                                 ---------------    ---------------    ---------------

Financing activities:

    Prepayments on long-term debt                                             --                 --                 --
    Proceeds from debt issuance, net of issuance costs                        --                 --                 --
    Scheduled payments on long-term debt                                      --                 --                 --
    Loans to/from subsidiaries                                                --                 --                 --
    Distributions to partners                                                 --                 --                 --
    Proceed from OP units issuance                                            --                 --                 --
    Purchase of OP units                                                      --                 --                 --
    Other                                                                     --                 --                 --
                                                                 ---------------    ---------------    ---------------
        Net cash provided by (used in) financing activities                   --                 --                 --
                                                                 ---------------    ---------------    ---------------

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

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                --                 --                 --
                                                                 ---------------    ---------------    ---------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                      --                 --                 --
                                                                 ===============    ===============    ===============

<Caption>
                                                                  MERISTAR SUB       MERISTAR SUB       MERISTAR SUB
                                                                     4B, L.P.           2C, LLC            4G, L.P.
                                                                 ---------------    ---------------    ---------------
<S>                                                              <C>                <C>                <C>
Operating activities:

    Net (loss) income                                                       (217)            (1,645)               341
    Adjustments to reconcile net (loss) income to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                           --                 --                223
      Equity in earnings                                                      --                 --                 --
      Loss on asset impairments                                               --                903                245
      Loss on sale of assets, before tax effect                              215              1,612                 --
      Loss on early extinguishments of debt                                   --                 --                 --
      Minority interests                                                      --                 --                 --
      Amortization of unearned stock-based compensation                       --                 --                 --
      Deferred income taxes                                                   --                 --                 --
      Changes in operating assets and liabilities:                            --                 --                 --
        Accounts receivable                                                   --                 (7)                --
        Prepaid expenses and other assets                                     (4)              (234)                81
        Due from/to Interstate Hotels & Resorts                               --                 --                 --
        Accounts payable, accrued expenses, accrued interest
          and other liabilities                                             (464)              (217)              (317)
        Due from subsidiaries                                             (6,348)            11,658               (569)
                                                                 ---------------    ---------------    ---------------
        Net cash provided by (used in) operating activities               (6,818)            12,070                  4
                                                                 ---------------    ---------------    ---------------

Investing activities:

    Acquisition of hotels, net of cash acquired                               --                 --                 --
    Capital expenditures for property and equipment                         (200)               (81)                (4)
    Proceeds from sales of assets                                          7,500              8,398                 --
    Change in restricted cash                                                 --                 --                 --
    Costs associated with disposition program and other, net                (482)              (656)                --
                                                                 ---------------    ---------------    ---------------
        Net cash (used in) provided by investing activities                6,818              7,661                 (4)
                                                                 ---------------    ---------------    ---------------

Financing activities:

    Prepayments on long-term debt                                             --            (19,731)                --
    Proceeds from debt issuance, net of issuance costs                        --                 --                 --
    Scheduled payments on long-term debt                                      --                 --                 --
    Loans to/from subsidiaries                                                --                 --                 --
    Distributions to partners                                                 --                 --                 --
    Proceed from OP units issuance                                            --                 --                 --
    Purchase of OP units                                                      --                 --                 --
    Other                                                                     --                 --                 --
                                                                 ---------------    ---------------    ---------------
        Net cash provided by (used in) financing activities                   --            (19,731)                --
                                                                 ---------------    ---------------    ---------------

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

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                --                 --                 --
                                                                 ---------------    ---------------    ---------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                      --                 --                 --
                                                                 ===============    ===============    ===============

<Caption>
                                                                  MERISTAR SUB       MERISTAR SUB       MERISTAR SUB
                                                                     3B, LLC           5G, L.P.            5P, LLC
                                                                 ---------------    ---------------    ---------------
<S>                                                              <C>                <C>                <C>
Operating activities:

    Net (loss) income                                                         --              1,551                483
    Adjustments to reconcile net (loss) income to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                           --              3,150                  2
      Equity in earnings                                                      --                 --                 --
      Loss on asset impairments                                               --                 --                 --
      Loss on sale of assets, before tax effect                               --                 --                 --
      Loss on early extinguishments of debt                                   --                 --                 --
      Minority interests                                                      --                 --                 --
      Amortization of unearned stock-based compensation                       --                 --                 --
      Deferred income taxes                                                   --                 --                 --
      Changes in operating assets and liabilities:                            --                 --                 --
        Accounts receivable                                                   --                 --                 --
        Prepaid expenses and other assets                                     --                228                  3
        Due from/to Interstate Hotels & Resorts                               --                 --                 --
        Accounts payable, accrued expenses, accrued interest
          and other liabilities                                               22               (478)                --
        Due from subsidiaries                                                (22)              (398)              (488)
                                                                 ---------------    ---------------    ---------------
        Net cash provided by (used in) operating activities                   --              4,053                 --
                                                                 ---------------    ---------------    ---------------

Investing activities:

    Acquisition of hotels, net of cash acquired                               --                 --                 --
    Capital expenditures for property and equipment                           --             (4,053)                --
    Proceeds from sales of assets                                             --                 --                 --
    Change in restricted cash                                                 --                 --                 --
    Costs associated with disposition program and other, net                  --                 --                 --
                                                                 ---------------    ---------------    ---------------
        Net cash (used in) provided by investing activities                   --             (4,053)                --
                                                                 ---------------    ---------------    ---------------

Financing activities:

    Prepayments on long-term debt                                             --                 --                 --
    Proceeds from debt issuance, net of issuance costs                        --                 --                 --
    Scheduled payments on long-term debt                                      --                 --                 --
    Loans to/from subsidiaries                                                --                 --                 --
    Distributions to partners                                                 --                 --                 --
    Proceed from OP units issuance                                            --                 --                 --
    Purchase of OP units                                                      --                 --                 --
    Other                                                                     --                 --                 --
                                                                 ---------------    ---------------    ---------------
        Net cash provided by (used in) financing activities                   --                 --                 --
                                                                 ---------------    ---------------    ---------------

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

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                --                 --                 --
                                                                 ---------------    ---------------    ---------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                      --                 --                 --
                                                                 ===============    ===============    ===============
</Table>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING CASH FLOW
SIX MONTHS ENDED JUNE 30, 2004
UNAUDITED
(DOLLARS IN THOUSANDS)

<Table>
<Caption>
                                                                 MERISTAR SUB     MERISTAR SUB     MERISTAR SUB
                                                                    5J, LLC          5Q, LLC          5A, LLC
                                                                 -------------    -------------    -------------
<S>                                                              <C>              <C>              <C>
Operating activities:

    Net (loss) income                                                    1,603              639              836
    Adjustments to reconcile net (loss) income to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                      2,810              294              532
      Equity in earnings                                                    --               --               --
      Loss on asset impairments                                             --               --               --
      Loss on sale of assets, before tax effect                             --               --               --
      Loss on early extinguishments of debt                                 --               --               --
      Minority interests                                                    --               --               --
      Amortization of unearned stock-based compensation                     --               --               --
      Deferred income taxes                                                 --               --               --
      Changes in operating assets and liabilities:                          --               --               --
        Accounts receivable                                                 --               --               --
        Prepaid expenses and other assets                                  292               46               26
        Due from/to Interstate Hotels & Resorts                             --               --               --
        Accounts payable, accrued expenses, accrued interest
          and other liabilities                                            310              229              559
        Due from subsidiaries                                           (3,014)          (1,040)          (1,315)
                                                                 -------------    -------------    -------------
        Net cash provided by (used in) operating activities              2,001              168              638
                                                                 -------------    -------------    -------------

Investing activities:

    Acquisition of hotels, net of cash acquired                             --               --               --
    Capital expenditures for property and equipment                     (2,001)            (168)            (638)
    Proceeds from sales of assets                                           --               --               --
    Change in restricted cash                                               --               --               --
    Costs associated with disposition program and other, net                --               --               --
                                                                 -------------    -------------    -------------
        Net cash (used in) provided by investing activities             (2,001)            (168)            (638)
                                                                 -------------    -------------    -------------

