<PAGE>
                                                                               .
                                                                               .
                                                                               .
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING BALANCE SHEET
MARCH 31, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                 MERISTAR        NON-        MERISTAR        AGH         MERISTAR
                                                               HOSPITALITY    GUARANTOR       SUB 7C        UPREIT,       SUB 5N,
                                                                 OP, L.P.    SUBSIDIARIES       LLC           LLC           LLC
                                                               -----------   ------------   -----------    ----------    ----------
<S>                                                            <C>            <C>            <C>           <C>           <C>
ASSETS
Investment in hotel properties                                     17,245      1,454,270             --            --         4,126
Accumulated depreciation                                           (9,807)      (231,789)            --            --          (576)
                                                               ----------     ----------     ----------    ----------    ----------
                                                                    7,438      1,222,481             --            --         3,550

Restricted cash                                                    17,162          4,744             --            --            --
Investments in and advances to affiliates                       2,580,119          8,200             32         3,056            --
Due from subsidiaries                                            (650,084)       240,273             --             7         3,757
Note receivable                                                   120,855             --             --            --            --
Prepaid expenses and other assets                                  16,884          1,477             --            --             9
Accounts receivable, net of allowance of doubtful accounts         12,991          1,241             --            --            --
Cash and cash equivalents                                          47,624             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
                                                                2,152,989      1,478,416             32         3,063         7,316
                                                               ==========     ==========     ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                    943,158        350,174             --            --            --
Notes payable to MeriStar Hospitality Corporation                 357,602             --             --            --            --
Accounts payable and accrued expenses                              19,677          4,598             --            --             5
Accrued interest                                                   36,918          3,475             --            --            --
Due to Interstate Hotels & Resorts                                    509             --             --            --            --
Other liabilities                                                   6,311           (600)            --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
Total liabilities                                               1,364,175        357,647             --            --             5
                                                               ----------     ----------     ----------    ----------    ----------

Minority interests                                                  2,635             --             --            --            --
Redeemable OP units at redemption value                            24,945             --             --            --            --
Partners' capital                                                 761,234      1,120,769             32         3,063         7,311
                                                               ----------     ----------     ----------    ----------    ----------
                                                                2,152,989      1,478,416             32         3,063         7,316
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                MERISTAR       MERISTAR      MERISTAR       MERISTAR      MERISTAR
                                                                 SUB 8A,        SUB 8F,       SUB 8G,        SUB 6H,       SUB 8B,
                                                                   LLC            LLC           LLC            L.P.          LLC
                                                               ----------     ----------    -----------    ----------    ----------
<S>                                                            <C>            <C>            <C>           <C>           <C>
ASSETS
Investment in hotel properties                                         --         11,479             --        13,636        82,475
Accumulated depreciation                                               --         (2,048)            --        (1,985)      (10,479)
                                                               ----------     ----------     ----------    ----------    ----------
                                                                       --          9,431             --        11,651        71,996

Restricted cash                                                        --            115             --            --            --
Investments in and advances to affiliates                              --             --             72            --            --
Due from subsidiaries                                               4,879          5,679              9         6,008        27,340
Note receivable                                                        --             --             --            --            --
Prepaid expenses and other assets                                      --             20             --             4            30
Accounts receivable, net of allowance of doubtful accounts            (17)           (28)            --            --            --
Cash and cash equivalents                                              --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
                                                                    4,862         15,217             81        17,663        99,366
                                                               ==========     ==========     ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                         --             --             --            --            --
Notes payable to MeriStar Hospitality Corporation                      --             --             --            --            --
Accounts payable and accrued expenses                                 (36)            86             --           190         2,601
Accrued interest                                                       --             --             --            --            --
Due to Interstate Hotels & Resorts                                     --             --             --            --            --
Other liabilities                                                     (96)            --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
Total liabilities                                                    (132)            86             --           190         2,601
                                                               ----------     ----------     ----------    ----------    ----------

Minority interests                                                     --             --             --            --            --
Redeemable OP units at redemption value                                --             --             --            --            --
Partners' capital                                                   4,994         15,131             81        17,473        96,765
                                                               ----------     ----------     ----------    ----------    ----------
                                                                    4,862         15,217             81        17,663        99,366
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>

<PAGE>

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

<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 1C,       SUB 8E,        SUB 7F,       SUB 5L,       SUB 3C,
                                                                    L.P.          LLC            LLC           LLC           LLC
                                                               ----------     ----------     ----------    ----------    ----------
<S>                                                            <C>            <C>            <C>           <C>           <C>
ASSETS
Investment in hotel properties                                     25,358         15,339         12,075        11,596        17,387
Accumulated depreciation                                           (5,139)        (2,587)        (2,567)         (538)       (3,173)
                                                               ----------     ----------     ----------    ----------    ----------
                                                                   20,219         12,752          9,508        11,058        14,214

