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


<TABLE>
<CAPTION>
                                                                 MERISTAR        NON-        MERISTAR        AGH         MERISTAR
                                                                HOSPITALITY    GUARANTOR       SUB 7C,       UPREIT,       SUB 5N,
                                                                  OP, L.P.    SUBSIDIARIES       LLC          LLC            LLC
                                                                -----------   ------------   ----------    ----------    ----------
<S>                                                             <C>           <C>            <C>           <C>           <C>
ASSETS
   Property and equipment                                           18,132      1,418,980            --            --         4,137
   Accumulated depreciation                                        (12,063)      (234,185)           --            --          (644)
                                                                ----------      ---------    ----------    ----------    ----------
                                                                     6,069      1,184,795            --            --         3,493

   Restricted cash                                                  33,088          5,200            --            --            --
   Investments in affiliates                                     2,273,079          8,200            32         2,989            --
   Due from subsidiaries                                          (706,261)       282,441            --            74         4,144
   Note receivable from Interstate Hotels & Resorts                120,855             --            --            --            --
   Prepaid expenses and other assets                                27,550           (942)           --            --           (10)
   Accounts receivable, net                                         16,392          1,109            --            --            --
   Marketable securities                                             1,000             --            --            --            --
   Cash and cash equivalents                                       251,448             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
                                                                 2,023,220      1,480,803            32         3,063         7,627
                                                                ==========      =========    ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
   Long-term debt                                                1,006,708        346,441            --            --            --
   Notes payable to MeriStar Hospitality Corporation               337,093             --            --            --            --
   Accounts payable and accrued expenses                            20,406          8,052            --            --            38
   Accrued interest                                                 36,600          3,271            --            --            --
   Due to Interstate Hotels & Resorts                                  796             --            --            --            --
   Other liabilities                                                 4,186           (304)           --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
   Total liabilities                                             1,405,789        357,460            --            --            38
                                                                ----------      ---------    ----------    ----------    ----------

   Minority interests                                                2,565             --            --            --            --
   Redeemable OP units at redemption value                          33,535             --            --            --            --
   Partners' capital - Common OP Units                             581,331      1,123,343            32         3,063         7,589
                                                                ----------      ---------    ----------    ----------    ----------
                                                                 2,023,220      1,480,803            32         3,063         7,627
                                                                ==========      =========    ==========    ==========    ==========
</TABLE>


<TABLE>
<CAPTION>
                                                                 MERISTAR        MERISTAR     MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 8A,        SUB 8F,       SUB 8G,       SUB 6H,       SUB 8B,
                                                                    LLC            L.P.          LLC          L.P.          LLC
                                                                -----------     ---------    ----------    ----------    ----------
<S>                                                             <C>             <C>          <C>           <C>           <C>
ASSETS
   Property and equipment                                               --         11,501            --        10,862        82,693
   Accumulated depreciation                                             --         (2,356)           --            --       (11,680)
                                                                ----------      ---------    ----------    ----------    ----------
                                                                        --          9,145            --        10,862        71,013

   Restricted cash                                                      --            115            --            --            --
   Investments in affiliates                                            --             --            72            --            --
   Due from subsidiaries                                                --          6,568             9         6,619        30,008
   Note receivable from Interstate Hotels & Resorts                     --             --            --            --            --
   Prepaid expenses and other assets                                    --            (15)           --             1            13
   Accounts receivable, net                                             --             --            --            --            --
   Marketable securities                                                --             --            --            --            --
   Cash and cash equivalents                                            --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
                                                                        --         15,813            81        17,482       101,034
                                                                ==========      =========    ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
   Long-term debt                                                       --             --            --            --            --
   Notes payable to MeriStar Hospitality Corporation                    --             --            --            --            --
   Accounts payable and accrued expenses                                --             72            --           230         2,535
   Accrued interest                                                     --             --            --            --            --
   Due to Interstate Hotels & Resorts                                   --             --            --            --            --
   Other liabilities                                                    --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
   Total liabilities                                                    --             72            --           230         2,535
                                                                ----------      ---------    ----------    ----------    ----------

   Minority interests                                                   --             --            --            --            --
   Redeemable OP units at redemption value                              --             --            --            --            --
   Partners' capital - Common OP Units                                  --         15,741            81        17,252        98,499
                                                                ----------      ---------    ----------    ----------    ----------
                                                                        --         15,813            81        17,482       101,034
                                                                ==========      =========    ==========    ==========    ==========
</TABLE>



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


<TABLE>
<CAPTION>
                                                                 MERISTAR        MERISTAR     MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 1C,         SUB 8E,       SUB 7F,      SUB 5L,       SUB 3C,
                                                                   L.P.            LLC           LLC          LLC           LLC
                                                                -----------     ---------    ----------    ----------    ----------
<S>                                                             <C>             <C>          <C>           <C>           <C>
ASSETS
  Property and equipment                                            25,534         15,356         7,263        11,684        17,436
  Accumulated depreciation                                          (5,647)        (2,875)           --          (607)       (3,522)
                                                                ----------      ---------    ----------    ----------    ----------

                                                                    19,887         12,481         7,263        11,077        13,914

  Restricted cash                                                       --             --            --            --            --
  Investments in affiliates                                             --             --            --            --            --
  Due from subsidiaries                                             (2,846)         6,432         4,982         4,327         4,920
  Note receivable from Interstate Hotels & Resorts                      --             --            --            --            --
  Prepaid expenses and other assets                                    (43)            (6)            1           (14)           35
  Accounts receivable, net                                              --             --            --            --            --
  Marketable securities                                                 --             --            --            --            --
  Cash and cash equivalents                                             --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    16,998         18,907        12,246        15,390        18,869
                                                                ==========      =========    ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
  Long-term debt                                                        --             --            --            --            --
  Notes payable to MeriStar Hospitality Corporation                     --             --            --            --            --
  Accounts payable and accrued expenses                                 46            (81)          219            50           239
  Accrued interest                                                      --             --            --            --            --
  Due to Interstate Hotels & Resorts                                    --             --            --            --            --
  Other liabilities                                                     --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
  Total liabilities                                                     46            (81)          219            50           239
                                                                ----------      ---------    ----------    ----------    ----------

  Minority interests                                                    --             --            --            --            --
  Redeemable OP units at redemption value                               --             --            --            --            --
  Partners' capital - Common OP Units                               16,952         18,988        12,027        15,340        18,630
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    16,998         18,907        12,246        15,390        18,869
                                                                ==========      =========    ==========    ==========    ==========
</TABLE>


<TABLE>
<CAPTION>
                                                                 MERISTAR       MERISTAR      MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 5R,        SUB 6D,       SUB 6E,       SUB 4E,       SUB 1B,
                                                                   LLC            LLC            LLC          L.P.           LLC
                                                                -----------     ---------    ----------    ----------    ----------
<S>                                                             <C>             <C>          <C>           <C>           <C>
ASSETS
  Property and equipment                                                --         17,439        44,763         5,044        18,557
  Accumulated depreciation                                              --         (2,757)       (9,554)           --        (3,935)
                                                                ----------      ---------    ----------    ----------    ----------
                                                                        --         14,682        35,209         5,044        14,622

  Restricted cash                                                       --             --            --            --            --
  Investments in affiliates                                             43             --            --            --            --
  Due from subsidiaries                                                (43)         7,938        21,079         3,194        15,026
  Note receivable from Interstate Hotels & Resorts                      --             --            --            --            --
  Prepaid expenses and other assets                                     --             (5)          (20)          (15)          (19)
  Accounts receivable, net                                              --            115            --            --            96
  Marketable securities                                                 --             --            --            --            --
  Cash and cash equivalents                                             --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
                                                                        --         22,730        56,268         8,223        29,725
                                                                ==========      =========    ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
  Long-term debt                                                        --             --            --            --            37
  Notes payable to MeriStar Hospitality Corporation                     --             --            --            --            --
  Accounts payable and accrued expenses                                 --            (38)         (367)          253            68
  Accrued interest                                                      --             --            --            --            --
  Due to Interstate Hotels & Resorts                                    --             --            --            --            --
  Other liabilities                                                     --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
  Total liabilities                                                     --            (38)         (367)          253           105
                                                                ----------      ---------    ----------    ----------    ----------

  Minority interests                                                    --             --            --            --            --
  Redeemable OP units at redemption value                               --             --            --            --            --
  Partners' capital - Common OP Units                                   --         22,768        56,635         7,970        29,620
                                                                ----------      ---------    ----------    ----------    ----------
                                                                        --         22,730        56,268         8,223        29,725
                                                                ==========      =========    ==========    ==========    ==========
</TABLE>

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


<TABLE>
<CAPTION>
                                                                 MERISTAR        MERISTAR     MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 5F,        SUB 6G,       SUB 8C,       SUB 4C,       SUB 4H,
                                                                    L.P.           LLC          LLC           L.P            L.P.
                                                                -----------     ---------    ----------    ----------    ----------
<S>                                                             <C>             <C>          <C>           <C>           <C>
ASSETS
   Property and equipment                                           17,292         22,527         5,821            --         4,870
   Accumulated depreciation                                             --         (4,800)         (158)           --           (66)
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    17,292         17,727         5,663            --         4,804

   Restricted cash                                                      --             --            --            --            --
   Investments in affiliates                                            --             --            --            --            --
   Due from subsidiaries                                            12,324          6,389         5,189            --          (761)
   Note receivable from Interstate Hotels & Resorts                     --             --            --            --            --
   Prepaid expenses and other assets                                   (37)            (7)           35            --            (4)
   Accounts receivable, net                                             --             --            --            --            --
   Marketable securities                                                --             --            --            --            --
   Cash and cash equivalents                                            --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    29,579         24,109        10,887            --         4,039
                                                                ==========      =========    ==========    ==========    ==========

 LIABILITIES AND PARTNERS' CAPITAL
   Long-term debt                                                       --             --            --            --            --
   Notes payable to MeriStar Hospitality Corporation                    --             --            --            --            --
   Accounts payable and accrued expenses                               278           (138)         (409)           --           144
   Accrued interest                                                     --             --            --            --            --
   Due to Interstate Hotels & Resorts                                   --             --            --            --            --
   Other liabilities                                                    --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
   Total liabilities                                                   278           (138)         (409)           --           144
                                                                ----------      ---------    ----------    ----------    ----------

   Minority interests                                                   --             --            --            --            --
   Redeemable OP units at redemption value                              --             --            --            --            --
   Partners' capital - Common OP Units                              29,301         24,247        11,296            --         3,895
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    29,579         24,109        10,887            --         4,039
                                                                ==========      =========    ==========    ==========    ==========
</TABLE>


<TABLE>
<CAPTION>
                                                                 MERISTAR       MERISTAR      MERISTAR      MERISTAR      MERISTAR
                                                                 SUB 7E,         SUB 3D,       SUB 1A,        SUB 7A       SUB 2B,
                                                                   LLC             LLC           LLC      JOINT VENTURE      LLC
                                                                ----------      ---------    ----------   -------------  ----------
<S>                                                                    <C>            <C>           <C>           <C>           <C>
ASSETS
   Property and equipment                                           18,211         22,674        11,499         5,845         3,854
   Accumulated depreciation                                         (3,171)        (6,844)       (2,815)          (61)          (75)
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    15,040         15,830         8,684         5,784         3,779

   Restricted cash                                                      --             --            --            --            --
   Investments in affiliates                                            --             --            --            --            --
   Due from subsidiaries                                             6,389          8,343         7,088         4,836        (1,139)
   Note receivable from Interstate Hotels & Resorts                     --             --            --            --            --
   Prepaid expenses and other assets                                    (4)           (10)          (31)           (1)            4
   Accounts receivable, net                                             --             --            --            --           (14)
   Marketable securities                                                --             --            --            --            --
   Cash and cash equivalents                                            --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    21,425         24,163        15,741        10,619         2,630
                                                                ==========      =========    ==========    ==========    ==========

 LIABILITIES AND PARTNERS' CAPITAL
    Long-term debt                                                      --             --            --            --         5,721
    Notes payable to MeriStar Hospitality Corporation                   --             --            --            --            --
    Accounts payable and accrued expenses                               30            164            30           108           (17)
    Accrued interest                                                    --             --            --            --            --
    Due to Interstate Hotels & Resorts                                  --             --            --            --            --
    Other liabilities                                                   --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
    Total liabilities                                                   30            164            30           108         5,704
                                                                ----------      ---------    ----------    ----------    ----------

    Minority interests                                                  --             --            --            --            --
    Redeemable OP units at redemption value                             --             --            --            --            --
    Partners' capital - Common OP Units                             21,395         23,999        15,711        10,511        (3,074)
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    21,425         24,163        15,741        10,619         2,630
                                                                ==========      =========    ==========    ==========    ==========
</TABLE>


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


<TABLE>
<CAPTION>
                                                                 MERISTAR       MERISTAR      MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 3A,         SUB 4A,      SUB 4D,       SUB 2A,       SUB 6L,
                                                                   LLC             L.P.          L.P.          LLC           LLC
                                                                ----------      ---------    ----------    ----------    ----------
<S>                                                                    <C>            <C>           <C>           <C>           <C>
ASSETS
   Property and equipment                                            3,193          3,419            --         4,831        12,619
   Accumulated depreciation                                             --            (31)           --           (64)         (116)
                                                                ----------      ---------    ----------    ----------    ----------
                                                                     3,193          3,388            --         4,767        12,503

   Restricted cash                                                      --             --            --            --            --
   Investments in affiliates                                            --             --            --            --            --
   Due from subsidiaries                                             1,777          4,321         2,922        (1,423)        5,933
   Note receivable from Interstate Hotels & Resorts                     --             --            --            --            --
   Prepaid expenses and other assets                                    (3)            (7)            3            26            (5)
   Accounts receivable, net                                             --             --            --            --            --
   Marketable securities                                                --             --            --            --            --
   Cash and cash equivalents                                            --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
                                                                     4,967          7,702         2,925         3,370        18,431
                                                                ==========      =========    ==========    ==========    ==========

 LIABILITIES AND PARTNERS' CAPITAL
   Long-term debt                                                       --             --            --         9,331            --
   Notes payable to MeriStar Hospitality Corporation                    --             --            --            --            --
   Accounts payable and accrued expenses                               140            285            --            24           (22)
   Accrued interest                                                     --             --            --            --            --
   Due to Interstate Hotels & Resorts                                   --             --            --            --            --
   Other liabilities                                                    --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
   Total liabilities                                                   140            285            --         9,355           (22)
                                                                ----------      ---------    ----------    ----------    ----------

   Minority interests                                                   --             --            --            --            --
   Redeemable OP units at redemption value                              --             --            --            --            --
   Partners' capital - Common OP Units                               4,827          7,417         2,925        (5,985)       18,453
                                                                ----------      ---------    ----------    ----------    ----------
                                                                     4,967          7,702         2,925         3,370        18,431
                                                                ==========      =========    ==========    ==========    ==========
</TABLE>


<TABLE>
<CAPTION>
                                                                    MDV          MERISTAR     MERISTAR      MERISTAR      MERISTAR
                                                                  LIMITED         SUB 5C,      SUB 6J,       SUB 1D,       SUB 7B,
                                                                PARTNERSHIP        LLC          LLC           LLC            L.P.
                                                                ----------      ---------    ----------    ----------    ----------
<S>                                                             <C>             <C>          <C>           <C>           <C>
ASSETS
   Property and equipment                                            3,849          3,903        19,454        68,621         4,759
   Accumulated depreciation                                           (651)           (60)       (3,638)      (11,467)          (57)
                                                                ----------      ---------    ----------    ----------    ----------
                                                                     3,198          3,843        15,816        57,154         4,702

   Restricted cash                                                      --             --            --            --            --
   Investments in affiliates                                            --             --            --            --            --
   Due from subsidiaries                                             2,423            818         7,183        18,787        (3,371)
   Note receivable from Interstate Hotels & Resorts                     --             --            --            --            --
   Prepaid expenses and other assets                                     1            (19)           30          (122)           (8)
   Accounts receivable, net                                             --             --            --            --            --
   Marketable securities                                                --             --            --            --            --
   Cash and cash equivalents                                            --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
                                                                     5,622          4,642        23,029        75,819         1,323
                                                                ==========      =========    ==========    ==========    ==========

 LIABILITIES AND PARTNERS' CAPITAL
   Long-term debt                                                       --             --            --            --            --
   Notes payable to MeriStar Hospitality Corporation                    --             --            --            --            --
   Accounts payable and accrued expenses                                80            836          (276)           84           906
   Accrued interest                                                     --             --            --            --            --
   Due to Interstate Hotels & Resorts                                   --             --            --            --            --
   Other liabilities                                                    --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
   Total liabilities                                                    80            836          (276)           84           906
                                                                ----------      ---------    ----------    ----------    ----------

   Minority interests                                                   --             --            --            --            --
   Redeemable OP units at redemption value                              --             --            --            --            --
   Partners' capital - Common OP Units                               5,542          3,806        23,305        75,735           417
                                                                ----------      ---------    ----------    ----------    ----------
                                                                     5,622          4,642        23,029        75,819         1,323
                                                                ==========      =========    ==========    ==========    ==========
</TABLE>

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


<TABLE>
<CAPTION>
                                                                 MERISTAR        MERISTAR     MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 7D,         SUB 7G,      SUB 6B,       SUB 4I,       SUB 5D,
                                                                    LLC            LLC          LLC            L.P.          LLC
                                                                ----------      ---------    ----------    ----------    ----------
<S>                                                             <C>             <C>          <C>           <C>           <C>
ASSETS
   Property and equipment                                           52,241          4,878        10,781         2,440        42,047
   Accumulated depreciation                                         (9,362)          (104)       (2,076)          (78)       (7,738)
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    42,879          4,774         8,705         2,362        34,309

   Restricted cash                                                      --             --            --            --            --
   Investments in affiliates                                            --             --            --            --        51,368
   Due from subsidiaries                                            24,174            233         2,888           639        (6,576)
   Note receivable from Interstate Hotels & Resorts                     --             --            --            --            --
   Prepaid expenses and other assets                                   226             (6)           (1)            5            (3)
   Accounts receivable, net                                          1,030             --            --            --            --
   Marketable securities                                                --             --            --            --            --
   Cash and cash equivalents                                            --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    68,309          5,001        11,592         3,006        79,098
                                                                ==========      =========    ==========    ==========    ==========

 LIABILITIES AND PARTNERS' CAPITAL
   Long-term debt                                                       --             --            --            --        24,000
   Notes payable to MeriStar Hospitality Corporation                    --             --            --            --            --
   Accounts payable and accrued expenses                             3,642            (54)         (156)          332           247
   Accrued interest                                                     --             --            --            --            --
   Due to Interstate Hotels & Resorts                                 (200)            --            --            --            --
   Other liabilities                                                    --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
   Total liabilities                                                 3,442            (54)         (156)          332        24,247
                                                                ----------      ---------    ----------    ----------    ----------

   Minority interests                                                   --             --            --            --            --
   Redeemable OP units at redemption value                              --             --            --            --            --
   Partners' capital - Common OP Units                              64,867          5,055        11,748         2,674        54,851
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    68,309          5,001        11,592         3,006        79,098
                                                                ==========      =========    ==========    ==========    ==========
</TABLE>


<TABLE>
<CAPTION>
                                                                 MERISTAR        MERISTAR       AGH         MERISTAR      MERISTAR
                                                                  SUB 5H,         SUB 7H,      PSS I,        SUB 2D,       SUB 4F,
                                                                   LLC             LLC          INC.          LLC            L.P.
                                                                ----------      ---------    ----------    ----------    ----------
<S>                                                             <C>             <C>          <C>           <C>           <C>
ASSETS
   Property and equipment                                               --          4,247            --         5,799        32,387
   Accumulated depreciation                                             --            (43)           --           (81)       (5,530)
                                                                ----------      ---------    ----------    ----------    ----------
                                                                        --          4,204            --         5,718        26,857

   Restricted cash                                                      --             --            --            --            --
   Investments in affiliates                                            --             --            --            --            --
   Due from subsidiaries                                            35,086          6,225        25,570           602         4,996
   Note receivable from Interstate Hotels & Resorts                     --             --            --            --            --
   Prepaid expenses and other assets                                    --              2            --             2            (6)
   Accounts receivable, net                                             --             --            --            --            --
   Marketable securities                                                --             --            --            --            --
   Cash and cash equivalents                                            --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    35,086         10,431        25,570         6,322        31,847
                                                                ==========      =========    ==========    ==========    ==========

 LIABILITIES AND PARTNERS' CAPITAL
   Long-term debt                                                       --             13            --        10,812            --
   Notes payable to MeriStar Hospitality Corporation                    --             --            --            --            --
   Accounts payable and accrued expenses                                (2)           198            --           (34)          290
   Accrued interest                                                     --             --            --            --            --
   Due to Interstate Hotels & Resorts                                   --             --            --            --            --
   Other liabilities                                                    --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
   Total liabilities                                                    (2)           211            --        10,778           290
                                                                ----------      ---------    ----------    ----------    ----------

   Minority interests                                                   --             --            --            --            --
   Redeemable OP units at redemption value                              --             --            --            --            --
   Partners' capital - Common OP Units                              35,088         10,220        25,570        (4,456)       31,557
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    35,086         10,431        25,570         6,322        31,847
                                                                ==========      =========    ==========    ==========    ==========
</TABLE>

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


<TABLE>
<CAPTION>
                                                                  MERISTAR       MERISTAR      MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 5K,         SUB 5M,       SUB 1E,       SUB 5O,       SUB 4B,
                                                                    LLC            LLC           L.P.           LLC          L.P.
                                                                ----------      ---------    ----------    ----------    ----------
<S>                                                             <C>             <C>          <C>           <C>           <C>
ASSETS
   Property and equipment                                           28,238         22,041        10,477         8,735         7,273
   Accumulated depreciation                                         (4,882)        (2,237)       (1,886)       (1,087)           --
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    23,356         19,804         8,591         7,648         7,273

   Restricted cash                                                      --             --            --            --            --
   Investments in affiliates                                            --             --            --            --            --
   Due from subsidiaries                                              (530)         7,769         8,370         3,021        (4,810)
   Note receivable from Interstate Hotels & Resorts                     --             --            --            --            --
   Prepaid expenses and other assets                                   (43)           (29)          (13)           (9)           (5)
   Accounts receivable, net                                             --             --            --            --            --
   Marketable securities                                                --             --            --            --            --
   Cash and cash equivalents                                            --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    22,783         27,544        16,948        10,660         2,458
                                                                ==========      =========    ==========    ==========    ==========

 LIABILITIES AND PARTNERS' CAPITAL
   Long-term debt                                                       --             --            --            --            --
   Notes payable to MeriStar Hospitality Corporation                    --             --            --            --            --
   Accounts payable and accrued expenses                             3,201            130          (126)           44           353
   Accrued interest                                                     --             --            --            --            --
   Due to Interstate Hotels & Resorts                                   --             --            --            --            --
   Other liabilities                                                    --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
   Total liabilities                                                 3,201            130          (126)           44           353
                                                                ----------      ---------    ----------    ----------    ----------

   Minority interests                                                   --             --            --            --            --
   Redeemable OP units at redemption value                              --             --            --            --            --
   Partners' capital - Common OP Units                              19,582         27,414        17,074        10,616         2,105
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    22,783         27,544        16,948        10,660         2,458
                                                                ==========      =========    ==========    ==========    ==========
</TABLE>


<TABLE>
<CAPTION>
                                                                 MERISTAR        MERISTAR     MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 2C,         SUB 4G,      SUB 3B,       SUB 5G,       SUB 5P,
                                                                    LLC            L.P.         LLC            L.P.          LLC
                                                                ----------      ---------    ----------    ----------    ----------
<S>                                                             <C>             <C>          <C>           <C>           <C>
ASSETS
   Property and equipment                                           10,523         12,566            --       163,814            39
   Accumulated depreciation                                           (175)            --            --       (28,929)          (22)
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    10,348         12,566            --       134,885            17

   Restricted cash                                                      --             --            --            --            --
   Investments in affiliates                                            --             --            --            --            --
   Due from subsidiaries                                             5,206          8,295         8,540        42,027         2,934
   Note receivable from Interstate Hotels & Resorts                     --             --            --            --            --
   Prepaid expenses and other assets                                   (19)           (52)           (3)         (146)           (2)
   Accounts receivable, net                                             --             --            --            --            --
   Marketable securities                                                --             --            --            --            --
   Cash and cash equivalents                                            --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    15,535         20,809         8,537       176,766         2,949
                                                                ==========      =========    ==========    ==========    ==========

 LIABILITIES AND PARTNERS' CAPITAL
   Long-term debt                                                   18,883             --            --            --            --
   Notes payable to MeriStar Hospitality Corporation                    --             --            --            --            --
   Accounts payable and accrued expenses                               141            380            --         1,537            --
   Accrued interest                                                     --             --            --            --            --
   Due to Interstate Hotels & Resorts                                   --             --            --            --            --
   Other liabilities                                                    --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
   Total liabilities                                                19,024            380            --         1,537            --
                                                                ----------      ---------    ----------    ----------    ----------

   Minority interests                                                   --             --            --            --            --
   Redeemable OP units at redemption value                              --             --            --            --            --
   Partners' capital - Common OP Units                              (3,489)        20,429         8,537       175,229         2,949
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    15,535         20,809         8,537       176,766         2,949
                                                                ==========      =========    ==========    ==========    ==========
</TABLE>

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


<TABLE>
<CAPTION>
                                                                 MERISTAR        MERISTAR     MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 5J,         SUB 5Q,      SUB 5A,       SUB 8D,       SUB 4J,
                                                                   LLC             LLC          LLC           LLC           LLC
                                                                ----------      ---------    ----------    ----------    ----------
<S>                                                             <C>             <C>          <C>           <C>           <C>
ASSETS
   Property and equipment                                          109,816         16,682        35,380         9,237        38,231
   Accumulated depreciation                                        (15,946)        (2,129)      (10,422)         (120)       (6,812)
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    93,870         14,553        24,958         9,117        31,419

   Restricted cash                                                      --             --            --            --            --
   Investments in affiliates                                            --             --         4,627            --            --
   Due from subsidiaries                                            21,791          4,550         6,751         7,958         7,217
   Note receivable from Interstate Hotels & Resorts                     --             --            --            --            --
   Prepaid expenses and other assets                                  (227)           (31)          (18)           (6)          (12)
   Accounts receivable, net                                             --             --            --            --           (16)
   Marketable securities                                                --             --            --            --            --
   Cash and cash equivalents                                            --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
                                                                   115,434         19,072        36,318        17,069        38,608
                                                                ==========      =========    ==========    ==========    ==========

 LIABILITIES AND PARTNERS' CAPITAL
   Long-term debt                                                       --             --        23,609            --            --
   Notes payable to MeriStar Hospitality Corporation                    --             --            --            --            --
   Accounts payable and accrued expenses                               673            (97)          356          (166)          193
   Accrued interest                                                     --             --            --            --            --
   Due to Interstate Hotels & Resorts                                   --             --            --            --            --
   Other liabilities                                                    --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
   Total liabilities                                                   673            (97)       23,965          (166)          193
                                                                ----------      ---------    ----------    ----------    ----------

   Minority interests                                                   --             --            --            --            --
   Redeemable OP units at redemption value                              --             --            --            --            --
   Partners' capital - Common OP Units                             114,761         19,169        12,353        17,235        38,415
                                                                ----------      ---------    ----------    ----------    ----------
                                                                   115,434         19,072        36,318        17,069        38,608
                                                                ==========      =========    ==========    ==========    ==========
</TABLE>


<TABLE>
<CAPTION>
                                                                  MERISTAR     GUARANTOR
                                                                   HOTEL      SUBSIDIARIES                   TOTAL
                                                                LESSEE, INC.      TOTAL     ELIMINATIONS  CONSOLIDATED
                                                                ------------  ------------  ------------  ------------
<S>                                                             <C>           <C>           <C>           <C>
ASSETS
   Property and equipment                                            3,146      1,140,528            --     2,577,640
   Accumulated depreciation                                         (3,018)      (180,328)           --      (426,576)
                                                                ----------    ------------  ------------  ------------
                                                                       128        960,200            --     2,151,064

   Restricted cash                                                      --            115            --        38,403
   Investments in affiliates                                            --         59,131    (2,300,410)       40,000
   Due from subsidiaries                                               435        423,820            --            --
   Note receivable from Interstate Hotels & Resorts                     --             --      (120,855)           --
   Prepaid expenses and other assets                                16,481         15,829            --        42,437
   Accounts receivable, net                                         45,757         46,968            --        64,469
   Marketable securities                                                --             --            --         1,000
   Cash and cash equivalents                                        18,826         18,826            --       270,274
                                                                ----------      ---------    ----------    ----------
                                                                    81,627      1,524,889    (2,421,265)    2,607,647
                                                                ==========      =========    ==========    ==========

 LIABILITIES AND PARTNERS' CAPITAL
   Long-term debt                                                   67,332        159,738      (120,855)    1,392,032
   Notes payable to MeriStar Hospitality Corporation                    --             --            --       337,093
   Accounts payable and accrued expenses                            55,273         71,866            --       100,324
   Accrued interest                                                    314            314            --        40,185
   Due to Interstate Hotels & Resorts                                5,373          5,173            --         5,969
   Other liabilities                                                 8,852          8,852            --        12,734
                                                                ----------      ---------    ----------    ----------
   Total liabilities                                               137,144        245,943      (120,855)    1,888,337
                                                                ----------      ---------    ----------    ----------

   Minority interests                                                   --             --            --         2,565
   Redeemable OP units at redemption value                              --             --            --        33,535
   Partners' capital - Common OP Units                             (55,517)     1,278,946    (2,300,410)      683,210
                                                                ----------      ---------    ----------    ----------
                                                                    81,627      1,524,889    (2,421,265)    2,607,647
                                                                ==========      =========    ==========    ==========
</TABLE>







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


<TABLE>
<CAPTION>
                                                                 MERISTAR          NON-       MERISTAR        AGH         MERISTAR
                                                                HOSPITALITY     GUARANTOR       SUB 7C,      UPREIT,       SUB 5N,
                                                                  OP, L.P.    SUBSIDIARIES       LLC           LLC           LLC
                                                                ----------      ---------    ----------    ----------    ----------
<S>                                                             <C>           <C>            <C>           <C>           <C>
ASSET
    Property and equipment                                          16,986      1,467,405            --            --         4,117
    Accumulated depreciation                                        (8,686)      (220,927)           --            --          (541)
                                                                ----------      ---------    ----------    ----------    ----------
                                                                     8,300      1,246,478            --            --         3,576

    Restricted cash                                                 15,374          4,876            --            --            --
    Investments in and advances to affiliates                    2,590,345          8,200            32         3,056            --
    Due from subsidiaries                                         (595,139)       196,324            --            66         3,522
    Note receivable from Interstate Hotels & Resorts               150,657             --            --            --            --
    Prepaid expenses and other assets                               22,541            304            --            --            --
    Accounts receivable, net of allowance for doubtful accounts     11,944          1,313            --            --            --
    Cash and cash equivalents                                       21,372             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
                                                                 2,225,394      1,457,495            32         3,122         7,098
                                                                ==========      =========    ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
    Long-term debt                                                 945,830        352,052            --            --            --
    Notes payable to MeriStar Hospitality Corporation              357,505             --            --            --            --
    Accounts payable and accrued expenses                           15,585          9,733            --            --             7
    Accrued interest                                                49,106          3,577            --            --            --
    Due to Interstate Hotels & Resorts                                 372             --            --            --            --
    Other liabilities                                                4,591             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
    Total liabilities                                            1,372,989        365,362            --            --             7
                                                                ----------      ---------    ----------    ----------    ----------

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


<TABLE>
<CAPTION>
                                                                 MERISTAR        MERISTAR     MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 8A,         SUB 8F,      SUB 8G,       SUB 6H,       SUB 8B,
                                                                   LLC             L.P.         LLC           L.P.           LLC
                                                                ----------      ---------    ----------    ----------    ----------
<S>                                                             <C>           <C>            <C>           <C>           <C>
ASSETS
    Property and equipment                                              --         11,471            --        13,635        81,872
    Accumulated depreciation                                            --         (1,933)           --        (1,877)       (9,874)
                                                                ----------      ---------    ----------    ----------    ----------
                                                                        --          9,538            --        11,758        71,998

    Restricted cash                                                     --            115            --            --            --
    Investments in and advances to affiliates                           --             --            72            --            --
    Due from subsidiaries                                            4,879          5,385            10         5,770        26,553
    Note receivable from Interstate Hotels & Resorts                    --             --            --            --            --
    Prepaid expenses and other assets                                   --              2            --            --            32
    Accounts receivable, net of allowance for doubtful accounts        (17)           (28)           --            --            --
    Cash and cash equivalents                                           --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
                                                                     4,862         15,012            82        17,528        98,583
                                                                ==========      =========    ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
    Long-term debt                                                      --             --            --            --            --
    Notes payable to MeriStar Hospitality Corporation                   --             --            --            --            --
    Accounts payable and accrued expenses                             (132)           207            --           179         2,626
    Accrued interest                                                    --             --            --            --            --
    Due to Interstate Hotels & Resorts                                  --             --            --            --            --
    Other liabilities                                                   --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
    Total liabilities                                                 (132)           207            --           179         2,626
                                                                ----------      ---------    ----------    ----------    ----------

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

<TABLE>
<CAPTION>
                                                                 MERISTAR        MERISTAR     MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 1C,         SUB 8E,      SUB 7F,       SUB 5L,       SUB 3C,
                                                                   L.P.            LLC          LLC           LLC            LLC
                                                                ----------      ---------    ----------    ----------    ----------
<S>                                                             <C>             <C>          <C>           <C>           <C>
ASSETS
    Property and equipment                                          25,327         15,274        12,046        11,579        17,380
    Accumulated depreciation                                        (4,885)        (2,441)       (2,453)         (504)       (2,998)
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    20,442         12,833         9,593        11,075        14,382

