##### 



Exhibit 99.1

MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Balance Sheet
June 30, 2002
(in thousands)

|                                  |                                                          |  |             |           |              |  |           |           |         |  |          |    |          |  |          |       |          |  |       |       |   |  |       |        |   |  |        |        |   |  |    |    | 
|--------------------------------- | -------------------------------------------------------- |  | ----------- | --------- | ------------ |  | --------- | --------- | ------- |  | -------- | -- | -------- |  | -------- | ----- | -------- |  | ----- | ----- | - |  | ----- | ------ | - |  | ------ | ------ | - |  | -- | -- | 
|                                  |                                                          |  |             |           |              |  |           |           |         |  |          |    |          |  |          |       |          |  |       |       |   |  |       |        |   |  |        |        |  
|                                  |                                                          |  | MeriStar    |           | Non-         |  | MeriStar  |           | AGH     |  | MeriStar |    | MeriStar |  | MeriStar |       | MeriStar
|                                  |                                                          |  | Hospitality |           | Guarantor    |  | Sub 7C,   |           | Upreit, |  | Sub
5N,  |    | Sub 8A   |  | Sub 8F,  |       | Sub
8G, 
|                                  |                                                          |  | OP, L.P.    |           | Subsidiaries |  | LLC       |           | LLC     |  | LLC      |    | LLC      |  | L.P.     |       | LLC     
|                                  |                                                          | 
|Assets                            |                                                          |  |             |           |              |  |           |           |         |  |          |    |          |  |          |       |          |  |       |       |   |  |       |        |   |  |        |        |   |  |    |   
|                                 
|                                 
|                                 
|                                 
|                                  | Investment in hotel properties                           |  |             | 15,185    |              |  |           | 1,556,769 |         |  |          |   |          |  |          |      |          |  |       | 4,084 |   |  |       | 5,368  |   |  |        | 11,351 |   |  |    |   | 
|                                 
|                                 
|                                 
|                                 
|                                  | Accumulated depreciation                                 |  |             | (6,515    | )            |  |           | (211,259  | )       |  |          |   |          |  |          |      |          |  |       | (474  | ) |  |       | (1,047 | ) |  |        | (1,707 | ) |  |    |   | 
|                                  |                                                          | 
|                                  |                                                          |  | 8,670       |           |              |  | 1,345,509 |           |         |  |         |    |          |  |         |       |          |  | 3,609 |       |   |  | 4,320 |        |   |  | 9,644  |        |   |  |   |   
|                                 
|                                 
|                                 
|                                 
|                                  |                                                          |  |             |           |              |  |           |           |         |  |          |    |          |  |          |       |          |  |       |       |   |  |       |        |   |  |        |        |   |  |    |   
|                                 
|                                 
|                                 
|                                 
|                                  | Cash and cash equivalents                                |  |             | 81        |              |  |           |          |         |  |          |   |          |  |          |      |          |  |       |      |   |  |       |       |   |  |        |       |   |  |    |   | 
|                                 
|                                 
|                                 
|                                 
|                                  | Accounts receivable, net                                 |  |             | 8,014     |              |  |           | 1,327     |         |  |          |   |          |  |          |      |          |  |       |      |   |  |       | (16    | ) |  |        | (28    | ) |  |    |   | 
|                                 
|                                 
|                                 
|                                 
|                                  | Prepaid expenses and other                               |  |             | (34       | )            |  |           | 61        |         |  |          |   |          |  |          |      |          |  |       |      |   |  |       |       |   |  |        | 2      |   |  |    |   | 
|                                 
|                                 
|                                 
|                                 
|                                  | Note receivable                                          |  |             | 143,164   |              |  |           |          |         |  |          |   |          |  |          |      |          |  |       |      |   |  |       |       |   |  |        |       |   |  |    |   | 
|                                 
|                                 
|                                 
|                                 
|                                  | Due from subsidiaries                                    |  |             | (479,419  | )            |  |           | 138,212   |         |  |          |   |          |  |          | 7     |          |  |       | 3,349 |   |  |       | 5,260  |   |  |        | 4,687  |   |  |    | 9  | 
|                                 
|                                 
|                                 
|                                 
|                                  | Investments in affiliates                                |  |             | 2,683,014 |              |  |           | 8,200     |         |  |          | 32 |          |  |          | 3,056 |          |  |       |      |   |  |       |       |   |  |        |       |   |  |    | 72 | 
|                                 
|                                 
|                                 
|                                 
|                                  | Restricted cash                                          |  |             | 11,376    |              |  |           | 5,429     |         |  |          |   |          |  |          |      |          |  |       |      |   |  |       |       |   |  |        | 115    |   |  |    |   | 
|                                 
|                                 
|                                 
|                                 
|                                  | Intangible assets, net                                   |  |             | 18,556    |              |  |           | 898       |         |  |          |   |          |  |          |      |          |  |       |      |   |  |       |       |   |  |        |       |   |  |    |   | 
|                                  |                                                          | 
|                                  |                                                          |  | 2,393,422   |           |              |  | 1,499,637 |           |         |  | 32       |    |          |  | 3,063    |       |          |  | 6,959 |       |   |  | 9,565 |        |   |  | 14,420 |        |   |  | 82 |   
|                                  |                                                          | 
|Liabilities and Partners capital |                                                          |  |             |           |              |  |           |           |         |  |          |    |          |  |          |       |          |  |       |       |   |  |       |        |   |  |        |        |   |  |    |   
|                                 
|                                 
|                                 
|                                 
|                                  | Accounts payable, accrued expenses and other liabilities |  |             | 13,724    |              |  |           | 11,363    |         |  |          |   |          |  |          |      |          |  |       | 67    |   |  |       | (43    | ) |  |        | 179    |   |  |    |   | 
|                                 
|                                 
|                                 
|                                 
|                                  | Accrued interest                                         |  |             | 49,350    |              |  |           | 3,782     |         |  |          |   |          |  |          |      |          |  |       |      |   |  |       |       |   |  |        |       |   |  |    |   | 
|                                 
|                                 
|                                 
|                                 
|                                  | Due to MeriStar Hotels & Resorts                         |  |             | 120       |              |  |           |          |         |  |          |   |          |  |          |      |          |  |       |      |   |  |       |       |   |  |        |       |   |  |    |   | 
|                                 
|                                 
|                                 
|                                 
|                                  | Income taxes payable                                     |  |             | 16        |              |  |           |          |         |  |          |   |          |  |          |      |          |  |       |      |   |  |       |       |   |  |        |       |   |  |    |   | 
|                                 
|                                 
|                                 
|                                 
|                                  | Distributions payable                                    |  |             | 449       |              |  |           |          |         |  |          |   |          |  |          |      |          |  |       |      |   |  |       |       |   |  |        |       |   |  |    |   | 
|                                 
|                                 
|                                 
|                                 
|                                  | Deferred income taxes                                    |  |             | 7,135     |              |  |           |          |         |  |          |   |          |  |          |      |          |  |       |      |   |  |       |       |   |  |        |       |   |  |    |   | 
|                                 
|                                 
|                                 
|                                 
|                                  | Interest rate swaps                                      |  |             | 8,684     |              |  |           |          |         |  |          |   |          |  |          |      |          |  |       |      |   |  |       |       |   |  |        |       |   |  |    |   | 
|                                 
|                                 
|                                 
|                                 
|                                  | Notes payable to MeriStar                                |  |             | 357,311   |              |  |           |          |         |  |          |   |          |  |          |      |          |  |       |      |   |  |       |       |   |  |        |       |   |  |    |   | 
|                                 
|                                 
|                                 
|                                 
|                                  | Long-term debt                                           |  |             | 943,897   |              |  |           | 367,679   |         |  |          |   |          |  |          |      |          |  |       |      |   |  |       |       |   |  |        |       |   |  |    |   | 
|                                  |                                                          | 
|Total liabilities                 |                                                          |  | 1,380,681   |           |              |  | 382,823   |           |         |  |         |    |          |  |         |       |          |  | 67    |       |   |  | (43   | )      |   |  | 179    |        |   |  |   |   
|                                  |                                                          | 
|                                  |                                                          |  |             |           |              |  |           |           |         |  |          |    |          |  |          |       |          |  |       |       |   |  |       |        |   |  |        |        |   |  |    |   
|                                 
|                                 
|                                 
|                                 
|                                  | Minority interests                                       |  |             | 2,646     |              |  |           |          |         |  |          |   |          |  |          |      |          |  |       |      |   |  |       |       |   |  |        |       |   |  |    |   | 
|                                 
|                                 
|                                 
|                                 
|                                  | Redeemable OP units at redemption value                  |  |             | 67,722    |              |  |           |          |         |  |          |   |          |  |          |      |          |  |       |      |   |  |       |       |   |  |        |       |   |  |    |   | 
|                                 
|                                 
|                                 
|                                 
|                                  | Partners capital                                        |  |             | 942,373   |              |  |           | 1,116,813 |         |  |          | 32 |          |  |          | 3,063 |          |  |       | 6,892 |   |  |       | 9,607  |   |  |        | 14,242 |   |  |    | 82 | 
|                                  |                                                          | 
|                                  |                                                          |  | 2,393,422   |           |              |  | 1,499,637 |           |         |  | 32       |    |          |  | 3,063    |       |          |  | 6,959 |       |   |  | 9,565 |        |   |  | 14,420 |        |   |  | 82 |   
|                                  |                                                          | 





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Balance Sheet
June 30, 2002
(in thousands)

|                                  |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |   |     |  
|--------------------------------- | -------------------------------------------------------- |  | -------- | ------ | -------- |  | -------- | ------ | -------- |  | -------- | ------ | -------- |  | -------- | ------ | -------- |  | ------ | ------ | - |  | ------ | ------ | - |  | ------ | ------ | - |  | - | --- | -
|                                  |                                                          |  | MeriStar |        | MeriStar |  | MeriStar |        | MeriStar |  | MeriStar |        | MeriStar |  | MeriStar |        | MeriStar
|                                  |                                                          |  | Sub 6H,  |        | Sub 8B,  |  | Sub 1C,  |        | Sub 8E,  |  | Sub 7F,  |        | Sub 5L,  |  | Sub 3C,  |        | Sub 5R, 
|                                  |                                                          |  | L.P.     |        | LLC      |  | L.P.     |        | LLC      |  | LLC      |        | LLC      |  | LLC      |        | LLC     
|                                  |                                                          | 
|Assets                            |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |   |    
|                                 
|                                 
|                                 
|                                 
|                                  | Investment in hotel properties                           |  |          | 13,580 |          |  |          | 81,723 |          |  |          | 25,141 |          |  |          | 15,217 |          |  |        | 12,013 |   |  |        | 11,364 |   |  |        | 17,303 |   |  |   |    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accumulated depreciation                                 |  |          | (1,660 | )        |  |          | (8,689 | )        |  |          | (4,377 | )        |  |          | (2,142 | )        |  |        | (2,223 | ) |  |        | (435   | ) |  |        | (2,649 | ) |  |   |    |  
|                                  |                                                          | 
|                                  |                                                          |  | 11,920   |        |          |  | 73,034   |        |          |  | 20,764   |        |          |  | 13,075   |        |          |  | 9,790  |        |   |  | 10,929 |        |   |  | 14,654 |        |   |  |  |    
|                                 
|                                 
|                                 
|                                 
|                                  |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |   |    
|                                 
|                                 
|                                 
|                                 
|                                  | Cash and cash equivalents                                |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |   |    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accounts receivable, net                                 |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |   |    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Prepaid expenses and other                               |  |          |       |          |  |          |       |          |  |          | 17     |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |   |    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Note receivable                                          |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |   |    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Due from subsidiaries                                    |  |          | 5,232  |          |  |          | 24,182 |          |  |          | (3,001 | )        |  |          | 4,998  |          |  |        | 3,994  |   |  |        | 3,654  |   |  |        | 3,519  |   |  |   | (43 | )
|                                 
|                                 
|                                 
|                                 
|                                  | Investments in affiliates                                |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |   | 43  |  
|                                 
|                                 
|                                 
|                                 
|                                  | Restricted cash                                          |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |   |    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Intangible assets, net                                   |  |          |       |          |  |          | 42     |          |  |          |       |          |  |          | 5      |          |  |        |       |   |  |        |       |   |  |        | 54     |   |  |   |    |  
|                                  |                                                          | 
|                                  |                                                          |  | 17,152   |        |          |  | 97,257   |        |          |  | 17,780   |        |          |  | 18,078   |        |          |  | 13,784 |        |   |  | 14,583 |        |   |  | 18,227 |        |   |  |  |    
|                                  |                                                          | 
|Liabilities and Partners capital |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |   |    
|                                 
|                                 
|                                 
|                                 
|                                  | Accounts payable, accrued expenses and other liabilities |  |          | 217    |          |  |          | 2,705  |          |  |          | 147    |          |  |          | 5      |          |  |        | 163    |   |  |        | 84     |   |  |        | 224    |   |  |   |    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accrued interest                                         |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |   |    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Due to MeriStar Hotels & Resorts                         |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |   |    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Income taxes payable                                     |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |   |    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Distributions payable                                    |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |   |    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Deferred income taxes                                    |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |   |    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Interest rate swaps                                      |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |   |    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Notes payable to MeriStar                                |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |   |    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Long-term debt                                           |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |   |    |  
|                                  |                                                          | 
|Total liabilities                 |                                                          |  | 217      |        |          |  | 2,705    |        |          |  | 147      |        |          |  | 5        |        |          |  | 163    |        |   |  | 84     |        |   |  | 224    |        |   |  |  |    
|                                  |                                                          | 
|                                  | Minority interests                                       |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |   |    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Redeemable OP units at redemption value                  |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |   |    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Partners capital                                        |  |          | 16,935 |          |  |          | 94,553 |          |  |          | 17,633 |          |  |          | 18,073 |          |  |        | 13,620 |   |  |        | 14,499 |   |  |        | 18,003 |   |  |   |    |  
|                                  |                                                          | 
|                                  |                                                          |  | 17,152   |        |          |  | 97,257   |        |          |  | 17,780   |        |          |  | 18,078   |        |          |  | 13,784 |        |   |  | 14,583 |        |   |  | 18,227 |        |   |  |  |    
|                                  |                                                          | 



---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Balance Sheet
June 30, 2002
(in thousands)

|                                  |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |        |        |  
|--------------------------------- | -------------------------------------------------------- |  | -------- | ------ | -------- |  | -------- | ------ | -------- |  | -------- | ------ | -------- |  | -------- | ------ | -------- |  | ------ | ------ | - |  | ------ | ------ | - |  | ------ | ------ | - |  | ------ | ------ | -
|                                  |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |       
|                                  |                                                          |  | MeriStar |        | MeriStar |  | MeriStar |        | MeriStar |  | Meristar |        | MeriStar |  | MeriStar |        | MeriStar
|                                  |                                                          |  | Sub 6D,  |        | Sub 6E,  |  | Sub 4E,  |        | Sub 1B,  |  | Sub 5F,  |        | Sub 6G,  |  | Sub 8C,  |        | Sub 4C, 
|                                  |                                                          |  | LLC      |        | LLC      |  | L.P.     |        | LLC      |  | L.P.     |        | LLC      |  | LLC      |        | L.P.    
|                                  |                                                          | 
|Assets                            |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |        |       
|                                 
|                                 
|                                 
|                                 
|                                  | Investment in hotel properties                           |  |          | 17,407 |          |  |          | 44,246 |          |  |          | 24,660 |          |  |          | 18,284 |          |  |        | 31,215 |   |  |        | 22,319 |   |  |        | 36,769 |   |  |        | 16,376 |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accumulated depreciation                                 |  |          | (2,086 | )        |  |          | (7,491 | )        |  |          | (3,529 | )        |  |          | (3,243 | )        |  |        | (3,891 | ) |  |        | (3,747 | ) |  |        | (4,608 | ) |  |        | (3,639 | )
|                                  |                                                          | 
|                                  |                                                          |  | 15,321   |        |          |  | 36,755   |        |          |  | 21,131   |        |          |  | 15,041   |        |          |  | 27,324 |        |   |  | 18,572 |        |   |  | 32,161 |        |   |  | 12,737 |       
|                                 
|                                 
|                                 
|                                 
|                                  |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |        |       
|                                 
|                                 
|                                 
|                                 
|                                  | Cash and cash equivalents                                |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accounts receivable, net                                 |  |          | 152    |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Prepaid expenses and other                               |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Note receivable                                          |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Due from subsidiaries                                    |  |          | 6,117  |          |  |          | 16,156 |          |  |          | 2,158  |          |  |          | 12,027 |          |  |        | 10,035 |   |  |        | 4,544  |   |  |        | 3,981  |   |  |        | 476    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Investments in affiliates                                |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Restricted cash                                          |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Intangible assets, net                                   |  |          |       |          |  |          |       |          |  |          | 5      |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        | 2      |   |  |        |       |  
|                                  |                                                          | 
|                                  |                                                          |  | 21,591   |        |          |  | 52,910   |        |          |  | 23,293   |        |          |  | 27,068   |        |          |  | 37,359 |        |   |  | 23,116 |        |   |  | 36,144 |        |   |  | 13,213 |       
|                                  |                                                          | 
|Liabilities and Partners capital |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |        |       
|                                 
|                                 
|                                 
|                                 
|                                  | Accounts payable, accrued expenses and other liabilities |  |          | 166    |          |  |          | (24    | )        |  |          | 215    |          |  |          | 29     |          |  |        | 321    |   |  |        | 312    |   |  |        | (45    | ) |  |        | 308    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accrued interest                                         |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Due to MeriStar Hotels & Resorts                         |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Income taxes payable                                     |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Distributions payable                                    |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Deferred income taxes                                    |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Interest rate swaps                                      |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Notes payable to MeriStar                                |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Long-term debt                                           |  |          |       |          |  |          |       |          |  |          |       |          |  |          | 48     |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                  |                                                          | 
|Total liabilities                 |                                                          |  | 166      |        |          |  | (24      | )      |          |  | 215      |        |          |  | 77       |        |          |  | 321    |        |   |  | 312    |        |   |  | (45    | )      |   |  | 308    |       
|                                  |                                                          | 
|                                  |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |        |       
|                                 
|                                 
|                                 
|                                 
|                                  | Minority interests                                       |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Redeemable OP units at redemption value                  |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Partners capital                                        |  |          | 21,425 |          |  |          | 52,935 |          |  |          | 23,078 |          |  |          | 26,992 |          |  |        | 37,038 |   |  |        | 22,804 |   |  |        | 36,189 |   |  |        | 12,905 |  
|                                  |                                                          | 
|                                  |                                                          |  | 21,591   |        |          |  | 52,910   |        |          |  | 23,293   |        |          |  | 27,068   |        |          |  | 37,359 |        |   |  | 23,116 |        |   |  | 36,144 |        |   |  | 13,213 |       
|                                  |                                                          | 





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Balance Sheet
June 30, 2002
(in thousands)

|                                  |                                                          |  |          |        |          |  |          |        |          |  |          |        |         |  |          |        |          |  |        |        |   |  |          |        |   |  |        |        |   |  |       |        |  
|--------------------------------- | -------------------------------------------------------- |  | -------- | ------ | -------- |  | -------- | ------ | -------- |  | -------- | ------ | ------- |  | -------- | ------ | -------- |  | ------ | ------ | - |  | -------- | ------ | - |  | ------ | ------ | - |  | ----- | ------ | -
|                                  |                                                          |  |          |        |          |  |          |        |          |  |          |        |         |  |          |        |          |  |        |        |   |  | Meristar |        |   |  |        |        |   |  |      
|                                  |                                                          |  | MeriStar |        | MeriStar |  | MeriStar |        | MeriStar |  | MeriStar |        | Sub 7A  |  | MeriStar |        | MeriStar
|                                  |                                                          |  | Sub 4H,  |        | Sub 7E,  |  | Sub 3D,  |        | Sub 1A,  |  | Sub 5E,  |        | Joint   |  | Sub 6K,  |        | Sub 2B, 
|                                  |                                                          |  | L.P.     |        | LLC      |  | LLC      |        | LLC      |  | LLC      |        | Venture |  | LLC      |        | LLC     
|                                  |                                                          | 
|Assets                            |                                                          |  |          |        |          |  |          |        |          |  |          |        |         |  |          |        |          |  |        |        |   |  |          |        |   |  |        |        |   |  |       |       
|                                 
|                                 
|                                 
|                                 
|                                  | Investment in hotel properties                           |  |          | 12,399 |          |  |          | 17,856 |          |  |          | 22,413 |         |  |          | 11,245 |          |  |        | 52,832 |   |  |          | 13,043 |   |  |        | 22,777 |   |  |       | 9,935  |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accumulated depreciation                                 |  |          | (1,982 | )        |  |          | (2,394 | )        |  |          | (5,862 | )       |  |          | (2,257 | )        |  |        | (7,186 | ) |  |          | (1,553 | ) |  |        | (3,932 | ) |  |       | (1,852 | )
|                                  |                                                          | 
|                                  |                                                          |  | 10,417   |        |          |  | 15,461   |        |          |  | 16,550   |        |         |  | 8,988    |        |          |  | 45,646 |        |   |  | 11,490   |        |   |  | 18,845 |        |   |  | 8,083 |       
|                                 
|                                 
|                                 
|                                 
|                                  | Cash and cash equivalents                                |  |          |       |          |  |          |       |          |  |          |       |         |  |          |       |          |  |        |       |   |  |          |       |   |  |        |       |   |  |       |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accounts receivable, net                                 |  |          |       |          |  |          |       |          |  |          |       |         |  |          |       |          |  |        |       |   |  |          |       |   |  |        |       |   |  |       | (13    | )
|                                 
|                                 
|                                 
|                                 
|                                  | Prepaid expenses and other                               |  |          | 7      |          |  |          |       |          |  |          |       |         |  |          |       |          |  |        |       |   |  |          |       |   |  |        |       |   |  |       |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Note receivable                                          |  |          |       |          |  |          |       |          |  |          |       |         |  |          |       |          |  |        |       |   |  |          |       |   |  |        |       |   |  |       |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Due from subsidiaries                                    |  |          | (893   | )        |  |          | 5,421  |          |  |          | 6,783  |         |  |          | 5,636  |          |  |        | 12,013 |   |  |          | 3,935  |   |  |        | 15,281 |   |  |       | (625   | )
|                                 
|                                 
|                                 
|                                 
|                                  | Investments in affiliates                                |  |          |       |          |  |          |       |          |  |          |       |         |  |          |       |          |  |        |       |   |  |          |       |   |  |        |       |   |  |       |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Restricted cash                                          |  |          |       |          |  |          |       |          |  |          |       |         |  |          |       |          |  |        |       |   |  |          |       |   |  |        |       |   |  |       |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Intangible assets, net                                   |  |          |       |          |  |          | 5      |          |  |          |       |         |  |          |       |          |  |        | 6      |   |  |          |       |   |  |        |       |   |  |       | 1      |  
|                                  |                                                          | 
|                                  |                                                          |  | 9,531    |        |          |  | 20,888   |        |          |  | 23,333   |        |         |  | 14,624   |        |          |  | 57,665 |        |   |  | 15,425   |        |   |  | 34,126 |        |   |  | 7,446 |       
|                                  |                                                          | 
|Liabilities and Partners capital |                                                          |  |          |        |          |  |          |        |          |  |          |        |         |  |          |        |          |  |        |        |   |  |          |        |   |  |        |        |   |  |       |       
|                                 
|                                 
|                                 
|                                 
|                                  | Accounts payable, accrued expenses and other liabilities |  |          | 89     |          |  |          | 127    |          |  |          | 116    |         |  |          | 128    |          |  |        | 395    |   |  |          | 204    |   |  |        | 173    |   |  |       | 87     |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accrued interest                                         |  |          |       |          |  |          |       |          |  |          |       |         |  |          |       |          |  |        |       |   |  |          |       |   |  |        |       |   |  |       |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Due to MeriStar Hotels & Resorts                         |  |          |       |          |  |          |       |          |  |          |       |         |  |          |       |          |  |        |       |   |  |          |       |   |  |        |       |   |  |       |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Income taxes payable                                     |  |          |       |          |  |          |       |          |  |          |       |         |  |          |       |          |  |        |       |   |  |          |       |   |  |        |       |   |  |       |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Distributions payable                                    |  |          |       |          |  |          |       |          |  |          |       |         |  |          |       |          |  |        |       |   |  |          |       |   |  |        |       |   |  |       |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Deferred income taxes                                    |  |          |       |          |  |          |       |          |  |          |       |         |  |          |       |          |  |        |       |   |  |          |       |   |  |        |       |   |  |       |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Interest rate swaps                                      |  |          |       |          |  |          |       |          |  |          |       |         |  |          |       |          |  |        |       |   |  |          |       |   |  |        |       |   |  |       |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Notes payable to MeriStar                                |  |          |       |          |  |          |       |          |  |          |       |         |  |          |       |          |  |        |       |   |  |          |       |   |  |        |       |   |  |       |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Long-term debt                                           |  |          |       |          |  |          |       |          |  |          |       |         |  |          |       |          |  |        |       |   |  |          |       |   |  |        |       |   |  |       | 5,087  |  
|                                  |                                                          | 
|Total liabilities                 |                                                          |  | 89       |        |          |  | 127      |        |          |  | 116      |        |         |  | 128      |        |          |  | 395    |        |   |  | 204      |        |   |  | 173    |        |   |  | 5,173 |       
|                                  |                                                          | 
|                                  | Minority interests                                       |  |          |       |          |  |          |       |          |  |          |       |         |  |          |       |          |  |        |       |   |  |          |       |   |  |        |       |   |  |       |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Redeemable OP units at redemption value                  |  |          |       |          |  |          |       |          |  |          |       |         |  |          |       |          |  |        |       |   |  |          |       |   |  |        |       |   |  |       |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Partners capital                                        |  |          | 9,442  |          |  |          | 20,761 |          |  |          | 23,217 |         |  |          | 14,496 |          |  |        | 57,270 |   |  |          | 15,221 |   |  |        | 33,953 |   |  |       | 2,273  |  
|                                  |                                                          | 
|                                  |                                                          |  | 9,531    |        |          |  | 20,888   |        |          |  | 23,333   |        |         |  | 14,624   |        |          |  | 57,665 |        |   |  | 15,425   |        |   |  | 34,126 |        |   |  | 7,446 |       
|                                  |                                                          | 





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Balance Sheet
June 30, 2002
(in thousands)

|                                  |                                                          |  |          |        |          |  |          |        |          |  |          |        |             |  |          |        |          |  |        |        |   |  |       |       |   |  |        |        |   |  |        |        |  
|--------------------------------- | -------------------------------------------------------- |  | -------- | ------ | -------- |  | -------- | ------ | -------- |  | -------- | ------ | ----------- |  | -------- | ------ | -------- |  | ------ | ------ | - |  | ----- | ----- | - |  | ------ | ------ | - |  | ------ | ------ | -
|                                  |                                                          |  | MeriStar |        | Meristar |  | MeriStar |        | MeriStar |  | MeriStar |        | MDV         |  | MeriStar |        | MeriStar
|                                  |                                                          |  | Sub 3A,  |        | Sub 4A,  |  | Sub 4D,  |        | Sub 2A,  |  | Sub 6L,  |        | Limited     |  | Sub 5C,  |        | Sub 6J, 
|                                  |                                                          |  | LLC      |        | LLC      |  | LLC      |        | LLC      |  | LLC      |        | Partnership |  | LLC      |        | LLC     
|                                  |                                                          | 
|Assets                            |                                                          |  |          |        |          |  |          |        |          |  |          |        |             |  |          |        |          |  |        |        |   |  |       |       |   |  |        |        |   |  |        |       
|                                 
|                                 
|                                 
|                                 
|                                  | Investment in hotel properties                           |  |          | 6,934  |          |  |          | 8,869  |          |  |          | 8,772  |             |  |          | 8,609  |          |  |        | 29,568 |   |  |       | 3,820 |   |  |        | 13,989 |   |  |        | 19,339 |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accumulated depreciation                                 |  |          | (1,423 | )        |  |          | (1,112 | )        |  |          | (1,334 | )           |  |          | (1,359 | )        |  |        | (2,909 | ) |  |       | (477  | ) |  |        | (2,513 | ) |  |        | (2,889 | )
|                                  |                                                          | 
|                                  |                                                          |  | 5,511    |        |          |  | 7,757    |        |          |  | 7,437    |        |             |  | 7,250    |        |          |  | 26,659 |        |   |  | 3,343 |       |   |  | 11,476 |        |   |  | 16,450 |       
|                                 
|                                 
|                                 
|                                 
|                                  | Cash and cash equivalents                                |  |          |       |          |  |          |       |          |  |          |       |             |  |          |       |          |  |        |       |   |  |       |      |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accounts receivable, net                                 |  |          |       |          |  |          |       |          |  |          |       |             |  |          |       |          |  |        |       |   |  |       |      |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Prepaid expenses and other                               |  |          |       |          |  |          |       |          |  |          |       |             |  |          |       |          |  |        |       |   |  |       |      |   |  |        | 44     |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Note receivable                                          |  |          |       |          |  |          |       |          |  |          |       |             |  |          |       |          |  |        |       |   |  |       |      |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Due from subsidiaries                                    |  |          | 1,314  |          |  |          | 3,614  |          |  |          | 147    |             |  |          | (703   | )        |  |        | 4,278  |   |  |       | 2,047 |   |  |        | 105    |   |  |        | 5,350  |  
|                                 
|                                 
|                                 
|                                 
|                                  | Investments in affiliates                                |  |          |       |          |  |          |       |          |  |          |       |             |  |          |       |          |  |        |       |   |  |       |      |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Restricted cash                                          |  |          |       |          |  |          |       |          |  |          |       |             |  |          |       |          |  |        |       |   |  |       |      |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Intangible assets, net                                   |  |          |       |          |  |          |       |          |  |          | 23     |             |  |          | 24     |          |  |        |       |   |  |       | 9     |   |  |        |       |   |  |        | 52     |  
|                                  |                                                          | 
|                                  |                                                          |  | 6,825    |        |          |  | 11,371   |        |          |  | 7,608    |        |             |  | 6,572    |        |          |  | 30,937 |        |   |  | 5,399 |       |   |  | 11,624 |        |   |  | 21,851 |       
|                                  |                                                          | 
|Liabilities and Partners capital |                                                          |  |          |        |          |  |          |        |          |  |          |        |             |  |          |        |          |  |        |        |   |  |       |       |   |  |        |        |   |  |        |       
|                                 
|                                 
|                                 
|                                 
|                                  | Accounts payable, accrued expenses and other liabilities |  |          | 105    |          |  |          | 221    |          |  |          | 142    |             |  |          | 110    |          |  |        | 118    |   |  |       | 72    |   |  |        | 920    |   |  |        | 50     |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accrued interest                                         |  |          |       |          |  |          |       |          |  |          |       |             |  |          |       |          |  |        |       |   |  |       |      |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Due to MeriStar Hotels & Resorts                         |  |          |       |          |  |          |       |          |  |          |       |             |  |          |       |          |  |        |       |   |  |       |      |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Income taxes payable                                     |  |          |       |          |  |          |       |          |  |          |       |             |  |          |       |          |  |        |       |   |  |       |      |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Distributions payable                                    |  |          |       |          |  |          |       |          |  |          |       |             |  |          |       |          |  |        |       |   |  |       |      |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Deferred income taxes                                    |  |          |       |          |  |          |       |          |  |          |       |             |  |          |       |          |  |        |       |   |  |       |      |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Interest rate swaps                                      |  |          |       |          |  |          |       |          |  |          |       |             |  |          |       |          |  |        |       |   |  |       |      |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Notes payable to MeriStar                                |  |          |       |          |  |          |       |          |  |          |       |             |  |          |       |          |  |        |       |   |  |       |      |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Long-term debt                                           |  |          |       |          |  |          |       |          |  |          |       |             |  |          | 8,297  |          |  |        |       |   |  |       |      |   |  |        |       |   |  |        |       |  
|                                  |                                                          | 
|Total liabilities                 |                                                          |  | 105      |        |          |  | 221      |        |          |  | 142      |        |             |  | 8,407    |        |          |  | 118    |        |   |  | 72    |       |   |  | 920    |        |   |  | 50     |       
|                                  |                                                          | 
|                                  | Minority interests                                       |  |          |       |          |  |          |       |          |  |          |       |             |  |          |       |          |  |        |       |   |  |       |      |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Redeemable OP units at redemption value                  |  |          |       |          |  |          |       |          |  |          |       |             |  |          |       |          |  |        |       |   |  |       |      |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Partners capital                                        |  |          | 6,720  |          |  |          | 11,150 |          |  |          | 7,466  |             |  |          | (1,835 | )        |  |        | 30,818 |   |  |       | 5,327 |   |  |        | 10,705 |   |  |        | 21,800 |  
|                                  |                                                          | 
|                                  |                                                          |  | 6,825    |        |          |  | 11,371   |        |          |  | 7,608    |        |             |  | 6,572    |        |          |  | 30,937 |        |   |  | 5,399 |       |   |  | 11,624 |        |   |  | 21,851 |       
|                                  |                                                          | 





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Balance Sheet
June 30, 2002
(in thousands)

|                                  |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |       |        |   |  |        |        |   |  |        |        |  
|--------------------------------- | -------------------------------------------------------- |  | -------- | ------ | -------- |  | -------- | ------ | -------- |  | -------- | ------ | -------- |  | -------- | ------ | -------- |  | ------ | ------ | - |  | ----- | ------ | - |  | ------ | ------ | - |  | ------ | ------ | -
|                                  |                                                          |  | MeriStar |        | MeriStar |  | MeriStar |        | MeriStar |  | MeriStar |        | MeriStar |  | MeriStar |        | MeriStar
|                                  |                                                          |  | Sub 1D,  |        | Sub 7B,  |  | Sub 7D,  |        | Sub 7G,  |  | Sub 6B,  |        | Sub 4I,  |  | Sub 5D,  |        | Sub 5H, 
|                                  |                                                          |  | L.P.     |        | L.P.     |  | LLC      |        | LLC      |  | LLC      |        | L.P.     |  | LLC      |        | LLC     
|                                  |                                                          | 
|Assets                            |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |       |        |   |  |        |        |   |  |        |       
|                                 
|                                 
|                                 
|                                 
|                                  | Investment in hotel properties                           |  |          | 68,347 |          |  |          | 25,422 |          |  |          | 52,139 |          |  |          | 16,517 |          |  |        | 10,590 |   |  |       | 12,590 |   |  |        | 41,799 |   |  |        | 53,093 |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accumulated depreciation                                 |  |          | (8,619 | )        |  |          | (2,739 | )        |  |          | (7,326 | )        |  |          | (3,747 | )        |  |        | (1,516 | ) |  |       | (3,921 | ) |  |        | (5,921 | ) |  |        | (6,999 | )
|                                  |                                                          | 
|                                  |                                                          |  | 59,728   |        |          |  | 22,683   |        |          |  | 44,813   |        |          |  | 12,770   |        |          |  | 9,074  |        |   |  | 8,670 |        |   |  | 35,877 |        |   |  | 46,094 |       
|                                 
|                                 
|                                 
|                                 
|                                  |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |       |        |   |  |        |        |   |  |        |       
|                                 
|                                 
|                                 
|                                 
|                                  | Cash and cash equivalents                                |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |       |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accounts receivable, net                                 |  |          |       |          |  |          |       |          |  |          | 792    |          |  |          |       |          |  |        |       |   |  |       |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Prepaid expenses and other                               |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |       |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Note receivable                                          |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |       |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Due from subsidiaries                                    |  |          | 14,895 |          |  |          | (4,473 | )        |  |          | 20,090 |          |  |          | (15    | )        |  |        | 2,132  |   |  |       | 981    |   |  |        | (6,874 | ) |  |        | 8,479  |  
|                                 
|                                 
|                                 
|                                 
|                                  | Investments in affiliates                                |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |       |       |   |  |        | 51,368 |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Restricted cash                                          |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |       |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Intangible assets, net                                   |  |          | 33     |          |  |          |       |          |  |          | 356    |          |  |          | 16     |          |  |        | 6      |   |  |       |       |   |  |        | 20     |   |  |        |       |  
|                                  |                                                          | 
|                                  |                                                          |  | 74,657   |        |          |  | 18,210   |        |          |  | 66,051   |        |          |  | 12,771   |        |          |  | 11,212 |        |   |  | 9,650 |        |   |  | 80,391 |        |   |  | 54,573 |       
|                                  |                                                          | 
|Liabilities and Partners capital |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |       |        |   |  |        |        |   |  |        |       
|                                 
|                                 
|                                 
|                                 
|                                  | Accounts payable, accrued expenses and other liabilities |  |          | 100    |          |  |          | 1,001  |          |  |          | 4,650  |          |  |          | (22    | )        |  |        | 9      |   |  |       | 267    |   |  |        | 316    |   |  |        | 441    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accrued interest                                         |  |          | 88     |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |       |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Due to MeriStar Hotels & Resorts                         |  |          |       |          |  |          |       |          |  |          | (200   | )        |  |          |       |          |  |        |       |   |  |       |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Income taxes payable                                     |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |       |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Distributions payable                                    |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |       |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Deferred income taxes                                    |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |       |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Interest rate swaps                                      |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |       |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Notes payable to MeriStar                                |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |       |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Long-term debt                                           |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |       |       |   |  |        | 24,000 |   |  |        |       |  
|                                  |                                                          | 
|Total liabilities                 |                                                          |  | 188      |        |          |  | 1,001    |        |          |  | 4,450    |        |          |  | (22      | )      |          |  | 9      |        |   |  | 267   |        |   |  | 24,316 |        |   |  | 441    |       
|                                  |                                                          | 
|                                  |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |       |        |   |  |        |        |   |  |        |       
|                                 
|                                 
|                                 
|                                 
|                                  | Minority interests                                       |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |       |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Redeemable OP units at redemption value                  |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |       |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Partners capital                                        |  |          | 74,469 |          |  |          | 17,209 |          |  |          | 61,602 |          |  |          | 12,793 |          |  |        | 11,202 |   |  |       | 9,384  |   |  |        | 56,075 |   |  |        | 54,132 |  
|                                  |                                                          | 
|                                  |                                                          |  | 74,657   |        |          |  | 18,210   |        |          |  | 66,051   |        |          |  | 12,771   |        |          |  | 11,212 |        |   |  | 9,650 |        |   |  | 80,391 |        |   |  | 54,573 |       
|                                  |                                                          | 





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Balance Sheet
June 30, 2002
(in thousands)

|                                  |                                                          |  |          |        |        |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |        |        |  
|--------------------------------- | -------------------------------------------------------- |  | -------- | ------ | ------ |  | -------- | ------ | -------- |  | -------- | ------ | -------- |  | -------- | ------ | -------- |  | ------ | ------ | - |  | ------ | ------ | - |  | ------ | ------ | - |  | ------ | ------ | -
|                                  |                                                          |  | MeriStar |        | AGH    |  | MeriStar |        | MeriStar |  | MeriStar |        | MeriStar |  | MeriStar |        | MeriStar
|                                  |                                                          |  | Sub 7H,  |        | PSS I, |  | Sub 2D,  |        | Sub 4F,  |  | Sub 5K,  |        | Sub 5M,  |  | Sub 1E,  |        | Sub 5O, 
|                                  |                                                          |  | LLC      |        | Inc.   |  | LLC      |        | L.P.     |  | LLC      |        | LLC      |  | L.P.     |        | LLC     
|                                  |                                                          | 
|Assets                            |                                                          |  |          |        |        |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |        |       
|                                 
|                                 
|                                 
|                                 
|                                  | Investment in hotel properties                           |  |          | 10,036 |        |  |          | 17,757 |          |  |          | 16,062 |          |  |          | 31,828 |          |  |        | 27,875 |   |  |        | 21,999 |   |  |        | 10,441 |   |  |        | 8,704  |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accumulated depreciation                                 |  |          | (4,353 | )      |  |          | (2,049 | )        |  |          | (2,289 | )        |  |          | (4,165 | )        |  |        | (3,323 | ) |  |        | (1,655 | ) |  |        | (1,500 | ) |  |        | (806   | )
|                                  |                                                          |  | 5,682    |        |        |  | 15,708   |        |          |  | 13,773   |        |          |  | 27,663   |        |          |  | 24,552 |        |   |  | 20,344 |        |   |  | 8,942  |        |   |  | 7,898  |       
|                                 
|                                 
|                                 
|                                 
|                                  |                                                          |  |          |        |        |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |        |       
|                                 
|                                 
|                                 
|                                 
|                                  | Cash and cash equivalents                                |  |          |       |        |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accounts receivable, net                                 |  |          |       |        |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Prepaid expenses and other                               |  |          |       |        |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Note receivable                                          |  |          |       |        |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Due from subsidiaries                                    |  |          | 5,577  |        |  |          | 10,672 |          |  |          | 293    |          |  |          | 3,532  |          |  |        | (1,303 | ) |  |        | 6,415  |   |  |        | 6,571  |   |  |        | 2,406  |  
|                                 
|                                 
|                                 
|                                 
|                                  | Investments in affiliates                                |  |          |       |        |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Restricted cash                                          |  |          |       |        |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Intangible assets, net                                   |  |          |       |        |  |          |       |          |  |          | 1      |          |  |          | 25     |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                  |                                                          | 
|                                  |                                                          |  | 11,259   |        |        |  | 26,380   |        |          |  | 14,067   |        |          |  | 31,220   |        |          |  | 23,249 |        |   |  | 26,759 |        |   |  | 15,512 |        |   |  | 10,305 |       
|                                  |                                                          | 
|Liabilities and Partners capital |                                                          |  |          |        |        |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |        |       
|                                 
|                                 
|                                 
|                                 
|                                  | Accounts payable, accrued expenses and other liabilities |  |          | 411    |        |  |          | 305    |          |  |          | 31     |          |  |          | 227    |          |  |        | 4,432  |   |  |        | 228    |   |  |        | 19     |   |  |        | 100    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accrued interest                                         |  |          |       |        |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Due to MeriStar Hotels & Resorts                         |  |          |       |        |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Income taxes payable                                     |  |          |       |        |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Distributions payable                                    |  |          |       |        |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Deferred income taxes                                    |  |          |       |        |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Interest rate swaps                                      |  |          |       |        |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Notes payable to MeriStar                                |  |          |       |        |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Long-term debt                                           |  |          | 13     |        |  |          |       |          |  |          | 9,614  |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                  |                                                          | 
|Total liabilities                 |                                                          |  | 424      |        |        |  | 305      |        |          |  | 9,645    |        |          |  | 227      |        |          |  | 4,432  |        |   |  | 228    |        |   |  | 19     |        |   |  | 100    |       
|                                  |                                                          | 
|                                  |                                                          |  |          |        |        |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |        |       
|                                 
|                                 
|                                 
|                                 
|                                  | Minority interests                                       |  |          |       |        |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Redeemable OP units at redemption value                  |  |          |       |        |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Partners capital                                        |  |          | 10,834 |        |  |          | 26,075 |          |  |          | 4,423  |          |  |          | 30,992 |          |  |        | 18,817 |   |  |        | 26,531 |   |  |        | 15,493 |   |  |        | 10,205 |  
|                                  |                                                          | 
|                                  |                                                          |  | 11,259   |        |        |  | 26,380   |        |          |  | 14,067   |        |          |  | 31,220   |        |          |  | 23,249 |        |   |  | 26,759 |        |   |  | 15,512 |        |   |  | 10,305 |       
|                                  |                                                          | 





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Balance Sheet
June 30, 2002
(in thousands)

|                                  |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |         |         |   |  |       |       |  
|--------------------------------- | -------------------------------------------------------- |  | -------- | ------ | -------- |  | -------- | ------ | -------- |  | -------- | ------ | -------- |  | -------- | ------ | -------- |  | ------ | ------ | - |  | ------ | ------ | - |  | ------- | ------- | - |  | ----- | ----- | -
|                                  |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |         |         |   |  |      
|                                  |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |         |         |   |  |      
|                                  |                                                          |  | MeriStar |        | MeriStar |  | MeriStar |        | MeriStar |  | MeriStar |        | MeriStar |  | Meristar |        | MeriStar
|                                  |                                                          |  | Sub 6M,  |        | Sub 4B,  |  | Sub 6C,  |        | Sub 2C,  |  | Sub 4G,  |        | Sub 3B,  |  | Sub 5G,  |        | Sub 5P, 
|                                  |                                                          |  | Company  |        | L.P.     |  | LLC      |        | LLC      |  | L.P.     |        | LLC      |  | L.P.     |        | LLC     
|                                  |                                                          | 
|Assets                            |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |         |         |   |  |       |      
|                                 
|                                 
|                                 
|                                 
|                                  | Investment in hotel properties                           |  |          | 32,871 |          |  |          | 16,810 |          |  |          | 20,772 |          |  |          | 29,697 |          |  |        | 25,522 |   |  |        | 24,897 |   |  |         | 162,642 |   |  |       | 39    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accumulated depreciation                                 |  |          | (4,185 | )        |  |          | (4,907 | )        |  |          | (3,209 | )        |  |          | (5,068 | )        |  |        | (3,561 | ) |  |        | (3,432 | ) |  |         | (21,107 | ) |  |       | (16   | )
|                                  |                                                          | 
|                                  |                                                          |  | 28,686   |        |          |  | 11,903   |        |          |  | 17,563   |        |          |  | 24,629   |        |          |  | 21,961 |        |   |  | 21,465 |        |   |  | 141,535 |         |   |  | 23    |      
|                                 
|                                 
|                                 
|                                 
|                                  |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |         |         |   |  |       |      
|                                 
|                                 
|                                 
|                                 
|                                  | Cash and cash equivalents                                |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |         |        |   |  |       |      |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accounts receivable, net                                 |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |         |        |   |  |       |      |  
|                                 
|                                 
|                                 
|                                 
|                                  | Prepaid expenses and other                               |  |          | 13     |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |         |        |   |  |       |      |  
|                                 
|                                 
|                                 
|                                 
|                                  | Note receivable                                          |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |         |        |   |  |       |      |  
|                                 
|                                 
|                                 
|                                 
|                                  | Due from subsidiaries                                    |  |          | 14,202 |          |  |          | (4,410 | )        |  |          | 9,015  |          |  |          | 5,473  |          |  |        | 6,673  |   |  |        | 2,045  |   |  |         | 33,665  |   |  |       | 1,713 |  
|                                 
|                                 
|                                 
|                                 
|                                  | Investments in affiliates                                |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |         |        |   |  |       |      |  
|                                 
|                                 
|                                 
|                                 
|                                  | Restricted cash                                          |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |         |        |   |  |       |      |  
|                                 
|                                 
|                                 
|                                 
|                                  | Intangible assets, net                                   |  |          | 34     |          |  |          | 10     |          |  |          |       |          |  |          | 1      |          |  |        | 18     |   |  |        |       |   |  |         | 5       |   |  |       |      |  
|                                  |                                                          | 
|                                  |                                                          |  | 42,935   |        |          |  | 7,503    |        |          |  | 26,578   |        |          |  | 30,103   |        |          |  | 28,653 |        |   |  | 23,511 |        |   |  | 175,206 |         |   |  | 1,736 |      
|                                  |                                                          | 
|Liabilities and Partners capital |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |         |         |   |  |       |      
|                                 
|                                 
|                                 
|                                 
|                                  | Accounts payable, accrued expenses and other liabilities |  |          | 42     |          |  |          | 277    |          |  |          | (69    | )        |  |          | 386    |          |  |        | 318    |   |  |        | 182    |   |  |         | 1,588   |   |  |       | 37    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accrued interest                                         |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |         |        |   |  |       |      |  
|                                 
|                                 
|                                 
|                                 
|                                  | Due to MeriStar Hotels & Resorts                         |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |         |        |   |  |       |      |  
|                                 
|                                 
|                                 
|                                 
|                                  | Income taxes payable                                     |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |         |        |   |  |       |      |  
|                                 
|                                 
|                                 
|                                 
|                                  | Distributions payable                                    |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |         |        |   |  |       |      |  
|                                 
|                                 
|                                 
|                                 
|                                  | Deferred income taxes                                    |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |         |        |   |  |       |      |  
|                                 
|                                 
|                                 
|                                 
|                                  | Interest rate swaps                                      |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |         |        |   |  |       |      |  
|                                 
|                                 
|                                 
|                                 
|                                  | Notes payable to MeriStar                                |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |         |        |   |  |       |      |  
|                                 
|                                 
|                                 
|                                 
|                                  | Long-term debt                                           |  |          |       |          |  |          |       |          |  |          |       |          |  |          | 16,791 |          |  |        |       |   |  |        |       |   |  |         |        |   |  |       |      |  
|                                  |                                                          | 
|Total liabilities                 |                                                          |  | 42       |        |          |  | 277      |        |          |  | (69      | )      |          |  | 17,177   |        |          |  | 318    |        |   |  | 182    |        |   |  | 1,588   |         |   |  | 37    |      
|                                  |                                                          | 
|                                  |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |         |         |   |  |       |      
|                                 
|                                 
|                                 
|                                 
|                                  | Minority interests                                       |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |         |        |   |  |       |      |  
|                                 
|                                 
|                                 
|                                 
|                                  | Redeemable OP units at redemption value                  |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |         |        |   |  |       |      |  
|                                 
|                                 
|                                 
|                                 
|                                  | Partners capital                                        |  |          | 42,893 |          |  |          | 7,226  |          |  |          | 26,647 |          |  |          | 12,926 |          |  |        | 28,335 |   |  |        | 23,328 |   |  |         | 173,617 |   |  |       | 1,699 |  
|                                  |                                                          | 
|                                  |                                                          |  | 42,935   |        |          |  | 7,503    |        |          |  | 26,578   |        |          |  | 30,103   |        |          |  | 28,653 |        |   |  | 23,511 |        |   |  | 175,206 |         |   |  | 1,736 |      
|                                  |                                                          | 





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Balance Sheet
June 30, 2002
(in thousands)

|                                  |                                                          |  |          |         |          |  |          |        |          |  |          |        |              |  |              |        |              |  |        |        |   |  |        |        |   |  |            |            |   |  |           |           |  
|--------------------------------- | -------------------------------------------------------- |  | -------- | ------- | -------- |  | -------- | ------ | -------- |  | -------- | ------ | ------------ |  | ------------ | ------ | ------------ |  | ------ | ------ | - |  | ------ | ------ | - |  | ---------- | ---------- | - |  | --------- | --------- | -
|                                  |                                                          |  | MeriStar |         | MeriStar |  | MeriStar |        | MeriStar |  | MeriStar |        | MeriStar     |  |              |        |              |  |        |        |  
|                                  |                                                          |  | Sub 5J,  |         | Sub 5Q,  |  | Sub 5A,  |        | Sub 8D,  |  | Sub 4J,  |        | Hotel        |  |              |        |              |  | Total 
|                                  |                                                          |  | LLC      |         | LLC      |  | LLC      |        | LLC      |  | LLC      |        | Lessee, Inc. |  | Eliminations |        | Consolidated
|                                  |                                                          | 
|Assets                            |                                                          |  |          |         |          |  |          |        |          |  |          |        |              |  |              |        |              |  |        |        |   |  |        |        |   |  |            |            |   |  |           |          
|                                 
|                                 
|                                 
|                                 
|                                  | Investment in hotel properties                           |  |          | 105,930 |          |  |          | 16,385 |          |  |          | 34,837 |              |  |              | 30,499 |              |  |        | 37,983 |   |  |        | 1,614  |   |  |            |           |   |  |           | 3,208,468 |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accumulated depreciation                                 |  |          | (11,592 | )        |  |          | (1,456 | )        |  |          | (8,651 | )            |  |              | (4,447 | )            |  |        | (5,212 | ) |  |        | (1,500 | ) |  |            |           |   |  |           | (455,714  | )
|                                  |                                                          | 
|                                  |                                                          |  | 94,338   |         |          |  | 14,930   |        |          |  | 26,186   |        |              |  | 26,052       |        |              |  | 32,772 |        |   |  | 114    |        |   |  |           |            |   |  | 2,752,754 |          
|                                 
|                                 
|                                 
|                                 
|                                  |                                                          |  |          |         |          |  |          |        |          |  |          |        |              |  |              |        |              |  |        |        |   |  |        |        |   |  |            |            |   |  |           |          
|                                 
|                                 
|                                 
|                                 
|                                  | Cash and cash equivalents                                |  |          |        |          |  |          |       |          |  |          |       |              |  |              |       |              |  |        |       |   |  |        | 27,324 |   |  |            |           |   |  |           | 27,405    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accounts receivable, net                                 |  |          |        |          |  |          |       |          |  |          |       |              |  |              |       |              |  |        | (10    | ) |  |        | 41,776 |   |  |            |           |   |  |           | 51,995    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Prepaid expenses and other                               |  |          |        |          |  |          |       |          |  |          |       |              |  |              | 1      |              |  |        |       |   |  |        | 15,097 |   |  |            |           |   |  |           | 15,208    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Note receivable                                          |  |          |        |          |  |          |       |          |  |          |       |              |  |              |       |              |  |        |       |   |  |        |       |   |  |            | (84,095    | ) |  |           | 59,069    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Due from subsidiaries                                    |  |          | 17,569  |          |  |          | 2,990  |          |  |          | 9,152  |              |  |              | 6,199  |              |  |        | 4,517  |   |  |        | (7,393 | ) |  |            |           |   |  |           |          |  
|                                 
|                                 
|                                 
|                                 
|                                  | Investments in affiliates                                |  |          |        |          |  |          |       |          |  |          |       |              |  |              |       |              |  |        |       |   |  |        | 1,629  |   |  |            | (2,710,327 | ) |  |           | 41,714    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Restricted cash                                          |  |          |        |          |  |          |       |          |  |          |       |              |  |              |       |              |  |        |       |   |  |        |       |   |  |            |           |   |  |           | 16,920    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Intangible assets, net                                   |  |          |        |          |  |          |       |          |  |          |       |              |  |              |       |              |  |        | 26     |   |  |        |       |   |  |            |           |   |  |           | 20,232    |  
|                                  |                                                          | 
|                                  |                                                          |  | 111,907  |         |          |  | 17,920   |        |          |  | 35,338   |        |              |  | 32,252       |        |              |  | 37,305 |        |   |  | 78,548 |        |   |  | (2,794,422 | )          |   |  | 2,985,297 |          
|                                  |                                                          | 
|Liabilities and Partners capital |                                                          |  |          |         |          |  |          |        |          |  |          |        |              |  |              |        |              |  |        |        |   |  |        |        |   |  |            |            |   |  |           |          
|                                 
|                                 
|                                 
|                                 
|                                  | Accounts payable, accrued expenses and other liabilities |  |          | 1,587   |          |  |          | 27     |          |  |          | 293    |              |  |              | (86    | )            |  |        | 180    |   |  |        | 71,134 |   |  |            |           |   |  |           | 121,582   |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accrued interest                                         |  |          |        |          |  |          |       |          |  |          |       |              |  |              |       |              |  |        |       |   |  |        | (2     | ) |  |            |           |   |  |           | 53,217    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Due to MeriStar Hotels & Resorts                         |  |          |        |          |  |          |       |          |  |          |       |              |  |              |       |              |  |        |       |   |  |        | 9,172  |   |  |            |            |   |  |           | 9,092     |  
|                                 
|                                 
|                                 
|                                 
|                                  | Income taxes payable                                     |  |          |        |          |  |          |       |          |  |          |       |              |  |              |       |              |  |        |       |   |  |        | 25     |   |  |            |           |   |  |           | 41        |  
|                                 
|                                 
|                                 
|                                 
|                                  | Distributions payable                                    |  |          |        |          |  |          |       |          |  |          |       |              |  |              |       |              |  |        |       |   |  |        |       |   |  |            |           |   |  |           | 449       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Deferred income taxes                                    |  |          |        |          |  |          |       |          |  |          |       |              |  |              |       |              |  |        |       |   |  |        | (337   | ) |  |            |           |   |  |           | 6,798     |  
|                                 
|                                 
|                                 
|                                 
|                                  | Interest rate swaps                                      |  |          |        |          |  |          |       |          |  |          |       |              |  |              |       |              |  |        |       |   |  |        |       |   |  |            |           |   |  |           | 8,684     |  
|                                 
|                                 
|                                 
|                                 
|                                  | Notes payable to MeriStar                                |  |          |        |          |  |          |       |          |  |          |       |              |  |              |       |              |  |        |       |   |  |        |       |   |  |            |           |   |  |           | 357,311   |  
|                                 
|                                 
|                                 
|                                 
|                                  | Long-term debt                                           |  |          |        |          |  |          |       |          |  |          | 23,609 |              |  |              |       |              |  |        |       |   |  |        | (3,114 | ) |  |            | (84,095    | ) |  |           | 1,311,824 |  
|                                  |                                                          | 
|Total liabilities                 |                                                          |  | 1,587    |         |          |  | 27       |        |          |  | 23,903   |        |              |  | (86          | )      |              |  | 180    |        |   |  | 76,878 |        |   |  | (84,095    | )          |   |  | 1,868,998 |          
|                                  |                                                          | 
|                                  |                                                          |  |          |         |          |  |          |        |          |  |          |        |              |  |              |        |              |  |        |        |   |  |        |        |   |  |            |            |   |  |           |          
|                                 
|                                 
|                                 
|                                 
|                                  | Minority interests                                       |  |          |        |          |  |          |       |          |  |          |       |              |  |              |       |              |  |        |       |   |  |        |       |   |  |            |           |   |  |           | 2,646     |  
|                                 
|                                 
|                                 
|                                 
|                                  | Redeemable OP units at redemption value                  |  |          |        |          |  |          |       |          |  |          |       |              |  |              |       |              |  |        |       |   |  |        |       |   |  |            |           |   |  |           | 67,722    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Partners capital                                        |  |          | 110,320 |          |  |          | 17,893 |          |  |          | 11,435 |              |  |              | 32,339 |              |  |        | 37,125 |   |  |        | 1,670  |   |  |            | (2,710,327 | ) |  |           | 1,045,931 |  
|                                  |                                                          | 
|                                  |                                                          |  | 111,907  |         |          |  | 17,920   |        |          |  | 35,338   |        |              |  | 32,252       |        |              |  | 37,305 |        |   |  | 78,548 |        |   |  | (2,794,422 | )          |   |  | 2,985,297 |          
|                                  |                                                          | 





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended June 2002
(in thousands)

|                                        |                                                     |                                                                                     |             |       |             |   |              |       |          |   |         |   |          |   |          |   |          |   |          |   |     |   |     |   |     |   |     |   |     |   |   |   |   |   | 
|--------------------------------------- | --------------------------------------------------- | ----------------------------------------------------------------------------------- | ----------- | ----- | ----------- | - | ------------ | ----- | -------- | - | ------- | - | -------- | - | -------- | - | -------- | - | -------- | - | --- | - | --- | - | --- | - | --- | - | --- | - | - | - | - | - | 
|                                        |                                                     |                                                                                     |             |       | MeriStar    |   | Non-         |       | MeriStar |   | AGH     |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar
|                                        |                                                     |                                                                                     |             |       | Hospitality |   | Guarantor    |       | Sub 7C,  |   | Upreit, |   | Sub 5N,  |   | Sub 8A,  |   | Sub 8F,  |   | Sub 8G, 
|                                        |                                                     |                                                                                     |             |       | OP, L.P.    |   | Subsidiaries |       | LLC      |   | LLC     |   | LLC      |   | LLC      |   | L.P.     |   | LLC     
|                                        |                                                     |                                                                                    
|Participating lease revenue             |                                                     |                                                                                     |            |       |             |   | 35,050       |       |          |   |        |   |          |   |         |   |          |   | 244      |   |     |   | 344 |   |     |   | 570 |   |     |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        | Hotel operations:                                   |                                                                                     |             |      |             |   |              |      |          |   |         |  |          |   |          |  |          |   |          |  |     |   |     |  |     |   |     |  |     |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |             |       |            |   |              |       |         |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |             |       |            |   |              |       |         |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |             |       |            |   |              |       |         |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental and other revenues                    |                                                                                     |             | 1,705 |             |   |              | 2,153 |          |   |         |  |          |   |          |  |          |   |          |  |     |   |     |  |     |   |     |  |     |   |   |  |  
|                                        |                                                     |                                                                                    
|Total revenue                           |                                                     |                                                                                     | 1,705       |       |             |   | 37,203       |       |          |   |        |   |          |   |         |   |          |   | 244      |   |     |   | 344 |   |     |   | 570 |   |     |   |  |  
|                                        |                                                     |                                                                                    
|Hotel operating expenses by department: |                                                     |                                                                                     |            |       |             |   |             |       |          |   |        |   |          |   |         |   |          |   |         |   |     |   |    |   |     |   |    |   |     |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |             |       |            |   |              |       |         |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |             |       |            |   |              |       |         |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |             |       |            |   |              |       |         |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental, parking and other operating expenses |                                                                                     |             |      |             |   |              | 469   |          |   |         |  |          |   |          |  |          |   |          |  |     |   |     |  |     |   |     |  |     |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|Undistributed operating expenses:       |                                                     |                                                                                     |            |       |             |   |             |       |          |   |        |   |          |   |         |   |          |   |         |   |     |   |    |   |     |   |    |   |     |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Administrative and general                                                          |             |       | 2,815       |   |              |       | (40      | ) |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property operating costs                                                            |             |       |            |   |              |       | (13      | ) |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property taxes, insurance and other                                                 |             |       | (1,172      | ) |              |       | 3,417    |   |         |   |         |   |          |   |         |   |          |   | 26  |   |     |   | 38  |   |     |   | 146 |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Depreciation and amortization                                                       |             |       | 2,489       |   |              |       | 13,600   |   |         |   |         |   |          |   |         |   |          |   | 33  |   |     |   | 53  |   |     |   | 113 |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Expense
for non-hedging derivatives                                                 |             |       | 3,090       |   |              |       |         |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of investment in STS Hotel Net                                           |             |       |            |   |              |       |          |   |         |   |          |   |          |   |          |   |          |   |     |   |     |   |     |   |     |   |     |   |   |   |   |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Swap termination fees                                                               |             |       |            |   |              |       |         |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of deferred costs                                                        |             |       |            |   |              |       |         |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on fair value of non-hedging derivatives                                       |             |       |            |   |              |       |         |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | FelCor merger costs                                                                 |             |       |            |   |              |       |         |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Costs to terminate leases with Prime Hospitality                                    |             |       |            |   |              |       |         |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     |                                                                                     | Corporation |       |             |  |              |       |          |  |         |   |          |  |          |   |          |  |          |   |     |  |     |   |     |  |     |   |     |  |   |   |   |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Restructuring charge                                                                |             |       |            |   |              |       |         |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Total operating expenses                                                            |             |       | 7,222       |   |              |       | 17,433   |   |         |   |         |   |          |   |         |   |          |   | 60  |   |     |   | 91  |   |     |   | 259 |   |   |   |  |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Net operating income                                                                |             |       | (5,518      | ) |              |       | 19,770   |   |         |   |         |   |          |   |         |   |          |   | 184 |   |     |   | 253 |   |     |   | 311 |   |   |   |  |  
|                                        |                                                     | Interest expense, net                                                               |             |       | 25,866      |   |              |       | 6,990    |   |         |   |         |   |          |   |         |   |          |   | (1  | ) |     |   | (1  | ) |     |   | (2  | ) |   |   |  |  
|                                        |                                                     | Equity in income from consolidated entities                                         |             |       | (34,974     | ) |              |       |         |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before minority interests, income
tax benefit, loss on sale of assets |             |       | 3,590       |   |              |       | 12,781   |   |         |   |         |   |          |   |         |   |          |   | 186 |   |     |   | 255 |   |     |   | 313 |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Minority interests                                                                  |             |       | (3          | ) |              |       |         |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before income tax benefit, loss on                                    |             |       |            |   |              |       |         |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | sale of assets                                                                      |             |       | 3,593       |   |              |       | 12,781   |   |         |   |         |   |          |   |         |   |          |   | 186 |   |     |   | 255 |   |     |   | 313 |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income tax benefit                                                                  |             |       | 90          |   |              |       |         |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before loss on sale of assets                                         |             |       | 3,503       |   |              |       | 12,781   |   |         |   |         |   |          |   |         |   |          |   | 186 |   |     |   | 255 |   |     |   | 313 |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on sale of assets, net of tax effect                                           |             |       |            |   |              |       |         |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Extraordinary item, net of tax effect                                               |             |       |            |   |              |       |         |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Net income (loss)                                                                   |             |       | 3,503       |   |              |       | 12,781   |   |         |   |         |   |          |   |         |   |          |   | 186 |   |     |   | 255 |   |     |   | 313 |   |   |   |  |  
|                                        |                                                     |                                                                                    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended June 2002
(in thousands)

|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |   |          |   |          |   |          |   |          |   |     |   |     |   |     |   |     |   |     |   |   |   |   |   | 
|--------------------------------------- | --------------------------------------------------- | ----------------------------------------------------------------------------------- | ----------- | - | -------- | - | -------- | - | -------- | - | -------- | - | -------- | - | -------- | - | -------- | - | -------- | - | --- | - | --- | - | --- | - | --- | - | --- | - | - | - | - | - | 
|                                        |                                                     |                                                                                     |             |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar
|                                        |                                                     |                                                                                     |             |   | Sub 6H,  |   | Sub 8B,  |   | Sub 1C,  |   | Sub 8E,  |   | Sub 7F,  |   | Sub 5L,  |   | Sub 3C,  |   | Sub 5R, 
|                                        |                                                     |                                                                                     |             |   | L.P.     |   | LLC      |   | L.P.     |   | LLC      |   | LLC      |   | LLC      |   | LLC      |   | LLC     
|                                        |                                                     |                                                                                    
|Participating lease revenue             |                                                     |                                                                                     | 413         |   |          |   | 2,082    |   |          |   | 404      |   |          |   | 431      |   |          |   | 322      |   |     |   | 294 |   |     |   | 448 |   |     |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        | Hotel operations:                                   |                                                                                     |             |  |          |   |          |  |          |   |          |  |          |   |          |  |          |   |          |  |     |   |     |  |     |   |     |  |     |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental and other revenues                    |                                                                                     |             |  |          |   |          |  |          |   |          |  |          |   |          | 7 |          |   |          |  |     |   |     |  |     |   |     |  |     |   |   |  |  
|                                        |                                                     |                                                                                    
|Total revenue                           |                                                     |                                                                                     | 413         |   |          |   | 2,082    |   |          |   | 404      |   |          |   | 439      |   |          |   | 322      |   |     |   | 294 |   |     |   | 448 |   |     |   |  |  
|                                        |                                                     |                                                                                    
|Hotel operating expenses by department: |                                                     |                                                                                     |            |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |     |   |    |   |     |   |    |   |     |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental, parking and other operating expenses |                                                                                     |             |  |          |   |          |  |          |   |          |  |          |   |          |  |          |   |          |  |     |   |     |  |     |   |     |  |     |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|Undistributed operating expenses:       |                                                     |                                                                                     |            |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |     |   |    |   |     |   |    |   |     |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Administrative and general                                                          |             |   |         |   |          |   |         |   |          |   | 3        |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property operating costs                                                            |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property taxes, insurance and other                                                 |             |   | 24       |   |          |   | 358      |   |          |   | 198      |   |          |   | 45       |   |          |   | 36  |   |     |   | 30  |   |     |   | 112 |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Depreciation and amortization                                                       |             |   | 108      |   |          |   | 595      |   |          |   | 257      |   |          |   | 149      |   |          |   | 115 |   |     |   | 34  |   |     |   | 177 |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Expense for non-hedging dervitives                                                  |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of investment in STS Hotel Net                                           |             |   |          |   |          |   |          |   |          |   |          |   |          |   |          |   |          |   |     |   |     |   |     |   |     |   |     |   |   |   |   |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Swap termination fees                                                               |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of deferred costs                                                        |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on fair value of non-hedging derivatives                                       |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | FelCor merger costs                                                                 |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Costs to terminate leases with Prime Hospitality                                    |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     |                                                                                     | Corporation |   |          |  |          |   |          |  |          |   |          |  |          |   |          |  |          |   |     |  |     |   |     |  |     |   |     |  |   |   |   |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Restructuring charge                                                                |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Total operating expenses                                                            |             |   | 131      |   |          |   | 953      |   |          |   | 458      |   |          |   | 194      |   |          |   | 151 |   |     |   | 63  |   |     |   | 289 |   |   |   |  |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Net operating income                                                                |             |   | 282      |   |          |   | 1,129    |   |          |   | (54      | ) |          |   | 245      |   |          |   | 170 |   |     |   | 231 |   |     |   | 159 |   |   |   |  |  
|                                        |                                                     | Interest expense, net                                                               |             |   |         |   |          |   | (25      | ) |          |   | (11      | ) |          |   | (1       | ) |          |   | (3  | ) |     |   | (1  | ) |     |   | (5  | ) |   |   |  |  
|                                        |                                                     | Equity in income from consolidated entities                                         |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before minority interests, income
tax benefit, loss on sale of assets |             |   | 282      |   |          |   | 1,154    |   |          |   | (42      | ) |          |   | 246      |   |          |   | 173 |   |     |   | 232 |   |     |   | 164 |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Minority interests                                                                  |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before income tax benefit, loss on                                    |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | sale of assets                                                                      |             |   | 282      |   |          |   | 1,154    |   |          |   | (42      | ) |          |   | 246      |   |          |   | 173 |   |     |   | 232 |   |     |   | 164 |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income tax benefit                                                                  |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before loss on sale of assets                                         |             |   | 282      |   |          |   | 1,154    |   |          |   | (42      | ) |          |   | 246      |   |          |   | 173 |   |     |   | 232 |   |     |   | 164 |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on sale of assets, net of tax effect                                           |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Extraordinary item, net of tax effect                                               |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Net income (loss)                                                                   |             |   | 282      |   |          |   | 1,154    |   |          |   | (42      | ) |          |   | 246      |   |          |   | 173 |   |     |   | 232 |   |     |   | 164 |   |   |   |  |  
|                                        |                                                     |                                                                                    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended June 2002
(in thousands)

|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |   |          |   |          |     |          |   |          |   |     |   |     |   |     |   |     |   |     |   |     |   |     |   | 
|--------------------------------------- | --------------------------------------------------- | ----------------------------------------------------------------------------------- | ----------- | - | -------- | - | -------- | - | -------- | - | -------- | - | -------- | - | -------- | --- | -------- | - | -------- | - | --- | - | --- | - | --- | - | --- | - | --- | - | --- | - | --- | - | 
|                                        |                                                     |                                                                                     |             |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |     | MeriStar |   | MeriStar
|                                        |                                                     |                                                                                     |             |   | Sub 6D,  |   | Sub 6E,  |   | Sub 4E,  |   | Sub 1B,  |   | Sub 5F,  |   | Sub 6G,  |     | Sub 8C,  |   | Sub 4C, 
|                                        |                                                     |                                                                                     |             |   | LLC      |   | LLC      |   | L.P.     |   | LLC      |   | L.P.     |   | LLC      |     | LLC      |   | L.P.    
|                                        |                                                     |                                                                                    
|Participating lease revenue             |                                                     |                                                                                     | 636         |   |          |   | 1,662    |   |          |   | 357      |   |          |   | 680      |     |          |   | 729      |   |     |   | 813 |   |     |   | 486 |   |     |   | 249 |  
|                                       
|                                       
|                                       
|                                       
|                                        | Hotel operations:                                   |                                                                                     |             |  |          |   |          |  |          |   |          |  |          |   |          |    |          |   |          |  |     |   |     |  |     |   |     |  |     |   |     |  |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |             |   |         |   |          |   |         |   |          |   |         |   |          |     |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |             |   |         |   |          |   |         |   |          |   |         |   |          |     |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |             |   |         |   |          |   |         |   |          |   |         |   |          |     |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental and other revenues                    |                                                                                     |             | 4 |          |   |          |  |          |   |          | 4 |          |   |          | (12 | )        |   |          |  |     |   |     |  |     |   |     |  |     |   |     |  |    
|                                        |                                                     |                                                                                    
|Total revenue                           |                                                     |                                                                                     | 640         |   |          |   | 1,662    |   |          |   | 360      |   |          |   | 668      |     |          |   | 729      |   |     |   | 813 |   |     |   | 486 |   |     |   | 249 |  
|                                        |                                                     |                                                                                    
|Hotel operating expenses by department: |                                                     |                                                                                     |            |   |          |   |         |   |          |   |         |   |          |   |         |     |          |   |         |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |             |   |         |   |          |   |         |   |          |   |         |   |          |     |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |             |   |         |   |          |   |         |   |          |   |         |   |          |     |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |             |   |         |   |          |   |         |   |          |   |         |   |          |     |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental, parking and other operating expenses |                                                                                     |             |  |          |   |          |  |          |   |          |  |          |   |          |    |          |   |          |  |     |   |     |  |     |   |     |  |     |   |     |  |    
|                                       
|                                       
|                                       
|                                       
|Undistributed operating expenses:       |                                                     |                                                                                     |            |   |          |   |         |   |          |   |         |   |          |   |         |     |          |   |         |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Administrative and general                                                          |             |   |         |   |          |   |         |   |          |   |         |   |          |     |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property operating costs                                                            |             |   |         |   |          |   |         |   |          |   |         |   |          |     |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property taxes, insurance and other                                                 |             |   | 44       |   |          |   | 208      |   |          |   | 98       |   |          |     | 40       |   |          |   | 86  |   |     |   | 77  |   |     |   | 148 |   |     |   | 101 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Depreciation and amortization                                                       |             |   | 133      |   |          |   | 424      |   |          |   | 229      |   |          |     | 158      |   |          |   | 264 |   |     |   | 209 |   |     |   | 346 |   |     |   | 131 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Expense for non-hedging dervitives                                                  |             |   |         |   |          |   |         |   |          |   |         |   |          |     |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of investment in STS Hotel Net                                           |             |   |          |   |          |   |          |   |          |   |          |   |          |     |          |   |          |   |     |   |     |   |     |   |     |   |     |   |     |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Swap termination fees                                                               |             |   |         |   |          |   |         |   |          |   |         |   |          |     |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of deferred costs                                                        |             |   |         |   |          |   |         |   |          |   |         |   |          |     |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on fair value of non-hedging derivatives                                       |             |   |         |   |          |   |         |   |          |   |         |   |          |     |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | FelCor merger costs                                                                 |             |   |         |   |          |   |         |   |          |   |         |   |          |     |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Costs to terminate leases with Prime Hospitality                                    |             |   |         |   |          |   |         |   |          |   |         |   |          |     |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     |                                                                                     | Corporation |   |          |  |          |   |          |  |          |   |          |  |          |     |          |  |          |   |     |  |     |   |     |  |     |   |     |  |     |   |     |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Restructuring charge                                                                |             |   |         |   |          |   |         |   |          |   |         |   |          |     |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Total operating expenses                                                            |             |   | 177      |   |          |   | 633      |   |          |   | 327      |   |          |     | 198      |   |          |   | 350 |   |     |   | 286 |   |     |   | 495 |   |     |   | 232 |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Net operating income                                                                |             |   | 462      |   |          |   | 1,029    |   |          |   | 33       |   |          |     | 470      |   |          |   | 379 |   |     |   | 527 |   |     |   | (8  | ) |     |   | 17  |  
|                                        |                                                     | Interest expense, net                                                               |             |   | (7       | ) |          |   | (16      | ) |          |   | (7       | ) |          |     | (5       | ) |          |   | (10 | ) |     |   | (13 | ) |     |   | (11 | ) |     |   | (9  | )
|                                       
|                                        |                                                     | Equity in income from consolidated entities                                         |             |   |         |   |          |   |         |   |          |   |         |   |          |     |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before minority interests, income
tax benefit, loss on sale of assets |             |   | 470      |   |          |   | 1,045    |   |          |   | 40       |   |          |     | 475      |   |          |   | 389 |   |     |   | 539 |   |     |   | 3   |   |     |   | 26  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Minority interests                                                                  |             |   |         |   |          |   |         |   |          |   |         |   |          |     |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before income tax benefit, loss on                                    |             |   |         |   |          |   |         |   |          |   |         |   |          |     |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | sale of assets                                                                      |             |   | 470      |   |          |   | 1,045    |   |          |   | 40       |   |          |     | 475      |   |          |   | 389 |   |     |   | 539 |   |     |   | 3   |   |     |   | 26  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income tax benefit                                                                  |             |   |         |   |          |   |         |   |          |   |         |   |          |     |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before loss on sale of assets                                         |             |   | 470      |   |          |   | 1,045    |   |          |   | 40       |   |          |     | 475      |   |          |   | 389 |   |     |   | 539 |   |     |   | 3   |   |     |   | 26  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on sale of assets, net of tax effect                                           |             |   |         |   |          |   |         |   |          |   |         |   |          |     |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Extraordinary item, net of tax effect                                               |             |   |         |   |          |   |         |   |          |   |         |   |          |     |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Net income (loss)                                                                   |             |   | 470      |   |          |   | 1,045    |   |          |   | 40       |   |          |     | 475      |   |          |   | 389 |   |     |   | 539 |   |     |   | 3   |   |     |   | 26  |  
|                                        |                                                     |                                                                                    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended June 2002
(in thousands)