Financing activities:

    Prepayments on long-term debt                                           --               --               --
    Proceeds from debt issuance, net of issuance costs                      --               --               --
    Scheduled payments on long-term debt                                    --               --               --
    Loans to/from subsidiaries                                              --               --               --
    Distributions to partners                                               --               --               --
    Proceed from OP units issuance                                          --               --               --
    Purchase of OP units                                                    --               --               --
    Other                                                                   --               --               --
                                                                 -------------    -------------    -------------
        Net cash provided by (used in) financing activities                 --               --               --
                                                                 -------------    -------------    -------------

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

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                              --               --               --
                                                                 -------------    -------------    -------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                    --               --               --
                                                                 =============    =============    =============

<Caption>
                                                                                                     MERISTAR
                                                                 MERISTAR SUB     MERISTAR SUB     PENTAGON CITY,
                                                                    8D, LLC          4J, LLC           LLC
                                                                 -------------    -------------    -------------
<S>                                                              <C>              <C>              <C>
Operating activities:

    Net (loss) income                                                     (857)             437              861
    Adjustments to reconcile net (loss) income to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                         --              632              355
      Equity in earnings                                                    --               --               --
      Loss on asset impairments                                             --               --               --
      Loss on sale of assets, before tax effect                            899               --               --
      Loss on early extinguishments of debt                                 --               --               --
      Minority interests                                                    --               --               --
      Amortization of unearned stock-based compensation                     --               --               --
      Deferred income taxes                                                 --               --               --
      Changes in operating assets and liabilities:                          --               --               --
        Accounts receivable                                               (359)               1               --
        Prepaid expenses and other assets                                   14               17               --
        Due from/to Interstate Hotels & Resorts                             --               --               --
        Accounts payable, accrued expenses, accrued interest
          and other liabilities                                            (76)              74              325
        Due from subsidiaries                                           (7,723)            (440)          35,990
                                                                 -------------    -------------    -------------
        Net cash provided by (used in) operating activities             (8,102)             721           37,531
                                                                 -------------    -------------    -------------

Investing activities:

    Acquisition of hotels, net of cash acquired                             --               --          (92,672)
    Capital expenditures for property and equipment                       (359)            (721)            (135)
    Proceeds from sales of assets                                        8,800               --               --
    Change in restricted cash                                               --               --               --
    Costs associated with disposition program and other, net              (339)              --               --
                                                                 -------------    -------------    -------------
        Net cash (used in) provided by investing activities              8,102             (721)         (92,807)
                                                                 -------------    -------------    -------------

Financing activities:

    Prepayments on long-term debt                                           --               --               --
    Proceeds from debt issuance, net of issuance costs                      --               --           55,276
    Scheduled payments on long-term debt                                    --               --               --
    Loans to/from subsidiaries                                              --               --               --
    Distributions to partners                                               --               --               --
    Proceed from OP units issuance                                          --               --               --
    Purchase of OP units                                                    --               --               --
    Other                                                                   --               --               --
                                                                 -------------    -------------    -------------
        Net cash provided by (used in) financing activities                 --               --           55,276
                                                                 -------------    -------------    -------------

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

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                              --               --               --
                                                                 -------------    -------------    -------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                    --               --               --
                                                                 =============    =============    =============

<Caption>
                                                                   MERISTAR        GUARANTOR
                                                                 HOTEL LESSEE,    SUBSIDIARIES                          TOTAL
                                                                      INC.            TOTAL        ELIMINATIONS     CONSOLIDATED
                                                                 -------------    -------------    -------------    -------------
<S>                                                              <C>              <C>              <C>              <C>
Operating activities:

    Net (loss) income                                                  (31,167)         (13,057)          (6,014)         (52,938)
    Adjustments to reconcile net (loss) income to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                         84           19,955               --           51,985
      Equity in earnings                                                    --               --            6,014               --
      Loss on asset impairments                                             --            3,678               --            7,441
      Loss on sale of assets, before tax effect                          9,742           12,137               --           11,530
      Loss on early extinguishments of debt                                 --               --               --            7,903
      Minority interests                                                    --               --               --              (24)
      Amortization of unearned stock-based compensation                     --               --               --            1,090
      Deferred income taxes                                                 --               --               --             (652)
      Changes in operating assets and liabilities:                          --               --               --               --
        Accounts receivable                                             (6,442)            (574)           4,344           (4,227)
        Prepaid expenses and other assets                                1,958            3,347               --            4,864
        Due from/to Interstate Hotels & Resorts                        (10,049)         (10,049)              --           (3,241)
        Accounts payable, accrued expenses, accrued interest
          and other liabilities                                         11,181            9,811           (4,344)          (6,040)
        Due from subsidiaries                                            6,939          (19,903)              --               --
                                                                 -------------    -------------    -------------    -------------
        Net cash provided by (used in) operating activities            (17,754)           5,345               --           17,691
                                                                 -------------    -------------    -------------    -------------

Investing activities:

    Acquisition of hotels, net of cash acquired                          2,022          (90,650)              --         (182,790)
    Capital expenditures for property and equipment                       (170)         (25,429)              --          (49,898)
    Proceeds from sales of assets                                           --           62,798               --          104,873
    Change in restricted cash                                           (2,490)          (2,490)              --          (29,955)
    Costs associated with disposition program and other, net                --           (3,511)              --           (5,081)
                                                                 -------------    -------------    -------------    -------------
        Net cash (used in) provided by investing activities               (638)         (59,282)              --         (162,851)
                                                                 -------------    -------------    -------------    -------------

Financing activities:

    Prepayments on long-term debt                                           --          (19,731)              --         (105,857)
    Proceeds from debt issuance, net of issuance costs                      --           55,276               --          109,687
    Scheduled payments on long-term debt                                    --               --               --           (3,691)
    Loans to/from subsidiaries                                          29,460           29,460               --               --
    Distributions to partners                                               --               --               --             (141)
    Proceed from OP units issuance                                          --               --               --           72,340
    Purchase of OP units                                                    --               --               --           (8,690)
    Other                                                                   --               --               --             (325)
                                                                 -------------    -------------    -------------    -------------
        Net cash provided by (used in) financing activities             29,460           65,005               --           63,323
                                                                 -------------    -------------    -------------    -------------

Effect of exchange rate changes on cash                                     --               --               --             (227)
                                                                 -------------    -------------    -------------    -------------
NET CHANGE IN CASH                                                      11,068           11,068               --          (82,064)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                          12,231           12,231               --          230,876
                                                                 -------------    -------------    -------------    -------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                23,299           23,299               --          148,812
                                                                 =============    =============    =============    =============
</Table>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING CASH FLOW
SIX MONTHS ENDED JUNE 30, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)

<Table>
<Caption>
                                                                  MERISTAR
                                                                HOSPITALITY OP,     NON-GUARANTOR       MERISTAR SUB
                                                                     L.P.            SUBSIDIARIES          7C, LLC
                                                               ----------------    ----------------    ----------------
<S>                                                            <C>                 <C>                 <C>
Operating activities:

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

Investing activities:

   Capital expenditures for property and equipment                         (503)             (3,061)                 --
   Proceeds from sales of assets                                             --              12,650                  --
   Purchases of marketable securities                                   (18,056)                 --                  --
   Payments to Interstate Hotels & Resorts                               42,052                  --                  --
   Increase in restricted cash                                           (9,692)                (48)                 --
   Costs associated with disposition program and other, net                  --                (299)                 --
                                                               ----------------    ----------------    ----------------
       Net cash provided by (used in) investing activities               13,801               9,242                  --
                                                               ----------------    ----------------    ----------------

Financing activities:

   Scheduled payments on long-term debt                                 (24,359)             (3,654)                 --
   Distributions to partners                                               (141)                 --                  --
   Purchase of limited partnership unit                                     (65)                 --                  --

                                                               ----------------    ----------------    ----------------
       Net cash (used in) provided by financing activities              (24,565)             (3,654)                 --
                                                               ----------------    ----------------    ----------------

Effect of exchange rate changes on cash                                    (115)                 --                  --
                                                               ----------------    ----------------    ----------------
NET CHANGE IN CASH AND CASH EQUIVALENTS                                  18,873                  --                  --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                           21,372                  --                  --

                                                               ----------------    ----------------    ----------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                 40,245                  --                  --
                                                               ================    ================    ================

<Caption>


                                                                 AGH UPREIT,       MERISTAR SUB         MERISTAR SUB
                                                                     LLC              5N, LLC             8A, LLC
                                                               ----------------   ----------------    ----------------
<S>                                                            <C>                <C>                 <C>
Operating activities:

   Net (loss) income                                                         --                394                  --
   Adjustments to reconcile net (loss) income to net cash
     provided by (used in) operating activities:
     Depreciation and amortization                                           --                 69                  --
     Equity in earnings of affiliates                                        --                 --                  --
     Loss on asset impairments                                               --                 --                  --
     Minority interests                                                      --                 --                  --
     Amortization of unearned stock-based compensation                       --                 --                  --
     Change in value of interest rate swaps                                  --                 --                  --
     Deferred income taxes                                                   --                 --                  --
     Changes in operating assets and liabilities:
       Accounts receivable                                                   --                 --                  --
       Prepaid expenses and other assets                                     --                 --                  --
       Due from/to Interstate Hotels & Resorts                               --                 --                  --
       Accounts payable, accrued expenses, accrued interest
         and other liabilities                                               --                 15                  (1)
       Due to/from subsidiaries                                              --               (465)                  1
                                                               ----------------   ----------------    ----------------
       Net cash provided by (used in) operating activities                   --                 13                  --
                                                               ----------------   ----------------    ----------------

Investing activities:

   Capital expenditures for property and equipment                           --                (13)                 --
   Proceeds from sales of assets                                             --                 --                  --
   Purchases of marketable securities                                        --                 --                  --
   Payments to Interstate Hotels & Resorts                                   --                 --                  --
   Increase in restricted cash                                               --                 --                  --
   Costs associated with disposition program and other, net                  --                 --                  --
                                                               ----------------   ----------------    ----------------
       Net cash provided by (used in) investing activities                   --                (13)                 --
                                                               ----------------   ----------------    ----------------

Financing activities:

   Scheduled payments on long-term debt                                      --                 --                  --
   Distributions to partners                                                 --                 --                  --
   Purchase of limited partnership unit                                      --                 --                  --

                                                               ----------------   ----------------    ----------------
       Net cash (used in) provided by financing activities                   --                 --                  --
                                                               ----------------   ----------------    ----------------

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

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                               --                 --                  --

                                                               ----------------   ----------------    ----------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                     --                 --                  --
                                                               ================   ================    ================

<Caption>

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

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

Investing activities:

   Capital expenditures for property and equipment                          (21)                 --                 (7)
   Proceeds from sales of assets                                             --                  --                 --
   Purchases of marketable securities                                        --                  --                 --
   Payments to Interstate Hotels & Resorts                                   --                  --                 --
   Increase in restricted cash                                               --                  --                 --
   Costs associated with disposition program and other, net                  --                  --                 --
                                                               ----------------    ----------------   ----------------
       Net cash provided by (used in) investing activities                  (21)                 --                 (7)
                                                               ----------------    ----------------   ----------------

Financing activities:

   Scheduled payments on long-term debt                                      --                  --                 --
   Distributions to partners                                                 --                  --                 --
   Purchase of limited partnership unit                                      --                  --                 --

                                                               ----------------    ----------------   ----------------
       Net cash (used in) provided by financing activities                   --                  --                 --
                                                               ----------------    ----------------   ----------------

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

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                               --                  --                 --

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



<PAGE>



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

<Table>
<Caption>
                                                                 MERISTAR SUB       MERISTAR SUB       MERISTAR SUB 8E,
                                                                    8B, LLC            1C, L.P.              LLC
                                                               ----------------    ----------------    ----------------
<S>                                                            <C>                 <C>                 <C>
Operating activities:

   Net (loss) income                                                      1,724                 (48)                335
   Adjustments to reconcile net (loss) income to net cash
     provided by (used in) operating activities:
     Depreciation and amortization                                        1,220                 508                 291
     Equity in earnings of affiliates                                        --                  --                  --
     Loss on asset impairments                                               --                  --                  --
     Minority interests                                                      --                  --                  --
     Amortization of unearned stock-based compensation                       --                  --                  --
     Change in value of interest rate swaps                                  --                  --                  --
     Deferred income taxes                                                   --                  --                  --
     Changes in operating assets and liabilities:
       Accounts receivable                                                   --                  --                  --
       Prepaid expenses and other assets                                     --                 (17)                 --
       Due from/to Interstate Hotels & Resorts                               --                  --                  --
       Accounts payable, accrued expenses, accrued interest
        and other liabilities                                               (44)               (143)                (15)
       Due to/from subsidiaries                                          (2,164)               (223)               (543)
                                                               ----------------    ----------------    ----------------
       Net cash provided by (used in) operating activities                  736                  77                  68
                                                               ----------------    ----------------    ----------------

Investing activities:

   Capital expenditures for property and equipment                         (736)                (77)                (68)
   Proceeds from sales of assets                                             --                  --                  --
   Purchases of marketable securities                                        --                  --                  --
   Payments to Interstate Hotels & Resorts                                   --                  --                  --
   Increase in restricted cash                                               --                  --                  --
   Costs associated with disposition program and other, net                  --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash provided by (used in) investing activities                 (736)                (77)                (68)
                                                               ----------------    ----------------    ----------------

Financing activities:

   Scheduled payments on long-term debt                                      --                  --                  --
   Distributions to partners                                                 --                  --                  --
   Purchase of limited partnership unit                                      --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash (used in) provided by financing activities                   --                  --                  --
                                                               ----------------    ----------------    ----------------

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

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                               --                  --                  --
                                                               ----------------    ----------------    ----------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                     --                  --                  --
                                                               ================    ================    ================

<Caption>

                                                               MERISTAR SUB 7F,      MERISTAR SUB       MERISTAR SUB
                                                                     LLC               5L, LLC             3C, LLC
                                                               ----------------    ----------------    ----------------
<S>                                                            <C>                 <C>                 <C>
Operating activities:

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

Investing activities:

   Capital expenditures for property and equipment                          (33)                (92)                (12)
   Proceeds from sales of assets                                             --                  --                  --
   Purchases of marketable securities                                        --                  --                  --
   Payments to Interstate Hotels & Resorts                                   --                  --                  --
   Increase in restricted cash                                               --                  --                  --
   Costs associated with disposition program and other, net                  --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash provided by (used in) investing activities                  (33)                (92)                (12)
                                                               ----------------    ----------------    ----------------

Financing activities:

   Scheduled payments on long-term debt                                      --                  --                  --
   Distributions to partners                                                 --                  --                  --
   Purchase of limited partnership unit                                      --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash (used in) provided by financing activities                   --                  --                  --
                                                               ----------------    ----------------    ----------------

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

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                               --                  --                  --
                                                               ----------------    ----------------    ----------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                     --                  --                  --
                                                               ================    ================    ================

<Caption>

                                                                MERISTAR SUB       MERISTAR SUB       MERISTAR SUB 6E,
                                                                   5R, LLC            6D, LLC               LLC
                                                               ----------------   ----------------    ----------------
<S>                                                            <C>                <C>                 <C>
Operating activities:

   Net (loss) income                                                         --                539               1,647
   Adjustments to reconcile net (loss) income to net cash
     provided by (used in) operating activities:
     Depreciation and amortization                                           --                273                 822
     Equity in earnings of affiliates                                        --                 --                  --
     Loss on asset impairments                                               --                 --                  --
     Minority interests                                                      --                 --                  --
     Amortization of unearned stock-based compensation                       --                 --                  --
     Change in value of interest rate swaps                                  --                 --                  --
     Deferred income taxes                                                   --                 --                  --
     Changes in operating assets and liabilities:
       Accounts receivable                                                   --                 (5)                 --
       Prepaid expenses and other assets                                     --                 --                  --
       Due from/to Interstate Hotels & Resorts                               --                 --                  --
       Accounts payable, accrued expenses, accrued interest
        and other liabilities                                                --                 (6)                (45)
       Due to/from subsidiaries                                              --               (801)             (2,298)
                                                               ----------------   ----------------    ----------------
       Net cash provided by (used in) operating activities                   --                 --                 126
                                                               ----------------   ----------------    ----------------

Investing activities:

   Capital expenditures for property and equipment                           --                 --                (126)
   Proceeds from sales of assets                                             --                 --                  --
   Purchases of marketable securities                                        --                 --                  --
   Payments to Interstate Hotels & Resorts                                   --                 --                  --
   Increase in restricted cash                                               --                 --                  --
   Costs associated with disposition program and other, net                  --                 --                  --
                                                               ----------------   ----------------    ----------------
       Net cash provided by (used in) investing activities                   --                 --                (126)
                                                               ----------------   ----------------    ----------------

Financing activities:

   Scheduled payments on long-term debt                                      --                 --                  --
   Distributions to partners                                                 --                 --                  --
   Purchase of limited partnership unit                                      --                 --                  --
                                                               ----------------   ----------------    ----------------
       Net cash (used in) provided by financing activities                   --                 --                  --
                                                               ----------------   ----------------    ----------------

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

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



<PAGE>



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

<Table>
<Caption>
                                                               MERISTAR SUB 4E,     MERISTAR SUB       MERISTAR SUB 5F,
                                                                     L.P.              1B, LLC               L.P.
                                                               ----------------    ----------------    ----------------
<S>                                                            <C>                 <C>                 <C>
Operating activities:

   Net (loss) income                                                    (14,549)                887              (6,476)
   Adjustments to reconcile net (loss) income to net cash
     provided by (used in) operating activities:
     Depreciation and amortization                                          421                 284                 534
     Equity in earnings of affiliates                                        --                  --                  --
     Loss on asset impairments                                           14,611                  --               7,231
     Minority interests                                                      --                  --                  --
     Amortization of unearned stock-based compensation                       --                  --                  --
     Change in value of interest rate swaps                                  --                  --                  --
     Deferred income taxes                                                   --                  --                  --
     Changes in operating assets and liabilities:
       Accounts receivable                                                   --                  --                  --
       Prepaid expenses and other assets                                     --                 (36)                 --
       Due from/to Interstate Hotels & Resorts                               --                  --                  --
       Accounts payable, accrued expenses, accrued interest
        and other liabilities                                              (260)                (13)                 46
       Due to/from subsidiaries                                            (129)             (1,031)             (1,288)
                                                               ----------------    ----------------    ----------------
       Net cash provided by (used in) operating activities                   94                  91                  47
                                                               ----------------    ----------------    ----------------

Investing activities:

   Capital expenditures for property and equipment                          (94)                (80)                (47)
   Proceeds from sales of assets                                             --                  --                  --
   Purchases of marketable securities                                        --                  --                  --
   Payments to Interstate Hotels & Resorts                                   --                  --                  --
   Increase in restricted cash                                               --                  --                  --
   Costs associated with disposition program and other, net                  --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash provided by (used in) investing activities                  (94)                (80)                (47)
                                                               ----------------    ----------------    ----------------

Financing activities:

   Scheduled payments on long-term debt                                      --                 (11)                 --
   Distributions to partners                                                 --                  --                  --
   Purchase of limited partnership unit                                      --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash (used in) provided by financing activities                   --                 (11)                 --
                                                               ----------------    ----------------    ----------------

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

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                               --                  --                  --
                                                               ----------------    ----------------    ----------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                     --                  --                  --
                                                               ================    ================    ================

<Caption>

                                                                 MERISTAR SUB       MERISTAR SUB        MERISTAR SUB
                                                                   6G, LLC             8C, LLC             4C, L.P.
                                                               ----------------    ----------------    ----------------
<S>                                                            <C>                 <C>                 <C>
Operating activities:

   Net (loss) income                                                        629              (4,934)                 --
   Adjustments to reconcile net (loss) income to net cash
     provided by (used in) operating activities:
     Depreciation and amortization                                          430                 377                  --
     Equity in earnings of affiliates                                        --                  --                  --
     Loss on asset impairments                                               --               5,213                  --
     Minority interests                                                      --                  --                  --
     Amortization of unearned stock-based compensation                       --                  --                  --
     Change in value of interest rate swaps                                  --                  --                  --
     Deferred income taxes                                                   --                  --                  --
     Changes in operating assets and liabilities:
       Accounts receivable                                                   --                  --                  --
       Prepaid expenses and other assets                                     --                 (22)                  5
       Due from/to Interstate Hotels & Resorts                               --                  --                  --
       Accounts payable, accrued expenses, accrued interest
        and other liabilities                                              (150)               (145)                 (5)
       Due to/from subsidiaries                                            (805)               (480)                 --
                                                               ----------------    ----------------    ----------------
       Net cash provided by (used in) operating activities                  104                   9                  --
                                                               ----------------    ----------------    ----------------

Investing activities:

   Capital expenditures for property and equipment                         (104)                 (9)                 --
   Proceeds from sales of assets                                             --                  --                  --
   Purchases of marketable securities                                        --                  --                  --
   Payments to Interstate Hotels & Resorts                                   --                  --                  --
   Increase in restricted cash                                               --                  --                  --
   Costs associated with disposition program and other, net                  --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash provided by (used in) investing activities                 (104)                 (9)                 --
                                                               ----------------    ----------------    ----------------

Financing activities:

   Scheduled payments on long-term debt                                      --                  --                  --
   Distributions to partners                                                 --                  --                  --
   Purchase of limited partnership unit                                      --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash (used in) provided by financing activities                   --                  --                  --
                                                               ----------------    ----------------    ----------------

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

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                               --                  --                  --
                                                               ----------------    ----------------    ----------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                     --                  --                  --
                                                               ================    ================    ================

<Caption>

                                                                MERISTAR SUB       MERISTAR SUB 7E,     MERISTAR SUB
                                                                   4H, L.P.              LLC                3D, LLC
                                                               ----------------    ----------------    ----------------
<S>                                                            <C>                 <C>                 <C>
Operating activities:

   Net (loss) income                                                     (5,399)                265                 218
   Adjustments to reconcile net (loss) income to net cash
     provided by (used in) operating activities:
     Depreciation and amortization                                          264                 309                 392
     Equity in earnings of affiliates                                        --                  --                  --
     Loss on asset impairments                                            5,187                  --                  --
     Minority interests                                                      --                  --                  --
     Amortization of unearned stock-based compensation                       --                  --                  --
     Change in value of interest rate swaps                                  --                  --                  --
     Deferred income taxes                                                   --                  --                  --
     Changes in operating assets and liabilities:
       Accounts receivable                                                   14                  --                  --
       Prepaid expenses and other assets                                     (7)                 --                  --
       Due from/to Interstate Hotels & Resorts                               --                  --                  --
       Accounts payable, accrued expenses, accrued interest
        and other liabilities                                               (61)                 15                  54
       Due to/from subsidiaries                                              94                (495)               (556)
                                                               ----------------    ----------------    ----------------
       Net cash provided by (used in) operating activities                   92                  94                 108
                                                               ----------------    ----------------    ----------------

Investing activities:

   Capital expenditures for property and equipment                          (92)                (94)               (108)
   Proceeds from sales of assets                                             --                  --                  --
   Purchases of marketable securities                                        --                  --                  --
   Payments to Interstate Hotels & Resorts                                   --                  --                  --
   Increase in restricted cash                                               --                  --                  --
   Costs associated with disposition program and other, net                  --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash provided by (used in) investing activities                  (92)                (94)               (108)
                                                               ----------------    ----------------    ----------------

Financing activities:

   Scheduled payments on long-term debt                                      --                  --                  --
   Distributions to partners                                                 --                  --                  --
   Purchase of limited partnership unit                                      --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash (used in) provided by financing activities                   --                  --                  --
                                                               ----------------    ----------------    ----------------

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

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



<PAGE>



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

<Table>
<Caption>
                                                                MERISTAR SUB       MERISTAR SUB 5E,    MERISTAR SUB 7A
                                                                   1A, LLC               LLC            JOINT VENTURE
                                                               ----------------    ----------------    ----------------
<S>                                                            <C>                 <C>                 <C>
Operating activities:

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

Investing activities:

   Capital expenditures for property and equipment                          (94)                (49)               (113)
   Proceeds from sales of assets                                             --                  --                  --
   Purchases of marketable securities                                        --                  --                  --
   Payments to Interstate Hotels & Resorts                                   --                  --                  --
   Increase in restricted cash                                               --                  --                  --
   Costs associated with disposition program and other, net                  --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash provided by (used in) investing activities                  (94)                (49)               (113)
                                                               ----------------    ----------------    ----------------

Financing activities:

   Scheduled payments on long-term debt                                      --                  --                  --
   Distributions to partners                                                 --                  --                  --
   Purchase of limited partnership unit                                      --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash (used in) provided by financing activities                   --                  --                  --
                                                               ----------------    ----------------    ----------------

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

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                               --                  --                  --
                                                               ----------------    ----------------    ----------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                     --                  --                  --
                                                               ================    ================    ================

<Caption>

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

   Net (loss) income                                                      1,479              (4,971)             (1,399)
   Adjustments to reconcile net (loss) income to net cash
     provided by (used in) operating activities:
     Depreciation and amortization                                          370                 213                 131
     Equity in earnings of affiliates                                        --                  --                  --
     Loss on asset impairments                                               --               4,670               1,497
     Minority interests                                                      --                  --                  --
     Amortization of unearned stock-based compensation                       --                  --                  --
     Change in value of interest rate swaps                                  --                  --                  --
     Deferred income taxes                                                   --                  --                  --
     Changes in operating assets and liabilities:
       Accounts receivable                                                   --                   2                  --
       Prepaid expenses and other assets                                     --                  --                  (2)
       Due from/to Interstate Hotels & Resorts                               --                  --                  --
       Accounts payable, accrued expenses, accrued interest
        and other liabilities                                              (113)                 --                 (44)
       Due to/from subsidiaries                                          (1,727)                632                (160)
                                                               ----------------    ----------------    ----------------
       Net cash provided by (used in) operating activities                    9                 546                  23
                                                               ----------------    ----------------    ----------------

Investing activities:

   Capital expenditures for property and equipment                           (9)               (546)                (23)
   Proceeds from sales of assets                                             --                  --                  --
   Purchases of marketable securities                                        --                  --                  --
   Payments to Interstate Hotels & Resorts                                   --                  --                  --
   Increase in restricted cash                                               --                  --                  --
   Costs associated with disposition program and other, net                  --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash provided by (used in) investing activities                   (9)               (546)                (23)
                                                               ----------------    ----------------    ----------------

Financing activities:

   Scheduled payments on long-term debt                                      --                  --                  --
   Distributions to partners                                                 --                  --                  --
   Purchase of limited partnership unit                                      --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash (used in) provided by financing activities                   --                  --                  --
                                                               ----------------    ----------------    ----------------

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

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                               --                  --                  --
                                                               ----------------    ----------------    ----------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                     --                  --                  --
                                                               ================    ================    ================

<Caption>

                                                                MERISTAR SUB        MERISTAR SUB         MERISTAR SUB
                                                                   4A, LLC             4D, LLC             2A, LLC
                                                               ----------------    ----------------    ----------------
<S>                                                            <C>                 <C>                 <C>
Operating activities:

   Net (loss) income                                                     (1,101)               (939)             (3,221)
   Adjustments to reconcile net (loss) income to net cash
     provided by (used in) operating activities:
     Depreciation and amortization                                           --                  55                 164
     Equity in earnings of affiliates                                        --                  --                  --
     Loss on asset impairments                                            1,455               1,004               2,828
     Minority interests                                                      --                  --                  --
     Amortization of unearned stock-based compensation                       --                  --                  --
     Change in value of interest rate swaps                                  --                  --                  --
     Deferred income taxes                                                   --                  --                  --
     Changes in operating assets and liabilities:
       Accounts receivable                                                   --                  --                  (1)
       Prepaid expenses and other assets                                     --                  (3)                 --
       Due from/to Interstate Hotels & Resorts                               --                  --                  --
       Accounts payable, accrued expenses, accrued interest
        and other liabilities                                              (118)                 (5)                (79)
       Due to/from subsidiaries                                              (3)             (3,091)              1,153
                                                               ----------------    ----------------    ----------------
       Net cash provided by (used in) operating activities                  233              (2,979)                844
                                                               ----------------    ----------------    ----------------

Investing activities:

   Capital expenditures for property and equipment                         (233)                (91)               (844)
   Proceeds from sales of assets                                             --               3,070                  --
   Purchases of marketable securities                                        --                  --                  --
   Payments to Interstate Hotels & Resorts                                   --                  --                  --
   Increase in restricted cash                                               --                  --                  --
   Costs associated with disposition program and other, net                  --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash provided by (used in) investing activities                 (233)              2,979                (844)
                                                               ----------------    ----------------    ----------------

Financing activities:

   Scheduled payments on long-term debt                                      --                  --                  --
   Distributions to partners                                                 --                  --                  --
   Purchase of limited partnership unit                                      --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash (used in) provided by financing activities                   --                  --                  --
                                                               ----------------    ----------------    ----------------

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

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

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

<Table>
<Caption>
                                                                 MERISTAR SUB        MDV LIMITED        MERISTAR SUB
                                                                    6L, LLC          PARTNERSHIP           5C, LLC
                                                               ----------------    ----------------    ----------------
<S>                                                            <C>                 <C>                 <C>
Operating activities:

   Net (loss) income                                                    (13,081)                114              (7,069)
   Adjustments to reconcile net (loss) income to net cash
     provided by (used in) operating activities:
     Depreciation and amortization                                          445                  69                 289
     Equity in earnings of affiliates                                        --                  --                  --
     Loss on asset impairments                                           13,286                  --               7,187
     Minority interests                                                      --                  --                  --
     Amortization of unearned stock-based compensation                       --                  --                  --
     Change in value of interest rate swaps                                  --                  --                  --
     Deferred income taxes                                                   --                  --                  --
     Changes in operating assets and liabilities:
       Accounts receivable                                                   --                  --                  --
       Prepaid expenses and other assets                                     (2)                 --                  26
       Due from/to Interstate Hotels & Resorts                               --                  --                  --
       Accounts payable, accrued expenses, accrued interest
        and other liabilities                                                32                 (32)                (51)
       Due to/from subsidiaries                                            (635)               (143)               (302)
                                                               ----------------    ----------------    ----------------
       Net cash provided by (used in) operating activities                   45                   8                  80
                                                               ----------------    ----------------    ----------------

Investing activities:

   Capital expenditures for property and equipment                          (45)                 (8)                (80)
   Proceeds from sales of assets                                             --                  --                  --
   Purchases of marketable securities                                        --                  --                  --
   Payments to Interstate Hotels & Resorts                                   --                  --                  --
   Increase in restricted cash                                               --                  --                  --
   Costs associated with disposition program and other, net                  --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash provided by (used in) investing activities                  (45)                 (8)                (80)
                                                               ----------------    ----------------    ----------------