    Restricted cash                                                     --             --            --            --            --
    Investments in and advances to affiliates                           --             --            --            --            --
    Due from subsidiaries                                           (2,994)         5,641         4,366         3,676         3,935
    Note receivable from Interstate Hotels & Resorts                    --             --            --            --            --
    Prepaid expenses and other assets                                   --             --            --            --            48
    Accounts receivable, net of allowance for doubtful accounts         --             --            --            28            --
    Cash and cash equivalents                                           --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    17,448         18,474        13,959        14,779        18,365
                                                                ==========      =========    ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
    Long-term debt                                                      --             --            --            --            --
    Notes payable to MeriStar Hospitality Corporation                   --             --            --            --            --
    Accounts payable and accrued expenses                              186             (8)          162            35           208
    Accrued interest                                                    --             --            --            --            --
    Due to Interstate Hotels & Resorts                                  --             --            --            --            --
    Other liabilities                                                   --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
    Total liabilities                                                  186             (8)          162            35           208
                                                                ----------      ---------    ----------    ----------    ----------

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


<TABLE>
<CAPTION>
                                                                 MERISTAR        MERISTAR     MERISTAR      MERISTAR      MERISTAR
                                                                 SUB 5R,          SUB 6D,      SUB 6E,       SUB 4E,       SUB 1B,
                                                                   LLC             LLC          LLC           L.P.           LLC
                                                                ----------      ---------    ----------    ----------    ----------
<S>                                                             <C>             <C>          <C>           <C>           <C>
ASSETS
    Property and equipment                                              --         17,430        44,495        24,741        18,416
    Accumulated depreciation                                            --         (2,347)       (8,334)       (3,986)       (3,529)
                                                                ----------      ---------    ----------    ----------    ----------
                                                                        --         15,083        36,161        20,755        14,887

    Restricted cash                                                     --             --            --            --            --
    Investments in and advances to affiliates                           43             --            --            --            --
    Due from subsidiaries                                              (43)         6,781        18,092         2,772        12,954
    Note receivable from Interstate Hotels & Resorts                    --             --            --            --            --
    Prepaid expenses and other assets                                   --             --            --             2             1
    Accounts receivable, net of allowance for doubtful accounts         --            101            --            --            96
    Cash and cash equivalents                                           --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
                                                                        --         21,965        54,253        23,529        27,938
                                                                ==========      =========    ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
    Long-term debt                                                      --             --            --            --            48
    Notes payable to MeriStar Hospitality Corporation                   --             --            --            --            --
    Accounts payable and accrued expenses                               --             18          (132)          415            51
    Accrued interest                                                    --             --            --            --            --
    Due to Interstate Hotels & Resorts                                  --             --            --            --            --
    Other liabilities                                                   --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
    Total liabilities                                                   --             18          (132)          415            99
                                                                ----------      ---------    ----------    ----------    ----------

    Minority interests                                                  --             --            --            --            --
    Redeemable OP units at redemption value                             --             --            --            --            --
    Partners' capital - Common OP Units                                 --         21,947        54,385        23,114        27,839
                                                                ----------      ---------    ----------    ----------    ----------
                                                                        --         21,965        54,253        23,529        27,938
                                                                ==========      =========    ==========    ==========    ==========
</TABLE>

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


<TABLE>
<CAPTION>
                                                                 MERISTAR       MERISTAR      MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 5F,         SUB 6G,       SUB 8C,       SUB 4C,       SUB 4H,
                                                                   L.P.            LLC           LLC          L.P.          L.P.
                                                                ----------      ---------    ----------    ----------    ----------
<S>                                                             <C>             <C>          <C>           <C>           <C>
ASSETS
    Property and equipment                                          31,539         22,381        11,400            --        12,462
    Accumulated depreciation                                        (4,421)        (4,166)           --            --        (2,253)
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    27,118         18,215        11,400            --        10,209

    Restricted cash                                                     --             --            --            --            --
    Investments in and advances to affiliates                           --             --            --            --            --
    Due from subsidiaries                                           10,473          5,200         4,587        11,521          (738)
    Note receivable from Interstate Hotels & Resorts                    --             --            --            --            --
    Prepaid expenses and other assets                                    5             --             1            --            14
    Accounts receivable, net of allowance for doubtful accounts         --             --            --             1            --
    Cash and cash equivalents                                           --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    37,596         23,415        15,988        11,522         9,485
                                                                ==========      =========    ==========    ==========    ==========


LIABILITIES AND PARTNERS' CAPITAL
    Long-term debt                                                      --             --            --            --            --
    Notes payable to MeriStar Hospitality Corporation                   --             --            --            --            --
    Accounts payable and accrued expenses                              170            108           (77)           98           172
    Accrued interest                                                    --             --            --            --            --
    Due to Interstate Hotels & Resorts                                  --             --            --            --            --
    Other liabilities                                                   --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
    Total liabilities                                                  170            108           (77)           98           172
                                                                ----------      ---------    ----------    ----------    ----------

    Minority interests                                                  --             --            --            --            --
    Redeemable OP units at redemption value                             --             --            --            --            --
    Partners' capital - Common OP Units                             37,426         23,307        16,065        11,424         9,313
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    37,596         23,415        15,988        11,522         9,485
                                                                ==========      =========    ==========    ==========    ==========
</TABLE>


<TABLE>
<CAPTION>
                                                                                                                          MERISTAR
                                                                 MERISTAR       MERISTAR      MERISTAR      MERISTAR       SUB 7A
                                                                  SUB 7E,        SUB 3D,       SUB 1A,       SUB 5E,       JOINT
                                                                   LLC            LLC           LLC           LLC         VENTURE
                                                                ----------      ---------    ----------    ----------    ----------
<S>                                                             <C>             <C>          <C>           <C>           <C>
ASSETS
    Property and equipment                                          17,972         22,549        11,318        52,868        13,161
    Accumulated depreciation                                        (2,711)        (6,261)       (2,478)       (8,155)       (1,761)
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    15,261         16,288         8,840        44,713        11,400

    Restricted cash                                                     --             --            --            --            --
    Investments in and advances to affiliates                           --             --            --            --            --
    Due from subsidiaries                                            5,820          7,409         6,231        14,226         4,352
    Note receivable from Interstate Hotels & Resorts                    --             --            --            --            --
    Prepaid expenses and other assets                                    3             --            --             1             5
    Accounts receivable, net of allowance for doubtful accounts         --             --            --            --            --
    Cash and cash equivalents                                           --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    21,084         23,697        15,071        58,940        15,757
                                                                ==========      =========    ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
    Long-term debt                                                      --             --            --            --            --
    Notes payable to MeriStar Hospitality Corporation                   --             --            --            --            --
    Accounts payable and accrued expenses                               86             61           121           184           218
    Accrued interest                                                    --             --            --            --            --
    Due to Interstate Hotels & Resorts                                  --             --            --            --            --
    Other liabilities                                                   --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
    Total liabilities                                                   86             61           121           184           218
                                                                ----------      ---------    ----------    ----------    ----------

    Minority interests                                                  --             --            --            --            --
    Redeemable OP units at redemption value                             --             --            --            --            --
    Partners' capital - Common OP Units                             20,998         23,636        14,950        58,756        15,539
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    21,084         23,697        15,071        58,940        15,757
                                                                ==========      =========    ==========    ==========    ==========
</TABLE>

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


<TABLE>
<CAPTION>
                                                                 MERISTAR        MERISTAR     MERISTAR      MERISTAR      MERISTAR
                                                                 SUB 6K,          SUB 2B,      SUB 3A,       SUB 4A,       SUB 4D,
                                                                   LLC              LLC          LLC          L.P.          L.P.
                                                                ----------      ---------    ----------    ----------    ----------
<S>                                                             <C>             <C>          <C>           <C>           <C>
ASSETS
    Property and equipment                                          22,855          9,672         5,740         4,617         4,037
    Accumulated depreciation                                        (4,296)        (1,985)         (254)           --            --
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    18,559          7,687         5,486         4,617         4,037

    Restricted cash                                                     --             --            --            --            --
    Investments in and advances to affiliates                           --             --            --            --            --
    Due from subsidiaries                                           16,890           (804)        1,500         4,097           (74)
    Note receivable from Interstate Hotels & Resorts                    --             --            --            --            --
    Prepaid expenses and other assets                                   --              1            --            --            21
    Accounts receivable, net of allowance for doubtful accounts         --            (12)           --            --            --
    Cash and cash equivalents                                           --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    35,449          6,872         6,986         8,714         3,984
                                                                ==========      =========    ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
    Long-term debt                                                      --          4,890            --            --            --
    Notes payable to MeriStar Hospitality Corporation                   --             --            --            --            --
    Accounts payable and accrued expenses                              122             75           163           346           112
    Accrued interest                                                    --             --            --            --            --
    Due to Interstate Hotels & Resorts                                  --             --            --            --            --
    Other liabilities                                                   --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
    Total liabilities                                                  122          4,965           163           346           112
                                                                ----------      ---------    ----------    ----------    ----------

    Minority interests                                                  --             --            --            --            --
    Redeemable OP units at redemption value                             --             --            --            --            --
    Partners' capital - Common OP Units                             35,327          1,907         6,823         8,368         3,872
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    35,449          6,872         6,986         8,714         3,984
                                                                ==========      =========    ==========    ==========    ==========
</TABLE>


<TABLE>
<CAPTION>
                                                                 MERISTAR       MERISTAR        MDV         MERISTAR      MERISTAR
                                                                 SUB 2A,         SUB 6L,       LIMITED       SUB 5C,       SUB 6J,
                                                                   LLC             LLC       PARTNERSHIP       LC            LLC
                                                                ----------      ---------    ----------    ----------    ----------
<S>                                                             <C>             <C>          <C>           <C>           <C>
ASSETS
    Property and equipment                                           8,294         29,650         3,838        14,088        19,412
    Accumulated depreciation                                        (1,464)        (3,354)         (547)       (2,812)       (3,208)
                                                                ----------      ---------    ----------    ----------    ----------
                                                                     6,830         26,296         3,291        11,276        16,204

    Restricted cash                                                     --             --            --            --            --
    Investments in and advances to affiliates                           --             --            --            --            --
    Due from subsidiaries                                             (884)         4,928         2,169           242         5,957
    Note receivable from Interstate Hotels & Resorts                    --             --            --            --            --
    Prepaid expenses and other assets                                   21             --             9            70            45
    Accounts receivable, net of allowance for doubtful accounts         --             --            --            --            --
    Cash and cash equivalents                                           --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
                                                                     5,967         31,224         5,469        11,588        22,206
                                                                ==========      =========    ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
    Long-term debt                                                   7,977             --            --            --            --
    Notes payable to MeriStar Hospitality Corporation                   --             --            --            --            --
    Accounts payable and accrued expenses                               65             51            95           866          (116)
    Accrued interest                                                    --             --            --            --            --
    Due to Interstate Hotels & Resorts                                  --             --            --            --            --
    Other liabilities                                                   --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
    Total liabilities                                                8,042             51            95           866          (116)
                                                                ----------      ---------    ----------    ----------    ----------

    Minority interests                                                  --             --            --            --            --
    Redeemable OP units at redemption value                             --             --            --            --            --
    Partners' capital - Common OP Units                             (2,075)        31,173         5,374        10,722        22,322
                                                                ----------      ---------    ----------    ----------    ----------
                                                                     5,967         31,224         5,469        11,588        22,206
                                                                ==========      =========    ==========    ==========    ==========
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2002
(DOLLARS IN THOUSANDS)


<TABLE>
<CAPTION>
                                                                 MERISTAR        MERISTAR     MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 1D,         SUB 7B,      SUB 7D,       SUB 7G,       SUB 6B,
                                                                   LLC             L.P.          LLC           LLC           LLC
                                                                ----------      ---------    ----------    ----------    ----------
<S>                                                             <C>             <C>          <C>           <C>           <C>
ASSETS
    Property and equipment                                          68,456         15,314        52,184        16,620        10,645
    Accumulated depreciation                                        (9,754)            --        (8,132)       (4,107)       (1,742)
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    58,702         15,314        44,052        12,513         8,903

    Restricted cash                                                     --             --            --            --            --
    Investments in and advances to affiliates                           --             --            --            --            --
    Due from subsidiaries                                           16,638         (3,681)       21,885           122         2,423
    Note receivable from Interstate Hotels & Resorts                    --             --            --            --            --
    Prepaid expenses and other assets                                   11             --           309             1             3
    Accounts receivable, net of allowance for doubtful accounts         --             --         1,026            --            --
    Cash and cash equivalents                                           --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    75,351         11,633        67,272        12,636        11,329
                                                                ==========      =========    ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
    Long-term debt                                                      --             --            --            --            --
    Notes payable to MeriStar Hospitality Corporation                   --             --            --            --            --
    Accounts payable and accrued expenses                               20          1,148         4,552            37           (95)
    Accrued interest                                                   117             --            --            --            --
    Due to Interstate Hotels & Resorts                                  --             --          (200)           --            --
    Other liabilities                                                   --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
    Total liabilities                                                  137          1,148         4,352            37           (95)
                                                                ----------      ---------    ----------    ----------    ----------

    Minority interests                                                  --             --            --            --            --
    Redeemable OP units at redemption value                             --             --            --            --            --
    Partners' capital - Common OP Units                             75,214         10,485        62,920        12,599        11,424
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    75,351         11,633        67,272        12,636        11,329
                                                                ==========      =========    ==========    ==========    ==========
</TABLE>


<TABLE>
<CAPTION>
                                                                 MERISTAR        MERISTAR     MERISTAR      MERISTAR        AGH
                                                                  SUB 4I,         SUB 5D,      SUB 5H,       SUB 7H,        PSS I,
                                                                   L.P.            LLC          LLC           LLC           INC.
                                                                ----------      ---------    ----------    ----------    ----------
<S>                                                             <C>             <C>          <C>           <C>           <C>
ASSETS
    Property and equipment                                           3,800         42,013        53,422         5,700        17,855
    Accumulated depreciation                                            --         (6,645)       (7,989)           --        (2,049)
                                                                ----------      ---------    ----------    ----------    ----------
                                                                     3,800         35,368        45,433         5,700        15,806

    Restricted cash                                                     --             --            --            --            --
    Investments in and advances to affiliates                           --         51,368            --            --            --
    Due from subsidiaries                                              895         (7,027)        8,773         5,754        10,810
    Note receivable from Interstate Hotels & Resorts                    --             --            --            --            --
    Prepaid expenses and other assets                                   --             18            --            --            --
    Accounts receivable, net of allowance for doubtful accounts         --             --            --            --            --
    Cash and cash equivalents                                           --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
                                                                     4,695         79,727        54,206        11,454        26,616
                                                                ==========      =========    ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
    Long-term debt                                                      --         24,000            --            13            --
    Notes payable to MeriStar Hospitality Corporation                   --             --            --            --            --
    Accounts payable and accrued expenses                              411            206           146           267           107
    Accrued interest                                                    --             --            --            --            --
    Due to Interstate Hotels & Resorts                                  --             --            --            --            --
    Other liabilities                                                   --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
    Total liabilities                                                  411         24,206           146           280           107
                                                                ----------      ---------    ----------    ----------    ----------

    Minority interests                                                  --             --            --            --            --
    Redeemable OP units at redemption value                             --             --            --            --            --
    Partners' capital - Common OP Units                              4,284         55,521        54,060        11,174        26,509
                                                                ----------      ---------    ----------    ----------    ----------
                                                                     4,695         79,727        54,206        11,454        26,616
                                                                ==========      =========    ==========    ==========    ==========
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2002
(DOLLARS IN THOUSANDS)


<TABLE>
<CAPTION>
                                                                 MERISTAR       MERISTAR      MERISTAR      MERISTAR      MERISTAR
                                                                 SUB 2D,         SUB 4F,       SUB 5K,       SUB 5M,       SUB 1E,
                                                                   LLC            L.P.           LLC           LLC          L.P.
                                                                ----------      ---------    ----------    ----------    ----------
<S>                                                             <C>             <C>          <C>           <C>           <C>
ASSETS
    Property and equipment                                          15,465         31,912        28,057        22,022        10,457
    Accumulated depreciation                                        (2,435)        (4,714)       (3,916)       (1,883)       (1,649)
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    13,030         27,198        24,141        20,139         8,808

    Restricted cash                                                     --             --            --            --            --
    Investments in and advances to affiliates                           --             --            --            --            --
    Due from subsidiaries                                              416          4,392          (705)        6,601         7,355
    Note receivable from Interstate Hotels & Resorts                    --             --            --            --            --
    Prepaid expenses and other assets                                    1             12            --            --            --
    Accounts receivable, net of allowance for doubtful accounts         --             --            --            --            --
    Cash and cash equivalents                                           --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    13,447         31,602        23,436        26,740        16,163
                                                                ==========      =========    ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
    Long-term debt                                                   9,243             --            --            --            --
    Notes payable to MeriStar Hospitality Corporation                   --             --            --            --            --
    Accounts payable and accrued expenses                               63            399         4,316            48            13
    Accrued interest                                                    --             --            --            --            --
    Due to Interstate Hotels & Resorts                                  --             --            --            --            --
    Other liabilities                                                   --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
    Total liabilities                                                9,306            399         4,316            48            13
                                                                ----------      ---------    ----------    ----------    ----------

    Minority interests                                                  --             --            --            --            --
    Redeemable OP units at redemption value                             --             --            --            --            --
    Partners' capital - Common OP Units                              4,141         31,203        19,120        26,692        16,150
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    13,447         31,602        23,436        26,740        16,163
                                                                ==========      =========    ==========    ==========    ==========
</TABLE>


<TABLE>
<CAPTION>
                                                                 MERISTAR        MERISTAR     MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 5O,         SUB 6M       SUB 4B,       SUB 6C,       SUB 2C,
                                                                   LLC           COMPANY        L.P.           LLC           LLC
                                                                ----------      ---------    ----------    ----------    ----------
<S>                                                             <C>             <C>          <C>           <C>           <C>
ASSETS
    Property and equipment                                           8,727         32,975         8,265        20,855        28,658
    Accumulated depreciation                                          (916)        (4,779)           --        (3,592)       (5,385)
                                                                ----------      ---------    ----------    ----------    ----------
                                                                     7,811         28,196         8,265        17,263        23,273

    Restricted cash                                                     --             --            --            --            --
    Investments in and advances to affiliates                           --             --            --            --            --
    Due from subsidiaries                                            2,486         15,876        (4,592)       10,175         4,873
    Note receivable from Interstate Hotels & Resorts                    --             --            --            --            --
    Prepaid expenses and other assets                                   --             21            --            --             1
    Accounts receivable, net of allowance for doubtful accounts         --             --            --            --            --
    Cash and cash equivalents                                           --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    10,297         44,093         3,673        27,438        28,147
                                                                ==========      =========    ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
    Long-term debt                                                      --             --            --            --        16,143
    Notes payable to MeriStar Hospitality Corporation                   --             --            --            --            --
    Accounts payable and accrued expenses                                7           (117)          443          (142)          238
    Accrued interest                                                    --             --            --            --            --
    Due to Interstate Hotels & Resorts                                  --             --            --            --            --
    Other liabilities                                                   --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
    Total liabilities                                                    7           (117)          443          (142)       16,381
                                                                ----------      ---------    ----------    ----------    ----------

    Minority interests                                                  --             --            --            --            --
    Redeemable OP units at redemption value                             --             --            --            --            --
    Partners' capital - Common OP Units                             10,290         44,210         3,230        27,580        11,766
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    10,297         44,093         3,673        27,438        28,147
                                                                ==========      =========    ==========    ==========    ==========
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2002
(DOLLARS IN THOUSANDS)


<TABLE>
<CAPTION>
                                                                 MERISTAR        MERISTAR     MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 4G,         SUB 3B,      SUB 5G,       SUB 5P,       SUB 5J,
                                                                   L.P.            LLC          L.P.           LLC           LLC
                                                                ----------      ---------    ----------    ----------    ----------
<S>                                                             <C>             <C>          <C>           <C>           <C>
ASSETS
    Property and equipment                                          25,601          8,550       163,237            39       107,471
    Accumulated depreciation                                        (4,015)            --       (24,213)          (18)      (13,334)
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    21,586          8,550       139,024            21        94,137

    Restricted cash                                                     --             --            --            --            --
    Investments in and advances to affiliates                           --             --            --            --            --
    Due from subsidiaries                                            7,456          2,201        35,538         1,989        17,649
    Note receivable from Interstate Hotels & Resorts                    --             --            --            --            --
    Prepaid expenses and other assets                                    9             --             5            --            --
    Accounts receivable, net of allowance for doubtful accounts         --             --            --            --            --
    Cash and cash equivalents                                           --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    29,051         10,751       174,567         2,010       111,786
                                                                ==========      =========    ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
    Long-term debt                                                      --             --            --            --            --
    Notes payable to MeriStar Hospitality Corporation                   --             --            --            --            --
    Accounts payable and accrued expenses                              558            173           838             4           453
    Accrued interest                                                    --             --            --            --            --
    Due to Interstate Hotels & Resorts                                  --             --            --            --            --
    Other liabilities                                                   --             --            --            --            --
                                                                ----------      ---------    ----------    ----------    ----------
    Total liabilities                                                  558            173           838             4           453
                                                                ----------      ---------    ----------    ----------    ----------

    Minority interests                                                  --             --            --            --            --
    Redeemable OP units at redemption value                             --             --            --            --            --
    Partners' capital - Common OP Units                             28,493         10,578       173,729         2,006       111,333
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    29,051         10,751       174,567         2,010       111,786
                                                                ==========      =========    ==========    ==========    ==========
</TABLE>


<TABLE>
<CAPTION>
                                                                 MERISTAR       MERISTAR      MERISTAR      MERISTAR     MERISTAR
                                                                  SUB 5Q,        SUB 5A,       SUB 8D,       SUB 4J,        HOTEL
                                                                    LLC            LLC           LLC           LLC      LESSEE, INC.
                                                                ----------      ---------    ----------    ----------   ----------
<S>                                                             <C>             <C>          <C>           <C>          <C>
ASSETS
    Property and equipment                                          16,509         34,981        30,687        38,154         2,252
    Accumulated depreciation                                        (1,709)        (9,395)       (5,080)       (5,862)       (2,219)
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    14,800         25,586        25,607        32,292            33

    Restricted cash                                                     --             --            --            --            --
    Investments in and advances to affiliates                           --          4,627            --            --            --
    Due from subsidiaries                                            3,274          5,147         6,942         5,438         5,245
    Note receivable from Interstate Hotels & Resorts                    --             --            --            --            --
    Prepaid expenses and other assets                                   --             --            --             5        17,389
    Accounts receivable, net of allowance for doubtful accounts         --             --            --           (24)       42,400
    Cash and cash equivalents                                           --             --            --            --        12,517
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    18,074         35,360        32,549        37,711        77,584
                                                                ==========      =========    ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
    Long-term debt                                                      --         23,609            --            --        21,397
    Notes payable to MeriStar Hospitality Corporation                   --             --            --            --            --
    Accounts payable and accrued expenses                             (122)            (3)         (117)          171        58,595
    Accrued interest                                                    --             --            --            --           107
    Due to Interstate Hotels & Resorts                                  --             --            --            --        10,328
    Other liabilities                                                   --             --            --            --        11,376
                                                                ----------      ---------    ----------    ----------    ----------
    Total liabilities                                                 (122)        23,606          (117)          171       101,803
                                                                ----------      ---------    ----------    ----------    ----------

    Minority interests                                                  --             --            --            --            --
    Redeemable OP units at redemption value                             --             --            --            --            --
    Partners' capital - Common OP Units                             18,196         11,754        32,666        37,540       (24,219)
                                                                ----------      ---------    ----------    ----------    ----------
                                                                    18,074         35,360        32,549        37,711        77,584
                                                                ==========      =========    ==========    ==========    ==========
</TABLE>

                                       6
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2002
(DOLLARS IN THOUSANDS)


<TABLE>
<CAPTION>
                                                                 GUARANTOR
                                                               SUBSIDIARIES                    TOTAL
                                                                  TOTAL       ELIMINATIONS  CONSOLIDATED
                                                               ------------   ------------  ------------
<S>                                                           <C>            <C>           <C>
Assets
    Property and equipment                                       1,536,518             --     3,020,909
    Accumulated depreciation                                      (231,359)            --      (460,972)
                                                                ----------     ----------    ----------
                                                                 1,305,159             --     2,559,937

    Restricted cash                                                    115             --        20,365
    Investments in and advances to affiliates                       59,198     (2,617,743)       40,000
    Due from subsidiaries                                          398,815             --            --
    Note receivable from Interstate Hotels & Resorts                    --       (108,605)       42,052
    Prepaid expenses and other assets                               18,066             --        40,911
    Accounts receivable, net of allowance for doubtful accounts     43,571             --        56,828
    Cash and cash equivalents                                       12,517             --        33,889
                                                                ----------     ----------    ----------
                                                                 1,837,441     (2,726,348)    2,793,982
                                                                ==========     ==========    ==========

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

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


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

<TABLE>
<CAPTION>
                                                         MERISTAR         NON-            MERISTAR          AGH         MERISTAR
                                                       HOSPITALITY      GUARANTOR          SUB 7C,        UPREIT,        SUB 5N,
                                                         OP, L.P.      SUBSIDIARIES          LLC            LLC            LLC
                                                       -----------     -------------     -----------    -----------    -----------
<S>                                                    <C>             <C>               <C>            <C>            <C>
  Hotel operations:
    Rooms                                                       --               --               --             --             --
    Food and beverage                                           --               --               --             --             --
    Other operating departments                                 --               --               --             --             --
  Office rental and other revenues                           1,620             (241)              --             --             --
 Participating lease revenue                                    --           30,382               --             --            165
                                                       -----------     ------------      -----------    -----------    -----------
Total revenue                                                1,620           30,141               --             --            165
                                                       -----------     ------------      -----------    -----------    -----------
Hotel operating expenses by department:
    Rooms                                                       --               --               --             --             --
    Food and beverage                                           --               --               --             --             --
    Other operating departments                                 --               --               --             --             --
Office rental, parking and other operating expenses             --               78               --             --             --
Other operating expenses:
    General and administrative                               1,774              258               --             --             --
    Property operating costs                                  (359)              (1)              --             --             --
    Depreciation and amortization                            2,162           12,022               --             --             34
    Loss on asset impairments                                   --             (278)              --             --             --
    Property taxes, insurance and other                       (397)           3,998               --             --             27
                                                       -----------     ------------      -----------    -----------    -----------
Operating expenses                                           3,180           16,077               --             --             61
                                                       -----------     ------------      -----------    -----------    -----------
Operating income (loss)                                     (1,560)          14,064               --             --            104
 Gain on early extinguishment of debt                        4,574               --               --             --             --
 Minority interest expense                                      --               --               --             --             --
 Interest expense, net                                     (26,806)          (6,870)              --             --             --
 Equity in loss from consolidated entities                 (27,554)              --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 (Loss) gain before income taxes and discontinued
   operations                                              (51,346)           7,194               --             --            104

 Income tax benefit                                            305               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Loss from continuing operations                           (51,041)           7,194               --             --            104

 Discontinued operations:                                       --               --               --             --             --
 Income (loss) from discontinued operations before
   tax (expense) benefit                                        --              683               --             --             --
 Income tax (expense) benefit                                   --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Loss from discontinued operations                              --              683               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Net (loss) income                                         (51,041)           7,877               --             --            104
                                                       ===========     ============      ===========    ===========    ===========
</TABLE>

<TABLE>
<CAPTION>
                                                        MERISTAR         MERISTAR         MERISTAR       MERISTAR       MERISTAR
                                                         SUB 8A,          SUB 8F,          SUB 8G,        SUB 6H,        SUB 8B,
                                                          LLC              L.P.              LLC            L.P.           LLC
                                                       -----------     -------------     -----------    -----------    -----------
<S>                                                    <C>             <C>               <C>            <C>            <C>
  Hotel operations:
    Rooms                                                       --               --               --             --             --
    Food and beverage                                           --               --               --             --             --
    Other operating departments                                 --               --               --             --             --
  Office rental and other revenues                              --               --               --             --             --
 Participating lease revenue                                    --              587               --            317          1,818
                                                       -----------     ------------      -----------    -----------    -----------
Total revenue                                                   --              587               --            317          1,818
                                                       -----------     ------------      -----------    -----------    -----------
Hotel operating expenses by department:
    Rooms                                                       --               --               --             --             --
    Food and beverage                                           --               --               --             --             --
    Other operating departments                                 --               --               --             --             --
Office rental, parking and other operating expenses             --               --               --             --             --
Other operating expenses:
    General and administrative                                  --               --               --             --             --
    Property operating costs                                    --               --               --             --             --
    Depreciation and amortization                               --              162               --            160            601
    Loss on asset impairments                                   --               --               --            500             --
    Property taxes, insurance and other                         --              156               --             24            346
                                                       -----------     ------------      -----------    -----------    -----------
Operating expenses                                              --              318               --            684            947
                                                       -----------     ------------      -----------    -----------    -----------
Operating income (loss)                                         --              269               --           (367)           871
 Gain on early extinguishment of debt                           --               --               --             --             --
 Minority interest expense                                      --               --               --             --             --
 Interest expense, net                                          --               --               --             --             --
 Equity in loss from consolidated entities                      --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 (Loss) gain before income taxes and discontinued
   operations                                                   --              269               --           (367)           871

 Income tax benefit                                             --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Loss from continuing operations                                --              269               --           (367)           871

 Discontinued operations:                                       --               --               --             --             --
 Income (loss) from discontinued operations before
   tax (expense) benefit                                        --               --               --             --             --
 Income tax (expense) benefit                                   --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Loss from discontinued operations                              --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Net (loss) income                                              --              269               --           (367)           871
                                                       ===========     ============      ===========    ===========    ===========
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                        MERISTAR         MERISTAR         MERISTAR       MERISTAR       MERISTAR
                                                         SUB 1C,          SUB 8E,          SUB 7F,        SUB 5L,        SUB 3C,
                                                           L.P.             LLC              LLC            LLC            LLC
                                                       -----------     -------------     -----------    -----------    -----------
<S>                                                    <C>             <C>               <C>            <C>            <C>
  Hotel operations:
    Rooms                                                       --               --               --             --             --
    Food and beverage                                           --               --               --             --             --
    Other operating departments                                 --               --               --             --             --
  Office rental and other revenues                              --                6               --             --             --
 Participating lease revenue                                   178              362              269            254            347
                                                       -----------     ------------      -----------    -----------    -----------
Total revenue                                                  178              368              269            254            347
                                                       -----------     ------------      -----------    -----------    -----------
Hotel operating expenses by department:
    Rooms                                                       --               --               --             --             --
    Food and beverage                                           --               --               --             --             --
    Other operating departments                                 --               --               --             --             --
Office rental, parking and other operating expenses             --               --               --             --             --
Other operating expenses:
    General and administrative                                  --               --               --             --             --
    Property operating costs                                    --               --               --             --             --
    Depreciation and amortization                              254              143               99             34            176
    Loss on asset impairments                                   --               --              400             --             --
    Property taxes, insurance and other                        180               55               41             38             99
                                                       -----------     ------------      -----------    -----------    -----------
Operating expenses                                             434              198              540             72            275
                                                       -----------     ------------      -----------    -----------    -----------
Operating income (loss)                                       (256)             170             (271)           182             72
 Gain on early extinguishment of debt                           --               --               --             --             --
 Minority interest expense                                      --               --               --             --             --
 Interest expense, net                                          --               --               --             --             --
 Equity in loss from consolidated entities                      --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 (Loss) gain before income taxes and discontinued
   operations                                                 (256)             170             (271)           182             72

 Income tax benefit                                             --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Loss from continuing operations                              (256)             170             (271)           182             72

 Discontinued operations:                                       --               --               --             --             --
 Income (loss) from discontinued operations before
   tax (expense) benefit                                        --               --               --             --             --
 Income tax (expense) benefit                                   --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Loss from discontinued operations                              --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Net (loss) income                                            (256)             170             (271)           182             72
                                                       ===========     ============      ===========    ===========    ===========
</TABLE>


<TABLE>
<CAPTION>
                                                        MERISTAR        MERISTAR          MERISTAR       MERISTAR       MERISTAR
                                                         SUB 5R,         SUB 6D,           SUB 6E,        SUB 4E,        SUB 1B,
                                                           LLC             LLC               LLC            L.P.           LLC
                                                       -----------     -------------     -----------    -----------    -----------
<S>                                                    <C>             <C>               <C>            <C>            <C>
  Hotel operations:
    Rooms                                                       --               --               --             --             --
    Food and beverage                                           --               --               --             --             --
    Other operating departments                                 --               --               --             --             --
  Office rental and other revenues                              --               15               --              1            340
 Participating lease revenue                                    --              497            1,193            351            695
                                                       -----------     ------------      -----------    -----------    -----------
Total revenue                                                   --              512            1,193            352          1,035
                                                       -----------     ------------      -----------    -----------    -----------
Hotel operating expenses by department:
    Rooms                                                       --               --               --             --             --
    Food and beverage                                           --               --               --             --             --
    Other operating departments                                 --               --               --             --             --
Office rental, parking and other operating expenses             --               --               --             --             --
Other operating expenses:
    General and administrative                                  --               --               --             --             --
    Property operating costs                                    --               --               --             --             --
    Depreciation and amortization                               --              137              397             81            122
    Loss on asset impairments                                   --               --               --            736             --
    Property taxes, insurance and other                         --               92              194            113             17
                                                       -----------     ------------      -----------    -----------    -----------
Operating expenses                                              --              229              591            930            139
                                                       -----------     ------------      -----------    -----------    -----------
Operating income (loss)                                         --              283              602           (578)           896
 Gain on early extinguishment of debt                           --               --               --             --             --
 Minority interest expense                                      --               --               --             --             --
 Interest expense, net                                          --               --               --             --             --
 Equity in loss from consolidated entities                      --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 (Loss) gain before income taxes and discontinued
   operations                                                   --              283              602           (578)           896