|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |   |          |   |         |   |          |   |          |   |       |   |     |   |          |   |       |   |     |   |     |   |     |   | 
|--------------------------------------- | --------------------------------------------------- | ----------------------------------------------------------------------------------- | ----------- | - | -------- | - | -------- | - | -------- | - | -------- | - | -------- | - | ------- | - | -------- | - | -------- | - | ----- | - | --- | - | -------- | - | ----- | - | --- | - | --- | - | --- | - | 
|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |   |          |   |         |   |          |   |          |   |       |   |     |   | MeriStar |   |       |   |     |   |     |   |    
|                                        |                                                     |                                                                                     |             |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |   | Sub 7A  |   | MeriStar |   | MeriStar
|                                        |                                                     |                                                                                     |             |   | Sub 4H,  |   | Sub 7E,  |   | Sub 3D,  |   | Sub 1A,  |   | Sub 5E,  |   | Joint   |   | Sub 6K,  |   | Sub 2B, 
|                                        |                                                     |                                                                                     |             |   | L.P.     |   | LLC      |   | LLC      |   | LLC      |   | LLC      |   | Venture |   | LLC      |   | LLC     
|                                        |                                                     |                                                                                    
|Participating lease revenue             |                                                     |                                                                                     | 178         |   |          |   | 355      |   |          |   | 514      |   |          |   | 470     |   |          |   | 1,824    |   |       |   | 353 |   |          |   | 1,163 |   |     |   | 162 |  
|                                       
|                                       
|                                       
|                                       
|                                        | Hotel operations:                                   |                                                                                     |             |  |          |   |          |  |          |   |          |  |          |   |         |  |          |   |          |  |       |   |     |  |          |   |       |  |     |   |     |  |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental and other revenues                    |                                                                                     |             |  |          |   |          |  |          |   |          |  |          |   |         |  |          |   |          |  |       |   |     |  |          |   |       |  |     |   |     |  |    
|                                        |                                                     |                                                                                    
|Total revenue                           |                                                     |                                                                                     | 178         |   |          |   | 355      |   |          |   | 514      |   |          |   | 470     |   |          |   | 1,824    |   |       |   | 353 |   |          |   | 1,163 |   |     |   | 162 |  
|                                        |                                                     |                                                                                    
|Hotel operating expenses by department: |                                                     |                                                                                     |            |   |          |   |         |   |          |   |         |   |          |   |        |   |          |   |         |   |       |   |    |   |          |   |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental, parking and other operating expenses |                                                                                     |             |  |          |   |          |  |          |   |          |  |          |   |         |  |          |   |          |  |       |   |     |  |          |   |       |  |     |   |     |  |    
|                                       
|                                       
|                                       
|                                       
|Undistributed operating expenses:       |                                                     |                                                                                     |            |   |          |   |         |   |          |   |         |   |          |   |        |   |          |   |         |   |       |   |    |   |          |   |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Administrative and general                                                          |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property operating costs                                                            |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property taxes, insurance and other                                                 |             |   | 47       |   |          |   | 40       |   |          |   | 63       |   |         |   | 81       |   |          |   | 99    |   |     |   | 55       |   |       |   | 121 |   |     |   | 35  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Depreciation and amortization                                                       |             |   | 135      |   |          |   | 157      |   |          |   | 211      |   |         |   | 113      |   |          |   | 484   |   |     |   | 104      |   |       |   | 186 |   |     |   | 107 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Expense for non-hedging dervitives                                                  |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of investment in STS Hotel Net                                           |             |   |          |   |          |   |          |   |          |   |          |   |         |   |          |   |          |   |       |   |     |   |          |   |       |   |     |   |     |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Swap termination fees                                                               |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of deferred costs                                                        |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on fair value of non-hedging derivatives                                       |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | FelCor merger costs                                                                 |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Costs to terminate leases with Prime Hospitality                                    |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     |                                                                                     | Corporation |   |          |  |          |   |          |  |          |   |          |  |         |   |          |  |          |   |       |  |     |   |          |  |       |   |     |  |     |   |     |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Restructuring charge                                                                |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Total operating expenses                                                            |             |   | 182      |   |          |   | 197      |   |          |   | 274      |   |         |   | 194      |   |          |   | 583   |   |     |   | 159      |   |       |   | 307 |   |     |   | 142 |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Net operating income                                                                |             |   | (4       | ) |          |   | 157      |   |          |   | 241      |   |         |   | 276      |   |          |   | 1,241 |   |     |   | 193      |   |       |   | 856 |   |     |   | 21  |  
|                                        |                                                     | Interest expense, net                                                               |             |   | (2       | ) |          |   | (4       | ) |          |   | (11      | ) |         |   | (4       | ) |          |   | (8    | ) |     |   | (9       | ) |       |   | (10 | ) |     |   | 99  |  
|                                        |                                                     | Equity in income from consolidated entities                                         |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before minority interests, income
tax benefit, loss on sale of assets |             |   | (2       | ) |          |   | 162      |   |          |   | 252      |   |         |   | 280      |   |          |   | 1,250 |   |     |   | 202      |   |       |   | 866 |   |     |   | (78 | )
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Minority interests                                                                  |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before income tax benefit, loss on                                    |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | sale of assets                                                                      |             |   | (2       | ) |          |   | 162      |   |          |   | 252      |   |         |   | 280      |   |          |   | 1,250 |   |     |   | 202      |   |       |   | 866 |   |     |   | (78 | )
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income tax benefit                                                                  |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before loss on sale of assets                                         |             |   | (2       | ) |          |   | 162      |   |          |   | 252      |   |         |   | 280      |   |          |   | 1,250 |   |     |   | 202      |   |       |   | 866 |   |     |   | (78 | )
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on sale of assets, net of tax effect                                           |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Extraordinary item, net of tax effect                                               |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Net income (loss)                                                                   |             |   | (2       | ) |          |   | 162      |   |          |   | 252      |   |         |   | 280      |   |          |   | 1,250 |   |     |   | 202      |   |       |   | 866 |   |     |   | (78 | )
|                                        |                                                     |                                                                                    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended June 2002
(in thousands)

|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |   |          |   |             |   |          |   |          |   |     |   |     |   |    |   |     |   |     |   |     |   |     |   | 
|--------------------------------------- | --------------------------------------------------- | ----------------------------------------------------------------------------------- | ----------- | - | -------- | - | -------- | - | -------- | - | -------- | - | -------- | - | ----------- | - | -------- | - | -------- | - | --- | - | --- | - | -- | - | --- | - | --- | - | --- | - | --- | - | 
|                                        |                                                     |                                                                                     |             |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |   | MDV         |   | MeriStar |   | MeriStar
|                                        |                                                     |                                                                                     |             |   | Sub 3A,  |   | Sub 4A,  |   | Sub 4D,  |   | Sub 2A,  |   | Sub 6L,  |   | Limited     |   | Sub 5C,  |   | Sub 6J, 
|                                        |                                                     |                                                                                     |             |   | LLC      |   | L.P.     |   | LLC      |   | LLC      |   | LLC      |   | Partnership |   | LLC      |   | LLC     
|                                        |                                                     |                                                                                    
|Participating lease revenue             |                                                     |                                                                                     | 132         |   |          |   | 249      |   |          |   | 116      |   |          |   | 167         |   |          |   | 492      |   |     |   | 141 |   |    |   | 479 |   |     |   | 816 |  
|                                       
|                                       
|                                       
|                                       
|                                        | Hotel operations:                                   |                                                                                     |             |  |          |   |          |  |          |   |          |  |          |   |             |  |          |   |          |  |     |   |     |  |    |   |     |  |     |   |     |  |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |   |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |   |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |   |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental and other revenues                    |                                                                                     |             |  |          |   |          |  |          |   |          |  |          |   |             |  |          |   |          |  |     |   |     |  |    |   |     |  |     |   |     |  |    
|                                        |                                                     |                                                                                    
|Total revenue                           |                                                     |                                                                                     | 132         |   |          |   | 249      |   |          |   | 116      |   |          |   | 167         |   |          |   | 492      |   |     |   | 141 |   |    |   | 479 |   |     |   | 816 |  
|                                        |                                                     |                                                                                    
|Hotel operating expenses by department: |                                                     |                                                                                     |            |   |          |   |         |   |          |   |         |   |          |   |            |   |          |   |         |   |     |   |    |   |    |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |   |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |   |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |   |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental, parking and other operating expenses |                                                                                     |             |  |          |   |          |  |          |   |          |  |          |   |             |  |          |   |          |  |     |   |     |  |    |   |     |  |     |   |     |  |    
|                                       
|                                       
|                                       
|                                       
|Undistributed operating expenses:       |                                                     |                                                                                     |            |   |          |   |         |   |          |   |         |   |          |   |            |   |          |   |         |   |     |   |    |   |    |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Administrative and general                                                          |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |   |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property operating costs                                                            |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |   |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property taxes, insurance and other                                                 |             |   | 27       |   |          |   | 61       |   |          |   | 40       |   |             |   | 38       |   |          |   | 48  |   |     |   | 27 |   |     |   | 110 |   |     |   | 47  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Depreciation and amortization                                                       |             |   | 62       |   |          |   |         |   |          |   | 77       |   |             |   | 81       |   |          |   | 223 |   |     |   | 34 |   |     |   | 149 |   |     |   | 160 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Expense for non-hedging dervitives                                                  |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |   |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of investment in STS Hotel Net                                           |             |   |          |   |          |   |          |   |          |   |          |   |             |   |          |   |          |   |     |   |     |   |    |   |     |   |     |   |     |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Swap termination fees                                                               |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |   |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of deferred costs                                                        |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |   |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on fair value of non-hedging derivatives                                       |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |   |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | FelCor merger costs                                                                 |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |   |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Costs to terminate leases with Prime Hospitality                                    |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |   |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     |                                                                                     | Corporation |   |          |  |          |   |          |  |          |   |          |  |             |   |          |  |          |   |     |  |     |   |    |  |     |   |     |  |     |   |     |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Restructuring charge                                                                |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |   |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Total operating expenses                                                            |             |   | 89       |   |          |   | 61       |   |          |   | 117      |   |             |   | 120      |   |          |   | 271 |   |     |   | 60 |   |     |   | 260 |   |     |   | 207 |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Net operating income                                                                |             |   | 44       |   |          |   | 187      |   |          |   | (1       | ) |             |   | 47       |   |          |   | 221 |   |     |   | 81 |   |     |   | 220 |   |     |   | 609 |  
|                                        |                                                     | Interest expense, net                                                               |             |   | (13      | ) |          |   | (10      | ) |          |   | (11      | ) |             |   | 174      |   |          |   | (3  | ) |     |   | (1 | ) |     |   | (9  | ) |     |   | (10 | )
|                                       
|                                        |                                                     | Equity in income from consolidated entities                                         |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |   |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before minority interests, income
tax benefit, loss on sale of assets |             |   | 57       |   |          |   | 197      |   |          |   | 10       |   |             |   | (126     | ) |          |   | 224 |   |     |   | 82 |   |     |   | 229 |   |     |   | 619 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Minority interests                                                                  |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |   |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before income tax benefit, loss on                                    |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |   |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | sale of assets                                                                      |             |   | 57       |   |          |   | 197      |   |          |   | 10       |   |             |   | (126     | ) |          |   | 224 |   |     |   | 82 |   |     |   | 229 |   |     |   | 619 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income tax benefit                                                                  |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |   |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before loss on sale of assets                                         |             |   | 57       |   |          |   | 197      |   |          |   | 10       |   |             |   | (126     | ) |          |   | 224 |   |     |   | 82 |   |     |   | 229 |   |     |   | 619 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on sale of assets, net of tax effect                                           |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |   |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Extraordinary item, net of tax effect                                               |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |   |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Net income (loss)                                                                   |             |   | 57       |   |          |   | 197      |   |          |   | 10       |   |             |   | (126     | ) |          |   | 224 |   |     |   | 82 |   |     |   | 229 |   |     |   | 619 |  
|                                        |                                                     |                                                                                    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended June 2002
(in thousands)

|                                        |                                                     |                                                                                     |             |     |          |   |          |   |          |   |          |     |          |   |          |   |          |   |          |   |     |   |    |   |      |   |     |   |      |   |     |   |     |   | 
|--------------------------------------- | --------------------------------------------------- | ----------------------------------------------------------------------------------- | ----------- | --- | -------- | - | -------- | - | -------- | - | -------- | --- | -------- | - | -------- | - | -------- | - | -------- | - | --- | - | -- | - | ---- | - | --- | - | ---- | - | --- | - | --- | - | 
|                                        |                                                     |                                                                                     |             |     | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |     | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar
|                                        |                                                     |                                                                                     |             |     | Sub 1D,  |   | Sub 7B,  |   | Sub 7D,  |   | Sub 7G,  |     | Sub 6B,  |   | Sub 4I,  |   | Sub 5D,  |   | Sub 5H, 
|                                        |                                                     |                                                                                     |             |     | L.P.     |   | L.P.     |   | LLC      |   | LLC      |     | LLC      |   | L.P.     |   | LLC      |   | LLC     
|                                        |                                                     |                                                                                    
|Participating lease revenue             |                                                     |                                                                                     | 1,278       |     |          |   | 390      |   |          |   | 1,387    |     |          |   | 146      |   |          |   | 396      |   |     |   | 19 |   |      |   | 576 |   |      |   | 731 |  
|                                       
|                                       
|                                       
|                                       
|                                        | Hotel operations:                                   |                                                                                     |             |    |          |   |          |  |          |   |          |    |          |   |          |  |          |   |          |  |     |   |    |  |      |   |     |  |      |   |     |  |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |             |     |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |    |   |    |   |     |   |     |   |     |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |             |     |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |    |   |    |   |     |   |     |   |     |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |             |     |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |    |   |    |   |     |   |     |   |     |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental and other revenues                    |                                                                                     |             | 108 |          |   |          |  |          |   |          | 331 |          |   |          |  |          |   |          |  |     |   |    |  |      |   |     |  |      |   |     |  |    
|                                        |                                                     |                                                                                    
|Total revenue                           |                                                     |                                                                                     | 1,386       |     |          |   | 390      |   |          |   | 1,718    |     |          |   | 146      |   |          |   | 396      |   |     |   | 19 |   |      |   | 576 |   |      |   | 731 |  
|                                        |                                                     |                                                                                    
|Hotel operating expenses by department: |                                                     |                                                                                     |            |     |          |   |         |   |          |   |         |     |          |   |         |   |          |   |         |   |     |   |   |   |      |   |    |   |      |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |             |     |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |    |   |    |   |     |   |     |   |     |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |             |     |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |    |   |    |   |     |   |     |   |     |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |             |     |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |    |   |    |   |     |   |     |   |     |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental, parking and other operating expenses |                                                                                     |             | 34  |          |   |          |  |          |   |          | 199 |          |   |          |  |          |   |          |  |     |   |    |  |      |   |     |  |      |   |     |  |    
|                                       
|                                       
|                                       
|                                       
|Undistributed operating expenses:       |                                                     |                                                                                     |            |     |          |   |         |   |          |   |         |     |          |   |         |   |          |   |         |   |     |   |   |   |      |   |    |   |      |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Administrative and general                                                          |             |     |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |    |   |    |   |     |   |     |   |     |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property operating costs                                                            |             |     |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |    |   |    |   |     |   |     |   |     |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property taxes, insurance and other                                                 |             |     | 279      |   |          |   | 221      |   |          |     | 534      |   |          |   | 61       |   |          |   | 56  |   |    |   | 76   |   |     |   | 76   |   |     |   | 164 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Depreciation and amortization                                                       |             |     | 564      |   |          |   | 232      |   |          |     | 416      |   |          |   | 189      |   |          |   | 113 |   |    |   | 99   |   |     |   | 362  |   |     |   | 493 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Expense for non-hedging dervitives                                                  |             |     |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |    |   |    |   |     |   |     |   |     |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of investment in STS Hotel Net                                           |             |     |          |   |          |   |          |   |          |     |          |   |          |   |          |   |          |   |     |   |    |   |      |   |     |   |      |   |     |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Swap termination fees                                                               |             |     |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |    |   |    |   |     |   |     |   |     |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of deferred costs                                                        |             |     |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |    |   |    |   |     |   |     |   |     |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on fair value of non-hedging derivatives                                       |             |     |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |    |   |    |   |     |   |     |   |     |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | FelCor merger costs                                                                 |             |     |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |    |   |    |   |     |   |     |   |     |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Costs to terminate leases with Prime Hospitality                                    |             |     |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |    |   |    |   |     |   |     |   |     |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     |                                                                                     | Corporation |     |          |  |          |   |          |  |          |     |          |  |          |   |          |  |          |   |     |  |    |   |      |  |     |   |      |  |     |   |     |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Restructuring charge                                                                |             |     |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |    |   |    |   |     |   |     |   |     |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Total operating expenses                                                            |             |     | 877      |   |          |   | 453      |   |          |     | 1,149    |   |          |   | 250      |   |          |   | 169 |   |    |   | 176  |   |     |   | 438  |   |     |   | 657 |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Net operating income                                                                |             |     | 508      |   |          |   | (62      | ) |          |     | 570      |   |          |   | (103     | ) |          |   | 227 |   |    |   | (157 | ) |     |   | 138  |   |     |   | 74  |  
|                                        |                                                     | Interest expense, net                                                               |             |     | (8       | ) |          |   | (4       | ) |          |     | (12      | ) |          |   | (6       | ) |          |   | (3  | ) |    |   | (11  | ) |     |   | 380  |   |     |   | (22 | )
|                                       
|                                        |                                                     | Equity in income from consolidated entities                                         |             |     |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |    |   |    |   |     |   |     |   |     |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before minority interests, income
tax benefit, loss on sale of assets |             |     | 516      |   |          |   | (58      | ) |          |     | 582      |   |          |   | (97      | ) |          |   | 230 |   |    |   | (146 | ) |     |   | (242 | ) |     |   | 96  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Minority interests                                                                  |             |     |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |    |   |    |   |     |   |     |   |     |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before income tax benefit, loss on                                    |             |     |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |    |   |    |   |     |   |     |   |     |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | sale of assets                                                                      |             |     | 516      |   |          |   | (58      | ) |          |     | 582      |   |          |   | (97      | ) |          |   | 230 |   |    |   | (146 | ) |     |   | (242 | ) |     |   | 96  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income tax benefit                                                                  |             |     |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |    |   |    |   |     |   |     |   |     |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before loss on sale of assets                                         |             |     | 516      |   |          |   | (58      | ) |          |     | 582      |   |          |   | (97      | ) |          |   | 230 |   |    |   | (146 | ) |     |   | (242 | ) |     |   | 96  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on sale of assets, net of tax effect                                           |             |     |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |    |   |    |   |     |   |     |   |     |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Extraordinary item, net of tax effect                                               |             |     |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |    |   |    |   |     |   |     |   |     |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Net income (loss)                                                                   |             |     | 516      |   |          |   | (58      | ) |          |     | 582      |   |          |   | (97      | ) |          |   | 230 |   |    |   | (146 | ) |     |   | (242 | ) |     |   | 96  |  
|                                        |                                                     |                                                                                    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended June 2002
(in thousands)

|                                        |                                                     |                                                                                     |             |   |          |   |        |   |          |   |          |   |          |   |          |   |          |   |          |   |     |   |     |   |     |   |     |   |     |   |     |   |     |   | 
|--------------------------------------- | --------------------------------------------------- | ----------------------------------------------------------------------------------- | ----------- | - | -------- | - | ------ | - | -------- | - | -------- | - | -------- | - | -------- | - | -------- | - | -------- | - | --- | - | --- | - | --- | - | --- | - | --- | - | --- | - | --- | - | 
|                                        |                                                     |                                                                                     |             |   | MeriStar |   | AGH    |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar
|                                        |                                                     |                                                                                     |             |   | Sub 7H,  |   | PSS I, |   | Sub 2D,  |   | Sub 4F,  |   | Sub 5K,  |   | Sub 5M,  |   | Sub 1E,  |   | Sub 5O, 
|                                        |                                                     |                                                                                     |             |   | LLC      |   | Inc.   |   | LLC      |   | L.P.     |   | LLC      |   | LLC      |   | L.P.     |   | LLC     
|                                        |                                                     |                                                                                    
|Participating lease revenue             |                                                     |                                                                                     | 314         |   |          |   | 666    |   |          |   | 352      |   |          |   | 467      |   |          |   | 643      |   |     |   | 440 |   |     |   | 459 |   |     |   | 206 |  
|                                       
|                                       
|                                       
|                                       
|                                        | Hotel operations:                                   |                                                                                     |             |  |          |   |        |  |          |   |          |  |          |   |          |  |          |   |          |  |     |   |     |  |     |   |     |  |     |   |     |  |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental and other revenues                    |                                                                                     |             |  |          |   |        | 1 |          |   |          |  |          |   |          |  |          |   |          |  |     |   |     |  |     |   |     |  |     |   |     |  |    
|                                        |                                                     |                                                                                    
|Total revenue                           |                                                     |                                                                                     | 314         |   |          |   | 667    |   |          |   | 352      |   |          |   | 467      |   |          |   | 643      |   |     |   | 440 |   |     |   | 459 |   |     |   | 206 |  
|                                        |                                                     |                                                                                    
|Hotel operating expenses by department: |                                                     |                                                                                     |            |   |          |   |       |   |          |   |         |   |          |   |         |   |          |   |         |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental, parking and other operating expenses |                                                                                     |             |  |          |   |        |  |          |   |          |  |          |   |          |  |          |   |          |  |     |   |     |  |     |   |     |  |     |   |     |  |    
|                                       
|                                       
|                                       
|                                       
|Undistributed operating expenses:       |                                                     |                                                                                     |            |   |          |   |       |   |          |   |         |   |          |   |         |   |          |   |         |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Administrative and general                                                          |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property operating costs                                                            |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property taxes, insurance and other                                                 |             |   | 91       |   |        |   | 107      |   |          |   | 59       |   |          |   | 93       |   |          |   | 75  |   |     |   | 74  |   |     |   | 37  |   |     |   | 34  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Depreciation and amortization                                                       |             |   | 138      |   |        |   |         |   |          |   | 120      |   |          |   | 280      |   |          |   | 297 |   |     |   | 113 |   |     |   | 74  |   |     |   | 54  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Expense for non-hedging dervitives                                                  |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of investment in STS Hotel Net                                           |             |   |          |   |        |   |          |   |          |   |          |   |          |   |          |   |          |   |     |   |     |   |     |   |     |   |     |   |     |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Swap termination fees                                                               |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of deferred costs                                                        |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on fair value of non-hedging derivatives                                       |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | FelCor merger costs                                                                 |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Costs to terminate leases with Prime Hospitality                                    |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     |                                                                                     | Corporation |   |          |  |        |   |          |  |          |   |          |  |          |   |          |  |          |   |     |  |     |   |     |  |     |   |     |  |     |   |     |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Restructuring charge                                                                |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Total operating expenses                                                            |             |   | 230      |   |        |   | 107      |   |          |   | 179      |   |          |   | 373      |   |          |   | 372 |   |     |   | 187 |   |     |   | 111 |   |     |   | 88  |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Net operating income                                                                |             |   | 85       |   |        |   | 561      |   |          |   | 173      |   |          |   | 94       |   |          |   | 272 |   |     |   | 253 |   |     |   | 349 |   |     |   | 117 |  
|                                        |                                                     | Interest expense, net                                                               |             |   | (5       | ) |        |   | (14      | ) |          |   | 200      |   |          |   | (10      | ) |          |   | (28 | ) |     |   | (5  | ) |     |   | (4  | ) |     |   | (2  | )
|                                        |                                                     | Equity in income from consolidated entities                                         |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before minority interests, income
tax benefit, loss on sale of assets |             |   | 90       |   |        |   | 574      |   |          |   | (27      | ) |          |   | 105      |   |          |   | 299 |   |     |   | 258 |   |     |   | 353 |   |     |   | 119 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Minority interests                                                                  |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before income tax benefit, loss on                                    |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | sale of assets                                                                      |             |   | 90       |   |        |   | 574      |   |          |   | (27      | ) |          |   | 105      |   |          |   | 299 |   |     |   | 258 |   |     |   | 353 |   |     |   | 119 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income tax benefit                                                                  |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before loss on sale of assets                                         |             |   | 90       |   |        |   | 574      |   |          |   | (27      | ) |          |   | 105      |   |          |   | 299 |   |     |   | 258 |   |     |   | 353 |   |     |   | 119 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on sale of assets, net of tax effect                                           |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Extraordinary item, net of tax effect                                               |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Net income (loss)                                                                   |             |   | 90       |   |        |   | 574      |   |          |   | (27      | ) |          |   | 105      |   |          |   | 299 |   |     |   | 258 |   |     |   | 353 |   |     |   | 119 |  
|                                        |                                                     |                                                                                    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended June 2002
(in thousands)

|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |   |          |   |          |   |          |   |          |   |     |   |     |   |     |   |       |    |       |   |     |   |     |   | 
|--------------------------------------- | --------------------------------------------------- | ----------------------------------------------------------------------------------- | ----------- | - | -------- | - | -------- | - | -------- | - | -------- | - | -------- | - | -------- | - | -------- | - | -------- | - | --- | - | --- | - | --- | - | ----- | -- | ----- | - | --- | - | --- | - | 
|                                        |                                                     |                                                                                     |             |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar
|                                        |                                                     |                                                                                     |             |   | Sub 6M   |   | Sub 4B,  |   | Sub 6C,  |   | Sub 2C,  |   | Sub 4G,  |   | Sub 3B,  |   | Sub 5G,  |   | Sub 5P, 
|                                        |                                                     |                                                                                     |             |   | Company  |   | L.P.     |   | LLC      |   | LLC      |   | L.P.     |   | LLC      |   | L.P.     |   | LLC     
|                                        |                                                     |                                                                                    
|Participating lease revenue             |                                                     |                                                                                     | 1,299       |   |          |   | 51       |   |          |   | 832      |   |          |   | 419      |   |          |   | 621      |   |     |   | 205 |   |     |   | 3,033 |    |       |   | 183 |  
|                                       
|                                       
|                                       
|                                       
|                                        | Hotel operations:                                   |                                                                                     |             |  |          |   |          |  |          |   |          |  |          |   |          |  |          |   |          |  |     |   |     |  |     |   |       |   |       |   |     |  |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |       |    |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |       |    |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |       |    |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental and other revenues                    |                                                                                     |             |  |          |   |          |  |          |   |          | 4 |          |   |          | 9 |          |   |          | 4 |     |   |     | 6 |     |   |       | 12 |       |   |     |  |    
|                                        |                                                     |                                                                                    
|Total revenue                           |                                                     |                                                                                     | 1,299       |   |          |   | 51       |   |          |   | 836      |   |          |   | 427      |   |          |   | 625      |   |     |   | 211 |   |     |   | 3,045 |    |       |   | 183 |  
|                                        |                                                     |                                                                                    
|Hotel operating expenses by department: |                                                     |                                                                                     |            |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |     |   |    |   |     |   |      |    |       |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |       |    |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |       |    |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |       |    |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental, parking and other operating expenses |                                                                                     |             |  |          |   |          |  |          |   |          |  |          |   |          |  |          |   |          |  |     |   |     |  |     |   |       |   |       |   |     |  |    
|                                       
|                                       
|                                       
|                                       
|Undistributed operating expenses:       |                                                     |                                                                                     |            |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |     |   |    |   |     |   |      |    |       |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Administrative and general                                                          |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |       |    | (1    | ) |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property operating costs                                                            |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |       |    |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property taxes, insurance and other                                                 |             |   | 73       |   |          |   | 85       |   |          |   | 50       |   |          |   | 89       |   |          |   | 125 |   |     |   | 79  |   |       |    | 456   |   |     |   | 12  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Depreciation and amortization                                                       |             |   | 301      |   |          |   | 119      |   |          |   | 195      |   |          |   | 264      |   |          |   | 229 |   |     |   | 231 |   |       |    | 1,547 |   |     |   | 1   |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Expense for non-hedging dervitives                                                  |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |       |    |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of investment in STS Hotel Net                                           |             |   |          |   |          |   |          |   |          |   |          |   |          |   |          |   |          |   |     |   |     |   |     |   |       |    |       |   |     |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Swap termination fees                                                               |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |       |    |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of deferred costs                                                        |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |       |    |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on fair value of non-hedging derivatives                                       |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |       |    |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | FelCor merger costs                                                                 |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |       |    |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Costs to terminate leases with Prime Hospitality                                    |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |       |    |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     |                                                                                     | Corporation |   |          |  |          |   |          |  |          |   |          |  |          |   |          |  |          |   |     |  |     |   |     |  |       |    |       |  |     |   |     |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Restructuring charge                                                                |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |       |    |      |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Total operating expenses                                                            |             |   | 374      |   |          |   | 204      |   |          |   | 245      |   |          |   | 354      |   |          |   | 354 |   |     |   | 310 |   |       |    | 2,003 |   |     |   | 13  |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Net operating income                                                                |             |   | 925      |   |          |   | (154     | ) |          |   | 591      |   |          |   | 73       |   |          |   | 271 |   |     |   | (98 | ) |       |    | 1,042 |   |     |   | 170 |  
|                                        |                                                     | Interest expense, net                                                               |             |   | (7       | ) |          |   | (66      | ) |          |   | (11      | ) |          |   | 344      |   |          |   | (7  | ) |     |   | (11 | ) |       |    | (37   | ) |     |   |    |  
|                                       
|                                        |                                                     | Equity in income from consolidated entities                                         |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |       |    |      |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before minority interests, income
tax benefit, loss on sale of assets |             |   | 932      |   |          |   | (87      | ) |          |   | 602      |   |          |   | (271     | ) |          |   | 277 |   |     |   | (88 | ) |       |    | 1,079 |   |     |   | 170 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Minority interests                                                                  |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |       |    |      |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before income tax benefit, loss on                                    |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |       |    |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | sale of assets                                                                      |             |   | 932      |   |          |   | (87      | ) |          |   | 602      |   |          |   | (271     | ) |          |   | 277 |   |     |   | (88 | ) |       |    | 1,079 |   |     |   | 170 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income tax benefit                                                                  |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |       |    |      |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before loss on sale of assets                                         |             |   | 932      |   |          |   | (87      | ) |          |   | 602      |   |          |   | (271     | ) |          |   | 277 |   |     |   | (88 | ) |       |    | 1,079 |   |     |   | 170 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on sale of assets, net of tax effect                                           |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |       |    |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Extraordinary item, net of tax effect                                               |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |       |    |      |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Net income (loss)                                                                   |             |   | 932      |   |          |   | (87      | ) |          |   | 602      |   |          |   | (271     | ) |          |   | 277 |   |     |   | (88 | ) |       |    | 1,079 |   |     |   | 170 |  
|                                        |                                                     |                                                                                    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended June 2002
(in thousands)

|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |    |          |   |         |   |              |   |              |    |       |   |         |     |          |   |         |   |         |   |         |       |         |   | 
|--------------------------------------- | --------------------------------------------------- | ----------------------------------------------------------------------------------- | ----------- | - | -------- | - | -------- | - | -------- | - | -------- | -- | -------- | - | ------- | - | ------------ | - | ------------ | -- | ----- | - | ------- | --- | -------- | - | ------- | - | ------- | - | ------- | ----- | ------- | - | 
|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |    |          |   |         |   |              |   |              |    |       |   |         |     | MeriStar |   |         |   |         |   |         |       |        
|                                        |                                                     |                                                                                     |             |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |    | MeriStar |   | Hotel   |   |              |   |              |    |       |   |        
|                                        |                                                     |                                                                                     |             |   | Sub 5J,  |   | Sub 5Q,  |   | Sub 5A,  |   | Sub 8D,  |    | Sub 4J,  |   | Lessee, |   |              |   |              |    | Total
|                                        |                                                     |                                                                                     |             |   | LLC      |   | LLC      |   | LLC      |   | LLC      |    | LLC      |   | Inc.    |   | Eliminations |   | Consolidated
|                                        |                                                     |                                                                                    
|Participating lease revenue             |                                                     |                                                                                     | 2,586       |   |          |   | 543      |   |          |   | 1,418    |    |          |   | 579     |   |              |   | 814          |    |       |   |        |     |          |   | (74,881 | ) |         |   |        |      
|                                       
|                                       
|                                       
|                                       
|                                        | Hotel operations:                                   |                                                                                     |             |  |          |   |          |  |          |   |          |   |          |   |         |  |              |   |              |   |       |   |         |    |          |   |         |  |         |   |         |      |        
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |             |   |         |   |          |   |         |   |          |    |         |   |         |   |             |   |              |    |      |   |         |     | 183,422  |   |         |   |        |   |         |       | 183,422 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |             |   |         |   |          |   |         |   |          |    |         |   |         |   |             |   |              |    |      |   |         |     | 71,905   |   |         |   |        |   |         |       | 71,905  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |             |   |         |   |          |   |         |   |          |    |         |   |         |   |             |   |              |    |      |   |         |     | 20,608   |   |         |   |        |   |         |       | 20,608  |  
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental and other revenues                    |                                                                                     |             |  |          |   |          |  |          |   |          | 37 |          |   |         |  |              |   |              | 69 |       |   |         | 879 |          |   |         |  |         |   |         | 5,320 |        
|                                        |                                                     |                                                                                    
|Total revenue                           |                                                     |                                                                                     | 2,586       |   |          |   | 543      |   |          |   | 1,455    |    |          |   | 579     |   |              |   | 883          |    |       |   | 276,813 |     |          |   | (74,881 | ) |         |   | 281,255 |      
|                                        |                                                     |                                                                                    
|Hotel operating expenses by department: |                                                     |                                                                                     |            |   |          |   |         |   |          |   |         |    |          |   |        |   |              |   |             |    |       |   |        |     |          |   |        |   |         |   |        |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |             |   |         |   |          |   |         |   |          |    |         |   |         |   |             |   |              |    |      |   |         |     | 43,443   |   |         |   |        |   |         |       | 43,443  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |             |   |         |   |          |   |         |   |          |    |         |   |         |   |             |   |              |    |      |   |         |     | 50,445   |   |         |   |        |   |         |       | 50,445  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |             |   |         |   |          |   |         |   |          |    |         |   |         |   |             |   |              |    |      |   |         |     | 11,651   |   |         |   |        |   |         |       | 11,651  |  
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental, parking and other operating expenses |                                                                                     |             |  |          |   |          |  |          |   |          |   |          |   |         |  |              |   |              | 89 |       |   |         |    |          |   |         |  |         |   |         | 790   |        
|                                       
|                                       
|                                       
|                                       
|Undistributed operating expenses:       |                                                     |                                                                                     |            |   |          |   |         |   |          |   |         |    |          |   |        |   |              |   |             |    |       |   |        |     |          |   |        |   |         |   |        |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Administrative and general                                                          |             |   |         |   |          |   |         |   |          |    |         |   |         |   |             |   |              |    | 4     |   |         |     | 41,946   |   |         |   |        |   |         |       | 44,727  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property operating costs                                                            |             |   |         |   |          |   |         |   |          |    |         |   |         |   |             |   |              |    |      |   |         |     | 41,466   |   |         |   |        |   |         |       | 41,453  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property taxes, insurance and other                                                 |             |   | 439      |   |          |   | 72       |   |          |    | 150      |   |         |   | 101          |   |              |    | (86   | ) |         |     | 83,063   |   |         |   | (74,881 | ) |         |       | 16,864  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Depreciation and amortization                                                       |             |   | 867      |   |          |   | 120      |   |          |    | 377      |   |         |   | 317          |   |              |    | 335   |   |         |     | 789      |   |         |   |        |   |         |       | 31,139  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Expense for non-hedging derivatives                                                 |             |   |         |   |          |   |         |   |          |    |         |   |         |   |             |   |              |    |      |   |         |     |         |   |         |   |        |   |         |       | 3,090   |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of investment in STS Hotel Net                                           |             |   |          |   |          |   |          |   |          |    |          |   |         |   |              |   |              |    |       |   |         |     |         |   |         |   |         |   |         |       |        |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Swap termination fees                                                               |             |   |         |   |          |   |         |   |          |    |         |   |         |   |             |   |              |    |      |   |         |     |         |   |         |   |        |   |         |       |        |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of deferred costs                                                        |             |   |         |   |          |   |         |   |          |    |         |   |         |   |             |   |              |    |      |   |         |     |         |   |         |   |        |   |         |       |        |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on fair value of non-hedging derivatives                                       |             |   |         |   |          |   |         |   |          |    |         |   |         |   |             |   |              |    |      |   |         |     |         |   |         |   |        |   |         |       |        |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | FelCor merger costs                                                                 |             |   |         |   |          |   |         |   |          |    |         |   |         |   |             |   |              |    |      |   |         |     |         |   |         |   |        |   |         |       |        |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Costs to terminate leases with Prime Hospitality                                    |             |   |         |   |          |   |         |   |          |    |         |   |         |   |             |   |              |    |      |   |         |     |         |   |         |   |        |   |         |       |        |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     |                                                                                     | Corporation |   |          |  |          |   |          |  |          |    |          |  |         |   |              |  |              |    |       |  |         |     |          |  |         |   |         |  |         |       |         |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Restructuring charge                                                                |             |   |         |   |          |   |         |   |          |    |         |   |         |   |             |   |              |    |      |   |         |     |         |   |         |   |        |   |         |       |        |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Total operating expenses                                                            |             |   | 1,306    |   |          |   | 192      |   |          |    | 527      |   |         |   | 418          |   |              |    | 342   |   |         |     | 272,803  |   |         |   | (74,881 | ) |         |       | 243,602 |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Net operating income                                                                |             |   | 1,280    |   |          |   | 350      |   |          |    | 928      |   |         |   | 161          |   |              |    | 541   |   |         |     | 4,011    |   |         |   |        |   |         |       | 37,653  |  
|                                        |                                                     | Interest expense, net                                                               |             |   | (31      | ) |          |   | (25      | ) |          |    | 691      |   |         |   | (5           | ) |              |    | (11   | ) |         |     | (101     | ) |         |   |        |   |         |       | 34,063  |  
|                                       
|                                        |                                                     | Equity in income from consolidated entities                                         |             |   |         |   |          |   |         |   |          |    |         |   |         |   |             |   |              |    |      |   |         |     |         |   |         |   | 34,974  |   |         |       |        |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before minority interests, income
tax benefit, loss on sale of assets |             |   | 1,311    |   |          |   | 375      |   |          |    | 237      |   |         |   | 166          |   |              |    | 552   |   |         |     | 4,112    |   |         |   | (58,834 | ) |         |       | 3,590   |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Minority interests                                                                  |             |   |         |   |          |   |         |   |          |    |         |   |         |   |             |   |              |    |      |   |         |     |         |   |         |   |        |   |         |       | (3      | )
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before income tax benefit, loss on                                    |             |   |         |   |          |   |         |   |          |    |         |   |         |   |             |   |              |    |      |   |         |     |         |   |         |   |        |   |         |       |        |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | sale of assets                                                                      |             |   | 1,311    |   |          |   | 375      |   |          |    | 237      |   |         |   | 166          |   |              |    | 552   |   |         |     | 4,112    |   |         |   | (58,834 | ) |         |       | 3,593   |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income tax benefit                                                                  |             |   |         |   |          |   |         |   |          |    |         |   |         |   |             |   |              |    |      |   |         |     |         |   |         |   |        |   |         |       | 90      |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before loss on sale of assets                                         |             |   | 1,311    |   |          |   | 375      |   |          |    | 237      |   |         |   | 166          |   |              |    | 552   |   |         |     | 4,112    |   |         |   | (58,834 | ) |         |       | 3,503   |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on sale of assets, net of tax effect                                           |             |   |         |   |          |   |         |   |          |    |         |   |         |   |             |   |              |    |      |   |         |     |         |   |         |   |        |   |         |       |        |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Extraordinary item, net of tax effect                                               |             |   |         |   |          |   |         |   |          |    |         |   |         |   |             |   |              |    |      |   |         |     |         |   |         |   |        |   |         |       |        |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Net income (loss)                                                                   |             |   | 1,311    |   |          |   | 375      |   |          |    | 237      |   |         |   | 166          |   |              |    | 552   |   |         |     | 4,112    |   |         |   | (34,974 | ) |         |       | 3,503   |  
|                                        |                                                     |                                                                                    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Six months ended June 30, 2002
(in thousands)

|                                        |                             |                                                     |                                                  |                                     |       |             |        |           |       |          |        |         |   |          |   |          |   |          |     |          |   |     |     |     |   |     |       |       |   |     |     |   |   |   |   |  |  |  |  | 
|--------------------------------------- | --------------------------- | --------------------------------------------------- | ------------------------------------------------ | ----------------------------------- | ----- | ----------- | ------ | --------- | ----- | -------- | ------ | ------- | - | -------- | - | -------- | - | -------- | --- | -------- | - | --- | --- | --- | - | --- | ----- | ----- | - | --- | --- | - | - | - | - |  |  |  |  | 
|                                        |                             |                                                     |                                                  |                                     |       | MeriStar    |        | Non-      |       | MeriStar |        | AGH     |   | MeriStar |   | MeriStar |   | MeriStar |     | MeriStar |   |     |     |    
|                                        |                             |                                                     |                                                  |                                     |       | Hospitality |        | Guarantor |       | Sub 7C,  |        | Upreit, |   | Sub 5N   |   | Sub 8A,  |   | Sub 8F,  |     | Sub 8G,  |   |     |     |    
|Revenue:                                |                             | OP, L.P.                                            |                                                  | Subsidiaries                        |       | LLC         |        | LLC       |       | LLC      |        | LLC     |   | L.P.     |   | LLC      |   |          |     |         
|                                        |                             |                                                    
|                                        | Participating lease revenue |                                                     |                                                  |                                    |       |             |        | 70,137    |       |          |        |        |   |          |   |         |   |          |     | 563      |   |     |     | 689 |   |     |       | 1,141 |   |     |     |  |   |   |   |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                             | Hotel operations:                                   |                                                  |                                     |       |             |        |           |       |          |        |         |   |          |   |          |   |          |     |          |   |     |     |     |   |     |       |       |   |     |     |   |   |   |   |  |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Rooms                                            |                                     |       |            |        |           |       |         |        |         |   |         |   |          |   |         |     |          |   |     |     |     |   |    |       |       |   |    |     |   |   |  |   |  |  |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Food and beverage                                |                                     |       |            |        |           |       |         |        |         |   |         |   |          |   |         |     |          |   |     |     |     |   |    |       |       |   |    |     |   |   |  |   |  |  |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Other operating departments                      |                                     |       |            |        |           |       |         |        |         |   |         |   |          |   |         |     |          |   |     |     |     |   |    |       |       |   |    |     |   |   |  |   |  |  |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                             | Office rental and other revenues                    |                                                  |                                     | 3,538 |             |        |           | 3,531 |          |        |         |  |          |   |          |  |          |     |          |   |     |     |     |  |     |       |       |  |     |     |   |  |   |   |  |  | 
|                                        |                             |                                                    
|Total revenue                           |                             |                                                     | 3,538                                            |                                     |       |             | 73,668 |           |       |          |       |         |   |          |  |          |   |          | 563 |          |   |     | 689 |     |   |     | 1,141 |       |   |     |    |   |   |   |   | 
|                                        |                             |                                                    
|Hotel operating expenses by department: |                             |                                                     |                                                  |                                     |       |             |        |           |       |          |        |         |   |          |   |          |   |          |     |          |   |     |     |     |   |     |       |       |   |     |     |   |   |   |   | 
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Rooms                                            |                                     |       |            |        |           |       |         |        |         |   |         |   |          |   |         |     |          |   |    |     |     |   |    |       |       |   |    |     |   |   |  |   |  |  |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Food and beverage                                |                                     |       |            |        |           |       |         |        |         |   |         |   |          |   |         |     |          |   |    |     |     |   |    |       |       |   |    |     |   |   |  |   |  |  |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Other operating departments                      |                                     |       |            |        |           |       |         |        |         |   |         |   |          |   |         |     |          |   |    |     |     |   |    |       |       |   |    |     |   |   |  |   |  |  |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                             | Office rental, parking and other operating expenses |                                                  |                                     |      |             |        |           | 670   |          |        |         |  |          |   |          |  |          |     |          |  |     |     |     |  |     |       |       |  |     |     |   |  |   |   |  |  | 
|                                       
|                                       
|                                       
|                                       
|Undistributed operating expenses:       |                             |                                                     |                                                  |                                     |       |             |        |           |       |          |        |         |   |          |   |          |   |          |     |          |   |     |     |     |   |     |       |       |   |     |     |   |   |   |   | 
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Administrative and general                       |                                     |       | 5,150       |        |           |       | 16       |        |         |   |         |   |          |   |         |     |          |   |    |     |     |   |    |       |       |   | 1   |     |   |   |  |   |  |  |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Property operating costs                         |                                     |       | (454        | )      |           |       | (1       | )      |         |   |         |   |          |   |         |     |          |   |     |     |     |   |    |       |       |   |    |     |   |   |  |   |  |  |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Property taxes, insurance and other              |                                     |       | (1,932      | )      |           |       | 9,698    |        |         |   |         |   |          |   |         |     |          |   | 53  |     |     |   | 76  |       |       |   | 376 |     |   |   |  |   |  |  |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Depreciation and amortization                    |                                     |       | 5,160       |        |           |       | 26,859   |        |         |   |         |   |          |   |         |     |          |   | 66  |     |     |   | 112 |       |       |   | 226 |     |   |   |  |   |  |  |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Expense for non-hedging derivatives              |                                     |       | 3,079       |        |           |       |          |        |         |   |          |   |          |   |          |     |          |   |     |     |     |   |     |       |       |   |     |     |   |   |   |   |  |  |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Write down of investment in STS Hotel Net        |                                     |       |            |        |           |       |         |        |         |   |         |   |          |   |         |     |          |   |    |     |     |   |    |       |       |   |    |     |   |   |  |   |  |  |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Loss on asset impairment                         |                                     |       |            |        |           |       |         |        |         |   |         |   |          |   |         |     |          |   |    |     |     |   |    |       |       |   |    |     |   |   |  |   |  |  |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Write down of deferred costs                     |                                     |       | 1,529       |        |           |       |         |        |         |   |         |   |          |   |         |     |          |   |    |     |     |   |    |       |       |   |    |     |   |   |  |   |  |  |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives    |                                     |       | 4,735       |        |           |       |         |        |         |   |         |   |          |   |         |     |          |   |    |     |     |   |    |       |       |   |    |     |   |   |  |   |  |  |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | FelCor merger costs                              |                                     |       |            |        |           |       |         |        |         |   |         |   |          |   |         |     |          |   |    |     |     |   |    |       |       |   |    |     |   |   |  |   |  |  |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality |                                     |       |             |        |           |       |          |        |         |   |          |   |          |   |          |     |          |   |    |     |     |   |     |       |       |   |     |     |   |   |   |   |  |  |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     |                                                  | Corporation                         |       |             |       |           |       |          |       |         |   |          |  |          |   |          |    |          |   |     |    |     |   |     |      |       |   |     |    |   |   |   |  |  |  |  |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Restructuring charge                             |                                     |       |            |        |           |       |         |        |         |   |         |   |          |   |         |     |          |   |    |     |     |   |    |       |       |   |    |     |   |   |  |   |  |  |  | 
|                                        |                             |                                                    
|                                        |                             |                                                     | Total operating expenses                         |                                     |       | 17,267      |        |           |       | 37,242   |        |         |   |         |   |          |   |         |     |          |   | 120 |     |     |   | 188 |       |       |   | 603 |     |   |   |  |   |  |  |  | 
|                                        |                             |                                                    
|                                        |                             |                                                     | Net operating income                             |                                     |       | (13,730     | )      |           |       | 36,426   |        |         |   |         |   |          |   |         |     |          |   | 443 |     |     |   | 501 |       |       |   | 538 |     |   |   |  |   |  |  |  | 
|                                        |                             |                                                     | Interest expense, net                            |                                     |       | 52,076      |        |           |       | 13,932   |        |         |   |         |   |          |   |         |     |          |   | (3  | )   |     |   | (5  | )     |       |   | (4  | )   |   |   |  |   |  |  |  | 
|                                       
|                                        |                             |                                                     | Equity in income from consolidated entities      |                                     |       | (58,834     | )      |           |       |         |        |         |   |         |   |          |   |         |     |          |   |    |     |     |   |     |       |       |   |    |     |   |   |  |   |  |  |  | 
|                                        |                             |                                                    
|                                        |                             |                                                     | Income (loss) before minority interests, income  |                                     |       |             |        |           |       |          |        |         |   |          |   |          |   |          |     |          |   |     |     |     |   |     |       |       |   |     |     |   |   |   |   |  |  |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     |                                                  | tax benefit, loss on sale of assets |       |             | (6,972 | )         |       |          | 22,495 |         |   |          |  |          |   |          |    |          |   |     | 447 |     |   |     | 507   |       |   |     | 542 |   |   |   |  |  |  |  |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Minority interests                               |                                     |       | 8           |        |           |       |         |        |         |   |         |   |          |   |         |     |          |   |    |     |     |   |     |       |       |   |     |     |   |   |   |   |  |  |  | 
|                                        |                             |                                                    
|                                        |                             |                                                     | Income (loss) before income tax benefit, loss on |                                     |       |             |        |           |       |          |        |         |   |          |   |          |   |          |     |          |   |     |     |     |   |     |       |       |   |     |     |   |   |   |   |  |  |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     |                                                  | sale of assets                      |       |             | (6,980 | )         |       |          | 22,495 |         |   |          |  |          |   |          |    |          |   |     | 447 |     |   |     | 507   |       |   |     | 542 |   |   |   |  |  |  |  |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Income tax benefit                               |                                     |       | (159        | )      |           |       |         |        |         |   |         |   |          |   |         |     |          |   |     |     |     |   |    |       |       |   |    |     |   |   |  |   |  |  |  | 
|                                        |                             |                                                    
|                                        |                             |                                                     | Income (loss) before loss on sale of assets      |                                     |       | (6,821      | )      |           |       | 22,495   |        |         |   |         |   |          |   |         |     |          |   | 447 |     |     |   | 507 |       |       |   | 542 |     |   |   |  |   |  |  |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect        |                                     |       |            |        |           |       |         |        |         |   |         |   |          |   |         |     |          |   |     |     |     |   |    |       |       |   |    |     |   |   |  |   |  |  |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Extraordinary item, net of tax effect            |                                     |       |            |        |           |       |         |        |         |   |         |   |          |   |         |     |          |   |     |     |     |   |    |       |       |   |    |     |   |   |  |   |  |  |  | 
|                                        |                             |                                                    
|                                        |                             |                                                     | Net income (loss)                                |                                     |       | (6,821      | )      |           |       | 22,495   |        |         |   |         |   |          |   |         |     |          |   | 447 |     |     |   | 507 |       |       |   | 542 |     |   |   |  |   |  |  |  | 
|                                        |                             |                                                    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Six months ended June 30, 2002
(in thousands)

|                                        |                             |                                                     |                                                                                     |     |   |          |       |          |   |          |     |          |   |          |     |     |    |     |     |     |   |     |   | 
|--------------------------------------- | --------------------------- | --------------------------------------------------- | ----------------------------------------------------------------------------------- | --- | - | -------- | ----- | -------- | - | -------- | --- | -------- | - | -------- | --- | --- | -- | --- | --- | --- | - | --- | - | 
|                                        |                             |                                                     |                                                                                     |     |   | MeriStar |       | MeriStar |   | MeriStar |     | MeriStar |   | MeriStar
|                                        |                             |                                                     |                                                                                     |     |   | Sub 6H,  |       | Sub 8B,  |   | Sub 1C,  |     | Sub 8E,  |   | Sub 7F, 
|Revenue:                                |                             | L.P.                                                |                                                                                     | LLC |   | L.P.     |       | LLC      |   | LLC     
|                                        |                             |                                                    
|                                        | Participating lease revenue |                                                     |                                                                                     | 791 |   |          |       | 3,873    |   |          |     | 814      |   |          |     | 807 |    |     |     | 596 |  
|                                        |                             | Hotel operations:                                   |                                                                                     |     |   |          |       |          |   |          |     |          |   |          |     |     |    |     |     |     |   |    
|                                        |                             |                                                     | Rooms                                                                               |     |   |         |       |          |   |         |     |          |   |         |     |     |    |    |     |     |   |    |  
|                                        |                             |                                                     | Food and beverage                                                                   |     |   |         |       |          |   |         |     |          |   |         |     |     |    |    |     |     |   |    |  
|                                        |                             |                                                     | Other operating departments                                                         |     |   |         |       |          |   |         |     |          |   |         |     |     |    |    |     |     |   |    |  
|                                        |                             | Office rental and other revenues                    |                                                                                     |     |  |          |       |          |  |          |     |          |  |          |     |     | 15 |     |     |     |  |    
|                                        |                             |                                                    
|Total revenue                           |                             |                                                     | 791                                                                                 |     |   |          | 3,873 |          |   |          | 814 |          |   |          | 823 |     |    |     | 596 |    
|                                        |                             |                                                    
|Hotel operating expenses by department: |                             |                                                     |                                                                                     |     |   |          |       |          |   |          |     |          |   |          |     |     |    |     |     |    
|                                        |                             |                                                     | Rooms                                                                               |     |   |         |       |          |   |         |     |          |   |         |     |     |    |    |     |     |   |    |  
|                                        |                             |                                                     | Food and beverage                                                                   |     |   |         |       |          |   |         |     |          |   |         |     |     |    |    |     |     |   |    |  
|                                        |                             |                                                     | Other operating departments                                                         |     |   |         |       |          |   |         |     |          |   |         |     |     |    |    |     |     |   |    |  
|                                        |                             | Office rental, parking and other operating
expenses |                                                                                     |     |  |          |       |          |  |          |     |          |  |          |     |     |   |     |     |     |  |    
|Undistributed operating expenses:       |                             |                                                     |                                                                                     |     |   |          |       |          |   |          |     |          |   |          |     |     |    |     |     |    
|                                        |                             |                                                     | Administrative and general                                                          |     |   | 1        |       |          |   |         |     |          |   | 3        |     |     |    |    |     |     |   |    |  
|                                        |                             |                                                     | Property operating costs                                                            |     |   |         |       |          |   |         |     |          |   |         |     |     |    |    |     |     |   |    |  
|                                        |                             |                                                     | Property taxes, insurance and other                                                 |     |   | 49       |       |          |   | 716      |     |          |   | 400      |     |     |    | 91  |     |     |   | 70  |  
|                                        |                             |                                                     | Depreciation and amortization                                                       |     |   | 215      |       |          |   | 1,190    |     |          |   | 514      |     |     |    | 296 |     |     |   | 233 |  
|                                        |                             |                                                     | Expense for non-hedging derivatives                                                 |     |   |          |       |          |   |          |     |          |   |          |     |     |    |     |     |     |   |     |  
|                                        |                             |                                                     | Write down of investment in STS
Hotel Net                                           |     |   |         |       |          |   |         |     |          |   |         |     |     |    |    |     |     |   |    |  
|                                        |                             |                                                     | Loss on asset impairment                                                            |     |   |         |       |          |   |         |     |          |   |         |     |     |    |    |     |     |   |    |  
|                                        |                             |                                                     | Write down of deferred costs                                                        |     |   |         |       |          |   |         |     |          |   |         |     |     |    |    |     |     |   |    |  
|                                        |                             |                                                     | Loss on fair value of non-hedging
derivatives                                       |     |   |         |       |          |   |         |     |          |   |         |     |     |    |    |     |     |   |    |  
|                                        |                             |                                                     | FelCor merger costs                                                                 |     |   |         |       |          |   |         |     |          |   |         |     |     |    |    |     |     |   |    |  
|                                        |                             |                                                     | Costs to terminate leases with
Prime Hospitality
Corporation                        |     |   |         |       |          |   |         |     |          |   |         |     |     |    |    |     |     |   |    |  
|                                        |                             |                                                     | Restructuring charge                                                                |     |   |         |       |          |   |         |     |          |   |         |     |     |    |    |     |     |   |    |  
|                                        |                             |                                                    
|                                        |                             |                                                     | Total operating expenses                                                            |     |   | 264      |       |          |   | 1,906    |     |          |   | 917      |     |     |    | 387 |     |     |   | 303 |  
|                                        |                             |                                                    
|                                        |                             |                                                     | Net operating income                                                                |     |   | 527      |       |          |   | 1,967    |     |          |   | (103     | )   |     |    | 436 |     |     |   | 292 |  
|                                        |                             |                                                     | Interest expense, net                                                               |     |   | (1       | )     |          |   | (39      | )   |          |   | (21      | )   |     |    | (5  | )   |     |   | (5  | )
|                                       
|                                        |                             |                                                     | Equity in income from consolidated
entities                                         |     |   |         |       |          |   |         |     |          |   |         |     |     |    |    |     |     |   |    |  
|                                        |                             |                                                    
|                                        |                             |                                                     | Income (loss) before minority
interests, income
tax benefit, loss
on sale of assets |     |   | 528      |       |          |   | 2,006    |     |          |   | (81      | )   |     |    | 441 |     |     |   | 297 |  
|                                        |                             |                                                     | Minority interests                                                                  |     |   |         |       |          |   |         |     |          |   |         |     |     |    |    |     |     |   |    |  
|                                        |                             |                                                    
|                                        |                             |                                                     | Income (loss) before income tax
benefit, loss on
sale of assets                     |     |   | 528      |       |          |   | 2,006    |     |          |   | (81      | )   |     |    | 441 |     |     |   | 297 |  
|                                        |                             |                                                     | Income tax benefit                                                                  |     |   |         |       |          |   |         |     |          |   |         |     |     |    |    |     |     |   |    |  
|                                        |                             |                                                    
|                                        |                             |                                                     | Income (loss) before loss on sale
of assets                                         |     |   | 528      |       |          |   | 2,006    |     |          |   | (81      | )   |     |    | 441 |     |     |   | 297 |  
|                                        |                             |                                                     | Loss on sale of assets, net of tax
effect                                           |     |   |         |       |          |   |         |     |          |   |         |     |     |    |    |     |     |   |    |  
|                                        |                             |                                                     | Extraordinary item, net of tax
effect                                               |     |   |         |       |          |   |         |     |          |   |         |     |     |    |    |     |     |   |    |  
|                                        |                             |                                                    
|                                        |                             |                                                     | Net income (loss)                                                                   |     |   | 528      |       |          |   | 2,006    |     |          |   | (81      | )   |     |    | 441 |     |     |   | 297 |  
|                                        |                             |                                                    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.Condensed Consolidating Statement of Operations
Six months ended June 30, 2002
(in thousands)

|                                        |                             |                                                     |                                                                 |                                                                                     |   |          |     |          |   |          |     |          |   |          |       |          |    |     |       |       |   |       |       |     |   |     |    | 
|--------------------------------------- | --------------------------- | --------------------------------------------------- | --------------------------------------------------------------- | ----------------------------------------------------------------------------------- | - | -------- | --- | -------- | - | -------- | --- | -------- | - | -------- | ----- | -------- | -- | --- | ----- | ----- | - | ----- | ----- | --- | - | --- | -- | 
|                                        |                             |                                                     |                                                                 |                                                                                     |   | MeriStar |     | MeriStar |   | MeriStar |     | MeriStar |   | MeriStar |       | MeriStar
|                                        |                             |                                                     |                                                                 |                                                                                     |   | Sub 5L,  |     | Sub 3C,  |   | Sub 5R,  |     | Sub 6D,  |   | Sub 6E,  |       | Sub 4E, 
|Revenue:                                |                             | LLC                                                 |                                                                 | LLC                                                                                 |   | LLC      |     | LLC      |   | LLC      |     | L.P.    
|                                        |                             |                                                    
|                                        | Participating lease revenue |                                                     |                                                                 | 611                                                                                 |   |          |     | 989      |   |          |     |         |   |          |       | 1,153    |    |     |       | 2,926 |   |       |       | 699 |  
|                                        |                             | Hotel operations:                                   |                                                                 |                                                                                     |   |          |     |          |   |          |     |          |   |          |       |          |    |     |       |       |   |       |       |     |   |    
|                                        |                             |                                                     | Rooms                                                           |                                                                                     |   |         |     |          |   |         |     |          |   |         |       |          |    |    |       |       |   |      |       |     |   |    |   
|                                        |                             |                                                     | Food and beverage                                               |                                                                                     |   |         |     |          |   |         |     |          |   |         |       |          |    |    |       |       |   |      |       |     |   |    |   
|                                        |                             |                                                     | Other operating departments                                     |                                                                                     |   |         |     |          |   |         |     |          |   |         |       |          |    |    |       |       |   |      |       |     |   |    |   
|                                        |                             | Office rental and other revenues                    |                                                                 |                                                                                     |  |          |     |          |  |          |     |          |  |          |       |          | 10 |     |       |       |  |       |       |     | 7 |    
|Total revenue                           |                             |                                                     | 611                                                             |                                                                                     |   |          | 989 |          |   |          |    |          |   |          | 1,163 |          |    |     | 2,926 |       |   |       | 705   |    
|                                        |                             |                                                    
|Hotel operating expenses by department: |                             |                                                     |                                                                 |                                                                                     |   |          |     |          |   |          |     |          |   |          |       |          |    |     |       |       |   |       |       |    
|                                        |                             |                                                     | Rooms                                                           |                                                                                     |   |         |     |          |   |         |     |          |   |         |       |          |    |    |       |       |   |      |       |     |   |    |   
|                                        |                             |                                                     | Food and beverage                                               |                                                                                     |   |         |     |          |   |         |     |          |   |         |       |          |    |    |       |       |   |      |       |     |   |    |   
|                                        |                             |                                                     | Other operating departments                                     |                                                                                     |   |         |     |          |   |         |     |          |   |         |       |          |    |    |       |       |   |      |       |     |   |    |   
|                                        |                             | Office rental, parking and other operating
expenses |                                                                 |                                                                                     |  |          |     |          |  |          |     |          |  |          |       |          |   |     |       |       |  |       |       |     |  |    
|Undistributed operating expenses:       |                             |                                                     |                                                                 |                                                                                     |   |          |     |          |   |          |     |          |   |          |       |          |    |     |       |       |   |       |       |    
|                                        |                             |                                                     | Administrative and general                                      |                                                                                     |   |         |     |          |   |         |     |          |   |         |       |          |    |    |       |       |   |      |       |     |   |    |   
|                                        |                             |                                                     | Property operating costs                                        |                                                                                     |   |         |     |          |   |         |     |          |   |         |       |          |    |    |       |       |   |      |       |     |   |    |   
|                                        |                             |                                                     | Property taxes, insurance and other                             |                                                                                     |   | 60       |     |          |   | 226      |     |          |   |         |       |          |    | 90  |       |       |   | 415   |       |     |   | 195 |   
|                                        |                             |                                                     | Depreciation and amortization                                   |                                                                                     |   | 67       |     |          |   | 353      |     |          |   |         |       |          |    | 266 |       |       |   | 849   |       |     |   | 459 |   
|                                        |                             |                                                     | Expense for non-hedging derivatives                             |                                                                                     |   |          |     |          |   |          |     |          |   |          |       |          |    |     |       |       |   |       |       |     |   |     |   
|                                        |                             |                                                     | Write down of investment in STS Hotel Net                       |                                                                                     |   |         |     |          |   |         |     |          |   |         |       |          |    |    |       |       |   |      |       |     |   |    |   
|                                        |                             |                                                     | Loss on asset impairment                                        |                                                                                     |   |         |     |          |   |         |     |          |   |         |       |          |    |    |       |       |   |      |       |     |   |    |   
|                                        |                             |                                                     | Write down of deferred costs                                    |                                                                                     |   |         |     |          |   |         |     |          |   |         |       |          |    |    |       |       |   |      |       |     |   |    |   
|                                        |                             |                                                     | Loss on fair value of non-hedging
derivatives                   |                                                                                     |   |         |     |          |   |         |     |          |   |         |       |          |    |    |       |       |   |      |       |     |   |    |   
|                                        |                             |                                                     | FelCor merger costs                                             |                                                                                     |   |         |     |          |   |         |     |          |   |         |       |          |    |    |       |       |   |      |       |     |   |    |   
|                                        |                             |                                                     | Costs to terminate leases with
Prime Hospitality
Corporation    |                                                                                     |   |         |     |          |   |         |     |          |   |         |       |          |    |    |       |       |   |      |       |     |   |    |   
|                                        |                             |                                                     | Restructuring charge                                            |                                                                                     |   |         |     |          |   |         |     |          |   |         |       |          |    |    |       |       |   |      |       |     |   |    |   
|                                        |                             |                                                    
|                                        |                             |                                                     | Total operating expenses                                        |                                                                                     |   | 126      |     |          |   | 579      |     |          |   |         |       |          |    | 356 |       |       |   | 1,265 |       |     |   | 654 |   
|                                        |                             |                                                    
|                                        |                             |                                                     | Net operating income                                            |                                                                                     |   | 485      |     |          |   | 410      |     |          |   |         |       |          |    | 806 |       |       |   | 1,661 |       |     |   | 51  |   
|                                        |                             |                                                     | Interest expense, net                                           |                                                                                     |   | (4       | )   |          |   | (10      | )   |          |   |         |       |          |    | (13 | )     |       |   | (28   | )     |     |   | (13 | ) 
|                                        |                             |                                                     | Equity in income from consolidated entities                     |                                                                                     |   |         |     |          |   |         |     |          |   |         |       |          |    |    |       |       |   |      |       |     |   |    |   
|                                        |                             |                                                    
|                                        |                             |                                                     |                                                                 | Income (loss)
before minority
interests, income
tax benefit, loss
on sale of assets |   |          | 489 |          |   |          | 420 |          |   |          |      |          |    |     | 820   |       |   |       | 1,689 |     |   |     | 64 | 
|                                        |                             |                                                     | Minority interests                                              |                                                                                     |   |         |     |          |   |         |     |          |   |         |       |          |    |    |       |       |   |      |       |     |   |    |   
|                                        |                             |                                                    
|                                        |                             |                                                     | Income (loss) before income tax
benefit, loss on sale of assets |                                                                                     |   | 489      |     |          |   | 420      |     |          |   |         |       |          |    | 820 |       |       |   | 1,689 |       |     |   | 64  |   
|                                        |                             |                                                     | Income tax benefit                                              |                                                                                     |   |         |     |          |   |         |     |          |   |         |       |          |    |    |       |       |   |      |       |     |   |    |   
|                                        |                             |                                                    
|                                        |                             |                                                     | Income (loss) before loss on sale
of assets                     |                                                                                     |   | 489      |     |          |   | 420      |     |          |   |         |       |          |    | 820 |       |       |   | 1,689 |       |     |   | 64  |   
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect                       |                                                                                     |   |         |     |          |   |         |     |          |   |         |       |          |    |    |       |       |   |      |       |     |   |    |   
|                                        |                             |                                                     | Extraordinary item, net of tax effect                           |                                                                                     |   |         |     |          |   |         |     |          |   |         |       |          |    |    |       |       |   |      |       |     |   |    |   
|                                        |                             |                                                    
|                                        |                             |                                                     | Net income (loss)                                               |                                                                                     |   | 489      |     |          |   | 420      |     |          |   |         |       |          |    | 820 |       |       |   | 1,689 |       |     |   | 64  |   
|                                        |                             |                                                    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Six months ended June 30, 2002
(in thousands)

|                                        |                             |                                                     |                                                                                     |                |     |          |       |          |   |          |       |          |   |          |     |          |   |          |     |          |   |          |     |     |   |     |     |     |   |     |       |       |   |     |     |     |   |     |     | 
|--------------------------------------- | --------------------------- | --------------------------------------------------- | ----------------------------------------------------------------------------------- | -------------- | --- | -------- | ----- | -------- | - | -------- | ----- | -------- | - | -------- | --- | -------- | - | -------- | --- | -------- | - | -------- | --- | --- | - | --- | --- | --- | - | --- | ----- | ----- | - | --- | --- | --- | - | --- | --- | 
|                                        |                             |                                                     |                                                                                     |                |     | MeriStar |       | MeriStar |   | MeriStar |       | MeriStar |   | MeriStar |     | MeriStar |   | MeriStar |     | MeriStar |   | MeriStar
|                                        |                             |                                                     |                                                                                     |                |     | Sub 1B,  |       | Sub 5F,  |   | Sub 6G,  |       | Sub 8C,  |   | Sub 4C,  |     | Sub 4H,  |   | Sub 7E,  |     | Sub 3D,  |   | Sub 1A, 
|Revenue:                                |                             | LLC                                                 |                                                                                     | L.P.           |     | LLC      |       | LLC      |   | L.P      |       | L.P.     |   | LLC      |     | LLC      |   | LLC     
|                                        |                             |                                                    
|                                        | Participating lease revenue |                                                     |                                                                                     | 1,185          |     |          |       | 1,531    |   |          |       | 1,376    |   |          |     | 973      |   |          |     | 559      |   |          |     | 349 |   |     |     | 717 |   |     |       | 1,227 |   |     |     | 871 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             | Hotel operations:                                   |                                                                                     |                |     |          |       |          |   |          |       |          |   |          |     |          |   |          |     |          |   |          |     |     |   |     |     |     |   |     |       |       |   |     |     |     |   |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Rooms                                                                               |                |     |         |       |          |   |         |       |          |   |         |     |          |   |         |     |          |   |         |     |     |   |    |     |     |   |    |       |       |   |    |     |     |   |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Food and beverage                                                                   |                |     |         |       |          |   |         |       |          |   |         |     |          |   |         |     |          |   |         |     |     |   |    |     |     |   |    |       |       |   |    |     |     |   |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Other operating departments                                                         |                |     |         |       |          |   |         |       |          |   |         |     |          |   |         |     |          |   |         |     |     |   |    |     |     |   |    |       |       |   |    |     |     |   |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             | Office rental and other revenues                    |                                                                                     |                | 569 |          |       |          |  |          |       |          |  |          |     |          | 2 |          |     |          |  |          |     |     |  |     |     |     |  |     |       |       |  |     |     |     |  |    
|                                        |                             |                                                    
|Total revenue                           |                             |                                                     | 1,754                                                                               |                |     |          | 1,531 |          |   |          | 1,376 |          |   |          | 975 |          |   |          | 559 |          |   |          | 349 |     |   |     | 717 |     |   |     | 1,227 |       |   |     | 871 |    
|                                        |                             |                                                    
|Hotel operating expenses by department: |                             |                                                     |                                                                                     |                |     |          |       |          |   |          |       |          |   |          |     |          |   |          |     |          |   |          |     |     |   |     |     |     |   |     |       |       |   |     |     |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Rooms                                                                               |                |     |         |       |          |   |         |       |          |   |         |     |          |   |         |     |          |   |         |     |     |   |    |     |     |   |    |       |       |   |    |     |     |   |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Food and beverage                                                                   |                |     |         |       |          |   |         |       |          |   |         |     |          |   |         |     |          |   |         |     |     |   |    |     |     |   |    |       |       |   |    |     |     |   |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Other operating departments                                                         |                |     |         |       |          |   |         |       |          |   |         |     |          |   |         |     |          |   |         |     |     |   |    |     |     |   |    |       |       |   |    |     |     |   |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             | Office rental, parking and other operating expenses |                                                                                     |                |    |          |       |          |  |          |       |          |  |          |     |          |  |          |     |          |  |          |     |     |  |     |     |     |  |     |       |       |  |     |     |     |  |    
|                                       
|                                       
|                                       
|                                       
|Undistributed operating expenses:       |                             |                                                     |                                                                                     |                |     |          |       |          |   |          |       |          |   |          |     |          |   |          |     |          |   |          |     |     |   |     |     |     |   |     |       |       |   |     |     |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Administrative and general                                                          |                |     |         |       |          |   | 1        |       |          |   |         |     |          |   | (1       | )   |          |   |         |     |     |   |    |     |     |   |    |       |       |   |    |     |     |   |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Property operating costs                                                            |                |     |         |       |          |   |         |       |          |   |         |     |          |   |         |     |          |   |         |     |     |   |    |     |     |   |    |       |       |   |    |     |     |   |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Property taxes, insurance and other                                                 |                |     | 79       |       |          |   | 170      |       |          |   | 152      |     |          |   | 299      |     |          |   | 202      |     |     |   | 94  |     |     |   | 79  |       |       |   | 81  |     |     |   | 163 |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Depreciation and amortization                                                       |                |     | 316      |       |          |   | 528      |       |          |   | 418      |     |          |   | 692      |     |          |   | 283      |     |     |   | 270 |     |     |   | 315 |       |       |   | 451 |     |     |   | 232 |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Expense for non-hedging derivatives                                                 |                |     |          |       |          |   |          |       |          |   |          |     |          |   |          |     |          |   |          |     |     |   |     |     |     |   |     |       |       |   |     |     |     |   |     |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Write down of investment in STS Hotel Net                                           |                |     |         |       |          |   |         |       |          |   |         |     |          |   |         |     |          |   |         |     |     |   |    |     |     |   |    |       |       |   |    |     |     |   |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Loss on asset impairment                                                            |                |     |         |       |          |   |         |       |          |   |         |     |          |   |         |     |          |   |         |     |     |   |    |     |     |   |    |       |       |   |    |     |     |   |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Write down of deferred costs                                                        |                |     |         |       |          |   |         |       |          |   |         |     |          |   |         |     |          |   |         |     |     |   |    |     |     |   |    |       |       |   |    |     |     |   |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives                                       |                |     |         |       |          |   |         |       |          |   |         |     |          |   |         |     |          |   |         |     |     |   |    |     |     |   |    |       |       |   |    |     |     |   |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | FelCor merger costs                                                                 |                |     |         |       |          |   |         |       |          |   |         |     |          |   |         |     |          |   |         |     |     |   |    |     |     |   |    |       |       |   |    |     |     |   |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality                                    |                |     |          |       |          |   |          |       |          |   |          |     |          |   |          |     |          |   |          |     |     |   |     |     |     |   |     |       |       |   |     |     |     |   |     |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     |                                                                                     | Corporation    |     |          |      |          |   |          |      |          |   |          |    |          |   |          |    |          |   |          |    |     |   |     |    |     |   |     |      |       |   |     |    |     |   |     |    | 
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Restructuring charge                                                                |                |     |         |       |          |   |         |       |          |   |         |     |          |   |         |     |          |   |         |     |     |   |    |     |     |   |    |       |       |   |    |     |     |   |    |    
|                                        |                             |                                                    
|                                        |                             |                                                     | Total operating expenses                                                            |                |     | 395      |       |          |   | 699      |       |          |   | 570      |     |          |   | 991      |     |          |   | 485      |     |     |   | 364 |     |     |   | 394 |       |       |   | 532 |     |     |   | 395 |    
|                                        |                             |                                                    
|                                        |                             |                                                     | Net operating income                                                                |                |     | 1,359    |       |          |   | 832      |       |          |   | 806      |     |          |   | (15      | )   |          |   | 74       |     |     |   | (15 | )   |     |   | 322 |       |       |   | 696 |     |     |   | 476 |    
|                                        |                             |                                                     | Interest expense, net                                                               |                |     | (8       | )     |          |   | (17      | )     |          |   | (22      | )   |          |   | (21      | )   |          |   | (18      | )   |     |   | (4  | )   |     |   | (9  | )     |       |   | (20 | )   |     |   | (9  | )  
|                                       
|                                        |                             |                                                     | Equity in income from consolidated entities                                         |                |     |         |       |          |   |         |       |          |   |         |     |          |   |         |     |          |   |         |     |     |   |    |     |     |   |    |       |       |   |    |     |     |   |    |    
|                                        |                             |                                                    
|                                        |                             |                                                     | Income (loss) before minority interests, income
tax benefit, loss on sale of assets |                |     | 1,367    |       |          |   | 849      |       |          |   | 827      |     |          |   | 6        |     |          |   | 92       |     |     |   | (11 | )   |     |   | 332 |       |       |   | 716 |     |     |   | 485 |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Minority interests                                                                  |                |     |         |       |          |   |         |       |          |   |         |     |          |   |         |     |          |   |         |     |     |   |    |     |     |   |    |       |       |   |    |     |     |   |    |    
|                                        |                             |                                                    
|                                        |                             |                                                     | Income (loss) before income tax benefit, loss on                                    |                |     |          |       |          |   |          |       |          |   |          |     |          |   |          |     |          |   |          |     |     |   |     |     |     |   |     |       |       |   |     |     |     |   |     |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     |                                                                                     | sale of assets |     |          | 1,367 |          |   |          | 849   |          |   |          | 827 |          |   |          | 6   |          |   |          | 92  |     |   |     | (11 | )   |   |     | 332   |       |   |     | 716 |     |   |     | 485 | 
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Income tax benefit                                                                  |                |     |         |       |          |   |         |       |          |   |         |     |          |   |         |     |          |   |         |     |     |   |    |     |     |   |    |       |       |   |    |     |     |   |    |    
|                                        |                             |                                                    
|                                        |                             |                                                     | Income (loss) before loss on sale of assets                                         |                |     | 1,367    |       |          |   | 849      |       |          |   | 827      |     |          |   | 6        |     |          |   | 92       |     |     |   | (11 | )   |     |   | 332 |       |       |   | 716 |     |     |   | 485 |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect                                           |                |     |         |       |          |   |         |       |          |   |         |     |          |   |         |     |          |   |         |     |     |   |    |     |     |   |    |       |       |   |    |     |     |   |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Extraordinary item, net of tax effect                                               |                |     |         |       |          |   |         |       |          |   |         |     |          |   |         |     |          |   |         |     |     |   |    |     |     |   |    |       |       |   |    |     |     |   |    |    
|                                        |                             |                                                    
|                                        |                             |                                                     | Net income (loss)                                                                   |                |     | 1,367    |       |          |   | 849      |       |          |   | 827      |     |          |   | 6        |     |          |   | 92       |     |     |   | (11 | )   |     |   | 332 |       |       |   | 716 |     |     |   | 485 |    
|                                        |                             |                                                    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Six months ended June 30, 2002
(in thousands)