Financing activities:

   Scheduled payments on long-term debt                                      --                  --                  --
   Distributions to partners                                                 --                  --                  --
   Purchase of limited partnership unit                                      --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash (used in) provided by financing activities                   --                  --                  --
                                                               ----------------    ----------------    ----------------

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

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                               --                  --                  --
                                                               ----------------    ----------------    ----------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                     --                  --                  --
                                                               ================    ================    ================

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

   Net (loss) income                                                        621                 380             (10,191)
   Adjustments to reconcile net (loss) income to net cash
     provided by (used in) operating activities:
     Depreciation and amortization                                          302               1,148                 342
     Equity in earnings of affiliates                                        --                  --                  --
     Loss on asset impairments                                               --                  --              10,288
     Minority interests                                                      --                  --                  --
     Amortization of unearned stock-based compensation                       --                  --                  --
     Change in value of interest rate swaps                                  --                  --                  --
     Deferred income taxes                                                   --                  --                  --
     Changes in operating assets and liabilities:
       Accounts receivable                                                   --                  --                  --
       Prepaid expenses and other assets                                     --                  --                  --
       Due from/to Interstate Hotels & Resorts                               --                  --                  --
       Accounts payable, accrued expenses, accrued interest
        and other liabilities                                               (67)               (241)                (37)
       Due to/from subsidiaries                                            (822)             (1,201)               (364)
                                                               ----------------    ----------------    ----------------
       Net cash provided by (used in) operating activities                   34                  86                  38
                                                               ----------------    ----------------    ----------------

Investing activities:

   Capital expenditures for property and equipment                          (34)                (86)                (38)
   Proceeds from sales of assets                                             --                  --                  --
   Purchases of marketable securities                                        --                  --                  --
   Payments to Interstate Hotels & Resorts                                   --                  --                  --
   Increase in restricted cash                                               --                  --                  --
   Costs associated with disposition program and other, net                  --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash provided by (used in) investing activities                  (34)                (86)                (38)
                                                               ----------------    ----------------    ----------------

Financing activities:

   Scheduled payments on long-term debt                                      --                  --                  --
   Distributions to partners                                                 --                  --                  --
   Purchase of limited partnership unit                                      --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash (used in) provided by financing activities                   --                  --                  --
                                                               ----------------    ----------------    ----------------

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

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                               --                  --                  --
                                                               ----------------    ----------------    ----------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                     --                  --                  --
                                                               ================    ================    ================

<Caption>
                                                                MERISTAR SUB        MERISTAR SUB        MERISTAR SUB
                                                                   7D, LLC             7G, LLC              6B, LLC
                                                               ----------------    ----------------    ----------------
<S>                                                            <C>                 <C>                 <C>
Operating activities:

   Net (loss) income                                                      1,311              (7,531)                218
   Adjustments to reconcile net (loss) income to net cash
     provided by (used in) operating activities:
     Depreciation and amortization                                          862                 308                 232
     Equity in earnings of affiliates                                        --                  --                  --
     Loss on asset impairments                                               --               7,416                  --
     Minority interests                                                      --                  --                  --
     Amortization of unearned stock-based compensation                       --                  --                  --
     Change in value of interest rate swaps                                  --                  --                  --
     Deferred income taxes                                                   --                  --                  --
     Changes in operating assets and liabilities:
       Accounts receivable                                                  182                  --                  --
       Prepaid expenses and other assets                                     --                  --                  --
       Due from/to Interstate Hotels & Resorts                               --                  --                  --
       Accounts payable, accrued expenses, accrued interest
        and other liabilities                                              (169)               (132)                 92
       Due to/from subsidiaries                                          (2,139)                 (2)               (439)
                                                               ----------------    ----------------    ----------------
       Net cash provided by (used in) operating activities                   47                  59                 103
                                                               ----------------    ----------------    ----------------

Investing activities:

   Capital expenditures for property and equipment                          (47)                (59)               (103)
   Proceeds from sales of assets                                             --                  --                  --
   Purchases of marketable securities                                        --                  --                  --
   Payments to Interstate Hotels & Resorts                                   --                  --                  --
   Increase in restricted cash                                               --                  --                  --
   Costs associated with disposition program and other, net                  --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash provided by (used in) investing activities                  (47)                (59)               (103)
                                                               ----------------    ----------------    ----------------

Financing activities:

   Scheduled payments on long-term debt                                      --                  --                  --
   Distributions to partners                                                 --                  --                  --
   Purchase of limited partnership unit                                      --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash (used in) provided by financing activities                   --                  --                  --
                                                               ----------------    ----------------    ----------------

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

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


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

<Table>
<Caption>
                                                               MERISTAR SUB 4I,      MERISTAR SUB        MERISTAR SUB
                                                                      L.P.             5D, LLC             5H, LLC
                                                               ----------------    ----------------    ----------------
<S>                                                            <C>                 <C>                 <C>
Operating activities:

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

Investing activities:

   Capital expenditures for property and equipment                          (29)                (27)                (83)
   Proceeds from sales of assets                                             --                  --                  --
   Purchases of marketable securities                                        --                  --                  --
   Payments to Interstate Hotels & Resorts                                   --                  --                  --
   Increase in restricted cash                                               --                  --                  --
   Costs associated with disposition program and other, net                  --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash provided by (used in) investing activities                  (29)                (27)                (83)
                                                               ----------------    ----------------    ----------------

Financing activities:

   Scheduled payments on long-term debt                                      --                  --                  --
   Distributions to partners                                                 --                  --                  --
   Purchase of limited partnership unit                                      --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash (used in) provided by financing activities                   --                  --                  --
                                                               ----------------    ----------------    ----------------

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

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                               --                  --                  --
                                                               ----------------    ----------------    ----------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                     --                  --                  --
                                                               ================    ================    ================

<Caption>
                                                                 MERISTAR SUB                            MERISTAR SUB
                                                                    7H, LLC         AGH PSS I, INC.        2D, LLC
                                                               ----------------    ----------------    ----------------
<S>                                                            <C>                 <C>                 <C>
Operating activities:

   Net (loss) income                                                     (1,086)               (896)             (8,913)
   Adjustments to reconcile net (loss) income to net cash
     provided by (used in) operating activities:
     Depreciation and amortization                                           97                  --                 234
     Equity in earnings of affiliates                                        --                  --                  --
     Loss on asset impairments                                            1,383               1,787               8,685
     Minority interests                                                      --                  --                  --
     Amortization of unearned stock-based compensation                       --                  --                  --
     Change in value of interest rate swaps                                  --                  --                  --
     Deferred income taxes                                                   --                  --                  --
     Changes in operating assets and liabilities:
       Accounts receivable                                                   --                  --                  (7)
       Prepaid expenses and other assets                                     --                  --                  --
       Due from/to Interstate Hotels & Resorts                               --                  --                  --
       Accounts payable, accrued expenses, accrued interest
        and other liabilities                                               (23)                 88                (158)
       Due to/from subsidiaries                                            (354)               (932)                968
                                                               ----------------    ----------------    ----------------
       Net cash provided by (used in) operating activities                   17                  47                 809
                                                               ----------------    ----------------    ----------------

Investing activities:

   Capital expenditures for property and equipment                          (17)                (47)               (809)
   Proceeds from sales of assets                                             --                  --                  --
   Purchases of marketable securities                                        --                  --                  --
   Payments to Interstate Hotels & Resorts                                   --                  --                  --
   Increase in restricted cash                                               --                  --                  --
   Costs associated with disposition program and other, net                  --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash provided by (used in) investing activities                  (17)                (47)               (809)


Financing activities:

   Scheduled payments on long-term debt                                      --                  --                  --
   Distributions to partners                                                 --                  --                  --
   Purchase of limited partnership unit                                      --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash (used in) provided by financing activities                   --                  --                  --
                                                               ----------------    ----------------    ----------------