 Income tax benefit                                             --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Loss from continuing operations                                --              283              602           (578)           896

 Discontinued operations:                                       --               --               --             --             --
 Income (loss) from discontinued operations before
   tax (expense) benefit                                        --               --               --             --             --
 Income tax (expense) benefit                                   --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Loss from discontinued operations                              --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Net (loss) income                                              --              283              602           (578)           896
                                                       ===========     ============      ===========    ===========    ===========
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                        MERISTAR        MERISTAR          MERISTAR       MERISTAR       MERISTAR
                                                         SUB 5F,         SUB 6G,           SUB 8C,        SUB 4C,        SUB 4H,
                                                           L.P.            LLC               LLC            L.P.           L.P.
                                                       -----------     -------------     -----------    -----------    -----------
<S>                                                    <C>             <C>               <C>            <C>            <C>
  Hotel operations:
    Rooms                                                       --               --               --             --             --
    Food and beverage                                           --               --               --             --             --
    Other operating departments                                 --               --               --             --             --
  Office rental and other revenues                              --               --                1             --             --
 Participating lease revenue                                   669              615              500             --             95
                                                       -----------     ------------      -----------    -----------    -----------
Total revenue                                                  669              615              501             --             95
                                                       -----------     ------------      -----------    -----------    -----------
Hotel operating expenses by department:
    Rooms                                                       --               --               --             --             --
    Food and beverage                                           --               --               --             --             --
    Other operating departments                                 --               --               --             --             --
Office rental, parking and other operating expenses             --               --               --             --             --
Other operating expenses:
    General and administrative                                  --               --               --             --             --
    Property operating costs                                    --               --               --             --             --
    Depreciation and amortization                              209              204              158             --             66
    Loss on asset impairments                                2,000               --               --             --             --
    Property taxes, insurance and other                        107               95              167             --             44
                                                       -----------     ------------      -----------    -----------    -----------
Operating expenses                                           2,316              299              325             --            110
                                                       -----------     ------------      -----------    -----------    -----------
Operating income (loss)                                     (1,647)             316              176             --            (15)
 Gain on early extinguishment of debt                           --               --               --             --             --
 Minority interest expense                                      --               --               --             --             --
 Interest expense, net                                          --               --               --             --             --
 Equity in loss from consolidated entities                      --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 (Loss) gain before income taxes and discontinued
   operations                                               (1,647)             316              176             --            (15)

 Income tax benefit                                             --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Loss from continuing operations                            (1,647)             316              176             --            (15)

 Discontinued operations:                                       --               --               --             --             --
 Income (loss) from discontinued operations before
   tax (expense) benefit                                        --               --               --             --             --
 Income tax (expense) benefit                                   --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Loss from discontinued operations                              --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Net (loss) income                                          (1,647)             316              176             --            (15)
                                                       ===========     ============      ===========    ===========    ===========
</TABLE>


<TABLE>
<CAPTION>
                                                        MERISTAR         MERISTAR         MERISTAR       MERISTAR        MERISTAR
                                                         SUB 7E,          SUB 3D,          SUB 1A,        SUB 5E,      SUB 7A JOINT
                                                           LLC              LLC              LLC            LLC          VENTURE
                                                       -----------     -------------     -----------    -----------    -----------
<S>                                                    <C>             <C>               <C>            <C>            <C>
  Hotel operations:
    Rooms                                                       --               --               --             --             --
    Food and beverage                                           --               --               --             --             --
    Other operating departments                                 --               --               --             --             --
  Office rental and other revenues                              --               --               --             --             --
 Participating lease revenue                                   336              407              526            994            305
                                                       -----------     ------------      -----------    -----------    -----------
Total revenue                                                  336              407              526            994            305
                                                       -----------     ------------      -----------    -----------    -----------
Hotel operating expenses by department:
    Rooms                                                       --               --               --             --             --
    Food and beverage                                           --               --               --             --             --
    Other operating departments                                 --               --               --             --             --
Office rental, parking and other operating expenses             --               --               --             --             --
Other operating expenses:
    General and administrative                                  --               --               --             --             --
    Property operating costs                                    --               --               --             --             --
    Depreciation and amortization                              153              191              113            476             60
    Loss on asset impairments                                   --               --               --             --             --
    Property taxes, insurance and other                         49               60              111            101             56
                                                       -----------     ------------      -----------    -----------    -----------
Operating expenses                                             202              251              224            577            116
                                                       -----------     ------------      -----------    -----------    -----------
Operating income (loss)                                        134              156              302            417            189
 Gain on early extinguishment of debt                           --               --               --             --             --
 Minority interest expense                                      --               --               --             --             --
 Interest expense, net                                          --               --               --             --             --
 Equity in loss from consolidated entities                      --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 (Loss) gain before income taxes and discontinued
   operations                                                  134              156              302            417            189

 Income tax benefit                                             --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Loss from continuing operations                               134              156              302            417            189

 Discontinued operations:                                       --               --               --             --             --
 Income (loss) from discontinued operations before
   tax (expense) benefit                                        --               --               --             --             --
 Income tax (expense) benefit                                   --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Loss from discontinued operations                              --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Net (loss) income                                             134              156              302            417            189
                                                       ===========     ============      ===========    ===========    ===========
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                        MERISTAR        MERISTAR          MERISTAR       MERISTAR       MERISTAR
                                                         SUB 6K,         SUB 2B,           SUB 3A,        SUB 4A,        SUB 4D,
                                                           LLC             LLC               LLC            L.P.           L.P.
                                                       -----------     -------------     -----------    -----------    -----------
<S>                                                    <C>             <C>               <C>            <C>            <C>
  Hotel operations:
    Rooms                                                       --               --               --             --             --
    Food and beverage                                           --               --               --             --             --
    Other operating departments                                 --               --               --             --             --
  Office rental and other revenues                              --                3               --             --             --
 Participating lease revenue                                   940              164              127            255             --
                                                       -----------     ------------      -----------    -----------    -----------
Total revenue                                                  940              167              127            255             --
                                                       -----------     ------------      -----------    -----------    -----------
Hotel operating expenses by department:
    Rooms                                                       --               --               --             --             --
    Food and beverage                                           --               --               --             --             --
    Other operating departments                                 --               --               --             --             --
Office rental, parking and other operating expenses             --               --               --             --             --
Other operating expenses:
    General and administrative                                  --               --               --             --             --
    Property operating costs                                    --               --               --             --             --
    Depreciation and amortization                              168               79               55             31             --
    Loss on asset impairments                                   --               --              640             --             --
    Property taxes, insurance and other                         97               39               27             65             --
                                                       -----------     ------------      -----------    -----------    -----------
Operating expenses                                             265              118              722             96             --
                                                       -----------     ------------      -----------    -----------    -----------
Operating income (loss)                                        675               49             (595)           159             --
 Gain on early extinguishment of debt                           --               --               --             --             --
 Minority interest expense                                      --               --               --             --             --
 Interest expense, net                                          --             (119)              --             --             --
 Equity in loss from consolidated entities                      --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 (Loss) gain before income taxes and discontinued
   operations                                                  675              (70)            (595)           159             --

 Income tax benefit                                             --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Loss from continuing operations                               675              (70)            (595)           159             --

 Discontinued operations:                                       --               --               --             --             --
 Income (loss) from discontinued operations before
   tax (expense) benefit                                        --               --               --             --             --
 Income tax (expense) benefit                                   --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Loss from discontinued operations                              --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Net (loss) income                                             675              (70)            (595)           159             --
                                                       ===========     ============      ===========    ===========    ===========
</TABLE>


<TABLE>
<CAPTION>
                                                        MERISTAR         MERISTAR            MDV         MERISTAR       MERISTAR
                                                         SUB 2A,          SUB 6L,          LIMITED        SUB 5C,        SUB 6J,
                                                           LLC              LLC          PARTNERSHIP        LLC            LLC
                                                       -----------     -------------     -----------    -----------    -----------
<S>                                                    <C>             <C>               <C>            <C>            <C>
  Hotel operations:
    Rooms                                                       --               --               --             --             --
    Food and beverage                                           --               --               --             --             --
    Other operating departments                                 --               --               --             --             --
  Office rental and other revenues                              --               --               --             --             --
 Participating lease revenue                                   173              532              126            376            569
                                                       -----------     ------------      -----------    -----------    -----------
Total revenue                                                  173              532              126            376            569
                                                       -----------     ------------      -----------    -----------    -----------
Hotel operating expenses by department:
    Rooms                                                       --               --               --             --             --
    Food and beverage                                           --               --               --             --             --
    Other operating departments                                 --               --               --             --             --
Office rental, parking and other operating expenses             --               --               --             --             --
Other operating expenses:
    General and administrative                                  --               --               --             --             --
    Property operating costs                                    --               --               --             --             --
    Depreciation and amortization                               69              116               35             60            138
    Loss on asset impairments                                   --               --               --             --             --
    Property taxes, insurance and other                         50               55               35            165             68
                                                       -----------     ------------      -----------    -----------    -----------
Operating expenses                                             119              171               70            225            206
                                                       -----------     ------------      -----------    -----------    -----------
Operating income (loss)                                         54              361               56            151            363
 Gain on early extinguishment of debt                           --               --               --             --             --
 Minority interest expense                                      --               --               --             --             --
 Interest expense, net                                        (194)              --               --             --             --
 Equity in loss from consolidated entities                      --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 (Loss) gain before income taxes and discontinued
   operations                                                 (140)             361               56            151            363

 Income tax benefit                                             --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Loss from continuing operations                              (140)             361               56            151            363

 Discontinued operations:                                       --               --               --             --             --
 Income (loss) from discontinued operations before
   tax (expense) benefit                                        --               --               --             --             --
 Income tax (expense) benefit                                   --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Loss from discontinued operations                              --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Net (loss) income                                            (140)             361               56            151            363
                                                       ===========     ============      ===========    ===========    ===========
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                        MERISTAR        MERISTAR          MERISTAR       MERISTAR       MERISTAR
                                                         SUB 1D,         SUB 7B,           SUB 7D,        SUB 7G,        SUB 6B,
                                                           LLC             L.P.              LLC            LLC            LLC
                                                       -----------     -------------     -----------    -----------    -----------
<S>                                                    <C>             <C>               <C>            <C>            <C>
  Hotel operations:
    Rooms                                                       --               --               --             --             --
    Food and beverage                                           --               --               --             --             --
    Other operating departments                                 --               --               --             --             --
  Office rental and other revenues                             191               --            1,403             --             --
 Participating lease revenue                                   973              401              610            150            275
                                                       -----------     ------------      -----------    -----------    -----------
Total revenue                                                1,164              401            2,013            150            275
                                                       -----------     ------------      -----------    -----------    -----------
Hotel operating expenses by department:
    Rooms                                                       --               --               --             --             --
    Food and beverage                                           --               --               --             --             --
    Other operating departments                                 --               --               --             --             --
Office rental, parking and other operating expenses             31               --              586             --             --
Other operating expenses:
    General and administrative                                 (25)              --             (177)            --             --
    Property operating costs                                    --               --               --             --             --
    Depreciation and amortization                              559               56              430            104            105
    Loss on asset impairments                                   --               --               --             --             --
    Property taxes, insurance and other                        412              187              538             54             50
                                                       -----------     ------------      -----------    -----------    -----------
Operating expenses                                             977              243            1,377            158            155
                                                       -----------     ------------      -----------    -----------    -----------
Operating income (loss)                                        187              158              636             (8)           120
 Gain on early extinguishment of debt                           --               --               --             --             --
 Minority interest expense                                      --               --               --             --             --
 Interest expense, net                                          --               --               --             --             --
 Equity in loss from consolidated entities                      --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 (Loss) gain before income taxes and discontinued
   operations                                                  187              158              636             (8)           120

 Income tax benefit                                             --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Loss from continuing operations                               187              158              636             (8)           120

 Discontinued operations:                                       --               --               --             --             --
 Income (loss) from discontinued operations before
   tax (expense) benefit                                        --               --               --             --             --
 Income tax (expense) benefit                                   --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Loss from discontinued operations                              --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Net (loss) income                                             187              158              636             (8)           120
                                                       ===========     ============      ===========    ===========    ===========
</TABLE>


<TABLE>
<CAPTION>
                                                        MERISTAR         MERISTAR         MERISTAR       MERISTAR          AGH
                                                         SUB 4I,          SUB 5D,          SUB 5H,        SUB 7H,         PSS I,
                                                           L.P.             LLC              LLC            LLC            INC.
                                                       -----------     -------------     -----------    -----------    -----------
<S>                                                    <C>             <C>               <C>            <C>            <C>
  Hotel operations:
    Rooms                                                       --               --               --             --             --
    Food and beverage                                           --               --               --             --             --
    Other operating departments                                 --               --               --             --             --
  Office rental and other revenues                              --               --               --             --             --
 Participating lease revenue                                    20              510               --            323             --
                                                       -----------     ------------      -----------    -----------    -----------
Total revenue                                                   20              510               --            323             --
                                                       -----------     ------------      -----------    -----------    -----------
Hotel operating expenses by department:
    Rooms                                                       --               --               --             --             --
    Food and beverage                                           --               --               --             --             --
    Other operating departments                                 --               --               --             --             --
Office rental, parking and other operating expenses             --               --               --             --             --
Other operating expenses:
    General and administrative                                  --               --               --             --             --
    Property operating costs                                    --               --               --             --             --
    Depreciation and amortization                               78              365               --             43             --
    Loss on asset impairments                                   --               --               --             --             --
    Property taxes, insurance and other                         58               57               --            127             --
                                                       -----------     ------------      -----------    -----------    -----------
Operating expenses                                             136              422               --            170             --
                                                       -----------     ------------      -----------    -----------    -----------
Operating income (loss)                                       (116)              88               --            153             --
 Gain on early extinguishment of debt                           --               --               --             --             --
 Minority interest expense                                      --               --               --             --             --
 Interest expense, net                                          --             (267)              --             --             --
 Equity in loss from consolidated entities                      --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 (Loss) gain before income taxes and discontinued
   operations                                                 (116)            (179)              --            153             --

 Income tax benefit                                             --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Loss from continuing operations                              (116)            (179)              --            153             --

 Discontinued operations:                                       --               --               --             --             --
 Income (loss) from discontinued operations before
   tax (expense) benefit                                        --               --           (1,599)            --            (32)
 Income tax (expense) benefit                                   --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Loss from discontinued operations                              --               --           (1,599)            --            (32)
                                                       -----------     ------------      -----------    -----------    -----------
 Net (loss) income                                            (116)            (179)          (1,599)           153            (32)
                                                       ===========     ============      ===========    ===========    ===========
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                        MERISTAR         MERISTAR         MERISTAR       MERISTAR       MERISTAR
                                                         SUB 2D,          SUB 4F,          SUB 5K,        SUB 5M,        SUB 1E,
                                                           LLC              L.P.             LLC            LLC            L.P.
                                                       -----------     -------------     -----------    -----------    -----------
<S>                                                    <C>             <C>               <C>            <C>            <C>
  Hotel operations:
    Rooms                                                       --               --               --             --             --
    Food and beverage                                           --               --               --             --             --
    Other operating departments                                 --               --               --             --             --
  Office rental and other revenues                              --                4               --             --             --
 Participating lease revenue                                   491              459              471            304             --
                                                       -----------     ------------      -----------    -----------    -----------
Total revenue                                                  491              463              471            304             --
                                                       -----------     ------------      -----------    -----------    -----------
Hotel operating expenses by department:
    Rooms                                                       --               --               --             --             --
    Food and beverage                                           --               --               --             --             --
    Other operating departments                                 --               --               --             --             --
Office rental, parking and other operating expenses             --               --               --             --             --
Other operating expenses:
    General and administrative                                  --               --               --             --             --
    Property operating costs                                    --               --               --             --             --
    Depreciation and amortization                               85              272              322            118             --
    Loss on asset impairments                                   --               --               --             --             --
    Property taxes, insurance and other                         76               88               98             70             --
                                                       -----------     ------------      -----------    -----------    -----------
Operating expenses                                             161              360              420            188             --
                                                       -----------     ------------      -----------    -----------    -----------
Operating income (loss)                                        330              103               51            116             --
 Gain on early extinguishment of debt                           --               --               --             --             --
 Minority interest expense                                      --               --               --             --             --
 Interest expense, net                                        (224)              --               --             --             --
 Equity in loss from consolidated entities                      --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 (Loss) gain before income taxes and discontinued
   operations                                                  106              103               51            116             --

 Income tax benefit                                             --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Loss from continuing operations                               106              103               51            116             --

 Discontinued operations:                                       --               --               --             --             --
 Income (loss) from discontinued operations before
   tax (expense) benefit                                        --               --               --             --            388
 Income tax (expense) benefit                                   --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Loss from discontinued operations                              --               --               --             --            388
                                                       -----------     ------------      -----------    -----------    -----------
 Net (loss) income                                             106              103               51            116            388
                                                       ===========     ============      ===========    ===========    ===========
</TABLE>


<TABLE>
<CAPTION>
                                                        MERISTAR         MERISTAR         MERISTAR       MERISTAR       MERISTAR
                                                         SUB 5O,          SUB 6M           SUB 4B,        SUB 6C,        SUB 2C,
                                                           LLC            COMPANY            L.P.           LLC            LLC
                                                       -----------     -------------     -----------    -----------    -----------
<S>                                                    <C>             <C>               <C>            <C>            <C>
  Hotel operations:
    Rooms                                                       --               --               --             --             --
    Food and beverage                                           --               --               --             --             --
    Other operating departments                                 --               --               --             --             --
  Office rental and other revenues                              --               --               --              1             18
 Participating lease revenue                                   136            1,200               44            790            422
                                                       -----------     ------------      -----------    -----------    -----------
Total revenue                                                  136            1,200               44            791            440
                                                       -----------     ------------      -----------    -----------    -----------
Hotel operating expenses by department:
    Rooms                                                       --               --               --             --             --
    Food and beverage                                           --               --               --             --             --
    Other operating departments                                 --               --               --             --             --
Office rental, parking and other operating expenses             --               --               --             --             --
Other operating expenses:
    General and administrative                                  --               --               --             --             --
    Property operating costs                                    --               --               --             --             --
    Depreciation and amortization                               57              274              145            193            185
    Loss on asset impairments                                   --               --              374             --             --
    Property taxes, insurance and other                         26               66               67             57            150
                                                       -----------     ------------      -----------    -----------    -----------
Operating expenses                                              83              340              586            250            335
                                                       -----------     ------------      -----------    -----------    -----------
Operating income (loss)                                         53              860             (542)           541            105
 Gain on early extinguishment of debt                           --               --               --             --             --
 Minority interest expense                                      --               --               --             --             --
 Interest expense, net                                          --               --               --             --           (391)
 Equity in loss from consolidated entities                      --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 (Loss) gain before income taxes and discontinued
   operations                                                   53              860             (542)           541           (286)

 Income tax benefit                                             --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Loss from continuing operations                                53              860             (542)           541           (286)

 Discontinued operations:                                       --               --               --             --             --
 Income (loss) from discontinued operations before
   tax (expense) benefit                                        --               --               --             --             --
 Income tax (expense) benefit                                   --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Loss from discontinued operations                              --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Net (loss) income                                              53              860             (542)           541           (286)
                                                       ===========     ============      ===========    ===========    ===========
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                        MERISTAR         MERISTAR         MERISTAR       MERISTAR       MERISTAR
                                                         SUB 4G,          SUB 3B,          SUB 5G,        SUB 5P,        SUB 5J,
                                                           L.P.             LLC              L.P.           LLC            LLC
                                                       -----------     -------------     -----------    -----------    -----------
<S>                                                    <C>             <C>               <C>            <C>            <C>
  Hotel operations:
    Rooms                                                       --               --               --             --             --
    Food and beverage                                           --               --               --             --             --
    Other operating departments                                 --               --               --             --             --
  Office rental and other revenues                              --               --               11             --             --
 Participating lease revenue                                   483               --            2,313            267          1,822
                                                       -----------     ------------      -----------    -----------    -----------
Total revenue                                                  483               --            2,324            267          1,822
                                                       -----------     ------------      -----------    -----------    -----------
Hotel operating expenses by department:

    Rooms                                                       --               --               --             --             --
    Food and beverage                                           --               --               --             --             --
    Other operating departments                                 --               --               --             --             --
Office rental, parking and other operating expenses             --               --               --             --             --
Other operating expenses:
    General and administrative                                  --               --               --             --             --
    Property operating costs                                    --               --               --             --             --
    Depreciation and amortization                              136               --            1,571              1            871
    Loss on asset impairments                                  500               --               --             --             --
    Property taxes, insurance and other                        159               --              486              2            391
                                                       -----------     ------------      -----------    -----------    -----------
Operating expenses                                             795               --            2,057              3          1,262
                                                       -----------     ------------      -----------    -----------    -----------
Operating income (loss)                                       (312)              --              267            264            560
 Gain on early extinguishment of debt                           --               --               --             --             --
 Minority interest expense                                      --               --               --             --             --
 Interest expense, net                                          --               --               --             --             --
 Equity in loss from consolidated entities                      --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 (Loss) gain before income taxes and discontinued
   operations                                                 (312)              --              267            264            560

 Income tax benefit                                             --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Loss from continuing operations                              (312)              --              267            264            560

 Discontinued operations:                                       --               --               --             --             --
 Income (loss) from discontinued operations before
   tax (expense) benefit                                        --           (1,150)              --             --             --
 Income tax (expense) benefit                                   --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Loss from discontinued operations                              --           (1,150)              --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Net (loss) income                                            (312)          (1,150)             267            264            560
                                                       ===========     ============      ===========    ===========    ===========
</TABLE>


<TABLE>
<CAPTION>

                                                        MERISTAR         MERISTAR         MERISTAR       MERISTAR       MERISTAR
                                                         SUB 5Q,          SUB 5A,          SUB 8D,        SUB 4J,         HOTEL
                                                           LLC              LLC              LLC            LLC        LESSEE, INC.
                                                       -----------     -------------     -----------    -----------    -----------
<S>                                                    <C>             <C>               <C>            <C>            <C>
  Hotel operations:
    Rooms                                                       --               --               --             --        146,057
    Food and beverage                                           --               --               --             --         53,660
    Other operating departments                                 --               --               --             --         17,570
  Office rental and other revenues                              --               32               --            174             --
 Participating lease revenue                                   363            1,351              595            683             --
                                                       -----------     ------------      -----------    -----------    -----------
Total revenue                                                  363            1,383              595            857        217,287
                                                       -----------     ------------      -----------    -----------    -----------
Hotel operating expenses by department:
    Rooms                                                       --               --               --             --         40,360
    Food and beverage                                           --               --               --             --         43,268
    Other operating departments                                 --               --               --             --         11,080
Office rental, parking and other operating expenses             --               --               --            238             --
Other operating expenses:
    General and administrative                                  --               --               --            (48)        37,644
    Property operating costs                                    --               --               --             --         38,090
    Depreciation and amortization                              140              257              120            312            268
    Loss on asset impairments                                   --               --           16,128             --             --
    Property taxes, insurance and other                         57              179              114             74         68,379
                                                       -----------     ------------      -----------    -----------    -----------
Operating expenses                                             197              436           16,362            576        239,089
                                                       -----------     ------------      -----------    -----------    -----------
Operating income (loss)                                        166              947          (15,767)           281        (21,802)
 Gain on early extinguishment of debt                           --               --               --             --             --
 Minority interest expense                                      --               --               --             --             --
 Interest expense, net                                          --             (708)              --             --           (825)
 Equity in loss from consolidated entities                      --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 (Loss) gain before income taxes and discontinued
   operations                                                  166              239          (15,767)           281        (22,627)

 Income tax benefit                                             --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Loss from continuing operations                               166              239          (15,767)           281        (22,627)

 Discontinued operations:                                       --               --               --             --             --
 Income (loss) from discontinued operations before
   tax (expense) benefit                                        --               --               --             --         (1,027)
 Income tax (expense) benefit                                   --               --               --             --             --
                                                       -----------     ------------      -----------    -----------    -----------
 Loss from discontinued operations                              --               --               --             --         (1,027)
                                                       -----------     ------------      -----------    -----------    -----------
 Net (loss) income                                             166              239          (15,767)           281        (23,654)
                                                       ===========     ============      ===========    ===========    ===========
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                        GUARANTOR
                                                       SUBSIDIARIES                        TOTAL
                                                          TOTAL        ELIMINATIONS      CONSOLIDATED
                                                       ------------    -------------     ------------
<S>                                                    <C>             <C>               <C>
  Hotel operations:
    Rooms                                                  146,057               --          146,057
    Food and beverage                                       53,660               --           53,660
    Other operating departments                             17,570               --           17,570
  Office rental and other revenues                           2,200               --            3,579
 Participating lease revenue                                30,198          (60,580)              --
                                                       -----------     ------------      -----------
Total revenue                                              249,685          (60,580)         220,866
                                                       -----------     ------------      -----------
Hotel operating expenses by department:
    Rooms                                                   40,360               --           40,360
    Food and beverage                                       43,268               --           43,268
    Other operating departments                             11,080               --           11,080
Office rental, parking and other operating expenses            855               --              933
Other operating expenses:                                       --               --
    General and administrative                              37,394               --           39,426
    Property operating costs                                38,090               --           37,730
    Depreciation and amortization                           11,848               --           26,032
    Loss on asset impairments                               21,278               --           21,000
    Property taxes, insurance and other                     74,795          (60,580)          17,816
                                                       -----------     ------------      -----------
Operating expenses                                         278,968          (60,580)         237,645
                                                       -----------     ------------      -----------
Operating income (loss)                                    (29,283)              --          (16,779)
 Gain on early extinguishment of debt                           --               --            4,574
 Minority interest expense                                      --               --               --
 Interest expense, net                                      (2,728)              --          (36,404)
 Equity in loss from consolidated entities                      --           27,554               --
                                                       -----------     ------------      -----------
 (Loss) gain before income taxes and discontinued
   operations                                              (32,011)          27,554          (48,609)

 Income tax benefit                                             --               --              305
                                                       -----------     ------------      -----------
 Loss from continuing operations                           (32,011)          27,554          (48,304)

 Discontinued operations:                                       --               --               --
 Income (loss) from discontinued operations before
   tax (expense) benefit                                    (3,420)              --           (2,737)
 Income tax (expense) benefit                                   --               --               --
                                                       -----------     ------------      -----------
 Loss from discontinued operations                          (3,420)              --           (2,737)
                                                       -----------     ------------      -----------
 Net (loss) income                                         (35,431)          27,554          (51,041)
                                                       ===========     ============      ===========
</TABLE>



<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2002
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                              MERISTAR         NON-         MERISTAR         AGH          MERISTAR
                                                             HOSPITALITY     GUARANTOR       SUB 7C,        UPREIT,        SUB 5N,
                                                              OP, L.P.     SUBSIDIARIES        LLC           LLC             LLC
                                                             -----------   ------------     --------       --------       --------
<S>                                                          <C>           <C>              <C>            <C>            <C>
  Hotel operations:
    Rooms                                                           --             --             --             --             --
    Food and beverage                                               --             --             --             --             --
    Other operating departments                                     --             --             --             --             --
  Office rental and other revenues                               2,073          1,267             --             --             --
 Participating lease revenue                                        --         33,126             --             --            153
                                                              --------       --------       --------       --------       --------
Total revenue                                                    2,073         34,393             --             --            153

Hotel operating expenses by department:                             --             --             --             --             --
    Rooms                                                           --             --             --             --             --
    Food and beverage                                               --             --             --             --             --
    Other operating departments                                     --             --             --             --             --
Office rental, parking and other operating expenses                 --            400             --             --             --
Other operating expenses:
    General and administrative                                   2,247             75             --             --             --
    Property operating costs                                        --             --             --             --             --
    Depreciation and amortization                                2,506         12,549             --             --             33
    Loss on asset impairments                                       --             --             --             --             --
    Property taxes, insurance and other                         (2,378)         5,374             --             --             25
                                                              --------       --------       --------       --------       --------
Operating expenses                                               2,375         18,398             --             --             58
                                                              --------       --------       --------       --------       --------

Operating (loss) income                                           (302)        15,995             --             --             95
 Change in fair value of non-hedging derivatives, net of
   swap payments                                                (1,132)            --             --             --             --
 Minority interest expense                                          18             --             --             --             --
 Interest expense, net                                         (26,249)        (6,436)            --             --              2
 Equity in income from consolidated entities                     3,797             --             --             --             --
                                                              --------       --------       --------       --------       --------

 (Loss) income before income taxes and discontinued
   operations                                                  (31,462)         9,559             --             --             97

 Income tax benefit                                                591             --             --             --             --
                                                              --------       --------       --------       --------       --------

 Loss from continuing operations                               (30,871)         9,559             --             --             97

 Discontinued operations:                                           --             --             --             --             --
 Income (loss)  from discontinued operations before tax
   (expense) benefit                                                --            880             --             --             --
 Income tax (expense) benefit                                      132             --             --             --             --
                                                              --------       --------       --------       --------       --------

 Income (loss)  from discontinued operations                       132            880             --             --             --
                                                              --------       --------       --------       --------       --------

 Net income (loss)                                             (30,739)        10,439             --             --             97
                                                              ========       ========       ========       ========       ========

</TABLE>

<TABLE>
<CAPTION>
                                                              MERISTAR       MERISTAR       MERISTAR       MERISTAR       MERISTAR
                                                               SUB 8A,        SUB 8F,        SUB 8G,        SUB 6H,        SUB 8B,
                                                                LLC            L.P.           LLC            L.P.           LLC
                                                              --------       --------       --------       --------       --------
<S>                                                           <C>            <C>            <C>            <C>            <C>
  Hotel operations:
    Rooms                                                           --             --             --             --             --
    Food and beverage                                               --             --             --             --             --
    Other operating departments                                     --             --             --             --             --
  Office rental and other revenues                                  --             --             --             --             --
 Participating lease revenue                                        --            571             --            371          1,435
                                                              --------       --------       --------       --------       --------
Total revenue                                                       --            571             --            371          1,435

Hotel operating expenses by department:                             --             --             --             --             --
    Rooms                                                           --             --             --             --             --
    Food and beverage                                               --             --             --             --             --
    Other operating departments                                     --             --             --             --             --
Office rental, parking and other operating expenses                 --             --             --             --             --
Other operating expenses:
    General and administrative                                      --             --             --             --              1
    Property operating costs                                        --             --             --             --             --
    Depreciation and amortization                                   --            113             --            108            595
    Loss on asset impairments                                       --             --             --             --             --
    Property taxes, insurance and other                             --            169             --             27            348
                                                              --------       --------       --------       --------       --------
Operating expenses                                                  --            282             --            135            944
                                                              --------       --------       --------       --------       --------

Operating (loss) income                                             --            289             --            236            491
 Change in fair value of non-hedging derivatives, net of
   swap payments                                                    --             --             --             --             --
 Minority interest expense                                          --             --             --             --             --
 Interest expense, net                                              --              3             --              1             27
 Equity in income from consolidated entities                        --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 (Loss) income before income taxes and discontinued
   operations                                                       --            292             --            237            518

 Income tax benefit                                                 --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 Loss from continuing operations                                    --            292             --            237            518

 Discontinued operations:                                           --             --             --             --             --
 Income (loss)  from discontinued operations before tax
   (expense) benefit                                            (4,710)            --             --             --             --
 Income tax (expense) benefit                                       --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 Income (loss)  from discontinued operations                    (4,710)            --             --             --             --
                                                              --------       --------       --------       --------       --------

 Net income (loss)                                              (4,710)           292             --            237            518
                                                              ========       ========       ========       ========       ========
</TABLE>

<PAGE>

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

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

  Hotel operations:
    Rooms                                                           --             --             --             --             --
    Food and beverage                                               --             --             --             --             --
    Other operating departments                                     --             --             --             --             --
  Office rental and other revenues                                  --              5             --             --             --
 Participating lease revenue                                       175            397            283            172            340
                                                              --------       --------       --------       --------       --------
Total revenue                                                      175            402            283            172            340

Hotel operating expenses by department:                             --             --             --             --             --
    Rooms                                                           --             --             --             --             --
    Food and beverage                                               --             --             --             --             --
    Other operating departments                                     --             --             --             --             --
Office rental, parking and other operating expenses                 --             --             --             --             --
Other operating expenses:
    General and administrative                                       3              1              1              1              1
    Property operating costs                                        --             --             --             --             --
    Depreciation and amortization                                  254            152            115             34            176
    Loss on asset impairments                                       --             --             --             --             --
    Property taxes, insurance and other                            179             48             37             37            117
                                                              --------       --------       --------       --------       --------
Operating expenses                                                 436            201            153             72            294
                                                              --------       --------       --------       --------       --------

Operating (loss) income                                           (261)           201            130            100             46
 Change in fair value of non-hedging derivatives, net of
   swap payments                                                    --             --             --             --             --
 Minority interest expense                                          --             --             --             --             --
 Interest expense, net                                              14              1              3              2              6
 Equity in income from consolidated entities                        --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 (Loss) income before income taxes and discontinued
   operations                                                     (247)           202            133            102             52

 Income tax benefit                                                 --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 Loss from continuing operations                                  (247)           202            133            102             52

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

 Income (loss)  from discontinued operations                        --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 Net income (loss)                                                (247)           202            133            102             52
                                                              ========       ========       ========       ========       ========
</TABLE>

<TABLE>
<CAPTION>
                                                              MERISTAR       MERISTAR       MERISTAR       MERISTAR       MERISTAR
                                                               SUB 5R,        SUB 6D,        SUB 6E,        SUB 4E,        SUB 1B,
                                                                LLC            LLC            LLC            L.P.           LLC
                                                              --------       --------       --------       --------       --------
<S>                                                           <C>            <C>            <C>            <C>            <C>
  Hotel operations:
    Rooms                                                           --             --             --             --             --
    Food and beverage                                               --             --             --             --             --
    Other operating departments                                     --             --             --             --             --
  Office rental and other revenues                                  --              4             --              5              1
 Participating lease revenue                                        --            480          1,354            327            664
                                                              --------       --------       --------       --------       --------
Total revenue                                                       --            484          1,354            332            665