|                                                    |                                                                                     |     |       |          |   |          |     |          |   |          |       |          |   |          |     |          |   |          |     |     |   |  |     |     |   |  |     |     |   |  |     |      |   | 
|--------------------------------------------------- | ----------------------------------------------------------------------------------- | --- | ----- | -------- | - | -------- | --- | -------- | - | -------- | ----- | -------- | - | -------- | --- | -------- | - | -------- | --- | --- | - |  | --- | --- | - |  | --- | --- | - |  | --- | ---- | - | 
|                                                    |                                                                                     |     |       |          |   |          |     |          |   |          |       |          |   |          |     |          |   |          |     |     |   |  |     |     |   |  |     |     |   |  |     |     
|                                                    |                                                                                     |     |       | MeriStar |   | MeriStar |     | MeriStar |   | MeriStar |       | MeriStar |   | MeriStar |     | MeriStar |   | MeriStar
|                                                    |                                                                                     |     |       | Sub 5E,  |   | Sub 7A,  |     | Sub 6K,  |   | Sub 2B,  |       | Sub 3A,  |   | Sub 4A,  |     | Sub 4D,  |   | Sub 2A, 
|Revenue:                                            |                                                                                     | LLC |       | LLC      |   | LLC      |     | LLC      |   | LLC      |       | LLC      |   | LLC      |     | LLC     
|                                                    |                                                                                     |    
|Participating lease revenue                         |                                                                                     |     | 2,904 |          |   |          | 625 |          |   |          | 2,045 |          |   |          | 271 |          |   |          | 265 |     |   |  | 497 |     |   |  | 233 |     |   |  | 294 |     
|                                                   
|                                                   
|                                                   
|                                                   
|Hotel operations:                                   |                                                                                     |     |       |          |   |          |     |          |   |          |       |          |   |          |     |          |   |          |     |     |   |  |     |     |   |  |     |     |   |  |     |     
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Rooms                                                                               |     |       |         |   |          |     |         |   |          |       |         |   |          |     |         |   |          |     |    |   |  |     |    |   |  |     |    |   |  |     |     |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Food and beverage                                                                   |     |       |         |   |          |     |         |   |          |       |         |   |          |     |         |   |          |     |    |   |  |     |    |   |  |     |    |   |  |     |     |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Other operating departments                                                         |     |       |         |   |          |     |         |   |          |       |         |   |          |     |         |   |          |     |    |   |  |     |    |   |  |     |    |   |  |     |     |  
|                                                   
|                                                   
|                                                   
|                                                   
|Office rental and other revenues                    |                                                                                     |     |      |          |   |          |    |          |   |          |      |          |   |          |    |          |   |          |    |     |   |  |    |     |   |  |    |     |   |  |    |     
|                                                    |                                                                                     |    
|Hotel
operating expenses by department:             |                                                                                     |     | 2,904 |          |   |          | 625 |          |   |          | 2,045 |          |   |          | 271 |          |   |          | 265 |     |   |  | 497 |     |   |  | 233 |     |   |  | 294 |     
|                                                    |                                                                                     |    
|                                                    | Rooms                                                                               |     |       |         |   |          |     |         |   |          |       |         |   |          |     |         |   |          |     |    |   |  |     |    |   |  |     |    |   |  |     |     |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Food and beverage                                                                   |     |       |         |   |          |     |         |   |          |       |         |   |          |     |         |   |          |     |    |   |  |     |    |   |  |     |    |   |  |     |     |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Other operating departments                                                         |     |       |         |   |          |     |         |   |          |       |         |   |          |     |         |   |          |     |    |   |  |     |    |   |  |     |    |   |  |     |     |  
|                                                   
|                                                   
|                                                   
|                                                   
|Office rental, parking and other operating expenses |                                                                                     |     |      |          |   |          |    |          |   |          |      |          |   |          |    |          |   |          |    |     |   |  |    |     |   |  |    |     |   |  |    |     
|                                                   
|                                                   
|                                                   
|                                                   
|Undistributed
operating expenses:                   |                                                                                     |     |       |          |   |          |     |          |   |          |       |          |   |          |     |          |   |          |     |     |   |  |     |     |   |  |     |     |   |  |     |     
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Administrative and general                                                          |     |       |         |   |          |     | 1        |   |          |       |         |   |          |     |         |   |          |     |    |   |  |     |    |   |  |     |    |   |  |     | 2    |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Property operating costs                                                            |     |       |         |   |          |     |         |   |          |       |         |   |          |     |         |   |          |     |    |   |  |     |    |   |  |     |    |   |  |     |     |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Property taxes, insurance and other                                                 |     |       | 195      |   |          |     | 111      |   |          |       | 241      |   |          |     | 71       |   |          |     | 55  |   |  |     | 121 |   |  |     | 86  |   |  |     | 75   |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Depreciation and amortization                                                       |     |       | 969      |   |          |     | 208      |   |          |       | 372      |   |          |     | 212      |   |          |     | 133 |   |  |     |    |   |  |     | 157 |   |  |     | 159  |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Expense for non-hedging derivatives                                                 |     |       |          |   |          |     |          |   |          |       |          |   |          |     |          |   |          |     |     |   |  |     |     |   |  |     |     |   |  |     |      |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Write down of investment in STS Hotel Net                                           |     |       |         |   |          |     |         |   |          |       |         |   |          |     |         |   |          |     |    |   |  |     |    |   |  |     |    |   |  |     |     |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Loss on asset impairment                                                            |     |       |         |   |          |     |         |   |          |       |         |   |          |     |         |   |          |     |    |   |  |     |    |   |  |     |    |   |  |     |     |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Write down of deferred costs                                                        |     |       |         |   |          |     |         |   |          |       |         |   |          |     |         |   |          |     |    |   |  |     |    |   |  |     |    |   |  |     |     |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Loss on fair value of non-hedging derivatives                                       |     |       |         |   |          |     |         |   |          |       |         |   |          |     |         |   |          |     |    |   |  |     |    |   |  |     |    |   |  |     |     |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | FelCor merger costs                                                                 |     |       |         |   |          |     |         |   |          |       |         |   |          |     |         |   |          |     |    |   |  |     |    |   |  |     |    |   |  |     |     |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Costs
to terminate leases with Prime Hospitality Corporation                        |     |       |         |   |          |     |         |   |          |       |         |   |          |     |         |   |          |     |    |   |  |     |    |   |  |     |    |   |  |     |     |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Restructuring charge                                                                |     |       |         |   |          |     |         |   |          |       |         |   |          |     |         |   |          |     |    |   |  |     |    |   |  |     |    |   |  |     |     |  
|                                                    |                                                                                     |    
|                                                    | Total operating expenses                                                            |     |       | 1,164    |   |          |     | 320      |   |          |       | 613      |   |          |     | 283      |   |          |     | 188 |   |  |     | 121 |   |  |     | 243 |   |  |     | 237  |  
|                                                    |                                                                                     |    
|                                                    | Net operating income                                                                |     |       | 1,740    |   |          |     | 304      |   |          |       | 1,432    |   |          |     | (11      | ) |          |     | 78  |   |  |     | 375 |   |  |     | (10 | ) |  |     | 57   |  
|                                                    | Interest expense, net                                                               |     |       | (16      | ) |          |     | (16      | ) |          |       | (18      | ) |          |     | 194      |   |          |     | (18 | ) |  |     | (17 | ) |  |     | (20 | ) |  |     | 341  |  
|                                                   
|                                                    | Equity in income from consolidated entities                                         |     |       |         |   |          |     |         |   |          |       |         |   |          |     |         |   |          |     |    |   |  |     |    |   |  |     |    |   |  |     |     |  
|                                                    |                                                                                     |    
|                                                    | Income
(loss) before minority interests, income tax benefit, loss on sale of assets |     |       | 1,757    |   |          |     | 320      |   |          |       | 1,450    |   |          |     | (205     | ) |          |     | 96  |   |  |     | 392 |   |  |     | 10  |   |  |     | (283 | )
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Minority interests                                                                  |     |       |         |   |          |     |         |   |          |       |         |   |          |     |         |   |          |     |    |   |  |     |    |   |  |     |    |   |  |     |     |  
|                                                    |                                                                                     |    
|                                                    | Income
(loss) before income tax benefit, loss on sale of assets                     |     |       | 1,757    |   |          |     | 320      |   |          |       | 1,450    |   |          |     | (205     | ) |          |     | 96  |   |  |     | 392 |   |  |     | 10  |   |  |     | (283 | )
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Income tax benefit                                                                  |     |       |         |   |          |     |         |   |          |       |         |   |          |     |         |   |          |     |    |   |  |     |    |   |  |     |    |   |  |     |     |  
|                                                    |                                                                                     |    
|                                                    | Income (loss) before loss on sale of assets                                         |     |       | 1,757    |   |          |     | 320      |   |          |       | 1,450    |   |          |     | (205     | ) |          |     | 96  |   |  |     | 392 |   |  |     | 10  |   |  |     | (283 | )
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Loss on sale of assets, net of tax effect                                           |     |       |         |   |          |     |         |   |          |       |         |   |          |     |         |   |          |     |    |   |  |     |    |   |  |     |    |   |  |     |     |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Extraordinary item, net of tax effect                                               |     |       |         |   |          |     |         |   |          |       |         |   |          |     |         |   |          |     |    |   |  |     |    |   |  |     |    |   |  |     |     |  
|                                                    |                                                                                     |    
|                                                    | Net income (loss)                                                                   |     |       | 1,757    |   |          |     | 320      |   |          |       | 1,450    |   |          |     | (205     | ) |          |     | 96  |   |  |     | 392 |   |  |     | 10  |   |  |     | (283 | )
|                                                    |                                                                                     |    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Six months ended June 30, 2002
(in thousands)

|                                        |                             |                                                     |                                                                                     |             |   |          |     |         |   |          |     |          |   |          |       |          |   |          |       |          |     |          |     |     |   |      |       |       |     |       |     |     |   |      |     |     |   |     |   | 
|--------------------------------------- | --------------------------- | --------------------------------------------------- | ----------------------------------------------------------------------------------- | ----------- | - | -------- | --- | ------- | - | -------- | --- | -------- | - | -------- | ----- | -------- | - | -------- | ----- | -------- | --- | -------- | --- | --- | - | ---- | ----- | ----- | --- | ----- | --- | --- | - | ---- | --- | --- | - | --- | - | 
|                                        |                             |                                                     |                                                                                     |             |   | MeriStar |     | MDV     |   | MeriStar |     | MeriStar |   | MeriStar |       | MeriStar |   | MeriStar |       | MeriStar |     | MeriStar
|                                        |                             |                                                     |                                                                                     |             |   | Sub 6L,  |     | Limited |   | Sub 5C,  |     | Sub 6J,  |   | Sub 1D,  |       | Sub 7B,  |   | Sub 7D,  |       | Sub 7G,  |     | Sub 6B, 
|Revenue:                                |                             | LLC                                                 |                                                                                     | Partnership |   | LLC      |     | LLC     |   | L.P.     |     | L.P.     |   | LLC      |       | LLC      |   | LLC     
|                                        |                             |                                                    
|                                        | Participating lease revenue |                                                     |                                                                                     | 842         |   |          |     | 331     |   |          |     | 738      |   |          |       | 1,438    |   |          |       | 2,660    |     |          |     | 781 |   |      |       | 2,774 |     |       |     | 292 |   |      |     | 649 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             | Hotel operations:                                   |                                                                                     |             |   |          |     |         |   |          |     |          |   |          |       |          |   |          |       |          |     |          |     |     |   |      |       |       |     |       |     |     |   |      |     |     |   |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Rooms                                                                               |             |   |         |     |         |   |         |     |          |   |         |       |          |   |         |       |          |     |         |     |     |   |     |       |       |     |      |     |     |   |     |     |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Food and beverage                                                                   |             |   |         |     |         |   |         |     |          |   |         |       |          |   |         |       |          |     |         |     |     |   |     |       |       |     |      |     |     |   |     |     |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Other operating departments                                                         |             |   |         |     |         |   |         |     |          |   |         |       |          |   |         |       |          |     |         |     |     |   |     |       |       |     |      |     |     |   |     |     |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             | Office rental and other revenues                    |                                                                                     |             |  |          |     |         |  |          |     |          |  |          |       |          |  |          |       |          | 215 |          |     |     |  |      |       |       | 672 |       |     |     |  |      |     |     |  |    
|                                        |                             |                                                    
|Total revenue                           |                             |                                                     | 842                                                                                 |             |   |          | 331 |         |   |          | 738 |          |   |          | 1,438 |          |   |          | 2,875 |          |     |          | 781 |     |   |      | 3,446 |       |     |       | 292 |     |   |      | 649 |    
|                                        |                             |                                                    
|Hotel operating expenses by department: |                             |                                                     |                                                                                     |             |   |          |     |         |   |          |     |          |   |          |       |          |   |          |       |          |     |          |     |     |   |      |       |       |     |       |     |     |   |      |     |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Rooms                                                                               |             |   |         |     |         |   |         |     |          |   |         |       |          |   |         |       |          |     |         |     |     |   |     |       |       |     |      |     |     |   |     |     |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Food and beverage                                                                   |             |   |         |     |         |   |         |     |          |   |         |       |          |   |         |       |          |     |         |     |     |   |     |       |       |     |      |     |     |   |     |     |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Other operating departments                                                         |             |   |         |     |         |   |         |     |          |   |         |       |          |   |         |       |          |     |         |     |     |   |     |       |       |     |      |     |     |   |     |     |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             | Office rental, parking and other operating expenses |                                                                                     |             |  |          |     |         |  |          |     |          |  |          |       |          |  |          |       |          | 65  |          |     |     |  |      |       |       | 682 |       |     |     |  |      |     |     |  |    
|                                       
|                                       
|                                       
|                                       
|Undistributed operating expenses:       |                             |                                                     |                                                                                     |             |   |          |     |         |   |          |     |          |   |          |       |          |   |          |       |          |     |          |     |     |   |      |       |       |     |       |     |     |   |      |     |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Administrative and general                                                          |             |   | 1        |     |         |   |         |     |          |   |         |       |          |   |         |       |          |     |         |     |     |   | 1    |       |       |     |      |     |     |   |     |     |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Property operating costs                                                            |             |   |         |     |         |   |         |     |          |   |         |       |          |   |         |       |          |     |         |     |     |   |     |       |       |     |      |     |     |   |     |     |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Property taxes, insurance and other                                                 |             |   | 98       |     |         |   | 65       |     |          |   | 208      |       |          |   | 93       |       |          |     | 546      |     |     |   | 444  |       |       |     | 1,067 |     |     |   | 120  |     |     |   | 116 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Depreciation and amortization                                                       |             |   | 445      |     |         |   | 68       |     |          |   | 298      |       |          |   | 322      |       |          |     | 1,118    |     |     |   | 463  |       |       |     | 832   |     |     |   | 378  |     |     |   | 227 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Expense for non-hedging derivatives                                                 |             |   |          |     |         |   |          |     |          |   |          |       |          |   |          |       |          |     |          |     |     |   |      |       |       |     |       |     |     |   |      |     |     |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Write down of investment in STS Hotel Net                                           |             |   |         |     |         |   |         |     |          |   |         |       |          |   |         |       |          |     |         |     |     |   |     |       |       |     |      |     |     |   |     |     |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Loss on asset impairment                                                            |             |   |         |     |         |   |         |     |          |   |         |       |          |   |         |       |          |     |         |     |     |   |     |       |       |     |      |     |     |   |     |     |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Write down of deferred costs                                                        |             |   |         |     |         |   |         |     |          |   |         |       |          |   |         |       |          |     |         |     |     |   |     |       |       |     |      |     |     |   |     |     |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives                                       |             |   |         |     |         |   |         |     |          |   |         |       |          |   |         |       |          |     |         |     |     |   |     |       |       |     |      |     |     |   |     |     |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | FelCor merger costs                                                                 |             |   |         |     |         |   |         |     |          |   |         |       |          |   |         |       |          |     |         |     |     |   |     |       |       |     |      |     |     |   |     |     |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality Corporation                        |             |   |         |     |         |   |         |     |          |   |         |       |          |   |         |       |          |     |         |     |     |   |     |       |       |     |      |     |     |   |     |     |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Restructuring charge                                                                |             |   |         |     |         |   |         |     |          |   |         |       |          |   |         |       |          |     |         |     |     |   |     |       |       |     |      |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                    
|                                        |                             |                                                     | Total operating expenses                                                            |             |   | 544      |     |         |   | 132      |     |          |   | 507      |       |          |   | 415      |       |          |     | 1,729    |     |     |   | 908  |       |       |     | 2,581 |     |     |   | 498  |     |     |   | 343 |  
|                                        |                             |                                                    
|                                        |                             |                                                     | Net operating income                                                                |             |   | 298      |     |         |   | 199      |     |          |   | 232      |       |          |   | 1,023    |       |          |     | 1,145    |     |     |   | (126 | )     |       |     | 866   |     |     |   | (205 | )   |     |   | 306 |  
|                                        |                             |                                                     | Interest expense, net                                                               |             |   | (5       | )   |         |   | (2       | )   |          |   | (17      | )     |          |   | (19      | )     |          |     | (30      | )   |     |   | (8   | )     |       |     | (23   | )   |     |   | (12  | )   |     |   | (4  | )
|                                       
|                                        |                             |                                                     | Equity in income from consolidated entities                                         |             |   |         |     |         |   |         |     |          |   |         |       |          |   |         |       |          |     |         |     |     |   |     |       |       |     |      |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                    
|                                        |                             |                                                     | Income
(loss) before minority interests, income tax benefit, loss on sale of assets |             |   | 303      |     |         |   | 201      |     |          |   | 249      |       |          |   | 1,042    |       |          |     | 1,175    |     |     |   | (118 | )     |       |     | 889   |     |     |   | (193 | )   |     |   | 310 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Minority interests                                                                  |             |   |         |     |         |   |         |     |          |   |         |       |          |   |         |       |          |     |         |     |     |   |     |       |       |     |      |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Income
(loss) before income tax benefit, loss on sale of assets                     |             |   | 303      |     |         |   | 201      |     |          |   | 249      |       |          |   | 1,042    |       |          |     | 1,175    |     |     |   | (118 | )     |       |     | 889   |     |     |   | (193 | )   |     |   | 310 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Income tax benefit                                                                  |             |   |         |     |         |   |         |     |          |   |         |       |          |   |         |       |          |     |         |     |     |   |     |       |       |     |      |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                    
|                                        |                             |                                                     | Income (loss) before loss on sale of assets                                         |             |   | 303      |     |         |   | 201      |     |          |   | 249      |       |          |   | 1,042    |       |          |     | 1,175    |     |     |   | (118 | )     |       |     | 889   |     |     |   | (193 | )   |     |   | 310 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect                                           |             |   |         |     |         |   |         |     |          |   |         |       |          |   |         |       |          |     |         |     |     |   |     |       |       |     |      |     |     |   |     |     |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Extraordinary item, net of tax effect                                               |             |   |         |     |         |   |         |     |          |   |         |       |          |   |         |       |          |     |         |     |     |   |     |       |       |     |      |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                    
|                                        |                             |                                                     | Net income (loss)                                                                   |             |   | 303      |     |         |   | 201      |     |          |   | 249      |       |          |   | 1,042    |       |          |     | 1,175    |     |     |   | (118 | )     |       |     | 889   |     |     |   | (193 | )   |     |   | 310 |  
|                                        |                             |                                                    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Six months ended June 30, 2002
(in thousands)

|                                                    |                                                                                     |             |    |          |   |          |     |          |   |          |       |         |   |         |     |          |   |          |       |          |   |  |     |      |   |  |     |     |   |  |       |     |   | 
|--------------------------------------------------- | ----------------------------------------------------------------------------------- | ----------- | -- | -------- | - | -------- | --- | -------- | - | -------- | ----- | ------- | - | ------- | --- | -------- | - | -------- | ----- | -------- | - |  | --- | ---- | - |  | --- | --- | - |  | ----- | --- | - | 
|                                                    |                                                                                     |             |    | MeriStar |   | MeriStar |     | MeriStar |   | MeriStar |       |         |   |         |     | MeriStar |   | MeriStar |       | MeriStar
|                                                    |                                                                                     |             |    | Sub 4I,  |   | Sub 5D,  |     | Sub 5H,  |   | Sub 7H,  |       | AGH PSS |   | Sub 2D, |     | Sub 4F,  |   | Sub 5K, 
|Revenue:                                            |                                                                                     | L.P.        |    | LLC      |   | LLC      |     | LLC      |   | I, Inc.  |       | LLC     |   | L.P.    |     | LLC     
|                                                    |                                                                                     |            
|Participating lease revenue                         |                                                                                     |             | 39 |          |   |          | 992 |          |   |          | 1,970 |         |   |         | 629 |          |   |          | 1,403 |          |   |  | 597 |      |   |  | 934 |     |   |  | 1,379 |    
|                                                   
|                                                   
|                                                   
|                                                   
|Hotel operations:                                   |                                                                                     |             |    |          |   |          |     |          |   |          |       |         |   |         |     |          |   |          |       |          |   |  |     |      |   |  |     |     |   |  |       |    
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Rooms                                                                               |             |    |         |   |          |     |         |   |          |       |        |   |         |     |         |   |          |       |         |   |  |     |     |   |  |     |    |   |  |       |    |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Food and beverage                                                                   |             |    |         |   |          |     |         |   |          |       |        |   |         |     |         |   |          |       |         |   |  |     |     |   |  |     |    |   |  |       |    |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Other operating departments                                                         |             |    |         |   |          |     |         |   |          |       |        |   |         |     |         |   |          |       |         |   |  |     |     |   |  |     |    |   |  |       |    |  
|                                                   
|                                                   
|                                                   
|                                                   
|Office rental and other revenues                    |                                                                                     |             |   |          |   |          |    |          |   |          |      |         |   |         |    |          |   |          | 2     |          |   |  |    |      |   |  | 4   |     |   |  |      |    
|                                                    |                                                                                     |            
|Total
revenue                                       |                                                                                     |             | 39 |          |   |          | 992 |          |   |          | 1,970 |         |   |         | 629 |          |   |          | 1,405 |          |   |  | 597 |      |   |  | 938 |     |   |  | 1,379 |    
|                                                    |                                                                                     |            
|                                                   
|                                                   
|                                                   
|                                                   
|Hotel
operating expenses by department:             |                                                                                     |             |    |          |   |          |     |          |   |          |       |         |   |         |     |          |   |          |       |          |   |  |     |      |   |  |     |     |   |  |       |    
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Rooms                                                                               |             |    |         |   |          |     |         |   |          |       |        |   |         |     |         |   |          |       |         |   |  |     |     |   |  |     |    |   |  |       |    |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Food and beverage                                                                   |             |    |         |   |          |     |         |   |          |       |        |   |         |     |         |   |          |       |         |   |  |     |     |   |  |     |    |   |  |       |    |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Other operating departments                                                         |             |    |         |   |          |     |         |   |          |       |        |   |         |     |         |   |          |       |         |   |  |     |     |   |  |     |    |   |  |       |    |  
|                                                   
|                                                   
|                                                   
|                                                   
|Office rental, parking and other operating expenses |                                                                                     |             |   |          |   |          |    |          |   |          |      |         |   |         |    |          |   |          |      |          |   |  |    |      |   |  |    |     |   |  |      |    
|                                                   
|                                                   
|                                                   
|                                                   
|Undistributed
operating expenses:                   |                                                                                     |             |    |          |   |          |     |          |   |          |       |         |   |         |     |          |   |          |       |          |   |  |     |      |   |  |     |     |   |  |       |    
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Administrative and general                                                          |             |    |         |   |          |     |         |   |          |       |        |   |         |     |         |   |          |       |         |   |  |     |     |   |  |     |    |   |  |       |    |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Property operating costs                                                            |             |    |         |   |          |     |         |   |          |       |        |   |         |     |         |   |          |       |         |   |  |     |     |   |  |     |    |   |  |       |    |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Property taxes, insurance and other                                                 |             |    | 152      |   |          |     | 163      |   |          |       | 332     |   |         |     | 183      |   |          |       | 212      |   |  |     | 115  |   |  |     | 186 |   |  |       | 151 |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Depreciation and amortization                                                       |             |    | 243      |   |          |     | 724      |   |          |       | 986     |   |         |     | 290      |   |          |       |         |   |  |     | 237  |   |  |     | 560 |   |  |       | 594 |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Expense for non-hedging derivatives                                                 |             |    |          |   |          |     |          |   |          |       |         |   |         |     |          |   |          |       |          |   |  |     |      |   |  |     |     |   |  |       |     |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Write down of investment in STS Hotel Net                                           |             |    |         |   |          |     |         |   |          |       |        |   |         |     |         |   |          |       |         |   |  |     |     |   |  |     |    |   |  |       |    |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Loss on asset impairment                                                            |             |    |         |   |          |     |         |   |          |       |        |   |         |     |         |   |          |       |         |   |  |     |     |   |  |     |    |   |  |       |    |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Write down of deferred costs                                                        |             |    |         |   |          |     |         |   |          |       |        |   |         |     |         |   |          |       |         |   |  |     |     |   |  |     |    |   |  |       |    |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Loss on fair value of non-hedging derivatives                                       |             |    |         |   |          |     |         |   |          |       |        |   |         |     |         |   |          |       |         |   |  |     |     |   |  |     |    |   |  |       |    |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | FelCor merger costs                                                                 |             |    |         |   |          |     |         |   |          |       |        |   |         |     |         |   |          |       |         |   |  |     |     |   |  |     |    |   |  |       |    |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Costs to terminate leases with Prime Hospitality                                    |             |    |          |   |          |     |          |   |          |       |         |   |         |     |          |   |          |       |          |   |  |     |      |   |  |     |     |   |  |       |     |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    |                                                                                     | Corporation |    |          |  |          |     |          |  |          |       |         |  |         |     |          |  |          |       |          |  |  |     |      |  |  |     |     |  |  |       |     |  | 
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Restructuring charge                                                                |             |    |         |   |          |     |         |   |          |       |        |   |         |     |         |   |          |       |         |   |  |     |     |   |  |     |    |   |  |       |    |  
|                                                    |                                                                                     |            
|                                                    | Total operating expenses                                                            |             |    | 396      |   |          |     | 887      |   |          |       | 1,318   |   |         |     | 474      |   |          |       | 212      |   |  |     | 352  |   |  |     | 746 |   |  |       | 745 |  
|                                                    |                                                                                     |            
|                                                    | Net operating income                                                                |             |    | (357     | ) |          |     | 105      |   |          |       | 652     |   |         |     | 156      |   |          |       | 1,194    |   |  |     | 245  |   |  |     | 192 |   |  |       | 635 |  
|                                                    | Interest expense, net                                                               |             |    | (20      | ) |          |     | 779      |   |          |       | (40     | ) |         |     | (10      | ) |          |       | (22      | ) |  |     | 392  |   |  |     | (17 | ) |  |       | (50 | )
|                                                   
|                                                    | Equity in income from consolidated entities                                         |             |    |         |   |          |     |         |   |          |       |        |   |         |     |         |   |          |       |         |   |  |     |     |   |  |     |    |   |  |       |    |  
|                                                    |                                                                                     |            
|                                                    | Income (loss) before minority interests, income
tax benefit, loss on sale of assets |             |    | (337     | ) |          |     | (674     | ) |          |       | 692     |   |         |     | 166      |   |          |       | 1,215    |   |  |     | (147 | ) |  |     | 210 |   |  |       | 684 |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Minority interests                                                                  |             |    |         |   |          |     |         |   |          |       |        |   |         |     |         |   |          |       |         |   |  |     |     |   |  |     |    |   |  |       |    |  
|                                                    |                                                                                     |            
|                                                    | Income (loss) before income tax benefit, loss on
sale of assets                     |             |    | (337     | ) |          |     | (674     | ) |          |       | 692     |   |         |     | 166      |   |          |       | 1,215    |   |  |     | (147 | ) |  |     | 210 |   |  |       | 684 |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Income tax benefit                                                                  |             |    |         |   |          |     |         |   |          |       |        |   |         |     |         |   |          |       |         |   |  |     |     |   |  |     |    |   |  |       |    |  
|                                                    |                                                                                     |            
|                                                    | Income (loss) before loss on sale of assets                                         |             |    | (337     | ) |          |     | (674     | ) |          |       | 692     |   |         |     | 166      |   |          |       | 1,215    |   |  |     | (147 | ) |  |     | 210 |   |  |       | 684 |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Loss on sale of assets, net of tax effect                                           |             |    |         |   |          |     |         |   |          |       |        |   |         |     |         |   |          |       |         |   |  |     |     |   |  |     |    |   |  |       |    |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Extraordinary item, net of tax effect                                               |             |    |         |   |          |     |         |   |          |       |        |   |         |     |         |   |          |       |         |   |  |     |     |   |  |     |    |   |  |       |    |  
|                                                    |                                                                                     |            
|                                                    | Net income (loss)                                                                   |             |    | (337     | ) |          |     | (674     | ) |          |       | 692     |   |         |     | 166      |   |          |       | 1,215    |   |  |     | (147 | ) |  |     | 210 |   |  |       | 684 |  
|                                                    |                                                                                     |            





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Six months ended June 30, 2002
(in thousands)

|                                        |                             |                                                     |                                                                                     |             |   |          |     |          |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |   |       |     |     |    |      |       |       |    |     |     |     |    |     |   | 
|--------------------------------------- | --------------------------- | --------------------------------------------------- | ----------------------------------------------------------------------------------- | ----------- | - | -------- | --- | -------- | - | -------- | --- | -------- | - | -------- | ----- | -------- | - | -------- | --- | -------- | - | -------- | ----- | ----- | - | ----- | --- | --- | -- | ---- | ----- | ----- | -- | --- | --- | --- | -- | --- | - | 
|                                        |                             |                                                     |                                                                                     |             |   | MeriStar |     | MeriStar |   | MeriStar |     | MeriStar |   | MeriStar |       | MeriStar |   | MeriStar |     | MeriStar |   | MeriStar
|                                        |                             |                                                     |                                                                                     |             |   | Sub 5M,  |     | Sub 1E,  |   | Sub 5O,  |     | Sub 6M,  |   | Sub 4B,  |       | Sub 6C,  |   | Sub 2C,  |     | Sub 4G,  |   | Sub 3B, 
|Revenue:                                |                             | LLC                                                 |                                                                                     | L.P.        |   | LLC      |     | Company  |   | L.P.     |     | LLC      |   | LLC      |       | L.P.     |   | LLC     
|                                        |                             |                                                    
|                                        | Participating lease revenue |                                                     |                                                                                     | 1,089       |   |          |     | 776      |   |          |     | 482      |   |          |       | 2,216    |   |          |     | 106      |   |          |       | 1,546 |   |       |     | 762 |    |      |       | 1,347 |    |     |     | 573 |   
|                                       
|                                       
|                                       
|                                       
|                                        |                             | Hotel operations:                                   |                                                                                     |             |   |          |     |          |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |   |       |     |     |    |      |       |       |    |     |     |     |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Rooms                                                                               |             |   |         |     |          |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |   |      |     |     |    |     |       |       |    |    |     |     |    |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Food and beverage                                                                   |             |   |         |     |          |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |   |      |     |     |    |     |       |       |    |    |     |     |    |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Other operating departments                                                         |             |   |         |     |          |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |   |      |     |     |    |     |       |       |    |    |     |     |    |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             | Office rental and other revenues                    |                                                                                     |             |  |          |     |          |  |          |     |          |  |          |       |          |  |          |     |          |  |          |       |       | 8 |       |     |     | 28 |      |       |       | 10 |     |     |     | 12 |    
|                                        |                             |                                                    
|Total revenue                           |                             |                                                     | 1,089                                                                               |             |   |          | 776 |          |   |          | 482 |          |   |          | 2,216 |          |   |          | 106 |          |   |          | 1,554 |       |   |       | 789 |     |    |      | 1,357 |       |    |     | 585 |    
|                                        |                             |                                                    
|Hotel operating expenses by department: |                             |                                                     |                                                                                     |             |   |          |     |          |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |   |       |     |     |    |      |       |       |    |     |     |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Rooms                                                                               |             |   |         |     |          |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |   |      |     |     |    |     |       |       |    |    |     |     |    |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Food and beverage                                                                   |             |   |         |     |          |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |   |      |     |     |    |     |       |       |    |    |     |     |    |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Other operating departments                                                         |             |   |         |     |          |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |   |      |     |     |    |     |       |       |    |    |     |     |    |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             | Office rental, parking and other operating expenses |                                                                                     |             |  |          |     |          |  |          |     |          |  |          |       |          |  |          |     |          |  |          |       |       |  |       |     |     |   |      |       |       |   |     |     |     |   |    
|                                       
|                                       
|                                       
|                                       
|Undistributed operating expenses:       |                             |                                                     |                                                                                     |             |   |          |     |          |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |   |       |     |     |    |      |       |       |    |     |     |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Administrative and general                                                          |             |   |         |     |          |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |   |      |     |     |    |     |       |       |    |    |     |     |    |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Property operating costs                                                            |             |   |         |     |          |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |   |      |     |     |    |     |       |       |    |    |     |     |    |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Property taxes, insurance and other                                                 |             |   | 150      |     |          |   | 73       |     |          |   | 69       |       |          |   | 144      |     |          |   | 171      |       |       |   | 100   |     |     |    | 175  |       |       |    | 249 |     |     |    | 160 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Depreciation and amortization                                                       |             |   | 226      |     |          |   | 150      |     |          |   | 109      |       |          |   | 603      |     |          |   | 296      |       |       |   | 394   |     |     |    | 519  |       |       |    | 458 |     |     |    | 461 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Expense for non-hedging derivatives                                                 |             |   |          |     |          |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |   |       |     |     |    |      |       |       |    |     |     |     |    |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Write down of investment in STS Hotel Net                                           |             |   |         |     |          |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |   |      |     |     |    |     |       |       |    |    |     |     |    |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Loss on asset impairment                                                            |             |   |         |     |          |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |   |      |     |     |    |     |       |       |    |    |     |     |    |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Write down of deferred costs                                                        |             |   |         |     |          |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |   |      |     |     |    |     |       |       |    |    |     |     |    |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives                                       |             |   |         |     |          |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |   |      |     |     |    |     |       |       |    |    |     |     |    |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | FelCor merger costs                                                                 |             |   |         |     |          |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |   |      |     |     |    |     |       |       |    |    |     |     |    |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality                                    |             |   |          |     |          |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |   |       |     |     |    |      |       |       |    |     |     |     |    |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     |                                                                                     | Corporation |   |          |    |          |   |          |    |          |   |          |      |          |   |          |    |          |   |          |      |       |   |       |    |     |    |      |      |       |    |     |    |     |    |     |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Restructuring charge                                                                |             |   |         |     |          |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |   |      |     |     |    |     |       |       |    |    |     |     |    |    |  
|                                        |                             |                                                    
|                                        |                             |                                                     | Total operating expenses                                                            |             |   | 376      |     |          |   | 223      |     |          |   | 178      |       |          |   | 747      |     |          |   | 467      |       |       |   | 494   |     |     |    | 695  |       |       |    | 707 |     |     |    | 621 |  
|                                        |                             |                                                    
|                                        |                             |                                                     | Net operating income                                                                |             |   | 713      |     |          |   | 554      |     |          |   | 303      |       |          |   | 1,469    |     |          |   | (362     | )     |       |   | 1,060 |     |     |    | 94   |       |       |    | 650 |     |     |    | (35 | )
|                                        |                             |                                                     | Interest expense, net                                                               |             |   | (10      | )   |          |   | (8       | )   |          |   | (4       | )     |          |   | (11      | )   |          |   | (122     | )     |       |   | (18   | )   |     |    | 676  |       |       |    | (13 | )   |     |    | (18 | )
|                                       
|                                        |                             |                                                     | Equity in income from consolidated entities                                         |             |   |         |     |          |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |   |      |     |     |    |     |       |       |    |    |     |     |    |    |  
|                                        |                             |                                                    
|                                        |                             |                                                     | Income (loss) before minority interests, income
tax benefit, loss on sale of assets |             |   | 723      |     |          |   | 562      |     |          |   | 307      |       |          |   | 1,480    |     |          |   | (239     | )     |       |   | 1,078 |     |     |    | (582 | )     |       |    | 662 |     |     |    | (18 | )
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Minority interests                                                                  |             |   |         |     |          |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |   |      |     |     |    |     |       |       |    |    |     |     |    |    |  
|                                        |                             |                                                    
|                                        |                             |                                                     | Income (loss) before income tax benefit, loss on
sale of assets                     |             |   | 723      |     |          |   | 562      |     |          |   | 307      |       |          |   | 1,480    |     |          |   | (239     | )     |       |   | 1,078 |     |     |    | (582 | )     |       |    | 662 |     |     |    | (18 | )
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Income tax benefit                                                                  |             |   |         |     |          |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |   |      |     |     |    |     |       |       |    |    |     |     |    |    |  
|                                        |                             |                                                    
|                                        |                             |                                                     | Income (loss) before loss on sale of assets                                         |             |   | 723      |     |          |   | 562      |     |          |   | 307      |       |          |   | 1,480    |     |          |   | (239     | )     |       |   | 1,078 |     |     |    | (582 | )     |       |    | 662 |     |     |    | (18 | )
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect                                           |             |   |         |     |          |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |   |      |     |     |    |     |       |       |    |    |     |     |    |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Extraordinary item, net of tax effect                                               |             |   |         |     |          |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |   |      |     |     |    |     |       |       |    |    |     |     |    |    |  
|                                        |                             |                                                    
|                                        |                             |                                                     | Net income (loss)                                                                   |             |   | 723      |     |          |   | 562      |     |          |   | 307      |       |          |   | 1,480    |     |          |   | (239     | )     |       |   | 1,078 |     |     |    | (582 | )     |       |    | 662 |     |     |    | (18 | )
|                                        |                             |                                                    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Six months ended June 30, 2002
(in thousands)

|                                        |                             |                                                     |                                                  |                                     |    |          |       |          |   |          |       |          |   |          |       |       |   |     |       |       |    |       |     | 
|--------------------------------------- | --------------------------- | --------------------------------------------------- | ------------------------------------------------ | ----------------------------------- | -- | -------- | ----- | -------- | - | -------- | ----- | -------- | - | -------- | ----- | ----- | - | --- | ----- | ----- | -- | ----- | --- | 
|                                        |                             |                                                     |                                                  |                                     |    |          |       |          |   |          |       |          |   |          |       |       |   |     |       |       |    |      
|                                        |                             |                                                     |                                                  |                                     |    | MeriStar |       | MeriStar |   | MeriStar |       | MeriStar |   | MeriStar
|                                        |                             |                                                     |                                                  |                                     |    | Sub 5G,  |       | Sub 5P,  |   | Sub 5J,  |       | Sub 5Q,  |   | Sub 5A, 
|Revenue:                                |                             | L.P.                                                |                                                  | LLC                                 |    | LLC      |       | LLC      |   | LLC     
|                                        |                             |                                                    
|                                        | Participating lease revenue |                                                     |                                                  | 6,253                               |    |          |       | 302      |   |          |       | 5,376    |   |          |       | 1,196 |   |     |       | 3,000 |   
|                                       
|                                       
|                                       
|                                       
|                                        |                             | Hotel operations:                                   |                                                  |                                     |    |          |       |          |   |          |       |          |   |          |       |       |   |     |       |       |    |      
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Rooms                                            |                                     |    |         |       |          |   |         |       |          |   |         |       |       |   |    |       |       |    |      |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Food and beverage                                |                                     |    |         |       |          |   |         |       |          |   |         |       |       |   |    |       |       |    |      |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Other operating departments                      |                                     |    |         |       |          |   |         |       |          |   |         |       |       |   |    |       |       |    |      |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             | Office rental and other revenues                    |                                                  |                                     | 30 |          |       |          |  |          |       |          |  |          |       |       |  |     |       |       | 60 |      
|                                        |                             |                                                    
|Total revenue                           |                             |                                                     | 6,283                                            |                                     |    |          | 302   |          |   |          | 5,376 |          |   |          | 1,196 |       |   |     | 3,060 |      
|                                        |                             |                                                    
|Hotel operating expenses by department: |                             |                                                     |                                                  |                                     |    |          |       |          |   |          |       |          |   |          |       |       |   |     |       |      
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Rooms                                            |                                     |    |         |       |          |   |         |       |          |   |         |       |       |   |    |       |       |    |      |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Food and beverage                                |                                     |    |         |       |          |   |         |       |          |   |         |       |       |   |    |       |       |    |      |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Other operating departments                      |                                     |    |         |       |          |   |         |       |          |   |         |       |       |   |    |       |       |    |      |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             | Office rental, parking and other operating expenses |                                                  |                                     |   |          |       |          |  |          |       |          |  |          |       |       |  |     |       |       |   |      
|                                       
|                                       
|                                       
|                                       
|Undistributed operating expenses:       |                             |                                                     |                                                  |                                     |    |          |       |          |   |          |       |          |   |          |       |       |   |     |       |      
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Administrative and general                       |                                     |    | 2        |       |          |   |         |       |          |   |         |       |       |   |    |       |       |    |      |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Property operating costs                         |                                     |    |         |       |          |   |         |       |          |   |         |       |       |   |    |       |       |    |      |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Property taxes, insurance and other              |                                     |    | 921      |       |          |   | 18       |       |          |   | 910      |       |       |   | 140 |       |       |    | 301   |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Depreciation and amortization                    |                                     |    | 3,095    |       |          |   | 1        |       |          |   | 1,733    |       |       |   | 240 |       |       |    | 690   |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Expense for non-hedging derivatives              |                                     |    |          |       |          |   |          |       |          |   |          |       |       |   |     |       |       |    |       |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Write down of investment in STS Hotel Net        |                                     |    |         |       |          |   |         |       |          |   |         |       |       |   |    |       |       |    |      |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Loss on asset impairment                         |                                     |    |         |       |          |   |         |       |          |   |         |       |       |   |    |       |       |    |      |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Write down of deferred costs                     |                                     |    |         |       |          |   |         |       |          |   |         |       |       |   |    |       |       |    |      |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives    |                                     |    |         |       |          |   |         |       |          |   |         |       |       |   |    |       |       |    |      |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | FelCor merger costs                              |                                     |    |         |       |          |   |         |       |          |   |         |       |       |   |    |       |       |    |      |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality |                                     |    |          |       |          |   |          |       |          |   |          |       |       |   |     |       |       |    |       |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     |                                                  | Corporation                         |    |          |      |          |   |          |      |          |   |          |      |       |   |     |      |       |    |       |    | 
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Restructuring charge                             |                                     |    |         |       |          |   |         |       |          |   |         |       |       |   |    |       |       |    |      |    
|                                        |                             |                                                    
|                                        |                             |                                                     | Total operating expenses                         |                                     |    | 4,018    |       |          |   | 19       |       |          |   | 2,643    |       |       |   | 380 |       |       |    | 991   |    
|                                        |                             |                                                    
|                                        |                             |                                                     | Net operating income                             |                                     |    | 2,265    |       |          |   | 283      |       |          |   | 2,733    |       |       |   | 815 |       |       |    | 2,069 |    
|                                        |                             |                                                     | Interest expense, net                            |                                     |    | (67      | )     |          |   |         |       |          |   | (57      | )     |       |   | (47 | )     |       |    | 1,384 |    
|                                       
|                                        |                             |                                                     | Equity in income from consolidated entities      |                                     |    |         |       |          |   |         |       |          |   |         |       |       |   |    |       |       |    |      |    
|                                        |                             |                                                    
|                                        |                             |                                                     | Income (loss) before minority interests, income  |                                     |    |          |       |          |   |          |       |          |   |          |       |       |   |     |       |       |    |       |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     |                                                  | tax benefit, loss on sale of assets |    |          | 2,332 |          |   |          | 283   |          |   |          | 2,790 |       |   |     | 862   |       |    |       | 685 | 
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Minority interests                               |                                     |    |         |       |          |   |         |       |          |   |         |       |       |   |    |       |       |    |      |    
|                                        |                             |                                                    
|                                        |                             |                                                     | Income (loss) before income tax benefit, loss on |                                     |    |          |       |          |   |          |       |          |   |          |       |       |   |     |       |       |    |       |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     |                                                  | sale of assets                      |    |          | 2,332 |          |   |          | 283   |          |   |          | 2,790 |       |   |     | 862   |       |    |       | 685 | 
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Income tax benefit                               |                                     |    |         |       |          |   |         |       |          |   |         |       |       |   |    |       |       |    |      |    
|                                        |                             |                                                    
|                                        |                             |                                                     | Income (loss) before loss on sale of assets      |                                     |    | 2,332    |       |          |   | 283      |       |          |   | 2,790    |       |       |   | 862 |       |       |    | 685   |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect        |                                     |    |         |       |          |   |         |       |          |   |         |       |       |   |    |       |       |    |      |    
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Extraordinary item, net of tax effect            |                                     |    |         |       |          |   |         |       |          |   |         |       |       |   |    |       |       |    |      |    
|                                        |                             |                                                    
|                                        |                             |                                                     | Net income (loss)                                |                                     |    | 2,332    |       |          |   | 283      |       |          |   | 2,790    |       |       |   | 862 |       |       |    | 685   |    
|                                        |                             |                                                    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Six months ended June 30, 2002
(in thousands)

|                                        |                             |                                                     |                                                  |                                     |   |              |       |              |     |              |         |   |       |         |          |          |   |          |         |   |        |         |        |  
|--------------------------------------- | --------------------------- | --------------------------------------------------- | ------------------------------------------------ | ----------------------------------- | - | ------------ | ----- | ------------ | --- | ------------ | ------- | - | ----- | ------- | -------- | -------- | - | -------- | ------- | - | ------ | ------- | ------ | -
|                                        |                             |                                                     |                                                  |                                     |   | MeriStar     |       | MeriStar     |     | MeriStar     |         |   |       |         |          |          |   |         
|                                        |                             |                                                     |                                                  |                                     |   | Sub 8D,      |       | Sub 4J,      |     | Hotel        |         |   |       |         |          | Total   
|Revenue:                                |                             | LLC                                                 |                                                  | LLC                                 |   | Lessee, Inc. |       | Eliminations |     | Consolidated
|                                        |                             |                                                    
|                                        | Participating lease revenue |                                                     |                                                  | 1,158                               |   |              |       | 1,590        |     |              |         |  |       |         |          | (147,934 | ) |          |         |  |       
|                                       
|                                       
|                                       
|                                       
|                                        |                             | Hotel operations:                                   |                                                  |                                     |   |              |       |              |     |              |         |   |       |         |          |          |   |          |         |   |       |        
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Rooms                                            |                                     |   |             |       |              |     |             |         |   |       | 353,970 |          |          |   |         |         |   |        | 353,970 |       
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Food and beverage                                |                                     |   |             |       |              |     |             |         |   |       | 133,970 |          |          |   |         |         |   |        | 133,970 |       
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Other operating departments                      |                                     |   |             |       |              |     |             |         |   |       | 39,716  |          |          |   |         |         |   |        | 39,716  |       
|                                       
|                                       
|                                       
|                                       
|                                        |                             | Office rental and other revenues                    |                                                  |                                     |  |              |       |              | 134 |              |         |   | 1,417 |         |          |          |  |          |         |   | 10,263 |        
|                                        |                             |                                                    
|Total revenue                           |                             |                                                     | 1,158                                            |                                     |   |              | 1,724 |              |     |              | 529,072 |   |       |         | (147,934 | )        |   |          | 537,919 |  
|                                        |                             |                                                    
|                                        |                             |                                                     |                                                  |                                     |   |              |       |              |     |              |         |   |       |         |          |          |   |          |        |  
|                                       
|                                       
|                                       
|                                       
|Hotel operating expenses by department: |                             |                                                     |                                                  |                                     |   |              |       |              |     |              |         |   |       |         |          |          |   |          |        |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Rooms                                            |                                     |   |             |       |              |     |             |         |   |       | 82,378  |          |          |   |         |         |   |        | 82,378  |       
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Food and beverage                                |                                     |   |             |       |              |     |             |         |   |       | 94,850  |          |          |   |         |         |   |        | 94,850  |       
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Other operating departments                      |                                     |   |             |       |              |     |              |         |   |       | 22,345  |          |          |   |         |         |   |        | 22,345  |       
|                                       
|                                       
|                                       
|                                       
|                                        |                             | Office rental, parking and other operating expenses |                                                  |                                     |  |              |       |              | 188 |              |         |   |      |         |          |          |  |          |         |   | 1,604  |        
|                                       
|                                       
|                                       
|                                       
|Undistributed operating expenses:       |                             |                                                     |                                                  |                                     |   |              |       |              |     |              |         |   |       |         |          |          |   |          |        |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Administrative and general                       |                                     |   |             |       |              |     | 4            |         |   |       | 83,017  |          |          |   |         |         |   |        | 88,198  |       
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Property operating costs                         |                                     |   |             |       |              |     |             |         |   |       | 79,290  |          |          |   |         |         |   |        | 78,835  |       
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Property taxes, insurance and other              |                                     |   | 207          |       |              |     | 15           |         |   |       | 163,967 |          |          |   | (147,934 | )       |   |        | 36,945  |       
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Depreciation and amortization                    |                                     |   | 634          |       |              |     | 671          |         |   |       | 1,083   |          |          |   |         |         |   |        | 61,731  |       
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Expense for non-hedging derivatives              |                                     |   |              |       |              |     |              |         |   |       |         |          |          |   |          |         |   |        | 3,079   |       
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Write down of investment in STS Hotel Net        |                                     |   |             |       |              |     |             |         |   |       |        |          |          |   |         |         |   |        |        |       
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Loss on asset impairment                         |                                     |   |             |       |              |     |             |         |   |       |        |          |          |   |         |         |   |        |        |       
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Write down of deferred costs                     |                                     |   |             |       |              |     |             |         |   |       |        |          |          |   |         |         |   |        | 1,529   |       
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives    |                                     |   |             |       |              |     |             |         |   |       |        |          |          |   |         |         |   |        | 4,735   |       
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | FelCor merger costs                              |                                     |   |             |       |              |     |             |         |   |       |        |          |          |   |         |         |   |        |        |       
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality |                                     |   |              |       |              |     |              |         |   |       |         |          |          |   |          |         |   |        |        |       
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     |                                                  | Corporation                         |   |              |      |              |     |              |        |   |       |         |         |          |   |          |        |   |        |         |       |  
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Restructuring charge                             |                                     |   |             |       |              |     |             |         |   |       |        |          |          |   |         |         |   |        |        |       
|                                        |                             |                                                    
|                                        |                             |                                                     | Total operating expenses                         |                                     |   | 841          |       |              |     | 878          |         |   |       | 526,929 |          |          |   | (147,934 | )       |   |        | 476,229 |       
|                                        |                             |                                                    
|                                        |                             |                                                     |                                                  |                                     |   |              |       |              |     |              |         |   |       |         |          |          |   |          |         |   |        |        |       
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Net operating income                             |                                     |   | 317          |       |              |     | 846          |         |   |       | 2,143   |          |          |   |         |         |   |        | 61,690  |       
|                                        |                             |                                                     |                                                  |                                     |   |              |       |              |     |              |         |   |       |         |          |          |   |          |         |   |        |        |       
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Interest expense, net                            |                                     |   | (10          | )     |              |     | (22          | )       |   |       | (40     | )        |          |   |         |         |   |        | 68,662  |       
|                                       
|                                        |                             |                                                     | Equity in income from consolidated entities      |                                     |   |             |       |              |     |             |         |   |       |        |          |          |   | 58,834   |         |   |        |        |       
|                                        |                             |                                                    
|                                        |                             |                                                     | Income (loss) before minority interests, income  |                                     |   |              |       |              |     |              |         |   |       |         |          |          |   |          |         |   |        |        |       
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     |                                                  | tax benefit, loss on sale of assets |   |              | 327   |              |     |              | 868     |   |       |         | 2,183    |          |   |          | (58,834 | ) |        |         | (6,972 | )
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Minority interests                               |                                     |   |             |       |              |     |             |         |   |       |        |          |          |   |         |         |   |        | 8       |       
|                                        |                             |                                                    
|                                        |                             |                                                     |                                                  |                                     |   |              |       |              |     |              |         |   |       |         |          |          |   |          |         |   |        |        |       
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Income (loss) before income tax benefit, loss on |                                     |   |              |       |              |     |              |         |   |       |         |          |          |   |          |         |   |        |        |       
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     |                                                  | sale of assets                      |   |              | 327   |              |     |              | 868     |   |       |         | 2,183    |          |   |          | (58,834 | ) |        |         | (6,980 | )
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Income tax benefit                               |                                     |   |             |       |              |     |             |         |   |       |        |          |          |   |         |         |   |        | (159    | )     
|                                        |                             |                                                    
|                                        |                             |                                                     |                                                  |                                     |   |              |       |              |     |              |         |   |       |         |          |          |   |          |         |   |        |        |       
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Income (loss) before loss on sale of assets      |                                     |   | 327          |       |              |     | 868          |         |   |       | 2,183   |          |          |   | (58,834  | )       |   |        | (6,821  | )     
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect        |                                     |   |             |       |              |     |             |         |   |       |        |          |          |   |         |         |   |        |        |       
|                                       
|                                       
|                                       
|                                       
|                                        |                             |                                                     | Extraordinary item, net of tax effect            |                                     |   |             |       |              |     |             |         |   |       |        |          |          |   |         |         |   |        |        |       
|                                        |                             |                                                    
|                                        |                             |                                                     | Net income (loss)                                |                                     |   | 327          |       |              |     | 868          |         |   |       | 2,183   |          |          |   | (58,834  | )       |   |        | (6,821  | )     
|                                        |                             |                                                    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidated Statement of Cash Flows
For the Six months ended June 30, 2002
(in thousands)

|                                               |                                                                                                    |                                                   |                                                          |          |             |          |              |        |              |         |             |   |              |   |             |   |              |   |   |     |    |      |   |       |     |        |   |     |     |      |  
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- | ------------------------------------------------- | -------------------------------------------------------- | -------- | ----------- | -------- | ------------ | ------ | ------------ | ------- | ----------- | - | ------------ | - | ----------- | - | ------------ | - | - | --- | -- | ---- | - | ----- | --- | ------ | - | --- | --- | ---- | -
|                                               |                                                                                                    |                                                   |                                                          |          | MeriStar    |          | Non-         |        |              |         |             |   |              |   |             |   |              |   |   |     |   
|                                               |                                                                                                    |                                                   |                                                          |          | Hospitality |          | Guarantor    |        | MeriStar Sub |         | AGH         |   | MeriStar Sub |   | MeriStar    |   | MeriStar    
|                                               |                                                                                                    |                                                   |                                                          |          | OP, L.P.    |          | Subsidiaries |        | 7C, LLC      |         | Upreit, LLC |   | 5N, LLC      |   | Sub 8A L.P. |   | Sub 8F, L.P.
|                                               |                                                                                                    |                                                  
|                                               |                                                                                                    |                                                   |                                                          |          |            
|Cash flows from operating activities:          |                                                                                                    |                                                   |                                                          |          |             |          |              |        |              |         |             |   |              |   |             |   |              |   |   |     |    |      |   |       |     |        |   |    
|                                              
|                                              
|                                              
|                                              
|                                               | Net Income (loss)                                                                                  |                                                   |                                                          | (6,821   | )           |          |              | 22,495 |              |         |             |  |              |   |             |  |              |   |   | 447 |    |      |   | 507   |     |        |   | 542 |    
|                                              
|                                              
|                                              
|                                              
|                                               | Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities: |                                                   |                                                          |          |             |          |              |       |              |         |             |   |              |   |             |   |              |   |   |     |    |      |   |       |     |        |   |     |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Depreciation and amortization                     |                                                          |          | 5,160       |          |              |        | 26,859       |         |             |   |             |   |             |   |             |   |   |     | 66 |      |   |       | 112 |        |   |     | 226 |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Equity in earnings                                |                                                          |          | (58,834     | )        |              |        |              |         |             |   |              |   |             |   |              |   |   |     |    |      |   |       |     |        |   |     |     |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Loss on fair value of non-hedging derivatives     |                                                          |          | 4,735       |          |              |        |             |         |             |   |             |   |             |   |             |   |   |     |   |      |   |       |    |        |   |     |    |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Write off of deferred financing costs             |                                                          |          | 1,529       |          |              |        |             |         |             |   |             |   |             |   |             |   |   |     |   |      |   |       |    |        |   |     |    |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Minority interests                                |                                                          |          | 8           |          |              |        |             |         |             |   |             |   |             |   |             |   |   |     |   |      |   |       |    |        |   |     |    |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Amortization of unearned stock based compensation |                                                          |          | 1,920       |          |              |        |             |         |             |   |             |   |             |   |             |   |   |     |   |      |   |       |    |        |   |     |    |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Interest rate swaps marked to fair value          |                                                          |          | (2,905      | )        |              |        |              |         |             |   |              |   |             |   |              |   |   |     |    |      |   |       |     |        |   |     |     |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Deferred income taxes                             |                                                          |          | (332        | )        |              |        |             |         |             |   |             |   |             |   |             |   |   |     |   |      |   |       |    |        |   |     |    |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Changes in operating assets and liabilities:      |                                                          |          |             |          |              |        |              |         |             |   |              |   |             |   |              |   |   |     |    |      |   |       |     |        |   |     |     |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Accounts receivable, net                                 |          |             | (3,922   | )            |        |              | (144    | )           |   |              |  |             |   |              |  |   |     |    | (16  | ) |       |     | (16    | ) |     |     | 8    |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Prepaid expenses and other                               |          |             | 4,016    |              |        |              | (450    | )           |   |              |  |             |   |              |  |   |     |    |     |   |       |     |       |   |     |     | 19   |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Due from/to Meristar Hotels                              |          |             | (557     | )            |        |              |        |             |   |              |  |             |   |              |  |   |     |    |     |   |       |     |       |   |     |     |     |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Accounts payable, accrued expenses and other liabilities |          |             | 0        |              |        |              | (2,474  | )           |   |              |  |             |   |              |  |   |     |    | 53   |   |       |     | (1     | ) |     |     | 19   |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Accrued interest                                         |          |             | 8,437    |              |        |              | (240    | )           |   |              |  |             |   |              |  |   |     |    |     |   |       |     |       |   |     |     |     |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Due from subsidiaries                                    |          |             | 349,424  |              |        |              | (36,552 | )           |   |              |  |             |   |              |  |   |     |    | (540 | ) |       |     | (2,540 | ) |     |     | (798 | )
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Income taxes payable                                     |          |             | (269     | )            |        |              |        |             |   |              |  |             |   |              |  |   |     |    |     |   |       |     |       |   |     |     |     |  
|                                               |                                                                                                    |                                                  
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) operating activities      |          |             | 297,015  |              |        |              | 9,491   |             |   |              |  |             |   |              |  |   |     |    | 10   |   |       |     | (1,938 | ) |     |     | 16   |  
|                                               |                                                                                                    |                                                  
|Cash flows from investing activities:          |                                                                                                    |                                                   |                                                          |          |             |          |              |        |              |         |             |   |              |   |             |   |              |   |   |     |    |      |   |       |     |        |   |    
|                                              
|                                              
|                                              
|                                              
|                                               | Investment in hotel properties, net                                                                |                                                   |                                                          | (523     | )           |          |              | (9,583 | )            |         |             |  |              |   |             |  |              |   |   | (10 | )  |      |   | 1,938 |     |        |   | (16 | )  
|                                              
|                                              
|                                              
|                                              
|                                               | Proceeds from disposition of assets                                                                |                                                   |                                                          |         |             |          |              |       |              |         |             |  |              |   |             |  |              |   |   |    |    |      |   |      |     |        |   |    |    
|                                              
|                                               | Note receivable                                                                                    |                                                   |                                                          | (2,545   | )           |          |              | 613    |              |         |             |  |              |   |             |  |              |   |   |    |    |      |   |      |     |        |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               | Change in restricted cash                                                                          |                                                   |                                                          | 2,375    |             |          |              | 2,009  |              |         |             |  |              |   |             |  |              |   |   |    |    |      |   |      |     |        |   |    |    
|                                               |                                                                                                    |                                                  
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) investing activities      |          |             | (692     | )            |        |              | (6,961  | )           |   |              |  |             |   |              |  |   |     |    | (10  | ) |       |     | 1,938  |   |     |     | (16  | )
|                                               |                                                                                                    |                                                  
|Cash flows from financing activities:          |                                                                                                    |                                                   |                                                          |          |             |          |              |        |              |         |             |   |              |   |             |   |              |   |   |     |    |      |   |       |     |        |   |    
|                                              
|                                              
|                                              
|                                              
|                                               | Deferred financing costs                                                                           |                                                   |                                                          | (3,567   | )           |          |              |       |              |         |             |  |              |   |             |  |              |   |   |    |    |      |   |      |     |        |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               | Proceeds from mortgages and notes payable                                                          |                                                   |                                                          | (40,914  | )           |          |              |       |              |         |             |  |              |   |             |  |              |   |   |    |    |      |   |      |     |        |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               | Principal payments on mortgages and notes payable                                                  |                                                   |                                                          | (259,310 | )           |          |              | (2,530 | )            |         |             |  |              |   |             |  |              |   |   |    |    |      |   |      |     |        |   |    |    
|                                              
|                                               | Repurchase of units                                                                                |                                                   |                                                          | (1,193   | )           |          |              |       |              |         |             |  |              |   |             |  |              |   |   |    |    |      |   |      |     |        |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               | Contributions from partners                                                                        |                                                   |                                                          | 3,156    |             |          |              |       |              |         |             |  |              |   |             |  |              |   |   |    |    |      |   |      |     |        |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               | Distributions to partners                                                                          |                                                   |                                                          | (1,212   | )           |          |              |       |              |         |             |  |              |   |             |  |              |   |   |    |    |      |   |      |     |        |   |    |    
|                                               |                                                                                                    |                                                  
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) financing activities      |          |             | (303,040 | )            |        |              | (2,530  | )           |   |              |  |             |   |              |  |   |     |    |     |   |       |     |       |   |     |     |     |  
|                                               |                                                                                                    |                                                  
|Effect of exchange rate changes on cash        |                                                                                                    |                                                   |                                                         |          |             |          |             |        |              |         |            |   |              |   |            |   |              |   |  |     |    |      |  |       |     |        |  |    
|                                               |                                                                                                    |                                                  
|Net change in cash                             |                                                                                                    |                                                   | (6,717                                                   | )        |             |          |             |        |              |         |            |   |              |   |            |   |              |   |  |     |    |      |  |       |     |        |  |    
|                                              
|                                              
|                                              
|                                              
|Cash and cash equivalents, beginning of period |                                                                                                    |                                                   | 6,798                                                    |          |             |          |             |        |              |         |            |   |              |   |            |   |              |   |  |     |    |      |  |       |     |        |  |    
|                                               |                                                                                                    |                                                  
|Cash and cash equivalents, end of period       |                                                                                                    |                                                   | 81                                                       |          |             |          |             |        |              |         |            |   |              |   |            |   |              |   |  |     |    |      |  |       |     |        |  |    
|                                               |                                                                                                    |                                                  





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidated Statement of Cash Flows
For the Six months ended June 30, 2002
(in thousands)

|                                               |                                                                                                    |                                                                  |                                                     |   |          |   |              |     |              |      |              |       |       |        |   |      |     |      |  
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------- | --------------------------------------------------- | - | -------- | - | ------------ | --- | ------------ | ---- | ------------ | ----- | ----- | ------ | - | ---- | --- | ---- | -
|                                               |                                                                                                    |                                                                  |                                                     |   | MeriStar |   |              |     |              |      |              |       |       |        |   |      |    
|                                               |                                                                                                    |                                                                  |                                                     |   | 8G,      |   | MeriStar Sub |     | MeriStar Sub |      | MeriStar Sub
|                                               |                                                                                                    |                                                                  |                                                     |   | LLC      |   | 6H, L.P.     |     | 8B, LLC      |      | 1C, L.P.    
|                                               |                                                                                                    |                                                                  |                                                     |   |         
|Cash flows from operating activities:          |                                                                                                    |                                                                  |                                                     |   |          |   |              |     |              |      |              |       |       |        |   |     
|                                               | Net Income (loss)                                                                                  |                                                                  |                                                     |  |          |   |              | 528 |              |      |              | 2,006 |       |        |   | (81  | )  
|                                               | Adjustments to reconcile net income (loss) to
net cash provided by (used in) operating
activities: |                                                                  |                                                     |   |          |   |              |     |              |      |              |       |       |        |   |      |    
|                                               |                                                                                                    | Depreciation and amortization                                    |                                                     |   |         |   |              |     | 215          |      |              |       | 1,190 |        |   |      | 514 |     
|                                               |                                                                                                    | Equity in earnings Loss on fair
value of non-hedging derivatives |                                                     |   |         |   |              |     |             |      |              |       |      |        |   |      |    |     
|                                               |                                                                                                    | Write off of deffered financing
costs                            |                                                     |   |         |   |              |     |             |      |              |       |      |        |   |      |    |     
|                                               |                                                                                                    | Minority interests                                               |                                                     |   |         |   |              |     |             |      |              |       |      |        |   |      |    |     
|                                               |                                                                                                    | Amortization of unearned stock
based compensation                |                                                     |   |         |   |              |     |             |      |              |       |      |        |   |      |    |     
|                                               |                                                                                                    | Interest rate swaps marked to fair
value                         |                                                     |   |         |   |              |     |             |      |              |       |      |        |   |      |    |     
|                                               |                                                                                                    | Deferred income taxes                                            |                                                     |   |         |   |              |     |             |      |              |       |      |        |   |      |    |     
|                                               |                                                                                                    | Changes in operating assets and
liabilities:                     |                                                     |   |          |   |              |     |              |      |              |       |       |        |   |      |     |     
|                                               |                                                                                                    |                                                                  | Accounts
receivable, net                            |   |          |  |              |     |              |     |              |       |       |       |   |      |     |     |  
|                                               |                                                                                                    |                                                                  | Prepaid expenses
and other                          |   |          |  |              |     |              |     |              |       |       |       |   |      |     | (17  | )
|                                               |                                                                                                    |                                                                  | Due from/to
Meristar Hotels                         |   |          |  |              |     |              |     |              |       |       |       |   |      |     |     |  
|                                               |                                                                                                    |                                                                  | Accounts payable,
accrued expenses
and other        |   |          |   |              |     |              |      |              |       |       |        |   |      |     |      |  
|                                               |                                                                                                    |                                                                  | liabilities                                         |   |          |  |              |     |              | 33   |              |       |       | 293    |   |      |     | 102  |  
|                                               |                                                                                                    |                                                                  | Accrued interest                                    |   |          |  |              |     |              |     |              |       |       |       |   |      |     |     |  
|                                               |                                                                                                    |                                                                  | Due from
subsidiaries                               |   |          |  |              |     |              | (765 | )            |       |       | (2,738 | ) |      |     | (301 | )
|                                               |                                                                                                    |                                                                  | Income taxes payable                                |   |          |  |              |     |              |     |              |       |       |       |   |      |     |     |  
|                                               |                                                                                                    |                                                                  |                                                     |   |         
|                                               |                                                                                                    |                                                                  | Net cash provided
by (used in)
operating
activities |   |          |  |              |     |              | 11   |              |       |       | 751    |   |      |     | 216  |  
|                                               |                                                                                                    |                                                                  |                                                     |   |         
|Cash flows from investing activities:          |                                                                                                    |                                                                  |                                                     |   |          |   |              |     |              |      |              |       |       |        |   |     
|                                               | Investment in hotel properties, net                                                                |                                                                  |                                                     |  |          |   |              | (11 | )            |      |              | (751  | )     |        |   | (216 | )  
|                                               | Proceeds from disposition of assets                                                                |                                                                  |                                                     |  |          |   |              |    |              |      |              |      |       |        |   |     |    
|                                              
|                                               | Note receivable                                                                                    |                                                                  |                                                     |  |          |   |              |    |              |      |              |      |       |        |   |     |    
|                                               | Change in restricted cash                                                                          |                                                                  |                                                     |  |          |   |              |    |              |      |              |      |       |        |   |     |    
|                                               |                                                                                                    |                                                                  |                                                     |   |         
|                                               |                                                                                                    |                                                                  | Net cash provided
by (used in)
investing            |   |          |   |              |     |              |      |              |       |       |        |   |      |     |      |  
|                                               |                                                                                                    |                                                                  | activities                                          |   |          |  |              |     |              | (11  | )            |       |       | (751   | ) |      |     | (216 | )
|                                               |                                                                                                    |                                                                  |                                                     |   |         
|Cash flows from financing activities:          |                                                                                                    |                                                                  |                                                     |   |          |   |              |     |              |      |              |       |       |        |   |     
|                                               | Deferred financing costs                                                                           |                                                                  |                                                     |  |          |   |              |    |              |      |              |      |       |        |   |     |    
|                                               | Proceeds from mortgages and notes payable                                                          |                                                                  |                                                     |  |          |   |              |    |              |      |              |      |       |        |   |     |    
|                                               | Principal payments on mortgages and notes payable                                                  |                                                                  |                                                     |  |          |   |              |    |              |      |              |      |       |        |   |     |    
|                                               | Repurchase of units                                                                                |                                                                  |                                                     |  |          |   |              |    |              |      |              |      |       |        |   |     |    
|                                               | Contributions from partners                                                                        |                                                                  |                                                     |  |          |   |              |    |              |      |              |      |       |        |   |     |    
|                                               | Distributions to partners                                                                          |                                                                  |                                                     |  |          |   |              |    |              |      |              |      |       |        |   |     |    
|                                               |                                                                                                    |                                                                  |                                                     |   |         
|                                               |                                                                                                    |                                                                  | Net cash provided
by (used in)
financing
activities |   |          |  |              |     |              |     |              |       |       |       |   |      |     |     |  
|                                               |                                                                                                    |                                                                  |                                                     |   |         
|Effect of exchange rate changes on cash        |                                                                                                    |                                                                  |                                                    |   |          |   |             |     |              |      |             |       |       |        |  |     
|                                               |                                                                                                    |                                                                  |                                                     |   |         
|Net change in cash                             |                                                                                                    |                                                                  |                                                    |   |          |   |             |     |              |      |             |       |       |        |  |     
|Cash and cash equivalents, beginning of period |                                                                                                    |                                                                  |                                                    |   |          |   |             |     |              |      |             |       |       |        |  |     
|                                               |                                                                                                    |                                                                  |                                                     |   |         
|Cash and cash equivalents, end of period       |                                                                                                    |                                                                  |                                                    |   |          |   |             |     |              |      |             |       |       |        |  |     
|                                               |                                                                                                    |                                                                  |                                                     |   |         





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidated Statement of Cash Flows
For the Six months ended June 30, 2002
(in thousands)

|                                               |                                                                                                    |                                                   |                                                          |     |              |      |              |     |              |      |              |     |              |      |   |     |     |      |   |   |   |   |  |  |  |  |  |  |  |  | 
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- | ------------------------------------------------- | -------------------------------------------------------- | --- | ------------ | ---- | ------------ | --- | ------------ | ---- | ------------ | --- | ------------ | ---- | - | --- | --- | ---- | - | - | - | - |  |  |  |  |  |  |  |  | 
|                                               |                                                                                                    |                                                   |                                                          |     | MeriStar Sub |      | MeriStar Sub |     | MeriStar Sub |      | MeriStar Sub |     | MeriStar Sub
|                                               |                                                                                                    |                                                   |                                                          |     | 8E, LLC      |      | 7F, LLC      |     | 5L, LLC      |      | 3C, LLC      |     | 5R, LLC     
|                                               |                                                                                                    |                                                  
|Cash flows from operating activities:          |                                                                                                    |                                                   |                                                          |     |              |      |              |     |              |      |              |    
|                                              
|                                              
|                                              
|                                              
|                                               | Net Income (loss)                                                                                  |                                                   |                                                          | 441 |              |      |              | 297 |              |      |              | 489 |              |      |   | 420 |     |      |   |  |  
|                                              
|                                              
|                                              
|                                              
|                                               | Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities: |                                                   |                                                          |     |              |      |              |     |              |      |              |     |              |      |   |     |     |      |   |   |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Depreciation and amortization                     |                                                          |     | 296          |      |              |     | 233          |      |              |     | 67           |      |   |     | 353 |      |   |   |  |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Equity
in earnings                                |                                                          |     |             |      |              |     |             |      |              |     |             |      |   |     |    |      |   |   |  |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Loss on fair value of non-hedging derivatives     |                                                          |     |             |      |              |     |             |      |              |     |             |      |   |     |    |      |   |   |  |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Write off of deferred financing costs             |                                                          |     |             |      |              |     |             |      |              |     |             |      |   |     |    |      |   |   |  |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Minority interests                                |                                                          |     |             |      |              |     |             |      |              |     |             |      |   |     |    |      |   |   |  |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Amortization of unearned stock based compensation |                                                          |     |             |      |              |     |             |      |              |     |             |      |   |     |    |      |   |   |  |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Interest
rate swaps marked to fair value          |                                                          |     |             |      |              |     |             |      |              |     |             |      |   |     |    |      |   |   |  |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Deferred
income taxes                             |                                                          |     |             |      |              |     |             |      |              |     |             |      |   |     |    |      |   |   |  |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Changes in operating assets and liabilities:      |                                                          |     |             |      |              |     |             |      |              |     |             |      |   |     |    |      |   |   |  |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Accounts receivable, net                                 |     |              |     |              |     |              |     |              |     |              |     |   |     |     |     |   |   |   |  | 
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Prepaid expenses and other                               |     |              |     |              |     |              |     |              |     |              |     |   |     |     |     |   |   |   |  | 
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Due from/to Meristar Hotels                              |     |              |     |              |     |              |     |              |     |              |     |   |     |     |     |   |   |   |  | 
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Accounts payable, accrued expenses and other liabilities |     |              | (3   | )            |     |              | (5   | )            |     |              | 81   |   |     |     | 54   |   |   |   |  | 
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Accrued interest                                         |     |              |     |              |     |              |     |              |     |              |     |   |     |     |     |   |   |   |  | 
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Due from subsidiaries                                    |     |              | (675 | )            |     |              | (498 | )            |     |              | (565 | ) |     |     | (797 | ) |   |   |  | 
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Income taxes payable                                     |     |              |     |              |     |              |     |              |     |              |     |   |     |     |     |   |   |   |  | 
|                                               |                                                                                                    |                                                  
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) operating activities      |     |              | 60   |              |     |              | 28   |              |     |              | 72   |   |     |     | 29   |   |   |   |  | 
|                                               |                                                                                                    |                                                  
|Cash flows from investing activities:          |                                                                                                    |                                                   |                                                          |     |              |      |              |     |              |      |              |     |              |      |   |     |     |      |   |  
|                                              
|                                              
|                                              
|                                              
|                                               | Investment in hotel properties, net                                                                |                                                   |                                                          | (60 | )            |      |              | (28 | )            |      |              | (72 | )            |      |   | (29 | )   |      |   |  |  
|                                              
|                                              
|                                              
|                                              
|                                               | Proceeds from disposition of assets                                                                |                                                   |                                                          |    |              |      |              |    |              |      |              |    |              |      |   |    |     |      |   |  |  
|                                              
|                                              
|                                              
|                                              
|                                               | Note receivable                                                                                    |                                                   |                                                          |    |              |      |              |    |              |      |              |    |              |      |   |    |     |      |   |  |  
|                                              
|                                              
|                                              
|                                              
|                                               | Change in restricted cash                                                                          |                                                   |                                                          |    |              |      |              |    |              |      |              |    |              |      |   |    |     |      |   |  |  
|                                               |                                                                                                    |                                                  
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) investing activities      |     |              | (60  | )            |     |              | (28  | )            |     |              | (72  | ) |     |     | (29  | ) |   |   |  | 
|                                               |                                                                                                    |                                                  
|Cash flows from financing activities:          |                                                                                                    |                                                   |                                                          |     |              |      |              |     |              |      |              |     |              |      |   |     |     |      |   |  
|                                              
|                                              
|                                              
|                                              
|                                               | Deferred financing costs                                                                           |                                                   |                                                          |    |              |      |              |    |              |      |              |    |              |      |   |    |     |      |   |  |  
|                                              
|                                              
|                                              
|                                              
|                                               | Proceeds from mortgages and notes payable                                                          |                                                   |                                                          |    |              |      |              |    |              |      |              |    |              |      |   |    |     |      |   |  |  
|                                              
|                                              
|                                              
|                                              
|                                               | Principal payments on mortgages and notes payable                                                  |                                                   |                                                          |    |              |      |              |    |              |      |              |    |              |      |   |    |     |      |   |  |  
|                                              
|                                              
|                                              
|                                              
|                                              
|                                              
|                                              
|                                              
|                                               | Repurchase of units                                                                                |                                                   |                                                          |    |              |      |              |    |              |      |              |    |              |      |   |    |     |      |   |  |  
|                                              
|                                              
|                                              
|                                              
|                                               | Contributions from partners                                                                        |                                                   |                                                          |    |              |      |              |    |              |      |              |    |              |      |   |    |     |      |   |  |  
|                                              
|                                              
|                                              
|                                              
|                                               | Distributions to partners                                                                          |                                                   |                                                          |    |              |      |              |    |              |      |              |    |              |      |   |    |     |      |   |  |  
|                                               |                                                                                                    |                                                  
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) financing activities      |     |              |     |              |     |              |     |              |     |              |     |   |     |     |     |   |   |   |  | 
|                                               |                                                                                                    |                                                  
|Effect of exchange rate changes on cash        |                                                                                                    |                                                   |                                                         |     |              |      |             |     |              |      |             |     |              |      |  |     |     |      |  |  
|                                               |                                                                                                    |                                                  
|Net change in cash                             |                                                                                                    |                                                   |                                                         |     |              |      |             |     |              |      |             |     |              |      |  |     |     |      |  |  
|                                              
|                                              
|                                              
|                                              
|Cash and cash equivalents, beginning of period |                                                                                                    |                                                   |                                                         |     |              |      |             |     |              |      |             |     |              |      |  |     |     |      |  |  
|                                               |                                                                                                    |                                                  
|Cash and cash equivalents, end of period       |                                                                                                    |                                                   |                                                         |     |              |      |             |     |              |      |             |     |              |      |  |     |     |      |  |  
|                                               |                                                                                                    |                                                  