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

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                               --                  --                  --
                                                               ----------------    ----------------    ----------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                     --                  --                  --
                                                               ================    ================    ================

<Caption>
                                                               MERISTAR SUB 4F,      MERISTAR SUB        MERISTAR SUB
                                                                     L.P.               5K, LLC            5M, LLC
                                                               ----------------    ----------------    ----------------
<S>                                                            <C>                 <C>                 <C>
Operating activities:

   Net (loss) income                                                        259                 428                 609
   Adjustments to reconcile net (loss) income to net cash
     provided by (used in) operating activities:
     Depreciation and amortization                                          556                 644                 236
     Equity in earnings of affiliates                                        --                  --                  --
     Loss on asset impairments                                               --                  --                  --
     Minority interests                                                      --                  --                  --
     Amortization of unearned stock-based compensation                       --                  --                  --
     Change in value of interest rate swaps                                  --                  --                  --
     Deferred income taxes                                                   --                  --                  --
     Changes in operating assets and liabilities:
       Accounts receivable                                                   --                  --                  --
       Prepaid expenses and other assets                                     --                  --                   2
       Due from/to Interstate Hotels & Resorts                               --                  --                  --
       Accounts payable, accrued expenses, accrued interest
        and other liabilities                                              (189)             (1,171)                 39
       Due to/from subsidiaries                                            (288)                159                (873)
                                                               ----------------    ----------------    ----------------
       Net cash provided by (used in) operating activities                  338                  60                  13
                                                               ----------------    ----------------    ----------------

Investing activities:

   Capital expenditures for property and equipment                         (338)                (60)                (13)
   Proceeds from sales of assets                                             --                  --                  --
   Purchases of marketable securities                                        --                  --                  --
   Payments to Interstate Hotels & Resorts                                   --                  --                  --
   Increase in restricted cash                                               --                  --                  --
   Costs associated with disposition program and other, net                  --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash provided by (used in) investing activities                 (338)                (60)                (13)
                                                               ----------------    ----------------    ----------------

Financing activities:

   Scheduled payments on long-term debt                                      --                  --                  --
   Distributions to partners                                                 --                  --                  --
   Purchase of limited partnership unit                                      --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash (used in) provided by financing activities                   --                  --                  --
                                                               ----------------    ----------------    ----------------

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

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


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

<Table>
<Caption>
                                                               MERISTAR SUB 1E,      MERISTAR SUB        MERISTAR SUB
                                                                     L.P.              5O, LLC            6M COMPANY
                                                               ----------------    ----------------    ----------------
<S>                                                            <C>                 <C>                 <C>
Operating activities:

   Net (loss) income                                                        538                 274               1,296
   Adjustments to reconcile net (loss) income to net cash
     provided by (used in) operating activities:
     Depreciation and amortization                                          158                 114                 616
     Equity in earnings of affiliates                                        --                  --                  --
     Loss on asset impairments                                               --                  --                  --
     Minority interests                                                      --                  --                  --
     Amortization of unearned stock-based compensation                       --                  --                  --
     Change in value of interest rate swaps                                  --                  --                  --
     Deferred income taxes                                                   --                  --                  --
     Changes in operating assets and liabilities:
       Accounts receivable                                                   --                  --                  --
       Prepaid expenses and other assets                                     --                  --                  --
       Due from/to Interstate Hotels & Resorts                               --                  --                  --
       Accounts payable, accrued expenses, accrued interest
        and other liabilities                                               (27)                 19                 136
       Due to/from subsidiaries                                            (650)               (401)             (2,032)
                                                               ----------------    ----------------    ----------------
       Net cash provided by (used in) operating activities                   19                   6                  16
                                                               ----------------    ----------------    ----------------

Investing activities:

   Capital expenditures for property and equipment                          (19)                 (6)                (16)
   Proceeds from sales of assets                                             --                  --                  --
   Purchases of marketable securities                                        --                  --                  --
   Payments to Interstate Hotels & Resorts                                   --                  --                  --
   Increase in restricted cash                                               --                  --                  --
   Costs associated with disposition program and other, net                  --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash provided by (used in) investing activities                  (19)                 (6)                (16)
                                                               ----------------    ----------------    ----------------

Financing activities:

   Scheduled payments on long-term debt                                      --                  --                  --
   Distributions to partners                                                 --                  --                  --
   Purchase of limited partnership unit                                      --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash (used in) provided by financing activities                   --                  --                  --
                                                               ----------------    ----------------    ----------------

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

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                               --                  --                  --
                                                               ----------------    ----------------    ----------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                     --                  --                  --
                                                               ================    ================    ================

<Caption>
                                                                 MERISTAR SUB        MERISTAR SUB        MERISTAR SUB
                                                                    4B, L.P.            6C, LLC             2C, LLC
                                                               ----------------    ----------------    ----------------
<S>                                                            <C>                 <C>                 <C>
Operating activities:

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

Investing activities:

   Capital expenditures for property and equipment                          (80)                (56)             (1,482)
   Proceeds from sales of assets                                             --                  --                  --
   Purchases of marketable securities                                        --                  --                  --
   Payments to Interstate Hotels & Resorts                                   --                  --                  --
   Increase in restricted cash                                               --                  --                  --
   Costs associated with disposition program and other, net                  --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash provided by (used in) investing activities                  (80)                (56)             (1,482)
                                                               ----------------    ----------------    ----------------

Financing activities:

   Scheduled payments on long-term debt                                      --                  --                  --
   Distributions to partners                                                 --                  --                  --
   Purchase of limited partnership unit                                      --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash (used in) provided by financing activities                   --                  --                  --
                                                               ----------------    ----------------    ----------------

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

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                               --                  --                  --
                                                               ----------------    ----------------    ----------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                     --                  --                  --
                                                               ================    ================    ================

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

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

Investing activities:

   Capital expenditures for property and equipment                          (17)                 81                (392)
   Proceeds from sales of assets                                             --                  --                  --
   Purchases of marketable securities                                        --                  --                  --
   Payments to Interstate Hotels & Resorts                                   --                  --                  --
   Increase in restricted cash                                               --                  --                  --
   Costs associated with disposition program and other, net                  --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash provided by (used in) investing activities                  (17)                 81                (392)
                                                               ----------------    ----------------    ----------------

Financing activities:

   Scheduled payments on long-term debt                                      --                  --                  --
   Distributions to partners                                                 --                  --                  --
   Purchase of limited partnership unit                                      --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash (used in) provided by financing activities                   --                  --                  --
                                                               ----------------    ----------------    ----------------

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

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

<PAGE>


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

<Table>
<Caption>
                                                                 MERISTAR SUB      MERISTAR SUB 5J,      MERISTAR SUB
                                                                    5P, LLC              LLC                5Q, LLC
                                                               ----------------    ----------------    ----------------
<S>                                                            <C>                 <C>                 <C>
Operating activities:

   Net (loss) income                                                        680               2,886                 809
   Adjustments to reconcile net (loss) income to net cash
     provided by (used in) operating activities:
     Depreciation and amortization                                            2               1,741                 280
     Equity in earnings of affiliates                                        --                  --                  --
     Loss on asset impairments                                               --                  --                  --
     Minority interests                                                      --                  --                  --
     Amortization of unearned stock-based compensation                       --                  --                  --
     Change in value of interest rate swaps                                  --                  --                  --
     Deferred income taxes                                                   --                  --                  --
     Changes in operating assets and liabilities:
       Accounts receivable                                                   --                  --                  --
       Prepaid expenses and other assets                                     (8)                 29                  --
       Due from/to Interstate Hotels & Resorts                               --                  --                  --
       Accounts payable, accrued expenses, accrued interest
        and other liabilities                                                 4                  25                  (2)
       Due to/from subsidiaries                                            (678)             (3,043)               (976)
                                                               ----------------    ----------------    ----------------
       Net cash provided by (used in) operating activities                   --               1,638                 111
                                                               ----------------    ----------------    ----------------