Hotel operating expenses by department:                             --             --             --             --             --
    Rooms                                                           --             --             --             --             --
    Food and beverage                                               --             --             --             --             --
    Other operating departments                                     --             --             --             --             --
Office rental, parking and other operating expenses                 --             --             --             --             --
Other operating expenses:
    General and administrative                                      --             --             --              1              1
    Property operating costs                                        --             --             --             --             --
    Depreciation and amortization                                   --            127            422            230            146
    Loss on asset impairments                                       --             --             --             --             --
    Property taxes, insurance and other                             --             64            195            107             52
                                                              --------       --------       --------       --------       --------
Operating expenses                                                  --            191            617            338            199
                                                              --------       --------       --------       --------       --------

Operating (loss) income                                             --            293            737             (6)           466
 Change in fair value of non-hedging derivatives, net of
   swap payments                                                    --             --             --             --             --
 Minority interest expense                                          --             --             --             --             --
 Interest expense, net                                              --              7             17              8              6
 Equity in income from consolidated entities                        --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 (Loss) income before income taxes and discontinued
   operations                                                       --            300            754              2            472

 Income tax benefit                                                 --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 Loss from continuing operations                                    --            300            754              2            472

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

 Income (loss)  from discontinued operations                        --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 Net income (loss)                                                  --            300            754              2            472
                                                              ========       ========       ========       ========       ========
</TABLE>

<PAGE>

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

<TABLE>
<CAPTION>
                                                              MERISTAR       MERISTAR       MERISTAR       MERISTAR       MERISTAR
                                                               SUB 5F,        SUB 6G,        SUB 8C,        SUB 4C,        SUB 4H,
                                                                L.P.           LLC            LLC            L.P            L.P.
                                                              --------       --------       --------       --------       --------
<S>                                                           <C>            <C>            <C>            <C>            <C>
  Hotel operations:
    Rooms                                                           --             --             --             --             --
    Food and beverage                                               --             --             --             --             --
    Other operating departments                                     --             --             --             --             --
  Office rental and other revenues                                  --             --             --             --             --
 Participating lease revenue                                       615            591            487             --            101
                                                              --------       --------       --------       --------       --------
Total revenue                                                      615            591            487             --            101

Hotel operating expenses by department:                             --             --             --             --             --
    Rooms                                                           --             --             --             --             --
    Food and beverage                                               --             --             --             --             --
    Other operating departments                                     --             --             --             --             --
Office rental, parking and other operating expenses                 --             --             --             --             --
Other operating expenses:
    General and administrative                                      --             --              1             --              1
    Property operating costs                                        --             --             --             --             --
    Depreciation and amortization                                  264            209            346             --            135
    Loss on asset impairments                                       --             --             --             --             --
    Property taxes, insurance and other                            102            104            157             --             52
                                                              --------       --------       --------       --------       --------
Operating expenses                                                 366            313            504             --            188
                                                              --------       --------       --------       --------       --------

Operating (loss) income                                            249            278            (17)            --            (87)
 Change in fair value of non-hedging derivatives, net of
   swap payments                                                    --             --             --             --             --
 Minority interest expense                                          --             --             --             --             --
 Interest expense, net                                              13             13             11             --              3
 Equity in income from consolidated entities                        --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 (Loss) income before income taxes and discontinued
   operations                                                      262            291             (6)            --            (84)

 Income tax benefit                                                 --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 Loss from continuing operations                                   262            291             (6)            --            (84)

 Discontinued operations:                                           --             --             --             --             --
 Income (loss)  from discontinued operations before tax
   (expense) benefit                                                --             --             --         (1,531)            --
 Income tax (expense) benefit                                       --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 Income (loss)  from discontinued operations                        --             --             --         (1,531)            --
                                                              --------       --------       --------       --------       --------

 Net income (loss)                                                 262            291             (6)        (1,531)           (84)
                                                              ========       ========       ========       ========       ========
</TABLE>

<TABLE>
<CAPTION>
                                                                                                                          MERISTAR
                                                              MERISTAR       MERISTAR       MERISTAR       MERISTAR        SUB 7A
                                                               SUB 7E,        SUB 3D,        SUB 1A,        SUB 5E,         JOINT
                                                                LLC            LLC            LLC            LLC
                                                              --------       --------       --------       --------       --------
<S>                                                           <C>            <C>            <C>            <C>            <C>
  Hotel operations:
    Rooms                                                           --             --             --             --             --
    Food and beverage                                               --             --             --             --             --
    Other operating departments                                     --             --             --             --             --
  Office rental and other revenues                                   1             --             --             --             --
 Participating lease revenue                                       313            518            481          1,353            354
                                                              --------       --------       --------       --------       --------
Total revenue                                                      314            518            481          1,353            354

Hotel operating expenses by department:                             --             --             --             --             --
    Rooms                                                           --             --             --             --             --
    Food and beverage                                               --             --             --             --             --
    Other operating departments                                     --             --             --             --             --
Office rental, parking and other operating expenses                 --             --             --             --             --
Other operating expenses:
    General and administrative                                       1              1              1              1             --
    Property operating costs                                        --             --             --             --             --
    Depreciation and amortization                                  158            202            111            485            104
    Loss on asset impairments                                       --             --             --             --             --
    Property taxes, insurance and other                             41             76            123             97             60
                                                              --------       --------       --------       --------       --------
Operating expenses                                                 200            279            235            583            164
                                                              --------       --------       --------       --------       --------

Operating (loss) income                                            114            239            246            770            190
 Change in fair value of non-hedging derivatives, net of
   swap payments                                                    --             --             --             --             --
 Minority interest expense                                          --             --             --             --             --
 Interest expense, net                                               5             12              5              8             10
 Equity in income from consolidated entities                        --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 (Loss) income before income taxes and discontinued
   operations                                                      119            251            251            778            200

 Income tax benefit                                                 --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 Loss from continuing operations                                   119            251            251            778            200

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

 Income (loss)  from discontinued operations                        --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 Net income (loss)                                                 119            251            251            778            200
                                                              ========       ========       ========       ========       ========
</TABLE>

<PAGE>

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

<TABLE>
<CAPTION>
                                                              MERISTAR       MERISTAR       MERISTAR       MERISTAR       MERISTAR
                                                               SUB 6K,        SUB 2B,        SUB 3A,        SUB 4A,        SUB 4D,
                                                                LLC            LLC            LLC            L.P.           L.P.
                                                              --------       --------       --------       --------       --------
<S>                                                           <C>            <C>            <C>            <C>            <C>
  Hotel operations:
    Rooms                                                           --             --             --             --             --
    Food and beverage                                               --             --             --             --             --
    Other operating departments                                     --             --             --             --             --
  Office rental and other revenues                                  --             --             --             --             --
 Participating lease revenue                                     1,011            152            133            248             --
                                                              --------       --------       --------       --------       --------
Total revenue                                                    1,011            152            133            248             --

Hotel operating expenses by department:                             --             --             --             --             --
    Rooms                                                           --             --             --             --             --
    Food and beverage                                               --             --             --             --             --
    Other operating departments                                     --             --             --             --             --
Office rental, parking and other operating expenses                 --             --             --             --             --
Other operating expenses:
    General and administrative                                      --              1              1              1             --
    Property operating costs                                        --             --             --             --             --
    Depreciation and amortization                                  182            102             61             --             --
    Loss on asset impairments                                       --             --             --             --             --
    Property taxes, insurance and other                            106             48             31             65             --
                                                              --------       --------       --------       --------       --------
Operating expenses                                                 288            151             93             66             --
                                                              --------       --------       --------       --------       --------

Operating (loss) income                                            723              1             40            182             --
 Change in fair value of non-hedging derivatives, net of
   swap payments                                                    --             --             --             --             --
 Minority interest expense                                          --             --             --             --             --
 Interest expense, net                                              10            (95)            15             11             --
 Equity in income from consolidated entities                        --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 (Loss) income before income taxes and discontinued
   operations                                                      733            (94)            55            193             --

 Income tax benefit                                                 --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 Loss from continuing operations                                   733            (94)            55            193             --

 Discontinued operations:                                           --             --             --             --             --
 Income (loss)  from discontinued operations before tax
   (expense) benefit                                                --             --             --             --             39
 Income tax (expense) benefit                                       --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 Income (loss)  from discontinued operations                        --             --             --             --             39
                                                              --------       --------       --------       --------       --------

 Net income (loss)                                                 733            (94)            55            193             39
                                                              ========       ========       ========       ========       ========
</TABLE>

<TABLE>
<CAPTION>
                                                              MERISTAR       MERISTAR          MDV         MERISTAR       MERISTAR
                                                               SUB 2A,        SUB 6L,        LIMITED        SUB 5C,        SUB 6J,
                                                                LLC            LLC         PARTNERSHIP       LLC            LLC
                                                              --------       --------      -----------     --------       --------
<S>                                                           <C>            <C>           <C>             <C>            <C>
  Hotel operations:
    Rooms                                                           --             --             --             --             --
    Food and beverage                                               --             --             --             --             --
    Other operating departments                                     --             --             --             --             --
  Office rental and other revenues                                  --             --             --             --             --
 Participating lease revenue                                       163            541             71            395            477
                                                              --------       --------       --------       --------       --------
Total revenue                                                      163            541             71            395            477

Hotel operating expenses by department:                             --             --             --             --             --
    Rooms                                                           --             --             --             --             --
    Food and beverage                                               --             --             --             --             --
    Other operating departments                                     --             --             --             --             --
Office rental, parking and other operating expenses                 --             --             --             --             --
Other operating expenses:
    General and administrative                                      (1)            --             --              1             --
    Property operating costs                                        --             --             --             --             --
    Depreciation and amortization                                   80            222             35            149            160
    Loss on asset impairments                                       --             --             --             --             --
    Property taxes, insurance and other                             49             52             29            145             67
                                                              --------       --------       --------       --------       --------
Operating expenses                                                 128            274             64            295            227
                                                              --------       --------       --------       --------       --------

Operating (loss) income                                             35            267              7            100            250
 Change in fair value of non-hedging derivatives, net of
   swap payments                                                    --             --             --             --             --
 Minority interest expense                                          --             --             --             --             --
 Interest expense, net                                            (170)             5             --             11             12
 Equity in income from consolidated entities                        --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 (Loss) income before income taxes and discontinued
   operations                                                     (135)           272              7            111            262

 Income tax benefit                                                 --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 Loss from continuing operations                                  (135)           272              7            111            262

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

 Income (loss)  from discontinued operations                        --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 Net income (loss)                                                (135)           272              7            111            262
                                                              ========       ========       ========       ========       ========
</TABLE>

<PAGE>

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

<TABLE>
<CAPTION>
                                                              MERISTAR       MERISTAR       MERISTAR       MERISTAR       MERISTAR
                                                               SUB 1D,        SUB 7B,        SUB 7D,        SUB 7G,        SUB 6B,
                                                                LLC            L.P.           LLC            LLC            LLC
                                                              --------       --------       --------       --------       --------
<S>                                                           <C>            <C>            <C>            <C>            <C>
  Hotel operations:
    Rooms                                                           --             --             --             --             --
    Food and beverage                                               --             --             --             --             --
    Other operating departments                                     --             --             --             --             --
  Office rental and other revenues                                 114             --            374             --             --
 Participating lease revenue                                     1,279            391          1,387            146            293
                                                              --------       --------       --------       --------       --------
Total revenue                                                    1,393            391          1,761            146            293

Hotel operating expenses by department:                             --             --             --             --             --
    Rooms                                                           --             --             --             --             --
    Food and beverage                                               --             --             --             --             --
    Other operating departments                                     --             --             --             --             --
Office rental, parking and other operating expenses                 33             --            187             --             --
Other operating expenses:
    General and administrative                                      --             --             --              1              1
    Property operating costs                                        --             --             --             --             --
    Depreciation and amortization                                  584            231            412            188            114
    Loss on asset impairments                                       --             --             --             --             --
    Property taxes, insurance and other                            361            (34)           544             61             55
                                                              --------       --------       --------       --------       --------
Operating expenses                                                 978            197          1,143            250            170
                                                              --------       --------       --------       --------       --------

Operating (loss) income                                            415            194            618           (104)           123
 Change in fair value of non-hedging derivatives, net of
   swap payments                                                    --             --             --             --             --
 Minority interest expense                                          --             --             --             --             --
 Interest expense, net                                               3             41             12              7              3
 Equity in income from consolidated entities                        --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 (Loss) income before income taxes and discontinued
   operations                                                      418            235            630            (97)           126

 Income tax benefit                                                 --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 Loss from continuing operations                                   418            235            630            (97)           126

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

 Income (loss)  from discontinued operations                        --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 Net income (loss)                                                 418            235            630            (97)           126
                                                              ========       ========       ========       ========       ========
</TABLE>

<TABLE>
<CAPTION>
                                                              MERISTAR       MERISTAR       MERISTAR       MERISTAR         AGH
                                                               SUB 4I,        SUB 5D,        SUB 5H,        SUB 7H,        PSSI,
                                                                L.P.           LLC            LLC            LLC            INC.
                                                              --------       --------       --------       --------       --------
<S>                                                           <C>            <C>            <C>            <C>            <C>
  Hotel operations:
    Rooms                                                           --             --             --             --             --
    Food and beverage                                               --             --             --             --             --
    Other operating departments                                     --             --             --             --             --
  Office rental and other revenues                                  --             --             --             --             --
 Participating lease revenue                                        19            454             --            315             --
                                                              --------       --------       --------       --------       --------
Total revenue                                                       19            454             --            315             --

Hotel operating expenses by department:                             --             --             --             --             --
    Rooms                                                           --             --             --             --             --
    Food and beverage                                               --             --             --             --             --
    Other operating departments                                     --             --             --             --             --
Office rental, parking and other operating expenses                 --             --             --             --             --
Other operating expenses:
    General and administrative                                      --              1             --              1             --
    Property operating costs                                        --             --             --             --             --
    Depreciation and amortization                                   98            361             --             51             --
    Loss on asset impairments                                       --             --             --             --             --
    Property taxes, insurance and other                             87             90             --             99             --
                                                              --------       --------       --------       --------       --------
Operating expenses                                                 185            452             --            151             --
                                                              --------       --------       --------       --------       --------

Operating (loss) income                                           (166)             2             --            164             --
 Change in fair value of non-hedging derivatives, net of
   swap payments                                                    --             --             --             --             --
 Minority interest expense                                          --             --             --             --             --
 Interest expense, net                                              12           (354)            --              7             --
 Equity in income from consolidated entities                        --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 (Loss) income before income taxes and discontinued
   operations                                                     (154)          (352)            --            171             --

 Income tax benefit                                                 --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 Loss from continuing operations                                  (154)          (352)            --            171             --

 Discontinued operations:                                           --             --             --             --             --
 Income (loss)  from discontinued operations before tax
   (expense) benefit                                                --             --            (65)            --            316
 Income tax (expense) benefit                                       --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 Income (loss)  from discontinued operations                        --             --            (65)            --            316
                                                              --------       --------       --------       --------       --------

 Net income (loss)                                                (154)          (352)           (65)           171            316
                                                              ========       ========       ========       ========       ========
</TABLE>

<PAGE>

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

<TABLE>
<CAPTION>
                                                              MERISTAR       MERISTAR       MERISTAR       MERISTAR       MERISTAR
                                                               SUB 2D,        SUB 4F,        SUB 5K,        SUB 5M,        SUB 1E,
                                                                LLC            L.P.           LLC            LLC            L.P.
                                                              --------       --------       --------       --------       --------
<S>                                                           <C>            <C>            <C>            <C>            <C>
  Hotel operations:
    Rooms                                                           --             --             --             --             --
    Food and beverage                                               --             --             --             --             --
    Other operating departments                                     --             --             --             --             --
  Office rental and other revenues                                  --              4             --             --             --
 Participating lease revenue                                       458            467            525            303             --
                                                              --------       --------       --------       --------       --------
Total revenue                                                      458            471            525            303             --

Hotel operating expenses by department:                             --             --             --             --             --
    Rooms                                                           --             --             --             --             --
    Food and beverage                                               --             --             --             --             --
    Other operating departments                                     --             --             --             --             --
Office rental, parking and other operating expenses                 --             --             --             --             --
Other operating expenses:
    General and administrative                                       1             --              1              1             --
    Property operating costs                                        --             --             --             --             --
    Depreciation and amortization                                  118            280            297            113             --
    Loss on asset impairments                                       --             --             --             --             --
    Property taxes, insurance and other                             70            100             95             70             --
                                                              --------       --------       --------       --------       --------
Operating expenses                                                 189            380            393            184             --
                                                              --------       --------       --------       --------       --------

Operating (loss) income                                            269             91            132            119             --
 Change in fair value of non-hedging derivatives, net of
   swap payments                                                    --             --             --             --             --
 Minority interest expense                                          --             --             --             --             --
 Interest expense, net                                            (194)            11             30              6             --
 Equity in income from consolidated entities                        --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 (Loss) income before income taxes and discontinued
   operations                                                       75            102            162            125             --

 Income tax benefit                                                 --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 Loss from continuing operations                                    75            102            162            125             --

 Discontinued operations:                                           --             --             --             --             --
 Income (loss)  from discontinued operations before tax
   (expense) benefit                                                --             --             --             --            431
 Income tax (expense) benefit                                       --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 Income (loss)  from discontinued operations                        --             --             --             --            431
                                                              --------       --------       --------       --------       --------

 Net income (loss)                                                  75            102            162            125            431
                                                              ========       ========       ========       ========       ========
</TABLE>

<TABLE>
<CAPTION>
                                                              MERISTAR       MERISTAR       MERISTAR       MERISTAR       MERISTAR
                                                               SUB 5O,        SUB 6M         SUB 4B,        SUB 6C,        SUB 2C,
                                                                LLC           COMPANY         L.P.           LLC            LLC
                                                              --------       --------       --------       --------       --------
<S>                                                           <C>            <C>            <C>            <C>            <C>
  Hotel operations:
    Rooms                                                           --             --             --             --             --
    Food and beverage                                               --             --             --             --             --
    Other operating departments                                     --             --             --             --             --
  Office rental and other revenues                                  --             --             --              5             10
 Participating lease revenue                                       124          1,146             32            671            483
                                                              --------       --------       --------       --------       --------
Total revenue                                                      124          1,146             32            676            493

Hotel operating expenses by department:                             --             --             --             --             --
    Rooms                                                           --             --             --             --             --
    Food and beverage                                               --             --             --             --             --
    Other operating departments                                     --             --             --             --             --
Office rental, parking and other operating expenses                 --             --             --             --             --
Other operating expenses:
    General and administrative                                       1              1             --              1              1
    Property operating costs                                        --             --             --             --             --
    Depreciation and amortization                                   55            302            118            191            258
    Loss on asset impairments                                       --             --             --             --             --
    Property taxes, insurance and other                             24             74            102             56            254
                                                              --------       --------       --------       --------       --------
Operating expenses                                                  80            377            220            248            513
                                                              --------       --------       --------       --------       --------

Operating (loss) income                                             44            769           (188)           428            (20)
 Change in fair value of non-hedging derivatives, net of
   swap payments                                                    --             --             --             --             --
 Minority interest expense                                          --             --             --             --             --
 Interest expense, net                                               2              8             72             13           (336)
 Equity in income from consolidated entities                        --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 (Loss) income before income taxes and discontinued
   operations                                                       46            777           (116)           441           (356)

 Income tax benefit                                                 --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 Loss from continuing operations                                    46            777           (116)           441           (356)

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

 Income (loss)  from discontinued operations                        --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 Net income (loss)                                                  46            777           (116)           441           (356)
                                                              ========       ========       ========       ========       ========
</TABLE>

<PAGE>

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

<TABLE>
<CAPTION>
                                                              MERISTAR       MERISTAR       MERISTAR       MERISTAR       MERISTAR
                                                               SUB 4G,        SUB 3B,        SUB 5G,        SUB 5P,        SUB 5J,
                                                                L.P.           LLC            L.P.           LLC            LLC
                                                              --------       --------       --------       --------       --------
<S>                                                           <C>            <C>            <C>            <C>            <C>
  Hotel operations:
    Rooms                                                           --             --             --             --             --
    Food and beverage                                               --             --             --             --             --
    Other operating departments                                     --             --             --             --             --
  Office rental and other revenues                                   9             --             17             --             --
 Participating lease revenue                                       456             --          2,193            148          1,781
                                                              --------       --------       --------       --------       --------
Total revenue                                                      465             --          2,210            148          1,781

Hotel operating expenses by department:                             --             --             --             --             --
    Rooms                                                           --             --             --             --             --
    Food and beverage                                               --             --             --             --             --
    Other operating departments                                     --             --             --             --             --
Office rental, parking and other operating expenses                 --             --             --             --             --
Other operating expenses:
    General and administrative                                       1             --             --             --              1
    Property operating costs                                        --             --             --             --             --
    Depreciation and amortization                                  229             --          1,548              1            871
    Loss on asset impairments                                       --             --             --             --             --
    Property taxes, insurance and other                            161             --            460             (6)           259
                                                              --------       --------       --------       --------       --------
Operating expenses                                                 391             --          2,008             (5)         1,131
                                                              --------       --------       --------       --------       --------

Operating (loss) income                                             74             --            202            153            650
 Change in fair value of non-hedging derivatives, net of
   swap payments                                                    --             --             --             --             --
 Minority interest expense                                          --             --             --             --             --
 Interest expense, net                                               7             --             41             --             42
 Equity in income from consolidated entities                        --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 (Loss) income before income taxes and discontinued
   operations                                                       81             --            243            153            692

 Income tax benefit                                                 --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 Loss from continuing operations                                    81             --            243            153            692

 Discontinued operations:                                           --             --             --             --             --
 Income (loss)  from discontinued operations before tax
   (expense) benefit                                                --            (24)            --             --             --
 Income tax (expense) benefit                                       --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 Income (loss)  from discontinued operations                        --            (24)            --             --             --
                                                              --------       --------       --------       --------       --------

 Net income (loss)                                                  81            (24)           243            153            692
                                                              ========       ========       ========       ========       ========
</TABLE>

<TABLE>
<CAPTION>
                                                              MERISTAR       MERISTAR       MERISTAR       MERISTAR       MERISTAR
                                                               SUB 5Q,        SUB 5A,        SUB 8D,        SUB 4J,        HOTEL
                                                                LLC            LLC            LLC            LLC        LESSEE, INC.
                                                              --------       --------       --------       --------     ------------
<S>                                                           <C>            <C>            <C>            <C>            <C>
  Hotel operations:
    Rooms                                                           --             --             --             --        147,548
    Food and beverage                                               --             --             --             --         54,089
    Other operating departments                                     --             --             --             --         17,469
  Office rental and other revenues                                  --             29             --             41           (650)
 Participating lease revenue                                       359          1,418            579            718             --
                                                              --------       --------       --------       --------       --------
Total revenue                                                      359          1,447            579            759        218,456

Hotel operating expenses by department:                             --             --             --             --             --
    Rooms                                                           --             --             --             --         38,259
    Food and beverage                                               --             --             --             --         41,998
    Other operating departments                                     --             --             --             --         10,424
Office rental, parking and other operating expenses                 --             --             --            120             --
Other operating expenses:
    General and administrative                                       1              1              1              1         37,423
    Property operating costs                                        --             --             --             --         37,287
    Depreciation and amortization                                  120            364            317            336            134
    Loss on asset impairments                                       --             --             --             --             --
    Property taxes, insurance and other                             57            172            109            153         70,197
                                                              --------       --------       --------       --------       --------
Operating expenses                                                 178            537            427            610        235,722
                                                              --------       --------       --------       --------       --------

Operating (loss) income                                            181            910            152            149        (17,266)
 Change in fair value of non-hedging derivatives, net of
   swap payments                                                    --             --             --             --             --
 Minority interest expense                                          --             --             --             --             --
 Interest expense, net                                              25           (690)             7             24            (39)
 Equity in income from consolidated entities                        --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 (Loss) income before income taxes and discontinued
   operations                                                      206            220            159            173        (17,305)

 Income tax benefit                                                 --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 Loss from continuing operations                                   206            220            159            173        (17,305)

 Discontinued operations:                                           --             --             --             --             --
 Income (loss)  from discontinued operations before tax
   (expense) benefit                                                --             --             --             --         (1,927)
 Income tax (expense) benefit                                       --             --             --             --             --
                                                              --------       --------       --------       --------       --------

 Income (loss)  from discontinued operations                        --             --             --             --         (1,927)
                                                              --------       --------       --------       --------       --------

 Net income (loss)                                                 206            220            159            173        (19,232)
                                                              ========       ========       ========       ========       ========
</TABLE>

<PAGE>

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

<TABLE>
<CAPTION>
                                                             GUARANTOR
                                                            SUBSIDIARIES                     TOTAL
                                                               TOTAL       ELIMINATIONS   CONSOLIDATED
                                                            ------------   ------------   ------------
<S>                                                         <C>            <C>            <C>
  Hotel operations:
    Rooms                                                      147,548             --        147,548
    Food and beverage                                           54,089             --         54,089
    Other operating departments                                 17,469             --         17,469
  Office rental and other revenues                                 (31)            --          3,309
 Participating lease revenue                                    30,871        (63,997)            --
                                                              --------       --------       --------
Total revenue                                                  249,946        (63,997)       222,415

Hotel operating expenses by department:                             --             --             --
    Rooms                                                       38,259             --         38,259
    Food and beverage                                           41,998             --         41,998
    Other operating departments                                 10,424             --         10,424
Office rental, parking and other operating expenses                340             --            740
Other operating expenses:                                           --                            --
    General and administrative                                  37,459             --         39,781
    Property operating costs                                    37,287             --         37,287
    Depreciation and amortization                               13,201             --         28,256
    Loss on asset impairments                                       --             --             --
    Property taxes, insurance and other                         76,479        (63,997)        15,478
                                                              --------       --------       --------
Operating expenses                                             255,447        (63,997)       212,223
                                                              --------       --------       --------

Operating (loss) income                                         (5,501)            --         10,192
 Change in fair value of non-hedging derivatives, net of
   swap payments                                                    --             --         (1,132)
 Minority interest expense                                          --             --             18
 Interest expense, net                                          (1,264)            --        (33,949)
 Equity in income from consolidated entities                        --         (3,797)            --
                                                              --------       --------       --------

 (Loss) income before income taxes and discontinued
   operations                                                   (6,765)         3,797        (24,871)

 Income tax benefit                                                 --             --            591
                                                              --------       --------       --------

 Loss from continuing operations                                (6,765)         3,797        (24,280)

 Discontinued operations:                                           --             --             --
 Income (loss)  from discontinued operations before tax
   (expense) benefit                                            (7,471)            --         (6,591)
 Income tax (expense) benefit                                       --             --            132
                                                              --------       --------       --------

 Income (loss)  from discontinued operations                    (7,471)            --         (6,459)
                                                              --------       --------       --------

 Net income (loss)                                             (14,236)         3,797        (30,739)
                                                              ========       ========       ========
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                             MERISTAR         NON-         MERISTAR         AGH          MERISTAR
                                                            HOSPITALITY    GUARANTOR        SUB 7C,        UPREIT,        SUB 5N,
                                                             OP, L.P.     SUBSIDIARIES       LLC            LLC            LLC
                                                            -----------   ------------     --------       --------       --------
<S>                                                          <C>            <C>            <C>            <C>            <C>
  Hotel operations:
    Rooms                                                          --             --             --             --             --
    Food and beverage                                              --             --             --             --             --
    Other operating departments                                    --             --             --             --             --
  Office rental and other revenues                              5,831          2,147             --             --             --
 Participating lease revenue                                       --         94,162             --             --            680
                                                             --------       --------       --------       --------       --------
Total revenue                                                   5,831         96,309             --             --            680

Hotel operating expenses by department:
    Rooms                                                          --             --             --             --             --
    Food and beverage                                              --             --             --             --             --
    Other operating departments                                    --             --             --             --             --
Office rental, parking and other operating expenses                --            893             --             --             --
Other operating expenses:
    General and administrative                                  7,878             --             --             --             --
    Property operating costs                                     (359)            --             --             --             --
    Depreciation and amortization                               7,234         37,401             --             --            103
    Loss on asset impairments                                      --        119,269             --             --             --
    Property taxes, insurance and other                         1,632         16,475             --             --             79
                                                             --------       --------       --------       --------       --------
Operating expenses                                             16,385        174,038             --             --            182
                                                             --------       --------       --------       --------       --------

Operating income (loss)                                       (10,554)       (77,729)            --             --            498
 Gain on early extinguishment of debt                           4,574             --             --             --             --
 Minority interest expense                                         (6)            --             --             --             --
 Interest expense, net                                        (77,586)       (20,862)            --             --             --
 Equity in loss from consolidated entities                   (257,756)            --             --             --             --
                                                             --------       --------       --------       --------       --------

 (Loss) income before income taxes and discontinued
   operations                                                (341,328)       (98,591)            --             --            498

 Income tax benefit                                               462             --             --             --             --
                                                             --------       --------       --------       --------       --------

 Loss from continuing operations                             (340,866)       (98,591)            --             --            498

 Discontinued operations:
 Income (loss)  from discontinued operations before tax
   (expense) benefit                                               --            657             --             --             --
 Income tax (expense) benefit                                     (32)            --             --             --             --
                                                             --------       --------       --------       --------       --------

 (Loss) income from discontinued operations                       (32)           657             --             --             --
                                                             --------       --------       --------       --------       --------
 Net (loss) income                                           (340,898)       (97,934)            --             --            498
                                                             ========       ========       ========       ========       ========
</TABLE>

<TABLE>
<CAPTION>
                                                             MERISTAR       MERISTAR       MERISTAR       MERISTAR       MERISTAR
                                                              SUB 8A,        SUB 8F,        SUB 8G,        SUB 6H,        SUB 8B,
                                                               LLC            L.P.           LLC            L.P.           LLC
                                                             --------       --------       --------       --------       --------
<S>                                                          <C>            <C>            <C>            <C>            <C>
  Hotel operations:
    Rooms                                                          --             --             --             --             --
    Food and beverage                                              --             --             --             --             --
    Other operating departments                                    --             --             --             --             --
  Office rental and other revenues                                 --             --             --             --             --
 Participating lease revenue                                       --          1,759             --            886          5,454
                                                             --------       --------       --------       --------       --------
Total revenue                                                      --          1,759             --            886          5,454

Hotel operating expenses by department:
    Rooms                                                          --             --             --             --             --
    Food and beverage                                              --             --             --             --             --
    Other operating departments                                    --             --             --             --             --
Office rental, parking and other operating expenses                --             --             --             --             --
Other operating expenses:
    General and administrative                                     --             --             --             --             --
    Property operating costs                                       --             --             --             --             --
    Depreciation and amortization                                  --            423             --            412          1,821
    Loss on asset impairments                                      --             --             --            500             --
    Property taxes, insurance and other                            --            401             --             71          1,038
                                                             --------       --------       --------       --------       --------
Operating expenses                                                 --            824             --            983          2,859
                                                             --------       --------       --------       --------       --------

Operating income (loss)                                            --            935             --            (97)         2,595
 Gain on early extinguishment of debt                              --             --             --             --             --
 Minority interest expense                                         --             --             --             --             --
 Interest expense, net                                             --             --             --             --             --
 Equity in loss from consolidated entities                         --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 (Loss) income before income taxes and discontinued
   operations                                                      --            935             --            (97)         2,595

 Income tax benefit                                                --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 Loss from continuing operations                                   --            935             --            (97)         2,595

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

 (Loss) income from discontinued operations                        --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 Net (loss) income                                                 --            935             --            (97)         2,595
                                                             ========       ========       ========       ========       ========
</TABLE>

<PAGE>

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

<TABLE>
<CAPTION>
                                                             MERISTAR       MERISTAR       MERISTAR       MERISTAR       MERISTAR
                                                              SUB 1C,        SUB 8E,        SUB 7F,        SUB 5L,        SUB 3C,
                                                               L.P.           LLC            LLC            LLC            LLC
                                                             --------       --------       --------       --------       --------
<S>                                                          <C>            <C>            <C>            <C>            <C>
  Hotel operations:
    Rooms                                                          --             --             --             --             --
    Food and beverage                                              --             --             --             --             --
    Other operating departments                                    --             --             --             --             --
  Office rental and other revenues                                 --             16             --             --             --
 Participating lease revenue                                    1,012          1,086            721            801          1,316
                                                             --------       --------       --------       --------       --------
Total revenue                                                   1,012          1,102            721            801          1,316

Hotel operating expenses by department:
    Rooms                                                          --             --             --             --             --
    Food and beverage                                              --             --             --             --             --
    Other operating departments                                    --             --             --             --             --
Office rental, parking and other operating expenses                --             --             --             --             --
Other operating expenses:
    General and administrative                                     --             --             --             --             --
    Property operating costs                                       --             --             --             --             --
    Depreciation and amortization                                 762            434            328            103            532
    Loss on asset impairments                                      --             --          2,037             --             --
    Property taxes, insurance and other                           554            163            122             99            296
                                                             --------       --------       --------       --------       --------
Operating expenses                                              1,316            597          2,487            202            828
                                                             --------       --------       --------       --------       --------

Operating income (loss)                                          (304)           505         (1,766)           599            488
 Gain on early extinguishment of debt                              --             --             --             --             --
 Minority interest expense                                         --             --             --             --             --
 Interest expense, net                                             --             --             --             (2)            --
 Equity in loss from consolidated entities                         --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 (Loss) income before income taxes and discontinued
   operations                                                    (304)           505         (1,766)           597            488

 Income tax benefit                                                --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 Loss from continuing operations                                 (304)           505         (1,766)           597            488

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

 (Loss) income from discontinued operations                        --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 Net (loss) income                                               (304)           505         (1,766)           597            488
                                                             ========       ========       ========       ========       ========
</TABLE>