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidated Statement of Cash Flows
For the Six months ended June 30, 2002
(in thousands)

|                                               |                                                                                                    |                                                                |                                                          |      |              |      |              |       |              |        |              |      |              |      |              |       |              |        |              |      |     |        |   |      |     |        |   |      |     |      |   |     |     |      |  
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- | -------------------------------------------------------------- | -------------------------------------------------------- | ---- | ------------ | ---- | ------------ | ----- | ------------ | ------ | ------------ | ---- | ------------ | ---- | ------------ | ----- | ------------ | ------ | ------------ | ---- | --- | ------ | - | ---- | --- | ------ | - | ---- | --- | ---- | - | --- | --- | ---- | -
|                                               |                                                                                                    |                                                                |                                                          |      | MeriStar Sub |      | MeriStar Sub |       | MeriStar Sub |        | MeriStar Sub |      | MeriStar Sub |      | MeriStar Sub |       | MeriStar Sub |        | MeriStar Sub
|                                               |                                                                                                    |                                                                |                                                          |      | 6D, LLC      |      | 6E, LLC      |       | 4E, L.P.     |        | 1B, LLC      |      | 5F, L.P.     |      | 6G, LLC      |       | 8C, LLC      |        | 4C,
L.P.    
|                                               |                                                                                                    |                                                               
|Cash flows from operating activities:          |                                                                                                    |                                                                |                                                          |      |              |      |              |       |              |        |              |      |              |      |              |       |              |        |              |      |     |        |   |      |     |        |   |      |     |      |   |    
|                                              
|                                              
|                                              
|                                              
|                                               | Net Income (loss)                                                                                  |                                                                |                                                          | 820  |              |      |              | 1,689 |              |        |              | 64   |              |      |              | 1,367 |              |        |              | 849  |     |        |   | 827  |     |        |   | 6    |     |      |   | 92  |    
|                                              
|                                              
|                                              
|                                              
|                                               | Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities: |                                                                |                                                          |      |              |      |              |       |              |        |              |      |              |      |              |       |              |        |              |      |     |        |   |      |     |        |   |      |     |      |   |     |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Depreciation and amortization                                  |                                                          |      | 266          |      |              |       | 849          |        |              |      | 459          |      |              |       | 316          |        |              |      | 528 |        |   |      | 418 |        |   |      | 692 |      |   |     | 283 |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Equity in earnings                                             |                                                          |      |             |      |              |       |             |        |              |      |             |      |              |       |             |        |              |      |    |        |   |      |    |        |   |      |    |      |   |     |    |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Loss on fair value of non-hedging derivatives                  |                                                          |      |             |      |              |       |             |        |              |      |             |      |              |       |             |        |              |      |    |        |   |      |    |        |   |      |    |      |   |     |    |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Write off of deferred financing costs                          |                                                          |      |             |      |              |       |             |        |              |      |             |      |              |       |             |        |              |      |    |        |   |      |    |        |   |      |    |      |   |     |    |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Minority interests                                             |                                                          |      |             |      |              |       |             |        |              |      |             |      |              |       |             |        |              |      |    |        |   |      |    |        |   |      |    |      |   |     |    |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Amortization of unearned stock based compensation              |                                                          |      |             |      |              |       |             |        |              |      |             |      |              |       |             |        |              |      |    |        |   |      |    |        |   |      |    |      |   |     |    |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Interest rate swaps marked to fair value
Deferred income taxes |                                                          |      |             |      |              |       |             |        |              |      |             |      |              |       |             |        |              |      |    |        |   |      |    |        |   |      |    |      |   |     |    |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Changes in operating assets and liabilities:                   |                                                          |      |             |      |              |       |             |        |              |      |             |      |              |       |             |        |              |      |    |        |   |      |    |        |   |      |    |      |   |     |    |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                                | Accounts receivable, net                                 |      |              | (37  | )            |       |              |       |              |      |              |     |              |       |              |       |              |      |     |       |   |      |     |       |   |      |     |     |   |     |     |     |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                                | Prepaid expenses and other                               |      |              |     |              |       |              |       |              |      |              |     |              |       |              |       |              |      |     |       |   |      |     |       |   |      |     |     |   |     |     |     |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                                | Due from/to Meristar Hotels                              |      |              |     |              |       |              |       |              |      |              |     |              |       |              |       |              |      |     |       |   |      |     |       |   |      |     |     |   |     |     |     |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                                | Accounts payable, accrued expenses and other liabilities |      |              | 65   |              |       |              | 271    |              |      |              | (241 | )            |       |              | 40     |              |      |     | 227    |   |      |     | 161    |   |      |     | (24  | ) |     |     | (139 | )
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                                | Accrued interest                                         |      |              |     |              |       |              |       |              |      |              |     |              |       |              |       |              |      |     |       |   |      |     |       |   |      |     |     |   |     |     |     |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                                | Due from subsidiaries                                    |      |              | (971 | )            |       |              | (2,494 | )            |      |              | (170 | )            |       |              | (1,548 | )            |      |     | (1,342 | ) |      |     | (1,138 | ) |      |     | (573 | ) |     |     | (206 | )
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                                | Income taxes payable                                     |      |              |     |              |       |              |       |              |      |              |     |              |       |              |       |              |      |     |       |   |      |     |       |   |      |     |     |   |     |     |     |  
|                                               |                                                                                                    |                                                               
|                                               |                                                                                                    |                                                                | Net cash provided by (used in) operating activities      |      |              | 141  |              |       |              | 315    |              |      |              | 113  |              |       |              | 175    |              |      |     | 262    |   |      |     | 269    |   |      |     | 101  |   |     |     | 31   |  
|                                               |                                                                                                    |                                                               
|Cash flows from investing activities:          |                                                                                                    |                                                                |                                                          |      |              |      |              |       |              |        |              |      |              |      |              |       |              |        |              |      |     |        |   |      |     |        |   |      |     |      |   |    
|                                              
|                                              
|                                              
|                                              
|                                               | Investment in hotel properties, net                                                                |                                                                |                                                          | (141 | )            |      |              | (315  | )            |        |              | (113 | )            |      |              | (174  | )            |        |              | (262 | )   |        |   | (269 | )   |        |   | (101 | )   |      |   | (31 | )  
|                                              
|                                              
|                                              
|                                              
|                                               | Proceeds from disposition of assets                                                                |                                                                |                                                          |     |              |      |              |      |              |        |              |     |              |      |              |      |              |        |              |     |     |        |   |     |     |        |   |     |     |      |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               | Note receivable                                                                                    |                                                                |                                                          |     |              |      |              |      |              |        |              |     |              |      |              |      |              |        |              |     |     |        |   |     |     |        |   |     |     |      |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               | Change in restricted cash                                                                          |                                                                |                                                          |     |              |      |              |      |              |        |              |     |              |      |              |      |              |        |              |     |     |        |   |     |     |        |   |     |     |      |   |    |    
|                                               |                                                                                                    |                                                               
|                                               |                                                                                                    |                                                                | Net cash provided by (used in) investing activities      |      |              | (141 | )            |       |              | (315   | )            |      |              | (113 | )            |       |              | (174   | )            |      |     | (262   | ) |      |     | (269   | ) |      |     | (101 | ) |     |     | (31  | )
|                                               |                                                                                                    |                                                               
|Cash flows from financing activities:          |                                                                                                    |                                                                |                                                          |      |              |      |              |       |              |        |              |      |              |      |              |       |              |        |              |      |     |        |   |      |     |        |   |      |     |      |   |    
|                                              
|                                              
|                                              
|                                              
|                                               | Deferred financing costs                                                                           |                                                                |                                                          |     |              |      |              |      |              |        |              |     |              |      |              |      |              |        |              |     |     |        |   |     |     |        |   |     |     |      |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               | Proceeds from mortgages and notes payable                                                          |                                                                |                                                          |     |              |      |              |      |              |        |              |     |              |      |              |      |              |        |              |     |     |        |   |     |     |        |   |     |     |      |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               | Principal payments on mortgages and notes payable                                                  |                                                                |                                                          |     |              |      |              |      |              |        |              |     |              |      |              |      |              |        |              |     |     |        |   |     |     |        |   |     |     |      |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               | Repurchase of units                                                                                |                                                                |                                                          |     |              |      |              |      |              |        |              |     |              |      |              |      |              |        |              |     |     |        |   |     |     |        |   |     |     |      |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               | Contributions from partners                                                                        |                                                                |                                                          |     |              |      |              |      |              |        |              |     |              |      |              |      |              |        |              |     |     |        |   |     |     |        |   |     |     |      |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               | Distributions to partners                                                                          |                                                                |                                                          |     |              |      |              |      |              |        |              |     |              |      |              |      |              |        |              |     |     |        |   |     |     |        |   |     |     |      |   |    |    
|                                               |                                                                                                    |                                                               
|                                               |                                                                                                    |                                                                | Net cash provided by (used in) financing activities      |      |              |     |              |       |              |       |              |      |              |     |              |       |              |       |              |      |     |       |   |      |     |       |   |      |     |     |   |     |     |     |  
|                                               |                                                                                                    |                                                               
|Effect of exchange rate changes on cash        |                                                                                                    |                                                                |                                                         |      |              |      |             |       |              |        |             |      |              |      |             |       |              |        |             |      |     |        |  |      |     |        |  |      |     |      |  |    
|                                               |                                                                                                    |                                                               
|Net change in cash                             |                                                                                                    |                                                                |                                                         |      |              |      |             |       |              |        |             |      |              |      |             |       |              |        |             |      |     |        |  |      |     |        |  |      |     |      |  |    
|                                              
|                                              
|                                              
|                                              
|Cash and cash equivalents, beginning of period |                                                                                                    |                                                                |                                                         |      |              |      |             |       |              |        |             |      |              |      |             |       |              |        |             |      |     |        |  |      |     |        |  |      |     |      |  |    
|                                               |                                                                                                    |                                                               
|Cash and cash equivalents, end of period       |                                                                                                    |                                                                |                                                         |      |              |      |             |       |              |        |             |      |              |      |             |       |              |        |             |      |     |        |  |      |     |        |  |      |     |      |  |    
|                                               |                                                                                                    |                                                               





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidated Statement of Cash Flows
For the Six months ended June 30, 2002
(in thousands)

|                                               |                                                                                                    |                                                   |                                                          |     |              |      |              |     |              |      |              |      |              |        |              |     |              |      |   |       |     |        |   |      |     |      |   |       |     |        |  
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- | ------------------------------------------------- | -------------------------------------------------------- | --- | ------------ | ---- | ------------ | --- | ------------ | ---- | ------------ | ---- | ------------ | ------ | ------------ | --- | ------------ | ---- | - | ----- | --- | ------ | - | ---- | --- | ---- | - | ----- | --- | ------ | -
|                                               |                                                                                                    |                                                   |                                                          |     | MeriStar Sub |      | MeriStar Sub |     | MeriStar Sub |      | MeriStar Sub |      | MeriStar Sub |        | MeriStar Sub |     | MeriStar Sub
|                                               |                                                                                                    |                                                   |                                                          |     | 4H, L.P.     |      | 7E, LLC      |     | 3D, LLC      |      | 1A, LLC      |      | 5E, LLC      |        | 7A,          |     | 6K, LLC     
|                                               |                                                                                                    |                                                  
|Cash flows from operating activities:          |                                                                                                    |                                                   |                                                          |     |              |      |              |     |              |      |              |      |              |        |              |     |              |      |   |       |     |        |   |      |     |      |   |      
|                                              
|                                              
|                                              
|                                              
|                                               | Net Income (loss)                                                                                  |                                                   |                                                          | (11 | )            |      |              | 332 |              |      |              | 716  |              |        |              | 485 |              |      |   | 1,757 |     |        |   | 320  |     |      |   | 1,450 |    
|                                              
|                                              
|                                              
|                                              
|                                               | Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities: |                                                   |                                                          |     |              |      |              |     |              |      |              |      |              |        |              |     |              |      |   |       |     |        |   |      |     |      |   |       |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Depreciation and amortization                     |                                                          |     | 270          |      |              |     | 315          |      |              |      | 451          |        |              |     | 232          |      |   |       | 969 |        |   |      | 208 |      |   |       | 372 |       
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Equity in earnings                                |                                                          |     |             |      |              |     |             |      |              |      |             |        |              |     |             |      |   |       |    |        |   |      |    |      |   |       |    |       
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Loss on fair value of non-hedging derivatives     |                                                          |     |             |      |              |     |             |      |              |      |             |        |              |     |             |      |   |       |    |        |   |      |    |      |   |       |    |       
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Write off of deferred financing costs             |                                                          |     |             |      |              |     |             |      |              |      |             |        |              |     |             |      |   |       |    |        |   |      |    |      |   |       |    |       
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Minority interests                                |                                                          |     |             |      |              |     |             |      |              |      |             |        |              |     |             |      |   |       |    |        |   |      |    |      |   |       |    |       
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Amortization of unearned stock based compensation |                                                          |     |             |      |              |     |             |      |              |      |             |        |              |     |             |      |   |       |    |        |   |      |    |      |   |       |    |       
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Interest rate swaps marked to fair value          |                                                          |     |             |      |              |     |             |      |              |      |             |        |              |     |             |      |   |       |    |        |   |      |    |      |   |       |    |       
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Deferred income taxes                             |                                                          |     |             |      |              |     |             |      |              |      |             |        |              |     |             |      |   |       |    |        |   |      |    |      |   |       |    |       
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Changes in operating assets and liabilities:      |                                                          |     |             |      |              |     |             |      |              |      |             |        |              |     |             |      |   |       |    |        |   |      |    |      |   |       |    |       
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Accounts receivable, net                                 |     |              |     |              |     |              |     |              |      |              |       |              |     |              |     |   |       |     |       |   |      |     |     |   |       |     |       |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Prepaid expenses and other                               |     |              | (7   | )            |     |              |     |              |      |              |       |              |     |              |     |   |       |     |       |   |      |     |     |   |       |     |       |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Due from/to Meristar Hotels                              |     |              |     |              |     |              |     |              |      |              |       |              |     |              |     |   |       |     |       |   |      |     |     |   |       |     |       |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Accounts payable, accrued expenses and other liabilities |     |              | (104 | )            |     |              | 10   |              |      |              | 116    |              |     |              | (20  | ) |       |     | 94     |   |      |     | (26  | ) |       |     | 95     |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Accrued interest                                         |     |              |     |              |     |              |     |              |      |              |       |              |     |              |     |   |       |     |       |   |      |     |     |   |       |     |       |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Due from subsidiaries                                    |     |              | (112 | )            |     |              | (623 | )            |      |              | (1,175 | )            |     |              | (684 | ) |       |     | (2,804 | ) |      |     | (350 | ) |       |     | (1,782 | )
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Income taxes payable                                     |     |              |     |              |     |              |     |              |      |              |       |              |     |              |     |   |       |     |       |   |      |     |     |   |       |     |       |  
|                                               |                                                                                                    |                                                  
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) operating activities      |     |              | 36   |              |     |              | 34   |              |      |              | 108    |              |     |              | 14   |   |       |     | 15     |   |      |     | 152  |   |       |     | 135    |  
|                                               |                                                                                                    |                                                  
|Cash flows from investing activities:          |                                                                                                    |                                                   |                                                          |     |              |      |              |     |              |      |              |      |              |        |              |     |              |      |   |       |     |        |   |      |     |      |   |      
|                                              
|                                              
|                                              
|                                              
|                                               | Investment in hotel properties, net                                                                |                                                   |                                                          | (36 | )            |      |              | (34 | )            |      |              | (108 | )            |        |              | (14 | )            |      |   | (15   | )   |        |   | (152 | )   |      |   | (135  | )  
|                                              
|                                              
|                                              
|                                              
|                                               | Proceeds from disposition of assets                                                                |                                                   |                                                          |    |              |      |              |    |              |      |              |     |              |        |              |    |              |      |   |      |     |        |   |     |     |      |   |      |    
|                                              
|                                              
|                                              
|                                              
|                                               | Note receivable                                                                                    |                                                   |                                                          |    |              |      |              |    |              |      |              |     |              |        |              |    |              |      |   |      |     |        |   |     |     |      |   |      |    
|                                              
|                                              
|                                              
|                                              
|                                               | Change in restricted cash                                                                          |                                                   |                                                          |    |              |      |              |    |              |      |              |     |              |        |              |    |              |      |   |      |     |        |   |     |     |      |   |      |    
|                                               |                                                                                                    |                                                  
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) investing activities      |     |              | (36  | )            |     |              | (34  | )            |      |              | (108   | )            |     |              | (14  | ) |       |     | (15    | ) |      |     | (152 | ) |       |     | (135   | )
|                                               |                                                                                                    |                                                  
|Cash flows from financing activities:          |                                                                                                    |                                                   |                                                          |     |              |      |              |     |              |      |              |      |              |        |              |     |              |      |   |       |     |        |   |      |     |      |   |      
|                                              
|                                              
|                                              
|                                              
|                                               | Deferred financing costs                                                                           |                                                   |                                                          |    |              |      |              |    |              |      |              |     |              |        |              |    |              |      |   |      |     |        |   |     |     |      |   |      |    
|                                              
|                                              
|                                              
|                                              
|                                               | Proceeds from mortgages and notes payable                                                          |                                                   |                                                          |    |              |      |              |    |              |      |              |     |              |        |              |    |              |      |   |      |     |        |   |     |     |      |   |      |    
|                                              
|                                              
|                                              
|                                              
|                                               | Principal payments on mortgages and notes payable                                                  |                                                   |                                                          |    |              |      |              |    |              |      |              |     |              |        |              |    |              |      |   |      |     |        |   |     |     |      |   |      |    
|                                              
|                                              
|                                              
|                                              
|                                               | Repurchase of units                                                                                |                                                   |                                                          |    |              |      |              |    |              |      |              |     |              |        |              |    |              |      |   |      |     |        |   |     |     |      |   |      |    
|                                              
|                                              
|                                              
|                                              
|                                               | Contributions from partners                                                                        |                                                   |                                                          |    |              |      |              |    |              |      |              |     |              |        |              |    |              |      |   |      |     |        |   |     |     |      |   |      |    
|                                              
|                                              
|                                              
|                                              
|                                               | Distributions to partners                                                                          |                                                   |                                                          |    |              |      |              |    |              |      |              |     |              |        |              |    |              |      |   |      |     |        |   |     |     |      |   |      |    
|                                               |                                                                                                    |                                                  
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) financing activities      |     |              |     |              |     |              |     |              |      |              |       |              |     |              |     |   |       |     |       |   |      |     |     |   |       |     |       |  
|                                               |                                                                                                    |                                                  
|Effect of exchange rate changes on cash        |                                                                                                    |                                                   |                                                         |     |              |      |             |     |              |      |             |      |              |        |             |     |              |      |  |       |     |        |  |      |     |      |  |      
|                                               |                                                                                                    |                                                  
|Net change in cash                             |                                                                                                    |                                                   |                                                         |     |              |      |             |     |              |      |             |      |              |        |             |     |              |      |  |       |     |        |  |      |     |      |  |      
|                                              
|                                              
|                                              
|                                              
|Cash and cash equivalents, beginning of period |                                                                                                    |                                                   |                                                         |     |              |      |             |     |              |      |             |      |              |        |             |     |              |      |  |       |     |        |  |      |     |      |  |      
|                                               |                                                                                                    |                                                  
|Cash and cash equivalents, end of period       |                                                                                                    |                                                   |                                                         |     |              |      |             |     |              |      |             |      |              |        |             |     |              |      |  |       |     |        |  |      |     |      |  |      
|                                               |                                                                                                    |                                                  





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidated Statement of Cash Flows
For the Six months ended June 30, 2002
(in thousands)

|                                               |                                                                                                    |                                                   |                                                          |      |              |      |              |      |              |      |              |      |              |      |              |      |             |      |              |      |     |      |   |      |     |      |   |     |    |      |   |      |     |      |  
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- | ------------------------------------------------- | -------------------------------------------------------- | ---- | ------------ | ---- | ------------ | ---- | ------------ | ---- | ------------ | ---- | ------------ | ---- | ------------ | ---- | ----------- | ---- | ------------ | ---- | --- | ---- | - | ---- | --- | ---- | - | --- | -- | ---- | - | ---- | --- | ---- | -
|                                               |                                                                                                    |                                                   |                                                          |      | MeriStar Sub |      | MeriStar Sub |      | MeriStar Sub |      | MeriStar Sub |      | MeriStar Sub |      | MeriStar Sub |      | MDV Limited |      | MeriStar Sub
|                                               |                                                                                                    |                                                   |                                                          |      | 2B, LLC      |      | 3A, LLC      |      | 4A, LLC      |      | 4D, LLC      |      | 2A, LLC      |      | 6L, LLC      |      | Partnership |      | 5C, LLC     
|                                               |                                                                                                    |                                                  
|Cash flows from operating activities:          |                                                                                                    |                                                   |                                                          |      |              |      |              |      |              |      |              |      |              |      |              |      |             |      |              |      |     |      |   |      |     |      |   |     |    |      |   |     
|                                              
|                                              
|                                              
|                                              
|                                               | Net Income (loss)                                                                                  |                                                   |                                                          | (205 | )            |      |              | 96   |              |      |              | 392  |              |      |              | 10   |             |      |              | (283 | )   |      |   | 303  |     |      |   | 201 |    |      |   | 249  |    
|                                              
|                                              
|                                              
|                                              
|                                               | Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities: |                                                   |                                                          |      |              |      |              |      |              |      |              |      |              |      |              |      |             |      |              |      |     |      |   |      |     |      |   |     |    |      |   |      |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Depreciation and amortization                     |                                                          |      | 212          |      |              |      | 133          |      |              |      |             |      |              |      | 157         |      |              |      | 159 |      |   |      | 445 |      |   |     | 68 |      |   |      | 298 |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Equity in earnings                                |                                                          |      |             |      |              |      |             |      |              |      |             |      |              |      |            |      |              |      |    |      |   |      |    |      |   |     |   |      |   |      |    |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Loss on fair value of non-hedging derivatives     |                                                          |      |             |      |              |      |             |      |              |      |             |      |              |      |            |      |              |      |    |      |   |      |    |      |   |     |   |      |   |      |    |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Write off of deferred financing costs             |                                                          |      |             |      |              |      |             |      |              |      |             |      |              |      |            |      |              |      |    |      |   |      |    |      |   |     |   |      |   |      |    |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Minority interests                                |                                                          |      |             |      |              |      |             |      |              |      |             |      |              |      |            |      |              |      |    |      |   |      |    |      |   |     |   |      |   |      |    |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Amortization of unearned stock based compensation |                                                          |      |             |      |              |      |             |      |              |      |             |      |              |      |            |      |              |      |    |      |   |      |    |      |   |     |   |      |   |      |    |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Deferred income taxes                             |                                                          |      |             |      |              |      |             |      |              |      |             |      |              |      |            |      |              |      |    |      |   |      |    |      |   |     |   |      |   |      |    |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Deferred income taxes                             |                                                          |      |             |      |              |      |             |      |              |      |             |      |              |      |            |      |              |      |    |      |   |      |    |      |   |     |   |      |   |      |    |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Changes in operating assets and liabilities:      |                                                          |      |             |      |              |      |             |      |              |      |             |      |              |      |            |      |              |      |    |      |   |      |    |      |   |     |   |      |   |      |    |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Accounts receivable, net                                 |      |              |      |              |      |              |     |              |      |              |     |              |      |             |     |              |      |     |     |   |      |     |     |   |     |    |     |   |      |     |     |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Prepaid expenses and other                               |      |              |     |              |      |              |     |              |      |              |     |              |      |             |     |              |      |     |     |   |      |     |     |   |     |    | 4    |   |      |     | (27  | )
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Due from/to Meristar Hotels                              |      |              |     |              |      |              |     |              |      |              |     |              |      |             |     |              |      |     |     |   |      |     |     |   |     |    |     |   |      |     |     |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Accounts payable, accrued expenses and other liabilities |      |              |     |              |      |              | 7    |              |      |              | (92  | )            |      |             | 80   |              |      |     | 79   |   |      |     | 50   |   |     |    | (15  | ) |      |     | 92   |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Accrued interest                                         |      |              |     |              |      |              |     |              |      |              |     |              |      |             |     |              |      |     |     |   |      |     |     |   |     |    |     |   |      |     |     |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Due from subsidiaries                                    |      |              | 272  |              |      |              | 425  |              |      |              | (51  | )            |      |             | (140 | )            |      |     | 64   |   |      |     | (674 | ) |     |    | (253 | ) |      |     | (449 | )
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Income taxes payable                                     |      |              |     |              |      |              |     |              |      |              |     |              |      |             |     |              |      |     |     |   |      |     |     |   |     |    |     |   |      |     |     |  
|                                               |                                                                                                    |                                                  
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) operating activities      |      |              | 279  |              |      |              | 660  |              |      |              | 250  |              |      |             | 108  |              |      |     | 19   |   |      |     | 125  |   |     |    | 4    |   |      |     | 163  |  
|                                               |                                                                                                    |                                                  
|Cash flows from investing activities:          |                                                                                                    |                                                   |                                                          |      |              |      |              |      |              |      |              |      |              |      |              |      |             |      |              |      |     |      |   |      |     |      |   |     |    |      |   |     
|                                              
|                                              
|                                              
|                                              
|                                               | Investment in hotel properties, net                                                                |                                                   |                                                          | (511 | )            |      |              | (660 | )            |      |              | (250 | )            |      |              | (108 | )           |      |              | (400 | )   |      |   | (125 | )   |      |   | (4  | )  |      |   | (163 | )  
|                                              
|                                              
|                                              
|                                              
|                                               | Proceeds from disposition of assets                                                                |                                                   |                                                          |     |              |      |              |     |              |      |              |     |              |      |              |     |             |      |              |     |     |      |   |     |     |      |   |    |    |      |   |     |    
|                                              
|                                              
|                                              
|                                              
|                                               | Note receivable                                                                                    |                                                   |                                                          |     |              |      |              |     |              |      |              |     |              |      |              |     |             |      |              |     |     |      |   |     |     |      |   |    |    |      |   |     |    
|                                              
|                                              
|                                              
|                                              
|                                               | Change in restricted cash                                                                          |                                                   |                                                          |     |              |      |              |     |              |      |              |     |              |      |              |     |             |      |              |     |     |      |   |     |     |      |   |    |    |      |   |     |    
|                                               |                                                                                                    |                                                  
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) investing activities      |      |              | (511 | )            |      |              | (660 | )            |      |              | (250 | )            |      |             | (108 | )            |      |     | (400 | ) |      |     | (125 | ) |     |    | (4   | ) |      |     | (163 | )
|                                               |                                                                                                    |                                                  
|Cash flows from financing activities:          |                                                                                                    |                                                   |                                                          |      |              |      |              |      |              |      |              |      |              |      |              |      |             |      |              |      |     |      |   |      |     |      |   |     |    |      |   |     
|                                              
|                                              
|                                              
|                                              
|                                               | Deferred financing costs                                                                           |                                                   |                                                          |     |              |      |              |     |              |      |              |     |              |      |              |     |             |      |              |     |     |      |   |     |     |      |   |    |    |      |   |     |    
|                                              
|                                              
|                                              
|                                              
|                                               | Proceeds from mortgages and notes payable                                                          |                                                   |                                                          | 236  |              |      |              |     |              |      |              |     |              |      |              |     |             |      |              | 385  |     |      |   |     |     |      |   |    |    |      |   |     |    
|                                              
|                                              
|                                              
|                                              
|                                               | Principal payments on mortgages and notes payable                                                  |                                                   |                                                          |     |              |      |              |     |              |      |              |     |              |      |              |     |             |      |              |     |     |      |   |     |     |      |   |    |    |      |   |     |    
|                                              
|                                              
|                                              
|                                              
|                                               | Repurchase of units                                                                                |                                                   |                                                          |     |              |      |              |     |              |      |              |     |              |      |              |     |             |      |              |     |     |      |   |     |     |      |   |    |    |      |   |     |    
|                                              
|                                              
|                                              
|                                              
|                                               | Contributions from partners                                                                        |                                                   |                                                          |     |              |      |              |     |              |      |              |     |              |      |              |     |             |      |              |     |     |      |   |     |     |      |   |    |    |      |   |     |    
|                                              
|                                              
|                                              
|                                              
|                                               | Distributions to partners                                                                          |                                                   |                                                          |     |              |      |              |     |              |      |              |     |              |      |              |     |             |      |              |     |     |      |   |     |     |      |   |    |    |      |   |     |    
|                                               |                                                                                                    |                                                  
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) financing activities      |      |              | 236  |              |      |              |     |              |      |              |     |              |      |             |     |              |      |     | 385  |   |      |     |     |   |     |    |     |   |      |     |     |  
|                                               |                                                                                                    |                                                  
|Effect of exchange rate changes on cash        |                                                                                                    |                                                   | (4                                                       | )    |              |      |             |      |              |      |             |      |              |      |             |      |             |      | (3           | )    |     |      |  |      |     |      |  |     |    |      |  |     
|                                               |                                                                                                    |                                                  
|Net change in cash                             |                                                                                                    |                                                   |                                                         |      |              |      |             |      |              |      |             |      |              |      |             |      |             |      |             |      |     |      |  |      |     |      |  |     |    |      |  |     
|                                              
|                                              
|                                              
|                                              
|Cash and cash equivalents, beginning of period |                                                                                                    |                                                   |                                                         |      |              |      |             |      |              |      |             |      |              |      |             |      |             |      |             |      |     |      |  |      |     |      |  |     |    |      |  |     
|                                               |                                                                                                    |                                                  
|Cash and cash equivalents, end of period       |                                                                                                    |                                                   |                                                         |      |              |      |             |      |              |      |             |      |              |      |             |      |             |      |             |      |     |      |  |      |     |      |  |     |    |      |  |     
|                                               |                                                                                                    |                                                  





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidated Statement of Cash Flows
For the Six months ended June 30, 2002
(in thousands)

|                                               |                                                                                                    |                                                   |                                                          |       |              |        |              |       |              |        |              |      |              |      |              |      |              |        |   |      |     |      |   |     |     |      |   |      |     |      |  
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- | ------------------------------------------------- | -------------------------------------------------------- | ----- | ------------ | ------ | ------------ | ----- | ------------ | ------ | ------------ | ---- | ------------ | ---- | ------------ | ---- | ------------ | ------ | - | ---- | --- | ---- | - | --- | --- | ---- | - | ---- | --- | ---- | -
|                                               |                                                                                                    |                                                   |                                                          |       | MeriStar Sub |        | MeriStar Sub |       | MeriStar Sub |        | MeriStar Sub |      | MeriStar Sub |      | MeriStar Sub |      | MeriStar Sub
|                                               |                                                                                                    |                                                   |                                                          |       | 6J, LLC      |        | 1D, L.P.     |       | 7B, L.P.     |        | 7D, LLC      |      | 7G, LLC      |      | 6B, LLC      |      | 4I, L.P.    
|                                               |                                                                                                    |                                                  
|Cash flows from operating activities:          |                                                                                                    |                                                   |                                                          |       |              |        |              |       |              |        |              |      |              |      |              |      |              |        |   |      |     |      |   |     |     |      |   |     
|                                              
|                                              
|                                              
|                                              
|                                               | Net Income (loss)                                                                                  |                                                   |                                                          | 1,042 |              |        |              | 1,175 |              |        |              | (118 | )            |      |              | 889  |              |        |   | (193 | )   |      |   | 310 |     |      |   | (337 | )  
|                                              
|                                              
|                                              
|                                              
|                                               | Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities: |                                                   |                                                          |       |              |        |              |       |              |        |              |      |              |      |              |      |              |        |   |      |     |      |   |     |     |      |   |      |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Depreciation and amortization                     |                                                          |       | 322          |        |              |       | 1,118        |        |              |      | 463          |      |              |      | 832          |        |   |      | 378 |      |   |     | 227 |      |   |      | 243 |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Equity in earnings                                |                                                          |       |              |        |              |       |              |        |              |      |              |      |              |      |              |        |   |      |     |      |   |     |     |      |   |      |     |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Loss on fair value of non-hedging derivatives     |                                                          |       |             |        |              |       |             |        |              |      |             |      |              |      |             |        |   |      |    |      |   |     |    |      |   |      |    |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Write off of deferred financing costs             |                                                          |       |             |        |              |       |             |        |              |      |             |      |              |      |             |        |   |      |    |      |   |     |    |      |   |      |    |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Minority interests                                |                                                          |       |             |        |              |       |             |        |              |      |             |      |              |      |             |        |   |      |    |      |   |     |    |      |   |      |    |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Amortization of unearned stock based compensation |                                                          |       |             |        |              |       |             |        |              |      |             |      |              |      |             |        |   |      |    |      |   |     |    |      |   |      |    |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Interest rate swaps marked to fair value          |                                                          |       |              |        |              |       |              |        |              |      |              |      |              |      |              |        |   |      |     |      |   |     |     |      |   |      |     |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Deferred income taxes                             |                                                          |       |             |        |              |       |             |        |              |      |             |      |              |      |             |        |   |      |    |      |   |     |    |      |   |      |    |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Changes in operating assets and liabilities:      |                                                          |       |             |        |              |       |             |        |              |      |             |      |              |      |             |        |   |      |    |      |   |     |    |      |   |      |    |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Accounts receivable, net                                 |       |              |       |              |       |              |       |              |      |              |     |              |      |              | 120    |   |      |     |     |   |     |     |     |   |      |     |     |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Prepaid expenses and other                               |       |              |       |              |       |              |       |              |      |              |     |              |      |              |       |   |      |     |     |   |     |     |     |   |      |     |     |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Due from/to MeriStar Hotels                              |       |              |       |              |       |              |       |              |      |              |     |              |      |              |       |   |      |     |     |   |     |     |     |   |      |     |     |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Accounts payable, accrued expenses and other liabilities |       |              | 107    |              |       |              | (453   | )            |      |              | (10  | )            |      |              | (38    | ) |      |     | (183 | ) |     |     | 69   |   |      |     | (93  | )
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Accrued interest                                         |       |              |       |              |       |              | 31     |              |      |              |     |              |      |              |       |   |      |     |     |   |     |     |     |   |      |     |     |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Due from subsidiaries                                    |       |              | (1,302 | )            |       |              | (1,454 | )            |      |              | (311 | )            |      |              | (1,693 | ) |      |     | 53   |   |     |     | (545 | ) |      |     | 300  |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Income taxes payable                                     |       |              |       |              |       |              |       |              |      |              |     |              |      |              |       |   |      |     |     |   |     |     |     |   |      |     |     |  
|                                               |                                                                                                    |                                                  
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) operating activities      |       |              | 170    |              |       |              | 418    |              |      |              | 23   |              |      |              | 108    |   |      |     | 55   |   |     |     | 62   |   |      |     | 113  |  
|                                               |                                                                                                    |                                                  
|Cash flows from investing activities:          |                                                                                                    |                                                   |                                                          |       |              |        |              |       |              |        |              |      |              |      |              |      |              |        |   |      |     |      |   |     |     |      |   |     
|                                              
|                                              
|                                              
|                                              
|                                               | Investment in hotel properties, net                                                                |                                                   |                                                          | (170  | )            |        |              | (418  | )            |        |              | (23  | )            |      |              | (108 | )            |        |   | (55  | )   |      |   | (62 | )   |      |   | (113 | )  
|                                              
|                                              
|                                              
|                                              
|                                               | Proceeds from disposition of assets                                                                |                                                   |                                                          |      |              |        |              |      |              |        |              |     |              |      |              |     |              |        |   |     |     |      |   |    |     |      |   |     |    
|                                              
|                                              
|                                              
|                                              
|                                               | Note receivable                                                                                    |                                                   |                                                          |      |              |        |              |      |              |        |              |     |              |      |              |     |              |        |   |     |     |      |   |    |     |      |   |     |    
|                                              
|                                              
|                                              
|                                              
|                                               | Change in restricted cash                                                                          |                                                   |                                                          |      |              |        |              |      |              |        |              |     |              |      |              |     |              |        |   |     |     |      |   |    |     |      |   |     |    
|                                               |                                                                                                    |                                                  
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) investing activities      |       |              | (170   | )            |       |              | (418   | )            |      |              | (23  | )            |      |              | (108   | ) |      |     | (55  | ) |     |     | (62  | ) |      |     | (113 | )
|                                               |                                                                                                    |                                                  
|Cash flows from financing activities:          |                                                                                                    |                                                   |                                                          |       |              |        |              |       |              |        |              |      |              |      |              |      |              |        |   |      |     |      |   |     |     |      |   |     
|                                              
|                                              
|                                              
|                                              
|                                               | Deferred financing costs                                                                           |                                                   |                                                          |      |              |        |              |      |              |        |              |     |              |      |              |     |              |        |   |     |     |      |   |    |     |      |   |     |    
|                                              
|                                              
|                                              
|                                              
|                                               | Proceeds from mortgages and notes payable                                                          |                                                   |                                                          |      |              |        |              |      |              |        |              |     |              |      |              |     |              |        |   |     |     |      |   |    |     |      |   |     |    
|                                              
|                                              
|                                              
|                                              
|                                               | Principal payments on mortgages and notes payable                                                  |                                                   |                                                          |      |              |        |              |      |              |        |              |     |              |      |              |     |              |        |   |     |     |      |   |    |     |      |   |     |    
|                                              
|                                              
|                                              
|                                              
|                                               | Repurchase of units                                                                                |                                                   |                                                          |      |              |        |              |      |              |        |              |     |              |      |              |     |              |        |   |     |     |      |   |    |     |      |   |     |    
|                                              
|                                              
|                                              
|                                              
|                                               | Contributions from partners                                                                        |                                                   |                                                          |      |              |        |              |      |              |        |              |     |              |      |              |     |              |        |   |     |     |      |   |    |     |      |   |     |    
|                                              
|                                              
|                                              
|                                              
|                                               | Distributions to partners                                                                          |                                                   |                                                          |      |              |        |              |      |              |        |              |     |              |      |              |     |              |        |   |     |     |      |   |    |     |      |   |     |    
|                                               |                                                                                                    |                                                  
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) financing activities      |       |              |       |              |       |              |       |              |      |              |     |              |      |              |       |   |      |     |     |   |     |     |     |   |      |     |     |  
|                                               |                                                                                                    |                                                  
|Effect of exchange rate changes on cash        |                                                                                                    |                                                   |                                                         |       |              |        |             |       |              |        |             |      |              |      |             |      |              |        |  |      |     |      |  |     |     |      |  |     
|                                               |                                                                                                    |                                                  
|Net change in cash                             |                                                                                                    |                                                   |                                                         |       |              |        |             |       |              |        |             |      |              |      |             |      |              |        |  |      |     |      |  |     |     |      |  |     
|                                              
|                                              
|                                              
|                                              
|Cash and cash equivalents, beginning of period |                                                                                                    |                                                   |                                                         |       |              |        |             |       |              |        |             |      |              |      |             |      |              |        |  |      |     |      |  |     |     |      |  |     
|                                               |                                                                                                    |                                                  
|Cash and cash equivalents, end of period       |                                                                                                    |                                                   |                                                         |       |              |        |             |       |              |        |             |      |              |      |             |      |              |        |  |      |     |      |  |     |     |      |  |     
|                                               |                                                                                                    |                                                  





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidated Statement of Cash Flows
For the Six months ended June 30, 2002
(in thousands)

|                                               |                                                                                                    |                                                   |                                                          |      |              |      |              |      |              |        |         |     |              |      |              |       |              |        |              |      |     |      |   |      |     |      |   |      |     |        |   |     |     |        |  
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- | ------------------------------------------------- | -------------------------------------------------------- | ---- | ------------ | ---- | ------------ | ---- | ------------ | ------ | ------- | --- | ------------ | ---- | ------------ | ----- | ------------ | ------ | ------------ | ---- | --- | ---- | - | ---- | --- | ---- | - | ---- | --- | ------ | - | --- | --- | ------ | -
|                                               |                                                                                                    |                                                   |                                                          |      | MeriStar Sub |      | MeriStar Sub |      | MeriStar Sub |        | AGH PSS |     | MeriStar Sub |      | MeriStar Sub |       | MeriStar Sub |        | MeriStar Sub
|                                               |                                                                                                    |                                                   |                                                          |      | 5D, LLC      |      | 5H, LLC      |      | 7H, LLC      |        | I, Inc. |     | 2D, LLC      |      | 4F, L.P.     |       | 5K, LLC      |        | 5M, LLC     
|                                               |                                                                                                    |                                                  
|Cash flows from operating activities:          |                                                                                                    |                                                   |                                                          |      |              |      |              |      |              |        |         |     |              |      |              |       |              |        |              |      |     |      |   |      |     |      |   |      |     |        |   |    
|                                              
|                                              
|                                              
|                                              
|                                               | Net Income (loss)                                                                                  |                                                   |                                                          | (674 | )            |      |              | 692  |              |        |         | 166 |              |      |              | 1,215 |              |        |              | (147 | )   |      |   | 210  |     |      |   | 684  |     |        |   | 723 |    
|                                              
|                                              
|                                              
|                                              
|                                               | Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities: |                                                   |                                                          |      |              |      |              |      |              |        |         |     |              |      |              |       |              |        |              |      |     |      |   |      |     |      |   |      |     |        |   |     |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Depreciation and amortization                     |                                                          |      | 724          |      |              |      | 986          |        |         |     | 290          |      |              |       |             |        |              |      | 237 |      |   |      | 560 |      |   |      | 594 |        |   |     | 226 |       
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Equity in earnings                                |                                                          |      |              |      |              |      |              |        |         |     |              |      |              |       |              |        |              |      |     |      |   |      |     |      |   |      |     |        |   |     |     |       
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Loss on fair value of non-hedging derivatives     |                                                          |      |             |      |              |      |             |        |         |     |             |      |              |       |             |        |              |      |    |      |   |      |    |      |   |      |    |        |   |     |    |       
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Write off of deferred financing costs             |                                                          |      |             |      |              |      |             |        |         |     |             |      |              |       |             |        |              |      |    |      |   |      |    |      |   |      |    |        |   |     |    |       
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Minority interests                                |                                                          |      |             |      |              |      |             |        |         |     |             |      |              |       |             |        |              |      |    |      |   |      |    |      |   |      |    |        |   |     |    |       
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Amortization of unearned stock based compensation |                                                          |      |             |      |              |      |             |        |         |     |             |      |              |       |             |        |              |      |    |      |   |      |    |      |   |      |    |        |   |     |    |       
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Interest rate swaps marked to fair value          |                                                          |      |              |      |              |      |              |        |         |     |              |      |              |       |              |        |              |      |     |      |   |      |     |      |   |      |     |        |   |     |     |       
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Deferred income taxes                             |                                                          |      |             |      |              |      |             |        |         |     |             |      |              |       |             |        |              |      |    |      |   |      |    |      |   |      |    |        |   |     |    |       
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Changes in operating assets and liabilities:      |                                                          |      |             |      |              |      |             |        |         |     |             |      |              |       |             |        |              |      |    |      |   |      |    |      |   |      |    |        |   |     |    |       
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Accounts receivable, net                                 |      |              |     |              |      |              |       |         |     |              |     |              |       |              |       |              |      |     |     |   |      |     |     |   |      |     |       |   |     |     |       |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Prepaid expenses and other                               |      |              |     |              |      |              |       |         |     |              |     |              |       |              |       |              |      |     |     |   |      |     |     |   |      |     |       |   |     |     |       |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Due from/to MeriStar Hotels                              |      |              |     |              |      |              |       |         |     |              |     |              |       |              |       |              |      |     |     |   |      |     |     |   |      |     |       |   |     |     |       |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Accounts payable, accrued expenses and other liabilities |      |              | 75   |              |      |              | 556    |         |     |              | (3   | )            |       |              | 276    |              |      |     | (12  | ) |      |     | (161 | ) |      |     | (1,212 | ) |     |     | 207    |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Accrued interest                                         |      |              |     |              |      |              |       |         |     |              |     |              |       |              |       |              |      |     |     |   |      |     |     |   |      |     |       |   |     |     |       |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Due from subsidiaries                                    |      |              | 55   |              |      |              | (1,616 | )       |     |              | (396 | )            |       |              | (1,051 | )            |      |     | 236  |   |      |     | (248 | ) |      |     | 505    |   |     |     | (1,074 | )
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Income taxes payable                                     |      |              |     |              |      |              |       |         |     |              |     |              |       |              |       |              |      |     |     |   |      |     |     |   |      |     |       |   |     |     |       |  
|                                               |                                                                                                    |                                                  
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) operating activities      |      |              | 180  |              |      |              | 618    |         |     |              | 57   |              |       |              | 440    |              |      |     | 315  |   |      |     | 361  |   |      |     | 571    |   |     |     | 82     |  
|                                               |                                                                                                    |                                                  
|Cash flows from investing activities:          |                                                                                                    |                                                   |                                                          |      |              |      |              |      |              |        |         |     |              |      |              |       |              |        |              |      |     |      |   |      |     |      |   |      |     |        |   |    
|                                              
|                                              
|                                              
|                                              
|                                               | Investment in hotel properties, net                                                                |                                                   |                                                          | (182 | )            |      |              | (618 | )            |        |         | (58 | )            |      |              | (440  | )            |        |              | (755 | )   |      |   | (361 | )   |      |   | (571 | )   |        |   | (82 | )  
|                                              
|                                              
|                                              
|                                              
|                                               | Proceeds from disposition of assets                                                                |                                                   |                                                          |     |              |      |              |     |              |        |         |    |              |      |              |      |              |        |              |     |     |      |   |     |     |      |   |     |     |        |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               | Note receivable                                                                                    |                                                   |                                                          |     |              |      |              |     |              |        |         |    |              |      |              |      |              |        |              |     |     |      |   |     |     |      |   |     |     |        |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               | Change in restricted cash                                                                          |                                                   |                                                          |     |              |      |              |     |              |        |         |    |              |      |              |      |              |        |              |     |     |      |   |     |     |      |   |     |     |        |   |    |    
|                                               |                                                                                                    |                                                  
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) investing activities      |      |              | (182 | )            |      |              | (618   | )       |     |              | (58  | )            |       |              | (440   | )            |      |     | (755 | ) |      |     | (361 | ) |      |     | (571   | ) |     |     | (82    | )
|                                               |                                                                                                    |                                                  
|Cash flows from financing activities:          |                                                                                                    |                                                   |                                                          |      |              |      |              |      |              |        |         |     |              |      |              |       |              |        |              |      |     |      |   |      |     |      |   |      |     |        |   |    
|                                              
|                                              
|                                              
|                                              
|                                               | Deferred financing costs                                                                           |                                                   |                                                          | 1    |              |      |              |     |              |        |         |    |              |      |              |      |              |        |              | 1    |     |      |   |     |     |      |   |     |     |        |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               | Proceeds from mortgages and notes payable                                                          |                                                   |                                                          |     |              |      |              |     |              |        |         |    |              |      |              |      |              |        |              | 447  |     |      |   |     |     |      |   |     |     |        |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               | Principal payments on mortgages and notes payable                                                  |                                                   |                                                          |     |              |      |              |     |              |        |         |    |              |      |              |      |              |        |              |     |     |      |   |     |     |      |   |     |     |        |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               | Repurchase of units                                                                                |                                                   |                                                          |     |              |      |              |     |              |        |         |    |              |      |              |      |              |        |              |     |     |      |   |     |     |      |   |     |     |        |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               | Contributions from partners                                                                        |                                                   |                                                          |     |              |      |              |     |              |        |         |    |              |      |              |      |              |        |              |     |     |      |   |     |     |      |   |     |     |        |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               | Distributions to partners                                                                          |                                                   |                                                          |     |              |      |              |     |              |        |         |    |              |      |              |      |              |        |              |     |     |      |   |     |     |      |   |     |     |        |   |    |    
|                                               |                                                                                                    |                                                  
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) financing activities      |      |              | 1    |              |      |              |       |         |     |              |     |              |       |              |       |              |      |     | 447  |   |      |     |     |   |      |     |       |   |     |     |       |  
|                                               |                                                                                                    |                                                  
|Effect of exchange rate changes on cash        |                                                                                                    |                                                   |                                                         |      |              |      |             |      |              |        |        |     |              |      |             |       |              |        | (7           | )    |     |      |  |      |     |      |  |      |     |        |  |    
|                                               |                                                                                                    |                                                  
|Net change in cash                             |                                                                                                    |                                                   |                                                         |      |              |      |             |      |              |        |        |     |              |      |             |       |              |        |             |      |     |      |  |      |     |      |  |      |     |        |  |    
|                                              
|                                              
|                                              
|                                              
|Cash and cash equivalents, beginning of period |                                                                                                    |                                                   |                                                         |      |              |      |             |      |              |        |        |     |              |      |             |       |              |        |             |      |     |      |  |      |     |      |  |      |     |        |  |    
|                                               |                                                                                                    |                                                  
|Cash and cash equivalents, end of period       |                                                                                                    |                                                   |                                                         |      |              |      |             |      |              |        |        |     |              |      |             |       |              |        |             |      |     |      |  |      |     |      |  |      |     |        |  |    
|                                               |                                                                                                    |                                                  





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidated Statement of Cash Flows
For the Six months ended June 30, 2002
(in thousands)

|                                               |                                                                                                    |                                                   |                                                          |     |              |      |              |     |              |      |              |       |              |        |              |        |              |        |              |       |              |        |     |        |     |        |   |     |     |      |   |      |     |      |   |       |       |        |  
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- | ------------------------------------------------- | -------------------------------------------------------- | --- | ------------ | ---- | ------------ | --- | ------------ | ---- | ------------ | ----- | ------------ | ------ | ------------ | ------ | ------------ | ------ | ------------ | ----- | ------------ | ------ | --- | ------ | --- | ------ | - | --- | --- | ---- | - | ---- | --- | ---- | - | ----- | ----- | ------ | -
|                                               |                                                                                                    |                                                   |                                                          |     |              |      |              |     |              |      |              |       |              |        |              |        |              |        |              |       |              |        |     |        |     |        |   |     |     |      |   |      |     |      |  
|                                               |                                                                                                    |                                                   |                                                          |     | MeriStar Sub |      | MeriStar Sub |     | MeriStar Sub |      | MeriStar Sub |       | MeriStar Sub |        | MeriStar Sub |        | MeriStar Sub |        | MeriStar Sub |       | MeriStar Sub
|                                               |                                                                                                    |                                                   |                                                          |     | 1E, L.P.     |      | 5O, LLC      |     | 6M, Company  |      | 4B, L.P.     |       | 6C, LLC      |        | 2C, LLC      |        | 4G, L.P.     |        | 3B, LLC      |       | 5G, L.P.    
|                                               |                                                                                                    |                                                  
|Cash flows from operating activities:          |                                                                                                    |                                                   |                                                          |     |              |      |              |     |              |      |              |       |              |        |              |        |              |        |              |       |              |        |     |        |     |        |   |     |     |      |   |      |     |      |   |      
|                                              
|                                              
|                                              
|                                              
|                                               | Net Income (loss)                                                                                  |                                                   |                                                          | 562 |              |      |              | 307 |              |      |              | 1,480 |              |        |              | (239   | )            |        |              | 1,078 |              |        |     | (582   | )   |        |   | 662 |     |      |   | (18  | )   |      |   | 2,332 |      
|                                              
|                                              
|                                              
|                                              
|                                               | Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities: |                                                   |                                                          |     |              |      |              |     |              |      |              |       |              |        |              |        |              |        |              |       |              |        |     |        |     |        |   |     |     |      |   |      |     |      |   |       |      
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Depreciation and amortization                     |                                                          |     | 150          |      |              |     | 109          |      |              |       | 603          |        |              |        | 296          |        |              |       | 394          |        |     |        | 519 |        |   |     | 458 |      |   |      | 461 |      |   |       | 3,095 |       
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Equity in earnings                                |                                                          |     |             |      |              |     |             |      |              |       |             |        |              |        |             |        |              |       |             |        |     |        |    |        |   |     |    |      |   |      |    |      |   |       |      |       
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Loss on fair value of non-hedging derivatives     |                                                          |     |             |      |              |     |             |      |              |       |             |        |              |        |             |        |              |       |             |        |     |        |    |        |   |     |    |      |   |      |    |      |   |       |      |       
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Write off of deferred financing costs             |                                                          |     |             |      |              |     |             |      |              |       |             |        |              |        |             |        |              |       |             |        |     |        |    |        |   |     |    |      |   |      |    |      |   |       |      |       
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Minority interests                                |                                                          |     |             |      |              |     |             |      |              |       |             |        |              |        |             |        |              |       |             |        |     |        |    |        |   |     |    |      |   |      |    |      |   |       |      |       
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Amortization of unearned stock based compensation |                                                          |     |             |      |              |     |             |      |              |       |             |        |              |        |             |        |              |       |             |        |     |        |    |        |   |     |    |      |   |      |    |      |   |       |      |       
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Interest rate swaps marked to fair value          |                                                          |     |             |      |              |     |             |      |              |       |             |        |              |        |             |        |              |       |             |        |     |        |    |        |   |     |    |      |   |      |    |      |   |       |      |       
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Deferred income taxes                             |                                                          |     |             |      |              |     |             |      |              |       |             |        |              |        |             |        |              |       |             |        |     |        |    |        |   |     |    |      |   |      |    |      |   |       |      |       
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Changes in operating assets and liabilities:      |                                                          |     |             |      |              |     |             |      |              |       |             |        |              |        |             |        |              |       |             |        |     |        |    |        |   |     |    |      |   |      |    |      |   |       |      |       
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Accounts receivable, net                                 |     |              |     |              |     |              |     |              |       |              |       |              |        |              |       |              |       |              |       |     |        |     |       |   |     |     |     |   |      |     |     |   |       |       |       |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Prepaid expenses and other                               |     |              |     |              |     |              |     |              |       |              |       |              |        |              |       |              |       |              |       |     |        |     |       |   |     |     |     |   |      |     |     |   |       |       |       |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Due from/to MeriStar Hotels                              |     |              |     |              |     |              |     |              |       |              |       |              |        |              |       |              |       |              |       |     |        |     |       |   |     |     |     |   |      |     |     |   |       |       |       |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Accounts payable, accrued expenses and other liabilities |     |              | (3   | )            |     |              | 82   |              |       |              | 141    |              |        |              | (57    | )            |       |              | 59     |     |        |     | 131    |   |     |     | (256 | ) |      |     | 67   |   |       |       | 910    |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Accrued interest                                         |     |              |     |              |     |              |     |              |       |              |       |              |        |              |       |              |       |              |       |     |        |     |       |   |     |     |     |   |      |     |     |   |       |       |       |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Due from subsidiaries                                    |     |              | (646 | )            |     |              | (467 | )            |       |              | (2,077 | )            |        |              | 1,033  |              |       |              | (1,253 | )   |        |     | 562    |   |     |     | (836 | ) |      |     | (190 | ) |       |       | (5,473 | )
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Income taxes payable                                     |     |              |     |              |     |              |     |              |       |              |       |              |        |              |       |              |       |              |       |     |        |     |       |   |     |     |     |   |      |     |     |   |       |       |       |  
|                                               |                                                                                                    |                                                  
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) operating activities      |     |              | 62   |              |     |              | 30   |              |       |              | 147    |              |        |              | 1,033  |              |       |              | 279    |     |        |     | 631    |   |     |     | 29   |   |      |     | 320  |   |       |       | 864    |  
|                                               |                                                                                                    |                                                  
|Cash flows from investing activities:          |                                                                                                    |                                                   |                                                          |     |              |      |              |     |              |      |              |       |              |        |              |        |              |        |              |       |              |        |     |        |     |        |   |     |     |      |   |      |     |      |   |      
|                                              
|                                              
|                                              
|                                              
|                                               | Investment in hotel properties, net                                                                |                                                   |                                                          | (62 | )            |      |              | (30 | )            |      |              | (147  | )            |        |              | (1,033 | )            |        |              | (279  | )            |        |     | (1,397 | )   |        |   | (29 | )   |      |   | (320 | )   |      |   | (859  | )    
|                                              
|                                              
|                                              
|                                              
|                                               | Proceeds from disposition of assets                                                                |                                                   |                                                          |    |              |      |              |    |              |      |              |      |              |        |              |       |              |        |              |      |              |        |     |       |     |        |   |    |     |      |   |     |     |      |   |      |      
|                                              
|                                              
|                                              
|                                              
|                                               | Note receivable                                                                                    |                                                   |                                                          |    |              |      |              |    |              |      |              |      |              |        |              |       |              |        |              |      |              |        |     |       |     |        |   |    |     |      |   |     |     |      |   |      |      
|                                              
|                                              
|                                              
|                                              
|                                               | Change in restricted cash                                                                          |                                                   |                                                          |    |              |      |              |    |              |      |              |      |              |        |              |       |              |        |              |      |              |        |     |       |     |        |   |    |     |      |   |     |     |      |   |      |      
|                                               |                                                                                                    |                                                  
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) investing activities      |     |              | (62  | )            |     |              | (30  | )            |       |              | (147   | )            |        |              | (1,033 | )            |       |              | (279   | )   |        |     | (1,397 | ) |     |     | (29  | ) |      |     | (320 | ) |       |       | (859   | )
|                                               |                                                                                                    |                                                  
|Cash flows from financing activities:          |                                                                                                    |                                                   |                                                          |     |              |      |              |     |              |      |              |       |              |        |              |        |              |        |              |       |              |        |     |        |     |        |   |     |     |      |   |      |     |      |   |      
|                                              
|                                              
|                                              
|                                              
|                                               | Deferred financing costs                                                                           |                                                   |                                                          |    |              |      |              |    |              |      |              |      |              |        |              |       |              |        |              |      |              |        |     | 1      |     |        |   |    |     |      |   |     |     |      |   | (5    | )    
|                                              
|                                              
|                                              
|                                              
|                                               | Proceeds from mortgages and notes payable                                                          |                                                   |                                                          |    |              |      |              |    |              |      |              |      |              |        |              |       |              |        |              |      |              |        |     | 780    |     |        |   |    |     |      |   |     |     |      |   |      |      
|                                              
|                                              
|                                              
|                                              
|                                               | Principal payments on mortgages and notes payable                                                  |                                                   |                                                          |    |              |      |              |    |              |      |              |      |              |        |              |       |              |        |              |      |              |        |     |       |     |        |   |    |     |      |   |     |     |      |   |      |      
|                                              
|                                              
|                                              
|                                              
|                                               | Repurchase of units                                                                                |                                                   |                                                          |    |              |      |              |    |              |      |              |      |              |        |              |       |              |        |              |      |              |        |     |       |     |        |   |    |     |      |   |     |     |      |   |      |      
|                                              
|                                              
|                                              
|                                              
|                                               | Contributions from partners                                                                        |                                                   |                                                          |    |              |      |              |    |              |      |              |      |              |        |              |       |              |        |              |      |              |        |     |       |     |        |   |    |     |      |   |     |     |      |   |      |      
|                                              
|                                              
|                                              
|                                              
|                                               | Distributions to partners                                                                          |                                                   |                                                          |    |              |      |              |    |              |      |              |      |              |        |              |       |              |        |              |      |              |        |     |       |     |        |   |    |     |      |   |     |     |      |   |      |      
|                                               |                                                                                                    |                                                  
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) financing activities      |     |              |     |              |     |              |     |              |       |              |       |              |        |              |       |              |       |              |       |     |        |     | 780    |   |     |     |     |   |      |     |     |   |       |       | (5     | )
|                                               |                                                                                                    |                                                  
|Effect of exchange rate changes on cash        |                                                                                                    |                                                   |                                                         |     |              |      |             |     |              |      |             |       |              |        |             |        |              |        |             |       |              |        | (14 | )      |     |        |  |     |     |      |  |      |     |      |  |      
|                                               |                                                                                                    |                                                  
|Net change in cash                             |                                                                                                    |                                                   |                                                         |     |              |      |             |     |              |      |             |       |              |        |             |        |              |        |             |       |              |        |    |        |     |        |  |     |     |      |  |      |     |      |  |      
|                                              
|                                              
|                                              
|                                              
|Cash and cash equivalents, beginning of period |                                                                                                    |                                                   |                                                         |     |              |      |             |     |              |      |             |       |              |        |             |        |              |        |             |       |              |        |    |        |     |        |  |     |     |      |  |      |     |      |  |      
|                                               |                                                                                                    |                                                  
|Cash and cash equivalents, end of period       |                                                                                                    |                                                   |                                                         |     |              |      |             |     |              |      |             |       |              |        |             |        |              |        |             |       |              |        |    |        |     |        |  |     |     |      |  |      |     |      |  |      
|                                               |                                                                                                    |                                                  





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidated Statement of Cash Flows
For the Six months ended June 30, 2002
(in thousands)

|                                               |                                                                                                    |                                                   |                                                          |     |              |      |              |        |              |        |              |      |              |      |              |      |               |        |              |     |              |      |       |     |     |        |        |        |          |        |   |         |        |          |        |          |        |         |  
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- | ------------------------------------------------- | -------------------------------------------------------- | --- | ------------ | ---- | ------------ | ------ | ------------ | ------ | ------------ | ---- | ------------ | ---- | ------------ | ---- | ------------- | ------ | ------------ | --- | ------------ | ---- | ----- | --- | --- | ------ | ------ | ------ | -------- | ------ | - | ------- | ------ | -------- | ------ | -------- | ------ | ------- | -
|                                               |                                                                                                    |                                                   |                                                          |     |              |      |              |        |              |        |              |      |              |      |              |      |               |        |              |     |              |      |       |     |     |        |        |        | MeriStar |        |   |         |        |          |        |          |       
|                                               |                                                                                                    |                                                   |                                                          |     | MeriStar Sub |      | MeriStar Sub |        | MeriStar Sub |        | MeriStar Sub |      | MeriStar Sub |      | MeriStar Sub |      | Hotel Lessee, |        |              |     |              |      | Total
|                                               |                                                                                                    |                                                   |                                                          |     | 5P, LLC      |      | 5J, LLC      |        | 5Q, LLC      |        | 5A, LLC      |      | 8D, LLC      |      | 4J, LLC      |      | Inc.          |        | Eliminations |     | Consolidated
|                                               |                                                                                                    |                                                  
|Cash flows from operating activities:          |                                                                                                    |                                                   |                                                          |     |              |      |              |        |              |        |              |      |              |      |              |      |               |        |              |     |              |      |       |     |     |        |        |        |          |        |   |         |        |          |        |         
|                                              
|                                              
|                                              
|                                              
|                                               | Net Income (loss)                                                                                  |                                                   |                                                          | 283 |              |      |              | 2,790  |              |        |              | 862  |              |      |              | 685  |               |        |              | 327 |              |      |       | 868 |     |        |        | 2,183  |          |        |   | (58,834 | )      |          |        | (6,821   | )     
|                                              
|                                              
|                                              
|                                              
|                                               | Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities: |                                                   |                                                          |     |              |      |              |        |              |        |              |      |              |      |              |      |               |        |              |     |              |      |       |     |     |        |        |        |          |        |   |         |        |          |        |          |       
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Depreciation and amortization                     |                                                          |     | 1            |      |              |        | 1,733        |        |              |      | 240          |      |              |      | 690           |        |              |     | 634          |      |       |     | 671 |        |        |        | 1,083    |        |   |         |       |          |        |          | 61,731 |        
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Equity in earnings                                |                                                          |     |              |      |              |        |              |        |              |      |              |      |              |      |               |        |              |     |              |      |       |     |     |        |        |        |          |        |   |         | 58,834 |          |        |          |       |        
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Loss on fair value of non-hedging derivatives     |                                                          |     |             |      |              |        |             |        |              |      |             |      |              |      |              |        |              |     |             |      |       |     |    |        |        |        |         |        |   |         |       |          |        |          | 4,735  |        
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Write off of deferred financing costs             |                                                          |     |             |      |              |        |             |        |              |      |             |      |              |      |              |        |              |     |             |      |       |     |    |        |        |        |         |        |   |         |       |          |        |          | 1,529  |        
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Minority interests                                |                                                          |     |             |      |              |        |             |        |              |      |             |      |              |      |              |        |              |     |             |      |       |     |    |        |        |        |         |        |   |         |       |          |        |          | 8      |        
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Amortization of unearned stock based compensation |                                                          |     |             |      |              |        |             |        |              |      |             |      |              |      |              |        |              |     |             |      |       |     |    |        |        |        |         |        |   |         |       |          |        |          | 1,920  |        
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Interest rate swaps marked to fair value          |                                                          |     |              |      |              |        |              |        |              |      |              |      |              |      |               |        |              |     |              |      |       |     |     |        |        |        |          |        |   |         |        |          |        |          | (2,905 | )      
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Deferred income taxes                             |                                                          |     |             |      |              |        |             |        |              |      |             |      |              |      |              |        |              |     |             |      |       |     |    |        |        |        |         |        |   |         |       |          |        |          | (332   | )      
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    | Changes in operating assets and liabilities:      |                                                          |     |             |      |              |        |             |        |              |      |             |      |              |      |              |        |              |     |             |      |       |     |    |        |        |        |         |        |   |         |       |          |        |          |        |        
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Accounts receivable, net                                 |     |              | 319  |              |        |              |       |              |      |              |     |              |      |               |       |              |     |              |     |       |     |     | 31     |        |        |          | (1,160 | ) |         |        |         |        |          |        | (4,817  | )
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Prepaid expenses and other                               |     |              |     |              |        |              | 483    |              |      |              |     |              |      |               |       |              |     |              |     |       |     |     |       |        |        |          | (923   | ) |         |        |         |        |          |        | 3,098   |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Due from/to MeriStar Hotels                              |     |              |     |              |        |              |       |              |      |              |     |              |      |               |       |              |     |              |     |       |     |     |       |        |        |          | 5,457  |   |         |        |         |        |          |        | 4,900   |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Accounts payable, accrued expenses and other liabilities |     |              | 18   |              |        |              | 1,269  |              |      |              | 228  |              |      |               | 362    |              |     |              | (15  | )     |     |     | (63    | )      |        |          | 834    |   |         |        |         |        |          |        | (2,862  | )
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Accrued interest                                         |     |              |     |              |        |              |       |              |      |              |     |              |      |               |       |              |     |              |     |       |     |     |       |        |        |          | (19    | ) |         |        |         |        |          |        | 8,208   |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Due from subsidiaries                                    |     |              | (582 | )            |        |              | (4,726 | )            |      |              | (909 | )            |      |               | (1,564 | )            |     |              | (894 | )     |     |     | (1,447 | )      |        |          | 13,704 |   |         |        | (271,567 | )      |          |        |        |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |                                                   | Income taxes payable                                     |     |              |     |              |        |              |       |              |      |              |     |              |      |               |       |              |     |              |     |       |     |     |       |        |        |          |       |   |         |        |         |        |          |        | (269    | )
|                                               |                                                                                                    |                                                  
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) operating activities      |     |              | 39   |              |        |              | 1,549  |              |      |              | 421  |              |      |               | 173    |              |     |              | 51   |       |     |     | 60     |        |        |          | 21,159 |   |         |        | (271,567 | )      |          |        | 68,123  |  
|                                               |                                                                                                    |                                                  
|Cash flows from investing activities:          |                                                                                                    |                                                   |                                                          |     |              |      |              |        |              |        |              |      |              |      |              |      |               |        |              |     |              |      |       |     |     |        |        |        |          |        |   |         |        |          |        |         
|                                              
|                                              
|                                              
|                                              
|                                               | Investment in hotel properties, net                                                                |                                                   |                                                          | (39 | )            |      |              | (1,549 | )            |        |              | (421 | )            |      |              | (174 | )             |        |              | (51 | )            |      |       | (60 | )   |        |        | (750   | )        |        |   |        |        |          |        | (24,696  | )     
|                                              
|                                              
|                                              
|                                              
|                                               | Proceeds from disposition of assets                                                                |                                                   |                                                          |    |              |      |              |       |              |        |              |     |              |      |              |     |               |        |              |    |              |      |       |    |     |        |        |       |          |        |   |        |        |          |        |         |       
|                                              
|                                              
|                                              
|                                              
|                                               | Note receivable                                                                                    |                                                   |                                                          |    |              |      |              |       |              |        |              |     |              |      |              |     |               |        |              |    |              |      |       |    |     |        |        | (613   | )        |        |   | (7,455  | )      |          |        | (10,000  | )     
|                                              
|                                              
|                                              
|                                              
|                                               | Change in restricted cash                                                                          |                                                   |                                                          |    |              |      |              |       |              |        |              |     |              |      |              |     |               |        |              |    |              |      |       |    |     |        |        |       |          |        |   |        |        |          |        | 4,384    |       
|                                               |                                                                                                    |                                                  
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) investing activities      |     |              | (39  | )            |        |              | (1,549 | )            |      |              | (421 | )            |      |               | (174   | )            |     |              | (51  | )     |     |     | (60    | )      |        |          | (1,363 | ) |         |        | (7,455   | )      |          |        | (30,312 | )
|                                               |                                                                                                    |                                                  
|Cash flows from financing activities:          |                                                                                                    |                                                   |                                                          |     |              |      |              |        |              |        |              |      |              |      |              |      |               |        |              |     |              |      |       |     |     |        |        |        |          |        |   |         |        |          |        |         
|                                              
|                                              
|                                              
|                                              
|                                               | Deferred financing costs                                                                           |                                                   |                                                          |    |              |      |              |       |              |        |              |     |              |      |              |     |               |        |              |    |              |      |       |    |     |        |        |       |          |        |   |        |        |          |        | (3,571   | )     
|                                              
|                                              
|                                              
|                                              
|                                               | Proceeds from mortgages and notes payable                                                          |                                                   |                                                          |    |              |      |              |       |              |        |              |     |              |      |              |     |               |        |              |    |              |      |       |    |     |        |        | (5,114 | )        |        |   | 279,022 |        |          |        | 234,841  |       
|                                              
|                                              
|                                              
|                                              
|                                               | Principal payments on mortgages and notes payable                                                  |                                                   |                                                          |    |              |      |              |       |              |        |              |     |              |      |              |     |               |        |              |    |              |      |       |    |     |        |        | (4,000 | )        |        |   |        |        |          |        | (265,840 | )     
|                                              
|                                              
|                                              
|                                              
|                                               | Repurchase of units                                                                                |                                                   |                                                          |    |              |      |              |       |              |        |              |     |              |      |              |     |               |        |              |    |              |      |       |    |     |        |        |       |          |        |   |        |        |          |        | (1,193   | )     
|                                              
|                                              
|                                              
|                                              
|                                               | Contributions from partners                                                                        |                                                   |                                                          |    |              |      |              |       |              |        |              |     |              |      |              |     |               |        |              |    |              |      |       |    |     |        |        |       |          |        |   |        |        |          |        | 3,156    |       
|                                              
|                                              
|                                              
|                                              
|                                               | Distributions to partners                                                                          |                                                   |                                                          |    |              |      |              |       |              |        |              |     |              |      |              |     |               |        |              |    |              |      |       |    |     |        |        |       |          |        |   |        |        |          |        | (1,212   | )     
|                                               |                                                                                                    |                                                  
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) financing activities      |     |              |     |              |        |              |       |              |      |              |     |              |      |               |       |              |     |              |     |       |     |     |       |        |        |          | (9,114 | ) |         |        | 279,022  |        |          |        | (33,819 | )
|                                               |                                                                                                    |                                                  
|Effect of exchange rate changes on cash        |                                                                                                    |                                                   |                                                         |     |              |      |             |        |              |        |             |      |              |      |             |      |               |        |             |     |              |      |      |     |     |        |       |        |          |        |  |         |        |          | (28    | )       
|                                               |                                                                                                    |                                                  
|Net change in cash                             |                                                                                                    |                                                   |                                                         |     |              |      |             |        |              |        |             |      |              |      |             |      |               |        |             |     |              |      |      |     |     |        | 10,681 |        |          |        |  |         |        |          | 3,964  |         
|                                              
|                                              
|                                              
|                                              
|Cash and cash equivalents, beginning of period |                                                                                                    |                                                   |                                                         |     |              |      |             |        |              |        |             |      |              |      |             |      |               |        |             |     |              |      |      |     |     |        | 16,643 |        |          |        |  |         |        |          | 23,441 |         
|                                               |                                                                                                    |                                                  
|Cash and cash equivalents, end of period       |                                                                                                    |                                                   |                                                         |     |              |      |             |        |              |        |             |      |              |      |             |      |               |        |             |     |              |      |      |     |     |        | 27,324 |        |          |        |  |         |        |          | 27,405 |         
|                                               |                                                                                                    |                                                  





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Balance Sheet
December 31, 2001
(in thousands)

|                                  |                                                          |  |             |           |              |  |           |           |         |  |          |    |          |  |          |       |          |  |       |       |   |  |        |        |   |  |        |        |   |  |    |    | 
|--------------------------------- | -------------------------------------------------------- |  | ----------- | --------- | ------------ |  | --------- | --------- | ------- |  | -------- | -- | -------- |  | -------- | ----- | -------- |  | ----- | ----- | - |  | ------ | ------ | - |  | ------ | ------ | - |  | -- | -- | 
|                                  |                                                          |  | MeriStar    |           | Non-         |  | MeriStar  |           | AGH     |  | MeriStar |    | MeriStar |  | MeriStar |       | MeriStar
|                                  |                                                          |  | Hospitality |           | Guarantor    |  | Sub 7C,   |           | Upreit, |  | Sub 5N,  |    | Sub 8A,  |  | Sub 8F,  |       | Sub 8G, 
|                                  |                                                          |  | OP, L.P.    |           | Subsidiaries |  | LLC       |           | LLC     |  | LLC      |    | LLC      |  | L.P.     |       | LLC     
|Assets                            |                                                          |  |             |           |              |  |           |           |         |  |          |    |          |  |          |       |          |  |       |       |   |  |        |        |   |  |        |        |   |  |    |   
|                                 
|                                 
|                                 
|                                 
|                                  | Investment in hotel properties                           |  |             | 14,662    |              |  |           | 1,547,038 |         |  |          |   |          |  |          |      |          |  |       | 4,074 |   |  |        | 7,306  |   |  |        | 11,335 |   |  |    |   | 
|                                 
|                                 
|                                 
|                                 
|                                  | Accumulated depreciation                                 |  |             | (5,085    | )            |  |           | (184,188  | )       |  |          |   |          |  |          |      |          |  |       | (408  | ) |  |        | (936   | ) |  |        | (1,481 | ) |  |    |   | 
|                                  |                                                          | 
|                                  |                                                          |  | 9,577       |           |              |  | 1,362,850 |           |         |  |         |    |          |  |         |       |          |  | 3,666 |       |   |  | 6,370  |        |   |  | 9,854  |        |   |  |   |   
|                                 
|                                 
|                                 
|                                 
|                                  |                                                          |  |             |           |              |  |           |           |         |  |          |    |          |  |          |       |          |  |       |       |   |  |        |        |   |  |        |        |   |  |    |   
|                                 
|                                 
|                                 
|                                 
|                                  | Cash and cash equivalents                                |  |             | 6,798     |              |  |           |          |         |  |          |   |          |  |          |      |          |  |       |       |   |  |        |       |   |  |        |       |   |  |    |   | 
|                                 
|                                 
|                                 
|                                 
|                                  | Accounts receivable, net                                 |  |             | 4,092     |              |  |           | 1,183     |         |  |          |   |          |  |          |      |          |  |       | (16   | ) |  |        | (32    | ) |  |        | (20    | ) |  |    |   | 
|                                 
|                                 
|                                 
|                                 
|                                  | Prepaid expenses and other                               |  |             | 3,982     |              |  |           | 612       |         |  |          |   |          |  |          |      |          |  |       |       |   |  |        |       |   |  |        | 21     |   |  |    |   | 
|                                 
|                                 
|                                 
|                                 
|                                  | Note receivable                                          |  |             | 127,550   |              |  |           | (389      | )       |  |          |   |          |  |          |      |          |  |       |       |   |  |        |       |   |  |        |       |   |  |    |   | 
|                                 
|                                 
|                                 
|                                 
|                                  | Due from MeriStar Hotels & Resorts                       |  |             | 12,392    |              |  |           |          |         |  |          |   |          |  |          |      |          |  |       |       |   |  |        |       |   |  |        |       |   |  |    |   | 
|                                 
|                                 
|                                 
|                                 
|                                  | Due from subsidiaries                                    |  |             | (304,270  | )            |  |           | (7,275    | )       |  |          |   |          |  |          | 66    |          |  |       | 2,809 |   |  |        | 4,720  |   |  |        | 3,889  |   |  |    | 82 | 
|                                 
|                                 
|                                 
|                                 
|                                  | Investments in affiliates                                |  |             | 2,714,272 |              |  |           | 8,242     |         |  |          | 32 |          |  |          | 3,056 |          |  |       |       |   |  |        |       |   |  |        |       |   |  |    |   | 
|                                 
|                                 
|                                 
|                                 
|                                  | Restricted cash                                          |  |             | 13,751    |              |  |           | 7,438     |         |  |          |   |          |  |          |      |          |  |       |       |   |  |        |       |   |  |        | 115    |   |  |    |   | 
|                                 
|                                 
|                                 
|                                 
|                                  | Intangible assets, net                                   |  |             | 19,791    |              |  |           | 757       |         |  |          |   |          |  |          |      |          |  |       |       |   |  |        |       |   |  |        |       |   |  |    |   | 
|                                  |                                                          | 
|                                  |                                                          |  | 2,607,935   |           |              |  | 1,373,418 |           |         |  | 32       |    |          |  | 3,122    |       |          |  | 6,459 |       |   |  | 11,058 |        |   |  | 13,859 |        |   |  | 82 |   
|                                  |                                                          | 
|Liabilities and Partners capital |                                                          |  |             |           |              |  |           |           |         |  |          |    |          |  |          |       |          |  |       |       |   |  |        |        |   |  |        |        |   |  |    |   
|                                 
|                                 
|                                 
|                                 
|                                  | Accounts payable, accrued expenses and other liabilities |  |             | 17,678    |              |  |           | 14,060    |         |  |          |   |          |  |          |      |          |  |       | 14    |   |  |        | (42    | ) |  |        | 160    |   |  |    |   | 
|                                 
|                                 
|                                 
|                                 
|                                  | Accrued interest                                         |  |             | 40,913    |              |  |           | 4,022     |         |  |          |   |          |  |          |      |          |  |       |       |   |  |        |       |   |  |        |       |   |  |    |   | 
|                                 
|                                 
|                                 
|                                 
|                                  | Income taxes payable                                     |  |             | 285       |              |  |           |          |         |  |          |   |          |  |          |      |          |  |       |       |   |  |        |       |   |  |        |       |   |  |    |   | 
|                                 
|                                 
|                                 
|                                 
|                                  | Distributions payable                                    |  |             | 1,090     |              |  |           |          |         |  |          |   |          |  |          |      |          |  |       |       |   |  |        |       |   |  |        |       |   |  |    |   | 
|                                 
|                                 
|                                 
|                                 
|                                  | Deferred income taxes                                    |  |             | 7,467     |              |  |           |          |         |  |          |   |          |  |          |      |          |  |       |       |   |  |        |       |   |  |        |       |   |  |    |   | 
|                                 
|                                 
|                                 
|                                 
|                                  | Interest rate swaps                                      |  |             | 12,100    |              |  |           |          |         |  |          |   |          |  |          |      |          |  |       |       |   |  |        |       |   |  |        |       |   |  |    |   | 
|                                 
|                                 
|                                 
|                                 
|                                  | Notes payable to MeriStar                                |  |             | 357,117   |              |  |           |          |         |  |          |   |          |  |          |      |          |  |       |       |   |  |        |       |   |  |        |       |   |  |    |   | 
|                                 
|                                 
|                                 
|                                 
|                                  | Long-term debt                                           |  |             | 1,056,444 |              |  |           | 286,512   |         |  |          |   |          |  |          |      |          |  |       |       |   |  |        |       |   |  |        |       |   |  |    |   | 
|                                  |                                                          | 
|Total liabilities                 |                                                          |  | 1,493,094   |           |              |  | 304,594   |           |         |  |         |    |          |  |         |       |          |  | 14    |       |   |  | (42    | )      |   |  | 160    |        |   |  |   |   
|                                  |                                                          | 
|                                  |                                                          |  |             |           |              |  |           |           |         |  |          |    |          |  |          |       |          |  |       |       |   |  |        |        |   |  |        |        |   |  |    |   
|                                 
|                                 
|                                 
|                                 
|                                  | Minority interests                                       |  |             | 2,639     |              |  |           |          |         |  |          |   |          |  |          |      |          |  |       |       |   |  |        |       |   |  |        |       |   |  |    |   | 
|                                 
|                                 
|                                 
|                                 
|                                  | Redeemable OP units at redemption value                  |  |             | 67,012    |              |  |           |          |         |  |          |   |          |  |          |      |          |  |       |       |   |  |        |       |   |  |        |       |   |  |    |   | 
|                                 
|                                 
|                                 
|                                 
|                                  | Partners capital                                        |  |             | 1,045,190 |              |  |           | 1,068,824 |         |  |          | 32 |          |  |          | 3,122 |          |  |       | 6,445 |   |  |        | 11,100 |   |  |        | 13,699 |   |  |    | 82 | 
|                                  |                                                          | 
|                                  |                                                          |  | 2,607,935   |           |              |  | 1,373,418 |           |         |  | 32       |    |          |  | 3,122    |       |          |  | 6,459 |       |   |  | 11,058 |        |   |  | 13,859 |        |   |  | 82 |   
|                                  |                                                          | 