Investing activities:

   Capital expenditures for property and equipment                           --              (1,638)               (111)
   Proceeds from sales of assets                                             --                  --                  --
   Purchases of marketable securities                                        --                  --                  --
   Payments to Interstate Hotels & Resorts                                   --                  --                  --
   Increase in restricted cash                                               --                  --                  --
   Costs associated with disposition program and other, net                  --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash provided by (used in) investing activities                   --              (1,638)               (111)
                                                               ----------------    ----------------    ----------------

Financing activities:

   Scheduled payments on long-term debt                                      --                  --                  --
   Distributions to partners                                                 --                  --                  --
   Purchase of limited partnership unit                                      --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash (used in) provided by financing activities                   --                  --                  --
                                                               ----------------    ----------------    ----------------

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

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                               --                  --                  --
                                                               ----------------    ----------------    ----------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                     --                  --                  --
                                                               ================    ================    ================

<Caption>
                                                                 MERISTAR SUB        MERISTAR SUB      MERISTAR SUB 4J,
                                                                    5A, LLC             8D, LLC               LLC
                                                               ----------------    ----------------    ----------------
<S>                                                            <C>                 <C>                 <C>
Operating activities:

   Net (loss) income                                                        394                 338                 620
   Adjustments to reconcile net (loss) income to net cash
     provided by (used in) operating activities:
     Depreciation and amortization                                          771                 627                 643
     Equity in earnings of affiliates                                        --                  --                  --
     Loss on asset impairments                                               --                  --                  --
     Minority interests                                                      --                  --                  --
     Amortization of unearned stock-based compensation                       --                  --                  --
     Change in value of interest rate swaps                                  --                  --                  --
     Deferred income taxes                                                   --                  --                  --
     Changes in operating assets and liabilities:
       Accounts receivable                                                   --                  --                 (12)
       Prepaid expenses and other assets                                     --                 (23)                 --
       Due from/to Interstate Hotels & Resorts                               --                  --                  --
       Accounts payable, accrued expenses, accrued interest
        and other liabilities                                               197                 (15)                (43)
       Due to/from subsidiaries                                          (1,132)               (564)             (1,186)
                                                               ----------------    ----------------    ----------------
       Net cash provided by (used in) operating activities                  230                 363                  22
                                                               ----------------    ----------------    ----------------

Investing activities:

   Capital expenditures for property and equipment                         (230)               (363)                (22)
   Proceeds from sales of assets                                             --                  --                  --
   Purchases of marketable securities                                        --                  --                  --
   Payments to Interstate Hotels & Resorts                                   --                  --                  --
   Increase in restricted cash                                               --                  --                  --
   Costs associated with disposition program and other, net                  --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash provided by (used in) investing activities                 (230)               (363)                (22)
                                                               ----------------    ----------------    ----------------

Financing activities:

   Scheduled payments on long-term debt                                      --                  --                  --
   Distributions to partners                                                 --                  --                  --
   Purchase of limited partnership unit                                      --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash (used in) provided by financing activities                   --                  --                  --
                                                               ----------------    ----------------    ----------------

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

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                               --                  --                  --
                                                               ----------------    ----------------    ----------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                     --                  --                  --
                                                               ================    ================    ================

<Caption>
                                                                                      GUARANTOR
                                                                MERISTAR HOTEL       SUBSIDIARIES
                                                                  LESSEE, INC.           TOTAL           ELIMINATIONS
                                                               ----------------    ----------------    ----------------
<S>                                                            <C>                 <C>                 <C>
Operating activities:

   Net (loss) income                                                     (7,420)           (124,398)            230,202
   Adjustments to reconcile net (loss) income to net cash
     provided by (used in) operating activities:
     Depreciation and amortization                                          532              27,848                  --
     Equity in earnings of affiliates                                        --                  --            (230,202)
     Loss on asset impairments                                               --             144,760                  --
     Minority interests                                                      --                  --                  --
     Amortization of unearned stock-based compensation                       --                  --                  --
     Change in value of interest rate swaps                                  --                  --                  --
     Deferred income taxes                                                   --                  --                  --
     Changes in operating assets and liabilities:
       Accounts receivable                                               (9,713)             (9,520)                 --
       Prepaid expenses and other assets                                   (243)               (340)                 --
       Due from/to Interstate Hotels & Resorts                           (5,298)             (5,298)                 --
       Accounts payable, accrued expenses, accrued interest
        and other liabilities                                            (2,273)             (5,572)                 --
       Due to/from subsidiaries                                           5,031             (39,834)                 --
                                                               ----------------    ----------------    ----------------
       Net cash provided by (used in) operating activities              (19,384)            (12,354)                 --
                                                               ----------------    ----------------    ----------------

Investing activities:

   Capital expenditures for property and equipment                         (894)            (10,983)                 --
   Proceeds from sales of assets                                             --               3,070                  --
   Purchases of marketable securities                                        --                  --                  --
   Payments to Interstate Hotels & Resorts                                   --                  --                  --
   Increase in restricted cash                                               --                  --                  --
   Costs associated with disposition program and other, net                  --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash provided by (used in) investing activities                 (894)             (7,913)                 --
                                                               ----------------    ----------------    ----------------

Financing activities:

   Scheduled payments on long-term debt                                  23,816              23,805                  --
   Distributions to partners                                                 --                  --                  --
   Purchase of limited partnership unit                                      --                  --                  --
                                                               ----------------    ----------------    ----------------
       Net cash (used in) provided by financing activities               23,816              23,805                  --
                                                               ----------------    ----------------    ----------------

Effect of exchange rate changes on cash                                      --                  --                  --
                                                               ----------------    ----------------    ----------------
NET CHANGE IN CASH AND CASH EQUIVALENTS                                   3,538               3,538                  --

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


<PAGE>


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

<Table>
<Caption>
                                                                    TOTAL
                                                                 CONSOLIDATED
                                                               ----------------
<S>                                                            <C>
Operating activities:

   Net (loss) income                                                   (289,857)
   Adjustments to reconcile net (loss) income to net cash
     provided by (used in) operating activities:
     Depreciation and amortization                                       58,478
     Equity in earnings of affiliates                                        --
     Loss on asset impairments                                          264,677
     Minority interests                                                       6
     Amortization of unearned stock-based compensation                    1,433
     Change in value of interest rate swaps                              (3,395)
     Deferred income taxes                                               (1,534)
     Changes in operating assets and liabilities:
       Accounts receivable                                              (12,168)
       Prepaid expenses and other assets                                  4,225
       Due from/to Interstate Hotels & Resorts                           (4,575)
       Accounts payable, accrued expenses, accrued interest
        and other liabilities                                            (5,480)
       Due to/from subsidiaries                                              --
                                                               ----------------
       Net cash provided by (used in) operating activities               11,810
                                                               ----------------
Investing activities:

   Capital expenditures for property and equipment                      (14,547)
   Proceeds from sales of assets                                         15,720
   Purchases of marketable securities                                   (18,056)
   Payments to Interstate Hotels & Resorts                               42,052
   Increase in restricted cash                                           (9,740)
   Costs associated with disposition program and other, net                (299)
                                                               ----------------
       Net cash provided by (used in) investing activities               15,130
                                                               ----------------
Financing activities:

   Scheduled payments on long-term debt                                  (4,208)
   Distributions to partners                                               (141)
   Purchase of limited partnership unit                                     (65)
                                                               ----------------
       Net cash (used in) provided by financing activities               (4,414)
                                                               ----------------

Effect of exchange rate changes on cash                                    (115)
                                                               ----------------
NET CHANGE IN CASH AND CASH EQUIVALENTS                                  22,411

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                           33,889
                                                               ----------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                 56,300
                                                               ================
</Table>