<TABLE>
<CAPTION>
                                                             MERISTAR       MERISTAR       MERISTAR       MERISTAR       MERISTAR
                                                              SUB 5R,        SUB 6D,        SUB 6E,        SUB 4E,        SUB 1B,
                                                               LLC            LLC            LLC            L.P.           LLC
                                                             --------       --------       --------       --------       --------
<S>                                                          <C>            <C>            <C>            <C>            <C>
  Hotel operations:
    Rooms                                                          --             --             --             --             --
    Food and beverage                                              --             --             --             --             --
    Other operating departments                                    --             --             --             --             --
  Office rental and other revenues                                 --             23             --              4            341
 Participating lease revenue                                       --          1,460          3,984          1,054          1,969
                                                             --------       --------       --------       --------       --------
Total revenue                                                      --          1,483          3,984          1,058          2,310

Hotel operating expenses by department:
    Rooms                                                          --             --             --             --             --
    Food and beverage                                              --             --             --             --             --
    Other operating departments                                    --             --             --             --             --
Office rental, parking and other operating expenses                --             --             --             --             --
Other operating expenses:
    General and administrative                                     --             --             --             --             --
    Property operating costs                                       --             --             --             --             --
    Depreciation and amortization                                  --            410          1,219            502            406
    Loss on asset impairments                                      --             --             --         15,347             --
    Property taxes, insurance and other                            --            251            516            336            111
                                                             --------       --------       --------       --------       --------
Operating expenses                                                 --            661          1,735         16,185            517
                                                             --------       --------       --------       --------       --------

Operating income (loss)                                            --            822          2,249        (15,127)         1,793
 Gain on early extinguishment of debt                              --             --             --             --             --
 Minority interest expense                                         --             --             --             --             --
 Interest expense, net                                             --             --             --             --            (10)
 Equity in loss from consolidated entities                         --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 (Loss) income before income taxes and discontinued
   operations                                                      --            822          2,249        (15,127)         1,783

 Income tax benefit                                                --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 Loss from continuing operations                                   --            822          2,249        (15,127)         1,783

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

 (Loss) income from discontinued operations                        --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 Net (loss) income                                                 --            822          2,249        (15,127)         1,783
                                                             ========       ========       ========       ========       ========
</TABLE>

<PAGE>


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

<TABLE>
<CAPTION>
                                                             MERISTAR       MERISTAR       MERISTAR       MERISTAR       MERISTAR
                                                              SUB 5F,        SUB 6G,        SUB 8C,        SUB 4C,        SUB 4H,
                                                               L.P.           LLC            LLC            L.P            L.P.
                                                             --------       --------       --------       --------       --------
<S>                                                          <C>            <C>            <C>            <C>            <C>
  Hotel operations:
    Rooms                                                          --             --             --             --             --
    Food and beverage                                              --             --             --             --             --
    Other operating departments                                    --             --             --             --             --
  Office rental and other revenues                                 --             --              3             --             --
 Participating lease revenue                                    2,156          1,863          1,500             --            244
                                                             --------       --------       --------       --------       --------
Total revenue                                                   2,156          1,863          1,503             --            244

Hotel operating expenses by department:
    Rooms                                                          --             --             --             --             --
    Food and beverage                                              --             --             --             --             --
    Other operating departments                                    --             --             --             --             --
Office rental, parking and other operating expenses                --             --             --             --             --
Other operating expenses:
    General and administrative                                     --             --             --             --             --
    Property operating costs                                       --             --             --             --             --
    Depreciation and amortization                                 743            634            535             --            330
    Loss on asset impairments                                   9,231             --          5,213             --          5,187
    Property taxes, insurance and other                           305            284            513             --            141
                                                             --------       --------       --------       --------       --------
Operating expenses                                             10,279            918          6,261             --          5,658
                                                             --------       --------       --------       --------       --------

Operating income (loss)                                        (8,123)           945         (4,758)            --         (5,414)
 Gain on early extinguishment of debt                              --             --             --             --             --
 Minority interest expense                                         --             --             --             --             --
 Interest expense, net                                             --             --             --             --             --
 Equity in loss from consolidated entities                         --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 (Loss) income before income taxes and discontinued
   operations                                                  (8,123)           945         (4,758)            --         (5,414)

 Income tax benefit                                                --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 Loss from continuing operations                               (8,123)           945         (4,758)            --         (5,414)

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

 (Loss) income from discontinued operations                        --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 Net (loss) income                                             (8,123)           945         (4,758)            --         (5,414)
                                                             ========       ========       ========       ========       ========
</TABLE>

<TABLE>
<CAPTION>
                                                                                                                         MERISTAR
                                                             MERISTAR       MERISTAR       MERISTAR       MERISTAR        SUB 7A
                                                              SUB 7E,        SUB 3D,        SUB 1A,        SUB 5E,        JOINT
                                                               LLC            LLC            LLC            LLC           VENTURE
                                                             --------       --------       --------       --------       --------
<S>                                                          <C>            <C>            <C>            <C>            <C>
  Hotel operations:
    Rooms                                                          --             --             --             --             --
    Food and beverage                                              --             --             --             --             --
    Other operating departments                                    --             --             --             --             --
  Office rental and other revenues                                 --              1             --             --             --
 Participating lease revenue                                    1,009          1,133          1,421          3,934            876
                                                             --------       --------       --------       --------       --------
Total revenue                                                   1,009          1,134          1,421          3,934            876

Hotel operating expenses by department:
    Rooms                                                          --             --             --             --             --
    Food and beverage                                              --             --             --             --             --
    Other operating departments                                    --             --             --             --             --
Office rental, parking and other operating expenses                --             --             --             --             --
Other operating expenses:
    General and administrative                                     --             --             --             --             --
    Property operating costs                                       --             --             --             --             --
    Depreciation and amortization                                 462            583            338          1,438            275
    Loss on asset impairments                                      --             --             --             --          5,478
    Property taxes, insurance and other                           148            177            321            302            149
                                                             --------       --------       --------       --------       --------
Operating expenses                                                610            760            659          1,740          5,902
                                                             --------       --------       --------       --------       --------

Operating income (loss)                                           399            374            762          2,194         (5,026)
 Gain on early extinguishment of debt                              --             --             --             --             --
 Minority interest expense                                         --             --             --             --             --
 Interest expense, net                                             --             --             --             --             --
 Equity in loss from consolidated entities                         --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 (Loss) income before income taxes and discontinued
   operations                                                     399            374            762          2,194         (5,026)

 Income tax benefit                                                --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 Loss from continuing operations                                  399            374            762          2,194         (5,026)

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

 (Loss) income from discontinued operations                        --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 Net (loss) income                                                399            374            762          2,194         (5,026)
                                                             ========       ========       ========       ========       ========
</TABLE>

<PAGE>



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

<TABLE>
<CAPTION>
                                                             MERISTAR       MERISTAR       MERISTAR       MERISTAR       MERISTAR
                                                              SUB 6K,        SUB 2B,        SUB 3A,        SUB 4A,        SUB 4D,
                                                               LLC            LLC            LLC            L.P.           L.P.
                                                             --------       --------       --------       --------       --------
<S>                                                          <C>            <C>           <C>             <C>            <C>
  Hotel operations:
    Rooms                                                          --             --             --             --             --
    Food and beverage                                              --             --             --             --             --
    Other operating departments                                    --             --             --             --             --
  Office rental and other revenues                                 --              3             --             --             --
 Participating lease revenue                                    2,980            378            409            766             --
                                                             --------       --------       --------       --------       --------
Total revenue                                                   2,980            381            409            766             --

Hotel operating expenses by department:
    Rooms                                                          --             --             --             --             --
    Food and beverage                                              --             --             --             --             --
    Other operating departments                                    --             --             --             --             --
Office rental, parking and other operating expenses                --             --             --             --             --
Other operating expenses:
    General and administrative                                     --             --             --             --             --
    Property operating costs                                       --             --             --             --             --
    Depreciation and amortization                                 538            292            186             31             --
    Loss on asset impairments                                      --          4,670          2,137          1,455             --
    Property taxes, insurance and other                           288            113             80            222             --
                                                             --------       --------       --------       --------       --------
Operating expenses                                                826          5,075          2,403          1,708             --
                                                             --------       --------       --------       --------       --------

Operating income (loss)                                         2,154         (4,694)        (1,994)          (942)            --
 Gain on early extinguishment of debt                              --             --             --             --             --
 Minority interest expense                                         --             --             --             --             --
 Interest expense, net                                             --           (347)            --             --             --
 Equity in loss from consolidated entities                         --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 (Loss) income before income taxes and discontinued
   operations                                                   2,154         (5,041)        (1,994)          (942)            --

 Income tax benefit                                                --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 Loss from continuing operations                                2,154         (5,041)        (1,994)          (942)            --

 Discontinued operations:
 Income (loss)  from discontinued operations before tax
   (expense) benefit                                               --             --             --             --           (939)
 Income tax (expense) benefit                                      --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 (Loss) income from discontinued operations                        --             --             --             --           (939)
                                                             --------       --------       --------       --------       --------

 Net (loss) income                                              2,154         (5,041)        (1,994)          (942)          (939)
                                                             ========       ========       ========       ========       ========
</TABLE>

<TABLE>
<CAPTION>
                                                             MERISTAR       MERISTAR          MDV         MERISTAR       MERISTAR
                                                              SUB 2A,        SUB 6L,        LIMITED        SUB 5C,        SUB 6J,
                                                               LLC            LLC         PARTNERSHIP        LLC            LLC
                                                             --------       --------      -----------     --------       --------
<S>                                                          <C>            <C>           <C>             <C>            <C>
  Hotel operations:
    Rooms                                                          --             --             --             --             --
    Food and beverage                                              --             --             --             --             --
    Other operating departments                                    --             --             --             --             --
  Office rental and other revenues                                 --             --             --             --             --
 Participating lease revenue                                      410          1,291            379            990          1,620
                                                             --------       --------       --------       --------       --------
Total revenue                                                     410          1,291            379            990          1,620

Hotel operating expenses by department:
    Rooms                                                          --             --             --             --             --
    Food and beverage                                              --             --             --             --             --
    Other operating departments                                    --             --             --             --             --
Office rental, parking and other operating expenses                --             --             --             --             --
Other operating expenses:
    General and administrative                                     --             --             --             --             --
    Property operating costs                                       --             --             --             --             --
    Depreciation and amortization                                 233            561            104            349            440
    Loss on asset impairments                                   2,828         13,286             --          7,187             --
    Property taxes, insurance and other                           144            164            105            372            198
                                                             --------       --------       --------       --------       --------
Operating expenses                                              3,205         14,011            209          7,908            638
                                                             --------       --------       --------       --------       --------

Operating income (loss)                                        (2,795)       (12,720)           170         (6,918)           982
 Gain on early extinguishment of debt                              --             --             --             --             --
 Minority interest expense                                         --             --             --             --             --
 Interest expense, net                                           (566)            --             --             --              2
 Equity in loss from consolidated entities                         --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 (Loss) income before income taxes and discontinued
   operations                                                  (3,361)       (12,720)           170         (6,918)           984

 Income tax benefit                                                --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 Loss from continuing operations                               (3,361)       (12,720)           170         (6,918)           984

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

 (Loss) income from discontinued operations                        --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 Net (loss) income                                             (3,361)       (12,720)           170         (6,918)           984
                                                             ========       ========       ========       ========       ========
</TABLE>

<PAGE>

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

<TABLE>
<CAPTION>
                                                             MERISTAR       MERISTAR       MERISTAR       MERISTAR       MERISTAR
                                                              SUB 1D,        SUB 7B,        SUB 7D,        SUB 7G,        SUB 6B,
                                                               LLC            L.P.           LLC            LLC            LLC
                                                             --------       --------       --------       --------       --------
<S>                                                          <C>            <C>            <C>            <C>            <C>
  Hotel operations:
    Rooms                                                          --             --             --             --             --
    Food and beverage                                              --             --             --             --             --
    Other operating departments                                    --             --             --             --             --
  Office rental and other revenues                                197             --          1,403             --             --
 Participating lease revenue                                    3,402          1,204          4,275            450            825
                                                             --------       --------       --------       --------       --------
Total revenue                                                   3,599          1,204          5,678            450            825

Hotel operating expenses by department:
    Rooms                                                          --             --             --             --             --
    Food and beverage                                              --             --             --             --             --
    Other operating departments                                    --             --             --             --             --
Office rental, parking and other operating expenses                78             --            776             --             --
Other operating expenses:
    General and administrative                                     --             --             --             --             --
    Property operating costs                                       --             --             --             --             --
    Depreciation and amortization                               1,707            398          1,292            412            337
    Loss on asset impairments                                      --         10,288             --          7,416             --
    Property taxes, insurance and other                         1,247            551          1,663            161            150
                                                             --------       --------       --------       --------       --------
Operating expenses                                              3,032         11,237          3,731          7,989            487
                                                             --------       --------       --------       --------       --------

Operating income (loss)                                           567        (10,033)         1,947         (7,539)           338
 Gain on early extinguishment of debt                              --             --             --             --             --
 Minority interest expense                                         --             --             --             --             --
 Interest expense, net                                             --             --             --             --             --
 Equity in loss from consolidated entities                         --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 (Loss) income before income taxes and discontinued
   operations                                                     567        (10,033)         1,947         (7,539)           338

 Income tax benefit                                                --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 Loss from continuing operations                                  567        (10,033)         1,947         (7,539)           338

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

 (Loss) income from discontinued operations                        --            --             --             --             --
                                                             --------       --------       --------       --------       --------

 Net (loss) income                                                567        (10,033)         1,947         (7,539)           338
                                                             ========       ========       ========       ========       ========
</TABLE>

<TABLE>
<CAPTION>
                                                             MERISTAR       MERISTAR       MERISTAR       MERISTAR         AGH
                                                              SUB 4I,        SUB 5D,        SUB 5H,        SUB 7H,        PSS I,
                                                               L.P.           LLC            LLC            LLC            INC.
                                                             --------       --------       --------       --------       --------
<S>                                                          <C>            <C>            <C>            <C>            <C>
  Hotel operations:
    Rooms                                                          --             --             --             --             --
    Food and beverage                                              --             --             --             --             --
    Other operating departments                                    --             --             --             --             --
  Office rental and other revenues                                 --             --             --             --             --
 Participating lease revenue                                       60          1,534             --            970             --
                                                             --------       --------       --------       --------       --------
Total revenue                                                      60          1,534             --            970             --

Hotel operating expenses by department:
    Rooms                                                          --             --             --             --             --
    Food and beverage                                              --             --             --             --             --
    Other operating departments                                    --             --             --             --             --
Office rental, parking and other operating expenses                --             --             --             --             --
Other operating expenses:
    General and administrative                                     --             --             --             --             --
    Property operating costs                                       --             --             --             --             --
    Depreciation and amortization                                 223          1,095             --            140             --
    Loss on asset impairments                                   1,259             --             --          1,383             --
    Property taxes, insurance and other                           178            169             --            380             --
                                                             --------       --------       --------       --------       --------
Operating expenses                                              1,660          1,264             --          1,903             --
                                                             --------       --------       --------       --------       --------

Operating income (loss)                                        (1,600)           270             --           (933)            --
 Gain on early extinguishment of debt                              --             --             --             --             --
 Minority interest expense                                         --             --             --             --             --
 Interest expense, net                                             --           (911)            --             --             --
 Equity in loss from consolidated entities                         --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 (Loss) income before income taxes and discontinued
   operations                                                  (1,600)          (641)            --           (933)            --

 Income tax benefit                                                --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 Loss from continuing operations                               (1,600)          (641)            --           (933)            --

 Discontinued operations:
 Income (loss)  from discontinued operations before tax
   (expense) benefit                                               --             --        (18,966)            --           (929)
 Income tax (expense) benefit                                      --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 (Loss) income from discontinued operations                        --             --        (18,966)            --           (929)
                                                             --------       --------       --------       --------       --------

 Net (loss) income                                             (1,600)          (641)       (18,966)          (933)          (929)
                                                             ========       ========       ========       ========       ========
</TABLE>



<PAGE>


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

<TABLE>
<CAPTION>
                                                             MERISTAR       MERISTAR       MERISTAR       MERISTAR       MERISTAR
                                                              SUB 2D,        SUB 4F,        SUB 5K,        SUB 5M,        SUB 1E,
                                                               LLC            L.P.           LLC            LLC            L.P.
                                                             --------       --------       --------       --------       --------
<S>                                                          <C>            <C>            <C>            <C>            <C>
  Hotel operations:
    Rooms                                                          --             --             --             --             --
    Food and beverage                                              --             --             --             --             --
    Other operating departments                                    --             --             --             --             --
  Office rental and other revenues                                 --             11             --             --             --
 Participating lease revenue                                    1,068          1,440          1,730          1,280             --
                                                             --------       --------       --------       --------       --------
Total revenue                                                   1,068          1,451          1,730          1,280             --

Hotel operating expenses by department:
    Rooms                                                          --             --             --             --             --
    Food and beverage                                              --             --             --             --             --
    Other operating departments                                    --             --             --             --             --
Office rental, parking and other operating expenses                --             --             --             --             --
Other operating expenses:
    General and administrative                                     --             --             --             --             --
    Property operating costs                                       --             --             --             --             --
    Depreciation and amortization                                 319            828            966            354             --
    Loss on asset impairments                                   8,685             --             --             --             --
    Property taxes, insurance and other                           216            261            285            201             --
                                                             --------       --------       --------       --------       --------
Operating expenses                                              9,220          1,089          1,251            555             --
                                                             --------       --------       --------       --------       --------

Operating income (loss)                                        (8,152)           362            479            725             --
 Gain on early extinguishment of debt                              --             --             --             --             --
 Minority interest expense                                         --             --             --             --             --
 Interest expense, net                                           (655)            --             --             --             --
 Equity in loss from consolidated entities                         --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 (Loss) income before income taxes and discontinued
   operations                                                  (8,807)           362            479            725             --

 Income tax benefit                                                --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 Loss from continuing operations                               (8,807)           362            479            725             --

 Discontinued operations:
 Income (loss)  from discontinued operations before tax
   (expense) benefit                                               --             --             --             --            927
 Income tax (expense) benefit                                      --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 (Loss) income from discontinued operations                        --             --             --             --            927
                                                             --------       --------       --------       --------       --------

 Net (loss) income                                             (8,807)           362            479            725            927
                                                             ========       ========       ========       ========       ========
</TABLE>


<TABLE>
<CAPTION>
                                                             MERISTAR       MERISTAR       MERISTAR       MERISTAR       MERISTAR
                                                              SUB 5O,        SUB 6M         SUB 4B,        SUB 6C,        SUB 2C,
                                                               LLC           COMPANY         L.P.           LLC            LLC
                                                             --------       --------       --------       --------       --------
<S>                                                          <C>            <C>            <C>            <C>            <C>
  Hotel operations:
    Rooms                                                          --             --             --             --             --
    Food and beverage                                              --             --             --             --             --
    Other operating departments                                    --             --             --             --             --
  Office rental and other revenues                                 --             --             --              6             50
 Participating lease revenue                                      576          3,277            136          2,192          1,171
                                                             --------       --------       --------       --------       --------
Total revenue                                                     576          3,277            136          2,198          1,221

Hotel operating expenses by department:
    Rooms                                                          --             --             --             --             --
    Food and beverage                                              --             --             --             --             --
    Other operating departments                                    --             --             --             --             --
Office rental, parking and other operating expenses                --             --             --             --             --
Other operating expenses:
    General and administrative                                     --             --             --             --             --
    Property operating costs                                       --             --             --             --             --
    Depreciation and amortization                                 171            890            413            580            697
    Loss on asset impairments                                      --             --            638             --         15,255
    Property taxes, insurance and other                            78            231            199            169            416
                                                             --------       --------       --------       --------       --------
Operating expenses                                                249          1,121          1,250            749         16,368
                                                             --------       --------       --------       --------       --------

Operating income (loss)                                           327          2,156         (1,114)         1,449        (15,147)
 Gain on early extinguishment of debt                              --             --             --             --             --
 Minority interest expense                                         --             --             --             --             --
 Interest expense, net                                             --             --             --             --         (1,145)
 Equity in loss from consolidated entities                         --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 (Loss) income before income taxes and discontinued
   operations                                                     327          2,156         (1,114)         1,449        (16,292)

 Income tax benefit                                                --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 Loss from continuing operations                                  327          2,156         (1,114)         1,449        (16,292)

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

 (Loss) income from discontinued operations                        --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 Net (loss) income                                                327          2,156         (1,114)         1,449        (16,292)
                                                             ========       ========       ========       ========       ========
</TABLE>

<PAGE>

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

<TABLE>
<CAPTION>
                                                             MERISTAR       MERISTAR       MERISTAR       MERISTAR       MERISTAR
                                                              SUB 4G,        SUB 3B,        SUB 5G,        SUB 5P,        SUB 5J,
                                                               L.P.           LLC            L.P.           LLC            LLC
                                                             --------       --------       --------       --------       --------
<S>                                                          <C>            <C>            <C>            <C>            <C>
  Hotel operations:
    Rooms                                                          --             --             --             --             --
    Food and beverage                                              --             --             --             --             --
    Other operating departments                                    --             --             --             --             --
  Office rental and other revenues                                 --             --             36             --             --
 Participating lease revenue                                    1,509             --          7,636            953          7,191
                                                             --------       --------       --------       --------       --------
Total revenue                                                   1,509             --          7,672            953          7,191

Hotel operating expenses by department:
    Rooms                                                          --             --             --             --             --
    Food and beverage                                              --             --             --             --             --
    Other operating departments                                    --             --             --             --             --
Office rental, parking and other operating expenses                --             --             --             --             --
Other operating expenses:
    General and administrative                                     --             --             --             --             --
    Property operating costs                                       --             --             --             --             --
    Depreciation and amortization                                 584             --          4,716              3          2,612
    Loss on asset impairments                                   8,500             --             --             --             --
    Property taxes, insurance and other                           478             --          1,441              6          1,130
                                                             --------       --------       --------       --------       --------
Operating expenses                                              9,562             --          6,157              9          3,742
                                                             --------       --------       --------       --------       --------

Operating income (loss)                                        (8,053)            --          1,515            944          3,449
 Gain on early extinguishment of debt                              --             --             --             --             --
 Minority interest expense                                         --             --             --             --             --
 Interest expense, net                                             --             --             --             --             (3)
 Equity in loss from consolidated entities                         --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 (Loss) income before income taxes and discontinued
   operations                                                  (8,053)            --          1,515            944          3,446

 Income tax benefit                                                --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 Loss from continuing operations                               (8,053)            --          1,515            944          3,446

 Discontinued operations:
 Income (loss) from discontinued operations before tax
   (expense) benefit                                               --         (2,034)            --             --             --
 Income tax (expense) benefit                                      --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 (Loss) income from discontinued operations                        --         (2,034)            --             --             --
                                                             --------       --------       --------       --------       --------

 Net (loss) income                                             (8,053)        (2,034)         1,515            944          3,446
                                                             ========       ========       ========       ========       ========
</TABLE>

<TABLE>
<CAPTION>
                                                             MERISTAR       MERISTAR       MERISTAR       MERISTAR       MERISTAR
                                                              SUB 5Q,        SUB 5A,        SUB 8D,        SUB 4J,        HOTEL
                                                               LLC            LLC            LLC            LLC        LESSEE, INC.
                                                             --------       --------       --------       --------     ------------
<S>                                                          <C>            <C>            <C>            <C>          <C>
  Hotel operations:
    Rooms                                                          --             --             --             --        455,590
    Food and beverage                                              --             --             --             --        181,230
    Other operating departments                                    --             --             --             --         56,736
  Office rental and other revenues                                 --             88             --            177             --
 Participating lease revenue                                    1,561          4,232          1,785          2,313             --
                                                             --------       --------       --------       --------       --------
Total revenue                                                   1,561          4,320          1,785          2,490        693,556

Hotel operating expenses by department:
    Rooms                                                          --             --             --             --        116,040
    Food and beverage                                              --             --             --             --        134,257
    Other operating departments                                    --             --             --             --         34,119
Office rental, parking and other operating expenses                --             --             --            400             --
Other operating expenses:
    General and administrative                                     --             --              6             --        113,795
    Property operating costs                                       --             --             --             --        110,203
    Depreciation and amortization                                 420          1,028            747            955            800
    Loss on asset impairments                                      --             --         16,128             --             --
    Property taxes, insurance and other                           166            534            333            234        212,718
                                                             --------       --------       --------       --------       --------
Operating expenses                                                586          1,562         17,214          1,589        721,932
                                                             --------       --------       --------       --------       --------

Operating income (loss)                                           975          2,758        (15,429)           901        (28,376)
 Gain on early extinguishment of debt                              --             --             --             --             --
 Minority interest expense                                         --             --             --             --             --
 Interest expense, net                                             --         (2,125)            --             --         (1,807)
 Equity in loss from consolidated entities                         --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 (Loss) income before income taxes and discontinued
   operations                                                     975            633        (15,429)           901        (30,183)

 Income tax benefit                                                --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 Loss from continuing operations                                  975            633        (15,429)           901        (30,183)

 Discontinued operations:
 Income (loss) from discontinued operations before tax
   (expense) benefit                                               --             --             --             --           (884)
 Income tax (expense) benefit                                      --             --             --             --             --
                                                             --------       --------       --------       --------       --------

 (Loss) income from discontinued operations                        --             --             --             --           (884)
                                                             --------       --------       --------       --------       --------

 Net (loss) income                                                975            633        (15,429)           901        (31,067)
                                                             ========       ========       ========       ========       ========
</TABLE>


<PAGE>

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

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

  Hotel operations:
    Rooms                                                     455,590             --        455,590
    Food and beverage                                         181,230             --        181,230
    Other operating departments                                56,736             --         56,736
  Office rental and other revenues                              2,359             --         10,337
 Participating lease revenue                                   98,311       (192,473)            --
                                                             --------       --------       --------
Total revenue                                                 794,226       (192,473)       703,893

Hotel operating expenses by department:
    Rooms                                                     116,040             --        116,040
    Food and beverage                                         134,257             --        134,257
    Other operating departments                                34,119             --         34,119
Office rental, parking and other operating expenses             1,254             --          2,147
Other operating expenses:
    General and administrative                                113,801             --        121,679
    Property operating costs                                  110,203             --        109,844
    Depreciation and amortization                              38,214             --         82,849
    Loss on asset impairments                                 144,108             --        263,377
    Property taxes, insurance and other                       231,658       (192,473)        57,292
                                                             --------       --------       --------
Operating expenses                                            923,654       (192,473)       921,604
                                                             --------       --------       --------

Operating income (loss)                                      (129,428)            --       (217,711)
 Gain on early extinguishment of debt                              --             --          4,574
 Minority interest expense                                         --             --             (6)
 Interest expense, net                                         (7,569)            --       (106,017)
 Equity in loss from consolidated entities                         --        257,756             --
                                                             --------       --------       --------

 (Loss) income before income taxes and discontinued
   operations                                                (136,997)       257,756       (319,160)

 Income tax benefit                                                --             --            462
                                                             --------       --------       --------

 Loss from continuing operations                             (136,997)       257,756       (318,698)

 Discontinued operations:
 Income (loss) from discontinued operations before tax
   (expense) benefit                                          (22,825)            --        (22,168)
 Income tax (expense) benefit                                      --             --            (32)
                                                             --------       --------       --------
                                                                                                 --
 (Loss) income from discontinued operations                   (22,825)            --        (22,200)
                                                             --------       --------       --------
                                                                                                 --
 Net (loss) income                                           (159,822)       257,756       (340,898)
                                                             ========       ========       ========
</TABLE>

<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2002
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                         MERISTAR           NON-        MERISTAR      AGH        MERISTAR
                                                       HOSPITALITY       GUARANTOR       Sub 7C,     UPREIT,      SUB 5N,
                                                         OP, L.P.       SUBSIDIARIES      LLC         LLC          LLC
                                                      --------------    ------------    --------     ------      --------
<S>                                                   <C>               <C>             <C>          <C>         <C>
   Hotel operations:
     Rooms                                                    --               --          --            --            --
     Food and beverage                                        --               --          --            --            --
     Other operating departments                              --               --          --            --            --
   Office rental and other revenues                        5,611            4,463          --            --            --
 Participating lease revenue                                  --           99,020          --            --           716
                                                        --------         --------      ------        ------      --------
Total revenue                                              5,611          103,483          --            --           716

Hotel operating expenses by department:                       --               --          --            --            --
     Rooms                                                    --               --          --            --            --
     Food and beverage                                        --               --          --            --            --
     Other operating departments                              --               --          --            --            --
Office rental, parking and other operating expenses           --              961          --            --            --
Other operating expenses:
     General and administrative                            7,397               31          --            --            --
     Property operating costs                               (454)              --          --            --            --
     Depreciation and amortization                         9,196           37,355          --            --            99
     Loss on asset impairments                                --               --          --            --            --
     Property taxes, insurance and other                  (4,310)          14,631          --            --            78
                                                        --------         --------      ------        ------      --------

Operating expenses                                        11,829           52,978          --            --           177
                                                        --------         --------      ------        ------      --------

Operating (loss) income                                   (6,218)          50,505          --            --           539
 Change in fair value of non-hedging
   derivatives, net of swap payments                      (4,211)              --          --            --            --
 Loss on fair value of non-hedging derivatives            (4,735)              --          --            --            --
 Minority interest expense                                    10               --          --            --            --
 Interest expense, net                                   (78,325)         (20,415)         --            --             5
 Equity in income from consolidated entities             (55,165)              --          --            --            --
                                                        --------         --------      ------        ------      --------

 (Loss) income before income taxes
   and discontinued operations                           (38,314)          30,090          --            --           544

 Income tax benefit                                          748               --          --            --            --
                                                        --------         --------      ------        ------      --------

 Loss from continuing operations                         (37,566)          30,090          --            --           544

 Discontinued operations:                                     --               --          --            --            --
 Income (loss)  from discontinued operations
   before tax (expense) benefit                               --            2,961          --            --            --
 Income tax (expense) benefit                                  6               --          --            --            --
                                                        --------         --------      ------        ------      --------

 Loss from discontinued operations                             6            2,961          --            --            --
                                                        --------         --------      ------        ------      --------

 Net income (loss)                                       (37,560)          33,051          --            --           544
                                                        ========         ========      ======        ======      ========
</TABLE>




<TABLE>
<CAPTION>
                                                          MERISTAR       MERISTAR     MERISTAR    MERISTAR       MERISTAR
                                                           SUB 8A,        SUB 8F,        8G,       SUB 6H,        SUB 8B,
                                                            LLC             L.P.        LLC          L.P.           LLC
                                                          --------       --------     --------     --------      --------
<S>                                                      <C>             <C>          <C>         <C>            <C>
   Hotel operations:
     Rooms                                                    --               --          --            --            --
     Food and beverage                                        --               --          --            --            --
     Other operating departments                              --               --          --            --            --
   Office rental and other revenues                           --               --          --            --            --
 Participating lease revenue                                  --            1,712          --         1,162         5,309
                                                        --------         --------      ------        ------      --------
Total revenue                                                 --            1,712          --         1,162         5,309

Hotel operating expenses by department:                       --               --          --            --            --
     Rooms                                                    --               --          --            --            --
     Food and beverage                                        --               --          --            --            --
     Other operating departments                              --               --          --            --            --
Office rental, parking and other operating expenses           --               --          --            --            --
Other operating expenses:
     General and administrative                               --                1          --             1             1
     Property operating costs                                 --               --          --            --            --
     Depreciation and amortization                            --              339          --           323         1,785
     Loss on asset impairments                                --               --          --            --            --
     Property taxes, insurance and other                      --              545          --            74         1,066
                                                        --------         --------      ------        ------      --------
Operating expenses                                            --              885          --           398         2,852
                                                        --------         --------      ------        ------      --------

Operating (loss) income                                       --              827          --           764         2,457
 Change in fair value of non-hedging derivatives,
   net of swap payments                                       --               --          --            --            --
 Loss on fair value of non-hedging derivatives                --               --          --            --            --
 Minority interest expense                                    --               --          --            --            --
 Interest expense, net                                        --                7          --             2            67
 Equity in income from consolidated entities                  --               --          --            --            --
                                                        --------         --------      ------        ------      --------

 (Loss) income before income taxes
  and discontinued operations                                 --              834          --           766         2,524

 Income tax benefit                                           --               --          --            --            --
                                                        --------         --------      ------        ------      --------

 Loss from continuing operations                              --              834          --           766         2,524

 Discontinued operations:                                     --               --          --            --            --
 Income (loss)  from discontinued operations
   before tax (expense) benefit                           (4,203)              --          --            --            --
 Income tax (expense) benefit                                 --               --          --            --            --
                                                        --------         --------      ------        ------      --------
 Loss from discontinued operations                        (4,203)              --          --            --            --
                                                        --------         --------      ------        ------      --------

 Net income (loss)                                        (4,203)             834          --           766         2,524
                                                        ========         ========      ======        ======      ========
</TABLE>

<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2002
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
                                                          MERISTAR       MERISTAR     MERISTAR     MERISTAR      MERISTAR
                                                           SUB 1C,        SUB 8E,      SUB 7F,      SUB 5L,       SUB 3C,
                                                            L.P.           LLC          LLC          LLC           LLC
                                                          --------       --------     --------     --------      --------
<S>                                                      <C>             <C>          <C>         <C>            <C>
   Hotel operations:
     Rooms                                                    --               --          --            --            --
     Food and beverage                                        --               --          --            --            --
     Other operating departments                              --               --          --            --            --
   Office rental and other revenues                           --               21          --            --            --
 Participating lease revenue                                 989            1,205         878           783         1,329
                                                          ------           ------      ------        ------        ------
Total revenue                                                989            1,226         878           783         1,329