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Balance Sheet
December 31, 2001
(in thousands)

|                                  |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |   |     |  
|--------------------------------- | -------------------------------------------------------- |  | -------- | ------ | -------- |  | -------- | ------ | -------- |  | -------- | ------ | -------- |  | -------- | ------ | -------- |  | ------ | ------ | - |  | ------ | ------ | - |  | ------ | ------ | - |  | - | --- | -
|                                  |                                                          |  | MeriStar |        | MeriStar |  | MeriStar |        | MeriStar |  | MeriStar |        | MeriStar |  | MeriStar |        | MeriStar
|                                  |                                                          |  | Sub 6H,  |        | Sub 8B,  |  | Sub 1C,  |        | Sub 8E,  |  | Sub 7F,  |        | Sub 5L,  |  | Sub 3C,  |        | Sub 5R, 
|                                  |                                                          |  | L.P.     |        | LLC      |  | L.P.     |        | LLC      |  | LLC      |        | LLC      |  | LLC      |        | LLC     
|Assets                            |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |   |    
|                                 
|                                 
|                                 
|                                 
|                                  | Investment in hotel properties                           |  |          | 13,569 |          |  |          | 80,972 |          |  |          | 24,925 |          |  |          | 15,157 |          |  |        | 11,985 |   |  |        | 11,292 |   |  |        | 17,274 |   |  |   |    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accumulated depreciation                                 |  |          | (1,445 | )        |  |          | (7,509 | )        |  |          | (3,865 | )        |  |          | (1,850 | )        |  |        | (1,989 | ) |  |        | (368   | ) |  |        | (2,302 | ) |  |   |    |  
|                                  |                                                          | 
|                                  |                                                          |  | 12,124   |        |          |  | 73,463   |        |          |  | 21,060   |        |          |  | 13,307   |        |          |  | 9,996  |        |   |  | 10,924 |        |   |  | 14,972 |        |   |  |  |    
|                                 
|                                 
|                                 
|                                 
|                                  |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |   |    
|                                 
|                                 
|                                 
|                                 
|                                  | Cash and cash equivalents                                |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |   |    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accounts receivable, net                                 |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |   |    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Prepaid expenses and other                               |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |   |    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Note receivable                                          |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |   |    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Due from MeriStar Hotels & Resorts                       |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |   |    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Due from subsidiaries                                    |  |          | 4,467  |          |  |          | 21,498 |          |  |          | (3,297 | )        |  |          | 4,323  |          |  |        | 3,499  |   |  |        | 3,090  |   |  |        | 2,741  |   |  |   | (43 | )
|                                 
|                                 
|                                 
|                                 
|                                  | Investments in affiliates                                |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |   | 43  |  
|                                 
|                                 
|                                 
|                                 
|                                  | Restricted cash                                          |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |   |    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Intangible assets, net                                   |  |          |       |          |  |          | 52     |          |  |          | 2      |          |  |          | 9      |          |  |        |       |   |  |        |       |   |  |        | 59     |   |  |   |    |  
|                                  |                                                          | 
|                                  |                                                          |  | 16,591   |        |          |  | 95,013   |        |          |  | 17,765   |        |          |  | 17,639   |        |          |  | 13,495 |        |   |  | 14,014 |        |   |  | 17,772 |        |   |  |  |    
|                                  |                                                          | 
|Liabilities and Partners capital |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |   |    
|                                 
|                                 
|                                 
|                                 
|                                  | Accounts payable, accrued expenses and other liabilities |  |          | 184    |          |  |          | 2,412  |          |  |          | 45     |          |  |          | 8      |          |  |        | 168    |   |  |        | 3      |   |  |        | 170    |   |  |   |    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accrued interest                                         |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |   |    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Income taxes payable                                     |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |   |    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Distributions payable                                    |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |   |    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Deferred income taxes                                    |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |   |    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Interest rate swaps                                      |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |   |    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Notes payable to MeriStar                                |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |   |    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Long-term debt                                           |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |   |    |  
|                                  |                                                          | 
|Total liabilities                 |                                                          |  | 184      |        |          |  | 2,412    |        |          |  | 45       |        |          |  | 8        |        |          |  | 168    |        |   |  | 3      |        |   |  | 170    |        |   |  |  |    
|                                  |                                                          | 
|                                  |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |   |    
|                                 
|                                 
|                                 
|                                 
|                                  | Minority interests                                       |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |   |    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Redeemable OP units at redemption value                  |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |   |    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Partners capital                                        |  |          | 16,407 |          |  |          | 92,601 |          |  |          | 17,720 |          |  |          | 17,631 |          |  |        | 13,327 |   |  |        | 14,011 |   |  |        | 17,602 |   |  |   |    |  
|                                  |                                                          | 
|                                  |                                                          |  | 16,591   |        |          |  | 95,013   |        |          |  | 17,765   |        |          |  | 17,639   |        |          |  | 13,495 |        |   |  | 14,014 |        |   |  | 17,772 |        |   |  |  |    
|                                  |                                                          | 





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Balance Sheet
December 31, 2001
(in thousands)

|                                  |                                                          |  |          |       |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |        |        |  
|--------------------------------- | -------------------------------------------------------- |  | -------- | ----- | -------- |  | -------- | ------ | -------- |  | -------- | ------ | -------- |  | -------- | ------ | -------- |  | ------ | ------ | - |  | ------ | ------ | - |  | ------ | ------ | - |  | ------ | ------ | -
|                                  |                                                          |  | Old      |       |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |       
|                                  |                                                          |  | MeriStar |       | MeriStar |  | MeriStar |        | MeriStar |  | MeriStar |        | MeriStar |  | MeriStar |        | MeriStar
|                                  |                                                          |  | Sub 8A,  |       | Sub 6D,  |  | Sub 6E,  |        | Sub 4E,  |  | Sub 1B,  |        | Sub 5F,  |  | Sub 6G,  |        | Sub 8C, 
|                                  |                                                          |  | LLC      |       | LLC      |  | LLC      |        | L.P.     |  | LLC      |        | L.P.     |  | LLC      |        | LLC     
|Assets                            |                                                          |  |          |       |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |        |       
|                                 
|                                 
|                                 
|                                 
|                                  | Investment in hotel properties                           |  |          | (1    | )        |  |          | 17,266 |          |  |          | 43,931 |          |  |          | 24,547 |          |  |        | 18,110 |   |  |        | 30,953 |   |  |        | 22,050 |   |  |        | 36,668 |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accumulated depreciation                                 |  |          |      |          |  |          | (1,820 | )        |  |          | (6,642 | )        |  |          | (3,072 | )        |  |        | (2,927 | ) |  |        | (3,363 | ) |  |        | (3,329 | ) |  |        | (3,917 | )
|                                  |                                                          | 
|                                  |                                                          |  | (1       | )     |          |  | 15,446   |        |          |  | 37,289   |        |          |  | 21,475   |        |          |  | 15,183 |        |   |  | 27,590 |        |   |  | 18,721 |        |   |  | 32,751 |       
|                                 
|                                 
|                                 
|                                 
|                                  |                                                          |  |          |       |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |        |       
|                                 
|                                 
|                                 
|                                 
|                                  | Cash and cash equivalents                                |  |          |      |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accounts receivable, net                                 |  |          |      |          |  |          | 115    |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Prepaid expenses and other                               |  |          | 1     |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Note receivable                                          |  |          |      |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Due from MeriStar Hotels & Resorts                       |  |          |      |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Due from subsidiaries                                    |  |          | 7,918 |          |  |          | 5,147  |          |  |          | 13,660 |          |  |          | 2,005  |          |  |        | 10,480 |   |  |        | 8,695  |   |  |        | 3,410  |   |  |        | 3,419  |  
|                                 
|                                 
|                                 
|                                 
|                                  | Investments in affiliates                                |  |          |      |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Restricted cash                                          |  |          |      |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Intangible assets, net                                   |  |          |      |          |  |          |       |          |  |          |       |          |  |          | 7      |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        | 3      |  
|                                  |                                                          | 
|                                  |                                                          |  | 7,918    |       |          |  | 20,708   |        |          |  | 50,949   |        |          |  | 23,487   |        |          |  | 25,663 |        |   |  | 36,285 |        |   |  | 22,131 |        |   |  | 36,173 |       
|                                  |                                                          | 
|Liabilities and Partners capital |                                                          |  |          |       |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |        |       
|                                 
|                                 
|                                 
|                                 
|                                  | Accounts payable, accrued expenses and other liabilities |  |          | 46    |          |  |          | 101    |          |  |          | (295   | )        |  |          | 456    |          |  |        | (11    | ) |  |        | 94     |   |  |        | 151    |   |  |        | (21    | )
|                                 
|                                 
|                                 
|                                 
|                                  | Accrued interest                                         |  |          |      |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Income taxes payable                                     |  |          |      |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Distributions payable                                    |  |          |      |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Deferred income taxes                                    |  |          |      |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Interest rate swaps                                      |  |          |      |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Notes payable to MeriStar                                |  |          |      |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Long-term debt                                           |  |          |      |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        | 48     |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                  |                                                          | 
|Total liabilities                 |                                                          |  | 46       |       |          |  | 101      |        |          |  | (295     | )      |          |  | 456      |        |          |  | 37     |        |   |  | 94     |        |   |  | 151    |        |   |  | (21    | )     
|                                  |                                                          | 
|                                  |                                                          |  |          |       |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |        |       
|                                 
|                                 
|                                 
|                                 
|                                  | Minority interests                                       |  |          |      |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Redeemable OP units at redemption value                  |  |          |      |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Partners capital                                        |  |          | 7,872 |          |  |          | 20,607 |          |  |          | 51,244 |          |  |          | 23,031 |          |  |        | 25,626 |   |  |        | 36,191 |   |  |        | 21,980 |   |  |        | 36,194 |  
|                                  |                                                          | 
|                                  |                                                          |  | 7,918    |       |          |  | 20,708   |        |          |  | 50,949   |        |          |  | 23,487   |        |          |  | 25,663 |        |   |  | 36,285 |        |   |  | 22,131 |        |   |  | 36,173 |       
|                                  |                                                          | 





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Balance Sheet
December 31, 2001
(in thousands)

|                                  |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |         |        |          |  |        |        |   |  |        |        |   |  |          |        |   |  |        |        |  
|--------------------------------- | -------------------------------------------------------- |  | -------- | ------ | -------- |  | -------- | ------ | -------- |  | -------- | ------ | -------- |  | ------- | ------ | -------- |  | ------ | ------ | - |  | ------ | ------ | - |  | -------- | ------ | - |  | ------ | ------ | -
|                                  |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |         |        |          |  |        |        |   |  |        |        |   |  | MeriStar |        |   |  |       
|                                  |                                                          |  | MeriStar |        | MeriStar |  | MeriStar |        | MeriStar |  | MeriStar |        | MeriStar |  | Sub 7A  |        | MeriStar
|                                  |                                                          |  | Sub 4C,  |        | Sub 4H,  |  | Sub 7E,  |        | Sub 3D,  |  | Sub 1A,  |        | Sub 5E,  |  | Joint   |        | Sub 6K, 
|                                  |                                                          |  | L.P      |        | L.P.     |  | LLC      |        | LLC      |  | LLC      |        | LLC      |  | Venture |        | LLC     
|Assets                            |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |         |        |          |  |        |        |   |  |        |        |   |  |          |        |   |  |        |       
|                                 
|                                 
|                                 
|                                 
|                                  | Investment in hotel properties                           |  |          | 16,345 |          |  |          | 12,363 |          |  |          | 17,822 |          |  |         | 22,305 |          |  |        | 11,231 |   |  |        | 52,817 |   |  |          | 12,891 |   |  |        | 22,642 |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accumulated depreciation                                 |  |          | (3,356 | )        |  |          | (1,712 | )        |  |          | (2,081 | )        |  |         | (5,411 | )        |  |        | (2,024 | ) |  |        | (6,221 | ) |  |          | (1,345 | ) |  |        | (3,560 | )
|                                  |                                                          | 
|                                  |                                                          |  | 12,989   |        |          |  | 10,651   |        |          |  | 15,741   |        |          |  | 16,894  |        |          |  | 9,207  |        |   |  | 46,596 |        |   |  | 11,546   |        |   |  | 19,082 |       
|                                 
|                                 
|                                 
|                                 
|                                  |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |         |        |          |  |        |        |   |  |        |        |   |  |          |        |   |  |        |       
|                                 
|                                 
|                                 
|                                 
|                                  | Cash and cash equivalents                                |  |          |       |          |  |          |       |          |  |          |       |          |  |         |       |          |  |        |       |   |  |        |       |   |  |          |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accounts receivable, net                                 |  |          |       |          |  |          |       |          |  |          |       |          |  |         |       |          |  |        |       |   |  |        |       |   |  |          |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Prepaid expenses and other                               |  |          |       |          |  |          |       |          |  |          |       |          |  |         |       |          |  |        |       |   |  |        |       |   |  |          |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Note receivable                                          |  |          |       |          |  |          |       |          |  |          |       |          |  |         |       |          |  |        |       |   |  |        |       |   |  |          |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Due from MeriStar Hotels & Resorts                       |  |          |       |          |  |          |       |          |  |          |       |          |  |         |       |          |  |        |       |   |  |        |       |   |  |          |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Due from subsidiaries                                    |  |          | 289    |          |  |          | (1,000 | )        |  |          | 4,799  |          |  |         | 5,619  |          |  |        | 4,953  |   |  |        | 9,219  |   |  |          | 3,585  |   |  |        | 13,504 |  
|                                 
|                                 
|                                 
|                                 
|                                  | Investments in affiliates                                |  |          |       |          |  |          |       |          |  |          |       |          |  |         |       |          |  |        |       |   |  |        |       |   |  |          |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Restricted cash                                          |  |          |       |          |  |          |       |          |  |          |       |          |  |         |       |          |  |        |       |   |  |        |       |   |  |          |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Intangible assets, net                                   |  |          |       |          |  |          |       |          |  |          | 7      |          |  |         |       |          |  |        |       |   |  |        | 10     |   |  |          |       |   |  |        |       |  
|                                  |                                                          | 
|                                  |                                                          |  | 13,278   |        |          |  | 9,651    |        |          |  | 20,547   |        |          |  | 22,513  |        |          |  | 14,160 |        |   |  | 55,825 |        |   |  | 15,131   |        |   |  | 32,586 |       
|                                  |                                                          | 
|Liabilities and Partners capital |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |         |        |          |  |        |        |   |  |        |        |   |  |          |        |   |  |        |       
|                                 
|                                 
|                                 
|                                 
|                                  | Accounts payable, accrued expenses and other liabilities |  |          | 447    |          |  |          | 193    |          |  |          | 117    |          |  |         |       |          |  |        | 148    |   |  |        | 301    |   |  |          | 230    |   |  |        | 78     |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accrued interest                                         |  |          |       |          |  |          |       |          |  |          |       |          |  |         |       |          |  |        |       |   |  |        |       |   |  |          |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Income taxes payable                                     |  |          |       |          |  |          |       |          |  |          |       |          |  |         |       |          |  |        |       |   |  |        |       |   |  |          |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Distributions payable                                    |  |          |       |          |  |          |       |          |  |          |       |          |  |         |       |          |  |        |       |   |  |        |       |   |  |          |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Deferred income taxes                                    |  |          |       |          |  |          |       |          |  |          |       |          |  |         |       |          |  |        |       |   |  |        |       |   |  |          |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Interest rate swaps                                      |  |          |       |          |  |          |       |          |  |          |       |          |  |         |       |          |  |        |       |   |  |        |       |   |  |          |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Notes payable to MeriStar                                |  |          |       |          |  |          |       |          |  |          |       |          |  |         |       |          |  |        |       |   |  |        |       |   |  |          |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Long-term debt                                           |  |          |       |          |  |          |       |          |  |          |       |          |  |         |       |          |  |        |       |   |  |        |       |   |  |          |       |   |  |        |       |  
|                                  |                                                          | 
|Total liabilities                 |                                                          |  | 447      |        |          |  | 193      |        |          |  | 117      |        |          |  |        |        |          |  | 148    |        |   |  | 301    |        |   |  | 230      |        |   |  | 78     |       
|                                  |                                                          | 
|                                  |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |         |        |          |  |        |        |   |  |        |        |   |  |          |        |   |  |        |       
|                                 
|                                 
|                                 
|                                 
|                                  | Minority interests                                       |  |          |       |          |  |          |       |          |  |          |       |          |  |         |       |          |  |        |       |   |  |        |       |   |  |          |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Redeemable OP units at redemption value                  |  |          |       |          |  |          |       |          |  |          |       |          |  |         |       |          |  |        |       |   |  |        |       |   |  |          |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Partners capital                                        |  |          | 12,831 |          |  |          | 9,458  |          |  |          | 20,430 |          |  |         | 22,513 |          |  |        | 14,012 |   |  |        | 55,524 |   |  |          | 14,901 |   |  |        | 32,508 |  
|                                  |                                                          | 
|                                  |                                                          |  | 13,278   |        |          |  | 9,651    |        |          |  | 20,547   |        |          |  | 22,513  |        |          |  | 14,160 |        |   |  | 55,825 |        |   |  | 15,131   |        |   |  | 32,586 |       
|                                  |                                                          | 





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Balance Sheet
December 31, 2001
(in thousands)

|                                  |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |             |        |          |  |       |        |   |  |        |        |   |  |       |       |   |  |        |        |  
|--------------------------------- | -------------------------------------------------------- |  | -------- | ------ | -------- |  | -------- | ------ | -------- |  | -------- | ------ | -------- |  | ----------- | ------ | -------- |  | ----- | ------ | - |  | ------ | ------ | - |  | ----- | ----- | - |  | ------ | ------ | -
|                                  |                                                          |  | MeriStar |        | MeriStar |  | MeriStar |        | MeriStar |  | MeriStar |        | MeriStar |  | MDV         |        | MeriStar
|                                  |                                                          |  | Sub 2B,  |        | Sub 3A,  |  | Sub 4A,  |        | Sub 4D,  |  | Sub 2A,  |        | Sub 6L,  |  | Limited     |        | Sub 5C, 
|                                  |                                                          |  | LLC      |        | LLC      |  | L.P.     |        | LLC      |  | LLC      |        | LLC      |  | Partnership |        | LLC     
|Assets                            |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |             |        |          |  |       |        |   |  |        |        |   |  |       |       |   |  |        |       
|                                 
|                                 
|                                 
|                                 
|                                  | Investment in hotel properties                           |  |          | 9,424  |          |  |          | 6,274  |          |  |          | 8,619  |          |  |             | 8,664  |          |  |       | 8,209  |   |  |        | 29,443 |   |  |       | 3,816 |   |  |        | 13,826 |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accumulated depreciation                                 |  |          | (1,558 | )        |  |          | (1,292 | )        |  |          | (1,112 | )        |  |             | (1,179 | )        |  |       | (1,141 | ) |  |        | (2,464 | ) |  |       | (410  | ) |  |        | (2,215 | )
|                                  |                                                          | 
|                                  |                                                          |  | 7,866    |        |          |  | 4,982    |        |          |  | 7,507    |        |          |  | 7,485       |        |          |  | 7,068 |        |   |  | 26,979 |        |   |  | 3,406 |       |   |  | 11,611 |       
|                                 
|                                 
|                                 
|                                 
|                                  |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |             |        |          |  |       |        |   |  |        |        |   |  |       |       |   |  |        |       
|                                 
|                                 
|                                 
|                                 
|                                  | Cash and cash equivalents                                |  |          |       |          |  |          |       |          |  |          |       |          |  |             |       |          |  |       |       |   |  |        |       |   |  |       |      |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accounts receivable, net                                 |  |          | (12    | )        |  |          |       |          |  |          |       |          |  |             |       |          |  |       |       |   |  |        |       |   |  |       |      |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Prepaid expenses and other                               |  |          |       |          |  |          |       |          |  |          |       |          |  |             |       |          |  |       |       |   |  |        |       |   |  |       | 4     |   |  |        | 17     |  
|                                 
|                                 
|                                 
|                                 
|                                  | Note receivable                                          |  |          |       |          |  |          |       |          |  |          |       |          |  |             |       |          |  |       |       |   |  |        |       |   |  |       |      |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Due from MeriStar Hotels & Resorts                       |  |          |       |          |  |          |       |          |  |          |       |          |  |             |       |          |  |       |       |   |  |        |       |   |  |       |      |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Due from subsidiaries                                    |  |          | (486   | )        |  |          | 1,742  |          |  |          | 3,572  |          |  |             | 14     |          |  |       | (620   | ) |  |        | 3,604  |   |  |       | 1,796 |   |  |        | (345   | )
|                                 
|                                 
|                                 
|                                 
|                                  | Investments in affiliates                                |  |          |       |          |  |          |       |          |  |          |       |          |  |             |       |          |  |       |       |   |  |        |       |   |  |       |      |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Restricted cash                                          |  |          |       |          |  |          |       |          |  |          |       |          |  |             |       |          |  |       |       |   |  |        |       |   |  |       |      |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Intangible assets, net                                   |  |          | 1      |          |  |          | 2      |          |  |          |       |          |  |             | 26     |          |  |       | 25     |   |  |        |       |   |  |       | 9     |   |  |        |       |  
|                                  |                                                          | 
|                                  |                                                          |  | 7,369    |        |          |  | 6,726    |        |          |  | 11,079   |        |          |  | 7,525       |        |          |  | 6,473 |        |   |  | 30,583 |        |   |  | 5,215 |       |   |  | 11,283 |       
|                                  |                                                          | 
|Liabilities and Partners capital |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |             |        |          |  |       |        |   |  |        |        |   |  |       |       |   |  |        |       
|                                 
|                                 
|                                 
|                                 
|                                  | Accounts payable, accrued expenses and other liabilities |  |          | 147    |          |  |          | 98     |          |  |          | 313    |          |  |             | 62     |          |  |       | 31     |   |  |        | 68     |   |  |       | 87    |   |  |        | 828    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accrued interest                                         |  |          |       |          |  |          |       |          |  |          |       |          |  |             |       |          |  |       |       |   |  |        |       |   |  |       |      |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Income taxes payable                                     |  |          |       |          |  |          |       |          |  |          |       |          |  |             |       |          |  |       |       |   |  |        |       |   |  |       |      |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Distributions payable                                    |  |          |       |          |  |          |       |          |  |          |       |          |  |             |       |          |  |       |       |   |  |        |       |   |  |       |      |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Deferred income taxes                                    |  |          |       |          |  |          |       |          |  |          |       |          |  |             |       |          |  |       |       |   |  |        |       |   |  |       |      |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Interest rate swaps                                      |  |          |       |          |  |          |       |          |  |          |       |          |  |             |       |          |  |       |       |   |  |        |       |   |  |       |      |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Notes payable to MeriStar                                |  |          |       |          |  |          |       |          |  |          |       |          |  |             |       |          |  |       |       |   |  |        |       |   |  |       |      |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Long-term debt                                           |  |          | 4,851  |          |  |          |       |          |  |          |       |          |  |             |       |          |  |       | 7,912  |   |  |        |       |   |  |       |      |   |  |        |       |  
|                                  |                                                          | 
|Total liabilities                 |                                                          |  | 4,998    |        |          |  | 98       |        |          |  | 313      |        |          |  | 62          |        |          |  | 7,943 |        |   |  | 68     |        |   |  | 87    |       |   |  | 828    |       
|                                  |                                                          | 
|                                  |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |             |        |          |  |       |        |   |  |        |        |   |  |       |       |   |  |        |       
|                                 
|                                 
|                                 
|                                 
|                                  | Minority interests                                       |  |          |       |          |  |          |       |          |  |          |       |          |  |             |       |          |  |       |       |   |  |        |       |   |  |       |      |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Redeemable OP units at redemption value                  |  |          |       |          |  |          |       |          |  |          |       |          |  |             |       |          |  |       |       |   |  |        |       |   |  |       |      |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Partners capital                                        |  |          | 2,371  |          |  |          | 6,628  |          |  |          | 10,766 |          |  |             | 7,463  |          |  |       | (1,470 | ) |  |        | 30,515 |   |  |       | 5,128 |   |  |        | 10,455 |  
|                                  |                                                          | 
|                                  |                                                          |  | 7,369    |        |          |  | 6,726    |        |          |  | 11,079   |        |          |  | 7,525       |        |          |  | 6,473 |        |   |  | 30,583 |        |   |  | 5,215 |       |   |  | 11,283 |       
|                                  |                                                          | 





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Balance Sheet
December 31, 2001
(in thousands)

|                                  |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |        |        |  
|--------------------------------- | -------------------------------------------------------- |  | -------- | ------ | -------- |  | -------- | ------ | -------- |  | -------- | ------ | -------- |  | -------- | ------ | -------- |  | ------ | ------ | - |  | ------ | ------ | - |  | ------ | ------ | - |  | ------ | ------ | -
|                                  |                                                          |  | MeriStar |        | MeriStar |  | MeriStar |        | MeriStar |  | MeriStar |        | MeriStar |  | MeriStar |        | MeriStar
|                                  |                                                          |  | Sub 6J,  |        | Sub 1D,  |  | Sub 7B,  |        | Sub 7D,  |  | Sub 7G,  |        | Sub 6B,  |  | Sub 4I,  |        | Sub 5D, 
|                                  |                                                          |  | LLC      |        | L.P.     |  | L.P.     |        | LLC      |  | LLC      |        | LLC      |  | L.P.     |        | LLC     
|Assets                            |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |        |       
|                                 
|                                 
|                                 
|                                 
|                                  | Investment in hotel properties                           |  |          | 19,169 |          |  |          | 67,929 |          |  |          | 25,399 |          |  |          | 52,031 |          |  |        | 16,462 |   |  |        | 10,528 |   |  |        | 12,477 |   |  |        | 41,617 |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accumulated depreciation                                 |  |          | (2,573 | )        |  |          | (7,516 | )        |  |          | (2,277 | )        |  |          | (6,516 | )        |  |        | (3,387 | ) |  |        | (1,292 | ) |  |        | (3,677 | ) |  |        | (5,199 | )
|                                  |                                                          | 
|                                  |                                                          |  | 16,596   |        |          |  | 60,413   |        |          |  | 23,122   |        |          |  | 45,515   |        |          |  | 13,075 |        |   |  | 9,236  |        |   |  | 8,800  |        |   |  | 36,418 |       
|                                 
|                                 
|                                 
|                                 
|                                  | Cash and cash equivalents                                |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accounts receivable, net                                 |  |          |       |          |  |          |       |          |  |          |       |          |  |          | 912    |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Prepaid expenses and other                               |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Note receivable                                          |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Due from MeriStar Hotels & Resorts                       |  |          |       |          |  |          |       |          |  |          |       |          |  |          | 200    |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Due from subsidiaries                                    |  |          | 4,047  |          |  |          | 13,481 |          |  |          | (4,749 | )        |  |          | 18,380 |          |  |        | 44     |   |  |        | 1,602  |   |  |        | 1,289  |   |  |        | (6,818 | )
|                                 
|                                 
|                                 
|                                 
|                                  | Investments in affiliates                                |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        | 51,398 |  
|                                 
|                                 
|                                 
|                                 
|                                  | Restricted cash                                          |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Intangible assets, net                                   |  |          | 58     |          |  |          | 55     |          |  |          |       |          |  |          | 393    |          |  |        | 34     |   |  |        | 9      |   |  |        |       |   |  |        | 21     |  
|                                  |                                                          | 
|                                  |                                                          |  | 20,701   |        |          |  | 73,949   |        |          |  | 18,373   |        |          |  | 65,400   |        |          |  | 13,153 |        |   |  | 10,847 |        |   |  | 10,089 |        |   |  | 81,019 |       
|                                  |                                                          | 
|Liabilities and Partners capital |                                                          |  |          |        |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |        |       
|                                 
|                                 
|                                 
|                                 
|                                  | Accounts payable, accrued expenses and other liabilities |  |          | (57    | )        |  |          | 553    |          |  |          | 1,011  |          |  |          | 4,688  |          |  |        | 161    |   |  |        | (60    | ) |  |        | 360    |   |  |        | 241    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accrued interest                                         |  |          |       |          |  |          | 57     |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Income taxes payable                                     |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Distributions payable                                    |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Deferred income taxes                                    |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Interest rate swaps                                      |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Notes payable to MeriStar                                |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Long-term debt                                           |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        | 24,000 |  
|                                  |                                                          | 
|Total liabilities                 |                                                          |  | (57      | )      |          |  | 610      |        |          |  | 1,011    |        |          |  | 4,688    |        |          |  | 161    |        |   |  | (60    | )      |   |  | 360    |        |   |  | 24,241 |       
|                                  |                                                          | 
|                                 
|                                 
|                                 
|                                 
|                                  | Minority interests                                       |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Redeemable OP units at redemption value                  |  |          |       |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Partners capital                                        |  |          | 20,758 |          |  |          | 73,339 |          |  |          | 17,362 |          |  |          | 60,712 |          |  |        | 12,992 |   |  |        | 10,907 |   |  |        | 9,729  |   |  |        | 56,778 |  
|                                  |                                                          | 
|                                  |                                                          |  | 20,701   |        |          |  | 73,949   |        |          |  | 18,373   |        |          |  | 65,400   |        |          |  | 13,153 |        |   |  | 10,847 |        |   |  | 10,089 |        |   |  | 81,019 |       
|                                  |                                                          | 





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Balance Sheet
December 31, 2001
(in thousands)

|                                  |                                                          |  |          |        |          |  |        |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |        |        |  
|--------------------------------- | -------------------------------------------------------- |  | -------- | ------ | -------- |  | ------ | ------ | -------- |  | -------- | ------ | -------- |  | -------- | ------ | -------- |  | ------ | ------ | - |  | ------ | ------ | - |  | ------ | ------ | - |  | ------ | ------ | -
|                                  |                                                          |  | MeriStar |        | MeriStar |  | AGH    |        | MeriStar |  | MeriStar |        | MeriStar |  | MeriStar |        | MeriStar
|                                  |                                                          |  | Sub 5H,  |        | Sub 7H,  |  | PSS I, |        | Sub 2D,  |  | Sub 4F,  |        | Sub 5K,  |  | Sub 5M,  |        | Sub 1E, 
|                                  |                                                          |  | LLC      |        | LLC      |  | Inc.   |        | LLC      |  | L.P.     |        | LLC      |  | LLC      |        | L.P.    
|Assets                            |                                                          |  |          |        |          |  |        |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |        |       
|                                 
|                                 
|                                 
|                                 
|                                  | Investment in hotel properties                           |  |          | 52,475 |          |  |        | 9,978  |          |  |          | 17,317 |          |  |          | 15,307 |          |  |        | 31,467 |   |  |        | 27,304 |   |  |        | 21,917 |   |  |        | 10,379 |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accumulated depreciation                                 |  |          | (6,012 | )        |  |        | (4,063 | )        |  |          | (2,049 | )        |  |          | (1,949 | )        |  |        | (3,617 | ) |  |        | (2,729 | ) |  |        | (1,429 | ) |  |        | (1,350 | )
|                                  |                                                          | 
|                                  |                                                          |  | 46,463   |        |          |  | 5,915  |        |          |  | 15,268   |        |          |  | 13,358   |        |          |  | 27,850 |        |   |  | 24,575 |        |   |  | 20,488 |        |   |  | 9,029  |       
|                                 
|                                 
|                                 
|                                 
|                                  |                                                          |  |          |        |          |  |        |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |        |       
|                                 
|                                 
|                                 
|                                 
|                                  | Cash and cash equivalents                                |  |          |       |          |  |        |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accounts receivable, net                                 |  |          |       |          |  |        |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Prepaid expenses and other                               |  |          |       |          |  |        |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Note receivable                                          |  |          |       |          |  |        |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Due from MeriStar Hotels & Resorts                       |  |          |       |          |  |        |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Due from subsidiaries                                    |  |          | 6,867  |          |  |        | 5,202  |          |  |          | 9,631  |          |  |          | 215    |          |  |        | 3,292  |   |  |        | (781   | ) |  |        | 5,344  |   |  |        | 5,927  |  
|                                 
|                                 
|                                 
|                                 
|                                  | Investments in affiliates                                |  |          |       |          |  |        |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Restricted cash                                          |  |          |       |          |  |        |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Intangible assets, net                                   |  |          |       |          |  |        |       |          |  |          |       |          |  |          | 2      |          |  |        | 37     |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                  |                                                          | 
|                                  |                                                          |  | 53,330   |        |          |  | 11,117 |        |          |  | 24,899   |        |          |  | 13,575   |        |          |  | 31,179 |        |   |  | 23,794 |        |   |  | 25,832 |        |   |  | 14,956 |       
|                                  |                                                          | 
|Liabilities and Partners capital |                                                          |  |          |        |          |  |        |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |        |       
|                                 
|                                 
|                                 
|                                 
|                                  | Accounts payable, accrued expenses and other liabilities |  |          | (115   | )        |  |        | 414    |          |  |          | 29     |          |  |          | 43     |          |  |        | 388    |   |  |        | 5,644  |   |  |        | 21     |   |  |        | 22     |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accrued interest                                         |  |          |       |          |  |        |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Income taxes payable                                     |  |          |       |          |  |        |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Distributions payable                                    |  |          |       |          |  |        |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Deferred income taxes                                    |  |          |       |          |  |        |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Interest rate swaps                                      |  |          |       |          |  |        |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Notes payable to MeriStar                                |  |          |       |          |  |        |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Long-term debt                                           |  |          |       |          |  |        | 13     |          |  |          |       |          |  |          | 9,167  |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                  |                                                          | 
|Total liabilities                 |                                                          |  | (115     | )      |          |  | 427    |        |          |  | 29       |        |          |  | 9,210    |        |          |  | 388    |        |   |  | 5,644  |        |   |  | 21     |        |   |  | 22     |       
|                                  |                                                          | 
|                                  |                                                          |  |          |        |          |  |        |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |        |       
|                                 
|                                 
|                                 
|                                 
|                                  | Minority interests                                       |  |          |       |          |  |        |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Redeemable OP units at redemption value                  |  |          |       |          |  |        |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Partners capital                                        |  |          | 53,445 |          |  |        | 10,690 |          |  |          | 24,870 |          |  |          | 4,365  |          |  |        | 30,791 |   |  |        | 18,150 |   |  |        | 25,811 |   |  |        | 14,934 |  
|                                  |                                                          | 
|                                  |                                                          |  | 53,330   |        |          |  | 11,117 |        |          |  | 24,899   |        |          |  | 13,575   |        |          |  | 31,179 |        |   |  | 23,794 |        |   |  | 25,832 |        |   |  | 14,956 |       
|                                  |                                                          | 





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Balance Sheet
December 31, 2001
(in thousands)

|                                  |                                                          |  |          |       |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |         |         |  
|--------------------------------- | -------------------------------------------------------- |  | -------- | ----- | -------- |  | -------- | ------ | -------- |  | -------- | ------ | -------- |  | -------- | ------ | -------- |  | ------ | ------ | - |  | ------ | ------ | - |  | ------ | ------ | - |  | ------- | ------- | -
|                                  |                                                          |  | MeriStar |       | MeriStar |  | MeriStar |        | MeriStar |  | MeriStar |        | MeriStar |  | MeriStar |        | MeriStar
|                                  |                                                          |  | Sub 5O,  |       | Sub 6M   |  | Sub 4B,  |        | Sub 6C,  |  | Sub 2C,  |        | Sub 4G,  |  | Sub 3B,  |        | Sub 5G, 
|                                  |                                                          |  | LLC      |       | Company  |  | L.P.     |        | LLC      |  | LLC      |        | L.P.     |  | LLC      |        | L.P.    
|Assets                            |                                                          |  |          |       |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |         |        
|                                 
|                                 
|                                 
|                                 
|                                  | Investment in hotel properties                           |  |          | 8,674 |          |  |          | 32,724 |          |  |          | 15,830 |          |  |          | 20,493 |          |  |        | 28,300 |   |  |        | 25,493 |   |  |        | 24,577 |   |  |         | 161,783 |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accumulated depreciation                                 |  |          | (697  | )        |  |          | (3,594 | )        |  |          | (4,630 | )        |  |          | (2,815 | )        |  |        | (4,322 | ) |  |        | (3,112 | ) |  |        | (2,971 | ) |  |         | (18,012 | )
|                                  |                                                          | 
|                                  |                                                          |  | 7,977    |       |          |  | 29,130   |        |          |  | 11,200   |        |          |  | 17,678   |        |          |  | 23,978 |        |   |  | 22,381 |        |   |  | 21,606 |        |   |  | 143,771 |        
|                                 
|                                 
|                                 
|                                 
|                                  |                                                          |  |          |       |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |         |        
|                                 
|                                 
|                                 
|                                 
|                                  | Cash and cash equivalents                                |  |          |      |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |         |        |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accounts receivable, net                                 |  |          |      |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |         |        |  
|                                 
|                                 
|                                 
|                                 
|                                  | Prepaid expenses and other                               |  |          |      |          |  |          | 13     |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |         |        |  
|                                 
|                                 
|                                 
|                                 
|                                  | Note receivable                                          |  |          |      |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |         |        |  
|                                 
|                                 
|                                 
|                                 
|                                  | Due from MeriStar Hotels & Resorts                       |  |          |      |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |         |        |  
|                                 
|                                 
|                                 
|                                 
|                                  | Due from subsidiaries                                    |  |          | 1,939 |          |  |          | 12,127 |          |  |          | (3,367 | )        |  |          | 7,763  |          |  |        | 7,596  |   |  |        | 5,849  |   |  |        | 1,864  |   |  |         | 28,207  |  
|                                 
|                                 
|                                 
|                                 
|                                  | Investments in affiliates                                |  |          |      |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |         |        |  
|                                 
|                                 
|                                 
|                                 
|                                  | Restricted cash                                          |  |          |      |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |         |        |  
|                                 
|                                 
|                                 
|                                 
|                                  | Intangible assets, net                                   |  |          |      |          |  |          | 47     |          |  |          | 29     |          |  |          |       |          |  |        | 2      |   |  |        | 28     |   |  |        |       |   |  |         |        |  
|                                  |                                                          | 
|                                  |                                                          |  | 9,916    |       |          |  | 41,317   |        |          |  | 7,862    |        |          |  | 25,441   |        |          |  | 31,576 |        |   |  | 28,258 |        |   |  | 23,470 |        |   |  | 171,978 |        
|                                  |                                                          | 
|Liabilities and Partners capital |                                                          |  |          |       |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |         |        
|                                 
|                                 
|                                 
|                                 
|                                  | Accounts payable, accrued expenses and other liabilities |  |          | 18    |          |  |          | (99    | )        |  |          | 387    |          |  |          | (128   | )        |  |        | 255    |   |  |        | 574    |   |  |        | 115    |   |  |         | 678     |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accrued interest                                         |  |          |      |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |         |        |  
|                                 
|                                 
|                                 
|                                 
|                                  | Income taxes payable                                     |  |          |      |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |         |        |  
|                                 
|                                 
|                                 
|                                 
|                                  | Distributions payable                                    |  |          |      |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |         |        |  
|                                 
|                                 
|                                 
|                                 
|                                  | Deferred income taxes                                    |  |          |      |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |         |        |  
|                                 
|                                 
|                                 
|                                 
|                                  | Interest rate swaps                                      |  |          |      |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |         |        |  
|                                 
|                                 
|                                 
|                                 
|                                  | Notes payable to MeriStar                                |  |          |      |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |         |        |  
|                                 
|                                 
|                                 
|                                 
|                                  | Long-term debt                                           |  |          |      |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        | 16,011 |   |  |        |       |   |  |        |       |   |  |         |        |  
|                                  |                                                          | 
|Total liabilities                 |                                                          |  | 18       |       |          |  | (99      | )      |          |  | 387      |        |          |  | (128     | )      |          |  | 16,266 |        |   |  | 574    |        |   |  | 115    |        |   |  | 678     |        
|                                  |                                                          | 
|                                  |                                                          |  |          |       |          |  |          |        |          |  |          |        |          |  |          |        |          |  |        |        |   |  |        |        |   |  |        |        |   |  |         |        
|                                 
|                                 
|                                 
|                                 
|                                  | Minority interests                                       |  |          |      |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |         |        |  
|                                 
|                                 
|                                 
|                                 
|                                  | Redeemable OP units at redemption value                  |  |          |      |          |  |          |       |          |  |          |       |          |  |          |       |          |  |        |       |   |  |        |       |   |  |        |       |   |  |         |        |  
|                                 
|                                 
|                                 
|                                 
|                                  | Partners capital                                        |  |          | 9,898 |          |  |          | 41,416 |          |  |          | 7,475  |          |  |          | 25,569 |          |  |        | 15,310 |   |  |        | 27,684 |   |  |        | 23,355 |   |  |         | 171,300 |  
|                                  |                                                          | 
|                                  |                                                          |  | 9,916    |       |          |  | 41,317   |        |          |  | 7,862    |        |          |  | 25,441   |        |          |  | 31,576 |        |   |  | 28,258 |        |   |  | 23,470 |        |   |  | 171,978 |        
|                                  |                                                          | 





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Balance Sheet
December 31, 2001
(in thousands)

|                                  |                                                          |  |          |       |          |  |          |         |          |  |          |        |          |  |              |        |              |  |              |        |       |  |        |        |   |  |        |        |   |  |            |            |   |  |           |           |  
|--------------------------------- | -------------------------------------------------------- |  | -------- | ----- | -------- |  | -------- | ------- | -------- |  | -------- | ------ | -------- |  | ------------ | ------ | ------------ |  | ------------ | ------ | ----- |  | ------ | ------ | - |  | ------ | ------ | - |  | ---------- | ---------- | - |  | --------- | --------- | -
|                                  |                                                          |  | MeriStar |       | MeriStar |  | MeriStar |         | MeriStar |  | MeriStar |        | MeriStar |  | MeriStar     |        |              |  |              |        |       |  |       
|                                  |                                                          |  | Sub 5P,  |       | Sub 5J,  |  | Sub 5Q,  |         | Sub 5A,  |  | Sub 8D,  |        | Sub 4J,  |  | Hotel        |        |              |  |              |        | Total
|                                  |                                                          |  | LLC      |       | LLC      |  | LLC      |         | LLC      |  | LLC      |        | LLC      |  | Lessee, Inc. |        | Eliminations |  | Consolidated
|Assets                            |                                                          |  |          |       |          |  |          |         |          |  |          |        |          |  |              |        |              |  |              |        |       |  |        |        |   |  |        |        |   |  |            |            |   |  |           |          
|                                 
|                                 
|                                 
|                                 
|                                  | Investment in hotel properties                           |  |          |      |          |  |          | 104,381 |          |  |          | 15,964 |          |  |              | 34,663 |              |  |              | 30,448 |       |  |        | 37,923 |   |  |        | 864    |   |  |            |           |   |  |           | 3,183,677 |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accumulated depreciation                                 |  |          |      |          |  |          | (9,859  | )        |  |          | (1,216 | )        |  |              | (7,908 | )            |  |              | (3,813 | )     |  |        | (4,561 | ) |  |        | (658   | ) |  |            |           |   |  |           | (397,380  | )
|                                  |                                                          | 
|                                  |                                                          |  |         |       |          |  | 94,522   |         |          |  | 14,748   |        |          |  | 26,755       |        |              |  | 26,635       |        |       |  | 33,362 |        |   |  | 206    |        |   |  |           |            |   |  | 2,786,297 |          
|                                 
|                                 
|                                 
|                                 
|                                  |                                                          |  |          |       |          |  |          |         |          |  |          |        |          |  |              |        |              |  |              |        |       |  |        |        |   |  |        |        |   |  |            |            |   |  |           |          
|                                 
|                                 
|                                 
|                                 
|                                  | Cash and cash equivalents                                |  |          |      |          |  |          |        |          |  |          |       |          |  |              |       |              |  |              |       |       |  |        |       |   |  |        | 16,643 |   |  |            |           |   |  |           | 23,441    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accounts receivable, net                                 |  |          | 319   |          |  |          |        |          |  |          |       |          |  |              |       |              |  |              |       |       |  |        | 21     |   |  |        | 40,616 |   |  |            |           |   |  |           | 47,178    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Prepaid expenses and other                               |  |          |      |          |  |          | 483     |          |  |          |       |          |  |              |       |              |  |              | 1      |       |  |        |       |   |  |        | 13,172 |   |  |            |           |   |  |           | 18,306    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Note receivable                                          |  |          |      |          |  |          |        |          |  |          |       |          |  |              |       |              |  |              |       |       |  |        |       |   |  |        | 389    |   |  |            | (91,550    | ) |  |           | 36,000    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Due from MeriStar Hotels & Resorts                       |  |          |      |          |  |          |        |          |  |          |       |          |  |              |       |              |  |              |       |       |  |        |       |   |  |        | (3,715 | ) |  |            |           |   |  |           | 8,877     |  
|                                 
|                                 
|                                 
|                                 
|                                  | Due from subsidiaries                                    |  |          | 1,117 |          |  |          | 12,862  |          |  |          | 2,083  |          |  |              | 2,995  |              |  |              | 5,308  |       |  |        | 3,090  |   |  |        | 6,316  |   |  |            |            |   |  |           |          |  
|                                 
|                                 
|                                 
|                                 
|                                  | Investments in affiliates                                |  |          |      |          |  |          |        |          |  |          |       |          |  |              | 4,627  |              |  |              |       |       |  |        |       |   |  |        | 1,629  |   |  |            | (2,741,585 | ) |  |           | 41,714    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Restricted cash                                          |  |          |      |          |  |          |        |          |  |          |       |          |  |              |       |              |  |              |       |       |  |        |       |   |  |        |       |   |  |            |           |   |  |           | 21,304    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Intangible assets, net                                   |  |          |      |          |  |          |        |          |  |          |       |          |  |              | (53    | )            |  |              |       |       |  |        | 47     |   |  |        |       |   |  |            |           |   |  |           | 21,469    |  
|                                  |                                                          | 
|                                  |                                                          |  | 1,436    |       |          |  | 107,867  |         |          |  | 16,831   |        |          |  | 34,324       |        |              |  | 31,944       |        |       |  | 36,520 |        |   |  | 75,256 |        |   |  | (2,833,135 | )          |   |  | 3,004,586 |          
|                                  |                                                          | 
|Liabilities and Partners capital |                                                          |  |          |       |          |  |          |         |          |  |          |        |          |  |              |        |              |  |              |        |       |  |        |        |   |  |        |        |   |  |            |            |   |  |           |          
|                                 
|                                 
|                                 
|                                 
|                                  | Accounts payable, accrued expenses and other liabilities |  |          | 19    |          |  |          | 318     |          |  |          | (201   | )        |  |              | (69    | )            |  |              | (71    | )     |  |        | 243    |   |  |        | 70,061 |   |  |            |           |   |  |           | 123,972   |  
|                                 
|                                 
|                                 
|                                 
|                                  | Accrued interest                                         |  |          |      |          |  |          |        |          |  |          |       |          |  |              |       |              |  |              |       |       |  |        |       |   |  |        | 17     |   |  |            |           |   |  |           | 45,009    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Income taxes payable                                     |  |          |      |          |  |          |        |          |  |          |       |          |  |              |       |              |  |              |       |       |  |        |       |   |  |        | 25     |   |  |            |           |   |  |           | 310       |  
|                                 
|                                 
|                                 
|                                 
|                                  | Distributions payable                                    |  |          |      |          |  |          |        |          |  |          |       |          |  |              |       |              |  |              |       |       |  |        |       |   |  |        |       |   |  |            |           |   |  |           | 1,090     |  
|                                 
|                                 
|                                 
|                                 
|                                  | Deferred income taxes                                    |  |          |      |          |  |          |        |          |  |          |       |          |  |              |       |              |  |              |       |       |  |        |       |   |  |        | (337   | ) |  |            |           |   |  |           | 7,130     |  
|                                 
|                                 
|                                 
|                                 
|                                  | Interest rate swaps                                      |  |          |      |          |  |          |        |          |  |          |       |          |  |              |       |              |  |              |       |       |  |        |       |   |  |        |       |   |  |            |           |   |  |           | 12,100    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Notes payable to MeriStar                                |  |          |      |          |  |          |        |          |  |          |       |          |  |              |       |              |  |              |       |       |  |        |       |   |  |        |       |   |  |            |           |   |  |           | 357,117   |  
|                                 
|                                 
|                                 
|                                 
|                                  | Long-term debt                                           |  |          |      |          |  |          |        |          |  |          |       |          |  |              | 23,609 |              |  |              |       |       |  |        |       |   |  |        | 6,000  |   |  |            | (91,550    | ) |  |           | 1,343,017 |  
|                                  |                                                          | 
|Total liabilities                 |                                                          |  | 19       |       |          |  | 318      |         |          |  | (201     | )      |          |  | 23,540       |        |              |  | (71          | )      |       |  | 243    |        |   |  | 75,766 |        |   |  | (91,550    | )          |   |  | 1,889,745 |          
|                                  |                                                          | 
|                                  |                                                          |  |          |       |          |  |          |         |          |  |          |        |          |  |              |        |              |  |              |        |       |  |        |        |   |  |        |        |   |  |            |            |   |  |           |          
|                                 
|                                 
|                                 
|                                 
|                                  | Minority interests                                       |  |          |      |          |  |          |        |          |  |          |       |          |  |              |       |              |  |              |       |       |  |        |       |   |  |        |       |   |  |            |           |   |  |           | 2,639     |  
|                                 
|                                 
|                                 
|                                 
|                                  | Redeemable OP units at redemption value                  |  |          |      |          |  |          |        |          |  |          |       |          |  |              |       |              |  |              |       |       |  |        |       |   |  |        |       |   |  |            |           |   |  |           | 67,012    |  
|                                 
|                                 
|                                 
|                                 
|                                  | Partners capital                                        |  |          | 1,417 |          |  |          | 107,549 |          |  |          | 17,032 |          |  |              | 10,784 |              |  |              | 32,015 |       |  |        | 36,277 |   |  |        | (510   | ) |  |            | (2,741,585 | ) |  |           | 1,045,190 |  
|                                  |                                                          | 
|                                  |                                                          |  | 1,436    |       |          |  | 107,867  |         |          |  | 16,831   |        |          |  | 34,324       |        |              |  | 31,944       |        |       |  | 36,520 |        |   |  | 75,256 |        |   |  | (2,833,135 | )          |   |  | 3,004,586 |          
|                                  |                                                          | 





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended June 2001
(in thousands)

|                                        |                                                     |                                                                                     |             |       |             |       |              |       |          |   |         |   |          |   |          |   |          |   |          |   |     |   |     |   |     |   |     |   |     |   |   |   |   |   | 
|--------------------------------------- | --------------------------------------------------- | ----------------------------------------------------------------------------------- | ----------- | ----- | ----------- | ----- | ------------ | ----- | -------- | - | ------- | - | -------- | - | -------- | - | -------- | - | -------- | - | --- | - | --- | - | --- | - | --- | - | --- | - | - | - | - | - | 
|                                        |                                                     |                                                                                     |             |       | MeriStar    |       | Non-         |       | MeriStar |   | AGH     |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar
|                                        |                                                     |                                                                                     |             |       | Hospitality |       | Guarantor    |       | Sub 7C,  |   | Upreit, |   | Sub 5N,  |   | Sub 8A,  |   | Sub 8F,  |   | Sub 8G, 
|                                        |                                                     |                                                                                     |             |       | OP, L.P.    |       | Subsidiaries |       | LLC      |   | LLC     |   | LLC      |   | LLC      |   | L.P.     |   | LLC     
|                                        |                                                     |                                                                                     |             |       |            
|Participating lease revenue             |                                                     |                                                                                     |            |       |             |       | 44,565       |       |          |   |        |   |          |   |         |   |          |   | 310      |   |     |   | 505 |   |     |   | 801 |   |     |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        | Hotel operations:                                   |                                                                                     |             |      |             |       |              |      |          |   |         |  |          |   |          |  |          |   |          |  |     |   |     |  |     |   |     |  |     |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |             |       |            |       |              |       |         |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |             |       |            |       |              |       |         |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |             |       | (499        | )     |              |       | 197      |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   | (1  | ) |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental and other revenues                    |                                                                                     |             | 1,600 |             |       |              | 1,005 |          |   |         |  |          |   |          |  |          |   |          |  |     |   |     |  |     |   |     |  |     |   |   |  |  
|                                        |                                                     |                                                                                    
|Total revenue                           |                                                     |                                                                                     | 1,101       |       |             |       | 45,767       |       |          |   |        |   |          |   |         |   |          |   | 310      |   |     |   | 505 |   |     |   | 800 |   |     |   |  |  
|                                        |                                                     |                                                                                    
|                                        |                                                     |                                                                                     |             |       |             |       |              |       |          |   |         |   |          |   |          |   |          |   |          |   |     |   |     |   |     |   |     |   |     |   |   |  
|                                       
|                                       
|                                       
|                                       
|Hotel operating expenses by department: |                                                     |                                                                                     |            |       |             |       |             |       |          |   |        |   |          |   |         |   |          |   |         |   |     |   |    |   |     |   |    |   |     |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |             |       |            |       |              |       |         |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |             |       |            |       |              |       |         |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |             |       |            |       |              |       |         |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental, parking and other operating expenses |                                                                                     |             |      |             |       |              | 100   |          |   |         |  |          |   |          |  |          |   |          |  |     |   |     |  |     |   |     |  |     |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|Undistributed operating expenses:       |                                                     |                                                                                     |            |       |             |       |             |       |          |   |        |   |          |   |         |   |          |   |         |   |     |   |    |   |     |   |    |   |     |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Administrative and general                                                          |             |       |            |       |              |       | 1,759    |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   | (8  | ) |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property operating costs                                                            |             |       |            |       |              |       | 223      |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property taxes, insurance and other                                                 |             |       | 970         |       |              |       | 5,921    |   |         |   |         |   |          |   |         |   |          |   | 8   |   |     |   | 28  |   |     |   | 169 |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Depreciation and amortization                                                       |             |       | 894         |       |              |       | 13,229   |   |         |   |         |   |          |   |         |   |          |   | 32  |   |     |   | 73  |   |     |   | 109 |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of investment in STS Hotel Net                                           |             |       |            |       |              |       |         |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Swap termination fees                                                               |             |       |            |       |              |       |         |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of deferred costs                                                        |             |       |            |       |              |       |         |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on fair value of non-hedging derivatives                                       |             |       |            |       |              |       |         |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | FelCor merger costs                                                                 |             |       | 3,789       |       |              |       |         |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Costs to terminate leases with Prime Hospitality                                    |             |       |            |       |              |       |         |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     |                                                                                     | Corporation |       |             | 1,315 |              |       |          |  |         |   |          |  |          |   |          |  |          |   |     |  |     |   |     |  |     |   |     |  |   |   |   |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Restructuring charge                                                                |             |       |            |       |              |       |         |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Total operating expenses                                                            |             |       | 6,968       |       |              |       | 21,234   |   |         |   |         |   |          |   |         |   |          |   | 40  |   |     |   | 101 |   |     |   | 271 |   |   |   |  |  
|                                        |                                                     |                                                                                    
|                                        |                                                     |                                                                                     |             |       |             |       |              |       |          |   |         |   |          |   |          |   |          |   |          |   |     |   |     |   |     |   |     |   |     |   |   |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Net operating income                                                                |             |       | (5,867      | )     |              |       | 24,533   |   |         |   |         |   |          |   |         |   |          |   | 270 |   |     |   | 403 |   |     |   | 530 |   |   |   |  |  
|                                        |                                                     | Interest expense, net                                                               |             |       | 15,131      |       |              |       | 13,704   |   |         |   |         |   |          |   |         |   |          |   | (1  | ) |     |   | (3  | ) |     |   | (9  | ) |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Equity in income from consolidated entities                                         |             |       | (48,913     | )     |              |       |         |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before minority interests, income
tax benefit, loss on sale of assets |             |       | 27,915      |       |              |       | 10,804   |   |         |   |         |   |          |   |         |   |          |   | 272 |   |     |   | 407 |   |     |   | 538 |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Minority interests                                                                  |             |       | (5          | )     |              |       |         |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                        |                                                     |                                                                                    
|                                        |                                                     |                                                                                     |             |       |             |       |              |       |          |   |         |   |          |   |          |   |          |   |          |   |     |   |     |   |     |   |     |   |     |   |   |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income (loss) before income tax benefit, loss on
sale of assets                     |             |       | 27,920      |       |              |       | 10,804   |   |         |   |         |   |          |   |         |   |          |   | 272 |   |     |   | 407 |   |     |   | 538 |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income tax benefit                                                                  |             |       | 789         |       |              |       |         |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                        |                                                     |                                                                                    
|                                        |                                                     |                                                                                     |             |       |             |       |              |       |          |   |         |   |          |   |          |   |          |   |          |   |     |   |     |   |     |   |     |   |     |   |   |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income (loss) before loss on sale of assets                                         |             |       | 27,131      |       |              |       | 10,804   |   |         |   |         |   |          |   |         |   |          |   | 272 |   |     |   | 407 |   |     |   | 538 |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on sale of assets, net of tax effect                                           |             |       |            |       |              |       |         |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Extraordinary item, net of tax effect                                               |             |       | 0           |       |              |       |         |   |         |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Net income (loss)                                                                   |             |       | 27,131      |       |              |       | 10,804   |   |         |   |         |   |          |   |         |   |          |   | 272 |   |     |   | 407 |   |     |   | 538 |   |   |   |  |  
|                                        |                                                     |                                                                                    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended June 2001
(in thousands)

|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |   |          |   |          |    |          |   |          |   |     |   |     |   |     |   |     |   |     |   |   |   |   |   | 
|--------------------------------------- | --------------------------------------------------- | ----------------------------------------------------------------------------------- | ----------- | - | -------- | - | -------- | - | -------- | - | -------- | - | -------- | - | -------- | -- | -------- | - | -------- | - | --- | - | --- | - | --- | - | --- | - | --- | - | - | - | - | - | 
|                                        |                                                     |                                                                                     |             |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |    | MeriStar |   | MeriStar
|                                        |                                                     |                                                                                     |             |   | Sub 6H,  |   | Sub 8B,  |   | Sub 1C,  |   | Sub 8E,  |   | Sub 7F,  |   | Sub 5L,  |    | Sub 3C,  |   | Sub 5R, 
|                                        |                                                     |                                                                                     |             |   | L.P.     |   | LLC      |   | L.P.     |   | LLC      |   | LLC      |   | LLC      |    | LLC      |   | LLC     
|                                        |                                                     |                                                                                    
|Participating lease revenue             |                                                     |                                                                                     | 401         |   |          |   | 2,740    |   |          |   | 393      |   |          |   | 571      |    |          |   | 293      |   |     |   | 374 |   |     |   | 474 |   |     |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        | Hotel operations:                                   |                                                                                     |             |  |          |   |          |  |          |   |          |  |          |   |          |   |          |   |          |  |     |   |     |  |     |   |     |  |     |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |             |   |         |   |          |   |         |   |          |   |         |   |          |    |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |             |   |         |   |          |   |         |   |          |   |         |   |          |    |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |             |   |         |   |          |   |         |   |          |   |         |   |          |    | (6       | ) |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental and other revenues                    |                                                                                     |             |  |          |   |          |  |          |   |          |  |          |   |          | 10 |          |   |          |  |     |   |     |  |     |   |     |  |     |   |   |  |  
|                                        |                                                     |                                                                                    
|Total revenue                           |                                                     |                                                                                     | 401         |   |          |   | 2,740    |   |          |   | 393      |   |          |   | 576      |    |          |   | 293      |   |     |   | 374 |   |     |   | 474 |   |     |   |  |  
|                                        |                                                     |                                                                                    
|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |   |          |   |          |    |          |   |          |   |     |   |     |   |     |   |     |   |     |   |   |  
|                                       
|                                       
|                                       
|                                       
|Hotel operating expenses by department: |                                                     |                                                                                     |            |   |          |   |         |   |          |   |         |   |          |   |         |    |          |   |         |   |     |   |    |   |     |   |    |   |     |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |             |   |         |   |          |   |         |   |          |   |         |   |          |    |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |             |   |         |   |          |   |         |   |          |   |         |   |          |    |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |             |   |         |   |          |   |         |   |          |   | 5        |   |          |    | 2        |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental, parking and other operating expenses |                                                                                     |             |  |          |   |          |  |          |   |          |  |          |   |          |   |          |   |          |  |     |   |     |  |     |   |     |  |     |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|Undistributed operating expenses:       |                                                     |                                                                                     |            |   |          |   |         |   |          |   |         |   |          |   |         |    |          |   |         |   |     |   |    |   |     |   |    |   |     |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Administrative and general                                                          |             |   | (2       | ) |          |   |         |   |          |   |         |   |          |    |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property operating costs                                                            |             |   |         |   |          |   |         |   |          |   |         |   |          |    |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property taxes, insurance and other                                                 |             |   | 24       |   |          |   | (2,239   | ) |          |   | 290      |   |          |    | 38       |   |          |   | 34  |   |     |   | (10 | ) |     |   | 112 |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Depreciation and amortization                                                       |             |   | 106      |   |          |   | 577      |   |          |   | 253      |   |          |    | 131      |   |          |   | 115 |   |     |   | 30  |   |     |   | 172 |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of investment in STS Hotel Net                                           |             |   |         |   |          |   |         |   |          |   |         |   |          |    |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Swap termination fees                                                               |             |   |         |   |          |   |         |   |          |   |         |   |          |    |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of deferred costs                                                        |             |   |         |   |          |   |         |   |          |   |         |   |          |    |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on fair value of non-hedging derivatives                                       |             |   |         |   |          |   |         |   |          |   |         |   |          |    |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | FelCor merger costs                                                                 |             |   |         |   |          |   |         |   |          |   |         |   |          |    |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Costs to terminate leases with Prime Hospitality                                    |             |   |         |   |          |   |         |   |          |   |         |   |          |    |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     |                                                                                     | Corporation |   |          |  |          |   |          |  |          |   |          |  |          |    |          |  |          |   |     |  |     |   |     |  |     |   |     |  |   |   |   |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Restructuring charge                                                                |             |   |         |   |          |   |         |   |          |   |         |   |          |    |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Total operating expenses                                                            |             |   | 128      |   |          |   | (1,662   | ) |          |   | 548      |   |          |    | 171      |   |          |   | 149 |   |     |   | 20  |   |     |   | 284 |   |   |   |  |  
|                                        |                                                     |                                                                                    
|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |   |          |   |          |    |          |   |          |   |     |   |     |   |     |   |     |   |     |   |   |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Net operating income                                                                |             |   | 273      |   |          |   | 4,402    |   |          |   | (155     | ) |          |    | 405      |   |          |   | 144 |   |     |   | 354 |   |     |   | 190 |   |   |   |  |  
|                                        |                                                     | Interest expense, net                                                               |             |   | (1       | ) |          |   | (23      | ) |          |   | (6       | ) |          |    | (11      | ) |          |   | (3  | ) |     |   | (3  | ) |     |   | (6  | ) |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Equity in income from consolidated entities                                         |             |   |         |   |          |   |         |   |          |   |         |   |          |    |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before minority interests, income
tax benefit, loss on sale of assets |             |   | 274      |   |          |   | 4,425    |   |          |   | (149     | ) |          |    | 416      |   |          |   | 146 |   |     |   | 357 |   |     |   | 196 |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Minority interests                                                                  |             |   |         |   |          |   |         |   |          |   |         |   |          |    |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                        |                                                     |                                                                                    
|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |   |          |   |          |    |          |   |          |   |     |   |     |   |     |   |     |   |     |   |   |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income (loss) before income tax benefit, loss on
sale of assets                     |             |   | 274      |   |          |   | 4,425    |   |          |   | (149     | ) |          |    | 416      |   |          |   | 146 |   |     |   | 357 |   |     |   | 196 |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income tax benefit                                                                  |             |   |         |   |          |   |         |   |          |   |         |   |          |    |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                        |                                                     |                                                                                    
|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |   |          |   |          |    |          |   |          |   |     |   |     |   |     |   |     |   |     |   |   |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income (loss) before loss on sale of assets                                         |             |   | 274      |   |          |   | 4,425    |   |          |   | (149     | ) |          |    | 416      |   |          |   | 146 |   |     |   | 357 |   |     |   | 196 |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on sale of assets, net of tax effect                                           |             |   |         |   |          |   |         |   |          |   |         |   |          |    |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Extraordinary item, net of tax effect                                               |             |   |         |   |          |   |         |   |          |   |         |   |          |    |         |   |          |   |    |   |     |   |    |   |     |   |    |   |   |   |  |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Net income (loss)                                                                   |             |   | 274      |   |          |   | 4,425    |   |          |   | (149     | ) |          |    | 416      |   |          |   | 146 |   |     |   | 357 |   |     |   | 196 |   |   |   |  |  
|                                        |                                                     |                                                                                    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended June 2001
(in thousands)

|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |   |          |   |          |   |          |   |          |   |     |   |     |   |     |   |     |   |     |   |     |   |     |   | 
|--------------------------------------- | --------------------------------------------------- | ----------------------------------------------------------------------------------- | ----------- | - | -------- | - | -------- | - | -------- | - | -------- | - | -------- | - | -------- | - | -------- | - | -------- | - | --- | - | --- | - | --- | - | --- | - | --- | - | --- | - | --- | - | 
|                                        |                                                     |                                                                                     |             |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar
|                                        |                                                     |                                                                                     |             |   | Sub 6D,  |   | Sub 6E,  |   | Sub 4E,  |   | Sub 1B,  |   | Sub 5F,  |   | Sub 6G,  |   | Sub 8C,  |   | Sub 4C, 
|                                        |                                                     |                                                                                     |             |   | LLC      |   | LLC      |   | L.P.     |   | LLC      |   | L.P.     |   | LLC      |   | LLC      |   | L.P.    
|                                        |                                                     |                                                                                    
|Participating lease revenue             |                                                     |                                                                                     | 689         |   |          |   | 1,797    |   |          |   | 466      |   |          |   | 799      |   |          |   | 851      |   |     |   | 844 |   |     |   | 757 |   |     |   | 364 |  
|                                       
|                                       
|                                       
|                                       
|                                        | Hotel operations:                                   |                                                                                     |             |  |          |   |          |  |          |   |          |  |          |   |          |  |          |   |          |  |     |   |     |  |     |   |     |  |     |   |     |  |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |             |   | (4       | ) |          |   |         |   |          |   | (2       | ) |          |   |         |   |          |   |    |   |     |   |    |   |     |   | (2  | ) |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental and other revenues                    |                                                                                     |             | 6 |          |   |          |  |          |   |          | 6 |          |   |          |  |          |   |          |  |     |   |     |  |     |   |     | 2 |     |   |     |  |    
|                                        |                                                     |                                                                                    
|Total revenue                           |                                                     |                                                                                     | 691         |   |          |   | 1,797    |   |          |   | 470      |   |          |   | 799      |   |          |   | 851      |   |     |   | 844 |   |     |   | 757 |   |     |   | 364 |  
|                                        |                                                     |                                                                                    
|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |   |          |   |          |   |          |   |          |   |     |   |     |   |     |   |     |   |     |   |     |  
|                                       
|                                       
|                                       
|                                       
|Hotel operating expenses by department: |                                                     |                                                                                     |            |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental, parking and other operating expenses |                                                                                     |             |  |          |   |          |  |          |   |          |  |          |   |          |  |          |   |          |  |     |   |     |  |     |   |     |  |     |   |     |  |    
|                                       
|                                       
|                                       
|                                       
|Undistributed operating expenses:       |                                                     |                                                                                     |            |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Administrative and general                                                          |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property operating costs                                                            |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property taxes, insurance and other                                                 |             |   | 52       |   |          |   | 100      |   |          |   | 156      |   |          |   | 42       |   |          |   | 123 |   |     |   | 114 |   |     |   | 164 |   |     |   | 134 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Depreciation and amortization                                                       |             |   | 127      |   |          |   | 415      |   |          |   | 228      |   |          |   | 152      |   |          |   | 262 |   |     |   | 185 |   |     |   | 325 |   |     |   | 176 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of investment in STS Hotel Net                                           |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Swap termination fees                                                               |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of deferred costs                                                        |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on fair value of non-hedging derivatives                                       |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | FelCor merger costs                                                                 |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Costs to terminate leases with Prime Hospitality                                    |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     |                                                                                     | Corporation |   |          |  |          |   |          |  |          |   |          |  |          |   |          |  |          |   |     |  |     |   |     |  |     |   |     |  |     |   |     |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Restructuring charge                                                                |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Total operating expenses                                                            |             |   | 179      |   |          |   | 516      |   |          |   | 384      |   |          |   | 194      |   |          |   | 385 |   |     |   | 299 |   |     |   | 489 |   |     |   | 310 |  
|                                        |                                                     |                                                                                    
|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |   |          |   |          |   |          |   |          |   |     |   |     |   |     |   |     |   |     |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Net operating income                                                                |             |   | 513      |   |          |   | 1,281    |   |          |   | 86       |   |          |   | 605      |   |          |   | 466 |   |     |   | 545 |   |     |   | 268 |   |     |   | 54  |  
|                                        |                                                     | Interest expense, net                                                               |             |   |         |   |          |   |         |   |          |   | (6       | ) |          |   | (14      | ) |          |   | (7  | ) |     |   | (12 | ) |     |   | (4  | ) |     |   | (25 | )
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Equity in income from consolidated entities                                         |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before minority interests, income
tax benefit, loss on sale of assets |             |   |         |   |          |   | 2        |   |          |   | 519      |   |          |   | 1,296    |   |          |   | 93  |   |     |   | 617 |   |     |   | 470 |   |     |   | 570 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Minority interests                                                                  |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |   |          |   |          |   |          |   |          |   |     |   |     |   |     |   |     |   |     |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income (loss) before income tax benefit, loss on
sale of assets                     |             |   |         |   |          |   | 2        |   |          |   | 519      |   |          |   | 1,296    |   |          |   | 93  |   |     |   | 617 |   |     |   | 470 |   |     |   | 570 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income tax benefit                                                                  |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |   |          |   |          |   |          |   |          |   |     |   |     |   |     |   |     |   |     |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income (loss) before loss on sale of assets                                         |             |   |         |   |          |   | 2        |   |          |   | 519      |   |          |   | 1,296    |   |          |   | 93  |   |     |   | 617 |   |     |   | 470 |   |     |   | 570 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on sale of assets, net of tax effect                                           |             |   |         |   |          |   | 2,124    |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Extraordinary item, net of tax effect                                               |             |   |         |   |          |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Net income (loss)                                                                   |             |   |         |   |          |   | 2        |   |          |   | 519      |   |          |   | 1,296    |   |          |   | 93  |   |     |   | 617 |   |     |   | 470 |   |     |   | 570 |  
|                                        |                                                     |                                                                                    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended June 2001
(in thousands)

|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |   |          |   |         |   |          |   |          |   |       |   |     |   |          |   |       |   |       |   |     |   |     |   | 
|--------------------------------------- | --------------------------------------------------- | ----------------------------------------------------------------------------------- | ----------- | - | -------- | - | -------- | - | -------- | - | -------- | - | -------- | - | ------- | - | -------- | - | -------- | - | ----- | - | --- | - | -------- | - | ----- | - | ----- | - | --- | - | --- | - | 
|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |   |          |   |         |   |          |   |          |   |       |   |     |   | MeriStar |   |       |   |       |   |     |   |    
|                                        |                                                     |                                                                                     |             |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |   | Sub 7A  |   | MeriStar |   | MeriStar
|                                        |                                                     |                                                                                     |             |   | Sub 4H,  |   | Sub 7E,  |   | Sub 3D,  |   | Sub 1A,  |   | Sub 5E,  |   | Joint   |   | Sub 6K,  |   | Sub 2B, 
|                                        |                                                     |                                                                                     |             |   | L.P.     |   | LLC      |   | LLC      |   | LLC      |   | LLC      |   | Venture |   | LLC      |   | LLC     
|                                        |                                                     |                                                                                    
|Participating lease revenue             |                                                     |                                                                                     | 126         |   |          |   | 420      |   |          |   | 512      |   |          |   | 608     |   |          |   | 1,866    |   |       |   | 333 |   |          |   | 1,203 |   |       |   | 140 |  
|                                       
|                                       
|                                       
|                                       
|                                        | Hotel operations:                                   |                                                                                     |             |  |          |   |          |  |          |   |          |  |          |   |         |  |          |   |          |  |       |   |     |  |          |   |       |  |       |   |     |  |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental and other revenues                    |                                                                                     |             |  |          |   |          |  |          |   |          |  |          |   |         |  |          |   |          |  |       |   |     |  |          |   |       |  |       |   |     |  |    
|                                        |                                                     |                                                                                    
|Total revenue                           |                                                     |                                                                                     | 126         |   |          |   | 420      |   |          |   | 512      |   |          |   | 608     |   |          |   | 1,866    |   |       |   | 333 |   |          |   | 1,203 |   |       |   | 140 |  
|                                        |                                                     |                                                                                    
|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |   |          |   |         |   |          |   |          |   |       |   |     |   |          |   |       |   |       |   |     |  
|                                       
|                                       
|                                       
|                                       
|Hotel operating expenses by department: |                                                     |                                                                                     |            |   |          |   |         |   |          |   |         |   |          |   |        |   |          |   |         |   |       |   |    |   |          |   |      |   |       |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   | (2    | ) |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental, parking and other operating expenses |                                                                                     |             |  |          |   |          |  |          |   |          |  |          |   |         |  |          |   |          |  |       |   |     |  |          |   |       |  |       |   |     |  |    
|                                       
|                                       
|                                       
|                                       
|Undistributed operating expenses:       |                                                     |                                                                                     |            |   |          |   |         |   |          |   |         |   |          |   |        |   |          |   |         |   |       |   |    |   |          |   |      |   |       |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Administrative and general                                                          |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   | (42      | ) |       |   |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property operating costs                                                            |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property taxes, insurance and other                                                 |             |   | 39       |   |          |   | 37       |   |          |   | 70       |   |         |   | 100      |   |          |   | 91    |   |     |   | 27       |   |       |   | 111   |   |     |   | 50  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Depreciation and amortization                                                       |             |   | 133      |   |          |   | 151      |   |          |   | 224      |   |         |   | 117      |   |          |   | 457   |   |     |   | 101      |   |       |   | 185   |   |     |   | 96  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of investment in STS Hotel Net                                           |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Swap termination fees                                                               |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of deferred costs                                                        |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on fair value of non-hedging derivatives                                       |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | FelCor merger costs                                                                 |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Costs to terminate leases with Prime Hospitality                                    |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     |                                                                                     | Corporation |   |          |  |          |   |          |  |          |   |          |  |         |   |          |  |          |   |       |  |     |   |          |  |       |   |       |  |     |   |     |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Restructuring charge                                                                |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |      |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Total operating expenses                                                            |             |   | 172      |   |          |   | 188      |   |          |   | 294      |   |         |   | 217      |   |          |   | 548   |   |     |   | 85       |   |       |   | 294   |   |     |   | 146 |  
|                                        |                                                     |                                                                                    
|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |   |          |   |         |   |          |   |          |   |       |   |     |   |          |   |       |   |       |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Net operating income                                                                |             |   | (46      | ) |          |   | 232      |   |          |   | 217      |   |         |   | 391      |   |          |   | 1,318 |   |     |   | 248      |   |       |   | 909   |   |     |   | (6  | )
|                                        |                                                     | Interest expense, net                                                               |             |   | (14      | ) |          |   | (14      | ) |          |   | (3       | ) |         |   | (6       | ) |          |   | (30   | ) |     |   | (5       | ) |       |   | (35   | ) |     |   | (3  | )
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Equity in income from consolidated entities                                         |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |      |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before minority interests, income
tax benefit, loss on sale of assets |             |   | 282      |   |          |   | 68       |   |          |   | (42      | ) |         |   | 238      |   |          |   | 247   |   |     |   | 396      |   |       |   | 1,353 |   |     |   | 251 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Minority interests                                                                  |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |      |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |   |          |   |         |   |          |   |          |   |       |   |     |   |          |   |       |   |       |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income (loss) before income tax benefit, loss on
sale of assets                     |             |   | 282      |   |          |   | 68       |   |          |   | (42      | ) |         |   | 238      |   |          |   | 247   |   |     |   | 396      |   |       |   | 1,353 |   |     |   | 251 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income tax benefit                                                                  |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |      |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |   |          |   |         |   |          |   |          |   |       |   |     |   |          |   |       |   |       |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income (loss) before loss on sale of assets                                         |             |   | 282      |   |          |   | 68       |   |          |   | (42      | ) |         |   | 238      |   |          |   | 247   |   |     |   | 396      |   |       |   | 1,353 |   |     |   | 251 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on sale of assets, net of tax effect                                           |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Extraordinary item, net of tax effect                                               |             |   |         |   |          |   |         |   |          |   |         |   |         |   |         |   |          |   |      |   |     |   |         |   |       |   |      |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Net income (loss)                                                                   |             |   | 282      |   |          |   | 68       |   |          |   | (42      | ) |         |   | 238      |   |          |   | 247   |   |     |   | 396      |   |       |   | 1,353 |   |     |   | 251 |  
|                                        |                                                     |                                                                                    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended June 2001
(in thousands)

|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |   |          |   |             |   |          |   |          |   |     |   |     |   |      |   |     |   |       |   |     |   |     |   | 
|--------------------------------------- | --------------------------------------------------- | ----------------------------------------------------------------------------------- | ----------- | - | -------- | - | -------- | - | -------- | - | -------- | - | -------- | - | ----------- | - | -------- | - | -------- | - | --- | - | --- | - | ---- | - | --- | - | ----- | - | --- | - | --- | - | 
|                                        |                                                     |                                                                                     |             |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |   | MDV         |   | MeriStar |   | MeriStar
|                                        |                                                     |                                                                                     |             |   | Sub 3A,  |   | Sub 4A,  |   | Sub 4D,  |   | Sub 2A,  |   | Sub 6L,  |   | Limited     |   | Sub 5C,  |   | Sub 6J, 
|                                        |                                                     |                                                                                     |             |   | LLC      |   | L.P.     |   | LLC      |   | LLC      |   | LLC      |   | Partnership |   | LLC      |   | LLC     
|                                        |                                                     |                                                                                    
|Participating lease revenue             |                                                     |                                                                                     | 205         |   |          |   | 355      |   |          |   | 172      |   |          |   | 167         |   |          |   | 495      |   |     |   | 185 |   |      |   | 457 |   |       |   | 741 |  
|                                       
|                                       
|                                       
|                                       
|                                        | Hotel operations:                                   |                                                                                     |             |  |          |   |          |  |          |   |          |  |          |   |             |  |          |   |          |  |     |   |     |  |      |   |     |  |       |   |     |  |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |     |   |     |   |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |     |   |     |   |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |     |   |     |   |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental and other revenues                    |                                                                                     |             |  |          |   |          |  |          |   |          |  |          |   |             |  |          |   |          |  |     |   |     |  |      |   |     |  |       |   |     |  |    
|                                        |                                                     |                                                                                    
|Total revenue                           |                                                     |                                                                                     | 205         |   |          |   | 355      |   |          |   | 172      |   |          |   | 167         |   |          |   | 495      |   |     |   | 185 |   |      |   | 457 |   |       |   | 741 |  
|                                        |                                                     |                                                                                    
|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |   |          |   |             |   |          |   |          |   |     |   |     |   |      |   |     |   |       |   |     |  
|                                       
|                                       
|                                       
|                                       
|Hotel operating expenses by department: |                                                     |                                                                                     |            |   |          |   |         |   |          |   |         |   |          |   |            |   |          |   |         |   |     |   |    |   |      |   |    |   |       |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |     |   |     |   |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |     |   |     |   |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |             |   | (3       | ) |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |     |   |     |   |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental, parking and other operating expenses |                                                                                     |             |  |          |   |          |  |          |   |          |  |          |   |             |  |          |   |          |  |     |   |     |  |      |   |     |  |       |   |     |  |    
|                                       
|                                       
|                                       
|                                       
|Undistributed operating expenses:       |                                                     |                                                                                     |            |   |          |   |         |   |          |   |         |   |          |   |            |   |          |   |         |   |     |   |    |   |      |   |    |   |       |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Administrative and general                                                          |             |   |         |   |          |   | (6       | ) |          |   |         |   |             |   |         |   |          |   |    |   |     |   | (8   | ) |     |   |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property operating costs                                                            |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |     |   |     |   |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property taxes, insurance and other                                                 |             |   | 32       |   |          |   | 89       |   |          |   | (6       | ) |             |   | 60       |   |          |   | 48  |   |     |   | 40   |   |     |   | (823  | ) |     |   | 49  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Depreciation and amortization                                                       |             |   | 85       |   |          |   |         |   |          |   | 71       |   |             |   | 79       |   |          |   | 219 |   |     |   | 30   |   |     |   | 144   |   |     |   | 149 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of investment in STS Hotel Net                                           |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |     |   |     |   |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Swap termination fees                                                               |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |     |   |     |   |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of deferred costs                                                        |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |     |   |     |   |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on fair value of non-hedging derivatives                                       |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |     |   |     |   |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | FelCor merger costs                                                                 |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |     |   |     |   |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Costs to terminate leases with Prime Hospitality                                    |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |     |   |     |   |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     |                                                                                     | Corporation |   |          |  |          |   |          |  |          |   |          |  |             |   |          |  |          |   |     |  |     |   |      |  |     |   |       |  |     |   |     |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Restructuring charge                                                                |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |     |   |     |   |      |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Total operating expenses                                                            |             |   | 114      |   |          |   | 83       |   |          |   | 65       |   |             |   | 140      |   |          |   | 267 |   |     |   | 63   |   |     |   | (679  | ) |     |   | 198 |  
|                                        |                                                     |                                                                                    
|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |   |          |   |             |   |          |   |          |   |     |   |     |   |      |   |     |   |       |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Net operating income                                                                |             |   | 92       |   |          |   | 272      |   |          |   | 106      |   |             |   | 27       |   |          |   | 228 |   |     |   | 122  |   |     |   | 1,135 |   |     |   | 544 |  
|                                        |                                                     | Interest expense, net                                                               |             |   | (8       | ) |          |   | 93       |   |          |   | (4       | ) |             |   | (8       | ) |          |   | (13 | ) |     |   | 173  |   |     |   | (7    | ) |     |   | (2  | )
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Equity in income from consolidated entities                                         |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |     |   |     |   |      |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before minority interests, income
tax benefit, loss on sale of assets |             |   | 917      |   |          |   | (99      | ) |          |   | 96       |   |             |   | 281      |   |          |   | 119 |   |     |   | (146 | ) |     |   | 235   |   |     |   | 124 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Minority interests                                                                  |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |     |   |     |   |      |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |   |          |   |             |   |          |   |          |   |     |   |     |   |      |   |     |   |       |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income (loss) before income tax benefit, loss on
sale of assets                     |             |   | 917      |   |          |   | (99      | ) |          |   | 96       |   |             |   | 281      |   |          |   | 119 |   |     |   | (146 | ) |     |   | 235   |   |     |   | 124 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income tax benefit                                                                  |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |     |   |     |   |      |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |   |          |   |             |   |          |   |          |   |     |   |     |   |      |   |     |   |       |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income (loss) before loss on sale of assets                                         |             |   | 917      |   |          |   | (99      | ) |          |   | 96       |   |             |   | 281      |   |          |   | 119 |   |     |   | (146 | ) |     |   | 235   |   |     |   | 124 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on sale of assets, net of tax effect                                           |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |     |   |     |   |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Extraordinary item, net of tax effect                                               |             |   |         |   |          |   |         |   |          |   |         |   |             |   |         |   |          |   |    |   |     |   |     |   |     |   |      |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Net income (loss)                                                                   |             |   | 917      |   |          |   | (99      | ) |          |   | 96       |   |             |   | 281      |   |          |   | 119 |   |     |   | (146 | ) |     |   | 235   |   |     |   | 124 |  
|                                        |                                                     |                                                                                    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended June 2001
(in thousands)

|                                        |                                                     |                                                                                     |             |    |          |   |          |   |          |   |          |     |          |   |          |   |          |   |          |   |       |   |    |   |      |   |     |   |     |   |       |   |      |   | 
|--------------------------------------- | --------------------------------------------------- | ----------------------------------------------------------------------------------- | ----------- | -- | -------- | - | -------- | - | -------- | - | -------- | --- | -------- | - | -------- | - | -------- | - | -------- | - | ----- | - | -- | - | ---- | - | --- | - | --- | - | ----- | - | ---- | - | 
|                                        |                                                     |                                                                                     |             |    | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |     | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar
|                                        |                                                     |                                                                                     |             |    | Sub 1D,  |   | Sub 7B,  |   | Sub 7D,  |   | Sub 7G,  |     | Sub 6B,  |   | Sub 4I,  |   | Sub 5D,  |   | Sub 5H, 
|                                        |                                                     |                                                                                     |             |    | L.P.     |   | L.P.     |   | LLC      |   | LLC      |     | LLC      |   | L.P.     |   | LLC      |   | LLC     
|                                        |                                                     |                                                                                    
|Participating lease revenue             |                                                     |                                                                                     | 1,562       |    |          |   | 370      |   |          |   | 1,972    |     |          |   | 250      |   |          |   | 325      |   |       |   | 22 |   |      |   | 572 |   |     |   | 1,372 |  
|                                       
|                                       
|                                       
|                                       
|                                        | Hotel operations:                                   |                                                                                     |             |   |          |   |          |  |          |   |          |    |          |   |          |  |          |   |          |  |       |   |    |  |      |   |     |  |     |   |       |  |     
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |             |    |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |      |   |    |   |     |   |     |   |    |   |       |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |             |    |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |      |   |    |   |     |   |     |   |    |   |       |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |             |    |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |      |   |    |   | (3   | ) |     |   |    |   |       |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental and other revenues                    |                                                                                     |             | 97 |          |   |          |  |          |   |          | 488 |          |   |          |  |          |   |          |  |       |   |    | 4 |      |   |     | 3 |     |   |       |  |     
|                                        |                                                     |                                                                                    
|Total revenue                           |                                                     |                                                                                     | 1,659       |    |          |   | 370      |   |          |   | 2,461    |     |          |   | 250      |   |          |   | 325      |   |       |   | 23 |   |      |   | 575 |   |     |   | 1,372 |  
|                                        |                                                     |                                                                                    
|                                        |                                                     |                                                                                     |             |    |          |   |          |   |          |   |          |     |          |   |          |   |          |   |          |   |       |   |    |   |      |   |     |   |     |   |       |  
|                                       
|                                       
|                                       
|                                       
|Hotel operating expenses by department: |                                                     |                                                                                     |            |    |          |   |         |   |          |   |         |     |          |   |         |   |          |   |         |   |       |   |   |   |      |   |    |   |     |   |      |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |             |    |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |      |   |    |   |     |   |     |   |    |   |       |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |             |    |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |      |   |    |   |     |   |     |   |    |   |       |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |             |    |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |      |   |    |   |     |   |     |   |    |   |       |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental, parking and other operating expenses |                                                                                     |             | 26 |          |   |          |  |          |   |          | (28 | )        |   |          |  |          |   |          |  |       |   |    |  |      |   |     |  |     |   |       |  |     
|                                       
|                                       
|                                       
|                                       
|Undistributed operating expenses:       |                                                     |                                                                                     |            |    |          |   |         |   |          |   |         |     |          |   |         |   |          |   |         |   |       |   |   |   |      |   |    |   |     |   |      |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Administrative and general                                                          |             |    |         |   |          |   | (101     | ) |          |     | (109     | ) |          |   |         |   |          |   |      |   |    |   |     |   |     |   | 6   |   |       |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property operating costs                                                            |             |    |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |      |   |    |   |     |   |     |   |    |   |       |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property taxes, insurance and other                                                 |             |    | 276      |   |          |   | 214      |   |          |     | 757      |   |          |   | 49       |   |          |   | 64    |   |    |   | 83   |   |     |   | 16  |   |       |   | 70   |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Depreciation and amortization                                                       |             |    | 542      |   |          |   | 216      |   |          |     | 392      |   |          |   | 177      |   |          |   | 113   |   |    |   | 212  |   |     |   | 355 |   |       |   | 487  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of investment in STS Hotel Net                                           |             |    |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |      |   |    |   |     |   |     |   |    |   |       |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Swap termination fees                                                               |             |    |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |      |   |    |   |     |   |     |   |    |   |       |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of deferred costs                                                        |             |    |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |      |   |    |   |     |   |     |   |    |   |       |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on fair value of non-hedging derivatives                                       |             |    |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |      |   |    |   |     |   |     |   |    |   |       |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | FelCor merger costs                                                                 |             |    |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |      |   |    |   |     |   |     |   |    |   |       |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Costs to terminate leases with Prime Hospitality                                    |             |    |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |      |   |    |   |     |   |     |   |    |   |       |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     |                                                                                     | Corporation |    |          |  |          |   |          |  |          |     |          |  |          |   |          |  |          |   |       |  |    |   |      |  |     |   |     |  |       |   |      |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Restructuring charge                                                                |             |    |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |      |   |    |   |     |   |     |   |    |   |       |   |     |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Total operating expenses                                                            |             |    | 844      |   |          |   | 329      |   |          |     | 1,011    |   |          |   | 226      |   |          |   | 177   |   |    |   | 296  |   |     |   | 377 |   |       |   | 557  |  
|                                        |                                                     |                                                                                    
|                                        |                                                     |                                                                                     |             |    |          |   |          |   |          |   |          |     |          |   |          |   |          |   |          |   |       |   |    |   |      |   |     |   |     |   |       |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Net operating income                                                                |             |    | 816      |   |          |   | 41       |   |          |     | 1,450    |   |          |   | 24       |   |          |   | 148   |   |    |   | (273 | ) |     |   | 198 |   |       |   | 814  |  
|                                        |                                                     | Interest expense, net                                                               |             |    | (10      | ) |          |   | (11      | ) |          |     | (10      | ) |          |   | (25      | ) |          |   | (30   | ) |    |   | (19  | ) |     |   | (2  | ) |       |   | (4   | )
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Equity in income from consolidated entities                                         |             |    |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |      |   |    |   |     |   |     |   |    |   |       |   |     |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before minority interests, income
tax benefit, loss on sale of assets |             |    | 1,146    |   |          |   | 555      |   |          |     | 825      |   |          |   | 67       |   |          |   | 1,480 |   |    |   | 43   |   |     |   | 150 |   |       |   | (269 | )
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Minority interests                                                                  |             |    |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |      |   |    |   |     |   |     |   |    |   |       |   |     |  
|                                        |                                                     |                                                                                    
|                                        |                                                     |                                                                                     |             |    |          |   |          |   |          |   |          |     |          |   |          |   |          |   |          |   |       |   |    |   |      |   |     |   |     |   |       |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income (loss) before income tax benefit, loss on
sale of assets                     |             |    | 1,146    |   |          |   | 555      |   |          |     | 825      |   |          |   | 67       |   |          |   | 1,480 |   |    |   | 43   |   |     |   | 150 |   |       |   | (269 | )
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income tax benefit                                                                  |             |    |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |      |   |    |   |     |   |     |   |    |   |       |   |     |  
|                                        |                                                     |                                                                                    
|                                        |                                                     |                                                                                     |             |    |          |   |          |   |          |   |          |     |          |   |          |   |          |   |          |   |       |   |    |   |      |   |     |   |     |   |       |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income (loss) before loss on sale of assets                                         |             |    | 1,146    |   |          |   | 555      |   |          |     | 825      |   |          |   | 67       |   |          |   | 1,480 |   |    |   | 43   |   |     |   | 150 |   |       |   | (269 | )
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on sale of assets, net of tax effect                                           |             |    |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |      |   |    |   |     |   |     |   |    |   |       |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Extraordinary item, net of tax effect                                               |             |    |         |   |          |   |         |   |          |     |         |   |          |   |         |   |          |   |      |   |    |   |     |   |     |   |    |   |       |   |     |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Net income (loss)                                                                   |             |    | 1,146    |   |          |   | 555      |   |          |     | 825      |   |          |   | 67       |   |          |   | 1,480 |   |    |   | 43   |   |     |   | 150 |   |       |   | (269 | )
|                                        |                                                     |                                                                                    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended June 2001
(in thousands)

|                                        |                                                     |                                                                                     |             |   |          |   |        |   |          |   |          |   |          |   |          |   |          |   |          |   |     |   |     |   |     |   |     |   |     |   |     |   |     |   | 
|--------------------------------------- | --------------------------------------------------- | ----------------------------------------------------------------------------------- | ----------- | - | -------- | - | ------ | - | -------- | - | -------- | - | -------- | - | -------- | - | -------- | - | -------- | - | --- | - | --- | - | --- | - | --- | - | --- | - | --- | - | --- | - | 
|                                        |                                                     |                                                                                     |             |   | MeriStar |   | AGH    |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar
|                                        |                                                     |                                                                                     |             |   | Sub 7H,  |   | PSS I, |   | Sub 2D,  |   | Sub 4F,  |   | Sub 5K,  |   | Sub 5M,  |   | Sub 1E,  |   | Sub 5O, 
|                                        |                                                     |                                                                                     |             |   | LLC      |   | Inc.   |   | LLC      |   | L.P.     |   | LLC      |   | LLC      |   | L.P.     |   | LLC     
|                                        |                                                     |                                                                                    
|Participating lease revenue             |                                                     |                                                                                     | 308         |   |          |   | 876    |   |          |   | 393      |   |          |   | 508      |   |          |   | 731      |   |     |   | 650 |   |     |   | 507 |   |     |   | 247 |  
|                                       
|                                       
|                                       
|                                       
|                                        | Hotel operations:                                   |                                                                                     |             |  |          |   |        |  |          |   |          |  |          |   |          |  |          |   |          |  |     |   |     |  |     |   |     |  |     |   |     |  |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |             |   |         |   |        |   | (1       | ) |          |   |         |   |          |   | (1       | ) |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental and other revenues                    |                                                                                     |             |  |          |   |        | 2 |          |   |          |  |          |   |          | 4 |          |   |          |  |     |   |     |  |     |   |     |  |     |   |     |  |    
|                                        |                                                     |                                                                                    
|Total revenue                           |                                                     |                                                                                     | 308         |   |          |   | 877    |   |          |   | 393      |   |          |   | 511      |   |          |   | 731      |   |     |   | 650 |   |     |   | 507 |   |     |   | 247 |  
|                                        |                                                     |                                                                                    
|                                        |                                                     |                                                                                     |             |   |          |   |        |   |          |   |          |   |          |   |          |   |          |   |          |   |     |   |     |   |     |   |     |   |     |   |     |  
|                                       
|                                       
|                                       
|                                       
|Hotel operating expenses by department: |                                                     |                                                                                     |            |   |          |   |       |   |          |   |         |   |          |   |         |   |          |   |         |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental, parking and other operating expenses |                                                                                     |             |  |          |   |        |  |          |   |          |  |          |   |          |  |          |   |          |  |     |   |     |  |     |   |     |  |     |   |     |  |    
|                                       
|                                       
|                                       
|                                       
|Undistributed operating expenses:       |                                                     |                                                                                     |            |   |          |   |       |   |          |   |         |   |          |   |         |   |          |   |         |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Administrative and general                                                          |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property operating costs                                                            |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property taxes, insurance and other                                                 |             |   | 102      |   |        |   | 44       |   |          |   | 106      |   |          |   | 96       |   |          |   | 110 |   |     |   | 10  |   |     |   | 37  |   |     |   | 8   |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Depreciation and amortization                                                       |             |   | 173      |   |        |   |         |   |          |   | 116      |   |          |   | 271      |   |          |   | 296 |   |     |   | 110 |   |     |   | 72  |   |     |   | 53  |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of investment in STS Hotel Net                                           |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Swap termination fees                                                               |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of deferred costs                                                        |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on fair value of non-hedging derivatives                                       |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | FelCor merger costs                                                                 |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Costs to terminate leases with Prime Hospitality                                    |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     |                                                                                     | Corporation |   |          |  |        |   |          |  |          |   |          |  |          |   |          |  |          |   |     |  |     |   |     |  |     |   |     |  |     |   |     |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Restructuring charge                                                                |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Total operating expenses                                                            |             |   | 275      |   |        |   | 44       |   |          |   | 222      |   |          |   | 367      |   |          |   | 406 |   |     |   | 120 |   |     |   | 108 |   |     |   | 62  |  
|                                        |                                                     |                                                                                    
|                                        |                                                     |                                                                                     |             |   |          |   |        |   |          |   |          |   |          |   |          |   |          |   |          |   |     |   |     |   |     |   |     |   |     |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Net operating income                                                                |             |   | 33       |   |        |   | 834      |   |          |   | 170      |   |          |   | 144      |   |          |   | 325 |   |     |   | 529 |   |     |   | 399 |   |     |   | 185 |  
|                                        |                                                     | Interest expense, net                                                               |             |   | 260      |   |        |   | (9       | ) |          |   | (7       | ) |          |   | (2       | ) |          |   | 197 |   |     |   | (8  | ) |     |   | (8  | ) |     |   | (6  | )
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Equity in income from consolidated entities                                         |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before minority interests, income
tax benefit, loss on sale of assets |             |   | (62      | ) |        |   | 823      |   |          |   | 40       |   |          |   | 836      |   |          |   | (26 | ) |     |   | 152 |   |     |   | 333 |   |     |   | 536 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Minority interests                                                                  |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     |                                                                                     |             |   |          |   |        |   |          |   |          |   |          |   |          |   |          |   |          |   |     |   |     |   |     |   |     |   |     |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income (loss) before income tax benefit, loss on
sale of assets                     |             |   | (62      | ) |        |   | 823      |   |          |   | 40       |   |          |   | 836      |   |          |   | (26 | ) |     |   | 152 |   |     |   | 333 |   |     |   | 536 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income tax benefit                                                                  |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     |                                                                                     |             |   |          |   |        |   |          |   |          |   |          |   |          |   |          |   |          |   |     |   |     |   |     |   |     |   |     |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income (loss) before loss on sale of assets                                         |             |   | (62      | ) |        |   | 823      |   |          |   | 40       |   |          |   | 836      |   |          |   | (26 | ) |     |   | 152 |   |     |   | 333 |   |     |   | 536 |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on sale of assets, net of tax effect                                           |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Extraordinary item, net of tax effect                                               |             |   |         |   |        |   |         |   |          |   |         |   |          |   |         |   |          |   |    |   |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Net income (loss)                                                                   |             |   | (62      | ) |        |   | 823      |   |          |   | 40       |   |          |   | 836      |   |          |   | (26 | ) |     |   | 152 |   |     |   | 333 |   |     |   | 536 |  
|                                        |                                                     |                                                                                    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended June 2001
(in thousands)

|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |   |          |   |          |    |          |   |          |    |     |   |     |   |      |   |       |    |       |   |     |   |     |   | 
|--------------------------------------- | --------------------------------------------------- | ----------------------------------------------------------------------------------- | ----------- | - | -------- | - | -------- | - | -------- | - | -------- | - | -------- | - | -------- | -- | -------- | - | -------- | -- | --- | - | --- | - | ---- | - | ----- | -- | ----- | - | --- | - | --- | - | 
|                                        |                                                     |                                                                                     |             |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |    | MeriStar |   | MeriStar
|                                        |                                                     |                                                                                     |             |   | Sub 6M   |   | Sub 4B,  |   | Sub 6C,  |   | Sub 2C,  |   | Sub 4G,  |   | Sub 3B,  |    | Sub 5G,  |   | Sub 5P, 
|                                        |                                                     |                                                                                     |             |   | Company  |   | L.P.     |   | LLC      |   | LLC      |   | L.P.     |   | LLC      |    | L.P.     |   | LLC     
|                                        |                                                     |                                                                                    
|Participating lease revenue             |                                                     |                                                                                     | 1,480       |   |          |   | 45       |   |          |   | 901      |   |          |   | 455      |    |          |   | 826      |    |     |   | 293 |   |      |   | 3,353 |    |       |   | 207 |  
|                                       
|                                       
|                                       
|                                       
|                                        | Hotel operations:                                   |                                                                                     |             |  |          |   |          |  |          |   |          |  |          |   |          |   |          |   |          |   |     |   |     |  |      |   |       |   |       |   |     |  |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |             |   |         |   |          |   |         |   |          |   |         |   |          |    |         |   |          |    |    |   |     |   |     |   |       |    |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |             |   |         |   |          |   |         |   |          |   |         |   |          |    |         |   |          |    |    |   |     |   |     |   |       |    |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |             |   |         |   |          |   |         |   |          |   | (3       | ) |          |    | (12      | ) |          |    |    |   |     |   | (3   | ) |       |    | (16   | ) |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental and other revenues                    |                                                                                     |             |  |          |   |          |  |          |   |          | 6 |          |   |          | 15 |          |   |          | 12 |     |   |     | 7 |      |   |       | 32 |       |   |     |  |    
|                                        |                                                     |                                                                                    
|Total revenue                           |                                                     |                                                                                     | 1,480       |   |          |   | 45       |   |          |   | 904      |   |          |   | 459      |    |          |   | 838      |    |     |   | 297 |   |      |   | 3,369 |    |       |   | 207 |  
|                                        |                                                     |                                                                                    
|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |   |          |   |          |    |          |   |          |    |     |   |     |   |      |   |       |    |       |   |     |  
|                                       
|                                       
|                                       
|                                       
|Hotel operating expenses by department: |                                                     |                                                                                     |            |   |          |   |         |   |          |   |         |   |          |   |         |    |          |   |         |    |     |   |    |   |      |   |      |    |       |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |             |   |         |   |          |   |         |   |          |   |         |   |          |    |         |   |          |    |    |   |     |   |     |   |       |    |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |             |   |         |   |          |   |         |   |          |   |         |   |          |    |         |   |          |    |    |   |     |   |     |   |       |    |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |             |   |         |   |          |   |         |   |          |   |         |   |          |    |         |   |          |    |    |   |     |   | 9    |   |       |    |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental, parking and other operating expenses |                                                                                     |             |  |          |   |          |  |          |   |          |  |          |   |          |   |          |   |          |   |     |   |     |  |      |   |       |   |       |   |     |  |    
|                                       
|                                       
|                                       
|                                       
|Undistributed operating expenses:       |                                                     |                                                                                     |            |   |          |   |         |   |          |   |         |   |          |   |         |    |          |   |         |    |     |   |    |   |      |   |      |    |       |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Administrative and general                                                          |             |   |         |   |          |   |         |   |          |   |         |   |          |    |         |   |          |    |    |   |     |   |     |   |       |    | 2     |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property operating costs                                                            |             |   |         |   |          |   |         |   |          |   |         |   |          |    |         |   |          |    |    |   |     |   |     |   |       |    |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property taxes, insurance and other                                                 |             |   | 81       |   |          |   | 97       |   |          |   | 31       |   |          |    | 201      |   |          |    | 165 |   |     |   | 68   |   |       |    | 652   |   |     |   | 4   |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Depreciation and amortization                                                       |             |   | 298      |   |          |   | 270      |   |          |   | 180      |   |          |    | 260      |   |          |    | 208 |   |     |   | 219  |   |       |    | 1,540 |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of investment in STS Hotel Net                                           |             |   |         |   |          |   |         |   |          |   |         |   |          |    |         |   |          |    |    |   |     |   |     |   |       |    |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Swap termination fees                                                               |             |   |         |   |          |   |         |   |          |   |         |   |          |    |         |   |          |    |    |   |     |   |     |   |       |    |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of deferred costs                                                        |             |   |         |   |          |   |         |   |          |   |         |   |          |    |         |   |          |    |    |   |     |   |     |   |       |    |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on fair value of non-hedging derivatives                                       |             |   |         |   |          |   |         |   |          |   |         |   |          |    |         |   |          |    |    |   |     |   |     |   |       |    |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | FelCor merger costs                                                                 |             |   |         |   |          |   |         |   |          |   |         |   |          |    |         |   |          |    |    |   |     |   |     |   |       |    |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Costs to terminate leases with Prime Hospitality                                    |             |   |         |   |          |   |         |   |          |   |         |   |          |    |         |   |          |    |    |   |     |   |     |   |       |    |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     |                                                                                     | Corporation |   |          |  |          |   |          |  |          |   |          |  |          |    |          |  |          |    |     |  |     |   |      |  |       |    |       |  |     |   |     |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Restructuring charge                                                                |             |   |         |   |          |   |         |   |          |   |         |   |          |    |         |   |          |    |    |   |     |   |     |   |       |    |      |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Total operating expenses                                                            |             |   | 379      |   |          |   | 367      |   |          |   | 211      |   |          |    | 460      |   |          |    | 373 |   |     |   | 296  |   |       |    | 2,195 |   |     |   | 4   |  
|                                        |                                                     |                                                                                    
|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |   |          |   |          |    |          |   |          |    |     |   |     |   |      |   |       |    |       |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Net operating income                                                                |             |   | 1,101    |   |          |   | (322     | ) |          |   | 693      |   |          |    | (1       | ) |          |    | 465 |   |     |   | 1    |   |       |    | 1,175 |   |     |   | 202 |  
|                                        |                                                     | Interest expense, net                                                               |             |   | (8       | ) |          |   | (1       | ) |          |   | (4       | ) |          |    | (18      | ) |          |    | (17 | ) |     |   | 349  |   |       |    | (12   | ) |     |   | (8  | )
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Equity in income from consolidated entities                                         |             |   |         |   |          |   |         |   |          |   |         |   |          |    |         |   |          |    |    |   |     |   |     |   |       |    |      |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before minority interests, income
tax benefit, loss on sale of assets |             |   | 407      |   |          |   | 186      |   |          |   | 1,105    |   |          |    | (304     | ) |          |    | 710 |   |     |   | (350 | ) |       |    | 477   |   |     |   | 9   |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Minority interests                                                                  |             |   |         |   |          |   |         |   |          |   |         |   |          |    |         |   |          |    |    |   |     |   |     |   |       |    |      |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |   |          |   |          |    |          |   |          |    |     |   |     |   |      |   |       |    |       |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income (loss) before income tax benefit, loss on
sale of assets                     |             |   | 407      |   |          |   | 186      |   |          |   | 1,105    |   |          |    | (304     | ) |          |    | 710 |   |     |   | (350 | ) |       |    | 477   |   |     |   | 9   |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income tax benefit                                                                  |             |   |         |   |          |   |         |   |          |   |         |   |          |    |         |   |          |    |    |   |     |   |     |   |       |    |      |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |   |          |   |          |    |          |   |          |    |     |   |     |   |      |   |       |    |       |   |     |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income (loss) before loss on sale of assets                                         |             |   | 407      |   |          |   | 186      |   |          |   | 1,105    |   |          |    | (304     | ) |          |    | 710 |   |     |   | (350 | ) |       |    | 477   |   |     |   | 9   |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on sale of assets, net of tax effect                                           |             |   |         |   |          |   |         |   |          |   |         |   |          |    |         |   |          |    |    |   |     |   |     |   |       |    |      |   |     |   |    |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Extraordinary item, net of tax effect                                               |             |   |         |   |          |   |         |   |          |   |         |   |          |    |         |   |          |    |    |   |     |   |     |   |       |    |      |   |     |   |    |  
|                                        |                                                     |                                                                                    
|                                        |                                                     | Net income (loss)                                                                   |             |   | 407      |   |          |   | 186      |   |          |   | 1,105    |   |          |    | (304     | ) |          |    | 710 |   |     |   | (350 | ) |       |    | 477   |   |     |   | 9   |  
|                                        |                                                     |                                                                                    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended June 2001
(in thousands)

|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |    |          |   |              |   |              |   |              |     |       |   |         |     |         |   |         |   |         |   |         |       |         |       | 
|--------------------------------------- | --------------------------------------------------- | ----------------------------------------------------------------------------------- | ----------- | - | -------- | - | -------- | - | -------- | - | -------- | -- | -------- | - | ------------ | - | ------------ | - | ------------ | --- | ----- | - | ------- | --- | ------- | - | ------- | - | ------- | - | ------- | ----- | ------- | ----- | 
|                                        |                                                     |                                                                                     |             |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |    | MeriStar |   | MeriStar     |   |              |   |              |     |       |   |        
|                                        |                                                     |                                                                                     |             |   | Sub 5J,  |   | Sub 5Q,  |   | Sub 5A,  |   | Sub 8D,  |    | Sub 4J,  |   | Hotel        |   |              |   |              |     | Total
|                                        |                                                     |                                                                                     |             |   | LLC      |   | LLC      |   | LLC      |   | LLC      |    | LLC      |   | Lessee, Inc. |   | Eliminations |   | Consolidated
|                                        |                                                     |                                                                                    
|Participating lease revenue             |                                                     |                                                                                     | 3,405       |   |          |   | 799      |   |          |   | 1,347    |    |          |   | 969          |   |              |   | 831          |     |       |   |        |     |         |   | (87,804 | ) |         |   | 3,752   |      
|                                       
|                                       
|                                       
|                                       
|                                        | Hotel operations:                                   |                                                                                     |             |  |          |   |          |  |          |   |          |   |          |   |              |  |              |   |              |    |       |   |         |    |         |   |         |  |         |   |         |      |        
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |             |   |         |   |          |   |         |   |          |    |         |   |              |   |             |   |              |     |      |   |         |     | 202,380 |   |         |   |        |   |         |       | 202,380 |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |             |   |         |   |          |   |         |   |          |    |         |   |              |   |             |   |              |     |      |   |         |     | 74,092  |   |         |   |        |   |         |       | 74,092  |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |             |   |         |   |          |   |         |   |          |    | (23      | ) |              |   |             |   |              |     | (1    | ) |         |     | 23,914  |   |         |   |        |   |         |       | 23,534  |      
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental and other revenues                    |                                                                                     |             |  |          |   |          |  |          |   |          | 47 |          |   |              |  |              |   |              | 62  |       |   |         |    |         |   |         |  |         |   |         | 3,409 |        
|                                        |                                                     |                                                                                    
|Total revenue                           |                                                     |                                                                                     | 3,405       |   |          |   | 799      |   |          |   | 1,371    |    |          |   | 969          |   |              |   | 891          |     |       |   | 300,386 |     |         |   | (87,804 | ) |         |   | 307,167 |      
|                                        |                                                     |                                                                                    
|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |    |          |   |              |   |              |   |              |     |       |   |         |     |         |   |         |   |         |   |         |      
|                                       
|                                       
|                                       
|                                       
|Hotel operating expenses by department: |                                                     |                                                                                     |            |   |          |   |         |   |          |   |         |    |          |   |             |   |              |   |             |     |       |   |        |     |         |   |        |   |         |   |        |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |             |   |         |   |          |   |         |   |          |    |         |   |              |   |             |   |              |     |      |   |         |     | 46,565  |   |         |   |        |   |         |       | 46,565  |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |             |   |         |   |          |   |         |   |          |    |         |   |              |   |             |   |              |     |      |   |         |     | 52,486  |   |         |   |        |   |         |       | 52,486  |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |             |   |         |   |          |   |         |   |          |    |         |   |              |   | (5           | ) |              |     | 10    |   |         |     | 12,030  |   |         |   |        |   |         |       | 12,046  |      
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental, parking and other operating expenses |                                                                                     |             |  |          |   |          |  |          |   |          |   |          |   |              |  |              |   |              | 108 |       |   |         | 483 |         |   |         |  |         |   |         | 688   |        
|                                       
|                                       
|                                       
|                                       
|Undistributed operating expenses:       |                                                     |                                                                                     |            |   |          |   |         |   |          |   |         |    |          |   |             |   |              |   |             |     |       |   |        |     |         |   |        |   |         |   |        |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Administrative and general                                                          |             |   |         |   |          |   |         |   |          |    | 2        |   |              |   | 26           |   |              |     | 1     |   |         |     | 41,619  |   |         |   |        |   |         |       | 43,138  |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property operating costs                                                            |             |   |         |   |          |   |         |   |          |    |         |   |              |   |             |   |              |     |      |   |         |     | 42,055  |   |         |   |        |   |         |       | 42,278  |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property taxes, insurance and other                                                 |             |   | 206      |   |          |   | (117     | ) |          |    | 138      |   |              |   | 72           |   |              |     | 105   |   |         |     | 96,327  |   |         |   | (87,804 | ) |         |       | 18,515  |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Depreciation and amortization                                                       |             |   | 841      |   |          |   | 103      |   |          |    | 417      |   |              |   | 311          |   |              |     | 308   |   |         |     | 28      |   |         |   |        |   |         |       | 28,400  |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of investment in STS Hotel Net                                           |             |   |         |   |          |   |         |   |          |    |         |   |              |   |             |   |              |     |      |   |         |     |        |   |         |   |        |   |         |       |        |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Swap termination fees                                                               |             |   |         |   |          |   |         |   |          |    |         |   |              |   |             |   |              |     |      |   |         |     |        |   |         |   |        |   |         |       |        |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of deferred costs                                                        |             |   |         |   |          |   |         |   |          |    |         |   |              |   |             |   |              |     |      |   |         |     |        |   |         |   |        |   |         |       |        |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on fair value of non-hedging derivatives                                       |             |   |         |   |          |   |         |   |          |    |         |   |              |   |             |   |              |     |      |   |         |     |        |   |         |   |        |   |         |       |        |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | FelCor merger costs                                                                 |             |   |         |   |          |   |         |   |          |    |         |   |              |   |             |   |              |     |      |   |         |     |        |   |         |   |        |   |         |       | 3,789   |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Costs to terminate leases with Prime Hospitality                                    |             |   |         |   |          |   |         |   |          |    |         |   |              |   |             |   |              |     |      |   |         |     |        |   |         |   |        |   |         |       |        |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     |                                                                                     | Corporation |   |          |  |          |   |          |  |          |    |          |  |              |   |              |  |              |     |       |  |         |     |         |  |         |   |         |  |         |       |         | 1,315 | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Restructuring charge                                                                |             |   |         |   |          |   |         |   |          |    |         |   |              |   |             |   |              |     |      |   |         |     |        |   |         |   |        |   |         |       |        |      
|                                        |                                                     |                                                                                    
|                                        |                                                     | Total operating expenses                                                            |             |   | 1,047    |   |          |   | (14      | ) |          |    | 556      |   |              |   | 404          |   |              |     | 533   |   |         |     | 291,593 |   |         |   | (87,804 | ) |         |       | 249,220 |      
|                                        |                                                     |                                                                                    
|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |    |          |   |              |   |              |   |              |     |       |   |         |     |         |   |         |   |         |   |         |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Net operating income                                                                |             |   | 2,358    |   |          |   | 814      |   |          |    | 815      |   |              |   | 565          |   |              |     | 358   |   |         |     | 8,793   |   |         |   |        |   |         |       | 57,947  |      
|                                        |                                                     | Interest expense, net                                                               |             |   | (9       | ) |          |   |         |   |          |    | (24      | ) |              |   | (26          | ) |              |     | 697   |   |         |     | (7      | ) |         |   |        |   |         |       | 30,032  |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Equity in income from consolidated entities                                         |             |   |         |   |          |   |         |   |          |    |         |   |              |   |             |   |              |     |      |   |         |     |        |   |         |   | 48,913  |   |         |       |        |      
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before minority interests, income
tax benefit, loss on sale of assets |             |   | 1,184    |   |          |   | 202      |   |          |    | 2,382    |   |              |   | 840          |   |              |     | 118   |   |         |     | 571     |   |         |   | (48,913 | ) |         |       | 27,915  |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Minority interests                                                                  |             |   |         |   |          |   |         |   |          |    |         |   |              |   |             |   |              |     |      |   |         |     |        |   |         |   |        |   |         |       | (5      | )    
|                                        |                                                     |                                                                                    
|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |    |          |   |              |   |              |   |              |     |       |   |         |     |         |   |         |   |         |   |         |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income (loss) before income tax benefit, loss on
sale of assets                     |             |   | 1,184    |   |          |   | 202      |   |          |    | 2,382    |   |              |   | 840          |   |              |     | 118   |   |         |     | 571     |   |         |   | (48,913 | ) |         |       | 27,920  |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income tax benefit                                                                  |             |   |         |   |          |   |         |   |          |    |         |   |              |   |             |   |              |     |      |   |         |     |        |   |         |   |        |   |         |       | 789     |      
|                                        |                                                     |                                                                                    
|                                        |                                                     |                                                                                     |             |   |          |   |          |   |          |   |          |    |          |   |              |   |              |   |              |     |       |   |         |     |         |   |         |   |         |   |         |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income (loss) before loss on sale of assets                                         |             |   | 1,184    |   |          |   | 202      |   |          |    | 2,382    |   |              |   | 840          |   |              |     | 118   |   |         |     | 571     |   |         |   | (48,913 | ) |         |       | 27,131  |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on sale of assets, net of tax effect                                           |             |   |         |   |          |   |         |   |          |    |         |   |              |   |             |   |              |     |      |   |         |     |        |   |         |   |        |   |         |       |        |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Extraordinary item, net of tax effect                                               |             |   |         |   |          |   |         |   |          |    |         |   |              |   |             |   |              |     |      |   |         |     |        |   |         |   |        |   |         |       |        |      
|                                        |                                                     |                                                                                    
|                                        |                                                     | Net income (loss)                                                                   |             |   | 1,184    |   |          |   | 202      |   |          |    | 2,382    |   |              |   | 840          |   |              |     | 118   |   |         |     | 571     |   |         |   | (48,913 | ) |         |       | 27,131  |      
|                                        |                                                     |                                                                                    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Six months ended June 30, 2001
(in thousands)

|                                        |                                                     |                                                                                     |       |              |             |     |           |        |          |     |         |     |          |      |          |     |          |  |          |     |     |   |     |     |     |   |       |       |       |   |   |   |   |  | 
|--------------------------------------- | --------------------------------------------------- | ----------------------------------------------------------------------------------- | ----- | ------------ | ----------- | --- | --------- | ------ | -------- | --- | ------- | --- | -------- | ---- | -------- | --- | -------- |  | -------- | --- | --- | - | --- | --- | --- | - | ----- | ----- | ----- | - | - | - | - |  | 
|                                        |                                                     |                                                                                     |       |              | MeriStar    |     | Non-      |        | MeriStar |     | AGH     |     | MeriStar |      | MeriStar |     | MeriStar |  | MeriStar
|                                        |                                                     |                                                                                     |       |              | Hospitality |     | Guarantor |        | Sub 7C,  |     | Upreit, |     | Sub 5N,  |      | Sub 8A,  |     | Sub 8F,  |  | Sub 8G, 
|Revenue:                                |                                                     | OP, L.P.                                                                            |       | Subsidiaries |             | LLC |           | LLC    |          | LLC |         | LLC |          | L.P. |          | LLC
|                                        |                                                     |                                                                                    
|                                        | Participating lease revenue                         |                                                                                     |       |             |             |     |           | 90,377 |          |     |         |    |          |      |          |    |          |  |          | 726 |     |   |     | 910 |     |   |       | 1,603 |       |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|                                        | Hotel operations:                                   |                                                                                     |       |              |             |     |           |        |          |     |         |     |          |      |          |     |          |  |          |     |     |   |     |     |     |   |       |       |       |   |   |   |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |       |              |            |     |           |        |         |     |         |     |         |      |          |     |         |  |          |     |     |   |     |     |    |   |       |       |      |   |   |   |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |       |              |            |     |           |        |         |     |         |     |         |      |          |     |         |  |          |     |     |   |     |     |    |   |       |       |      |   |   |   |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |       |              |            |     |           |        | (380     | )   |         |     |         |      |          |     |         |  |          |     |     |   |     |     |    |   |       |       |      |   |   |   |  | 
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental and other revenues                    |                                                                                     |       | 3,200        |             |     |           | 3,349  |          |     |         |    |          |      |          |    |          |  |          |     |     |   |     |    |     |   |       |      |       |   |   |  |  
|                                        |                                                     |                                                                                    
|Total revenue                           |                                                     |                                                                                     | 3,200 |              |             |     | 93,346    |        |          |     |        |     |          |      |         |     |          |  | 726      |     |     |   | 910 |     |     |   | 1,603 |       |       |   |  |  
|                                        |                                                     |                                                                                    
|Hotel operating expenses by department: |                                                     |                                                                                     |       |              |             |     |           |        |          |     |         |     |          |      |          |     |          |  |          |     |     |   |     |     |     |   |       |       |       |   |   |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |       |              |            |     |           |        |         |     |         |     |         |      |          |     |         |  |          |     |    |   |     |     |    |   |       |       |      |   |   |   |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |       |              |            |     |           |        |         |     |         |     |         |      |          |     |         |  |          |     |    |   |     |     |    |   |       |       |      |   |   |   |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |       |              |            |     |           |        |         |     |         |     |         |      |          |     |         |  |          |     |    |   |     |     |    |   |       |       |      |   |   |   |  | 
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental, parking and other operating expenses |                                                                                     |       |             |             |     |           | 986    |          |     |         |    |          |      |          |    |          |  |          |    |     |   |     |    |     |   |       |      |       |   |   |  |  
|                                       
|                                       
|                                       
|                                       
|Undistributed operating expenses:       |                                                     |                                                                                     |       |              |             |     |           |        |          |     |         |     |          |      |          |     |          |  |          |     |     |   |     |     |     |   |       |       |       |   |   |  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Administrative and general                                                          |       |              | 2,350       |     |           |        | 1,567    |     |         |     |         |      |          |     |         |  |          |     |    |   |     |     |    |   |       |       | (8    | ) |   |   |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property operating costs                                                            |       |              |            |     |           |        |         |     |         |     |         |      |          |     |         |  |          |     |     |   |     |     |    |   |       |       |      |   |   |   |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property taxes, insurance and other                                                 |       |              | 2,787       |     |           |        | 9,279    |     |         |     |         |      |          |     |         |  |          |     | 24  |   |     |     | 70  |   |       |       | 281   |   |   |   |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Depreciation and amortization                                                       |       |              | 3,431       |     |           |        | 25,659   |     |         |     |         |      |          |     |         |  |          |     | 64  |   |     |     | 145 |   |       |       | 218   |   |   |   |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of investment in STS Hotel Net                                           |       |              | 2,112       |     |           |        |         |     |         |     |         |      |          |     |         |  |          |     |    |   |     |     |    |   |       |       |      |   |   |   |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on asset impairment                                                            |       |              |            |     |           |        |         |     |         |     |         |      |          |     |         |  |          |     |    |   |     |     |    |   |       |       |      |   |   |   |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Swap termination fees                                                               |       |              | 9,297       |     |           |        |         |     |         |     |         |      |          |     |         |  |          |     |    |   |     |     |    |   |       |       |      |   |   |   |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on fair value of non-hedging derivatives                                       |       |              |            |     |           |        |         |     |         |     |         |      |          |     |         |  |          |     |    |   |     |     |    |   |       |       |      |   |   |   |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | FelCor merger costs                                                                 |       |              | 3,789       |     |           |        |         |     |         |     |         |      |          |     |         |  |          |     |    |   |     |     |    |   |       |       |      |   |   |   |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Costs
to terminate leases with Prime
Hospitality Corporation                        |       |              | 1,315       |     |           |        |         |     |         |     |         |      |          |     |         |  |          |     |    |   |     |     |    |   |       |       |      |   |   |   |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Restructuring charge                                                                |       |              |            |     |           |        |         |     |         |     |         |      |          |     |         |  |          |     |    |   |     |     |    |   |       |       |      |   |   |   |  | 
|                                        |                                                     |                                                                                    
|                                        |                                                     | Total operating expenses                                                            |       |              | 25,081      |     |           |        | 37,491   |     |         |     |         |      |          |     |         |  |          |     | 88  |   |     |     | 215 |   |       |       | 492   |   |   |   |  | 
|                                        |                                                     |                                                                                    
|                                        |                                                     | Net operating income                                                                |       |              | (21,881     | )   |           |        | 55,855   |     |         |     |         |      |          |     |         |  |          |     | 638 |   |     |     | 694 |   |       |       | 1,112 |   |   |   |  | 
|                                        |                                                     | Interest expense, net                                                               |       |              | 44,322      |     |           |        | 13,401   |     |         |     |         |      |          |     |         |  |          |     | (3  | ) |     |     | (5  | ) |       |       | (5    | ) |   |   |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Equity in income from consolidated entities                                         |       |              | (109,079    | )   |           |        |         |     |         |     |         |      |          |     |         |  |          |     |    |   |     |     |     |   |       |       |      |   |   |   |  | 
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before minority interests, income tax benefit, loss on sale of assets |       |              | 42,876      |     |           |        | 42,455   |     |         |     |         |      |          |     |         |  |          |     | 642 |   |     |     | 700 |   |       |       | 1,116 |   |   |   |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Minority interests                                                                  |       |              | 6           |     |           |        |         |     |         |     |         |      |          |     |         |  |          |     |    |   |     |     |     |   |       |       |       |   |   |   |   | 
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before income tax benefit, loss on sale of assets                     |       |              | 42,870      |     |           |        | 42,455   |     |         |     |         |      |          |     |         |  |          |     | 642 |   |     |     | 700 |   |       |       | 1,116 |   |   |   |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income tax benefit                                                                  |       |              | 1,242       |     |           |        |         |     |         |     |         |      |          |     |         |  |          |     |     |   |     |     |    |   |       |       |      |   |   |   |  | 
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before loss on sale of assets                                         |       |              | 41,628      |     |           |        | 42,455   |     |         |     |         |      |          |     |         |  |          |     | 642 |   |     |     | 700 |   |       |       | 1,116 |   |   |   |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on sale of assets, net of tax effect                                           |       |              |            |     |           |        |         |     |         |     |         |      |          |     |         |  |          |     |     |   |     |     |    |   |       |       |      |   |   |   |  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Extraordinary item, net of tax effect                                               |       |              | 1,226       |     |           |        |         |     |         |     |         |      |          |     |         |  |          |     |     |   |     |     |    |   |       |       |      |   |   |   |  | 
|                                        |                                                     |                                                                                    
|                                        |                                                     | Net income (loss)                                                                   |       |              | 40,402      |     |           |        | 42,455   |     |         |     |         |      |          |     |         |  |          |     | 642 |   |     |     | 700 |   |       |       | 1,116 |   |   |   |  | 
|                                        |                                                     |                                                                                    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Six months ended June 30, 2001
(in thousands)

|                                        |                                                     |                                                                                     |     |          |     |          |       |          |        |          |       |       |     |   |       |       |     |  
|--------------------------------------- | --------------------------------------------------- | ----------------------------------------------------------------------------------- | --- | -------- | --- | -------- | ----- | -------- | ------ | -------- | ----- | ----- | --- | - | ----- | ----- | --- | -
|                                        |                                                     |                                                                                     |     | MeriStar |     | MeriStar |       | MeriStar |        | MeriStar
|                                        |                                                     |                                                                                     |     | Sub 6H,  |     | Sub 8B,  |       | Sub 1C,  |        | Sub 8E, 
|Revenue:                                |                                                     | L.P.                                                                                |     | LLC      |     | L.P.     |       | LLC     
|                                        |                                                    
|                                        | Participating lease revenue                         |                                                                                     |     | 700      |     |          |       | 5,095    |        |          |       | 1,015 |     |   |       | 1,069 |    
|                                        | Hotel operations:                                   |                                                                                     |     |          |     |          |       |          |        |          |       |       |     |   |       |       |    
|                                        |                                                     | Rooms                                                                               |     |          |    |          |       |          |       |          |       |       |    |   |       |       |    |  
|                                        |                                                     | Food and beverage                                                                   |     |          |    |          |       |          |       |          |       |       |    |   |       |       |    |  
|                                        |                                                     | Other operating departments                                                         |     |          |    |          |       |          |       |          |       |       |    |   |       |       |    |  
|                                        | Office rental and other revenues                    |                                                                                     |     |         |     |          |       |         |        |          |       |      |     |   |       | 10    |    
|                                        |                                                    
|Total revenue                           |                                                     |                                                                                     | 700 |          |     |          | 5,095 |          |        |          | 1,015 |       |     |   | 1,080 |      
|                                        |                                                    
|Hotel operating expenses by department: |                                                     |                                                                                     |     |          |     |          |       |          |        |          |       |       |     |   |       |      
|                                        |                                                     | Rooms                                                                               |     |          |    |          |       |          |       |          |       |       |    |   |       |       |    |  
|                                        |                                                     | Food and beverage                                                                   |     |          |    |          |       |          |       |          |       |       |    |   |       |       |    |  
|                                        |                                                     | Other operating departments                                                         |     |          |    |          |       |          |       |          |       |       |    |   |       |       |    |  
|                                        | Office rental, parking and other operating expenses |                                                                                     |     |         |     |          |       |         |        |          |       |      |     |   |       |      |    
|Undistributed operating expenses:       |                                                     |                                                                                     |     |          |     |          |       |          |        |          |       |       |     |   |       |      
|                                        |                                                     | Administrative and general                                                          |     |          | (2  | )        |       |          |       |          |       |       |    |   |       |       |    |  
|                                        |                                                     | Property operating costs                                                            |     |          |    |          |       |          |       |          |       |       |    |   |       |       |    |  
|                                        |                                                     | Property taxes, insurance and other                                                 |     |          | (36 | )        |       |          | (1,850 | )        |       |       | 378 |   |       |       | 66  |  
|                                        |                                                     | Depreciation and amortization                                                       |     |          | 212 |          |       |          | 1,154  |          |       |       | 505 |   |       |       | 261 |  
|                                        |                                                     | Write down of investment in STS
Hotel Net                                           |     |          |    |          |       |          |       |          |       |       |    |   |       |       |    |  
|                                        |                                                     | Loss on asset impairment                                                            |     |          |    |          |       |          |       |          |       |       |    |   |       |       |    |  
|                                        |                                                     | Swap termination fees                                                               |     |          |    |          |       |          |       |          |       |       |    |   |       |       |    |  
|                                        |                                                     | Loss on fair value of non-hedging
derivatives                                       |     |          |    |          |       |          |       |          |       |       |    |   |       |       |    |  
|                                        |                                                     | FelCor merger costs                                                                 |     |          |    |          |       |          |       |          |       |       |    |   |       |       |    |  
|                                        |                                                     | Costs to terminate leases with
Prime Hospitality Corporation                        |     |          |    |          |       |          |       |          |       |       |    |   |       |       |    |  
|                                        |                                                     | Restructuring charge                                                                |     |          |    |          |       |          |       |          |       |       |    |   |       |       |    |  
|                                        |                                                    
|                                        |                                                     | Total operating expenses                                                            |     |          | 174 |          |       |          | (696   | )        |       |       | 883 |   |       |       | 327 |  
|                                        |                                                    
|                                        |                                                     | Net operating income                                                                |     |          | 526 |          |       |          | 5,791  |          |       |       | 132 |   |       |       | 753 |  
|                                        |                                                     | Interest expense, net                                                               |     |          | (2  | )        |       |          | (58    | )        |       |       | (12 | ) |       |       | (28 | )
|                                        |                                                     | Equity
in income from consolidated entities                                         |     |          |    |          |       |          |       |          |       |       |    |   |       |       |    |  
|                                        |                                                    
|                                        |                                                     | Income (loss) before minority
interests, income tax benefit, loss
on sale of assets |     |          | 528 |          |       |          | 5,849  |          |       |       | 144 |   |       |       | 781 |  
|                                        |                                                     | Minority interests                                                                  |     |          |    |          |       |          |       |          |       |       |    |   |       |       |    |  
|                                        |                                                    
|                                        |                                                     | Income (loss) before income tax
benefit, loss on sale of assets                     |     |          | 528 |          |       |          | 5,849  |          |       |       | 144 |   |       |       | 781 |  
|                                        |                                                     | Income tax benefit                                                                  |     |          |    |          |       |          |       |          |       |       |    |   |       |       |    |  
|                                        |                                                    
|                                        |                                                     | Income (loss) before loss on sale
of assets                                         |     |          | 528 |          |       |          | 5,849  |          |       |       | 144 |   |       |       | 781 |  
|                                        |                                                     | Loss on sale of assets, net of tax
effect                                           |     |          |    |          |       |          |       |          |       |       |    |   |       |       |    |  
|                                        |                                                     | Extraordinary item, net of tax
effect                                               |     |          |    |          |       |          |       |          |       |       |    |   |       |       |    |  
|                                        |                                                    
|                                        |                                                     | Net income (loss)                                                                   |     |          | 528 |          |       |          | 5,849  |          |       |       | 144 |   |       |       | 781 |  
|                                        |                                                    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Six months ended June 30, 2001
(in thousands)

|                                        |                                                     |                                                                                     |     |     |          |     |          |     |          |     |          |       |          |     |          |   |          |  |     |     |       |      |       |       |     |     |       |       |       |      
|--------------------------------------- | --------------------------------------------------- | ----------------------------------------------------------------------------------- | --- | --- | -------- | --- | -------- | --- | -------- | --- | -------- | ----- | -------- | --- | -------- | - | -------- |  | --- | --- | ----- | ---- | ----- | ----- | --- | --- | ----- | ----- | ----- | -----
|                                        |                                                     |                                                                                     |     |     | MeriStar |     | MeriStar |     | MeriStar |     | MeriStar |       | MeriStar |     | MeriStar |   | MeriStar
|                                        |                                                     |                                                                                     |     |     | Sub 7F,  |     | Sub 5L,  |     | Sub 3C,  |     | Sub 5R,  |       | Sub 8A,  |     | Sub 6D,  |   | Sub 6E, 
|Revenue:                                |                                                     | LLC                                                                                 |     | LLC |          | LLC |          | LLC |          | LLC |          | LLC   |          | LLC
|                                        |                                                     |                                                                                    
|                                        | Participating lease revenue                         |                                                                                     |     | 532 |          |     |          | 892 |          |     |          | 1,122 |          |     |          |  |          |  |     | 377 |       |      |       | 1,229 |     |     |       | 3,379 |      
|                                       
|                                       
|                                       
|                                       
|                                        | Hotel operations:                                   |                                                                                     |     |     |          |     |          |     |          |     |          |       |          |     |          |   |          |  |     |     |       |      |       |       |     |     |       |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |     |     |         |     |          |     |         |     |          |       |         |     |          |   |         |  |     |     |      |      |       |       |    |     |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |     |     |         |     |          |     |         |     |          |       |         |     |          |   |         |  |     |     |      |      |       |       |    |     |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |     |     |         |     |          |     |         |     |          |       |         |     |          |   |         |  |     |     |      |      |       |       |    |     |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental and other revenues                    |                                                                                     |     |    |          |     |          |    |          |     |          |      |          |     |          |  |          |  |     |    |       |      |       | 6     |     |     |       |      |      
|                                        |                                                     |                                                                                    
|Total revenue                           |                                                     |                                                                                     | 532 |     |          |     | 892      |     |          |     | 1,122    |       |          |     |         |   |          |  | 377 |     |       |      | 1,235 |       |     |     | 3,379 |      
|                                        |                                                     |                                                                                    
|Hotel operating expenses by department: |                                                     |                                                                                     |     |     |          |     |          |     |          |     |          |       |          |     |          |   |          |  |     |     |       |      |       |       |     |     |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                                               |     |     |         |     |          |     |         |     |          |       |         |     |          |   |         |  |     |     |      |      |       |       |    |     |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                                                   |     |     |         |     |          |     |         |     |          |       |         |     |          |   |         |  |     |     |      |      |       |       |    |     |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                                         |     |     |         |     |          |     |         |     |          |       |         |     |          |   |         |  |     |     |      |      |       |       |    |     |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental, parking and other operating expenses |                                                                                     |     |    |          |     |          |    |          |     |          |      |          |     |          |  |          |  |     |    |       |      |       |      |     |     |       |      |      
|                                       
|                                       
|                                       
|                                       
|Undistributed operating expenses:       |                                                     |                                                                                     |     |     |          |     |          |     |          |     |          |       |          |     |          |   |          |  |     |     |       |      |       |       |     |     |       |       |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Administrative and general                                                          |     |     |         |     |          |     |         |     |          |       |         |     |          |   |         |  |     |     |      |      |       |       |    |     |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property operating costs                                                            |     |     |         |     |          |     |         |     |          |       |         |     |          |   |         |  |     |     |      |      |       |       |    |     |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property taxes, insurance and other                                                 |     |     | 88       |     |          |     | (7       | )   |          |       | 246      |     |          |   |         |  |     |     | 54    |      |       |       | 168 |     |       |       | 338   |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Depreciation and amortization                                                       |     |     | 230      |     |          |     | 61       |     |          |       | 343      |     |          |   |         |  |     |     | 89    |      |       |       | 253 |     |       |       | 826   |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of investment in STS Hotel Net                                           |     |     |         |     |          |     |         |     |          |       |         |     |          |   |         |  |     |     |      |      |       |       |    |     |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on asset impairment                                                            |     |     |         |     |          |     |         |     |          |       |         |     |          |   |         |  |     |     |      |      |       |       |    |     |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Swap termination fees                                                               |     |     |         |     |          |     |         |     |          |       |         |     |          |   |         |  |     |     |      |      |       |       |    |     |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on fair value of non-hedging derivatives                                       |     |     |         |     |          |     |         |     |          |       |         |     |          |   |         |  |     |     |      |      |       |       |    |     |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | FelCor merger costs                                                                 |     |     |         |     |          |     |         |     |          |       |         |     |          |   |         |  |     |     |      |      |       |       |    |     |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Costs
to terminate leases with Prime Hospitality
Corporation                        |     |     |         |     |          |     |         |     |          |       |         |     |          |   |         |  |     |     |      |      |       |       |    |     |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Restructuring charge                                                                |     |     |         |     |          |     |         |     |          |       |         |     |          |   |         |  |     |     |      |      |       |       |    |     |       |       |      |      
|                                        |                                                     |                                                                                    
|                                        |                                                     | Total operating expenses                                                            |     |     | 318      |     |          |     | 54       |     |          |       | 589      |     |          |   |         |  |     |     | 143   |      |       |       | 421 |     |       |       | 1,165 |      
|                                        |                                                     |                                                                                    
|                                        |                                                     | Net operating income                                                                |     |     | 214      |     |          |     | 838      |     |          |       | 533      |     |          |   |         |  |     |     | 234   |      |       |       | 815 |     |       |       | 2,214 |      
|                                        |                                                     | Interest expense, net                                                               |     |     | (7       | )   |          |     | (6       | )   |          |       | (13      | )   |          |   |         |  |     |     | (5    | )    |       |       | (13 | )   |       |       | (24   | )    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Equity in income from consolidated entities                                         |     |     |         |     |          |     |         |     |          |       |         |     |          |   |         |  |     |     |      |      |       |       |    |     |       |       |      |      
|                                        |                                                     |                                                                                    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income
(loss) before minority interests, income
tax benefit, loss on sale of assets |     |     | 220      |     |          |     | 844      |     |          |       | 546      |     |          |   | 0        |  |     |     | 239   |      |       |       | 828 |     |       |       | 2,239 |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Minority interests                                                                  |     |     |         |     |          |     |         |     |          |       |         |     |          |   |         |  |     |     |      |      |       |       |    |     |       |       |      |      
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income
(loss) before income tax benefit, loss on
sale of assets                     |     |     | 220      |     |          |     | 844      |     |          |       | 546      |     |          |   |         |  |     |     | 239   |      |       |       | 828 |     |       |       | 2,239 |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income tax benefit                                                                  |     |     |         |     |          |     |         |     |          |       |         |     |          |   |         |  |     |     |      |      |       |       |    |     |       |       |      |      
|                                        |                                                     |                                                                                    
|                                        |                                                     | Income (loss) before loss on sale of assets                                         |     |     | 220      |     |          |     | 844      |     |          |       | 546      |     |          |   |         |  |     |     | 239   |      |       |       | 828 |     |       |       | 2,239 |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on sale of assets, net of tax effect                                           |     |     |         |     |          |     |         |     |          |       |         |     |          |   |         |  |     |     | 1,062 |      |       |       |    |     |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Extraordinary item, net of tax effect                                               |     |     |         |     |          |     |         |     |          |       |         |     |          |   |         |  |     |     |      |      |       |       |    |     |       |       |      |      
|                                        |                                                     |                                                                                    
|                                        |                                                     | Net income (loss)                                                                   |     |     | 220      |     |          |     | 844      |     |          |       | 546      |     |          |   |         |  |     |     |       | (823 | )     |       |     | 828 |       |       |       | 2,239
|                                        |                                                     |                                                                                    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Six months ended June 30, 2001
(in thousands)

|                                        |                                                     |                                                              |                                     |       |          |      |          |       |          |       |          |       |          |       |          |       |          |       |          |       |       |     |     |     |     |     |     |     |      |     |     |     |     |     | 
|--------------------------------------- | --------------------------------------------------- | ------------------------------------------------------------ | ----------------------------------- | ----- | -------- | ---- | -------- | ----- | -------- | ----- | -------- | ----- | -------- | ----- | -------- | ----- | -------- | ----- | -------- | ----- | ----- | --- | --- | --- | --- | --- | --- | --- | ---- | --- | --- | --- | --- | --- | 
|                                        |                                                     |                                                              |                                     |       | MeriStar |      | MeriStar |       | MeriStar |       | MeriStar |       | MeriStar |       | MeriStar |       | MeriStar |       | MeriStar
|                                        |                                                     |                                                              |                                     |       | Sub 4E,  |      | Sub 1B,  |       | Sub 5,   |       | Sub 6G,  |       | Sub 8C,  |       | Sub 4C,  |       | Sub 4H,  |       | Sub 7E, 
|Revenue:                                |                                                     | L.P.                                                         |                                     | LLC   |          | L.P. |          | LLC   |          | LLC   |          | L.P   |          | L.P.  |          | LLC  
|                                        |                                                     |                                                             
|                                        | Participating lease revenue                         |                                                              |                                     | 1,008 |          |      |          | 1,619 |          |       |          | 1,687 |          |       |          | 1,706 |          |       |          | 1,361 |       |     |     | 653 |     |     |     | 250 |      |     |     | 878 |    
|                                       
|                                       
|                                       
|                                       
|                                        | Hotel operations:                                   |                                                              |                                     |       |          |      |          |       |          |       |          |       |          |       |          |       |          |       |          |       |       |     |     |     |     |     |     |     |      |     |     |     |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                        |                                     |       |         |      |          |       |         |       |          |       |         |       |          |       |         |       |          |       |      |     |     |     |    |     |     |     |     |     |     |     |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                            |                                     |       |         |      |          |       |         |       |          |       |         |       |          |       |         |       |          |       |      |     |     |     |    |     |     |     |     |     |     |     |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                  |                                     |       |         |      |          |       |         |       |          |       |         |       |          |       |         |       |          |       |      |     |     |     |    |     |     |     |     |     |     |     |    |    
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental and other revenues                    |                                                              |                                     | 6     |          |      |          |      |          |       |          |      |          |       |          |      |          |       |          | 2     |       |     |     |    |     |     |     |    |      |     |     |    |    
|                                        |                                                     |                                                             
|Total revenue                           |                                                     |                                                              | 1,014                               |       |          |      | 1,619    |       |          |       | 1,687    |       |          |       | 1,706    |       |          |       | 1,363    |       |       |     | 653 |     |     |     | 250 |     |      |     | 878 |    
|                                        |                                                     |                                                             
|Hotel operating expenses by department: |                                                     |                                                              |                                     |       |          |      |          |       |          |       |          |       |          |       |          |       |          |       |          |       |       |     |     |     |     |     |     |     |      |     |     |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                        |                                     |       |         |      |          |       |         |       |          |       |         |       |          |       |         |       |          |       |      |     |     |     |    |     |     |     |     |     |     |     |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                            |                                     |       |         |      |          |       |         |       |          |       |         |       |          |       |         |       |          |       |      |     |     |     |    |     |     |     |     |     |     |     |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                  |                                     |       |         |      |          |       |         |       |          |       |         |       |          |       |         |       |          |       |      |     |     |     |    |     |     |     |     |     |     |     |    |    
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental, parking and other operating expenses |                                                              |                                     |      |          |      |          |      |          |       |          |      |          |       |          |      |          |       |          |      |       |     |     |    |     |     |     |    |      |     |     |    |    
|                                       
|                                       
|                                       
|                                       
|Undistributed operating expenses:       |                                                     |                                                              |                                     |       |          |      |          |       |          |       |          |       |          |       |          |       |          |       |          |       |       |     |     |     |     |     |     |     |      |     |     |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Administrative and general                                   |                                     |       |         |      |          |       |         |       |          |       |         |       |          |       |         |       |          |       |      |     |     |     |    |     |     |     |     |     |     |     |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property operating costs                                     |                                     |       |         |      |          |       |         |       |          |       |         |       |          |       |         |       |          |       |      |     |     |     |    |     |     |     |     |     |     |     |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property taxes, insurance and other                          |                                     |       | 228      |      |          |       | 103      |       |          |       | 28       |       |          |       | 339      |       |          |       | 450   |     |     |     | 382 |     |     |     | 85   |     |     |     | 214 |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Depreciation and amortization                                |                                     |       | 456      |      |          |       | 306      |       |          |       | 524      |       |          |       | 370      |       |          |       | 649   |     |     |     | 352 |     |     |     | 266  |     |     |     | 299 |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of investment in STS Hotel Net                    |                                     |       |         |      |          |       |         |       |          |       |         |       |          |       |         |       |          |       |      |     |     |     |    |     |     |     |     |     |     |     |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on asset impairment                                     |                                     |       |         |      |          |       |         |       |          |       |         |       |          |       |         |       |          |       |      |     |     |     |    |     |     |     |     |     |     |     |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Swap termination fees                                        |                                     |       |         |      |          |       |         |       |          |       |         |       |          |       |         |       |          |       |      |     |     |     |    |     |     |     |     |     |     |     |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on fair value of non-hedging derivatives                |                                     |       |         |      |          |       |         |       |          |       |         |       |          |       |         |       |          |       |      |     |     |     |    |     |     |     |     |     |     |     |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | FelCor merger costs                                          |                                     |       |         |      |          |       |         |       |          |       |         |       |          |       |         |       |          |       |      |     |     |     |    |     |     |     |     |     |     |     |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Costs
to terminate leases with
Prime Hospitality Corporation |                                     |       |         |      |          |       |         |       |          |       |         |       |          |       |         |       |          |       |      |     |     |     |    |     |     |     |     |     |     |     |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Restructuring charge                                         |                                     |       |         |      |          |       |         |       |          |       |         |       |          |       |         |       |          |       |      |     |     |     |    |     |     |     |     |     |     |     |    |    
|                                        |                                                     |                                                             
|                                        |                                                     | Total operating expenses                                     |                                     |       | 684      |      |          |       | 409      |       |          |       | 552      |       |          |       | 709      |       |          |       | 1,099 |     |     |     | 734 |     |     |     | 351  |     |     |     | 513 |    
|                                        |                                                     |                                                             
|                                        |                                                     | Net operating income                                         |                                     |       | 330      |      |          |       | 1,210    |       |          |       | 1,135    |       |          |       | 997      |       |          |       | 264   |     |     |     | (81 | )   |     |     | (101 | )   |     |     | 365 |    
|                                        |                                                     | Interest expense, net                                        |                                     |       | (12      | )    |          |       | (27      | )     |          |       | (7       | )     |          |       | (60      | )     |          |       | (31   | )   |     |     | (31 | )   |     |     | (6   | )   |     |     | (12 | )  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Equity in income from consolidated entities                  |                                     |       |         |      |          |       |         |       |          |       |         |       |          |       |         |       |          |       |      |     |     |     |    |     |     |     |     |     |     |     |    |    
|                                        |                                                     |                                                             
|                                        |                                                     | Income (loss) before minority interests, income              |                                     |       |          |      |          |       |          |       |          |       |          |       |          |       |          |       |          |       |       |     |     |     |     |     |     |     |      |     |     |     |     |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     |                                                              | tax benefit, loss on sale of assets |       |          | 342  |          |       |          | 1,237 |          |       |          | 1,142 |          |       |          | 1,057 |          |       |       | 295 |     |     |     | (50 | )   |     |      | (94 | )   |     |     | 377 | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Minority interests                                           |                                     |       |         |      |          |       |         |       |          |       |         |       |          |       |         |       |          |       |      |     |     |     |    |     |     |     |     |     |     |     |    |    
|                                        |                                                     |                                                             
|                                        |                                                     | Income (loss) before income tax benefit, loss on             |                                     |       |          |      |          |       |          |       |          |       |          |       |          |       |          |       |          |       |       |     |     |     |     |     |     |     |      |     |     |     |     |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     |                                                              | sale of assets                      |       |          | 342  |          |       |          | 1,237 |          |       |          | 1,142 |          |       |          | 1,057 |          |       |       | 295 |     |     |     | (50 | )   |     |      | (94 | )   |     |     | 377 | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income tax benefit                                           |                                     |       |         |      |          |       |         |       |          |       |         |       |          |       |         |       |          |       |      |     |     |     |    |     |     |     |     |     |     |     |    |    
|                                        |                                                     |                                                             
|                                        |                                                     | Income (loss) before loss on sale of assets                  |                                     |       | 342      |      |          |       | 1,237    |       |          |       | 1,142    |       |          |       | 1,057    |       |          |       | 295   |     |     |     | (50 | )   |     |     | (94  | )   |     |     | 377 |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on sale of assets, net of tax effect                    |                                     |       |         |      |          |       |         |       |          |       |         |       |          |       |         |       |          |       |      |     |     |     |    |     |     |     |     |     |     |     |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Extraordinary item, net of tax effect                        |                                     |       |         |      |          |       |         |       |          |       |         |       |          |       |         |       |          |       |      |     |     |     |    |     |     |     |     |     |     |     |    |    
|                                        |                                                     |                                                             
|                                        |                                                     | Net income (loss)                                            |                                     |       | 342      |      |          |       | 1,237    |       |          |       | 1,142    |       |          |       | 1,057    |       |          |       | 295   |     |     |     | (50 | )   |     |     | (94  | )   |     |     | 377 |    
|                                        |                                                     |                                                             





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Six months ended June 30, 2001
(in thousands)

|                                        |                                                     |                                                              |                                     |       |          |     |          |       |          |     |          |       |          |       |          |     |          |     |          |       |       |       |     |     |      |      |     |     |     |     |     |     |     |     | 
|--------------------------------------- | --------------------------------------------------- | ------------------------------------------------------------ | ----------------------------------- | ----- | -------- | --- | -------- | ----- | -------- | --- | -------- | ----- | -------- | ----- | -------- | --- | -------- | --- | -------- | ----- | ----- | ----- | --- | --- | ---- | ---- | --- | --- | --- | --- | --- | --- | --- | --- | 
|                                        |                                                     |                                                              |                                     |       |          |     |          |       |          |     |          |       |          |       |          |     |          |     |          |       |       |       |     |     |      |      |     |     |     |     |     |     |    
|                                        |                                                     |                                                              |                                     |       | MeriStar |     | MeriStar |       | MeriStar |     | MeriStar |       | MeriStar |       | MeriStar |     | MeriStar |     | MeriStar |       |      
|                                        |                                                     |                                                              |                                     |       | Sub 3D,  |     | Sub 1A,  |       | Sub 5E,  |     | Sub 7A   |       | Sub 6K,  |       | Sub 2B,  |     | Sub 3A,  |     | Sub
4A, 
|Revenue:                                |                                                     | LLC                                                          |                                     | LLC   |          | LLC |          |       |          | LLC |          | LLC   |          | LLC   |          | LLC
|                                        |                                                     |                                                             
|                                        | Participating lease revenue                         |                                                              |                                     | 1,098 |          |     |          | 1,143 |          |     |          | 3,125 |          |       |          | 706 |          |     |          | 2,191 |       |       |     | 286 |      |      |     | 354 |     |     |     | 702 |    
|                                       
|                                       
|                                       
|                                       
|                                        | Hotel operations:                                   |                                                              |                                     |       |          |     |          |       |          |     |          |       |          |       |          |     |          |     |          |       |       |       |     |     |      |      |     |     |     |     |     |     |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                        |                                     |       |         |     |          |       |         |     |          |       |         |       |          |     |         |     |          |       |      |       |     |     |     |      |     |     |    |     |     |     |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                            |                                     |       |         |     |          |       |         |     |          |       |         |       |          |     |         |     |          |       |      |       |     |     |     |      |     |     |    |     |     |     |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                  |                                     |       |         |     |          |       |         |     |          |       |         |       |          |     |         |     |          |       |      |       |     |     |     |      |     |     |    |     |     |     |    |    
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental and other revenues                    |                                                              |                                     |      |          |     |          |      |          |     |          |      |          |       |          |    |          |     |          |      |       |       |     |    |      |      |     |    |     |     |     |    |    
|                                        |                                                     |                                                             
|Total revenue                           |                                                     |                                                              | 1,098                               |       |          |     | 1,143    |       |          |     | 3,125    |       |          |       | 706      |     |          |     | 2,191    |       |       |       | 286 |     |      |      | 354 |     |     |     | 702 |    
|                                        |                                                     |                                                             
|Hotel operating expenses by department: |                                                     |                                                              |                                     |       |          |     |          |       |          |     |          |       |          |       |          |     |          |     |          |       |       |       |     |     |      |      |     |     |     |     |     |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                        |                                     |       |         |     |          |       |         |     |          |       |         |       |          |     |         |     |          |       |      |       |     |     |     |      |     |     |    |     |     |     |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                            |                                     |       |         |     |          |       |         |     |          |       |         |       |          |     |         |     |          |       |      |       |     |     |     |      |     |     |    |     |     |     |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                  |                                     |       |         |     |          |       |         |     |          |       |         |       |          |     |         |     |          |       |      |       |     |     |     |      |     |     |    |     |     |     |    |    
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental, parking and other operating expenses |                                                              |                                     |      |          |     |          |      |          |     |          |      |          |       |          |    |          |     |          |      |       |       |     |    |      |      |     |    |     |     |     |    |    
|                                       
|                                       
|                                       
|                                       
|Undistributed operating expenses:       |                                                     |                                                              |                                     |       |          |     |          |       |          |     |          |       |          |       |          |     |          |     |          |       |       |       |     |     |      |      |     |     |     |     |     |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Administrative and general                                   |                                     |       |         |     |          |       |         |     |          |       | 8        |       |          |     | (42      | )   |          |       |      |       |     |     |     |      |     |     |    |     |     |     | 4   |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property operating costs                                     |                                     |       |         |     |          |       |         |     |          |       |         |       |          |     |         |     |          |       |      |       |     |     |     |      |     |     |    |     |     |     |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property taxes, insurance and other                          |                                     |       | 121      |     |          |       | 186      |     |          |       | 303      |       |          |     | 54       |     |          |       | 362   |       |     |     | 90   |      |     |     | 15  |     |     |     | 167 |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Depreciation and amortization                                |                                     |       | 449      |     |          |       | 233      |     |          |       | 914      |       |          |     | 201      |     |          |       | 370   |       |     |     | 192  |      |     |     | 170 |     |     |     |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of investment in STS Hotel Net                    |                                     |       |         |     |          |       |         |     |          |       |         |       |          |     |         |     |          |       |      |       |     |     |     |      |     |     |    |     |     |     |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on asset impairment                                     |                                     |       |         |     |          |       |         |     |          |       |         |       |          |     |         |     |          |       |      |       |     |     |     |      |     |     |    |     |     |     |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Swap termination fees                                        |                                     |       |         |     |          |       |         |     |          |       |         |       |          |     |         |     |          |       |      |       |     |     |     |      |     |     |    |     |     |     |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on fair value of non-hedging derivatives                |                                     |       |         |     |          |       |         |     |          |       |         |       |          |     |         |     |          |       |      |       |     |     |     |      |     |     |    |     |     |     |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | FelCor merger costs                                          |                                     |       |         |     |          |       |         |     |          |       |         |       |          |     |         |     |          |       |      |       |     |     |     |      |     |     |    |     |     |     |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Costs
to terminate leases with
Prime Hospitality Corporation |                                     |       |         |     |          |       |         |     |          |       |         |       |          |     |         |     |          |       |      |       |     |     |     |      |     |     |    |     |     |     |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Restructuring charge                                         |                                     |       |         |     |          |       |         |     |          |       |         |       |          |     |         |     |          |       |      |       |     |     |     |      |     |     |    |     |     |     |    |    
|                                        |                                                     |                                                             
|                                        |                                                     | Total operating expenses                                     |                                     |       | 570      |     |          |       | 419      |     |          |       | 1,225    |       |          |     | 212      |     |          |       | 732   |       |     |     | 282  |      |     |     | 185 |     |     |     | 171 |    
|                                        |                                                     |                                                             
|                                        |                                                     | Net operating income                                         |                                     |       | 527      |     |          |       | 724      |     |          |       | 1,900    |       |          |     | 494      |     |          |       | 1,459 |       |     |     | 4    |      |     |     | 170 |     |     |     | 531 |    
|                                        |                                                     | Interest expense, net                                        |                                     |       | (71      | )   |          |       | (13      | )   |          |       | (81      | )     |          |     | (5       | )   |          |       | (16   | )     |     |     | 181  |      |     |     | (9  | )   |     |     | (18 | )  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Equity in income from consolidated entities                  |                                     |       |         |     |          |       |         |     |          |       |         |       |          |     |         |     |          |       |      |       |     |     |     |      |     |     |    |     |     |     |    |    
|                                        |                                                     |                                                             
|                                        |                                                     | Income (loss) before minority interests, income              |                                     |       |          |     |          |       |          |     |          |       |          |       |          |     |          |     |          |       |       |       |     |     |      |      |     |     |     |     |     |     |     |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     |                                                              | tax benefit, loss on sale of assets |       |          | 598 |          |       |          | 737 |          |       |          | 1,981 |          |     |          | 499 |          |       |       | 1,475 |     |     |      | (177 | )   |     |     | 179 |     |     |     | 550 | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Minority interests                                           |                                     |       |         |     |          |       |         |     |          |       |         |       |          |     |         |     |          |       |      |       |     |     |     |      |     |     |    |     |     |     |    |    
|                                        |                                                     |                                                             
|                                        |                                                     | Income (loss) before income tax benefit, loss on             |                                     |       |          |     |          |       |          |     |          |       |          |       |          |     |          |     |          |       |       |       |     |     |      |      |     |     |     |     |     |     |     |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     |                                                              | sale of assets                      |       |          | 598 |          |       |          | 737 |          |       |          | 1,981 |          |     |          | 499 |          |       |       | 1,475 |     |     |      | (177 | )   |     |     | 179 |     |     |     | 550 | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income tax benefit                                           |                                     |       |         |     |          |       |         |     |          |       |         |       |          |     |         |     |          |       |      |       |     |     |     |      |     |     |    |     |     |     |    |    
|                                        |                                                     |                                                             
|                                        |                                                     | Income (loss) before loss on sale of assets                  |                                     |       | 598      |     |          |       | 737      |     |          |       | 1,981    |       |          |     | 499      |     |          |       | 1,475 |       |     |     | (177 | )    |     |     | 179 |     |     |     | 550 |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on sale of assets, net of tax effect                    |                                     |       |         |     |          |       |         |     |          |       |         |       |          |     |         |     |          |       |      |       |     |     |     |      |     |     |    |     |     |     |    |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Extraordinary item, net of tax effect                        |                                     |       |         |     |          |       |         |     |          |       |         |       |          |     |         |     |          |       |      |       |     |     |     |      |     |     |    |     |     |     |    |    
|                                        |                                                     |                                                             
|                                        |                                                     | Net income (loss)                                            |                                     |       | 598      |     |          |       | 737      |     |          |       | 1,981    |       |          |     | 499      |     |          |       | 1,475 |       |     |     | (177 | )    |     |     | 179 |     |     |     | 550 |    
|                                        |                                                     |                                                             