Hotel operating expenses by department:                       --               --          --            --            --
     Rooms                                                    --               --          --            --            --
     Food and beverage                                        --               --          --            --            --
     Other operating departments                              --               --          --            --            --
Office rental, parking and other operating expenses           --               --          --            --            --
Other operating expenses:
     General and administrative                                7                1           1             1             1
     Property operating costs                                 --               --          --            --            --
     Depreciation and amortization                           767              448         348           101           529
     Loss on asset impairments                                --               --          --            --            --
     Property taxes, insurance and other                     578              140         106            96           342
                                                          ------           ------      ------        ------        ------

Operating expenses                                         1,352              589         455           198           872
                                                          ------           ------      ------        ------        ------

Operating (loss) income                                     (363)             637         423           585           457
 Change in fair value of non-hedging derivatives,
   net of swap payments                                       --               --          --            --            --
 Loss on fair value of non-hedging derivatives                --               --          --            --            --
 Minority interest expense                                    --               --          --            --            --
 Interest expense, net                                        35                6           8             6            15
 Equity in income from consolidated entities                  --               --          --            --            --
                                                          ------           ------      ------        ------        ------

 (Loss) income before income taxes
  and discontinued operations                               (328)             643         431           591           472

 Income tax benefit                                           --               --          --            --            --
                                                          ------           ------      ------        ------        ------

 Loss from continuing operations                            (328)             643         431           591           472

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

 Loss from discontinued operations                            --               --          --            --            --
                                                          ------           ------      ------        ------        ------

 Net income (loss)                                          (328)             643         431           591           472
                                                          ======           ======      ======        ======        ======
</TABLE>

<TABLE>
<CAPTION>

                                                          MERISTAR   OLD MERISTAR     MERISTAR     MERISTAR      MERISTAR
                                                           SUB 5R,      SUB 8A,        SUB 6D,      SUB 6E,       SUB 4E,
                                                            LLC          LLC            LLC           LLC          L.P.
                                                          --------    -----------     --------     --------      --------
<S>                                                      <C>          <C>             <C>          <C>           <C>
   Hotel operations:
     Rooms                                                    --               --          --            --            --
     Food and beverage                                        --               --          --            --            --
     Other operating departments                              --               --          --            --            --
   Office rental and other revenues                           --               --          14            --            12
 Participating lease revenue                                  --               --       1,633         4,280         1,026
                                                            ----             ----       -----         -----         -----
Total revenue                                                 --               --       1,647         4,280         1,038

Hotel operating expenses by department:                       --               --          --            --            --
     Rooms                                                    --               --          --            --            --
     Food and beverage                                        --               --          --            --            --
     Other operating departments                              --               --          --            --            --
Office rental, parking and other operating expenses           --               --          --            --            --
Other operating expenses:
     General and administrative                               --               --          --            --             1
     Property operating costs                                 --               --          --            --            --
     Depreciation and amortization                            --               --         393         1,272           689
     Loss on asset impairments                                --               --          --            --            --
     Property taxes, insurance and other                      --               --         155           610           303
                                                            ----             ----       -----         -----         -----

Operating expenses                                            --               --         548         1,882           993
                                                            ----             ----       -----         -----         -----

Operating (loss) income                                       --               --       1,099         2,398            45
 Change in fair value of non-hedging derivatives,
   net of swap payments                                       --               --          --            --            --
 Loss on fair value of non-hedging derivatives                --               --          --            --            --
 Minority interest expense                                    --               --          --            --            --
 Interest expense, net                                        --               --          20            45            20
 Equity in income from consolidated entities                  --               --          --            --            --
                                                            ----             ----       -----         -----         -----

 (Loss) income before income taxes
  and discontinued operations                                 --               --       1,119         2,443            65

 Income tax benefit                                           --               --          --            --            --
                                                            ----             ----       -----         -----         -----

 Loss from continuing operations                              --               --       1,119         2,443            65

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

 Loss from discontinued operations                            --               --          --            --            --
                                                            ----             ----       -----         -----         -----

 Net income (loss)                                            --               --       1,119         2,443            65
                                                            ====             ====       =====         =====         =====
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2002
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>

                                                          MERISTAR       MERISTAR    MERISTAR     MERISTAR       MERISTAR
                                                           SUB 1B,        SUB 5F,     SUB 6G,      SUB 8C,        SUB 4C,
                                                            LLC            L.P.        LLC          LLC            L.P.
                                                          --------       --------    --------     --------       --------
<S>                                                       <C>           <C>          <C>          <C>            <C>
   Hotel operations:
     Rooms                                                    --               --          --            --            --
     Food and beverage                                        --               --          --            --            --
     Other operating departments                              --               --          --            --            --
   Office rental and other revenues                          570               --          --             2            --
 Participating lease revenue                               1,849            2,146       1,966         1,460            --
                                                          ------           ------      ------        ------        ------
Total revenue                                              2,419            2,146       1,966         1,462            --

Hotel operating expenses by department:                       --               --          --            --            --
     Rooms                                                    --               --          --            --            --
     Food and beverage                                        --               --          --            --            --
     Other operating departments                              --               --          --            --            --
Office rental, parking and other operating expenses           --               --          --            --            --
Other operating expenses:
     General and administrative                                1                1          --            --            --
     Property operating costs                                 --               --          --            --            --
     Depreciation and amortization                           462              792         627         1,037            --
     Loss on asset impairments                                --               --          --            --            --
     Property taxes, insurance and other                     131              271         256           457            --
                                                          ------           ------      ------        ------        ------
Operating expenses                                           594            1,064         883         1,494            --
                                                          ------           ------      ------        ------        ------

Operating (loss) income                                    1,825            1,082       1,083           (32)           --
 Change in fair value of non-hedging derivatives,
   net of swap payments                                       --               --          --            --            --
 Loss on fair value of non-hedging derivatives                --               --          --            --            --
 Minority interest expense                                    --               --          --            --            --
 Interest expense, net                                        14               30          35            32            --
 Equity in income from consolidated entities                  --               --          --            --            --
                                                          ------           ------      ------        ------        ------

 (Loss) income before income taxes
  and discontinued operations                              1,839            1,112       1,118            --            --

 Income tax benefit                                           --               --          --            --            --
                                                          ------           ------      ------        ------        ------

 Loss from continuing operations                           1,839            1,112       1,118            --            --

 Discontinued operations:                                     --               --          --            --            --
 Income (loss)  from discontinued operations
   before tax (expense) benefit                               --               --          --            --        (1,439)
 Income tax (expense) benefit                                 --               --          --            --            --
                                                          ------           ------      ------        ------        ------

 Loss from discontinued operations                            --               --          --            --        (1,439)
                                                          ------           ------      ------        ------        ------

 Net income (loss)                                         1,839            1,112       1,118            --        (1,439)
                                                          ======           ======      ======        ======        ======
</TABLE>

<TABLE>
<CAPTION>
                                                         MERISTAR        MERISTAR    MERISTAR     MERISTAR       MERISTAR
                                                          SUB 4H,         SUB 7E,     SUB 3D,      SUB 1A,        SUB 5E,
                                                           L.P.             LLC         LLC          LLC            LLC
                                                         --------        --------    --------     --------       --------
<S>                                                      <C>            <C>          <C>          <C>            <C>
   Hotel operations:
     Rooms                                                    --               --          --            --            --
     Food and beverage                                        --               --          --            --            --
     Other operating departments                              --               --          --            --            --
   Office rental and other revenues                           --                1          --            --            --
 Participating lease revenue                                 450            1,030       1,745         1,353         4,258
                                                           -----            -----       -----         -----         -----
Total revenue                                                450            1,031       1,745         1,353         4,258

Hotel operating expenses by department:                       --               --          --            --            --
     Rooms                                                    --               --          --            --            --
     Food and beverage                                        --               --          --            --            --
     Other operating departments                              --               --          --            --            --
Office rental, parking and other operating expenses           --               --          --            --            --
Other operating expenses:
     General and administrative                                1                1           1             1             1
     Property operating costs                                 --               --          --            --            --
     Depreciation and amortization                           405              473         653           343         1,454
     Loss on asset impairments                                --               --          --            --            --
     Property taxes, insurance and other                     146              121         157           287           294
                                                           -----            -----       -----         -----         -----
Operating expenses                                           552              595         811           631         1,749
                                                           -----            -----       -----         -----         -----

Operating (loss) income                                     (102)             436         934           722         2,509
 Change in fair value of non-hedging derivatives,
  net of swap payments                                        --               --          --            --            --
 Loss on fair value of non-hedging derivatives                --               --          --            --            --
 Minority interest expense                                    --               --          --            --            --
 Interest expense, net                                         7               15          32            14            25
 Equity in income from consolidated entities                  --               --          --            --            --
                                                           -----            -----       -----         -----         -----

 (Loss) income before income taxes
   and discontinued operations                               (95)             451         966           736         2,534

 Income tax benefit                                           --               --          --            --            --
                                                           -----            -----       -----         -----         -----

 Loss from continuing operations                             (95)             451         966           736         2,534

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

 Loss from discontinued operations                            --               --          --            --            --
                                                           -----            -----       -----         -----         -----

 Net income (loss)                                           (95)             451         966           736         2,534
                                                           =====            =====       =====         =====         =====
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2002
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>

                                                         MERISTAR
                                                          SUB 7A         MERISTAR    MERISTAR      MERISTAR      MERISTAR
                                                          JOINT           SUB 6K,     SUB 2B,       SUB 3A,       SUB 4A,
                                                         VENTURE            LLC         LLC          LLC           L.P.
                                                         --------        --------    --------     --------       --------
<S>                                                      <C>            <C>          <C>          <C>            <C>
   Hotel operations:
     Rooms                                                    --               --          --            --            --
     Food and beverage                                        --               --          --            --            --
     Other operating departments                              --               --          --            --            --
   Office rental and other revenues                           --               --          --            --            --
 Participating lease revenue                                 979            3,055         423           398           745
                                                           -----            -----       -----         -----         -----
Total revenue                                                979            3,055         423           398           745

Hotel operating expenses by department:                       --               --          --            --            --
     Rooms                                                    --               --          --            --            --
     Food and beverage                                        --               --          --            --            --
     Other operating departments                              --               --          --            --            --
Office rental, parking and other operating expenses           --               --          --            --            --
Other operating expenses:
     General and administrative                                1               --           1             1             1
     Property operating costs                                 --               --          --            --            --
     Depreciation and amortization                           312              554         314           194            --
     Loss on asset impairments                                --               --          --            --            --
     Property taxes, insurance and other                     172              346         118            85           187
                                                           -----            -----       -----         -----         -----
Operating expenses                                           485              900         433           280           188
                                                           -----            -----       -----         -----         -----

Operating (loss) income                                      494            2,155         (10)          118           557
 Change in fair value of non-hedging derivatives,
   net of swap payments                                       --               --          --            --            --
 Loss on fair value of non-hedging derivatives                --               --          --            --            --
 Minority interest expense                                    --               --          --            --            --
 Interest expense, net                                        26               28        (289)           33            28
 Equity in income from consolidated entities                  --               --          --            --            --
                                                           -----            -----       -----         -----         -----

 (Loss) income before income taxes
   and discontinued operations                               520            2,183        (299)          151           585

 Income tax benefit                                           --               --          --            --            --
                                                           -----            -----       -----         -----         -----

 Loss from continuing operations                             520            2,183        (299)          151           585

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

 Loss from discontinued operations                            --               --          --            --            --
                                                           -----            -----       -----         -----         -----

 Net income (loss)                                           520            2,183        (299)          151           585
                                                           =====            =====       =====         =====         =====
</TABLE>



<TABLE>
<CAPTION>
                                                          MERISTAR      MERISTAR    MERISTAR        MDV          MERISTAR
                                                           SUB 4D,       SUB 2A,     SUB 6L,      LIMITED         SUB 5C,
                                                            L.P.           LLC         LLC       PARTNERSHIP        LLC
                                                          --------      --------    --------     -----------     --------
<S>                                                       <C>           <C>         <C>         <C>             <C>
   Hotel operations:
     Rooms                                                    --               --          --            --            --
     Food and beverage                                        --               --          --            --            --
     Other operating departments                              --               --          --            --            --
   Office rental and other revenues                           --               --          --            --            --
 Participating lease revenue                                  --              458       1,383           402         1,133
                                                           -----            -----       -----         -----         -----
Total revenue                                                 --              458       1,383           402         1,133

Hotel operating expenses by department:                       --               --          --            --            --
     Rooms                                                    --               --          --            --            --
     Food and beverage                                        --               --          --            --            --
     Other operating departments                              --               --          --            --            --
Office rental, parking and other operating expenses           --               --          --            --            --
Other operating expenses:
     General and administrative                               --                1           1            --             1
     Property operating costs                                 --               --          --            --            --
     Depreciation and amortization                            --              240         667           102           447
     Loss on asset impairments                                --               --          --            --            --
     Property taxes, insurance and other                      --              126         150            94           354
                                                           -----            -----       -----         -----         -----
Operating expenses                                            --              367         818           196           802
                                                           -----            -----       -----         -----         -----

Operating (loss) income                                       --               91         565           206           331
 Change in fair value of non-hedging derivatives,
   net of swap payments                                       --               --          --            --            --
 Loss on fair value of non-hedging derivatives                --               --          --            --            --
 Minority interest expense                                    --               --          --            --            --
 Interest expense, net                                        --             (510)         10             2            28
 Equity in income from consolidated entities                  --               --          --            --            --
                                                           -----            -----       -----         -----         -----

 (Loss) income before income taxes
   and discontinued operations                                --             (419)        575           208           359

 Income tax benefit                                           --               --          --            --            --
                                                           -----            -----       -----         -----         -----

 Loss from continuing operations                              --             (419)        575           208           359

 Discontinued operations:                                     --               --          --            --            --
 Income (loss)  from discontinued operations
   before tax (expense) benefit                               49               --          --            --            --
 Income tax (expense) benefit                                 --               --          --            --            --
                                                           -----            -----       -----         -----         -----

 Loss from discontinued operations                            49               --          --            --            --
                                                           -----            -----       -----         -----         -----

 Net income (loss)                                            49             (419)        575           208           359
                                                           =====            =====       =====         =====         =====
</TABLE>
<PAGE>
 MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
 CONSOLIDATING STATEMENT OF OPERATIONS
 NINE MONTHS ENDED SEPTEMBER 30, 2002
 (DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>

                                                          MERISTAR      MERISTAR    MERISTAR       MERISTAR      MERISTAR
                                                           SUB 6J,       SUB 1D,     SUB 7B,        SUB 7D,       SUB 7G,
                                                             LLC          LLC         L.P.           LLC            LLC
                                                          --------      --------    --------      ---------      --------
<S>                                                       <C>           <C>         <C>          <C>             <C>
   Hotel operations:
     Rooms                                                    --               --          --            --            --
     Food and beverage                                        --               --          --            --            --
     Other operating departments                              --               --          --            --            --
   Office rental and other revenues                           --              329          --         1,046            --
 Participating lease revenue                               1,915            3,938       1,172         4,161           438
                                                           -----            -----       -----         -----         -----
Total revenue                                              1,915            4,267       1,172         5,207           438

Hotel operating expenses by department:                       --               --          --            --            --
     Rooms                                                    --               --          --            --            --
     Food and beverage                                        --               --          --            --            --
     Other operating departments                              --               --          --            --            --
Office rental, parking and other operating expenses           --               97          --           869            --
Other operating expenses:
     General and administrative                               --               --           1            --             1
     Property operating costs                                 --               --          --            --            --
     Depreciation and amortization                           482            1,702         694         1,244           566
     Loss on asset impairments                                --               --          --            --            --
     Property taxes, insurance and other                     160              906         409         1,610           181
                                                           -----            -----       -----         -----         -----
Operating expenses                                           642            2,705       1,104         3,723           748
                                                           -----            -----       -----         -----         -----

Operating (loss) income                                    1,273            1,562          68         1,484          (310)
 Change in fair value of non-hedging derivatives,
   net of swap payments                                       --               --          --            --            --
 Loss on fair value of non-hedging derivatives                --               --          --            --            --
 Minority interest expense                                    --               --          --            --            --
 Interest expense, net                                        31               33          49            35            20
 Equity in income from consolidated entities                  --               --          --            --            --
                                                           -----            -----       -----         -----         -----

 (Loss) income before income taxes
   and discontinued operations                             1,304            1,595         117         1,519          (290)

 Income tax benefit                                           --               --          --            --            --
                                                           -----            -----       -----         -----         -----

 Loss from continuing operations                           1,304            1,595         117         1,519          (290)

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

 Loss from discontinued operations                            --               --          --            --            --
                                                           -----            -----       -----         -----         -----

 Net income (loss)                                         1,304            1,595         117         1,519          (290)
                                                           =====            =====       =====         =====         =====
</TABLE>


<TABLE>
<CAPTION>
                                                          MERISTAR      MERISTAR    MERISTAR       MERISTAR      MERISTAR
                                                          SUB 6B,       SUB 4I,     SUB 5D,        SUB 5H,       SUB 7H,
                                                            LLC           L.P.        LLC            LLC           LLC
                                                          --------      --------    --------      ---------      --------
<S>                                                       <C>           <C>         <C>          <C>             <C>
   Hotel operations:
     Rooms                                                    --               --          --            --            --
     Food and beverage                                        --               --          --            --            --
     Other operating departments                              --               --          --            --            --
   Office rental and other revenues                           --               --          --            --            --
 Participating lease revenue                                 942               58       1,446            --           944
                                                          ------           ------      ------        ------        ------
Total revenue                                                942               58       1,446            --           944

Hotel operating expenses by department:                       --               --          --            --            --
     Rooms                                                    --               --          --            --            --
     Food and beverage                                        --               --          --            --            --
     Other operating departments                              --               --          --            --            --
Office rental, parking and other operating expenses           --               --          --            --            --
Other operating expenses:
     General and administrative                                1               --           1            --             1
     Property operating costs                                 --               --          --            --            --
     Depreciation and amortization                           341              341       1,086            --           341
     Loss on asset impairments                                --               --          --            --            --
     Property taxes, insurance and other                     171              240         253            --           283
                                                          ------           ------      ------        ------        ------
Operating expenses                                           513              581       1,340            --           625
                                                          ------           ------      ------        ------        ------

Operating (loss) income                                      429             (523)        106            --           319
 Change in fair value of non-hedging derivatives,
   net of swap payments                                       --               --          --            --            --
 Loss on fair value of non-hedging derivatives                --               --          --            --            --
 Minority interest expense                                    --               --          --            --            --
 Interest expense, net                                         7               32      (1,132)           --            18
 Equity in income from consolidated entities                  --               --          --            --            --
                                                          ------           ------      ------        ------        ------

 (Loss) income before income taxes
   and discontinued operations                               436             (491)     (1,026)           --           337

 Income tax benefit                                           --               --          --            --            --
                                                          ------           ------      ------        ------        ------

 Loss from continuing operations                             436             (491)     (1,026)           --           337

 Discontinued operations:                                     --               --          --            --            --
 Income (loss)  from discontinued operations
   before tax (expense) benefit                               --               --          --           627            --
 Income tax (expense) benefit                                 --               --          --            --            --
                                                          ------           ------      ------        ------        ------

 Loss from discontinued operations                            --               --          --           627            --
                                                          ------           ------      ------        ------        ------

 Net income (loss)                                           436             (491)     (1,026)          627           337
                                                          ======           ======      ======        ======        ======
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2002
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
                                                             AGH        MERISTAR    MERISTAR      MERISTAR       MERISTAR
                                                            PSSI,        SUB 2D,     SUB 4F,       SUB 5K,        SUB 5M,
                                                             INC.          LLC         L.P.          LLC            LLC
                                                          --------      --------    --------      ---------      --------
<S>                                                       <C>           <C>         <C>          <C>             <C>

   Hotel operations:
     Rooms                                                    --               --          --            --            --
     Food and beverage                                        --               --          --            --            --
     Other operating departments                              --               --          --            --            --
   Office rental and other revenues                           --               --           8            --            --
 Participating lease revenue                                  --            1,055       1,401         1,904         1,393
                                                          ------           ------      ------        ------        ------
Total revenue                                                 --            1,055       1,409         1,904         1,393

Hotel operating expenses by department:                       --               --          --            --            --
     Rooms                                                    --               --          --            --            --
     Food and beverage                                        --               --          --            --            --
     Other operating departments                              --               --          --            --            --
Office rental, parking and other operating expenses           --               --          --            --            --
Other operating expenses:
     General and administrative                               --                1          --             1             1
     Property operating costs                                 --               --          --            --            --
     Depreciation and amortization                            --              355         840           891           339
     Loss on asset impairments                                --               --          --            --            --
     Property taxes, insurance and other                      --              185         287           246           221
                                                          ------           ------      ------        ------        ------
Operating expenses                                            --              541       1,127         1,138           561
                                                          ------           ------      ------        ------        ------

Operating (loss) income                                       --              514         282           766           832
 Change in fair value of non-hedging derivatives,
  net of swap payments                                        --               --          --            --            --
 Loss on fair value of non-hedging derivatives                --               --          --            --            --
 Minority interest expense                                    --               --          --            --            --
 Interest expense, net                                        --             (586)         29            80            16
 Equity in income from consolidated entities                  --               --          --            --            --
                                                          ------           ------      ------        ------        ------

 (Loss) income before income taxes
   and discontinued operations                                --              (72)        311           846           848

 Income tax benefit                                           --               --          --            --            --
                                                          ------           ------      ------        ------        ------

 Loss from continuing operations                              --              (72)        311           846           848

 Discontinued operations:                                     --               --          --            --            --
 Income (loss)  from discontinued operations
   before tax (expense) benefit                            1,531               --          --            --            --
 Income tax (expense) benefit                                 --               --          --            --            --
                                                          ------           ------      ------        ------        ------

 Loss from discontinued operations                         1,531               --          --            --            --
                                                          ------           ------      ------        ------        ------

 Net income (loss)                                         1,531              (72)        311           846           848
                                                          ======           ======      ======        ======        ======
</TABLE>


<TABLE>
<CAPTION>
                                                          MERISTAR      MERISTAR    MERISTAR      MERISTAR       MERISTAR
                                                           SUB 1E,       SUB 5O,     SUB 6M        SUB 4B,        SUB 6C,
                                                             L.P.          LLC      COMPANY         L.P.           LLC
                                                          --------      --------    --------      ---------      --------
<S>                                                       <C>           <C>         <C>          <C>             <C>
   Hotel operations:
     Rooms                                                    --               --          --            --            --
     Food and beverage                                        --               --          --            --            --
     Other operating departments                              --               --          --            --            --
   Office rental and other revenues                           --               --          --            --            12
 Participating lease revenue                                  --              606       3,363           138         2,217
                                                           -----            -----       -----         -----         -----
Total revenue                                                 --              606       3,363           138         2,229

Hotel operating expenses by department:                       --               --          --            --            --
     Rooms                                                    --               --          --            --            --
     Food and beverage                                        --               --          --            --            --
     Other operating departments                              --               --          --            --            --
Office rental, parking and other operating expenses           --               --          --            --            --
Other operating expenses:
     General and administrative                               --                1           1            --             1
     Property operating costs                                 --               --          --            --            --
     Depreciation and amortization                            --              164         905           414           585
     Loss on asset impairments                                --               --          --            --            --
     Property taxes, insurance and other                      --               94         218           274           155
                                                           -----            -----       -----         -----         -----
Operating expenses                                            --              259       1,124           688           741
                                                           -----            -----       -----         -----         -----

Operating (loss) income                                       --              347       2,239          (550)        1,488
 Change in fair value of non-hedging derivatives,
   net of swap payments                                       --               --          --            --            --
 Loss on fair value of non-hedging derivatives                --               --          --            --            --
 Minority interest expense                                    --               --          --            --            --
 Interest expense, net                                        --                6          18           194            31
 Equity in income from consolidated entities                  --               --          --            --            --
                                                           -----            -----       -----         -----         -----

 (Loss) income before income taxes
   and discontinued operations                                --              353       2,257          (356)        1,519

 Income tax benefit                                           --               --          --            --            --
                                                           -----            -----       -----         -----         -----

 Loss from continuing operations                              --              353       2,257          (356)        1,519

 Discontinued operations:                                     --               --          --            --            --
 Income (loss)  from discontinued operations
   before tax (expense) benefit                              994               --          --            --            --
 Income tax (expense) benefit                                 --               --          --            --            --
                                                           -----            -----       -----         -----         -----

 Loss from discontinued operations                           994               --          --            --            --
                                                           -----            -----       -----         -----         -----

 Net income (loss)                                           994              353       2,257          (356)        1,519
                                                           =====            =====       =====         =====         =====
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2002
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
                                                          MERISTAR      MERISTAR    MERISTAR      MERISTAR       MERISTAR
                                                           SUB 2C,       SUB 4G,    SUB 3B,        SUB 5G,        SUB 5P,
                                                             LLC          L.P.        LLC            L.P.           LLC
                                                          --------      --------    --------      ---------      --------
<S>                                                       <C>           <C>         <C>          <C>             <C>
   Hotel operations:
     Rooms                                                    --               --          --            --            --
     Food and beverage                                        --               --          --            --            --
     Other operating departments                              --               --          --            --            --
   Office rental and other revenues                           37               18          --            47            --
 Participating lease revenue                               1,245            1,803          --         8,446           450
                                                          ------           ------      ------        ------        ------
Total revenue                                              1,282            1,821          --         8,493           450

Hotel operating expenses by department:                       --               --          --            --            --
     Rooms                                                    --               --          --            --            --
     Food and beverage                                        --               --          --            --            --
     Other operating departments                              --               --          --            --            --
Office rental, parking and other operating expenses           --               --          --            --            --
Other operating expenses:
     General and administrative                                1                1          --             2            --
     Property operating costs                                 --               --          --            --            --
     Depreciation and amortization                           777              687          --         4,643             2
     Loss on asset impairments                                --               --          --            --            --
     Property taxes, insurance and other                     430              409          --         1,380            12
                                                          ------           ------      ------        ------        ------
Operating expenses                                         1,208            1,097          --         6,025            14
                                                          ------           ------      ------        ------        ------

Operating (loss) income                                       74              724          --         2,468           436
 Change in fair value of non-hedging derivatives,
   net of swap payments                                       --               --          --            --            --
 Loss on fair value of non-hedging derivatives                --               --          --            --            --
 Minority interest expense                                    --               --          --            --            --
 Interest expense, net                                    (1,012)              20          --           107            --
 Equity in income from consolidated entities                  --               --          --            --            --
                                                          ------           ------      ------        ------        ------

 (Loss) income before income taxes
   and discontinued operations                              (938)             744          --         2,575           436

 Income tax benefit                                           --               --          --            --            --
                                                          ------           ------      ------        ------        ------

 Loss from continuing operations                            (938)             744          --         2,575           436

 Discontinued operations:                                     --               --          --            --            --
 Income (loss)  from discontinued operations
   before tax (expense) benefit                               --               --         (42)           --            --
 Income tax (expense) benefit                                 --               --          --            --            --
                                                          ------           ------      ------        ------        ------

 Loss from discontinued operations                            --               --         (42)           --            --
                                                          ------           ------      ------        ------        ------

 Net income (loss)                                          (938)             744         (42)        2,575           436
                                                          ======           ======      ======        ======        ======
</TABLE>

<TABLE>
<CAPTION>
                                                          MERISTAR      MERISTAR    MERISTAR      MERISTAR       MERISTAR
                                                          SUB 5J,        SUB 5Q,     SUB 5A,       SUB 8D,        SUB 4J,
                                                            LLC            LLC         LLC           LLC           LLC
                                                          --------      --------    --------      ---------      --------
<S>                                                       <C>           <C>         <C>          <C>             <C>

   Hotel operations:
     Rooms                                                    --               --          --            --            --
     Food and beverage                                        --               --          --            --            --
     Other operating departments                              --               --          --            --            --
   Office rental and other revenues                           --               --          90            --           175
 Participating lease revenue                               7,157            1,555       4,418         1,737         2,310
                                                          ------           ------      ------        ------        ------
Total revenue                                              7,157            1,555       4,508         1,737         2,485

Hotel operating expenses by department:                       --               --          --            --            --
     Rooms                                                    --               --          --            --            --
     Food and beverage                                        --               --          --            --            --
     Other operating departments                              --               --          --            --            --
Office rental, parking and other operating expenses           --               --          --            --           309
Other operating expenses:
     General and administrative                                1                1           1             1             5
     Property operating costs                                 --               --          --            --            --
     Depreciation and amortization                         2,604              360       1,055           951         1,007
     Loss on asset impairments                                --               --          --            --            --
     Property taxes, insurance and other                   1,169              198         473           316           170
                                                          ------           ------      ------        ------        ------
Operating expenses                                         3,774              559       1,529         1,268         1,491
                                                          ------           ------      ------        ------        ------

Operating (loss) income                                    3,383              996       2,979           469           994
 Change in fair value of non-hedging derivatives,
   net of swap payments                                       --               --          --            --            --
 Loss on fair value of non-hedging derivatives                --               --          --            --            --
 Minority interest expense                                    --               --          --            --            --
 Interest expense, net                                        99               72      (2,074)           16            46
 Equity in income from consolidated entities                  --               --          --            --            --
                                                          ------           ------      ------        ------        ------

 (Loss) income before income taxes
   and discontinued operations                             3,482            1,068         905           485         1,040

 Income tax benefit                                           --               --          --            --            --
                                                          ------           ------      ------        ------        ------

 Loss from continuing operations                           3,482            1,068         905           485         1,040

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

 Loss from discontinued operations                            --               --          --            --            --
                                                          ------           ------      ------        ------        ------

 Net income (loss)                                         3,482            1,068         905           485         1,040
                                                          ======           ======      ======        ======        ======

</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2002
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>

                                                        MERISTAR
                                                         HOTEL        GUARANTOR
                                                        LESSEE,      SUBSIDIARIES                     TOTAL
                                                          INC.          TOTAL       ELIMINATIONS   CONSOLIDATED
                                                        --------     ------------   ------------   ------------
<S>                                                     <C>          <C>            <C>           <C>
   Hotel operations:
     Rooms                                               474,540          474,540          --         474,540
     Food and beverage                                   181,174          181,174          --         181,174
     Other operating departments                          55,174           55,174          --          55,174
   Office rental and other revenues                         (125)           2,257          --          12,331
 Participating lease revenue                                  --          102,464    (201,484)             --
                                                        --------         --------    --------        --------
Total revenue                                            710,763          815,609    (201,484)        723,219

Hotel operating expenses by department:                       --               --          --              --
     Rooms                                               114,197          114,197          --         114,197
     Food and beverage                                   131,552          131,551          --         131,551
     Other operating departments                          31,624           31,621          --          31,621
Office rental, parking and other operating expenses           --            1,276          --           2,237
Other operating expenses:
     General and administrative                          114,465          114,508          --         121,936
     Property operating costs                            109,729          109,729          --         109,275
     Depreciation and amortization                         1,220           40,766          --          87,316
     Loss on asset impairments                                --               --          --              --
     Property taxes, insurance and other                 223,135          241,432    (201,484)         50,268
                                                        --------         --------    --------        --------
Operating expenses                                       725,922          785,080    (201,484)        648,401
                                                        --------         --------    --------        --------

Operating (loss) income                                  (15,159)          30,529          --          74,818
 Change in fair value of non-hedging derivatives,
   net of swap payments                                       --               --          --          (4,211)
 Loss on fair value of non-hedging derivatives                --               --          --          (4,735)
 Minority interest expense                                    --               --          --              10
 Interest expense, net                                         1           (4,046)         --        (102,786)
 Equity in income from consolidated entities                  --               --      55,165              --
                                                        --------         --------    --------        --------

 (Loss) income before income taxes
   and discontinued operations                           (15,158)          26,483     (55,165)        (36,904)

 Income tax benefit                                           --               --          --             748
                                                        --------         --------    --------        --------

 Loss from continuing operations                         (15,158)          26,483     (55,165)        (36,156)

 Discontinued operations:                                     --               --          --              --
 Income (loss)  from discontinued operations
   before tax (expense) benefit                           (1,888)          (4,371)         --          (1,410)
 Income tax (expense) benefit                                 --               --          --               6
                                                        --------         --------    --------        --------

 Loss from discontinued operations                        (1,888)          (4,371)         --          (1,404)
                                                        --------         --------    --------        --------

 Net income (loss)                                       (17,046)          22,112     (55,165)        (37,560)
                                                        ========         ========    ========        ========
</TABLE>

<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>

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

  Net (loss) income                                          (340,898)       (97,934)            --             --            498
  Adjustments to reconcile net income (loss) to net
    cash provided by (used in) operating activities:

    Depreciation and amortization                               6,573         37,579             --             --            103
    Loss on asset impairment                                       --        119,639             --             --             --
    Equity in earnings                                        257,756             --             --             --             --
    Loss on sale of assets, before tax effect                      --           (577)            --             --             --
    Gain on early extinguishment of debt                       (4,574)            --             --             --             --
    Minority interests                                              6             --             --             --             --
    Amortization of unearned stock-based compensation           2,380             --             --             --             --
    Unrealized gain on interest rate swaps recognized
      in net loss                                              (3,977)            --             --             --             --
    Deferred income taxes                                      (1,848)            --             --             --             --
    Changes in operating assets and liabilities:
        Accounts receivable, net                               (4,448)           204             --             --             --
        Prepaid expenses and other                               (575)         1,289             --             --             10
        Due from/to Interstate Hotels & Resorts                   424             --             --             --             --
        Accounts payable, accrued expenses, accrued
          interest and other liabilities                       (2,062)        (7,368)            --             --             31
        Due from subsidiaries                                 173,158        (61,471)            --             --           (622)
                                                           ----------     ----------     ----------     ----------     ----------
        Net cash provided by (used in)
          operating activities                                 81,915         (8,639)            --             --             20
                                                           ----------     ----------     ----------     ----------     ----------

Investing activities:

  Capital expenditures for property and equipment              (1,146)        (7,029)            --             --            (20)
  Proceeds from sales of assets                                    --         21,900             --             --             --
  Purchases of marketable securities                          (18,040)            --             --             --             --
  Sales of marketable securities                               17,040             --             --             --             --
  Net payments from (advances to) Interstate
    Hotels & Resorts                                           42,052             --             --             --             --
  (Increase) decrease in restricted cash                      (17,714)          (324)            --             --             --
  Other, net                                                       --           (299)            --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
        Net cash provided by (used in)
          investing activities                                 22,192         14,248             --             --            (20)
                                                           ----------     ----------     ----------     ----------     ----------

Financing activities:

  Principal payments on long-term debt                       (219,650)        (5,609)            --             --             --
  Proceeds from issuance of long-term debt                    271,000             --             --             --             --
  Deferred financing fees                                      (7,509)            --             --             --             --
  Contributions from partners                                  82,920             --             --             --             --
  Distributions to partners                                      (424)            --             --             --             --
  Purchase of limited partnership unit                            (65)            --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
        Net cash provided by (used in)
          financing activities                                126,272         (5,609)            --             --             --
                                                           ----------     ----------     ----------     ----------     ----------

Effect of exchange rate changes on cash                          (304)            --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS          230,075             --             --             --             --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                 21,372             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                      251,447             --             --             --             --
                                                           ==========     ==========     ==========     ==========     ==========
</TABLE>

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

  Net (loss) income                                                --            935             --            (97)         2,595
  Adjustments to reconcile net income (loss) to net
    cash provided by (used in) operating activities:

    Depreciation and amortization                                  --            423             --            412          1,821
    Loss on asset impairment                                       --             --             --            500             --
    Equity in earnings                                             --             --             --             --             --
    Loss on sale of assets, before tax effect                      --             --             --             --             --
    Gain on early extinguishment of debt                           --             --             --             --             --
    Minority interests                                             --             --             --             --             --
    Amortization of unearned stock-based compensation              --             --             --             --             --
    Unrealized gain on interest rate swaps recognized
      in net loss                                                  --             --             --             --             --
    Deferred income taxes                                          --             --             --             --             --
    Changes in operating assets and liabilities:
        Accounts receivable, net                                  (17)           (28)            --             --             --
        Prepaid expenses and other                                 --             17             --             (1)             4
        Due from/to Interstate Hotels & Resorts                    --             --             --             --             --
        Accounts payable, accrued expenses, accrued
          interest and other liabilities                           36           (135)            --             51            (91)
        Due from subsidiaries                                     (19)        (1,182)            --           (849)        (3,508)
                                                           ----------     ----------     ----------     ----------     ----------
        Net cash provided by (used in)
          operating activities                                     --             30             --             16            821
                                                           ----------     ----------     ----------     ----------     ----------

Investing activities:

  Capital expenditures for property and equipment                  --            (30)            --            (16)          (821)
  Proceeds from sales of assets                                    --             --             --             --             --
  Purchases of marketable securities                               --             --             --             --             --
  Sales of marketable securities                                   --             --             --             --             --
  Net payments from (advances to) Interstate
    Hotels & Resorts                                               --             --             --             --             --
  (Increase) decrease in restricted cash                           --             --             --             --             --
  Other, net                                                       --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
        Net cash provided by (used in)
          investing activities                                     --            (30)            --            (16)          (821)
                                                           ----------     ----------     ----------     ----------     ----------

Financing activities:

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

Effect of exchange rate changes on cash                            --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS               --             --             --             --             --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                     --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                           --             --             --             --             --
                                                           ==========     ==========     ==========     ==========     ==========
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)

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

  Net (loss) income                                              (304)           505         (1,766)           597            488
  Adjustments to reconcile net income (loss) to net
    cash provided by (used in) operating activities:

    Depreciation and amortization                                 762            434            328            103            532
    Loss on asset impairment                                       --             --          2,037             --             --
    Equity in earnings                                             --             --             --             --             --
    Loss on sale of assets, before tax effect                      --             --             --             --             --
    Gain on early extinguishment of debt                           --             --             --             --             --
    Minority interests                                             --             --             --             --             --
    Amortization of unearned stock-based compensation              --             --             --             --             --
    Unrealized gain on interest rate swaps recognized
      in net loss                                                  --             --             --             --             --
    Deferred income taxes                                          --             --             --             --             --
    Changes in operating assets and liabilities:
        Accounts receivable, net                                   --             --             --             28             --
        Prepaid expenses and other                                 43              6             (1)            14              6
        Due from/to Interstate Hotels & Resorts                    --             --             --             --             --
        Accounts payable, accrued expenses, accrued
          interest and other liabilities                         (140)           (73)            57             15             31
        Due from subsidiaries                                    (154)          (790)          (621)          (652)        (1,001)
                                                           ----------     ----------     ----------     ----------     ----------
        Net cash provided by (used in)
          operating activities                                    207             82             34            105             56
                                                           ----------     ----------     ----------     ----------     ----------

Investing activities:

  Capital expenditures for property and equipment                (207)           (82)           (34)          (105)           (56)
  Proceeds from sales of assets                                    --             --             --             --             --
  Purchases of marketable securities                               --             --             --             --             --
  Sales of marketable securities                                   --             --             --             --             --
  Net payments from (advances to) Interstate
    Hotels & Resorts                                               --             --             --             --             --
  (Increase) decrease in restricted cash                           --             --             --             --             --
  Other, net                                                       --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
        Net cash provided by (used in)
          investing activities                                   (207)           (82)           (34)          (105)           (56)
                                                           ----------     ----------     ----------     ----------     ----------

Financing activities:

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

Effect of exchange rate changes on cash                            --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS               --             --             --             --             --

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


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

  Net (loss) income                                                --            822          2,249        (15,127)         1,783
  Adjustments to reconcile net income (loss) to net
    cash provided by (used in) operating activities:

    Depreciation and amortization                                  --            410          1,219            502            406
    Loss on asset impairment                                       --             --             --         15,347             --
    Equity in earnings                                             --             --             --             --             --
    Loss on sale of assets, before tax effect                      --             --             --             --             --
    Gain on early extinguishment of debt                           --             --             --             --             --
    Minority interests                                             --             --             --             --             --
    Amortization of unearned stock-based compensation              --             --             --             --             --
    Unrealized gain on interest rate swaps recognized
      in net loss                                                  --             --             --             --             --
    Deferred income taxes                                          --             --             --             --             --
    Changes in operating assets and liabilities:
        Accounts receivable, net                                   --            (14)            --             --             --
        Prepaid expenses and other                                 --              5             20             15             20
        Due from/to Interstate Hotels & Resorts                    --             --             --             --             --
        Accounts payable, accrued expenses, accrued
          interest and other liabilities                           --            (56)          (235)          (162)            17
        Due from subsidiaries                                      --         (1,158)        (2,985)          (441)        (2,074)
                                                           ----------     ----------     ----------     ----------     ----------
        Net cash provided by (used in)
          operating activities                                     --              9            268            134            152
                                                           ----------     ----------     ----------     ----------     ----------

Investing activities:

  Capital expenditures for property and equipment                  --             (9)          (268)          (134)          (141)
  Proceeds from sales of assets                                    --             --             --             --             --
  Purchases of marketable securities                               --             --             --             --             --
  Sales of marketable securities                                   --             --             --             --             --
  Net payments from (advances to) Interstate
    Hotels & Resorts                                               --             --             --             --             --
  (Increase) decrease in restricted cash                           --             --             --             --             --
  Other, net                                                       --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
        Net cash provided by (used in)
          investing activities                                     --             (9)          (268)          (134)          (141)
                                                           ----------     ----------     ----------     ----------     ----------

Financing activities:

  Principal payments on long-term debt                             --             --             --             --            (11)
  Proceeds from issuance of long-term debt                         --             --             --             --             --
  Deferred financing fees                                          --             --             --             --             --
  Contributions from partners                                      --             --             --             --             --
  Distributions to partners                                        --             --             --             --             --
  Purchase of limited partnership unit                             --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
        Net cash provided by (used in)
          financing activities                                     --             --             --             --            (11)
                                                           ----------     ----------     ----------     ----------     ----------

Effect of exchange rate changes on cash                            --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS               --             --             --             --             --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                     --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                           --             --             --             --             --
                                                           ==========     ==========     ==========     ==========     ==========
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)

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

  Net (loss) income                                            (8,123)           945         (4,758)            --         (5,414)
  Adjustments to reconcile net income (loss) to net
    cash provided by (used in) operating activities:

    Depreciation and amortization                                 743            634            535             --            330
    Loss on asset impairment                                    9,231             --          5,213             --          5,187
    Equity in earnings                                             --             --             --             --             --
    Loss on sale of assets, before tax effect                      --             --             --             --             --
    Gain on early extinguishment of debt                           --             --             --             --             --
    Minority interests                                             --             --             --             --             --
    Amortization of unearned stock-based compensation              --             --             --             --             --
    Unrealized gain on interest rate swaps recognized
      in net loss                                                  --             --             --             --             --
    Deferred income taxes                                          --             --             --             --             --
    Changes in operating assets and liabilities:
        Accounts receivable, net                                   --             --             --              1             14
        Prepaid expenses and other                                 42              7            (35)            --              4
        Due from/to Interstate Hotels & Resorts                    --             --             --             --             --
        Accounts payable, accrued expenses, accrued
          interest and other liabilities                          108           (246)          (332)          (130)           (28)
        Due from subsidiaries                                  (1,853)        (1,194)          (613)           129             19
                                                           ----------     ----------     ----------     ----------     ----------
        Net cash provided by (used in)
          operating activities                                    148            146             10             --            112
                                                           ----------     ----------     ----------     ----------     ----------

Investing activities:

  Capital expenditures for property and equipment                (148)          (146)           (10)            --           (112)
  Proceeds from sales of assets                                    --             --             --             --             --
  Purchases of marketable securities                               --             --             --             --             --
  Sales of marketable securities                                   --             --             --             --             --
  Net payments from (advances to) Interstate
    Hotels & Resorts                                               --             --             --             --             --
  (Increase) decrease in restricted cash                           --             --             --             --             --
  Other, net                                                       --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
        Net cash provided by (used in)
          investing activities                                   (148)          (146)           (10)            --           (112)
                                                           ----------     ----------     ----------     ----------     ----------

Financing activities:

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

Effect of exchange rate changes on cash                            --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS               --             --             --             --             --

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


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

  Net (loss) income                                               399            374            762          2,194         (5,026)
  Adjustments to reconcile net income (loss) to net
    cash provided by (used in) operating activities:

    Depreciation and amortization                                 462            583            338          1,438            275
    Loss on asset impairment                                       --             --             --             --          5,478
    Equity in earnings                                             --             --             --             --             --
    Loss on sale of assets, before tax effect                      --             --             --             --             --
    Gain on early extinguishment of debt                           --             --             --             --             --
    Minority interests                                             --             --             --             --             --
    Amortization of unearned stock-based compensation              --             --             --             --             --
    Unrealized gain on interest rate swaps recognized
      in net loss                                                  --             --             --             --             --
    Deferred income taxes                                          --             --             --             --             --
    Changes in operating assets and liabilities:
        Accounts receivable, net                                   --             --             --             --             --
        Prepaid expenses and other                                  5             10             31             12              6
        Due from/to Interstate Hotels & Resorts                    --             --             --             --             --
        Accounts payable, accrued expenses, accrued
          interest and other liabilities                          (56)           103            (91)           246           (110)
        Due from subsidiaries                                    (571)          (945)          (859)        (3,833)          (485)
                                                           ----------     ----------     ----------     ----------     ----------
        Net cash provided by (used in)
          operating activities                                    239            125            181             57            138
                                                           ----------     ----------     ----------     ----------     ----------

Investing activities:

  Capital expenditures for property and equipment                (239)          (125)          (181)           (57)          (138)
  Proceeds from sales of assets                                    --             --             --             --             --
  Purchases of marketable securities                               --             --             --             --             --
  Sales of marketable securities                                   --             --             --             --             --
  Net payments from (advances to) Interstate
    Hotels & Resorts                                               --             --             --             --             --
  (Increase) decrease in restricted cash                           --             --             --             --             --
  Other, net                                                       --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
        Net cash provided by (used in)
          investing activities                                   (239)          (125)          (181)           (57)          (138)
                                                           ----------     ----------     ----------     ----------     ----------

Financing activities:

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

Effect of exchange rate changes on cash                            --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS               --             --             --             --             --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                     --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                           --             --             --             --             --
                                                           ==========     ==========     ==========     ==========     ==========
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)

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

  Net (loss) income                                             2,154         (5,041)        (1,994)          (942)          (939)
  Adjustments to reconcile net income (loss) to net
    cash provided by (used in) operating activities:

    Depreciation and amortization                                 538            292            186             31             55
    Loss on asset impairment                                       --          4,670          2,137          1,455          1,004
    Equity in earnings                                             --             --             --             --             --
    Loss on sale of assets, before tax effect                      --             --             --             --             --
    Gain on early extinguishment of debt                           --             --             --             --             --
    Minority interests                                             --             --             --             --             --
    Amortization of unearned stock-based compensation              --             --             --             --             --
    Unrealized gain on interest rate swaps recognized
      in net loss                                                  --             --             --             --             --
    Deferred income taxes                                          --             --             --             --             --
    Changes in operating assets and liabilities:
        Accounts receivable, net                                   --              2             --             --             --
        Prepaid expenses and other                                  2             (4)             3              7             (3)
        Due from/to Interstate Hotels & Resorts                    --             --             --             --             --
        Accounts payable, accrued expenses, accrued
          interest and other liabilities                         (215)            --            (23)           (61)          (112)
        Due from subsidiaries                                  (2,374)            85           (279)          (232)        (2,984)
                                                           ----------     ----------     ----------     ----------     ----------
        Net cash provided by (used in)
          operating activities                                    105              4             30            258         (2,979)
                                                           ----------     ----------     ----------     ----------     ----------

Investing activities:

  Capital expenditures for property and equipment                (105)           (25)           (30)          (258)           (91)
  Proceeds from sales of assets                                    --             --             --             --          3,070
  Purchases of marketable securities                               --             --             --             --             --
  Sales of marketable securities                                   --             --             --             --             --
  Net payments from (advances to) Interstate
    Hotels & Resorts                                               --             --             --             --             --
  (Increase) decrease in restricted cash                           --             --             --             --             --
  Other, net                                                       --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
        Net cash provided by (used in)
          investing activities                                   (105)           (25)           (30)          (258)         2,979
                                                           ----------     ----------     ----------     ----------     ----------

Financing activities:

  Principal payments on long-term debt                             --             21             --             --             --
  Proceeds from issuance of long-term debt                         --             --             --             --             --
  Deferred financing fees                                          --             --             --             --             --
  Contributions from partners                                      --             --             --             --             --
  Distributions to partners                                        --             --             --             --             --
  Purchase of limited partnership unit                             --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
        Net cash provided by (used in)
          financing activities                                     --             21             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------

Effect of exchange rate changes on cash                            --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS               --             --             --             --             --

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


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

  Net (loss) income                                            (3,361)       (12,720)           170         (6,918)           984
  Adjustments to reconcile net income (loss) to net
    cash provided by (used in) operating activities:

    Depreciation and amortization                                 233            561            104            349            440
    Loss on asset impairment                                    2,828         13,286             --          7,187             --
    Equity in earnings                                             --             --             --             --             --
    Loss on sale of assets, before tax effect                      --             --             --             --             --
    Gain on early extinguishment of debt                           --             --             --             --             --
    Minority interests                                             --             --             --             --             --
    Amortization of unearned stock-based compensation              --             --             --             --             --
    Unrealized gain on interest rate swaps recognized
      in net loss                                                  --             --             --             --             --
    Deferred income taxes                                          --             --             --             --             --
    Changes in operating assets and liabilities:
        Accounts receivable, net                                   --             --             --             --             --
        Prepaid expenses and other                                 (6)             5              8             89              5
        Due from/to Interstate Hotels & Resorts                    --             --             --             --             --
        Accounts payable, accrued expenses, accrued
          interest and other liabilities                          (41)           (73)           (15)           (30)          (160)
        Due from subsidiaries                                     317         (1,005)          (256)          (574)        (1,227)
                                                           ----------     ----------     ----------     ----------     ----------
        Net cash provided by (used in)
          operating activities                                    (30)            54             11            103             42
                                                           ----------     ----------     ----------     ----------     ----------

Investing activities:

  Capital expenditures for property and equipment                  (4)           (54)           (11)          (103)           (42)
  Proceeds from sales of assets                                    --             --             --             --             --
  Purchases of marketable securities                               --             --             --             --             --
  Sales of marketable securities                                   --             --             --             --             --
  Net payments from (advances to) Interstate
    Hotels & Resorts                                               --             --             --             --             --
  (Increase) decrease in restricted cash                           --             --             --             --             --
  Other, net                                                       --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
        Net cash provided by (used in)
          investing activities                                     (4)           (54)           (11)          (103)           (42)
                                                           ----------     ----------     ----------     ----------     ----------

Financing activities:

  Principal payments on long-term debt                             34             --             --             --             --
  Proceeds from issuance of long-term debt                         --             --             --             --             --
  Deferred financing fees                                          --             --             --             --             --
  Contributions from partners                                      --             --             --             --             --
  Distributions to partners                                        --             --             --             --             --
  Purchase of limited partnership unit                             --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
        Net cash provided by (used in)
          financing activities                                     34             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------

Effect of exchange rate changes on cash                            --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS               --             --             --             --             --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                     --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                           --             --             --             --             --
                                                           ==========     ==========     ==========     ==========     ==========
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)

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

  Net (loss) income                                               567        (10,033)         1,947         (7,539)           338
  Adjustments to reconcile net income (loss) to net
    cash provided by (used in) operating activities:

    Depreciation and amortization                               1,707            398          1,292            412            337
    Loss on asset impairment                                       --         10,288             --          7,416             --
    Equity in earnings                                             --             --             --             --             --
    Loss on sale of assets, before tax effect                      --             --             --             --             --
    Gain on early extinguishment of debt                           --             --             --             --             --
    Minority interests                                             --             --             --             --             --
    Amortization of unearned stock-based compensation              --             --             --             --             --
    Unrealized gain on interest rate swaps recognized
      in net loss                                                  --             --             --             --             --
    Deferred income taxes                                          --             --             --             --             --
    Changes in operating assets and liabilities:
        Accounts receivable, net                                   --             --             (4)            --             --
        Prepaid expenses and other                                122              8             20              6              1
        Due from/to Interstate Hotels & Resorts                    --             --             --             --             --
        Accounts payable, accrued expenses, accrued
          interest and other liabilities                          (53)          (242)          (910)           (91)           (61)
        Due from subsidiaries                                  (2,178)          (344)        (2,288)          (117)          (479)
                                                           ----------     ----------     ----------     ----------     ----------
        Net cash provided by (used in)
          operating activities                                    165             75             57             87            136
                                                           ----------     ----------     ----------     ----------     ----------

Investing activities:

  Capital expenditures for property and equipment                (165)           (75)           (57)           (87)          (136)
  Proceeds from sales of assets                                    --             --             --             --             --
  Purchases of marketable securities                               --             --             --             --             --
  Sales of marketable securities                                   --             --             --             --             --
  Net payments from (advances to) Interstate
    Hotels & Resorts                                               --             --             --             --             --
  (Increase) decrease in restricted cash                           --             --             --             --             --
  Other, net                                                       --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
        Net cash provided by (used in)
          investing activities                                   (165)           (75)           (57)           (87)          (136)
                                                           ----------     ----------     ----------     ----------     ----------

Financing activities:

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

Effect of exchange rate changes on cash                            --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS               --             --             --             --             --

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


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

  Net (loss) income                                            (1,600)          (641)       (18,966)          (933)          (929)
  Adjustments to reconcile net income (loss) to net
    cash provided by (used in) operating activities:

    Depreciation and amortization                                 223          1,095          1,178            140             --
    Loss on asset impairment                                    1,259             --         18,075          1,383          1,787
    Equity in earnings                                             --             --             --             --             --
    Loss on sale of assets, before tax effect                      --             --          1,827             --            318
    Gain on early extinguishment of debt                           --             --             --             --             --
    Minority interests                                             --             --             --             --             --
    Amortization of unearned stock-based compensation              --             --             --             --             --
    Unrealized gain on interest rate swaps recognized
      in net loss                                                  --             --             --             --             --
    Deferred income taxes                                          --             --             --             --             --
    Changes in operating assets and liabilities:
        Accounts receivable, net                                   --             --             --             --             --
        Prepaid expenses and other                                 (5)            19             --             (2)            --
        Due from/to Interstate Hotels & Resorts                    --             --             --             --             --
        Accounts payable, accrued expenses, accrued
          interest and other liabilities                          (79)            41           (148)           (69)          (107)
        Due from subsidiaries                                     247           (480)       (28,315)          (492)       (14,769)
                                                           ----------     ----------     ----------     ----------     ----------
        Net cash provided by (used in)
          operating activities                                     45             34        (26,349)            27        (13,700)
                                                           ----------     ----------     ----------     ----------     ----------

Investing activities:

  Capital expenditures for property and equipment                 (45)           (34)          (901)           (27)          (800)
  Proceeds from sales of assets                                    --             --         27,250             --         14,500
  Purchases of marketable securities                               --             --             --             --             --
  Sales of marketable securities                                   --             --             --             --             --
  Net payments from (advances to) Interstate
    Hotels & Resorts                                               --             --             --             --             --
  (Increase) decrease in restricted cash                           --             --             --             --             --
  Other, net                                                       --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
        Net cash provided by (used in)
          investing activities                                    (45)           (34)        26,349            (27)        13,700
                                                           ----------     ----------     ----------     ----------     ----------

Financing activities:

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

Effect of exchange rate changes on cash                            --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS               --             --             --             --             --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                     --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                           --             --             --             --             --
                                                           ==========     ==========     ==========     ==========     ==========
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)

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

  Net (loss) income                                            (8,807)           362            479            725            927
  Adjustments to reconcile net income (loss) to net
    cash provided by (used in) operating activities:

    Depreciation and amortization                                 319            828            966            354            237
    Loss on asset impairment                                    8,685             --             --             --             --
    Equity in earnings                                             --             --             --             --             --
    Loss on sale of assets, before tax effect                      --             --             --             --             --
    Gain on early extinguishment of debt                           --             --             --             --             --
    Minority interests                                             --             --             --             --             --
    Amortization of unearned stock-based compensation              --             --             --             --             --
    Unrealized gain on interest rate swaps recognized
      in net loss                                                  --             --             --             --             --
    Deferred income taxes                                          --             --             --             --             --
    Changes in operating assets and liabilities:
        Accounts receivable, net                                   --             --             --             --             --
        Prepaid expenses and other                                 (2)             6             43             29             13
        Due from/to Interstate Hotels & Resorts                    --             --             --             --             --
        Accounts payable, accrued expenses, accrued
          interest and other liabilities                          (97)          (109)        (1,115)            82           (139)
        Due from subsidiaries                                    (124)          (612)          (192)        (1,171)        (1,018)
                                                           ----------     ----------     ----------     ----------     ----------
        Net cash provided by (used in)
          operating activities                                    (26)           475            181             19             20
                                                           ----------     ----------     ----------     ----------     ----------

Investing activities:

  Capital expenditures for property and equipment                 (14)          (475)          (181)           (19)           (20)
  Proceeds from sales of assets                                    --             --             --             --             --
  Purchases of marketable securities                               --             --             --             --             --
  Sales of marketable securities                                   --             --             --             --             --
  Net payments from (advances to) Interstate
    Hotels & Resorts                                               --             --             --             --             --
  (Increase) decrease in restricted cash                           --             --             --             --             --
  Other, net                                                       --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
        Net cash provided by (used in)
          investing activities                                    (14)          (475)          (181)           (19)           (20)
                                                           ----------     ----------     ----------     ----------     ----------

Financing activities:

  Principal payments on long-term debt                             40             --             --             --             --
  Proceeds from issuance of long-term debt                         --             --             --             --             --
  Deferred financing fees                                          --             --             --             --             --
  Contributions from partners                                      --             --             --             --             --
  Distributions to partners                                        --             --             --             --             --
  Purchase of limited partnership unit                             --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
        Net cash provided by (used in)
          financing activities                                     40             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------

Effect of exchange rate changes on cash                            --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS               --             --             --             --             --

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


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

  Net (loss) income                                               327          2,156         (1,114)         1,449        (16,292)
  Adjustments to reconcile net income (loss) to net
    cash provided by (used in) operating activities:

    Depreciation and amortization                                 171            890            413            580            697
    Loss on asset impairment                                       --             --            638             --         15,255
    Equity in earnings                                             --             --             --             --             --
    Loss on sale of assets, before tax effect                      --             --             --             --             --
    Gain on early extinguishment of debt                           --             --             --             --             --
    Minority interests                                             --             --             --             --             --
    Amortization of unearned stock-based compensation              --             --             --             --             --
    Unrealized gain on interest rate swaps recognized
      in net loss                                                  --             --             --             --             --
    Deferred income taxes                                          --             --             --             --             --
    Changes in operating assets and liabilities:
        Accounts receivable, net                                   --             --             --             --             --
        Prepaid expenses and other                                  9             (9)             5              8             19
        Due from/to Interstate Hotels & Resorts                    --             --             --             --             --
        Accounts payable, accrued expenses, accrued
          interest and other liabilities                           37           (100)           (90)           (91)           (97)
        Due from subsidiaries                                    (536)        (2,843)           261         (1,860)           497
                                                           ----------     ----------     ----------     ----------     ----------
        Net cash provided by (used in)
          operating activities                                      8             94            113             86             79
                                                           ----------     ----------     ----------     ----------     ----------

Investing activities:

  Capital expenditures for property and equipment                  (8)           (94)          (113)           (86)           (11)
  Proceeds from sales of assets                                    --             --             --             --             --
  Purchases of marketable securities                               --             --             --             --             --
  Sales of marketable securities                                   --             --             --             --             --
  Net payments from (advances to) Interstate
    Hotels & Resorts                                               --             --             --             --             --
  (Increase) decrease in restricted cash                           --             --             --             --             --
  Other, net                                                       --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
        Net cash provided by (used in)
          investing activities                                     (8)           (94)          (113)           (86)           (11)
                                                           ----------     ----------     ----------     ----------     ----------

Financing activities:

  Principal payments on long-term debt                             --             --             --             --            (68)
  Proceeds from issuance of long-term debt                         --             --             --             --             --
  Deferred financing fees                                          --             --             --             --             --
  Contributions from partners                                      --             --             --             --             --
  Distributions to partners                                        --             --             --             --             --
  Purchase of limited partnership unit                             --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
        Net cash provided by (used in)
          financing activities                                     --             --             --             --            (68)
                                                           ----------     ----------     ----------     ----------     ----------

Effect of exchange rate changes on cash                            --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS               --             --             --             --             --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                     --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                           --             --             --             --             --
                                                           ==========     ==========     ==========     ==========     ==========
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)

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

  Net (loss) income                                            (8,053)        (2,034)         1,515            944          3,446
  Adjustments to reconcile net income (loss) to net
    cash provided by (used in) operating activities:

    Depreciation and amortization                                 584            259          4,716              3          2,612
    Loss on asset impairment                                    8,500          1,064             --             --             --
    Equity in earnings                                             --             --             --             --             --
    Loss on sale of assets, before tax effect                      --          1,204             --             --             --
    Gain on early extinguishment of debt                           --             --             --             --             --
    Minority interests                                             --             --             --             --             --
    Amortization of unearned stock-based compensation              --             --             --             --             --
    Unrealized gain on interest rate swaps recognized
      in net loss                                                  --             --             --             --             --
    Deferred income taxes                                          --             --             --             --             --
    Changes in operating assets and liabilities:
        Accounts receivable, net                                   --             --             --             --             --
        Prepaid expenses and other                                 52              3            151              2            227
        Due from/to Interstate Hotels & Resorts                    --             --             --             --             --
        Accounts payable, accrued expenses, accrued
          interest and other liabilities                         (178)          (173)           699             (4)           220
        Due from subsidiaries                                    (851)        (6,475)        (6,504)          (945)        (4,160)
                                                           ----------     ----------     ----------     ----------     ----------
        Net cash provided by (used in)
          operating activities                                     54         (6,152)           577             --          2,345
                                                           ----------     ----------     ----------     ----------     ----------

Investing activities:

  Capital expenditures for property and equipment                 (54)        (1,598)          (577)            --         (2,345)
  Proceeds from sales of assets                                    --          7,750             --             --             --
  Purchases of marketable securities                               --             --             --             --             --
  Sales of marketable securities                                   --             --             --             --             --
  Net payments from (advances to) Interstate
    Hotels & Resorts                                               --             --             --             --             --
  (Increase) decrease in restricted cash                           --             --             --             --             --
  Other, net                                                       --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
        Net cash provided by (used in)
          investing activities                                    (54)         6,152           (577)            --         (2,345)
                                                           ----------     ----------     ----------     ----------     ----------

Financing activities:

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

Effect of exchange rate changes on cash                            --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS               --             --             --             --             --

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


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

  Net (loss) income                                               975            633        (15,429)           901        (31,067)
  Adjustments to reconcile net income (loss) to net
    cash provided by (used in) operating activities:

    Depreciation and amortization                                 420          1,028            747            955            800
    Loss on asset impairment                                       --             --         16,128             --             --
    Equity in earnings                                             --             --             --             --             --
    Loss on sale of assets, before tax effect                      --             --             --             --             --
    Gain on early extinguishment of debt                           --             --             --             --             --
    Minority interests                                             --             --             --             --             --
    Amortization of unearned stock-based compensation              --             --             --             --             --
    Unrealized gain on interest rate swaps recognized
      in net loss                                                  --             --             --             --             --
    Deferred income taxes                                          --             --             --             --             --
    Changes in operating assets and liabilities:
        Accounts receivable, net                                   --             --             --             (8)        (3,371)
        Prepaid expenses and other                                 31             18              6             12            911
        Due from/to Interstate Hotels & Resorts                    --             --             --             --         (4,955)
        Accounts payable, accrued expenses, accrued
          interest and other liabilities                           25            359            (49)            22         (5,636)
        Due from subsidiaries                                  (1,278)        (1,639)        (1,019)        (1,805)         4,592
                                                           ----------     ----------     ----------     ----------     ----------
        Net cash provided by (used in)
          operating activities                                    173            399            384             77        (38,726)
                                                           ----------     ----------     ----------     ----------     ----------

Investing activities:

  Capital expenditures for property and equipment                (173)          (399)          (384)           (77)          (894)
  Proceeds from sales of assets                                    --             --             --             --             --
  Purchases of marketable securities                               --             --             --             --             --
  Sales of marketable securities                                   --             --             --             --             --
  Net payments from (advances to) Interstate
    Hotels & Resorts                                               --             --             --             --             --
  (Increase) decrease in restricted cash                           --             --             --             --             --
  Other, net                                                       --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
        Net cash provided by (used in)
          investing activities                                   (173)          (399)          (384)           (77)          (894)
                                                           ----------     ----------     ----------     ----------     ----------

Financing activities:

  Principal payments on long-term debt                             --             --             --             --         45,934
  Proceeds from issuance of long-term debt                         --             --             --             --             --
  Deferred financing fees                                          --             --             --             --             (4)
  Contributions from partners                                      --             --             --             --             --
  Distributions to partners                                        --             --             --             --             --
  Purchase of limited partnership unit                             --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
        Net cash provided by (used in)
          financing activities                                     --             --             --             --         45,930
                                                           ----------     ----------     ----------     ----------     ----------

Effect of exchange rate changes on cash                            --             --             --             --             --
                                                           ----------     ----------     ----------     ----------     ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS               --             --             --             --          6,310

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                     --             --             --             --         12,517
                                                           ----------     ----------     ----------     ----------     ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                           --             --             --             --         18,827
                                                           ==========     ==========     ==========     ==========     ==========
</TABLE>
<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)

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

  Net (loss) income                                          (159,822)       257,756       (340,898)
  Adjustments to reconcile net income (loss) to net
    cash provided by (used in) operating activities:

      Depreciation and amortization                            39,943             --         84,095
      Loss on asset impairment                                166,038             --        285,677
      Equity in earnings                                           --       (257,756)            --
      Loss on sale of assets, before tax effect                 3,349             --          2,772
      Gain on early extinguishment of debt                         --             --         (4,574)
      Minority interests                                           --             --              6
      Amortization of unearned stock-based compensation            --             --          2,380
      Unrealized gain on interest rate swaps recognized
        in net loss                                                --             --         (3,977)
      Deferred income taxes                                        --             --         (1,848)
      Changes in operating assets and liabilities:
        Accounts receivable, net                               (3,397)            --         (7,641)
        Prepaid expenses and other                              2,049             --          2,763
        Due from/to Interstate Hotels & Resorts                (4,955)            --         (4,531)
        Accounts payable, accrued expenses, accrued
         interest and other liabilities                       (10,073)            --        (19,503)
        Due from subsidiaries                                (111,687)            --             --
                                                           ----------     ----------     ----------
        Net cash provided by (used in)
          operating activities                                (78,555)            --         (5,279)
                                                           ----------     ----------     ----------

Investing activities:

   Capital expenditures for property and equipment            (13,651)            --        (21,826)
   Proceeds from sales of assets                               52,570             --         74,470
   Purchases of marketable securities                              --             --        (18,040)
   Sales of marketable securities                                  --             --         17,040
   Net payments from (advances to) Interstate
     Hotels & Resorts                                              --             --         42,052
   (Increase) decrease in restricted cash                          --             --        (18,038)
   Other, net                                                      --             --           (299)
                                                           ----------     ----------     ----------
        Net cash provided by (used in)
          investing activities                                 38,919             --         75,359
                                                           ----------     ----------     ----------

Financing activities:

   Principal payments on long-term debt                        45,950             --       (179,309)
   Proceeds from issuance of long-term debt                        --             --        271,000
   Deferred financing fees                                         (4)            --         (7,513)
   Contributions from partners                                     --             --         82,920
   Distributions to partners                                       --             --           (424)
   Purchase of limited partnership unit                            --             --            (65)
                                                           ----------     ----------     ----------
       Net cash provided by (used in)
          financing activities                                 45,946             --        166,609
                                                           ----------     ----------     ----------