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Six months ended June 30, 2001
(in thousands)

|                                        |                                                     |                                                               |                                     |     |          |     |          |             |          |      |         |     |          |      |          |      |          |     |          |     |       |       |       |       |       |       |       |       |       |       |     |     |      |     |  
|--------------------------------------- | --------------------------------------------------- | ------------------------------------------------------------- | ----------------------------------- | --- | -------- | --- | -------- | ----------- | -------- | ---- | ------- | --- | -------- | ---- | -------- | ---- | -------- | --- | -------- | --- | ----- | ----- | ----- | ----- | ----- | ----- | ----- | ----- | ----- | ----- | --- | --- | ---- | --- | -
|                                        |                                                     |                                                               |                                     |     | MeriStar |     | MeriStar |             | MeriStar |      | MDV     |     | MeriStar |      | MeriStar |      | MeriStar |     | MeriStar
|                                        |                                                     |                                                               |                                     |     | Sub 4D,  |     | Sub 2A,  |             | Sub 6L,  |      | Limited |     | Sub 5C,  |      | Sub 6J,  |      | Sub 1D,  |     | Sub 7B, 
|Revenue:                                |                                                     | LLC                                                           |                                     | LLC |          | LLC |          | Partnership |          | LLC  |         | LLC |          | L.P. |          | L.P.
|                                        |                                                     |                                                              
|                                        | Participating lease revenue                         |                                                               |                                     | 305 |          |     |          | 353         |          |      |         | 919 |          |      |          | 376  |          |     |          | 690 |       |       |       | 1,393 |       |       |       | 3,392 |       |       |     | 766 |     
|                                       
|                                       
|                                       
|                                       
|                                        | Hotel operations:                                   |                                                               |                                     |     |          |     |          |             |          |      |         |     |          |      |          |      |          |     |          |     |       |       |       |       |       |       |       |       |       |       |     |     |     
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                         |                                     |     |         |     |          |             |         |      |         |     |         |      |          |      |         |     |          |     |      |       |       |       |      |       |       |       |      |       |     |     |     |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                             |                                     |     |         |     |          |             |         |      |         |     |         |      |          |      |         |     |          |     |      |       |       |       |      |       |       |       |      |       |     |     |     |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                   |                                     |     |         |     |          |             |         |      |         |     |         |      |          |      |         |     |          |     |      |       |       |       |      |       |       |       |      |       |     |     |     |    
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental and other revenues                    |                                                               |                                     |    |          |     |          |            |          |      |         |    |          |      |          |     |          |     |          |    |       |       |       |      |       |       |       | 182   |       |       |     |    |     
|                                        |                                                     |                                                              
|Total revenue                           |                                                     |                                                               | 305                                 |     |          |     | 353      |             |          |      | 919     |     |          |      | 376      |      |          |     | 690      |     |       |       | 1,393 |       |       |       | 3,574 |       |       |       | 766 |    
|                                        |                                                     |                                                              
|Hotel operating expenses by department: |                                                     |                                                               |                                     |     |          |     |          |             |          |      |         |     |          |      |          |      |          |     |          |     |       |       |       |       |       |       |       |       |       |       |     |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                         |                                     |     |         |     |          |             |         |      |         |     |         |      |          |      |         |     |          |     |      |       |       |       |      |       |       |       |      |       |     |     |     |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                             |                                     |     |         |     |          |             |         |      |         |     |         |      |          |      |         |     |          |     |      |       |       |       |      |       |       |       |      |       |     |     |     |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                   |                                     |     |         |     |          |             |         |      |         |     |         |      |          |      |         |     |          |     |      |       |       |       |      |       |       |       |      |       |     |     |     |    
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental, parking and other operating expenses |                                                               |                                     |    |          |     |          |            |          |      |         |    |          |      |          |     |          |     |          |    |       |       |       |      |       |       |       | 56    |       |       |     |    |     
|                                       
|                                       
|                                       
|                                       
|Undistributed operating expenses:       |                                                     |                                                               |                                     |     |          |     |          |             |          |      |         |     |          |      |          |      |          |     |          |     |       |       |       |       |       |       |       |       |       |       |     |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Administrative and general                                    |                                     |     |         |     |          |             |         |      |         |     |         |      |          |      | (8       | )   |          |     | 8     |       |       |       |      |       |       |       | 13    |       |     |     | (101 | )  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property operating costs                                      |                                     |     |         |     |          |             |         |      |         |     |         |      |          |      |         |     |          |     |      |       |       |       |      |       |       |       |      |       |     |     |     |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property taxes, insurance and other                           |                                     |     | 65       |     |          |             | 96       |      |         |     | 110      |      |          |      | 76       |     |          |     | (711  | )     |       |       | 65    |       |       |       | 537   |       |     |     | 585  |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Depreciation and amortization                                 |                                     |     | 142      |     |          |             | 158      |      |         |     | 439      |      |          |      | 60       |     |          |     | 289   |       |       |       | 298   |       |       |       | 1,083 |       |     |     | 431  |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of investment in STS Hotel Net                     |                                     |     |         |     |          |             |         |      |         |     |         |      |          |      |         |     |          |     |      |       |       |       |      |       |       |       |      |       |     |     |     |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on asset impairment                                      |                                     |     |         |     |          |             |         |      |         |     |         |      |          |      |         |     |          |     |      |       |       |       |      |       |       |       |      |       |     |     |     |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Swap termination fees                                         |                                     |     |         |     |          |             |         |      |         |     |         |      |          |      |         |     |          |     |      |       |       |       |      |       |       |       |      |       |     |     |     |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on fair value of non-hedging derivatives                 |                                     |     |         |     |          |             |         |      |         |     |         |      |          |      |         |     |          |     |      |       |       |       |      |       |       |       |      |       |     |     |     |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | FelCor merger costs                                           |                                     |     |         |     |          |             |         |      |         |     |         |      |          |      |         |     |          |     |      |       |       |       |      |       |       |       |      |       |     |     |     |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Costs
to terminate leases with
 Prime Hospitality Corporation |                                     |     |         |     |          |             |         |      |         |     |         |      |          |      |         |     |          |     |      |       |       |       |      |       |       |       |      |       |     |     |     |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Restructuring charge                                          |                                     |     |         |     |          |             |         |      |         |     |         |      |          |      |         |     |          |     |      |       |       |       |      |       |       |       |      |       |     |     |     |    
|                                        |                                                     |                                                              
|                                        |                                                     | Total operating expenses                                      |                                     |     | 207      |     |          |             | 255      |      |         |     | 549      |      |          |      | 129      |     |          |     | (414  | )     |       |       | 363   |       |       |       | 1,689 |       |     |     | 915  |    
|                                        |                                                     |                                                              
|                                        |                                                     | Net operating income                                          |                                     |     | 97       |     |          |             | 98       |      |         |     | 370      |      |          |      | 247      |     |          |     | 1,103 |       |       |       | 1,031 |       |       |       | 1,886 |       |     |     | (149 | )  
|                                        |                                                     | Interest expense, net                                         |                                     |     | (29      | )   |          |             | 346      |      |         |     | (15      | )    |          |      | (5       | )   |          |     | (19   | )     |       |       | (24   | )     |       |       | (22   | )     |     |     | (62  | )  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Equity in income from consolidated entities                   |                                     |     |         |     |          |             |         |      |         |     |         |      |          |      |         |     |          |     |      |       |       |       |      |       |       |       |      |       |     |     |     |    
|                                        |                                                     |                                                              
|                                        |                                                     | Income (loss) before minority interests, income               |                                     |     |          |     |          |             |          |      |         |     |          |      |          |      |          |     |          |     |       |       |       |       |       |       |       |       |       |       |     |     |      |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     |                                                               | tax benefit, loss on sale of assets |     |          | 126 |          |             |          | (248 | )       |     |          | 385  |          |      |          | 252 |          |     |       | 1,123 |       |       |       | 1,055 |       |       |       | 1,907 |     |     |      | (86 | )
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Minority interests                                            |                                     |     |         |     |          |             |         |      |         |     |         |      |          |      |         |     |          |     |      |       |       |       |      |       |       |       |      |       |     |     |     |    
|                                        |                                                     |                                                              
|                                        |                                                     | Income (loss) before income tax benefit, loss on              |                                     |     |          |     |          |             |          |      |         |     |          |      |          |      |          |     |          |     |       |       |       |       |       |       |       |       |       |       |     |     |      |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     |                                                               | sale of assets                      |     |          | 126 |          |             |          | (248 | )       |     |          | 385  |          |      |          | 252 |          |     |       | 1,123 |       |       |       | 1,055 |       |       |       | 1,907 |     |     |      | (86 | )
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income tax benefit                                            |                                     |     |         |     |          |             |         |      |         |     |         |      |          |      |         |     |          |     |      |       |       |       |      |       |       |       |      |       |     |     |     |    
|                                        |                                                     |                                                              
|                                        |                                                     | Income (loss) before loss on sale of assets                   |                                     |     | 126      |     |          |             | (248     | )    |         |     | 385      |      |          |      | 252      |     |          |     | 1,123 |       |       |       | 1,055 |       |       |       | 1,907 |       |     |     | (86  | )  
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on sale of assets, net of tax effect                     |                                     |     |         |     |          |             |         |      |         |     |         |      |          |      |         |     |          |     |      |       |       |       |      |       |       |       |      |       |     |     |     |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Extraordinary item, net of tax effect                         |                                     |     |         |     |          |             |         |      |         |     |         |      |          |      |         |     |          |     |      |       |       |       |      |       |       |       |      |       |     |     |     |    
|                                        |                                                     |                                                              
|                                        |                                                     | Net income (loss)                                             |                                     |     | 126      |     |          |             | (248     | )    |         |     | 385      |      |          |      | 252      |     |          |     | 1,123 |       |       |       | 1,055 |       |       |       | 1,907 |       |     |     | (86  | )  
|                                        |                                                     |                                                              





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Six months ended June 30, 2001
(in thousands)

|                                        |                                                     |                                                              |                                     |       |          |       |          |      |          |     |          |     |          |     |          |      |          |      |        |     |      |      |       |       |       |       |     |     |     |     |       |       |       |       | 
|--------------------------------------- | --------------------------------------------------- | ------------------------------------------------------------ | ----------------------------------- | ----- | -------- | ----- | -------- | ---- | -------- | --- | -------- | --- | -------- | --- | -------- | ---- | -------- | ---- | ------ | --- | ---- | ---- | ----- | ----- | ----- | ----- | --- | --- | --- | --- | ----- | ----- | ----- | ----- | 
|                                        |                                                     |                                                              |                                     |       | MeriStar |       | MeriStar |      | MeriStar |     | MeriStar |     | MeriStar |     | MeriStar |      | MeriStar |      | AGH   
|                                        |                                                     |                                                              |                                     |       | Sub 7D,  |       | Sub 7G,  |      | Sub 6B,  |     | Sub 4I,  |     | Sub 5D,  |     | Sub 5H,  |      | Sub 7H,  |      | PSS I,
|Revenue:                                |                                                     | LLC                                                          |                                     | LLC   |          | LLC   |          | L.P. |          | LLC |          | LLC |          | LLC |          | Inc.
|                                        |                                                     |                                                             
|                                        | Participating lease revenue                         |                                                              |                                     | 3,498 |          |       |          | 447  |          |     |          | 540 |          |     |          | 51   |          |      |        | 987 |      |      |       | 3,161 |       |       |     | 617 |     |     |       | 1,995 |      
|                                       
|                                       
|                                       
|                                       
|                                        | Hotel operations:                                   |                                                              |                                     |       |          |       |          |      |          |     |          |     |          |     |          |      |          |      |        |     |      |      |       |       |       |       |     |     |     |     |       |       |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                        |                                     |       |         |       |          |      |         |     |          |     |         |     |          |      |         |      |        |     |     |      |       |       |      |       |     |     |    |     |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                            |                                     |       |         |       |          |      |         |     |          |     |         |     |          |      |         |      |        |     |     |      |       |       |      |       |     |     |    |     |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                  |                                     |       |         |       |          |      |         |     |          |     |         |     |          |      |         |      |        |     |     |      |       |       |      |       |     |     |    |     |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental and other revenues                    |                                                              |                                     | 1,149 |          |       |          |     |          |     |          |    |          |     |          | 4    |          |      |        | 3   |      |      |       |      |       |       |     |    |     |     |       | 2     |      
|                                        |                                                     |                                                             
|Total revenue                           |                                                     |                                                              | 4,648                               |       |          |       | 447      |      |          |     | 540      |     |          |     | 55       |      |          |      | 990    |     |      |      | 3,161 |       |       |       | 617 |     |     |     | 1,997 |      
|                                        |                                                     |                                                             
|Hotel operating expenses by department: |                                                     |                                                              |                                     |       |          |       |          |      |          |     |          |     |          |     |          |      |          |      |        |     |      |      |       |       |       |       |     |     |     |     |       |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                        |                                     |       |         |       |          |      |         |     |          |     |         |     |          |      |         |      |        |     |     |      |       |       |      |       |     |     |    |     |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                            |                                     |       |         |       |          |      |         |     |          |     |         |     |          |      |         |      |        |     |     |      |       |       |      |       |     |     |    |     |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                  |                                     |       |         |       |          |      |         |     |          |     |         |     |          |      |         |      |        |     |     |      |       |       |      |       |     |     |    |     |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental, parking and other operating expenses |                                                              |                                     | 335   |          |       |          |     |          |     |          |    |          |     |          |     |          |      |        |    |      |      |       |      |       |       |     |    |     |     |       |      |      
|                                       
|                                       
|                                       
|                                       
|Undistributed operating expenses:       |                                                     |                                                              |                                     |       |          |       |          |      |          |     |          |     |          |     |          |      |          |      |        |     |      |      |       |       |       |       |     |     |     |     |       |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Administrative and general                                   |                                     |       | (96      | )     |          |      |         |     |          |     |         |     |          |      | 3        |      |        |     | 6    |      |       |       |      |       |     |     |    |     |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property operating costs                                     |                                     |       |         |       |          |      |         |     |          |     |         |     |          |      |         |      |        |     |     |      |       |       |      |       |     |     |    |     |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property taxes, insurance and other                          |                                     |       | 1,168    |       |          |      | 120      |     |          |     | 126      |     |          |      | 172      |      |        |     | 272  |      |       |       | 184   |       |     |     | 107 |     |       |       | 208   |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Depreciation and amortization                                |                                     |       | 782      |       |          |      | 357      |     |          |     | 225      |     |          |      | 425      |      |        |     | 703  |      |       |       | 973   |       |     |     | 347 |     |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of investment in STS Hotel Net                    |                                     |       |         |       |          |      |         |     |          |     |         |     |          |      |         |      |        |     |     |      |       |       |      |       |     |     |    |     |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on asset impairment                                     |                                     |       |         |       |          |      |         |     |          |     |         |     |          |      |         |      |        |     |     |      |       |       |      |       |     |     |    |     |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Swap termination fees                                        |                                     |       |         |       |          |      |         |     |          |     |         |     |          |      |         |      |        |     |     |      |       |       |      |       |     |     |    |     |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on fair value of non-hedging derivatives                |                                     |       |         |       |          |      |         |     |          |     |         |     |          |      |         |      |        |     |     |      |       |       |      |       |     |     |    |     |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | FelCor merger costs                                          |                                     |       |         |       |          |      |         |     |          |     |         |     |          |      |         |      |        |     |     |      |       |       |      |       |     |     |    |     |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Costs
to terminate leases with
Prime Hospitality Corporation |                                     |       |         |       |          |      |         |     |          |     |         |     |          |      |         |      |        |     |     |      |       |       |      |       |     |     |    |     |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Restructuring charge                                         |                                     |       |         |       |          |      |         |     |          |     |         |     |          |      |         |      |        |     |     |      |       |       |      |       |     |     |    |     |       |       |      |      
|                                        |                                                     |                                                             
|                                        |                                                     | Total operating expenses                                     |                                     |       | 2,188    |       |          |      | 477      |     |          |     | 351      |     |          |      | 601      |      |        |     | 981  |      |       |       | 1,157 |       |     |     | 454 |     |       |       | 208   |      
|                                        |                                                     |                                                             
|                                        |                                                     | Net operating income                                         |                                     |       | 2,460    |       |          |      | (30      | )   |          |     | 189      |     |          |      | (546     | )    |        |     | 9    |      |       |       | 2,003 |       |     |     | 163 |     |       |       | 1,790 |      
|                                        |                                                     | Interest expense, net                                        |                                     |       | (71      | )     |          |      | (45      | )   |          |     | (4       | )   |          |      | (10      | )    |        |     | 866  |      |       |       | (19   | )     |     |     | (16 | )   |       |       | (4    | )    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Equity in income from consolidated entities                  |                                     |       |         |       |          |      |         |     |          |     |         |     |          |      |         |      |        |     |     |      |       |       |      |       |     |     |    |     |       |       |      |      
|                                        |                                                     |                                                             
|                                        |                                                     | Income (loss) before minority interests, income              |                                     |       |          |       |          |      |          |     |          |     |          |     |          |      |          |      |        |     |      |      |       |       |       |       |     |     |     |     |       |       |       |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     |                                                              | tax benefit, loss on sale of assets |       |          | 2,531 |          |      |          | 15  |          |     |          | 193 |          |      |          | (536 | )      |     |      | (857 | )     |       |       | 2,022 |     |     |     | 179 |       |       |       | 1,794 | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Minority interests                                           |                                     |       |         |       |          |      |         |     |          |     |         |     |          |      |         |      |        |     |     |      |       |       |      |       |     |     |    |     |       |       |      |      
|                                        |                                                     |                                                             
|                                        |                                                     | Income (loss) before income tax benefit, loss on             |                                     |       |          |       |          |      |          |     |          |     |          |     |          |      |          |      |        |     |      |      |       |       |       |       |     |     |     |     |       |       |       |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     |                                                              | sale of assets                      |       |          | 2,531 |          |      |          | 15  |          |     |          | 193 |          |      |          | (536 | )      |     |      | (857 | )     |       |       | 2,022 |     |     |     | 179 |       |       |       | 1,794 | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income tax benefit                                           |                                     |       |         |       |          |      |         |     |          |     |         |     |          |      |         |      |        |     |     |      |       |       |      |       |     |     |    |     |       |       |      |      
|                                        |                                                     |                                                             
|                                        |                                                     | Income (loss) before loss on sale of assets                  |                                     |       | 2,531    |       |          |      | 15       |     |          |     | 193      |     |          |      | (536     | )    |        |     | (857 | )    |       |       | 2,022 |       |     |     | 179 |     |       |       | 1,794 |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on sale of assets, net of tax effect                    |                                     |       |         |       |          |      |         |     |          |     |         |     |          |      |         |      |        |     |     |      |       |       |      |       |     |     |    |     |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Extraordinary item, net of tax effect                        |                                     |       |         |       |          |      |         |     |          |     |         |     |          |      |         |      |        |     |     |      |       |       |      |       |     |     |    |     |       |       |      |      
|                                        |                                                     |                                                             
|                                        |                                                     | Net income (loss)                                            |                                     |       | 2,531    |       |          |      | 15       |     |          |     | 193      |     |          |      | (536     | )    |        |     | (857 | )    |       |       | 2,022 |       |     |     | 179 |     |       |       | 1,794 |      
|                                        |                                                     |                                                             





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Six months ended June 30, 2001
(in thousands)

|                                        |                                                     |                                                              |                                     |      |          |      |          |       |          |      |          |       |          |         |          |       |          |       |          |     |     |     |     |     |     |     |       |       |       |       |     |     |      |      |  
|--------------------------------------- | --------------------------------------------------- | ------------------------------------------------------------ | ----------------------------------- | ---- | -------- | ---- | -------- | ----- | -------- | ---- | -------- | ----- | -------- | ------- | -------- | ----- | -------- | ----- | -------- | --- | --- | --- | --- | --- | --- | --- | ----- | ----- | ----- | ----- | --- | --- | ---- | ---- | -
|                                        |                                                     |                                                              |                                     |      | MeriStar |      | MeriStar |       | MeriStar |      | MeriStar |       | MeriStar |         | MeriStar |       | MeriStar |       | MeriStar
|                                        |                                                     |                                                              |                                     |      | Sub 2D,  |      | Sub 4F,  |       | Sub 5K,  |      | Sub 5M,  |       | Sub 1E,  |         | Sub 5O,  |       | Sub 6M   |       | Sub 4B, 
|Revenue:                                |                                                     | LLC                                                          |                                     | L.P. |          | LLC  |          | LLC   |          | L.P. |          | LLC   |          | Company |          | L.P. 
|                                        |                                                     |                                                             
|                                        | Participating lease revenue                         |                                                              |                                     | 671  |          |      |          | 1,282 |          |      |          | 1,603 |          |         |          | 1,528 |          |       |          | 859 |     |     |     | 587 |     |     |       | 2,600 |       |       |     | 130 |     
|                                       
|                                       
|                                       
|                                       
|                                        | Hotel operations:                                   |                                                              |                                     |      |          |      |          |       |          |      |          |       |          |         |          |       |          |       |          |     |     |     |     |     |     |     |       |       |       |       |     |     |     
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                        |                                     |      |         |      |          |       |         |      |          |       |         |         |          |       |         |       |          |     |    |     |     |     |    |     |       |       |      |       |     |     |     |     
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                            |                                     |      |         |      |          |       |         |      |          |       |         |         |          |       |         |       |          |     |    |     |     |     |    |     |       |       |      |       |     |     |     |     
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                  |                                     |      |         |      |          |       |         |      |          |       |         |         |          |       |         |       |          |     |    |     |     |     |    |     |       |       |      |       |     |     |     |     
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental and other revenues                    |                                                              |                                     |     |          |      |          | 4     |          |      |          |      |          |         |          |      |          |       |          |    |     |     |     |    |     |     |       |      |       |       |     |    |     
|                                        |                                                     |                                                             
|Total revenue                           |                                                     |                                                              | 671                                 |      |          |      | 1,286    |       |          |      | 1,603    |       |          |         | 1,528    |       |          |       | 859      |     |     |     | 587 |     |     |     | 2,600 |       |       |       | 130 |    
|                                        |                                                     |                                                             
|Hotel operating expenses by department: |                                                     |                                                              |                                     |      |          |      |          |       |          |      |          |       |          |         |          |       |          |       |          |     |     |     |     |     |     |     |       |       |       |       |     |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                                        |                                     |      |         |      |          |       |         |      |          |       |         |         |          |       |         |       |          |     |    |     |     |     |    |     |       |       |      |       |     |     |     |     
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                            |                                     |      |         |      |          |       |         |      |          |       |         |         |          |       |         |       |          |     |    |     |     |     |    |     |       |       |      |       |     |     |     |     
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                                  |                                     |      |         |      |          |       |         |      |          |       |         |         |          |       |         |       |          |     |    |     |     |     |    |     |       |       |      |       |     |     |     |     
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental, parking and other operating expenses |                                                              |                                     |     |          |      |          |      |          |      |          |      |          |         |          |      |          |       |          |    |     |     |     |    |     |     |       |      |       |       |     |    |     
|                                       
|                                       
|                                       
|                                       
|Undistributed operating expenses:       |                                                     |                                                              |                                     |      |          |      |          |       |          |      |          |       |          |         |          |       |          |       |          |     |     |     |     |     |     |     |       |       |       |       |     |    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Administrative and general                                   |                                     |      |         |      |          |       |         |      |          |       |         |         |          |       |         |       |          |     |    |     |     |     |    |     |       |       |      |       |     |     |     |     
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property operating costs                                     |                                     |      |         |      |          |       |         |      |          |       |         |         |          |       |         |       |          |     |    |     |     |     |    |     |       |       |      |       |     |     |     |     
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property taxes, insurance and other                          |                                     |      | 199      |      |          |       | 245      |      |          |       | 153      |         |          |       | 54       |       |          |     | 70  |     |     |     | 24  |     |       |       | 116   |       |     |     | 211  |     
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Depreciation and amortization                                |                                     |      | 232      |      |          |       | 541      |      |          |       | 591      |         |          |       | 220      |       |          |     | 143 |     |     |     | 112 |     |       |       | 596   |       |     |     | 540  |     
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of investment in STS Hotel Net                    |                                     |      |         |      |          |       |         |      |          |       |         |         |          |       |         |       |          |     |    |     |     |     |    |     |       |       |      |       |     |     |     |     
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on asset impairment                                     |                                     |      |         |      |          |       |         |      |          |       |         |         |          |       |         |       |          |     |    |     |     |     |    |     |       |       |      |       |     |     |     |     
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Swap termination fees                                        |                                     |      |         |      |          |       |         |      |          |       |         |         |          |       |         |       |          |     |    |     |     |     |    |     |       |       |      |       |     |     |     |     
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on fair value of non-hedging derivatives                |                                     |      |         |      |          |       |         |      |          |       |         |         |          |       |         |       |          |     |    |     |     |     |    |     |       |       |      |       |     |     |     |     
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | FelCor merger costs                                          |                                     |      |         |      |          |       |         |      |          |       |         |         |          |       |         |       |          |     |    |     |     |     |    |     |       |       |      |       |     |     |     |     
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Costs
to terminate leases with
Prime Hospitality Corporation |                                     |      |         |      |          |       |         |      |          |       |         |         |          |       |         |       |          |     |    |     |     |     |    |     |       |       |      |       |     |     |     |     
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Restructuring charge                                         |                                     |      |         |      |          |       |         |      |          |       |         |         |          |       |         |       |          |     |    |     |     |     |    |     |       |       |      |       |     |     |     |     
|                                        |                                                     |                                                             
|                                        |                                                     | Total operating expenses                                     |                                     |      | 431      |      |          |       | 786      |      |          |       | 744      |         |          |       | 274      |       |          |     | 212 |     |     |     | 137 |     |       |       | 712   |       |     |     | 751  |     
|                                        |                                                     |                                                             
|                                        |                                                     | Net operating income                                         |                                     |      | 239      |      |          |       | 500      |      |          |       | 859      |         |          |       | 1,253    |       |          |     | 647 |     |     |     | 450 |     |       |       | 1,888 |       |     |     | (621 | )   
|                                        |                                                     | Interest expense, net                                        |                                     |      | 393      |      |          |       | (19      | )    |          |       | (14      | )       |          |       | (14      | )     |          |     | (18 | )   |     |     | (3  | )   |       |       | (9    | )     |     |     | (39  | )   
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Equity in income from consolidated entities                  |                                     |      |         |      |          |       |         |      |          |       |         |         |          |       |         |       |          |     |    |     |     |     |    |     |       |       |      |       |     |     |     |     
|                                        |                                                     |                                                             
|                                        |                                                     | Income (loss) before minority interests, income              |                                     |      |          |      |          |       |          |      |          |       |          |         |          |       |          |       |          |     |     |     |     |     |     |     |       |       |       |       |     |     |      |     
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     |                                                              | tax benefit, loss on sale of assets |      |          | (153 | )        |       |          | 519  |          |       |          | 873     |          |       |          | 1,268 |          |     |     | 665 |     |     |     | 453 |       |       |       | 1,897 |     |     |      | (582 | )
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Minority interests                                           |                                     |      |         |      |          |       |         |      |          |       |         |         |          |       |         |       |          |     |    |     |     |     |    |     |       |       |      |       |     |     |     |     
|                                        |                                                     |                                                             
|                                        |                                                     | Income (loss) before income tax benefit, loss on             |                                     |      |          |      |          |       |          |      |          |       |          |         |          |       |          |       |          |     |     |     |     |     |     |     |       |       |       |       |     |     |      |     
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     |                                                              | sale of assets                      |      |          | (153 | )        |       |          | 519  |          |       |          | 873     |          |       |          | 1,268 |          |     |     | 665 |     |     |     | 453 |       |       |       | 1,897 |     |     |      | (582 | )
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income tax benefit                                           |                                     |      |         |      |          |       |         |      |          |       |         |         |          |       |         |       |          |     |    |     |     |     |    |     |       |       |      |       |     |     |     |     
|                                        |                                                     |                                                             
|                                        |                                                     | Income (loss) before loss on sale of assets                  |                                     |      | (153     | )    |          |       | 519      |      |          |       | 873      |         |          |       | 1,268    |       |          |     | 665 |     |     |     | 453 |     |       |       | 1,897 |       |     |     | (582 | )   
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on sale of assets, net of tax effect                    |                                     |      |         |      |          |       |         |      |          |       |         |         |          |       |         |       |          |     |    |     |     |     |    |     |       |       |      |       |     |     |     |     
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Extraordinary item, net of tax effect                        |                                     |      |         |      |          |       |         |      |          |       |         |         |          |       |         |       |          |     |    |     |     |     |    |     |       |       |      |       |     |     |     |     
|                                        |                                                     |                                                             
|                                        |                                                     | Net income (loss)                                            |                                     |      | (153     | )    |          |       | 519      |      |          |       | 873      |         |          |       | 1,268    |       |          |     | 665 |     |     |     | 453 |     |       |       | 1,897 |       |     |     | (582 | )   
|                                        |                                                     |                                                             





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Six months ended June 30, 2001
(in thousands)

|                                        |                                                     |                                                  |                                     |       |          |       |          |     |          |      |          |       |          |     |          |     |          |     |          |       |       |       |     |     |     |     |       |       |       |       |       |       |       |       | 
|--------------------------------------- | --------------------------------------------------- | ------------------------------------------------ | ----------------------------------- | ----- | -------- | ----- | -------- | --- | -------- | ---- | -------- | ----- | -------- | --- | -------- | --- | -------- | --- | -------- | ----- | ----- | ----- | --- | --- | --- | --- | ----- | ----- | ----- | ----- | ----- | ----- | ----- | ----- | 
|                                        |                                                     |                                                  |                                     |       |          |       |          |     |          |      |          |       |          |     |          |     |          |     |          |       |       |       |     |     |     |     |       |       |       |       |       |       |      
|                                        |                                                     |                                                  |                                     |       | MeriStar |       | MeriStar |     | MeriStar |      | MeriStar |       | MeriStar |     | MeriStar |     | MeriStar |     | MeriStar
|                                        |                                                     |                                                  |                                     |       | Sub 6C,  |       | Sub 2C,  |     | Sub 4G,  |      | Sub 3B,  |       | Sub 5G,  |     | Sub 5P,  |     | Sub 5J,  |     | Sub 5Q, 
|Revenue:                                |                                                     | LLC                                              |                                     | LLC   |          | L.P.  |          | LLC |          | L.P. |          | LLC   |          | LLC |          | LLC
|                                        |                                                     |                                                 
|                                        | Participating lease revenue                         |                                                  |                                     | 1,721 |          |       |          | 942 |          |      |          | 1,674 |          |     |          | 790 |          |     |          | 7,572 |       |       |     | 372 |     |     |       | 7,300 |       |       |       | 1,682 |      
|                                       
|                                       
|                                       
|                                       
|                                        | Hotel operations:                                   |                                                  |                                     |       |          |       |          |     |          |      |          |       |          |     |          |     |          |     |          |       |       |       |     |     |     |     |       |       |       |       |       |       |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                            |                                     |       |         |       |          |     |         |      |          |       |         |     |          |     |         |     |          |       |      |       |     |     |    |     |       |       |      |       |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                |                                     |       |         |       |          |     |         |      |          |       |         |     |          |     |         |     |          |       |      |       |     |     |    |     |       |       |      |       |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                      |                                     |       |         |       |          |     |         |      |          |       |         |     |          |     |         |     |          |       |      |       |     |     |    |     |       |       |      |       |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental and other revenues                    |                                                  |                                     | 6     |          |       |          | 15  |          |      |          | 12    |          |     |          | 7   |          |     |          | 32    |       |       |     |    |     |     |       |      |       |       |       |      |      
|                                        |                                                     |                                                 
|Total revenue                           |                                                     |                                                  | 1,727                               |       |          |       | 958      |     |          |      | 1,686    |       |          |     | 797      |     |          |     | 7,604    |       |       |       | 372 |     |     |     | 7,300 |       |       |       | 1,682 |      
|                                        |                                                     |                                                 
|Hotel operating expenses by department: |                                                     |                                                  |                                     |       |          |       |          |     |          |      |          |       |          |     |          |     |          |     |          |       |       |       |     |     |     |     |       |       |       |       |       |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                            |                                     |       |         |       |          |     |         |      |          |       |         |     |          |     |         |     |          |       |      |       |     |     |    |     |       |       |      |       |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                |                                     |       |         |       |          |     |         |      |          |       |         |     |          |     |         |     |          |       |      |       |     |     |    |     |       |       |      |       |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                      |                                     |       |         |       |          |     |         |      |          |       |         |     |          |     |         |     |          |       |      |       |     |     |    |     |       |       |      |       |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental, parking and other operating expenses |                                                  |                                     |      |          |       |          |    |          |      |          |      |          |     |          |    |          |     |          |      |       |       |     |    |     |     |       |      |       |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|Undistributed operating expenses:       |                                                     |                                                  |                                     |       |          |       |          |     |          |      |          |       |          |     |          |     |          |     |          |       |       |       |     |     |     |     |       |       |       |       |       |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Administrative and general                       |                                     |       |         |       |          |     |         |      |          |       |         |     |          |     |         |     |          |       | 4     |       |     |     |    |     |       |       | 1     |       |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property operating costs                         |                                     |       |         |       |          |     |         |      |          |       |         |     |          |     |         |     |          |       |      |       |     |     |    |     |       |       |      |       |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property taxes, insurance and other              |                                     |       | 56       |       |          |     | 333      |      |          |       | 433      |     |          |     | 158      |     |          |       | 697   |       |     |     | 4   |     |       |       | 169   |       |       |       | (71   | )    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Depreciation and amortization                    |                                     |       | 365      |       |          |     | 516      |      |          |       | 417      |     |          |     | 438      |     |          |       | 3,079 |       |     |     |    |     |       |       | 1,681 |       |       |       | 205   |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of investment in STS Hotel Net        |                                     |       |         |       |          |     |         |      |          |       |         |     |          |     |         |     |          |       |      |       |     |     |    |     |       |       |      |       |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on asset impairment                         |                                     |       |         |       |          |     |         |      |          |       |         |     |          |     |         |     |          |       |      |       |     |     |    |     |       |       |      |       |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Swap termination fees                            |                                     |       |         |       |          |     |         |      |          |       |         |     |          |     |         |     |          |       |      |       |     |     |    |     |       |       |      |       |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on fair value of non-hedging derivatives    |                                     |       |         |       |          |     |         |      |          |       |         |     |          |     |         |     |          |       |      |       |     |     |    |     |       |       |      |       |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | FelCor merger costs                              |                                     |       |         |       |          |     |         |      |          |       |         |     |          |     |         |     |          |       |      |       |     |     |    |     |       |       |      |       |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Costs to terminate leases with Prime Hospitality |                                     |       |          |       |          |     |          |      |          |       |          |     |          |     |          |     |          |       |       |       |     |     |     |     |       |       |       |       |       |       |       |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     |                                                  | Corporation                         |       |          |      |          |     |          |     |          |       |          |    |          |     |          |    |          |       |       |      |     |     |     |    |       |       |       |      |       |       |       |      | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Restructuring charge                             |                                     |       |         |       |          |     |         |      |          |       |         |     |          |     |         |     |          |       |      |       |     |     |    |     |       |       |      |       |       |       |      |      
|                                        |                                                     |                                                 
|                                        |                                                     | Total operating expenses                         |                                     |       | 421      |       |          |     | 848      |      |          |       | 850      |     |          |     | 596      |     |          |       | 3,781 |       |     |     | 4   |     |       |       | 1,851 |       |       |       | 134   |      
|                                        |                                                     |                                                 
|                                        |                                                     | Net operating income                             |                                     |       | 1,306    |       |          |     | 110      |      |          |       | 836      |     |          |     | 201      |     |          |       | 3,824 |       |     |     | 367 |     |       |       | 5,449 |       |       |       | 1,549 |      
|                                        |                                                     | Interest expense, net                            |                                     |       | (41      | )     |          |     | 695      |      |          |       | (31      | )   |          |     | (19      | )   |          |       | (21   | )     |     |     |    |     |       |       | (52   | )     |       |       | (59   | )    
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Equity in income from consolidated entities      |                                     |       |         |       |          |     |         |      |          |       |         |     |          |     |         |     |          |       |      |       |     |     |    |     |       |       |      |       |       |       |      |      
|                                        |                                                     |                                                 
|                                        |                                                     | Income (loss) before minority interests, income  |                                     |       |          |       |          |     |          |      |          |       |          |     |          |     |          |     |          |       |       |       |     |     |     |     |       |       |       |       |       |       |       |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     |                                                  | tax benefit, loss on sale of assets |       |          | 1,347 |          |     |          | (585 | )        |       |          | 867 |          |     |          | 220 |          |       |       | 3,845 |     |     |     | 367 |       |       |       | 5,501 |       |       |       | 1,608 | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Minority interests                               |                                     |       |         |       |          |     |         |      |          |       |         |     |          |     |         |     |          |       |      |       |     |     |    |     |       |       |      |       |       |       |      |      
|                                        |                                                     |                                                 
|                                        |                                                     | Income (loss) before income tax benefit, loss on |                                     |       |          |       |          |     |          |      |          |       |          |     |          |     |          |     |          |       |       |       |     |     |     |     |       |       |       |       |       |       |       |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     |                                                  | sale of assets                      |       |          | 1,347 |          |     |          | (585 | )        |       |          | 867 |          |     |          | 220 |          |       |       | 3,845 |     |     |     | 367 |       |       |       | 5,501 |       |       |       | 1,608 | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income tax benefit                               |                                     |       |         |       |          |     |         |      |          |       |         |     |          |     |         |     |          |       |      |       |     |     |    |     |       |       |      |       |       |       |      |      
|                                        |                                                     |                                                 
|                                        |                                                     | Income (loss) before loss on sale of assets      |                                     |       | 1,347    |       |          |     | (585     | )    |          |       | 867      |     |          |     | 220      |     |          |       | 3,845 |       |     |     | 367 |     |       |       | 5,501 |       |       |       | 1,608 |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on sale of assets, net of tax effect        |                                     |       |         |       |          |     |         |      |          |       |         |     |          |     |         |     |          |       |      |       |     |     |    |     |       |       |      |       |       |       |      |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Extraordinary item, net of tax effect            |                                     |       |         |       |          |     |         |      |          |       |         |     |          |     |         |     |          |       |      |       |     |     |    |     |       |       |      |       |       |       |      |      
|                                        |                                                     |                                                 
|                                        |                                                     | Net income (loss)                                |                                     |       | 1,347    |       |          |     | (585     | )    |          |       | 867      |     |          |     | 220      |     |          |       | 3,845 |       |     |     | 367 |     |       |       | 5,501 |       |       |       | 1,608 |      
|                                        |                                                     |                                                 





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Six months ended June 30, 2001
(in thousands)

|                                        |                                                     |                                                  |                                     |       |          |     |          |              |          |              |          |              |     |     |         |   |         |        |          |          |          |          |         |       |         |        | 
|--------------------------------------- | --------------------------------------------------- | ------------------------------------------------ | ----------------------------------- | ----- | -------- | --- | -------- | ------------ | -------- | ------------ | -------- | ------------ | --- | --- | ------- | - | ------- | ------ | -------- | -------- | -------- | -------- | ------- | ----- | ------- | ------ | 
|                                        |                                                     |                                                  |                                     |       | MeriStar |     | MeriStar |              | MeriStar |              | MeriStar |              |     |     |         |   |         |        |         
|                                        |                                                     |                                                  |                                     |       | Sub 5A,  |     | Sub 8D,  |              | Sub 4J,  |              | Hotel    |              |     |     |         |   | Total  
|Revenue:                                |                                                     | LLC                                              |                                     | LLC   |          | LLC |          | Lessee, Inc. |          | Eliminations |          | Consolidated
|                                        |                                                     |                                                 
|                                        | Participating lease revenue                         |                                                  |                                     | 3,037 |          |     |          | 1,920        |          |              |          | 1,513        |     |     |         |  |         |        |          | (177,531 | )        |          |         | 7,536 |        
|                                       
|                                       
|                                       
|                                       
|                                        | Hotel operations:                                   |                                                  |                                     |       |          |     |          |              |          |              |          |              |     |     |         |   |         |        |          |          |          |          |         |      |        
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                            |                                     |       |         |     |          |              |         |              |          |              |    |     |         |   | 402,760 |        |          |          |         |          |         |       | 402,760 |       
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                |                                     |       |         |     |          |              |         |              |          |              |    |     |         |   | 145,383 |        |          |          |         |          |         |       | 145,383 |       
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                      |                                     |       |         |     |          |              |         |              |          |              |    |     |         |   | 46,385  |        |          |          |         |          |         |       | 46,005  |       
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental and other revenues                    |                                                  |                                     | 47    |          |     |          |             |          |              |          | 130          |     |     |         |  |         |        |          |         |          |          |         | 8,167 |        
|                                        |                                                     |                                                 
|Total revenue                           |                                                     |                                                  | 3,084                               |       |          |     | 1,920    |              |          |              | 1,642    |              |     |     | 594,528 |   |         |        | (177,531 | )        |          |          | 609,851 |      
|                                        |                                                     |                                                 
|Hotel operating expenses by department: |                                                     |                                                  |                                     |       |          |     |          |              |          |              |          |              |     |     |         |   |         |        |          |          |          |          |        |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Rooms                                            |                                     |       |         |     |          |              |         |              |          |              |    |     |         |   | 92,287  |        |          |          |         |          |         |       | 92,287  |       
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Food and beverage                                |                                     |       |         |     |          |              |         |              |          |              |    |     |         |   | 103,890 |        |          |          |         |          |         |       | 103,890 |       
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Other operating departments                      |                                     |       |         |     |          |              |         |              |          |              |    |     |         |   | 23,616  |        |          |          |         |          |         |       | 23,616  |       
|                                       
|                                       
|                                       
|                                       
|                                        | Office rental, parking and other operating expenses |                                                  |                                     |      |          |     |          |             |          |              |          | 249          |     |     |         |  |         |        |          |         |          |          |         | 1,625 |        
|                                       
|                                       
|                                       
|                                       
|Undistributed operating expenses:       |                                                     |                                                  |                                     |       |          |     |          |              |          |              |          |              |     |     |         |   |         |        |          |          |          |          |        |      
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Administrative and general                       |                                     |       | 2        |     |          |              | 26       |              |          |              | 1   |     |         |   | 84,320  |        |          |          |         |          |         |       | 88,055  |       
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property operating costs                         |                                     |       |         |     |          |              |         |              |          |              |    |     |         |   | 84,977  |        |          |          |         |          |         |       | 84,977  |       
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Property taxes, insurance and other              |                                     |       | 252      |     |          |              | 163      |              |          |              | 16  |     |         |   | 192,955 |        |          |          | (177,531 | )        |         |       | 36,902  |       
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Depreciation and amortization                    |                                     |       | 834      |     |          |              | 622      |              |          |              | 618 |     |         |   | 123     |        |          |          |         |          |         |       | 57,787  |       
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Write down of investment in STS Hotel Net        |                                     |       |         |     |          |              |         |              |          |              |    |     |         |   |        |        |          |          |         |          |         |       | 2,112   |       
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on asset impairment                         |                                     |       |         |     |          |              |         |              |          |              |    |     |         |   |        |        |          |          |         |          |         |       |        |       
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Swap termination fees                            |                                     |       |         |     |          |              |         |              |          |              |    |     |         |   |        |        |          |          |         |          |         |       | 9,297   |       
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on fair value of non-hedging derivatives    |                                     |       |         |     |          |              |         |              |          |              |    |     |         |   |        |        |          |          |         |          |         |       |        |       
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | FelCor merger costs                              |                                     |       |         |     |          |              |         |              |          |              |    |     |         |   |        |        |          |          |         |          |         |       | 3,789   |       
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Costs to terminate leases with Prime Hospitality |                                     |       |          |     |          |              |          |              |          |              |     |     |         |   |         |        |          |          |          |          |         |       |        |       
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     |                                                  | Corporation                         |       |          |    |          |              |          |             |          |              |     |    |         |   |         |       |          |          |          |         |         |       |         | 1,315  | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Restructuring charge                             |                                     |       |         |     |          |              |         |              |          |              |    |     |         |   |        |        |          |          |         |          |         |       |        |       
|                                        |                                                     |                                                 
|                                        |                                                     | Total operating expenses                         |                                     |       | 1,087    |     |          |              | 811      |              |          |              | 885 |     |         |   | 582,168 |        |          |          | (177,531 | )        |         |       | 505,652 |       
|                                        |                                                     |                                                 
|                                        |                                                     | Net operating income                             |                                     |       | 1,997    |     |          |              | 1,109    |              |          |              | 757 |     |         |   | 12,360  |        |          |          |         |          |         |       | 104,199 |       
|                                        |                                                     | Interest expense, net                            |                                     |       | 1,398    |     |          |              | (16      | )            |          |              | (60 | )   |         |   |        |        |          |          |         |          |         |       | 60,261  |       
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Equity in income from consolidated entities      |                                     |       |         |     |          |              |         |              |          |              |    |     |         |   |        |        |          |          | 109,079  |          |         |       |        |       
|                                        |                                                     |                                                 
|                                        |                                                     | Income (loss) before minority interests, income  |                                     |       |          |     |          |              |          |              |          |              |     |     |         |   |         |        |          |          |          |          |         |       |        |       
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     |                                                  | tax benefit, loss on sale of assets |       |          | 599 |          |              |          | 1,124        |          |              |     | 817 |         |   |         | 12,360 |          |          |          | (109,079 | )       |       |         | 43,938 | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Minority interests                               |                                     |       |         |     |          |              |         |              |          |              |    |     |         |   |        |        |          |          |         |          |         |       | 6       |       
|                                        |                                                     |                                                 
|                                        |                                                     | Income (loss) before income tax benefit, loss on |                                     |       |          |     |          |              |          |              |          |              |     |     |         |   |         |        |          |          |          |          |         |       |        |       
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     |                                                  | sale of assets                      |       |          | 599 |          |              |          | 1,124        |          |              |     | 817 |         |   |         | 12,360 |          |          |          | (109,079 | )       |       |         | 43,932 | 
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Income tax benefit                               |                                     |       |         |     |          |              |         |              |          |              |    |     |         |   |        |        |          |          |         |          |         |       | 1,242   |       
|                                        |                                                     |                                                 
|                                        |                                                     | Income (loss) before loss on sale of assets      |                                     |       | 599      |     |          |              | 1,124    |              |          |              | 817 |     |         |   | 12,360  |        |          |          | (109,079 | )        |         |       | 42,690  |       
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Loss on sale of assets, net of tax effect        |                                     |       |         |     |          |              |         |              |          |              |    |     |         |   |        |        |          |          |         |          |         |       | 1,062   |       
|                                       
|                                       
|                                       
|                                       
|                                        |                                                     | Extraordinary item, net of tax effect            |                                     |       |         |     |          |              |         |              |          |              |    |     |         |   |        |        |          |          |         |          |         |       | 1,226   |       
|                                        |                                                     |                                                 
|                                        |                                                     | Net income (loss)                                |                                     |       | 599      |     |          |              | 1,124    |              |          |              | 817 |     |         |   | 12,360  |        |          |          | (109,079 | )        |         |       | 40,402  |       
|                                        |                                                     |                                                 





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidated Statement of Cash Flows
For the six months ended June 30, 2001
(in thousands)

|                                               |                                                                                                    |  |                                                                       |                                                          |   |             |          |              |   |          |         |         |  |          |   |          |   |          |   |          |   |    |     |     |   |     |     |        |   |     |        |   |  |   |   | 
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- |  | --------------------------------------------------------------------- | -------------------------------------------------------- | - | ----------- | -------- | ------------ | - | -------- | ------- | ------- |  | -------- | - | -------- | - | -------- | - | -------- | - | -- | --- | --- | - | --- | --- | ------ | - | --- | ------ | - |  | - | - | 
|                                               |                                                                                                    |  |                                                                       |                                                          |   |             |          |              |   |          |         |         |  |          |   |          |   |          |   |          |   |    |     |     |   | MT  |     |        |   |     |        |   |  |  
|                                               |                                                                                                    |  |                                                                       |                                                          |   | MeriStar    |          | Non-         |   | MeriStar |         | AGH     |  | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar
|                                               |                                                                                                    |  |                                                                       |                                                          |   | Hospitality |          | Guarantor    |   | Sub 7C,  |         | Upreit, |  | Sub 5N,  |   | Sub 8A,  |   | Sub
8F,  |   | Sub 8G, 
|                                               |                                                                                                    |  |                                                                       |                                                          |   | OP, L.P.    |          | Subsidiaries |   | LLC      |         | LLC     |  | LLC      |   | LLC      |   | LLC      |   | LLC     
|                                               |                                                                                                    | 
|Cash flows from operating activities:          |                                                                                                    |  |                                                                       |                                                          |   |             |          |              |   |          |         |         |  |          |   |          |   |          |   |          |   |    |     |     |   |     |     |        |   |     |        |  
|                                              
|                                              
|                                              
|                                              
|                                               | Net Income (loss)                                                                                  |  |                                                                       | 40,402                                                   |   |             |          | 42,455       |   |          |         |        |  |          |   |         |   |          |   | 642      |   |    |     | 700 |   |     |     | 1,116  |   |     |        |  | 
|                                              
|                                              
|                                              
|                                              
|                                               | Adjustments
to reconcile net income (loss) to net cash provided by (used in) operating activities: |  |                                                                       |                                                          |   |             |          |              |   |          |         |         |  |          |   |          |   |          |   |          |   |    |     |     |   |     |     |        |   |     |        |   | 
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Depreciation and amortization                                         |                                                          |   | 3,431       |          |              |   | 25,659   |         |         |  |         |   |          |   |         |   |          |   | 64 |     |     |   | 145 |     |        |   | 218 |        |   |  |  |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Equity in earnings                                                    |                                                          |   | (109,079    | )        |              |   |         |         |         |  |         |   |          |   |         |   |          |   |   |     |     |   |    |     |        |   |    |        |   |  |  |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Loss on sale of assets, net of tax                                    |                                                          |   |            |          |              |   |         |         |         |  |         |   |          |   |         |   |          |   |   |     |     |   |    |     |        |   |    |        |   |  |  |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Write down of investment in STS Hotel Net                             |                                                          |   | 2,112       |          |              |   |         |         |         |  |         |   |          |   |         |   |          |   |   |     |     |   |    |     |        |   |    |        |   |  |  |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Extraordinary loss on early extinguishment of debt, before tax effect |                                                          |   | 1,243       |          |              |   |         |         |         |  |         |   |          |   |         |   |          |   |   |     |     |   |    |     |        |   |    |        |   |  |  |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Minority interests                                                    |                                                          |   | 6           |          |              |   |         |         |         |  |         |   |          |   |         |   |          |   |   |     |     |   |    |     |        |   |    |        |   |  |  |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Amortization of unearned stock based compensation                     |                                                          |   | 1,842       |          |              |   |         |         |         |  |         |   |          |   |         |   |          |   |   |     |     |   |    |     |        |   |    |        |   |  |  |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Interest rate swaps marked to fair value                              |                                                          |   |            |          |              |   |          |         |         |  |          |   |          |   |          |   |          |   |    |     |     |   |     |     |        |   |     |        |   |  |   |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Deferred income taxes                                                 |                                                          |   | 296         |          |              |   |         |         |         |  |         |   |          |   |         |   |          |   |   |     |     |   |    |     |        |   |    |        |   |  |  |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Changes in operating assets and liabilities:                          |                                                          |   |             |          |              |   |          |         |         |  |          |   |          |   |          |   |          |   |    |     |     |   |     |     |        |   |     |        |   |  |   |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  |                                                                       | Accounts receivable, net                                 |   |             | (597     | )            |   |          | 544     |         |  |          |  |          |   |          |  |          |   |    |    |     |   |     | (16 | )      |   |     | 135    |   |  |   |  | 
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  |                                                                       | Prepaid expenses and other                               |   |             | 1,439    |              |   |          | (180    | )       |  |          |  |          |   |          |  |          |   |    |    |     |   |     |    |        |   |     | (6     | ) |  |   |  | 
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  |                                                                       | Due from/to Meristar Hotels                              |   |             | 6,277    |              |   |          | 2,159   |         |  |          |  |          |   |          |  |          |   |    | 14  |     |   |     | 16  |        |   |     |       |   |  |   |  | 
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  |                                                                       | Accounts payable, accrued expenses and other liabilities |   |             | 21,226   |              |   |          | (28,740 | )       |  |          |  |          |   |          |  |          |   |    | 7   |     |   |     | (6  | )      |   |     | (1     | ) |  |   |  | 
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  |                                                                       | Accrued interest                                         |   |             | 16,282   |              |   |          | (313    | )       |  |          |  |          |   |          |  |          |   |    |    |     |   |     |    |        |   |     | (9     | ) |  |   |  | 
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  |                                                                       | Due from subsidiaries                                    |   | 362,849     |          | (27,200      | ) |         |         |        |  | (706     | ) | (776     | ) | 2,155    |   |         |  
|                                               |                                                                                                    |  |                                                                       | Income taxes payable                                     |   |             | 499      |              |   |          |        |         |  |          |  |          |   |          |  |          |   |    |    |     |   |     |    |        |   |     |       |   |  |   |  | 
|                                               |                                                                                                    | 
|                                               |                                                                                                    |  |                                                                       | Net cash provided by (used in) operating activities      |   | 348,228     |          | 14,385       |   |         |         |        |  | 21       |   | 63       |   | 3,608    |   |         |  
|                                               |                                                                                                    | 
|Cash flows from investing activities:          |                                                                                                    |  |                                                                       |                                                          |   |             |          |              |   |          |         |         |  |          |   |          |   |          |   |          |   |    |     |     |   |     |     |        |   |     |        |  
|                                              
|                                              
|                                              
|                                              
|                                               | Investment in hotel properties                                                                     |  |                                                                       | (2,215                                                   | ) |             |          | (10,443      | ) |          |         |        |  |          |   |         |   |          |   | (21      | ) |    |     | (63 | ) |     |     | (117   | ) |     |        |  | 
|                                              
|                                              
|                                              
|                                              
|                                               | Proceeds from disposition of assets                                                                |  |                                                                       |                                                         |   |             |          |             |   |          |         |        |  |          |   |         |   |          |   |         |   |    |     |    |   |     |     |       |   |     |        |  | 
|                                              
|                                              
|                                              
|                                              
|                                              
|                                              
|                                              
|                                              
|                                               | Hotel operating cash received in connection with lease conversions                                 |  |                                                                       |                                                         |   |             |          |             |   |          |         |        |  |          |   |         |   |          |   |         |   |    |     |    |   |     |     |       |   |     |        |  |  |   |   | 
|                                              
|                                              
|                                              
|                                              
|                                               | Note receivable                                                                                    |  |                                                                       | (35,536                                                  | ) |             |          |             |   |          |         |        |  |          |   |         |   |          |   |         |   |    |     |    |   |     |     |       |   |     |        |  | 
|                                              
|                                              
|                                              
|                                              
|                                               | Change in restricted cash                                                                          |  |                                                                       | 837                                                      |   |             |          | (1,608       | ) |          |         |        |  |          |   |         |   |          |   |         |   |    |     |    |   |     |     | 488    |   |     |        |  | 
|                                               |                                                                                                    | 
|                                               |                                                                                                    |  |                                                                       | Net cash provided by (used in) investing activities      |   |             | (36,914  | )            |   |          | (12,050 | )       |  |          |  |          |   |          |  |          |   |    | (21 | )   |   |     | (63 | )      |   |     | 371    |   |  |   |  | 
|                                               |                                                                                                    | 
|Cash flows from financing activities:          |                                                                                                    |  |                                                                       |                                                          |   |             |          |              |   |          |         |         |  |          |   |          |   |          |   |          |   |    |     |     |   |     |     |        |   |     |        |  
|                                              
|                                              
|                                              
|                                              
|                                               | Deferred financing costs                                                                           |  |                                                                       | (9,906                                                   | ) |             |          |             |   |          |         |        |  |          |   |         |   |          |   |         |   |    |     |    |   |     |     |       |   |     |        |  | 
|                                              
|                                              
|                                              
|                                              
|                                               | Proceeds from mortgages and notes payable                                                          |  |                                                                       | 334,938                                                  |   |             |          |             |   |          |         |        |  |          |   |         |   |          |   |         |   |    |     |    |   |     |     | (3,979 | ) |     |        |  | 
|                                              
|                                              
|                                              
|                                              
|                                               | Principal payments on mortgages and notes payable                                                  |  |                                                                       | (582,495                                                 | ) |             |          | (2,335       | ) |          |         |        |  |          |   |         |   |          |   |         |   |    |     |    |   |     |     |       |   |     |        |  | 
|                                              
|                                              
|                                              
|                                              
|                                               | Repurchase
of units                                                                                |  |                                                                       | (3,280                                                   | ) |             |          |             |   |          |         |        |  |          |   |         |   |          |   |         |   |    |     |    |   |     |     |       |   |     |        |  | 
|                                              
|                                              
|                                              
|                                              
|                                               | Contributions from partners                                                                        |  |                                                                       | 705                                                      |   |             |          |             |   |          |         |        |  |          |   |         |   |          |   |         |   |    |     |    |   |     |     |       |   |     |        |  | 
|                                              
|                                              
|                                              
|                                              
|                                               | Distributions to partners                                                                          |  |                                                                       | (49,685                                                  | ) |             |          |             |   |          |         |        |  |          |   |         |   |          |   |         |   |    |     |    |   |     |     |       |   |     |        |  | 
|                                               |                                                                                                    | 
|                                               |                                                                                                    |  |                                                                       | Net cash provided by (used in) financing activities      |   |             | (309,723 | )            |   |          | (2,335  | )       |  |          |  |          |   |          |  |          |   |    |    |     |   |     |    |        |   |     | (3,979 | ) |  |   |  | 
|                                               |                                                                                                    | 
|Effect of exchange rate changes on cash        |                                                                                                    |  |                                                                      |                                                          |   |             |         |              |   |          |        |         |  |          |  |          |   |          |  |          |   |    |    |     |   |     |    |        |   |     |       |  
|                                               |                                                                                                    | 
|Net change in cash                             |                                                                                                    |  | 1,592                                                                 |                                                          |   |             |         |              |   |          |        |         |  |          |  |          |   |          |  |          |   |    |    |     |   |     |    |        |   |     |       |  
|                                              
|                                              
|                                              
|                                              
|Cash and cash equivalents, beginning of period |                                                                                                    |  | 242                                                                   |                                                          |   |             |         |              |   |          |        |         |  |          |  |          |   |          |  |          |   |    |    |     |   |     |    |        |   |     |       |  
|                                               |                                                                                                    | 
|Cash and cash equivalents, end of period       |                                                                                                    |  | 1,834                                                                 |                                                          |   |             |         |              |   |          |        |         |  |          |  |          |   |          |  |          |   |    |    |     |   |     |    |        |   |     |       |  
|                                               |                                                                                                    | 





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidated Statement of Cash Flows
For the six months ended June 30, 2001
(in thousands)

|                                               |                                                                                                    |                                                                                                 |                                                          |     |          |        |          |       |          |        |          |      |     |        |   |     |     |     |  
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------- | -------------------------------------------------------- | --- | -------- | ------ | -------- | ----- | -------- | ------ | -------- | ---- | --- | ------ | - | --- | --- | --- | -
|                                               |                                                                                                    |                                                                                                 |                                                          |     | MeriStar |        | MeriStar |       | MeriStar |        | MeriStar
|                                               |                                                                                                    |                                                                                                 |                                                          |     | Sub 6H,  |        | Sub 8B,  |       | Sub 1C,  |        | Sub 8E, 
|                                               |                                                                                                    |                                                                                                 |                                                          |     | L.P.     |        | LLC      |       | L.P.     |        | LLC     
|                                               |                                                                                                    |                                                                                                 |                                                          |     |         
|Cash flows from operating activities:          |                                                                                                    |                                                                                                 |                                                          |     |          |        |          |       |          |        |          |      |     |        |   |    
|                                               | Net Income (loss)                                                                                  |                                                                                                 |                                                          | 528 |          |        |          | 5,849 |          |        |          | 144  |     |        |   | 781 |    
|                                               | Adjustments to reconcile net income (loss) to
net cash provided by (used in) operating
activities: |                                                                                                 |                                                          |     |          |        |          |       |          |        |          |      |     |        |   |     |    
|                                               |                                                                                                    | Depreciation and amortization                                                                   |                                                          |     | 212      |        |          |       | 1,154    |        |          |      | 505 |        |   |     | 261 |    
|                                               |                                                                                                    | Equity in earnings
Loss on sale of assets, net of tax
Write down of investment in STS
Hotel Net |                                                          |     |         |        |          |       |         |        |          |      |    |        |   |     |    |    
|                                               |                                                                                                    | Extraordinary loss on early
extinguishment of debt, before tax
effect                           |                                                          |     |         |        |          |       |         |        |          |      |    |        |   |     |    |    
|                                               |                                                                                                    | Minority interests                                                                              |                                                          |     |         |        |          |       |         |        |          |      |    |        |   |     |    |    
|                                               |                                                                                                    | Amortization of unearned stock
based compensation                                               |                                                          |     |         |        |          |       |         |        |          |      |    |        |   |     |    |    
|                                               |                                                                                                    | Interest rate swaps marked to fair
value
Deferred income taxes                                  |                                                          |     |         |        |          |       |         |        |          |      |    |        |   |     |    |    
|                                               |                                                                                                    | Changes in operating assets and
liabilities:                                                    |                                                          |     |         |        |          |       |         |        |          |      |    |        |   |     |    |    
|                                               |                                                                                                    |                                                                                                 | Accounts
receivable, net                                 |     |          | (7     | )        |       |          | 184    |          |      |     | (4     | ) |     |     | 62  |  
|                                               |                                                                                                    |                                                                                                 | Prepaid expenses
and other                               |     |          |       |          |       |          | (11    | )        |      |     |       |   |     |     |    |  
|                                               |                                                                                                    |                                                                                                 | Due from/to
Meristar Hotels                              |     |          |       |          |       |          | 120    |          |      |     | 1      |   |     |     |    |  
|                                               |                                                                                                    |                                                                                                 | Accounts payable,
accrued expenses
and other
liabilities |     |          | (47    | )        |       |          | (2,545 | )        |      |     | 61     |   |     |     | (17 | )
|                                               |                                                                                                    |                                                                                                 | Accrued interest                                         |     |          |       |          |       |          |       |          |      |     |       |   |     |     |    |  
|                                               |                                                                                                    |                                                                                                 | Due from
subsidiaries                                    |     |          | (4,594 | )        |       |          | (421   | )        |      |     | (1,034 | ) |     |     |     |  
|                                               |                                                                                                    |                                                                                                 | Income taxes payable                                     |     |          |       |          |       |          |       |          |      |     |       |   |     |     |    |  
|                                               |                                                                                                    |                                                                                                 |                                                          |     |         
|                                               |                                                                                                    |                                                                                                 | Net cash provided
by (used in)
operating
activities      |     |          | 156    |          |       |          | 285    |          |      |     | 53     |   |     |     |     |  
|                                               |                                                                                                    |                                                                                                 |                                                          |     |         
|Cash flows from investing activities:          |                                                                                                    |                                                                                                 |                                                          |     |          |        |          |       |          |        |          |      |     |        |   |    
|                                               | Investment in hotel properties, net                                                                |                                                                                                 |                                                          | (1  | )        |        |          | (156  | )        |        |          | (285 | )   |        |   | (53 | )  
|                                               | Proceeds from disposition of assets                                                                |                                                                                                 |                                                          |    |          |        |          |      |          |        |          |     |     |        |   |    |    
|                                               | Hotel operating cash received in connection with
lease conversions
Note receivable                 |                                                                                                 |                                                          |    |          |        |          |      |          |        |          |     |     |        |   |    |    
|                                               | Change in restricted cash                                                                          |                                                                                                 |                                                          |    |          |        |          |      |          |        |          |     |     |        |   |    |    
|                                               |                                                                                                    |                                                                                                 |                                                          |     |         
|                                               |                                                                                                    |                                                                                                 | Net cash provided
by (used in)
investing
activities      |     |          | (1     | )        |       |          | (156   | )        |      |     | (285   | ) |     |     | (53 | )
|                                               |                                                                                                    |                                                                                                 |                                                          |     |         
|Cash flows from financing activities:          |                                                                                                    |                                                                                                 |                                                          |     |          |        |          |       |          |        |          |      |     |        |   |    
|                                               | Deferred financing costs                                                                           |                                                                                                 |                                                          |    |          |        |          |      |          |        |          |     |     |        |   |    |    
|                                               | Proceeds from mortgages and notes payable                                                          |                                                                                                 |                                                          |    |          |        |          |      |          |        |          |     |     |        |   |    |    
|                                               | Principal payments on mortgages and notes payable                                                  |                                                                                                 |                                                          |    |          |        |          |      |          |        |          |     |     |        |   |    |    
|                                               | Purchase of treasury stock                                                                         |                                                                                                 |                                                          |    |          |        |          |      |          |        |          |     |     |        |   |    |    
|                                               | Contributions from partners                                                                        |                                                                                                 |                                                          |    |          |        |          |      |          |        |          |     |     |        |   |    |    
|                                               | Distributions to partners                                                                          |                                                                                                 |                                                          |    |          |        |          |      |          |        |          |     |     |        |   |    |    
|                                               |                                                                                                    |                                                                                                 |                                                          |     |         
|                                               |                                                                                                    |                                                                                                 | Net cash provided
by (used in)
financing
activities      |     |          |       |          |       |          |       |          |      |     |       |   |     |     |    |  
|                                               |                                                                                                    |                                                                                                 |                                                          |     |         
|Effect of exchange rate changes on cash        |                                                                                                    |                                                                                                 |                                                         |     |          |        |         |       |          |        |         |      |     |        |  |    
|                                               |                                                                                                    |                                                                                                 |                                                          |     |         
|Net change in cash                             |                                                                                                    |                                                                                                 |                                                         |     |          |        |         |       |          |        |         |      |     |        |  |    
|Cash and cash equivalents, beginning of period |                                                                                                    |                                                                                                 |                                                         |     |          |        |         |       |          |        |         |      |     |        |  |    
|                                               |                                                                                                    |                                                                                                 |                                                          |     |         
|Cash and cash equivalents, end of period       |                                                                                                    |                                                                                                 |                                                         |     |          |        |         |       |          |        |         |      |     |        |  |    
|                                               |                                                                                                    |                                                                                                 |                                                          |     |         





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidated Statement of Cash Flows
For the six months ended June 30, 2001
(in thousands)

|                                               |                                                                                                    |                                                                       |                                                          |     |          |      |          |     |          |      |          |      |          |      |          |   |   |   |   |       |       |        |   |     |     |      |  
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------- | -------------------------------------------------------- | --- | -------- | ---- | -------- | --- | -------- | ---- | -------- | ---- | -------- | ---- | -------- | - | - | - | - | ----- | ----- | ------ | - | --- | --- | ---- | -
|                                               |                                                                                                    |                                                                       |                                                          |     |          |      |          |     |          |      |          |      |          |      |          |   |   |   |   |       | Old   |        |   |     |    
|                                               |                                                                                                    |                                                                       |                                                          |     | MeriStar |      | MeriStar |     | MeriStar |      | MeriStar |      | MeriStar |      | MeriStar
|                                               |                                                                                                    |                                                                       |                                                          |     | Sub 7F,  |      | Sub 5L,  |     | Sub 3C,  |      | Sub 5R,  |      | Sub 8A,  |      | Sub 6D, 
|                                               |                                                                                                    |                                                                       |                                                          |     | LLC      |      | LLC      |     | LLC      |      | LLC      |      | LLC      |      | LLC     
|                                               |                                                                                                    |                                                                      
|Cash flows from operating activities:          |                                                                                                    |                                                                       |                                                          |     |          |      |          |     |          |      |          |      |          |      |          |   |   |   |   |       |       |        |   |    
|                                               | Net Income (loss)                                                                                  |                                                                       |                                                          | 220 |          |      |          | 844 |          |      |          | 546  |          |      |          |  |   |   |   | (823  | )     |        |   | 828 |    
|                                               | Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities: |                                                                       |                                                          |     |          |      |          |     |          |      |          |      |          |      |          |   |   |   |   |       |       |        |   |     |    
|                                               |                                                                                                    | Depreciation and amortization                                         |                                                          |     | 230      |      |          |     | 61       |      |          |      | 343      |      |          |   |  |   |   |       | 89    |        |   |     | 253 |     
|                                               |                                                                                                    | Equity in earnings Loss on sale of assets, net
of tax                 |                                                          |     |         |      |          |     |         |      |          |      |         |      |          |   |  |   |   |       | 1,081 |        |   |     |    |     
|                                               |                                                                                                    | Write down of investment in STS Hotel Net                             |                                                          |     |         |      |          |     |         |      |          |      |         |      |          |   |  |   |   |       |      |        |   |     |    |     
|                                               |                                                                                                    | Extraordinary loss on early extinguishment of
debt, before tax effect |                                                          |     |         |      |          |     |         |      |          |      |         |      |          |   |  |   |   |       |      |        |   |     |    |     
|                                               |                                                                                                    | Minority interests                                                    |                                                          |     |         |      |          |     |         |      |          |      |         |      |          |   |  |   |   |       |      |        |   |     |    |     
|                                               |                                                                                                    | Amortization of unearned stock based
compensation                     |                                                          |     |         |      |          |     |         |      |          |      |         |      |          |   |  |   |   |       |      |        |   |     |    |     
|                                               |                                                                                                    | Interest rate swaps marked to fair value
Deferred income taxes        |                                                          |     |         |      |          |     |         |      |          |      |         |      |          |   |  |   |   |       |      |        |   |     |    |     
|                                               |                                                                                                    | Changes in operating assets and liabilities:                          |                                                          |     |          |      |          |     |          |      |          |      |          |      |          |   |   |   |   |       |       |        |   |     |     |     
|                                               |                                                                                                    |                                                                       | Accounts receivable, net                                 |     |          | (26  | )        |     |          |     |          |      |          | 10   |          |   |   |  |   |       |       | (31    | ) |     |     | (306 | )
|                                               |                                                                                                    |                                                                       | Prepaid expenses and other                               |     |          |     |          |     |          |     |          |      |          | (3   | )        |   |   |  |   |       |       |       |   |     |     | (5   | )
|                                               |                                                                                                    |                                                                       | Due from/to Meristar Hotels                              |     |          | (2   | )        |     |          | 32   |          |      |          |     |          |   |   |  |   |       |       |       |   |     |     | 123  |  
|                                               |                                                                                                    |                                                                       | Accounts payable, accrued
expenses and other liabilities |     |          | 26   |          |     |          | (17  | )        |      |          | 16   |          |   |   |  |   |       |       | 13     |   |     |     | 65   |  
|                                               |                                                                                                    |                                                                       | Accrued interest                                         |     |          |     |          |     |          |     |          |      |          |     |          |   |   |  |   |       |       |       |   |     |     |     |  
|                                               |                                                                                                    |                                                                       | Due from subsidiaries                                    |     |          | (414 | )        |     |          | (828 | )        |      |          | (732 | )        |   |   |  |   |       |       | (8,777 | ) |     |     | (891 | )
|                                               |                                                                                                    |                                                                       | Income taxes payable                                     |     |          |     |          |     |          |     |          |      |          |     |          |   |   |  |   |       |       |       |   |     |     |     |  
|                                               |                                                                                                    |                                                                      
|                                               |                                                                                                    |                                                                       | Net cash provided by (used
in) operating activities      |     |          | 34   |          |     |          | 92   |          |      |          | 180  |          |   |   |  |   |       |       | (8,448 | ) |     |     | 66   |  
|                                               |                                                                                                    |                                                                      
|Cash flows from investing activities:          |                                                                                                    |                                                                       |                                                          |     |          |      |          |     |          |      |          |      |          |      |          |   |   |   |   |       |       |        |   |    
|                                               | Investment in hotel properties, net                                                                |                                                                       |                                                          | (34 | )        |      |          | (92 | )        |      |          | (180 | )        |      |          |  |   |   |   | 1,175 |       |        |   | (66 | )  
|                                               | Proceeds from disposition of assets                                                                |                                                                       |                                                          |    |          |      |          |    |          |      |          |     |          |      |          |  |   |   |   | 7,274 |       |        |   |    |    
|                                               | Hotel operating cash received in connection with lease conversions                                 |                                                                       |                                                          |    |          |      |          |    |          |      |          |     |          |      |          |  |   |   |   |      |       |        |   |    |    
|                                               | Note receivable                                                                                    |                                                                       |                                                          |    |          |      |          |    |          |      |          |     |          |      |          |  |   |   |   |      |       |        |   |    |    
|                                               | Change in restricted cash                                                                          |                                                                       |                                                          |    |          |      |          |    |          |      |          |     |          |      |          |  |   |   |   |      |       |        |   |    |    
|                                               |                                                                                                    |                                                                      
|                                               |                                                                                                    |                                                                       | Net cash provided by (used
in) investing activities      |     |          | (34  | )        |     |          | (92  | )        |      |          | (180 | )        |   |   |  |   |       |       | 8,449  |   |     |     | (66  | )
|                                               |                                                                                                    |                                                                      
|Cash flows from financing activities:          |                                                                                                    |                                                                       |                                                          |     |          |      |          |     |          |      |          |      |          |      |          |   |   |   |   |       |       |        |   |    
|                                               | Deferred financing costs                                                                           |                                                                       |                                                          |    |          |      |          |    |          |      |          |     |          |      |          |  |   |   |   |      |       |        |   |    |    
|                                               | Proceeds from mortgages and notes payable                                                          |                                                                       |                                                          |    |          |      |          |    |          |      |          |     |          |      |          |  |   |   |   |      |       |        |   |    |    
|                                               | Principal payments on mortgages and notes payable                                                  |                                                                       |                                                          |    |          |      |          |    |          |      |          |     |          |      |          |  |   |   |   |      |       |        |   |    |    
|                                               | Purchase of treasury stock                                                                         |                                                                       |                                                          |    |          |      |          |    |          |      |          |     |          |      |          |  |   |   |   |      |       |        |   |    |    
|                                               | Contributions from partners                                                                        |                                                                       |                                                          |    |          |      |          |    |          |      |          |     |          |      |          |  |   |   |   |      |       |        |   |    |    
|                                               | Distributions to partners                                                                          |                                                                       |                                                          |    |          |      |          |    |          |      |          |     |          |      |          |  |   |   |   |      |       |        |   |    |    
|                                               |                                                                                                    |                                                                      
|                                               |                                                                                                    |                                                                       | Net cash provided by (used
in) financing activities      |     |          |     |          |     |          |     |          |      |          |     |          |   |   |  |   |       |       |       |   |     |     |     |  
|                                               |                                                                                                    |                                                                      
|Effect of exchange rate changes on cash        |                                                                                                    |                                                                       |                                                         |     |          |      |         |     |          |      |         |      |          |      |         |   |   |   |  |       |       |        |  |    
|                                               |                                                                                                    |                                                                      
|Net change in cash                             |                                                                                                    |                                                                       |                                                         |     |          |      |         |     |          |      |         |      |          |      |         |   |   |   |  |       |       |        |  |    
|Cash and cash equivalents, beginning of period |                                                                                                    |                                                                       |                                                         |     |          |      |         |     |          |      |         |      |          |      |         |   |   |   |  |       |       |        |  |    
|                                               |                                                                                                    |                                                                      
|Cash and cash equivalents, end of period       |                                                                                                    |                                                                       |                                                         |     |          |      |         |     |          |      |         |      |          |      |         |   |   |   |  |       |       |        |  |    
|                                               |                                                                                                    |                                                                      





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidated Statement of Cash Flows
For the six months ended June 30, 2001
(in thousands)

|                                               |                                                                    |                                             |                                                                       |                                                          |   |          |      |          |   |          |      |          |   |          |     |          |   |          |      |          |   |     |      |     |   |     |     |      |   |     |      |     |   |     |     |  
|---------------------------------------------- | ------------------------------------------------------------------ | ------------------------------------------- | --------------------------------------------------------------------- | -------------------------------------------------------- | - | -------- | ---- | -------- | - | -------- | ---- | -------- | - | -------- | --- | -------- | - | -------- | ---- | -------- | - | --- | ---- | --- | - | --- | --- | ---- | - | --- | ---- | --- | - | --- | --- | -
|                                               |                                                                    |                                             |                                                                       |                                                          |   |          |      |          |   |          |      |          |   |          |     |          |   |          |      |          |   |     |      |     |   |     |     |      |   |     |      |     |   |    
|                                               |                                                                    |                                             |                                                                       |                                                          |   | MeriStar |      | MeriStar |   | MeriStar |      | MeriStar |   | MeriStar |     | MeriStar |   | MeriStar |      | MeriStar
|                                               |                                                                    |                                             |                                                                       |                                                          |   | Sub 6E,  |      | Sub 4E,  |   | Sub 1B,  |      | Sub 5F,  |   | Sub 6G,  |     | Sub 8C,  |   | Sub 4C,  |      | Sub 4H, 
|                                               |                                                                    |                                             |                                                                       |                                                          |   | LLC      |      | L.P.     |   | LLC      |      | L.P.     |   | LLC      |     | LLC      |   | L.P      |      | L.P.    
|                                               |                                                                    |                                            
|Cash flows from operating activities:          |                                                                    |                                             |                                                                       |                                                          |   |          |      |          |   |          |      |          |   |          |     |          |   |          |      |          |   |     |      |     |   |     |     |      |   |     |      |    
|                                              
|                                              
|                                              
|                                              
|                                               | Net Income (loss)                                                  |                                             |                                                                       | 2,239                                                    |   |          |      | 342      |   |          |      | 1,237    |   |          |     | 1,142    |   |          |      | 1,057    |   |     |      | 295 |   |     |     | (50  | ) |     |      | (94 | )
|                                              
|                                              
|                                              
|                                              
|                                               | Adjustments to reconcile net income (loss) to net cash             |                                             |                                                                       |                                                          |   |          |      |          |   |          |      |          |   |          |     |          |   |          |      |          |   |     |      |     |   |     |     |      |   |     |      |     |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    | provided by (used in) operating activities: |                                                                       |                                                          |   |          |      |          |   |          |      |          |   |          |     |          |   |          |      |          |   |     |      |     |   |     |     |      |   |     |      |     |   |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             | Depreciation and amortization                                         |                                                          |   | 826      |      |          |   | 456      |      |          |   | 306      |     |          |   | 524      |      |          |   | 370 |      |     |   | 649 |     |      |   | 352 |      |     |   | 266 |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             | Equity in earnings
Loss on sale of assets, net of tax                 |                                                          |   |         |      |          |   |         |      |          |   |         |     |          |   |         |      |          |   |    |      |     |   |    |     |      |   |    |      |     |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             | Write down of investment in STS Hotel Net                             |                                                          |   |         |      |          |   |         |      |          |   |         |     |          |   |         |      |          |   |    |      |     |   |    |     |      |   |    |      |     |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             | Extraordinary loss on early extinguishment of debt, before tax effect |                                                          |   |         |      |          |   |         |      |          |   |         |     |          |   |         |      |          |   |    |      |     |   |    |     |      |   |    |      |     |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             | Minority interests                                                    |                                                          |   |         |      |          |   |         |      |          |   |         |     |          |   |         |      |          |   |    |      |     |   |    |     |      |   |    |      |     |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             | Amortization of unearned stock based compensation                     |                                                          |   |         |      |          |   |         |      |          |   |         |     |          |   |         |      |          |   |    |      |     |   |    |     |      |   |    |      |     |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             | Interest rate swaps marked to fair value
Deferred income taxes        |                                                          |   |         |      |          |   |         |      |          |   |         |     |          |   |         |      |          |   |    |      |     |   |    |     |      |   |    |      |     |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             | Changes in operating assets and liabilities:                          |                                                          |   |          |      |          |   |          |      |          |   |          |     |          |   |          |      |          |   |     |      |     |   |     |     |      |   |     |      |     |   |     |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             |                                                                       | Accounts receivable, net                                 |   |          | 34   |          |   |          | (19  | )        |   |          | 16  |          |   |          | (25  | )        |   |     | 16   |     |   |     | 8   |      |   |     | (47  | )   |   |     |    |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             |                                                                       | Prepaid expenses and other                               |   |          |     |          |   |          |     |          |   |          | (13 | )        |   |          | (11  | )        |   |     | (6   | )   |   |     |    |      |   |     | (6   | )   |   |     | (2  | )
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             |                                                                       | Due from/to Meristar Hotels                              |   |          |     |          |   |          | (75  | )        |   |          |    |          |   |          |     |          |   |     | 5    |     |   |     |    |      |   |     |     |     |   |     | (14 | )
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             |                                                                       | Accounts payable, accrued expenses and other liabilities |   |          | 42   |          |   |          | (184 | )        |   |          | 18  |          |   |          | (3   | )        |   |     | 191  |     |   |     | 69  |      |   |     | 21   |     |   |     | (69 | )
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             |                                                                       | Accrued interest                                         |   |          |     |          |   |          |     |          |   |          |    |          |   |          |     |          |   |     |     |     |   |     |    |      |   |     |     |     |   |     |    |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             |                                                                       | Due from subsidiaries                                    |   | (2,535   | )    | (248     | ) | (1,517   | )    | (1,454   | ) | (1,468   | )   | (937     | ) | (149     | )    | 1       
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             |                                                                       | Income taxes payable                                     |   |          |     |          |   |          |     |          |   |          |    |          |   |          |     |          |   |     |     |     |   |     |    |      |   |     |     |     |   |     |    |  
|                                               |                                                                    |                                            
|                                               |                                                                    |                                             |                                                                       | Net cash provided by (used in) operating activities      |   | 606      |      | 271      |   | 46       |      | 173      |   | 166      |     | 84       |   | 120      |      | 88      
|                                               |                                                                    |                                            
|Cash flows from investing activities:          |                                                                    |                                             |                                                                       |                                                          |   |          |      |          |   |          |      |          |   |          |     |          |   |          |      |          |   |     |      |     |   |     |     |      |   |     |      |    
|                                              
|                                              
|                                              
|                                              
|                                               | Investment in hotel properties, net                                |                                             |                                                                       | (606                                                     | ) |          |      | (271     | ) |          |      | (46      | ) |          |     | (173     | ) |          |      | (166     | ) |     |      | (84 | ) |     |     | (120 | ) |     |      | (88 | )
|                                              
|                                              
|                                              
|                                              
|                                               | Proceeds from disposition of assets                                |                                             |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |          |     |         |   |          |      |         |   |     |      |    |   |     |     |     |   |     |      |    |  
|                                              
|                                              
|                                              
|                                              
|                                               | Hotel operating cash received in connection with lease conversions |                                             |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |          |     |         |   |          |      |         |   |     |      |    |   |     |     |     |   |     |      |    |  
|                                              
|                                              
|                                              
|                                              
|                                               | Note receivable                                                    |                                             |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |          |     |         |   |          |      |         |   |     |      |    |   |     |     |     |   |     |      |    |  
|                                              
|                                              
|                                              
|                                              
|                                               | Change in restricted cash                                          |                                             |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |          |     |         |   |          |      |         |   |     |      |    |   |     |     |     |   |     |      |    |  
|                                               |                                                                    |                                            
|                                               |                                                                    |                                             |                                                                       | Net cash provided by (used in) investing activities      |   |          | (606 | )        |   |          | (271 | )        |   |          | (46 | )        |   |          | (173 | )        |   |     | (166 | )   |   |     | (84 | )    |   |     | (120 | )   |   |     | (88 | )
|                                               |                                                                    |                                            
|Cash flows from financing activities:          |                                                                    |                                             |                                                                       |                                                          |   |          |      |          |   |          |      |          |   |          |     |          |   |          |      |          |   |     |      |     |   |     |     |      |   |     |      |    
|                                              
|                                              
|                                              
|                                              
|                                               | Deferred financing costs                                           |                                             |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |          |     |         |   |          |      |         |   |     |      |    |   |     |     |     |   |     |      |    |  
|                                              
|                                              
|                                              
|                                              
|                                               | Proceeds from mortgages and notes payable                          |                                             |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |          |     |         |   |          |      |         |   |     |      |    |   |     |     |     |   |     |      |    |  
|                                              
|                                              
|                                              
|                                              
|                                               | Principal payments on mortgages and notes payable                  |                                             |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |          |     |         |   |          |      |         |   |     |      |    |   |     |     |     |   |     |      |    |  
|                                              
|                                              
|                                              
|                                              
|                                               | Purchase of treasury stock                                         |                                             |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |          |     |         |   |          |      |         |   |     |      |    |   |     |     |     |   |     |      |    |  
|                                              
|                                              
|                                              
|                                              
|                                               | Contributions from partners                                        |                                             |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |          |     |         |   |          |      |         |   |     |      |    |   |     |     |     |   |     |      |    |  
|                                              
|                                              
|                                              
|                                              
|                                               | Distributions to partners                                          |                                             |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |          |     |         |   |          |      |         |   |     |      |    |   |     |     |     |   |     |      |    |  
|                                               |                                                                    |                                            
|                                               |                                                                    |                                             |                                                                       | Net cash provided by (used in) financing activities      |   |          |     |          |   |          |     |          |   |          |    |          |   |          |     |          |   |     |     |     |   |     |    |      |   |     |     |     |   |     |    |  
|                                               |                                                                    |                                            
|Effect of exchange rate changes on cash        |                                                                    |                                             |                                                                      |                                                          |   |          |     |          |   |          |     |          |   |          |    |          |   |          |     |          |   |     |     |     |   |     |    |      |   |     |     |    
|                                               |                                                                    |                                            
|Net change in cash                             |                                                                    |                                             |                                                                      |                                                          |   |          |     |          |   |          |     |          |   |          |    |          |   |          |     |          |   |     |     |     |   |     |    |      |   |     |     |    
|                                              
|                                              
|                                              
|                                              
|Cash and cash equivalents, beginning of period |                                                                    |                                             |                                                                      |                                                          |   |          |     |          |   |          |     |          |   |          |    |          |   |          |     |          |   |     |     |     |   |     |    |      |   |     |     |    
|                                               |                                                                    |                                            
|Cash and cash equivalents, end of period       |                                                                    |                                             |                                                                      |                                                          |   |          |     |          |   |          |     |          |   |          |    |          |   |          |     |          |   |     |     |     |   |     |    |      |   |     |     |    
|                                               |                                                                    |                                            





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidated Statement of Cash Flows
For the six months ended June 30, 2001
(in thousands)

|                                               |                                                                    |                                             |                                                                       |                                                          |   |          |      |          |   |          |      |          |   |          |      |          |   |          |      |          |   |     |      |       |   |     |      |      |   |     |     |     |   |     |     |  
|---------------------------------------------- | ------------------------------------------------------------------ | ------------------------------------------- | --------------------------------------------------------------------- | -------------------------------------------------------- | - | -------- | ---- | -------- | - | -------- | ---- | -------- | - | -------- | ---- | -------- | - | -------- | ---- | -------- | - | --- | ---- | ----- | - | --- | ---- | ---- | - | --- | --- | --- | - | --- | --- | -
|                                               |                                                                    |                                             |                                                                       |                                                          |   |          |      |          |   |          |      |          |   |          |      |          |   |          |      |          |   |     |      |       |   |     |      |      |   |     |     |     |   |    
|                                               |                                                                    |                                             |                                                                       |                                                          |   | MeriStar |      | MeriStar |   | MeriStar |      | MeriStar |   | MeriStar |      | MeriStar |   | MeriStar |      | MeriStar
|                                               |                                                                    |                                             |                                                                       |                                                          |   | Sub 7E,  |      | Sub 3D,  |   | Sub 1A,  |      | Sub 5E,  |   | Sub 7A   |      | Sub 6K,  |   | Sub 2B,  |      | Sub 3A, 
|                                               |                                                                    |                                             |                                                                       |                                                          |   | LLC      |      | LLC      |   | LLC      |      | LLC      |   |          |      | LLC      |   | LLC      |      | LLC     
|                                               |                                                                    |                                            
|Cash flows from operating activities:          |                                                                    |                                             |                                                                       |                                                          |   |          |      |          |   |          |      |          |   |          |      |          |   |          |      |          |   |     |      |       |   |     |      |      |   |     |     |    
|                                              
|                                              
|                                              
|                                              
|                                               | Net Income (loss)                                                  |                                             |                                                                       | 377                                                      |   |          |      | 598      |   |          |      | 737      |   |          |      | 1,981    |   |          |      | 499      |   |     |      | 1,475 |   |     |      | (177 | ) |     |     | 179 |  
|                                              
|                                              
|                                              
|                                              
|                                               | Adjustments to reconcile net income (loss) to net cash             |                                             |                                                                       |                                                          |   |          |      |          |   |          |      |          |   |          |      |          |   |          |      |          |   |     |      |       |   |     |      |      |   |     |     |     |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    | provided by (used in) operating activities: |                                                                       |                                                          |   |          |      |          |   |          |      |          |   |          |      |          |   |          |      |          |   |     |      |       |   |     |      |      |   |     |     |     |   |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             | Depreciation and amortization                                         |                                                          |   | 299      |      |          |   | 449      |      |          |   | 233      |      |          |   | 914      |      |          |   | 201 |      |       |   | 370 |      |      |   | 192 |     |     |   | 170 |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             | Equity in earnings                                                    |                                                          |   |         |      |          |   |         |      |          |   |         |      |          |   |         |      |          |   |    |      |       |   |    |      |      |   |    |     |     |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             | Loss on sale of assets, net of tax                                    |                                                          |   |         |      |          |   |         |      |          |   |         |      |          |   |         |      |          |   |    |      |       |   |    |      |      |   |    |     |     |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             | Write down of investment in STS Hotel Net                             |                                                          |   |         |      |          |   |         |      |          |   |         |      |          |   |         |      |          |   |    |      |       |   |    |      |      |   |    |     |     |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             | Extraordinary loss on early extinguishment of debt, before tax effect |                                                          |   |         |      |          |   |         |      |          |   |         |      |          |   |         |      |          |   |    |      |       |   |    |      |      |   |    |     |     |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             | Minority interests                                                    |                                                          |   |         |      |          |   |         |      |          |   |         |      |          |   |         |      |          |   |    |      |       |   |    |      |      |   |    |     |     |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             | Amortization of unearned stock based compensation                     |                                                          |   |         |      |          |   |         |      |          |   |         |      |          |   |         |      |          |   |    |      |       |   |    |      |      |   |    |     |     |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             | Interest rate swaps marked to fair value                              |                                                          |   |          |      |          |   |          |      |          |   |          |      |          |   |          |      |          |   |     |      |       |   |     |      |      |   |     |     |     |   |     |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             | Deferred income taxes                                                 |                                                          |   |         |      |          |   |         |      |          |   |         |      |          |   |         |      |          |   |    |      |       |   |    |      |      |   |    |     |     |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             | Changes in operating assets and liabilities:                          |                                                          |   |          |      |          |   |          |      |          |   |          |      |          |   |          |      |          |   |     |      |       |   |     |      |      |   |     |     |     |   |     |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             |                                                                       | Accounts receivable, net                                 |   |          | 53   |          |   |          | (19  | )        |   |          | 40   |          |   |          | 18   |          |   |     | (13  | )     |   |     | (18  | )    |   |     | 15  |     |   |     | (35 | )
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             |                                                                       | Prepaid expenses and other                               |   |          | 44   |          |   |          |     |          |   |          |     |          |   |          | (15  | )        |   |     | (4   | )     |   |     | (1   | )    |   |     |    |     |   |     |    |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             |                                                                       | Due from/to Meristar Hotels                              |   |          |     |          |   |          |     |          |   |          |     |          |   |          | (11  | )        |   |     |     |       |   |     |     |      |   |     | (31 | )   |   |     | (1  | )
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             |                                                                       | Accounts payable, accrued expenses and other liabilities |   |          | 67   |          |   |          | 138  |          |   |          | (107 | )        |   |          | 450  |          |   |     | (71  | )     |   |     | 106  |      |   |     |    |     |   |     | (98 | )
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             |                                                                       | Accrued interest                                         |   |          |     |          |   |          |     |          |   |          |     |          |   |          |     |          |   |     |     |       |   |     |     |      |   |     |    |     |   |     |    |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             |                                                                       | Due from subsidiaries                                    |   | (726     | )    | (874     | ) | (833     | )    | (3,031   | ) | (414     | )    | (1,700   | ) | 14       |      | (174     | )
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             |                                                                       | Income taxes payable                                     |   |          |     |          |   |          |     |          |   |          |     |          |   |          |     |          |   |     |     |       |   |     |     |      |   |     |    |     |   |     |    |  
|                                               |                                                                    |                                            
|                                               |                                                                    |                                             |                                                                       | Net cash provided by (used in) operating activities      |   | 114      |      | 292      |   | 70       |      | 305      |   | 198      |      | 232      |   | 13       |      | 41      
|                                               |                                                                    |                                            
|Cash flows from investing activities:          |                                                                    |                                             |                                                                       |                                                          |   |          |      |          |   |          |      |          |   |          |      |          |   |          |      |          |   |     |      |       |   |     |      |      |   |     |     |    
|                                              
|                                              
|                                              
|                                              
|                                               | Investment in hotel properties, net                                |                                             |                                                                       | (114                                                     | ) |          |      | (292     | ) |          |      | (70      | ) |          |      | (305     | ) |          |      | (198     | ) |     |      | (232  | ) |     |      | 9    |   |     |     | (41 | )
|                                              
|                                              
|                                              
|                                              
|                                               | Proceeds from disposition of assets                                |                                             |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |          |      |         |   |          |      |         |   |     |      |      |   |     |      |     |   |     |     |    |  
|                                              
|                                              
|                                              
|                                              
|                                               | Hotel operating cash received in connection with lease conversions |                                             |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |          |      |         |   |          |      |         |   |     |      |      |   |     |      |     |   |     |     |    |  
|                                              
|                                              
|                                              
|                                              
|                                               | Note receivable                                                    |                                             |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |          |      |         |   |          |      |         |   |     |      |      |   |     |      |     |   |     |     |    |  
|                                              
|                                              
|                                              
|                                              
|                                               | Change in restricted cash                                          |                                             |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |          |      |         |   |          |      |         |   |     |      |      |   |     |      |     |   |     |     |    |  
|                                               |                                                                    |                                            
|                                               |                                                                    |                                             |                                                                       | Net cash provided by (used in) investing activities      |   |          | (114 | )        |   |          | (292 | )        |   |          | (70  | )        |   |          | (305 | )        |   |     | (198 | )     |   |     | (232 | )    |   |     | 9   |     |   |     | (41 | )
|                                               |                                                                    |                                            
|Cash flows from financing activities:          |                                                                    |                                             |                                                                       |                                                          |   |          |      |          |   |          |      |          |   |          |      |          |   |          |      |          |   |     |      |       |   |     |      |      |   |     |     |    
|                                              
|                                              
|                                              
|                                              
|                                               | Deferred financing costs                                           |                                             |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |          |      |         |   |          |      |         |   |     |      |      |   |     |      |     |   |     |     |    |  
|                                              
|                                              
|                                              
|                                              
|                                               | Proceeds from mortgages and notes payable                          |                                             |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |          |      |         |   |          |      |         |   |     |      |      |   |     |      | (59  | ) |     |     |    |  
|                                              
|                                              
|                                              
|                                              
|                                               | Principal payments on mortgages and notes payable                  |                                             |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |          |      |         |   |          |      |         |   |     |      |      |   |     |      |     |   |     |     |    |  
|                                              
|                                              
|                                              
|                                              
|                                               | Purchase of treasury stock                                         |                                             |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |          |      |         |   |          |      |         |   |     |      |      |   |     |      |     |   |     |     |    |  
|                                              
|                                              
|                                              
|                                              
|                                               | Contributions from partners                                        |                                             |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |          |      |         |   |          |      |         |   |     |      |      |   |     |      |     |   |     |     |    |  
|                                              
|                                              
|                                              
|                                              
|                                               | Distributions to partners                                          |                                             |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |          |      |         |   |          |      |         |   |     |      |      |   |     |      |     |   |     |     |    |  
|                                               |                                                                    |                                            
|                                               |                                                                    |                                             |                                                                       | Net cash provided by (used in) financing activities      |   |          |     |          |   |          |     |          |   |          |     |          |   |          |     |          |   |     |     |       |   |     |     |      |   |     | (59 | )   |   |     |    |  
|                                               |                                                                    |                                            
|Effect of exchange rate changes on cash        |                                                                    |                                             |                                                                      |                                                          |   |          |     |          |   |          |     |          |   |          |     |          |   |          |     |          |   |     |     |       |   |     | 37   |      |   |     |    |    
|                                               |                                                                    |                                            
|Net change in cash                             |                                                                    |                                             |                                                                      |                                                          |   |          |     |          |   |          |     |          |   |          |     |          |   |          |     |          |   |     |     |       |   |     |     |      |   |     |    |    
|                                              
|                                              
|                                              
|                                              
|Cash and cash equivalents, beginning of period |                                                                    |                                             |                                                                      |                                                          |   |          |     |          |   |          |     |          |   |          |     |          |   |          |     |          |   |     |     |       |   |     |     |      |   |     |    |    
|                                               |                                                                    |                                            
|Cash and cash equivalents, end of period       |                                                                    |                                             |                                                                      |                                                          |   |          |     |          |   |          |     |          |   |          |     |          |   |          |     |          |   |     |     |       |   |     |     |      |   |     |    |    
|                                               |                                                                    |                                            





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidated Statement of Cash Flows
For the six months ended June 30, 2001
(in thousands)

|                                               |                                                                                                    |  |                                                                       |                                                          |   |          |      |          |   |          |      |          |   |             |      |          |   |          |     |          |   |    |     |       |   |     |      |       |   |     |      |       |   |       |      |  
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- |  | --------------------------------------------------------------------- | -------------------------------------------------------- | - | -------- | ---- | -------- | - | -------- | ---- | -------- | - | ----------- | ---- | -------- | - | -------- | --- | -------- | - | -- | --- | ----- | - | --- | ---- | ----- | - | --- | ---- | ----- | - | ----- | ---- | -
|                                               |                                                                                                    |  |                                                                       |                                                          |   | MeriStar |      | MeriStar |   | MeriStar |      | MeriStar |   | MDV         |      | MeriStar |   | MeriStar |     | MeriStar
|                                               |                                                                                                    |  |                                                                       |                                                          |   | Sub
4A,  |      | Sub 4D,  |   | Sub 2A,  |      | Sub 6L,  |   | Limited     |      | Sub 5C,  |   | Sub 6J,  |     | Sub 1D, 
|                                               |                                                                                                    |  |                                                                       |                                                          |   | LLC      |      | LLC      |   | LLC      |      | LLC      |   | Partnership |      | LLC      |   | LLC      |     | L.P.    
|                                               |                                                                                                    | 
|Cash flows from operating activities:          |                                                                                                    |  |                                                                       |                                                          |   |          |      |          |   |          |      |          |   |             |      |          |   |          |     |          |   |    |     |       |   |     |      |       |   |     |      |      
|                                              
|                                              
|                                              
|                                              
|                                               | Net Income (loss)                                                                                  |  |                                                                       | 550                                                      |   |          |      | 126      |   |          |      | (248     | ) |             |      | 385      |   |          |     | 252      |   |    |     | 1,123 |   |     |      | 1,055 |   |     |      | 1,907 |  
|                                              
|                                              
|                                              
|                                              
|                                               | Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |  |                                                                       |                                                          |   |          |      |          |   |          |      |          |   |             |      |          |   |          |     |          |   |    |     |       |   |     |      |       |   |     |      |       |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Depreciation and amortization                                         |                                                          |   |         |      |          |   | 142      |      |          |   | 158         |      |          |   | 439      |     |          |   | 60 |     |       |   | 289 |      |       |   | 298 |      |       |   | 1,083 |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Equity in earnings                                                    |                                                          |   |         |      |          |   |         |      |          |   |            |      |          |   |         |     |          |   |   |     |       |   |    |      |       |   |    |      |       |   |      |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Loss on sale of assets, net of tax                                    |                                                          |   |         |      |          |   |         |      |          |   |            |      |          |   |         |     |          |   |   |     |       |   |    |      |       |   |    |      |       |   |      |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Write down of investment in STS Hotel Net                             |                                                          |   |         |      |          |   |         |      |          |   |            |      |          |   |         |     |          |   |   |     |       |   |    |      |       |   |    |      |       |   |      |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Extraordinary loss on early extinguishment of debt, before tax effect |                                                          |   |         |      |          |   |         |      |          |   |            |      |          |   |         |     |          |   |   |     |       |   |    |      |       |   |    |      |       |   |      |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Minority interests                                                    |                                                          |   |         |      |          |   |         |      |          |   |            |      |          |   |         |     |          |   |   |     |       |   |    |      |       |   |    |      |       |   |      |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Amortization of unearned stock based compensation                     |                                                          |   |         |      |          |   |         |      |          |   |            |      |          |   |         |     |          |   |   |     |       |   |    |      |       |   |    |      |       |   |      |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Interest rate swaps marked to fair value                              |                                                          |   |          |      |          |   |          |      |          |   |             |      |          |   |          |     |          |   |    |     |       |   |     |      |       |   |     |      |       |   |       |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Deferred income taxes                                                 |                                                          |   |         |      |          |   |         |      |          |   |            |      |          |   |         |     |          |   |   |     |       |   |    |      |       |   |    |      |       |   |      |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Changes in operating assets and liabilities:                          |                                                          |   |          |      |          |   |          |      |          |   |             |      |          |   |          |     |          |   |    |     |       |   |     |      |       |   |     |      |       |   |       |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  |                                                                       | Accounts receivable, net                                 |   |          | (4   | )        |   |          | (7   | )        |   |             | 15   |          |   |          | 26  |          |   |    | 26  |       |   |     | (16  | )     |   |     | 19   |       |   |       | 30   |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  |                                                                       | Prepaid expenses and other                               |   |          |     |          |   |          |     |          |   |             | (1   | )        |   |          | 1   |          |   |    | 1   |       |   |     | (31  | )     |   |     | (6   | )     |   |       | (20  | )
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  |                                                                       | Due from/to Meristar Hotels                              |   |          | (2   | )        |   |          |     |          |   |             |     |          |   |          |    |          |   |    |    |       |   |     |     |       |   |     | (1   | )     |   |       | (32  | )
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  |                                                                       | Accounts payable, accrued expenses and other liabilities |   |          | (88  | )        |   |          | 68   |          |   |             | 96   |          |   |          | (10 | )        |   |    | (10 | )     |   |     | (723 | )     |   |     | (27  | )     |   |       | (13  | )
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  |                                                                       | Accrued interest                                         |   |          |     |          |   |          |     |          |   |             |     |          |   |          |    |          |   |    |    |       |   |     |     |       |   |     |     |       |   |       | 27   |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  |                                                                       | Due from subsidiaries                                    |   | (302     | )    | (106     | ) | 140      |      | (758     | ) | (305        | )    | (165     | ) | (1,154   | )   | (2,757   | )
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  |                                                                       | Income taxes payable                                     |   |          |     |          |   |          |     |          |   |             |     |          |   |          |    |          |   |    |    |       |   |     |     |       |   |     |     |       |   |       |     |  
|                                               |                                                                                                    | 
|                                               |                                                                                                    |  |                                                                       | Net cash provided by (used in) operating activities      |   | 153      |      | 223      |   | 160      |      | 82       |   | 23          |      | 478      |   | 183      |     | 225      |  
|                                               |                                                                                                    | 
|Cash flows from investing activities:          |                                                                                                    |  |                                                                       |                                                          |   |          |      |          |   |          |      |          |   |             |      |          |   |          |     |          |   |    |     |       |   |     |      |       |   |     |      |      
|                                              
|                                              
|                                              
|                                              
|                                               | Investment in hotel properties, net                                                                |  |                                                                       | (153                                                     | ) |          |      | (223     | ) |          |      | (101     | ) |             |      | (82      | ) |          |     | (23      | ) |    |     | (478  | ) |     |      | (183  | ) |     |      | (225  | )
|                                              
|                                              
|                                              
|                                              
|                                               | Proceeds from disposition of assets                                                                |  |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |             |      |         |   |          |     |         |   |    |     |      |   |     |      |      |   |     |      |      |  
|                                              
|                                              
|                                              
|                                              
|                                               | Hotel operating cash received in connection with lease conversions                                 |  |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |             |      |         |   |          |     |         |   |    |     |      |   |     |      |      |   |     |      |      |  
|                                              
|                                              
|                                              
|                                              
|                                               | Note receivable                                                                                    |  |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |             |      |         |   |          |     |         |   |    |     |      |   |     |      |      |   |     |      |      |  
|                                              
|                                              
|                                              
|                                              
|                                               | Change in restricted cash                                                                          |  |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |             |      |         |   |          |     |         |   |    |     |      |   |     |      |      |   |     |      |      |  
|                                               |                                                                                                    | 
|                                               |                                                                                                    |  |                                                                       | Net cash provided by (used in) investing activities      |   |          | (153 | )        |   |          | (223 | )        |   |             | (101 | )        |   |          | (82 | )        |   |    | (23 | )     |   |     | (478 | )     |   |     | (183 | )     |   |       | (225 | )
|                                               |                                                                                                    | 
|Cash flows from financing activities:          |                                                                                                    |  |                                                                       |                                                          |   |          |      |          |   |          |      |          |   |             |      |          |   |          |     |          |   |    |     |       |   |     |      |       |   |     |      |      
|                                              
|                                              
|                                              
|                                              
|                                               | Deferred financing costs                                                                           |  |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |             |      |         |   |          |     |         |   |    |     |      |   |     |      |      |   |     |      |      |  
|                                              
|                                              
|                                              
|                                              
|                                               | Proceeds from mortgages and notes payable                                                          |  |                                                                       |                                                         |   |          |      |         |   |          |      | (97      | ) |             |      |         |   |          |     |         |   |    |     |      |   |     |      |      |   |     |      |      |  
|                                              
|                                              
|                                              
|                                              
|                                               | Principal payments on mortgages and notes payable                                                  |  |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |             |      |         |   |          |     |         |   |    |     |      |   |     |      |      |   |     |      |      |  
|                                              
|                                              
|                                              
|                                              
|                                               | Purchase of treasury stock                                                                         |  |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |             |      |         |   |          |     |         |   |    |     |      |   |     |      |      |   |     |      |      |  
|                                              
|                                              
|                                              
|                                              
|                                               | Contributions from partners                                                                        |  |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |             |      |         |   |          |     |         |   |    |     |      |   |     |      |      |   |     |      |      |  
|                                              
|                                              
|                                              
|                                              
|                                               | Distributions to partners                                                                          |  |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |             |      |         |   |          |     |         |   |    |     |      |   |     |      |      |   |     |      |      |  
|                                               |                                                                                                    | 
|                                               |                                                                                                    |  |                                                                       | Net cash provided by (used in) financing activities      |   |          |     |          |   |          |     |          |   |             | (97  | )        |   |          |    |          |   |    |    |       |   |     |     |       |   |     |     |       |   |       |     |  
|                                               |                                                                                                    | 
|Effect of exchange rate changes on cash        |                                                                                                    |  |                                                                      |                                                          |   |          |     |          |   |          | 37   |          |   |             |     |          |   |          |    |          |   |    |    |       |   |     |     |       |   |     |     |      
|                                               |                                                                                                    | 
|Net change in cash                             |                                                                                                    |  |                                                                      |                                                          |   |          |     |          |   |          |     |          |   |             |     |          |   |          |    |          |   |    |    |       |   |     |     |       |   |     |     |      
|                                              
|                                              
|                                              
|                                              
|Cash and cash equivalents, beginning of period |                                                                                                    |  |                                                                      |                                                          |   |          |     |          |   |          |     |          |   |             |     |          |   |          |    |          |   |    |    |       |   |     |     |       |   |     |     |      
|                                               |                                                                                                    | 
|Cash and cash equivalents, end of period       |                                                                                                    |  |                                                                      |                                                          |   |          |     |          |   |          |     |          |   |             |     |          |   |          |    |          |   |    |    |       |   |     |     |       |   |     |     |      
|                                               |                                                                                                    | 





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidated Statement of Cash Flows
For the six months ended June 30, 2001
(in thousands)

|                                               |                                                                                                    |  |                                                                       |                                                          |   |          |      |          |   |          |      |          |   |          |      |          |   |          |     |          |   |     |      |      |   |     |       |       |   |     |      |      |   |     |      |  
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- |  | --------------------------------------------------------------------- | -------------------------------------------------------- | - | -------- | ---- | -------- | - | -------- | ---- | -------- | - | -------- | ---- | -------- | - | -------- | --- | -------- | - | --- | ---- | ---- | - | --- | ----- | ----- | - | --- | ---- | ---- | - | --- | ---- | -
|                                               |                                                                                                    |  |                                                                       |                                                          |   | MeriStar |      | MeriStar |   | MeriStar |      | MeriStar |   | MeriStar |      | MeriStar |   | MeriStar |     | MeriStar
|                                               |                                                                                                    |  |                                                                       |                                                          |   | Sub 7B,  |      | Sub 7D,  |   | Sub 7G,  |      | Sub 6B,  |   | Sub 4I,  |      | Sub 5D,  |   | Sub 5H,  |     | Sub 7H, 
|                                               |                                                                                                    |  |                                                                       |                                                          |   | L.P.     |      | LLC      |   | LLC      |      | LLC      |   | L.P.     |      | LLC      |   | LLC      |     | LLC     
|                                               |                                                                                                    | 
|Cash flows from operating activities:          |                                                                                                    |  |                                                                       |                                                          |   |          |      |          |   |          |      |          |   |          |      |          |   |          |     |          |   |     |      |      |   |     |       |       |   |     |      |     
|                                              
|                                              
|                                              
|                                              
|                                               | Net Income (loss)                                                                                  |  |                                                                       | (86                                                      | ) |          |      | 2,531    |   |          |      | 15       |   |          |      | 193      |   |          |     | (536     | ) |     |      | (857 | ) |     |       | 2,022 |   |     |      | 179  |  
|                                              
|                                              
|                                              
|                                              
|                                               | Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |  |                                                                       |                                                          |   |          |      |          |   |          |      |          |   |          |      |          |   |          |     |          |   |     |      |      |   |     |       |       |   |     |      |      |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Depreciation and amortization                                         |                                                          |   | 431      |      |          |   | 782      |      |          |   | 357      |      |          |   | 225      |     |          |   | 425 |      |      |   | 703 |       |       |   | 973 |      |      |   | 347 |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Equity in earnings                                                    |                                                          |   |         |      |          |   |         |      |          |   |         |      |          |   |         |     |          |   |    |      |      |   |    |       |       |   |    |      |      |   |    |     
|                                               |                                                                                                    |  | Loss on sale of assets, net of tax                                    |                                                          |   |         |      |          |   |         |      |          |   |         |      |          |   |         |     |          |   |    |      |      |   |    |       |       |   |    |      |      |   |    |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Write down of investment in STS Hotel Net                             |                                                          |   |         |      |          |   |         |      |          |   |         |      |          |   |         |     |          |   |    |      |      |   |    |       |       |   |    |      |      |   |    |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Extraordinary loss on early extinguishment of debt, before tax effect |                                                          |   |         |      |          |   |         |      |          |   |         |      |          |   |         |     |          |   |    |      |      |   |    |       |       |   |    |      |      |   |    |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Minority interests                                                    |                                                          |   |         |      |          |   |         |      |          |   |         |      |          |   |         |     |          |   |    |      |      |   |    |       |       |   |    |      |      |   |    |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Amortization of unearned stock based compensation                     |                                                          |   |         |      |          |   |         |      |          |   |         |      |          |   |         |     |          |   |    |      |      |   |    |       |       |   |    |      |      |   |    |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Interest rate swaps marked to fair value                              |                                                          |   |          |      |          |   |          |      |          |   |          |      |          |   |          |     |          |   |     |      |      |   |     |       |       |   |     |      |      |   |     |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Deferred income taxes                                                 |                                                          |   |         |      |          |   |         |      |          |   |         |      |          |   |         |     |          |   |    |      |      |   |    |       |       |   |    |      |      |   |    |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Changes in operating assets and liabilities:                          |                                                          |   |          |      |          |   |          |      |          |   |          |      |          |   |          |     |          |   |     |      |      |   |     |       |       |   |     |      |      |   |     |     
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  |                                                                       | Accounts receivable, net                                 |   |          | (13  | )        |   |          | 268  |          |   |          |     |          |   |          |    |          |   |     |     |      |   |     | (24   | )     |   |     |     |      |   |     | (39  | )
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  |                                                                       | Prepaid expenses and other                               |   |          |     |          |   |          |     |          |   |          | (4   | )        |   |          | (1  | )        |   |     | (7   | )    |   |     | (53   | )     |   |     |     |      |   |     |     |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  |                                                                       | Due from/to Meristar Hotels                              |   |          | (1   | )        |   |          | (4   | )        |   |          |     |          |   |          |    |          |   |     |     |      |   |     | 1,544 |       |   |     | 27   |      |   |     |     |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  |                                                                       | Accounts payable, accrued expenses and other liabilities |   |          | 185  |          |   |          | 275  |          |   |          | (6   | )        |   |          | 99  |          |   |     | (113 | )    |   |     | 462   |       |   |     | 53   |      |   |     | (66  | )
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  |                                                                       | Accrued interest                                         |   |          |     |          |   |          |     |          |   |          |     |          |   |          |    |          |   |     |     |      |   |     |      |       |   |     |     |      |   |     |     |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  |                                                                       | Due from subsidiaries                                    |   | (274     | )    | (3,240   |   | (106     | )    | (478     | ) | 353      |      | (1,436   | ) | (2,916   | )   | (333     | )
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  |                                                                       | Income taxes payable                                     |   |          |     |          |   |          |     |          |   |          |     |          |   |          |    |          |   |     |     |      |   |     |      |       |   |     |     |      |   |     |     |  
|                                               |                                                                                                    | 
|                                               |                                                                                                    |  |                                                                       | Net cash provided by (used in) operating activities      |   | 242      |      | 611      |   | 256      |      | 39       |   | 122      |      | 339      |   | 159      |     | 88      
|                                               |                                                                                                    | 
|Cash flows from investing activities:          |                                                                                                    |  |                                                                       |                                                          |   |          |      |          |   |          |      |          |   |          |      |          |   |          |     |          |   |     |      |      |   |     |       |       |   |     |      |     
|                                              
|                                              
|                                              
|                                              
|                                               | Investment in hotel properties, net                                                                |  |                                                                       | (242                                                     | ) |          |      | (611     | ) |          |      | (256     | ) |          |      | (39      | ) |          |     | (122     | ) |     |      | (88  | ) |     |       | (159  | ) |     |      | (102 | )
|                                              
|                                              
|                                              
|                                              
|                                               | Proceeds from disposition of assets                                                                |  |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |          |      |         |   |          |     |         |   |     |      |     |   |     |       |      |   |     |      |     |  
|                                              
|                                              
|                                              
|                                              
|                                               | Hotel operating cash received in connection with lease conversions                                 |  |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |          |      |         |   |          |     |         |   |     |      |     |   |     |       |      |   |     |      |     |  
|                                              
|                                              
|                                              
|                                              
|                                               | Note receivable                                                                                    |  |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |          |      |         |   |          |     |         |   |     |      |     |   |     |       |      |   |     |      |     |  
|                                              
|                                              
|                                              
|                                              
|                                               | Change in restricted cash                                                                          |  |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |          |      |         |   |          |     |         |   |     |      |     |   |     |       |      |   |     |      |     |  
|                                               |                                                                                                    | 
|                                               |                                                                                                    |  |                                                                       | Net cash provided by (used in) investing activities      |   |          | (242 | )        |   |          | (611 | )        |   |          | (256 | )        |   |          | (39 | )        |   |     | (122 | )    |   |     | (88   | )     |   |     | (159 | )    |   |     | (102 | )
|                                               |                                                                                                    | 
|Cash flows from financing activities:          |                                                                                                    |  |                                                                       |                                                          |   |          |      |          |   |          |      |          |   |          |      |          |   |          |     |          |   |     |      |      |   |     |       |       |   |     |      |     
|                                              
|                                              
|                                              
|                                              
|                                               | Deferred financing costs                                                                           |  |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |          |      |         |   |          |     |         |   |     |      | 2    |   |     |       |      |   |     |      |     |  
|                                              
|                                              
|                                              
|                                              
|                                               | Proceeds from mortgages and notes payable                                                          |  |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |          |      |         |   |          |     |         |   |     |      | (253 | ) |     |       |      |   |     |      | 13   |  
|                                              
|                                              
|                                              
|                                              
|                                               | Principal payments on mortgages and notes payable                                                  |  |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |          |      |         |   |          |     |         |   |     |      |     |   |     |       |      |   |     |      |     |  
|                                              
|                                              
|                                              
|                                              
|                                               | Purchase of treasury stock                                                                         |  |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |          |      |         |   |          |     |         |   |     |      |     |   |     |       |      |   |     |      |     |  
|                                              
|                                              
|                                              
|                                              
|                                               | Contributions from partners                                                                        |  |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |          |      |         |   |          |     |         |   |     |      |     |   |     |       |      |   |     |      |     |  
|                                              
|                                              
|                                              
|                                              
|                                               | Distributions to partners                                                                          |  |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |          |      |         |   |          |     |         |   |     |      |     |   |     |       |      |   |     |      |     |  
|                                               |                                                                                                    | 
|                                               |                                                                                                    |  |                                                                       | Net cash provided by (used in) financing activities      |   |          |     |          |   |          |     |          |   |          |     |          |   |          |    |          |   |     |     |      |   |     | (251  | )     |   |     |     |      |   |     | 13   |  
|                                               |                                                                                                    | 
|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       |                                                                                                    |  |                                                                      |                                                          |   |          |     |          |   |          |     |          |   |          |     |          |   |          |    |          |   |     |     |      |   |     |      |       |   |     |     |     
|                                               |                                                                                                    | 





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidated Statement of Cash Flows
For the six months ended June 30, 2001
(in thousands)

|                                               |                                                                    |                                             |                                                                       |                                                          |   |        |      |          |   |          |      |          |   |          |      |          |   |          |        |          |   |     |     |      |   |     |      |     |   |     |     |       |   |     |     |  
|---------------------------------------------- | ------------------------------------------------------------------ | ------------------------------------------- | --------------------------------------------------------------------- | -------------------------------------------------------- | - | ------ | ---- | -------- | - | -------- | ---- | -------- | - | -------- | ---- | -------- | - | -------- | ------ | -------- | - | --- | --- | ---- | - | --- | ---- | --- | - | --- | --- | ----- | - | --- | --- | -
|                                               |                                                                    |                                             |                                                                       |                                                          |   | AGH    |      | MeriStar |   | MeriStar |      | MeriStar |   | MeriStar |      | MeriStar |   | MeriStar |        | MeriStar
|                                               |                                                                    |                                             |                                                                       |                                                          |   | PSS I, |      | Sub 2D,  |   | Sub 4F,  |      | Sub 5K,  |   | Sub 5M,  |      | Sub 1E,  |   | Sub 5O,  |        | Sub 6M  
|                                               |                                                                    |                                             |                                                                       |                                                          |   | Inc.   |      | LLC      |   | L.P.     |      | LLC      |   | LLC      |      | L.P.     |   | LLC      |        | Company 
|                                               |                                                                    |                                            
|Cash flows from operating activities:          |                                                                    |                                             |                                                                       |                                                          |   |        |      |          |   |          |      |          |   |          |      |          |   |          |        |          |   |     |     |      |   |     |      |     |   |     |     |      
|                                              
|                                              
|                                              
|                                              
|                                               | Net Income (loss)                                                  |                                             |                                                                       | 1,794                                                    |   |        |      | (153     | ) |          |      | 519      |   |          |      | 873      |   |          |        | 1,268    |   |     |     | 665  |   |     |      | 453 |   |     |     | 1,897 |  
|                                              
|                                              
|                                              
|                                              
|                                               | Adjustments to reconcile net income (loss) to net cash             |                                             |                                                                       |                                                          |   |        |      |          |   |          |      |          |   |          |      |          |   |          |        |          |   |     |     |      |   |     |      |     |   |     |     |       |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    | provided by (used in) operating activities: |                                                                       |                                                          |   |        |      |          |   |          |      |          |   |          |      |          |   |          |        |          |   |     |     |      |   |     |      |     |   |     |     |       |   |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             | Depreciation and amortization                                         |                                                          |   |       |      |          |   | 232      |      |          |   | 541      |      |          |   | 591      |        |          |   | 220 |     |      |   | 143 |      |     |   | 112 |     |       |   | 596 |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             | Equity in earnings                                                    |                                                          |   |       |      |          |   |         |      |          |   |         |      |          |   |         |        |          |   |    |     |      |   |    |      |     |   |    |     |       |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             | Loss on sale of assets, net of tax                                    |                                                          |   |       |      |          |   |         |      |          |   |         |      |          |   |         |        |          |   |    |     |      |   |    |      |     |   |    |     |       |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             | Write down of investment in STS Hotel Net                             |                                                          |   |       |      |          |   |         |      |          |   |         |      |          |   |         |        |          |   |    |     |      |   |    |      |     |   |    |     |       |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             | Extraordinary loss on early extinguishment of debt, before tax effect |                                                          |   |       |      |          |   |         |      |          |   |         |      |          |   |         |        |          |   |    |     |      |   |    |      |     |   |    |     |       |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             | Minority interests                                                    |                                                          |   |       |      |          |   |         |      |          |   |         |      |          |   |         |        |          |   |    |     |      |   |    |      |     |   |    |     |       |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             | Amortization of unearned stock based compensation                     |                                                          |   |       |      |          |   |         |      |          |   |         |      |          |   |         |        |          |   |    |     |      |   |    |      |     |   |    |     |       |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             | Interest rate swaps marked to fair value                              |                                                          |   |       |      |          |   |         |      |          |   |         |      |          |   |         |        |          |   |    |     |      |   |    |      |     |   |    |     |       |   |    |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             | Deferred income taxes                                                 |                                                          |   |        |      |          |   |          |      |          |   |          |      |          |   |          |        |          |   |     |     |      |   |     |      |     |   |     |     |       |   |     |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             | Changes in operating assets and liabilities:                          |                                                          |   |        |      |          |   |          |      |          |   |          |      |          |   |          |        |          |   |     |     |      |   |     |      |     |   |     |     |       |   |     |    
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             |                                                                       | Accounts receivable, net                                 |   |        | (908 | )        |   |          | (4   | )        |   |          | (4   | )        |   |          |       |          |   |     |    |      |   |     | 35   |     |   |     |    |       |   |     | 72  |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             |                                                                       | Prepaid expenses and other                               |   |        | (10  | )        |   |          |     |          |   |          |     |          |   |          |       |          |   |     |    |      |   |     |     |     |   |     |    |       |   |     | (62 | )
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             |                                                                       | Due from/to Meristar Hotels                              |   |        |     |          |   |          | (12  | )        |   |          |     |          |   |          | 132    |          |   |     | 59  |      |   |     | (1   | )   |   |     | 3   |       |   |     |    |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             |                                                                       | Accounts payable, accrued expenses and other liabilities |   |        | 150  |          |   |          | 99   |          |   |          | (117 | )        |   |          | (2,355 | )        |   |     | 18  |      |   |     | (16  | )   |   |     | 4   |       |   |     | 132 |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             |                                                                       | Accrued interest                                         |   |        |     |          |   |          |     |          |   |          |     |          |   |          |       |          |   |     |    |      |   |     |     |     |   |     |    |       |   |     |    |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             |                                                                       | Due from subsidiaries                                    |   | (933   | )    | (143     | ) | (849     | )    | 1,252    |   | (1,482   | )    | (699     | ) | (551     | )      | (2,546   | )
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                    |                                             |                                                                       | Income taxes payable                                     |   |        |     |          |   |          |     |          |   |          |     |          |   |          |       |          |   |     |    |      |   |     |     |     |   |     |    |       |   |     |    |  
|                                               |                                                                    |                                            
|                                               |                                                                    |                                             |                                                                       | Net cash provided by (used in) operating activities      |   | 93     |      | 19       |   | 89       |      | 492      |   | 83       |      | 127      |   | 21       |        | 89       |  
|                                               |                                                                    |                                            
|Cash flows from investing activities:          |                                                                    |                                             |                                                                       |                                                          |   |        |      |          |   |          |      |          |   |          |      |          |   |          |        |          |   |     |     |      |   |     |      |     |   |     |     |      
|                                              
|                                              
|                                              
|                                              
|                                               | Investment in hotel properties, net                                |                                             |                                                                       | (93                                                      | ) |        |      | 27       |   |          |      | (89      | ) |          |      | (492     | ) |          |        | (83      | ) |     |     | (127 | ) |     |      | (21 | ) |     |     | (89   | )
|                                              
|                                              
|                                              
|                                              
|                                               | Proceeds from disposition of assets                                |                                             |                                                                       |                                                         |   |        |      |         |   |          |      |         |   |          |      |         |   |          |        |         |   |     |     |     |   |     |      |    |   |     |     |      |  
|                                              
|                                              
|                                              
|                                              
|                                               | Hotel operating cash received in connection with lease conversions |                                             |                                                                       |                                                         |   |        |      |         |   |          |      |         |   |          |      |         |   |          |        |         |   |     |     |     |   |     |      |    |   |     |     |      |  
|                                              
|                                              
|                                              
|                                              
|                                               | Note receivable                                                    |                                             |                                                                       |                                                         |   |        |      |         |   |          |      |         |   |          |      |         |   |          |        |         |   |     |     |     |   |     |      |    |   |     |     |      |  
|                                              
|                                              
|                                              
|                                              
|                                               | Change in restricted cash                                          |                                             |                                                                       |                                                         |   |        |      |         |   |          |      |         |   |          |      |         |   |          |        |         |   |     |     |     |   |     |      |    |   |     |     |      |  
|                                               |                                                                    |                                            
|                                               |                                                                    |                                             |                                                                       | Net cash provided by (used in) investing activities      |   |        | (93  | )        |   |          | 27   |          |   |          | (89  | )        |   |          | (492   | )        |   |     | (83 | )    |   |     | (127 | )   |   |     | (21 | )     |   |     | (89 | )
|                                               |                                                                    |                                            
|Cash flows from financing activities:          |                                                                    |                                             |                                                                       |                                                          |   |        |      |          |   |          |      |          |   |          |      |          |   |          |        |          |   |     |     |      |   |     |      |     |   |     |     |      
|                                              
|                                              
|                                              
|                                              
|                                               | Deferred financing costs                                           |                                             |                                                                       |                                                         |   |        |      |         |   |          |      |         |   |          |      |         |   |          |        |         |   |     |     |     |   |     |      |    |   |     |     |      |  
|                                              
|                                              
|                                              
|                                              
|                                               | Proceeds from mortgages and notes payable                          |                                             |                                                                       |                                                         |   |        |      | (112     | ) |          |      |         |   |          |      |         |   |          |        |         |   |     |     |     |   |     |      |    |   |     |     |      |  
|                                              
|                                              
|                                              
|                                              
|                                               | Principal payments on mortgages and notes payable                  |                                             |                                                                       |                                                         |   |        |      |         |   |          |      |         |   |          |      |         |   |          |        |         |   |     |     |     |   |     |      |    |   |     |     |      |  
|                                              
|                                              
|                                              
|                                              
|                                               | Purchase of treasury stock                                         |                                             |                                                                       |                                                         |   |        |      |         |   |          |      |         |   |          |      |         |   |          |        |         |   |     |     |     |   |     |      |    |   |     |     |      |  
|                                              
|                                              
|                                              
|                                              
|                                               | Contributions from partners                                        |                                             |                                                                       |                                                         |   |        |      |         |   |          |      |         |   |          |      |         |   |          |        |         |   |     |     |     |   |     |      |    |   |     |     |      |  
|                                              
|                                              
|                                              
|                                              
|                                               | Distributions to partners                                          |                                             |                                                                       |                                                         |   |        |      |         |   |          |      |         |   |          |      |         |   |          |        |         |   |     |     |     |   |     |      |    |   |     |     |      |  
|                                               |                                                                    |                                            
|                                               |                                                                    |                                             |                                                                       | Net cash provided by (used in) financing activities      |   |        |     |          |   |          | (112 | )        |   |          |     |          |   |          |       |          |   |     |    |      |   |     |     |     |   |     |    |       |   |     |    |  
|                                               |                                                                    |                                            
|Effect of exchange rate changes on cash        |                                                                    |                                             |                                                                      |                                                          |   |        | 67   |          |   |          |     |          |   |          |     |          |   |          |       |          |   |     |    |      |   |     |     |     |   |     |    |      
|                                               |                                                                    |                                            
|Net change in cash                             |                                                                    |                                             |                                                                      |                                                          |   |        |     |          |   |          |     |          |   |          |     |          |   |          |       |          |   |     |    |      |   |     |     |     |   |     |    |      
|                                              
|                                              
|                                              
|                                              
|Cash and cash equivalents, beginning of period |                                                                    |                                             |                                                                      |                                                          |   |        |     |          |   |          |     |          |   |          |     |          |   |          |       |          |   |     |    |      |   |     |     |     |   |     |    |      
|                                               |                                                                    |                                            
|Cash and cash equivalents, end of period       |                                                                    |                                             |                                                                      |                                                          |   |        |     |          |   |          |     |          |   |          |     |          |   |          |       |          |   |     |    |      |   |     |     |     |   |     |    |      
|                                               |                                                                    |                                            





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidated Statement of Cash Flows
For the six months ended June 30, 2001
(in thousands)

|                                               |                                                                                                    |  |                                                                       |                                                          |   |          |        |          |   |          |      |          |   |          |      |          |   |          |     |          |   |     |     |       |   |       |      |     |  |   |      |       |   |       |       |  
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- |  | --------------------------------------------------------------------- | -------------------------------------------------------- | - | -------- | ------ | -------- | - | -------- | ---- | -------- | - | -------- | ---- | -------- | - | -------- | --- | -------- | - | --- | --- | ----- | - | ----- | ---- | --- |  | - | ---- | ----- | - | ----- | ----- | -
|                                               |                                                                                                    |  |                                                                       |                                                          |   |          |        |          |   |          |      |          |   |          |      |          |   |          |     |          |   |     |     |       |   |       |      |     |  |   |      |       |   |      
|                                               |                                                                                                    |  |                                                                       |                                                          |   | MeriStar |        | MeriStar |   | MeriStar |      | MeriStar |   | MeriStar |      | MeriStar |   | MeriStar |     | MeriStar
|                                               |                                                                                                    |  |                                                                       |                                                          |   | Sub 4B,  |        | Sub 6C,  |   | Sub 2C,  |      | Sub 4G,  |   | Sub 3B,  |      | Sub
5G,  |   | Sub 5P,  |     | Sub 5J, 
|                                               |                                                                                                    |  |                                                                       |                                                          |   | L.P.     |        | LLC      |   | LLC      |      | L.P.     |   | LLC      |      | L.P.     |   | LLC      |     | LLC     
|                                               |                                                                                                    | 
|Cash flows from operating activities:          |                                                                                                    |  |                                                                       |                                                          |   |          |        |          |   |          |      |          |   |          |      |          |   |          |     |          |   |     |     |       |   |       |      |     |  |   |      |      
|                                              
|                                              
|                                              
|                                              
|                                               | Net Income (loss)                                                                                  |  |                                                                       | (582                                                     | ) |          |        | 1,347    |   |          |      | (585     | ) |          |      | 867      |   |          |     | 220      |   |     |     | 3,845 |   |       |      | 367 |  |   |      | 5,501 |  
|                                              
|                                              
|                                              
|                                              
|                                               | Adjustments
to reconcile net income (loss) to net
cash provided by (used in) operating activities: |  |                                                                       |                                                          |   |          |        |          |   |          |      |          |   |          |      |          |   |          |     |          |   |     |     |       |   |       |      |     |  |   |      |       |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Depreciation and amortization                                         |                                                          |   | 540      |        |          |   | 365      |      |          |   | 516      |      |          |   | 417      |     |          |   | 438 |     |       |   | 3,079 |      |     |  |  |      |       |   | 1,681 |      
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Equity in earnings                                                    |                                                          |   |          |        |          |   |         |      |          |   |         |      |          |   |         |     |          |   |    |     |       |   |      |      |     |  |  |      |       |   |      |      
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Loss
on sale of assets, net of tax                                    |                                                          |   |         |        |          |   |         |      |          |   |         |      |          |   |         |     |          |   |    |     |       |   |      |      |     |  |  |      |       |   |      |      
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Write down of investment in STS Hotel Net                             |                                                          |   |         |        |          |   |         |      |          |   |         |      |          |   |         |     |          |   |    |     |       |   |      |      |     |  |  |      |       |   |      |      
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Extraordinary loss on early extinguishment of debt, before tax effect |                                                          |   |         |        |          |   |         |      |          |   |         |      |          |   |         |     |          |   |    |     |       |   |      |      |     |  |  |      |       |   |      |      
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Minority interests                                                    |                                                          |   |         |        |          |   |         |      |          |   |         |      |          |   |         |     |          |   |    |     |       |   |      |      |     |  |  |      |       |   |      |      
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Amortization of unearned stock based compensation                     |                                                          |   |         |        |          |   |         |      |          |   |         |      |          |   |         |     |          |   |    |     |       |   |      |      |     |  |  |      |       |   |      |      
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Interest rate swaps marked to fair value                              |                                                          |   |          |        |          |   |          |      |          |   |          |      |          |   |          |     |          |   |     |     |       |   |       |      |     |  |   |      |       |   |       |      
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Deferred
income taxes                                                 |                                                          |   |         |        |          |   |         |      |          |   |         |      |          |   |         |     |          |   |    |     |       |   |      |      |     |  |  |      |       |   |      |      
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Changes in operating assets and liabilities:                          |                                                          |   |          |        |          |   |          |      |          |   |          |      |          |   |          |     |          |   |     |     |       |   |       |      |     |  |   |      |       |   |       |      
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  |                                                                       | Accounts receivable, net                                 |   |          |       |          |   |          | 56   |          |   |          |     |          |   |          | 67  |          |   |     | 8   |       |   |       | 383  |     |  |   | (372 | )     |   |       |      |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  |                                                                       | Prepaid expenses and other                               |   |          |       |          |   |          | 64   |          |   |          |     |          |   |          |    |          |   |     | (7  | )     |   |       | (14  | )   |  |   |     |       |   |       |      |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  |                                                                       | Due from/to Meristar Hotels                              |   |          |       |          |   |          |     |          |   |          | 44   |          |   |          | (1  | )        |   |     | (1  | )     |   |       | (1   | )   |  |   | 42   |       |   |       | 2,004 |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  |                                                                       | Accounts payable, accrued expenses and other liabilities |   |          | (134   | )        |   |          | 19   |          |   |          | 243  |          |   |          | (81 | )        |   |     | (33 | )     |   |       | 452  |     |  |   | 1    |       |   |       | (359  | )
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  |                                                                       | Accrued interest                                         |   |          |       |          |   |          |     |          |   |          |     |          |   |          |    |          |   |     |    |       |   |       |     |     |  |   |     |       |   |       |      |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  |                                                                       | Due from subsidiaries                                    |   | 1,247    |        | (1,593   | ) | (164     | )    | (1,217   | ) | (578     | )    | (7,457   | ) | (39      | )   | (7,989   | )
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  |                                                                       | Income taxes payable                                     |   |          |       |          |   |          |     |          |   |          |     |          |   |          |    |          |   |     |    |       |   |       |     |     |  |   |     |       |   |       |      |  
|                                               |                                                                                                    | 
|                                               |                                                                                                    |  |                                                                       | Net cash provided by (used in) operating activities      |   | 1,071    |        | 258      |   | 54       |      | 53       |   | 47       |      | 286      |   |         |     | 838      |  
|                                               |                                                                                                    | 
|Cash flows from investing activities:          |                                                                                                    |  |                                                                       |                                                          |   |          |        |          |   |          |      |          |   |          |      |          |   |          |     |          |   |     |     |       |   |       |      |     |  |   |      |      
|                                              
|                                              
|                                              
|                                              
|                                               | Investment in hotel properties, net                                                                |  |                                                                       | (1,071                                                   | ) |          |        | (258     | ) |          |      | 1        |   |          |      | (53      | ) |          |     | (48      | ) |     |     | (286  | ) |       |      |    |  |   |      | (838  | )
|                                              
|                                              
|                                              
|                                              
|                                               | Proceeds from disposition of assets                                                                |  |                                                                       |                                                         |   |          |        |         |   |          |      |         |   |          |      |         |   |          |     |         |   |     |     |      |   |       |      |    |  |   |      |      |  
|                                              
|                                              
|                                              
|                                              
|                                               | Investments in and advances to affiliates, net                                                     |  |                                                                       |                                                         |   |          |        |         |   |          |      |         |   |          |      |         |   |          |     |         |   |     |     |      |   |       |      |    |  |   |      |      |  
|                                              
|                                              
|                                              
|                                              
|                                               | Hotel operating cash received in connection with lease conversions                                 |  |                                                                       |                                                         |   |          |        |         |   |          |      |         |   |          |      |         |   |          |     |         |   |     |     |      |   |       |      |    |  |   |      |      |  
|                                              
|                                              
|                                              
|                                              
|                                               | Note receivable                                                                                    |  |                                                                       |                                                         |   |          |        |         |   |          |      |         |   |          |      |         |   |          |     |         |   |     |     |      |   |       |      |    |  |   |      |      |  
|                                              
|                                              
|                                              
|                                              
|                                               | Change in restricted cash                                                                          |  |                                                                       |                                                         |   |          |        |         |   |          |      |         |   |          |      |         |   |          |     |         |   |     |     |      |   |       |      |    |  |   |      |      |  
|                                               |                                                                                                    | 
|                                               |                                                                                                    |  |                                                                       | Net cash provided by (used in) investing activities      |   |          | (1,071 | )        |   |          | (258 | )        |   |          | 1    |          |   |          | (53 | )        |   |     | (48 | )     |   |       | (286 | )   |  |   |     |       |   |       | (838  | )
|                                               |                                                                                                    | 
|Cash flows from financing activities:          |                                                                                                    |  |                                                                       |                                                          |   |          |        |          |   |          |      |          |   |          |      |          |   |          |     |          |   |     |     |       |   |       |      |     |  |   |      |      
|                                              
|                                              
|                                              
|                                              
|                                               | Deferred financing costs                                                                           |  |                                                                       |                                                         |   |          |        |         |   |          |      |         |   |          |      |         |   |          |     |         |   |     |     |      |   |       |      |    |  |   |      |      |  
|                                              
|                                              
|                                              
|                                              
|                                               | Proceeds from mortgages and notes payable                                                          |  |                                                                       |                                                         |   |          |        |         |   |          |      | (196     | ) |          |      |         |   |          |     |         |   |     |     |      |   |       |      |    |  |   |      |      |  
|                                              
|                                              
|                                              
|                                              
|                                               | Principal payments on mortgages and notes payable                                                  |  |                                                                       |                                                         |   |          |        |         |   |          |      |         |   |          |      |         |   |          |     |         |   |     |     |      |   |       |      |    |  |   |      |      |  
|                                              
|                                              
|                                              
|                                              
|                                               | Purchase of treasury stock                                                                         |  |                                                                       |                                                         |   |          |        |         |   |          |      |         |   |          |      |         |   |          |     |         |   |     |     |      |   |       |      |    |  |   |      |      |  
|                                              
|                                              
|                                              
|                                              
|                                               | Contributions from partners                                                                        |  |                                                                       |                                                         |   |          |        |         |   |          |      |         |   |          |      |         |   |          |     |         |   |     |     |      |   |       |      |    |  |   |      |      |  
|                                              
|                                              
|                                              
|                                              
|                                               | Distributions to partners                                                                          |  |                                                                       |                                                         |   |          |        |         |   |          |      |         |   |          |      |         |   |          |     |         |   |     |     |      |   |       |      |    |  |   |      |      |  
|                                               |                                                                                                    | 
|                                               |                                                                                                    |  |                                                                       | Net cash provided by (used in) financing activities      |   |          |       |          |   |          |     |          |   |          | (196 | )        |   |          |    |          |   |     |    |       |   |       |     |     |  |   |     |       |   |       |      |  
|                                               |                                                                                                    | 
|Effect of exchange rate changes on cash        |                                                                                                    |  |                                                                      |                                                          |   |          |       |          |   |          | 142  |          |   |          |     |          |   |          |    |          |   |     |    |       |   |       |     |     |  |   |     |      
|                                               |                                                                                                    | 
|Net change in cash                             |                                                                                                    |  |                                                                      |                                                          |   |          |       |          |   |          |     |          |   |          |     |          |   |          |    |          |   |     |    |       |   |       |     |     |  |   |     |      
|                                              
|                                              
|                                              
|                                              
|Cash and cash equivalents, beginning of period |                                                                                                    |  |                                                                      |                                                          |   |          |       |          |   |          |     |          |   |          |     |          |   |          |    |          |   |     |    |       |   |       |     |     |  |   |     |      
|                                               |                                                                                                    | 
|Cash and cash equivalents, end of period       |                                                                                                    |  |                                                                      |                                                          |   |          |       |          |   |          |     |          |   |          |     |          |   |          |    |          |   |     |    |       |   |       |     |     |  |   |     |      
|                                               |                                                                                                    | 





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidated Statement of Cash Flows
For the six months ended June 30, 2001
(in thousands)

|                                               |                                                                                                    |  |                                                                       |                                                          |   |          |      |          |   |          |      |          |   |         |     |              |   |              |        |        |   |          |        |          |   |         |         |          |   |        |         |   |  |  |  | 
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- |  | --------------------------------------------------------------------- | -------------------------------------------------------- | - | -------- | ---- | -------- | - | -------- | ---- | -------- | - | ------- | --- | ------------ | - | ------------ | ------ | ------ | - | -------- | ------ | -------- | - | ------- | ------- | -------- | - | ------ | ------- | - |  |  |  | 
|                                               |                                                                                                    |  |                                                                       |                                                          |   |          |      |          |   |          |      |          |   |         |     |              |   |              |        |        |   | MeriStar |        |          |   |         |         |          |   |        |         |   |  | 
|                                               |                                                                                                    |  |                                                                       |                                                          |   | MeriStar |      | MeriStar |   | MeriStar |      | MeriStar |   | Hotel   |     |              |   |              |        |        |   |          |        |          |   |        
|                                               |                                                                                                    |  |                                                                       |                                                          |   | Sub 5Q,  |      | Sub 5A,  |   | Sub 8D,  |      | Sub 4J,  |   | Lessee, |     |              |   |              |        | Total  |   |          |        |         
|                                               |                                                                                                    |  |                                                                       |                                                          |   | LLC      |      | LLC      |   | LLC      |      | LLC      |   | Inc.    |     | Eliminations |   | Consolidated |        |        |   |         
|                                               |                                                                                                    | 
|Cash flows from operating activities:          |                                                                                                    |  |                                                                       |                                                          |   |          |      |          |   |          |      |          |   |         |     |              |   |              |        |        |   |          |        |          |   |         |         |          |   |        |         |  
|                                              
|                                              
|                                              
|                                              
|                                               | Net Income (loss)                                                                                  |  |                                                                       | 1,608                                                    |   |          |      | 599      |   |          |      | 1,124    |   |         |     | 817          |   |              |        | 12,360 |   |          |        | (109,079 | ) |         |         | 40,402   |   |        |         |   | 
|                                              
|                                              
|                                              
|                                              
|                                               | Adjustments
to reconcile net income (loss) to net
cash provided by (used in) operating activities: |  |                                                                       |                                                          |   |          |      |          |   |          |      |          |   |         |     |              |   |              |        |        |   |          |        |          |   |         |         |          |   |        |         |   | 
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Depreciation and amortization                                         |                                                          |   | 205      |      |          |   | 834      |      |          |   | 622     |     |              |   | 618          |        |        |   | 123      |        |          |   |        |         |          |   | 57,787 |         |   |  |  | 
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Equity in earnings                                                    |                                                          |   |         |      |          |   |         |      |          |   |        |     |              |   |             |        |        |   |         |        |          |   | 109,079 |         |          |   |       |         |   |  |  | 
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Loss on sale of assets, net of tax                                    |                                                          |   |         |      |          |   |         |      |          |   |        |     |              |   |             |        |        |   |         |        |          |   |         |         |          |   | 1,081  |         |   |  |  | 
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Write down of investment in STS Hotel Net                             |                                                          |   |         |      |          |   |         |      |          |   |        |     |              |   |             |        |        |   |         |        |          |   |        |         |          |   | 2,112  |         |   |  |  | 
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Extraordinary loss on early extinguishment of debt, before tax effect |                                                          |   |         |      |          |   |         |      |          |   |        |     |              |   |             |        |        |   |         |        |          |   |        |         |          |   | 1,243  |         |   |  |  | 
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Minority interests                                                    |                                                          |   |         |      |          |   |         |      |          |   |        |     |              |   |             |        |        |   |         |        |          |   |        |         |          |   | 6      |         |   |  |  | 
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Amortization of unearned stock based compensation                     |                                                          |   |         |      |          |   |         |      |          |   |        |     |              |   |             |        |        |   |         |        |          |   |        |         |          |   | 1,842  |         |   |  |  | 
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Interest rate swaps marked to fair value                              |                                                          |   |          |      |          |   |          |      |          |   |         |     |              |   |              |        |        |   |          |        |          |   |         |         |          |   |       |         |   |  |  | 
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Deferred income taxes                                                 |                                                          |   |         |      |          |   |         |      |          |   |        |     |              |   |             |        |        |   |         |        |          |   |        |         |          |   | 296    |         |   |  |  | 
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  | Changes in operating assets and liabilities:                          |                                                          |   |          |      |          |   |          |      |          |   |         |     |              |   |              |        |        |   |          |        |          |   |         |         |          |   |        |         |   |  | 
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  |                                                                       | Accounts receivable, net                                 |   |          |     |          |   |          | 11   |          |   |         | 119 |              |   |              | 43     |        |   |          | (6,767 | )        |   |         |        |          |   |        | (7,007  | ) |  |  |  | 
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  |                                                                       | Prepaid expenses and other                               |   |          |     |          |   |          | (11  | )        |   |         | (5  | )            |   |              |       |        |   |          | (551   | )        |   |         |        |          |   |        | 502     |   |  |  |  | 
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  |                                                                       | Due from/to Meristar Hotels                              |   |          | (86  | )        |   |          | (1   | )        |   |         |    |              |   |              |       |        |   |          | (999   | )        |   |         |        |          |   |        | 11,328  |   |  |  |  | 
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  |                                                                       | Accounts payable, accrued expenses and other liabilities |   |          | (335 | )        |   |          | 362  |          |   |         | 10  |              |   |              | (204   | )      |   |          | 2,299  |          |   |         |        |          |   |        | (9,052  | ) |  |  |  | 
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  |                                                                       | Accrued interest                                         |   |          |     |          |   |          |     |          |   |         |    |              |   |              |       |        |   |          |       |          |   |         |        |          |   |        | 15,987  |   |  |  |  | 
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  |                                                                       | Due from subsidiaries                                    |   | (1,124   | )    | (1,322   | ) | (1,821   | )    | (957     | ) | 9,745   |     | (268,842     | ) |             |        |        |   |         
|                                              
|                                              
|                                              
|                                              
|                                               |                                                                                                    |  |                                                                       | Income taxes payable                                     |   |          |     |          |   |          |     |          |   |         |    |              |   |              |       |        |   |          |       |          |   |         |        |          |   |        | 499     |   |  |  |  | 
|                                               |                                                                                                    | 
|                                               |                                                                                                    |  |                                                                       | Net cash provided by (used in) operating activities      |   | 269      |      | 473      |   | 50       |      | 317      |   | 16,209  |     | (268,842     | ) | 117,026      |        |        |   |         
|                                               |                                                                                                    | 
|Cash flows from investing activities:          |                                                                                                    |  |                                                                       |                                                          |   |          |      |          |   |          |      |          |   |         |     |              |   |              |        |        |   |          |        |          |   |         |         |          |   |        |         |  
|                                              
|                                              
|                                              
|                                              
|                                               | Investment in hotel properties, net                                                                |  |                                                                       | (269                                                     | ) |          |      | (473     | ) |          |      | (50      | ) |         |     | (317         | ) |              |        | (718   | ) |          |        |         |   |         |         | (23,782  | ) |        |         |   | 
|                                              
|                                              
|                                              
|                                              
|                                               | Proceeds from disposition of assets                                                                |  |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |         |     |             |   |              |        |       |   |          |        |         |   |         |         | 7,274    |   |        |         |   | 
|                                              
|                                              
|                                              
|                                              
|                                               | Hotel operating cash received in connection with lease conversions                                 |  |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |         |     |             |   |              |        | 3,257  |   |          |        |         |   |         |         | 3,257    |   |        |         |   | 
|                                              
|                                              
|                                              
|                                              
|                                               | Note receivable                                                                                    |  |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |         |     |             |   |              |        |       |   |          |        | (464     | ) |         |         | (36,000  | ) |        |         |   | 
|                                              
|                                              
|                                              
|                                              
|                                               | Change in restricted cash                                                                          |  |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |         |     |             |   |              |        |       |   |          |        |         |   |         |         | (283     | ) |        |         |   | 
|                                               |                                                                                                    | 
|                                               |                                                                                                    |  |                                                                       | Net cash provided by (used in) investing activities      |   |          | (269 | )        |   |          | (473 | )        |   |         | (50 | )            |   |              | (317   | )      |   |          | 2,539  |          |   |         | (464    | )        |   |        | (49,534 | ) |  |  |  | 
|                                               |                                                                                                    | 
|Cash flows from financing activities:          |                                                                                                    |  |                                                                       |                                                          |   |          |      |          |   |          |      |          |   |         |     |              |   |              |        |        |   |          |        |          |   |         |         |          |   |        |         |  
|                                              
|                                              
|                                              
|                                              
|                                               | Deferred financing costs                                                                           |  |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |         |     |             |   |              |        |       |   |          |        |         |   |         |         | (9,906   | ) |        |         |   | 
|                                              
|                                              
|                                              
|                                              
|                                               | Proceeds from mortgages and notes payable                                                          |  |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |         |     |             |   |              |        | (32    | ) |          |        | 269,306  |   |         |         | 599,529  |   |        |         |   | 
|                                              
|                                              
|                                              
|                                              
|                                               | Principal payments on mortgages and notes payable                                                  |  |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |         |     |             |   |              |        |       |   |          |        |         |   |         |         | (584,830 | ) |        |         |   | 
|                                              
|                                              
|                                              
|                                              
|                                               | Repurchase of units                                                                                |  |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |         |     |             |   |              |        |       |   |          |        |         |   |         |         | (3,280   | ) |        |         |   | 
|                                              
|                                              
|                                              
|                                              
|                                               | Contributions from partners                                                                        |  |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |         |     |             |   |              |        |       |   |          |        |         |   |         |         | 705      |   |        |         |   | 
|                                              
|                                              
|                                              
|                                              
|                                               | Distributions to partners                                                                          |  |                                                                       |                                                         |   |          |      |         |   |          |      |         |   |         |     |             |   |              |        |       |   |          |        |         |   |         |         | (49,685  | ) |        |         |   | 
|                                               |                                                                                                    | 
|                                               |                                                                                                    |  |                                                                       | Net cash provided by (used in) financing activities      |   |          |     |          |   |          |     |          |   |         |    |              |   |              |       |        |   |          | (32    | )        |   |         | 269,306 |          |   |        | (47,467 | ) |  |  |  | 
|                                               |                                                                                                    | 
|Effect of exchange rate changes on cash        |                                                                                                    |  |                                                                      |                                                          |   |          |     |          |   |          |     |          |   |         |    |              |   |              |       |        |   |          |       |          |   |         | 283     |          |   |        |         |  
|                                               |                                                                                                    | 
|Net change in cash                             |                                                                                                    |  |                                                                      |                                                          |   |          |     |          |   |          |     |          |   |         |    |              |   |              | 18,716 |        |   |          |       |          |   |         | 20,308  |          |   |        |         |  
|                                              
|                                              
|                                              
|                                              
|Cash and cash equivalents, beginning of period |                                                                                                    |  |                                                                      |                                                          |   |          |     |          |   |          |     |          |   |         |    |              |   |              |       |        |   |          |       |          |   |         | 242     |          |   |        |         |  
|                                               |                                                                                                    | 
|Cash and cash equivalents, end of period       |                                                                                                    |  |                                                                      |                                                          |   |          |     |          |   |          |     |          |   |         |    |              |   |              | 18,716 |        |   |          |       |          |   |         | 20,550  |          |   |        |         |  
|                                               |                                                                                                    |