Effect of exchange rate changes on cash                            --             --           (304)
                                                           ----------     ----------     ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS            6,310             --        236,385

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                 12,517             --         33,889
                                                           ----------     ----------     ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                       18,827             --        270,274
                                                           ==========     ==========     ==========
</TABLE>



<PAGE>
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                          MERISTAR       NON-       MERISTAR       AGH        MERISTAR     MERISTAR
                                                        HOSPITALITY   GUARANTOR      SUB 7C,      UPREIT,      SUB 5N,      SUB 8A,
                                                          OP, L.P.   SUBSIDIARIES      LLC         LLC           LLC          LLC
                                                        -----------  ------------   --------     --------     --------     --------
<S>                                                     <C>          <C>            <C>          <C>          <C>          <C>
Operating activities:

 Net (loss) income                                         (37,560)      32,934           --           --          544       (4,106)
 Adjustments to reconcile net income (loss) to net              --           --           --           --           --           --
  cash provided by (used in) operating activities:              --           --           --           --           --           --
  Depreciation and amortization                              9,196       40,316           --           --           99          112
  Equity in earnings                                       (55,165)          --           --           --           --           --
  Loss on sale of assets, before tax effect                     --           13           --           --           --        4,812
  Loss on fair value of non-hedging derivatives              4,735           --           --           --           --           --
  Minority interests                                           (10)          --           --           --           --           --
  Amortization of unearned stock based compensation          3,538           --           --           --           --           --
  Unrealized gain on interest rate swaps recognized in
   net loss                                                 (4,787)          --           --           --           --           --
  Deferred income taxes                                       (644)          --           --           --           --           --
  Changes in operating assets and liabilities:
   Accounts receivable, net                                 (5,770)         (57)          --           --          (16)         (15)
   Prepaid expenses and other                               (4,272)        (477)          --           --           --           --
   Due from/to Interstate Hotels                             4,378           --           --           --           --           --
   Accounts payable, accrued expenses, accrued
    interest and other liabilities                         (10,254)      (2,190)          --           --           35            6
   Due from subsidiaries                                   131,389      (53,113)          --           --         (631)      (2,463)
                                                          --------     --------     --------     --------     --------     --------
   Net cash provided by (used in) operating activities      34,774       17,426           --           --           31       (1,654)
                                                          --------     --------     --------     --------     --------     --------

Investing activities:

 Capital expenditures for property and equipment              (837)     (11,424)          --           --          (31)      (4,616)
 Proceeds from sales of assets                                  --        7,280           --           --           --        6,270
 Net payments from (advances to) Interstate Hotels &
  Resorts                                                   (7,000)         678           --           --           --           --
 (Increase) decrease in restricted cash                      2,513        2,348           --           --           --           --
 Other, net                                                     --           --           --           --           --           --
                                                          --------     --------     --------     --------     --------     --------
   Net cash provided by (used in) investing activities      (5,324)      (1,118)          --           --          (31)       1,654
                                                          --------     --------     --------     --------     --------     --------

Financing activities:

 Principal payments on long-term debt                     (297,310)     (16,308)          --           --           --           --
 Proceeds from issuance of long-term debt                  269,638           --           --           --           --           --
 Deferred financing fees                                    (3,416)          --           --           --           --           --
 Contributions from partners                                 3,156           --           --           --           --           --
 Distributions paid to partners                             (2,467)          --           --           --           --           --
                                                                --           --           --           --           --           --
                                                          --------     --------     --------     --------     --------     --------
   Net cash provided by (used in) financing activities     (30,399)     (16,308)          --           --           --           --
                                                          --------     --------     --------     --------     --------     --------

Effect of exchange rate changes on cash                         (9)          --           --           --           --           --
                                                          --------     --------     --------     --------     --------     --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS          (958)          --           --           --           --           --

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD               6,798           --           --           --           --           --
                                                          --------     --------     --------     --------     --------     --------
CASH AND CASH EQUIVALENTS, END OF PERIOD                     5,840           --           --           --           --           --
                                                          ========     ========     ========     ========     ========     ========
</TABLE>

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

 Net (loss) income                                             834           --          766        2,524         (328)
 Adjustments to reconcile net income (loss) to net              --           --           --           --           --
  cash provided by (used in) operating activities:              --           --           --           --           --
  Depreciation and amortization                                339           --          323        1,785          767
  Equity in earnings                                            --           --           --           --           --
  Loss on sale of assets, before tax effect                     --           --           --           --           --
  Loss on fair value of non-hedging derivatives                 --           --           --           --           --
  Minority interests                                            --           --           --           --           --
  Amortization of unearned stock based compensation             --           --           --           --           --
  Unrealized gain on interest rate swaps recognized in
   net loss                                                     --           --           --           --           --
  Deferred income taxes                                        (96)          --           --           --           --
  Changes in operating assets and liabilities:
   Accounts receivable, net                                      8           --           --           --           --
   Prepaid expenses and other                                   19           --           --           --           (8)
   Due from/to Interstate Hotels                                --           --           --           --           --
   Accounts payable, accrued expenses, accrued
    interest and other liabilities                               8           --           50          228           80
   Due from subsidiaries                                      (994)          --       (1,079)      (3,721)        (210)
                                                          --------     --------     --------     --------     --------
   Net cash provided by (used in) operating activities         118           --           60          816          301
                                                          --------     --------     --------     --------     --------

Investing activities:

 Capital expenditures for property and equipment              (118)          --          (60)        (816)        (301)
 Proceeds from sales of assets                                  --           --           --           --           --
 Net payments from (advances to) Interstate Hotels &
  Resorts                                                       --           --           --           --           --
 (Increase) decrease in restricted cash                         --           --           --           --           --
 Other, net                                                     --           --           --           --           --
                                                          --------     --------     --------     --------     --------
   Net cash provided by (used in) investing activities        (118)          --          (60)        (816)        (301)
                                                          --------     --------     --------     --------     --------

Financing activities:

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

Effect of exchange rate changes on cash                         --           --           --           --           --
                                                          --------     --------     --------     --------     --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS            --           --           --           --           --

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

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

 Net (loss) income                                             643          431          591          472           --           --
 Adjustments to reconcile net income (loss) to net              --           --           --           --           --           --
  cash provided by (used in) operating activities:              --           --           --           --           --           --
  Depreciation and amortization                                448          348          101          529           --           --
  Equity in earnings                                            --           --           --           --           --           --
  Loss on sale of assets, before tax effect                     --           --           --           --           --           --
  Loss on fair value of non-hedging derivatives                 --           --           --           --           --           --
  Minority interests                                            --           --           --           --           --           --
  Amortization of unearned stock based compensation             --           --           --           --           --           --
  Unrealized gain on interest rate swaps recognized in
   net loss                                                     --           --           --           --           --           --
  Deferred income taxes                                         --           --           --           --           --           --
  Changes in operating assets and liabilities:
   Accounts receivable, net                                     --           --           --           --           --           --
   Prepaid expenses and other                                   --           --           --           --           --            1
   Due from/to Interstate Hotels                                --           --           --           --           --           --
   Accounts payable, accrued expenses, accrued
    interest and other liabilities                             (65)          24           73          160           --          (46)
   Due from subsidiaries                                      (921)        (769)        (580)      (1,090)          --           46
                                                          --------     --------     --------     --------     --------     --------
   Net cash provided by (used in) operating activities         105           34          185           71           --            1
                                                          --------     --------     --------     --------     --------     --------

Investing activities:

 Capital expenditures for property and equipment              (105)         (34)        (185)         (71)          --           (1)
 Proceeds from sales of assets                                  --           --           --           --           --           --
 Net payments from (advances to) Interstate Hotels &
  Resorts                                                       --           --           --           --           --           --
 (Increase) decrease in restricted cash                         --           --           --           --           --           --
 Other, net                                                     --           --           --           --           --           --
                                                          --------     --------     --------     --------     --------     --------
   Net cash provided by (used in) investing activities        (105)         (34)        (185)         (71)          --           (1)
                                                          --------     --------     --------     --------     --------     --------

Financing activities:

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

Effect of exchange rate changes on cash                         --           --           --           --           --           --
                                                          --------     --------     --------     --------     --------     --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS            --           --           --           --           --           --

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

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

 Net (loss) income                                           1,119        2,443           65        1,839        1,112
 Adjustments to reconcile net income (loss) to net              --           --           --           --           --
  cash provided by (used in) operating activities:              --           --           --           --           --
  Depreciation and amortization                                393        1,272          689          462          792
  Equity in earnings                                            --           --           --           --           --
  Loss on sale of assets, before tax effect                     --           --           --           --           --
  Loss on fair value of non-hedging derivatives                 --           --           --           --           --
  Minority interests                                            --           --           --           --           --
  Amortization of unearned stock based compensation             --           --           --           --           --
  Unrealized gain on interest rate swaps recognized in
   net loss                                                     --           --           --           --           --
  Deferred income taxes                                         --           --           --           --           --
  Changes in operating assets and liabilities:
   Accounts receivable, net                                    (10)          --           --           --           --
   Prepaid expenses and other                                   --           --           --           --           --
   Due from/to Interstate Hotels                                --           --           --           --           --
   Accounts payable, accrued expenses, accrued
    interest and other liabilities                            (130)         165         (148)          83          248
   Due from subsidiaries                                    (1,209)      (3,503)        (467)      (2,120)      (1,708)
                                                          --------     --------     --------     --------     --------
   Net cash provided by (used in) operating activities         163          377          139          264          444
                                                          --------     --------     --------     --------     --------

Investing activities:

 Capital expenditures for property and equipment              (163)        (377)        (139)        (264)        (444)
 Proceeds from sales of assets                                  --           --           --           --           --
 Net payments from (advances to) Interstate Hotels &
  Resorts                                                       --           --           --           --           --
 (Increase) decrease in restricted cash                         --           --           --           --           --
 Other, net                                                     --           --           --           --           --
                                                          --------     --------     --------     --------     --------
   Net cash provided by (used in) investing activities        (163)        (377)        (139)        (264)        (444)
                                                          --------     --------     --------     --------     --------

Financing activities:

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

Effect of exchange rate changes on cash                         --           --           --           --           --
                                                          --------     --------     --------     --------     --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS            --           --           --           --           --

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

<TABLE>
<CAPTION>
                                                          MERISTAR     MERISTAR     MERISTAR     MERISTAR     MERISTAR     MERISTAR
                                                           SUB 6G,      SUB 8C,      SUB 4C,      SUB 4H,      SUB 7E,      SUB 3D,
                                                             LLC          LLC         L.P.         L.P.          LLC          LLC
                                                          --------     --------     --------     --------     --------     --------
<S>                                                       <C>          <C>          <C>          <C>          <C>          <C>
Operating activities:

 Net (loss) income                                           1,118           --       (1,407)         (95)         451          966
 Adjustments to reconcile net income (loss) to net              --           --           --           --           --           --
  cash provided by (used in) operating activities:              --           --           --           --           --           --
  Depreciation and amortization                                627        1,037          283          405          473          653
  Equity in earnings                                            --           --           --           --           --           --
  Loss on sale of assets, before tax effect                     --           --        1,578           --           --           --
  Loss on fair value of non-hedging derivatives                 --           --           --           --           --           --
  Minority interests                                            --           --           --           --           --           --
  Amortization of unearned stock based compensation             --           --           --           --           --           --
  Unrealized gain on interest rate swaps recognized in
   net loss                                                     --           --           --           --           --           --
  Deferred income taxes                                         --           --          (32)          --           --           --
  Changes in operating assets and liabilities:
   Accounts receivable, net                                     --           --           (1)          --           --           --
   Prepaid expenses and other                                   --           --           --           (3)          --           --
   Due from/to Interstate Hotels                                --           --           --           --           --           --
   Accounts payable, accrued expenses, accrued
    interest and other liabilities                            (103)        (201)        (317)         (67)         (73)         169
   Due from subsidiaries                                    (1,348)        (716)     (11,656)        (158)        (769)      (1,588)
                                                          --------     --------     --------     --------     --------     --------
   Net cash provided by (used in) operating activities         294          120      (11,552)          82           82          200
                                                          --------     --------     --------     --------     --------     --------

Investing activities:

 Capital expenditures for property and equipment              (294)        (120)         (48)         (82)         (82)        (200)
 Proceeds from sales of assets                                  --           --       11,600           --           --           --
 Net payments from (advances to) Interstate Hotels &
  Resorts                                                       --           --           --           --           --           --
 (Increase) decrease in restricted cash                         --           --           --           --           --           --
 Other, net                                                     --           --           --           --           --           --
                                                          --------     --------     --------     --------     --------     --------
   Net cash provided by (used in) investing activities        (294)        (120)      11,552          (82)         (82)        (200)
                                                          --------     --------     --------     --------     --------     --------

Financing activities:

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

Effect of exchange rate changes on cash                         --           --           --           --           --           --
                                                          --------     --------     --------     --------     --------     --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS            --           --           --           --           --           --

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

<TABLE>
<CAPTION>
                                                          MERISTAR     MERISTAR     MERISTAR     MERISTAR     MERISTAR
                                                           SUB 1A,      SUB 5E,     7A JOINT      SUB 6K,      SUB 2B,
                                                             LLC          LLC        VENTURE        LLC          LLC
                                                          --------     --------     --------     --------     --------
<S>                                                       <C>          <C>          <C>          <C>          <C>
Operating activities:

 Net (loss) income                                             736        2,534          520        2,183         (299)
 Adjustments to reconcile net income (loss) to net              --           --           --           --           --
  cash provided by (used in) operating activities:              --           --           --           --           --
  Depreciation and amortization                                343        1,454          312          554          314
  Equity in earnings                                            --           --           --           --           --
  Loss on sale of assets, before tax effect                     --           --           --           --           --
  Loss on fair value of non-hedging derivatives                 --           --           --           --           --
  Minority interests                                            --           --           --           --           --
  Amortization of unearned stock based compensation             --           --           --           --           --
  Unrealized gain on interest rate swaps recognized in
   net loss                                                     --           --           --           --           --
  Deferred income taxes                                         --           --           --           --           --
  Changes in operating assets and liabilities:
   Accounts receivable, net                                     --           --           --           --           --
   Prepaid expenses and other                                   --           --           --           --           --
   Due from/to Interstate Hotels                                --           --           --           --           --
   Accounts payable, accrued expenses, accrued
    interest and other liabilities                             (19)         157          (67)          80           --
   Due from subsidiaries                                    (1,001)      (4,098)        (546)      (2,619)         139
                                                          --------     --------     --------     --------     --------
   Net cash provided by (used in) operating activities          59           47          219          198          154
                                                          --------     --------     --------     --------     --------

Investing activities:

 Capital expenditures for property and equipment               (59)         (47)        (219)        (198)        (154)
 Proceeds from sales of assets                                  --           --           --           --           --
 Net payments from (advances to) Interstate Hotels &
  Resorts                                                       --           --           --           --           --
 (Increase) decrease in restricted cash                         --           --           --           --           --
 Other, net                                                     --           --           --           --           --
                                                          --------     --------     --------     --------     --------
   Net cash provided by (used in) investing activities         (59)         (47)        (219)        (198)        (154)
                                                          --------     --------     --------     --------     --------

Financing activities:

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

Effect of exchange rate changes on cash                         --           --           --           --           --
                                                          --------     --------     --------     --------     --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS            --           --           --           --           --

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

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

 Net (loss) income                                             151          585           49         (419)         575
 Adjustments to reconcile net income (loss) to net              --           --           --           --           --
  cash provided by (used in) operating activities:              --           --           --           --           --
  Depreciation and amortization                                194           --          233          240          667
  Equity in earnings                                            --           --           --           --           --
  Loss on sale of assets, before tax effect                     --           --           --           --           --
  Loss on fair value of non-hedging derivatives                 --           --           --           --           --
  Minority interests                                            --           --           --           --           --
  Amortization of unearned stock based compensation             --           --           --           --           --
  Unrealized gain on interest rate swaps recognized in
   net loss                                                     --           --           --           --           --
  Deferred income taxes                                         --           --           --           --           --
  Changes in operating assets and liabilities:
   Accounts receivable, net                                     --           --           --           --           --
   Prepaid expenses and other                                   --           --           --           --           --
   Due from/to Interstate Hotels                                --           --           --           --           --
   Accounts payable, accrued expenses, accrued
    interest and other liabilities                              33          (33)         115          (12)         (69)
   Due from subsidiaries                                       355         (288)        (124)         244         (986)
                                                          --------     --------     --------     --------     --------
   Net cash provided by (used in) operating activities         733          264          273           53          187
                                                          --------     --------     --------     --------     --------

Investing activities:

 Capital expenditures for property and equipment              (733)        (264)        (273)         (53)        (187)
 Proceeds from sales of assets                                  --           --           --           --           --
 Net payments from (advances to) Interstate Hotels &
  Resorts                                                       --           --           --           --           --
 (Increase) decrease in restricted cash                         --           --           --           --           --
 Other, net                                                     --           --           --           --           --
                                                          --------     --------     --------     --------     --------
   Net cash provided by (used in) investing activities        (733)        (264)        (273)         (53)        (187)
                                                          --------     --------     --------     --------     --------

Financing activities:

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

Effect of exchange rate changes on cash                         --           --           --           --           --
                                                          --------     --------     --------     --------     --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS            --           --           --           --           --

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

<TABLE>
<CAPTION>
                                                            MDV        MERISTAR     MERISTAR     MERISTAR     MERISTAR     MERISTAR
                                                          LIMITED       SUB 5C,      SUB 6J,      SUB 1D,      SUB 7B,      SUB 7D,
                                                        PARTNERSHIP       LLC          LLC          LLC          L.P.         LLC
                                                        -----------    --------     --------     --------     --------     --------
<S>                                                     <C>            <C>          <C>          <C>          <C>          <C>
Operating activities:

 Net (loss) income                                             208          359        1,304        1,594          117        1,519
 Adjustments to reconcile net income (loss) to net              --           --           --           --           --           --
  cash provided by (used in) operating activities:              --           --           --           --           --           --
  Depreciation and amortization                                102          447          482        1,702          694        1,244
  Equity in earnings                                            --           --           --           --           --           --
  Loss on sale of assets, before tax effect                     --           --           --           --           --           --
  Loss on fair value of non-hedging derivatives                 --           --           --           --           --           --
  Minority interests                                            --           --           --           --           --           --
  Amortization of unearned stock based compensation             --           --           --           --           --           --
  Unrealized gain on interest rate swaps recognized in
   net loss                                                     --           --           --           --           --           --
  Deferred income taxes                                         --           --           --           --           --           --
  Changes in operating assets and liabilities:
   Accounts receivable, net                                     --           --          (81)          --           --           40
   Prepaid expenses and other                                    4          (14)          --           --           --           --
   Due from/to Interstate Hotels                                --           --           --           --           --           --
   Accounts payable, accrued expenses, accrued
    interest and other liabilities                             (10)          41         (108)        (360)         199          471
   Due from subsidiaries                                      (291)        (616)      (1,369)      (2,403)        (975)      (3,136)
                                                          --------     --------     --------     --------     --------     --------
   Net cash provided by (used in) operating activities          13          217          228          533           35          138
                                                          --------     --------     --------     --------     --------     --------

Investing activities:

 Capital expenditures for property and equipment               (13)        (217)        (228)        (533)         (35)        (138)
 Proceeds from sales of assets                                  --           --           --           --           --           --
 Net payments from (advances to) Interstate Hotels &
  Resorts                                                       --           --           --           --           --           --
 (Increase) decrease in restricted cash                         --           --           --           --           --           --
 Other, net                                                     --           --           --           --           --           --
                                                          --------     --------     --------     --------     --------     --------
   Net cash provided by (used in) investing activities         (13)        (217)        (228)        (533)         (35)        (138)
                                                          --------     --------     --------     --------     --------     --------

Financing activities:

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

Effect of exchange rate changes on cash                         --           --           --           --           --           --
                                                          --------     --------     --------     --------     --------     --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS            --           --           --           --           --           --

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

<TABLE>
<CAPTION>
                                                          MERISTAR     MERISTAR     MERISTAR     MERISTAR     MERISTAR     MERISTAR
                                                           SUB 7G,      SUB 6B,      SUB 4I,      SUB 5D,      SUB 5H,      SUB 7H,
                                                             LLC         LLC          L.P.          LLC          LLC          LLC
                                                          --------     --------     --------     --------     --------     --------
<S>                                                       <C>          <C>          <C>          <C>          <C>          <C>
Operating activities:

 Net (loss) income                                            (290)         436         (491)      (1,026)         627          337
 Adjustments to reconcile net income (loss) to net              --           --           --           --           --           --
  cash provided by (used in) operating activities:              --           --           --           --           --           --
  Depreciation and amortization                                566          341          341        1,086        1,479          341
  Equity in earnings                                            --           --           --           --           --           --
  Loss on sale of assets, before tax effect                     --           --           --           --           --           --
  Loss on fair value of non-hedging derivatives                 --           --           --           --           --           --
  Minority interests                                            --           --           --           --           --           --
  Amortization of unearned stock based compensation             --           --           --           --           --           --
  Unrealized gain on interest rate swaps recognized in
   net loss                                                     --           --           --           --           --           --
  Deferred income taxes                                         --           --           --           --           --           --
  Changes in operating assets and liabilities:
   Accounts receivable, net                                     --           --           --           --           --           --
   Prepaid expenses and other                                   --           --           --           --           --           --
   Due from/to Interstate Hotels                                --           --           --           --           --           --
   Accounts payable, accrued expenses, accrued
    interest and other liabilities                            (187)         (90)         (28)         124          516           83
   Due from subsidiaries                                        24         (590)         365          110       (1,770)        (571)
                                                          --------     --------     --------     --------     --------     --------
   Net cash provided by (used in) operating activities         113           97          187          294          852          190
                                                          --------     --------     --------     --------     --------     --------

Investing activities:

 Capital expenditures for property and equipment              (113)         (97)        (187)        (294)        (852)        (190)
 Proceeds from sales of assets                                  --           --           --           --           --           --
 Net payments from (advances to) Interstate Hotels &
  Resorts                                                       --           --           --           --           --           --
 (Increase) decrease in restricted cash                         --           --           --           --           --           --
 Other, net                                                     --           --           --           --           --           --
                                                          --------     --------     --------     --------     --------     --------
   Net cash provided by (used in) investing activities        (113)         (97)        (187)        (294)        (852)        (190)
                                                          --------     --------     --------     --------     --------     --------

Financing activities:

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

Effect of exchange rate changes on cash                         --           --           --           --           --           --
                                                          --------     --------     --------     --------     --------     --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS            --           --           --           --           --           --

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

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

 Net (loss) income                                           1,531          (72)         311          846          848
 Adjustments to reconcile net income (loss) to net              --           --           --           --           --
  cash provided by (used in) operating activities:              --           --           --           --           --
  Depreciation and amortization                                 --          355          840          891          339
  Equity in earnings                                            --           --           --           --           --
  Loss on sale of assets, before tax effect                     --           --           --           --           --
  Loss on fair value of non-hedging derivatives                 --           --           --           --           --
  Minority interests                                            --           --           --           --           --
  Amortization of unearned stock based compensation             --           --           --           --           --
  Unrealized gain on interest rate swaps recognized in
   net loss                                                     --           --           --           --           --
  Deferred income taxes                                         --           --           --           --           --
  Changes in operating assets and liabilities:
   Accounts receivable, net                                     --           --           --           --           --
   Prepaid expenses and other                                   --           --           --           --           --
   Due from/to Interstate Hotels                                --           --           --           --           --
   Accounts payable, accrued expenses, accrued
    interest and other liabilities                             311          (46)         (85)      (1,199)         136
   Due from subsidiaries                                    (1,341)        (150)        (691)         162       (1,224)
                                                          --------     --------     --------     --------     --------
   Net cash provided by (used in) operating activities         501           87          375          700           99
                                                          --------     --------     --------     --------     --------

Investing activities:

 Capital expenditures for property and equipment              (501)         (87)        (375)        (700)         (99)
 Proceeds from sales of assets                                  --           --           --           --           --
 Net payments from (advances to) Interstate Hotels &
  Resorts                                                       --           --           --           --           --
 (Increase) decrease in restricted cash                         --           --           --           --           --
 Other, net                                                     --           --           --           --           --
                                                          --------     --------     --------     --------     --------
   Net cash provided by (used in) investing activities        (501)         (87)        (375)        (700)         (99)
                                                          --------     --------     --------     --------     --------

Financing activities:

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

Effect of exchange rate changes on cash                         --           --           --           --           --
                                                          --------     --------     --------     --------     --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS            --           --           --           --           --

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

<TABLE>
<CAPTION>
                                                          MERISTAR     MERISTAR     MERISTAR     MERISTAR     MERISTAR     MERISTAR
                                                           SUB 1E,      SUB 5O,      SUB 6M       SUB 4B,      SUB 6C,      SUB 2C,
                                                            L.P.          LLC       COMPANY         L.P.         LLC          LLC
                                                          --------     --------     --------     --------     --------     --------
<S>                                                       <C>          <C>          <C>          <C>          <C>          <C>
Operating activities:

 Net (loss) income                                             994          353        2,257         (356)       1,519         (938)
 Adjustments to reconcile net income (loss) to net              --           --           --           --           --           --
  cash provided by (used in) operating activities:              --           --           --           --           --           --
  Depreciation and amortization                                223          164          905          414          585          777
  Equity in earnings                                            --           --           --           --           --           --
  Loss on sale of assets, before tax effect                     --           --           --           --           --           --
  Loss on fair value of non-hedging derivatives                 --           --           --           --           --           --
  Minority interests                                            --           --           --           --           --           --
  Amortization of unearned stock based compensation             --           --           --           --           --           --
  Unrealized gain on interest rate swaps recognized
   in net loss                                                  --           --           --           --           --           --
  Deferred income taxes                                         --           --           --           --           --           --
  Changes in operating assets and liabilities:
   Accounts receivable, net                                     --           --           --           --           --           --
   Prepaid expenses and other                                   --           --           13           --           --           --
   Due from/to Interstate Hotels                                --           --           --           --           --           --
   Accounts payable, accrued expenses, accrued
    interest and other liabilities                              12           36          (93)          19          (66)        (131)
   Due from subsidiaries                                    (1,157)        (501)      (2,879)       1,215       (1,715)         455
                                                          --------     --------     --------     --------     --------     --------
   Net cash provided by (used in) operating activities          72           52          203        1,292          323          163
                                                          --------     --------     --------     --------     --------     --------

Investing activities:

 Capital expenditures for property and equipment               (72)         (52)        (203)      (1,292)        (323)        (163)
 Proceeds from sales of assets                                  --           --           --           --           --           --
 Net payments from (advances to) Interstate Hotels &
  Resorts                                                       --           --           --           --           --           --
 (Increase) decrease in restricted cash                         --           --           --           --           --           --
 Other, net                                                     --           --           --           --           --           --
                                                          --------     --------     --------     --------     --------     --------
   Net cash provided by (used in) investing activities         (72)         (52)        (203)      (1,292)        (323)        (163)
                                                          --------     --------     --------     --------     --------     --------

Financing activities:

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

Effect of exchange rate changes on cash                         --           --           --           --           --           --
                                                          --------     --------     --------     --------     --------     --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS            --           --           --           --           --           --

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

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

 Net (loss) income                                             744          (42)       2,575          436        3,482
 Adjustments to reconcile net income (loss) to net              --           --           --           --           --
  cash provided by (used in) operating activities:              --           --           --           --           --
  Depreciation and amortization                                687          691        4,643            2        2,604
  Equity in earnings                                            --           --           --           --           --
  Loss on sale of assets, before tax effect                     --           --           --           --           --
  Loss on fair value of non-hedging derivatives                 --           --           --           --           --
  Minority interests                                            --           --           --           --           --
  Amortization of unearned stock based compensation             --           --           --           --           --
  Unrealized gain on interest rate swaps recognized
   in net loss                                                  --           --           --           --           --
  Deferred income taxes                                         --           --           --           --           --
  Changes in operating assets and liabilities:
   Accounts receivable, net                                     --           --           --          319           --
   Prepaid expenses and other                                   --           --           --           --          483
   Due from/to Interstate Hotels                                --           --           --           --           --
   Accounts payable, accrued expenses, accrued
    interest and other liabilities                            (172)         134          921            8          521
   Due from subsidiaries                                    (1,163)        (297)      (6,957)        (726)      (4,781)
                                                          --------     --------     --------     --------     --------
   Net cash provided by (used in) operating activities          96          486        1,182           39        2,309
                                                          --------     --------     --------     --------     --------

Investing activities:

 Capital expenditures for property and equipment               (96)        (486)      (1,182)         (39)      (2,309)
 Proceeds from sales of assets                                  --           --           --           --           --
 Net payments from (advances to) Interstate Hotels &
  Resorts                                                       --           --           --           --           --
 (Increase) decrease in restricted cash                         --           --           --           --           --
 Other, net                                                     --           --           --           --           --
                                                          --------     --------     --------     --------     --------
   Net cash provided by (used in) investing activities         (96)        (486)      (1,182)         (39)      (2,309)
                                                          --------     --------     --------     --------     --------

Financing activities:

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

Effect of exchange rate changes on cash                         --           --           --           --           --
                                                          --------     --------     --------     --------     --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS            --           --           --           --           --

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

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

 Net (loss) income                                           1,068            905            485          1,040
 Adjustments to reconcile net income (loss) to net              --             --             --             --
  cash provided by (used in) operating activities:              --             --             --             --
  Depreciation and amortization                                360          1,055            951          1,007
  Equity in earnings                                            --             --             --             --
  Loss on sale of assets, before tax effect                     --             --             --             --
  Loss on fair value of non-hedging derivatives                 --             --             --             --
  Minority interests                                            --             --             --             --
  Amortization of unearned stock based compensation             --             --             --             --
  Unrealized gain on interest rate swaps recognized in
   net loss                                                     --             --             --             --
  Deferred income taxes                                         --             --             --             --
  Changes in operating assets and liabilities:
   Accounts receivable, net                                     --             --             --             40
   Prepaid expenses and other                                   --             --              1             --
   Due from/to Interstate Hotels                                --             --             --             --
   Accounts payable, accrued expenses, accrued
    interest and other liabilities                             137            497            (41)            15
   Due from subsidiaries                                    (1,079)        (2,209)        (1,240)        (1,924)
                                                          --------       --------       --------       --------
   Net cash provided by (used in) operating activities         486            248            156            178
                                                          --------       --------       --------       --------

Investing activities:

 Capital expenditures for property and equipment              (486)          (248)          (156)          (178)
 Proceeds from sales of assets                                  --             --             --             --
 Net payments from (advances to) Interstate Hotels &
  Resorts                                                       --             --             --             --
 (Increase) decrease in restricted cash                         --             --             --             --
 Other, net                                                     --             --             --             --
                                                          --------       --------       --------       --------
   Net cash provided by (used in) investing activities        (486)          (248)          (156)          (178)
                                                          --------       --------       --------       --------

Financing activities:

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

Effect of exchange rate changes on cash                         --             --             --             --
                                                          --------       --------       --------       --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS            --             --             --             --

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

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

 Net (loss) income                                         (17,046)        22,231        (55,165)       (37,560)
 Adjustments to reconcile net income (loss) to net              --             --             --             --
  cash provided by (used in) operating activities:              --             --             --             --
  Depreciation and amortization                              1,221         43,787             --         93,299
  Equity in earnings                                            --             --         55,165             --
  Loss on sale of assets, before tax effect                     --          6,390             --          6,403
  Loss on fair value of non-hedging derivatives                 --             --             --          4,735
  Minority interests                                            --             --             --            (10)
  Amortization of unearned stock based compensation             --             --             --          3,538
  Unrealized gain on interest rate swaps recognized in
   net loss                                                     --             --             --         (4,787)
  Deferred income taxes                                         --           (128)            --           (772)
  Changes in operating assets and liabilities:
   Accounts receivable, net                                    (70)           215             --         (5,613)
   Prepaid expenses and other                                 (798)          (302)            --         (5,051)
   Due from/to Interstate Hotels                             1,384          1,384             --          5,762
   Accounts payable, accrued expenses, accrued
    interest and other liabilities                          (2,113)          (184)            --        (12,628)
   Due from subsidiaries                                     7,727        (78,277)            --             --
                                                          --------       --------       --------       --------
   Net cash provided by (used in) operating activities      (9,695)        (4,884)            --         47,316
                                                          --------       --------       --------       --------

Investing activities:

 Capital expenditures for property and equipment              (881)       (23,563)            --        (35,824)
 Proceeds from sales of assets                                  --         17,870             --         25,150
 Net payments from (advances to) Interstate Hotels &
  Resorts                                                     (678)          (678)            --         (7,000)
 (Increase) decrease in restricted cash                         --             --             --          4,861
 Other, net                                                     --             --             --             --
                                                          --------       --------       --------       --------
   Net cash provided by (used in) investing activities      (1,559)        (6,371)            --        (12,813)
                                                          --------       --------       --------       --------

Financing activities:

 Principal payments on long-term debt                           --             --             --       (313,618)
 Proceeds from issuance of long-term debt                   13,500         13,500             --        283,138
 Deferred financing fees                                        --             --             --         (3,416)
 Contributions from partners                                    --             --             --          3,156
 Distributions paid to partners                                 --             --             --         (2,467)
                                                                --             --             --             --
                                                          --------       --------       --------       --------
   Net cash provided by (used in) financing activities      13,500         13,500             --        (33,207)
                                                          --------       --------       --------       --------

Effect of exchange rate changes on cash                         --             --             --             (9)
                                                          --------       --------       --------       --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS         2,246          2,245             --          1,287

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD              16,643         16,643             --         23,441
                                                          --------       --------       --------       --------
CASH AND CASH EQUIVALENTS, END OF PERIOD                    18,889         18,888             --         24,728
                                                          ========       ========       ========       ========
</TABLE>