Restricted cash                                                        --             --             --            --            --
Investments in and advances to affiliates                              --             --             --            --            --
Due from subsidiaries                                              (2,846)         5,820          4,542         3,953         4,482
Note receivable                                                        --             --             --            --            --
Prepaid expenses and other assets                                      72              6              4            24            51
Accounts receivable, net of allowance of doubtful accounts              4             --             --           (20)           --
Cash and cash equivalents                                              --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
                                                                   17,449         18,578         14,054        15,015        18,747
                                                               ==========     ==========     ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                         --             --             --            --            --
Notes payable to MeriStar Hospitality Corporation                      --             --             --            --            --
Accounts payable and accrued expenses                                 162            (71)           191            13           290
Accrued interest                                                       --             --             --            --            --
Due to Interstate Hotels & Resorts                                     --             --             --            --            --
Other liabilities                                                      --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
Total liabilities                                                     162            (71)           191            13           290
                                                               ----------     ----------     ----------    ----------    ----------

Minority interests                                                     --             --             --            --            --
Redeemable OP units at redemption value                                --             --             --            --            --
Partners' capital                                                  17,287         18,649         13,863        15,002        18,457
                                                               ----------     ----------     ----------    ----------    ----------
                                                                   17,449         18,578         14,054        15,015        18,747
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>

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

ASSETS
Investment in hotel properties                                         --         17,430         44,595        24,830        18,430
Accumulated depreciation                                               --         (2,483)        (8,748)       (4,196)       (3,672)
                                                               ----------     ----------     ----------    ----------    ----------
                                                                       --         14,947         35,847        20,634        14,758

Restricted cash                                                        --             --             --            --            --
Investments in and advances to affiliates                              43             --             --            --            --
Due from subsidiaries                                                 (43)         7,043         19,078         2,535        13,458
Note receivable                                                        --             --             --            --            --
Prepaid expenses and other assets                                      --              4             18            15            21
Accounts receivable, net of allowance of doubtful accounts             --            108             --            --            96
Cash and cash equivalents                                              --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
                                                                       --         22,102         54,943        23,184        28,333
                                                               ==========     ==========     ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                         --             --             --            --            37
Notes payable to MeriStar Hospitality Corporation                      --             --             --            --            --
Accounts payable and accrued expenses                                  --            (64)          (176)           57            68
Accrued interest                                                       --             --             --            --            --
Due to Interstate Hotels & Resorts                                     --             --             --            --            --
Other liabilities                                                      --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
Total liabilities                                                      --            (64)          (176)           57           105
                                                               ----------     ----------     ----------    ----------    ----------

Minority interests                                                     --             --             --            --            --
Redeemable OP units at redemption value                                --             --             --            --            --
Partners' capital                                                      --         22,166         55,119        23,127        28,228
                                                               ----------     ----------     ----------    ----------    ----------
                                                                       --         22,102         54,943        23,184        28,333
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>


<PAGE>


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

<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 5F,       SUB 6G,        SUB 8C,       SUB 4C,       SUB 4H,
                                                                    L.P.          LLC            LLC           L.P.          L.P.
                                                               ----------     ----------     ----------    ----------    ----------
<S>                                                            <C>            <C>            <C>           <C>           <C>
ASSETS
Investment in hotel properties                                     31,565         22,389          7,081            --        12,496
Accumulated depreciation                                           (4,688)        (4,381)            --            --        (2,385)
                                                               ----------     ----------     ----------    ----------    ----------
                                                                   26,877         18,008          7,081            --        10,111

Restricted cash                                                        --             --             --            --            --
Investments in and advances to affiliates                              --             --             --            --            --
Due from subsidiaries                                              11,019          5,537          4,587        11,503          (856)
Note receivable                                                        --             --             --            --            --
Prepaid expenses and other assets                                      43              7             13            --            17
Accounts receivable, net of allowance of doubtful accounts             --             --             --             1            --
Cash and cash equivalents                                              --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
                                                                   37,939         23,552         11,681        11,504         9,272
                                                               ==========     ==========     ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                         --             --             --            --            --
Notes payable to MeriStar Hospitality Corporation                      --             --             --            --            --
Accounts payable and accrued expenses                                 155             37           (375)          130            77
Accrued interest                                                       --             --             --            --            --
Due to Interstate Hotels & Resorts                                     --             --             --            --            --
Other liabilities                                                      --             --             --           (32)           --
                                                               ----------     ----------     ----------    ----------    ----------
Total liabilities                                                     155             37           (375)           98            77
                                                               ----------     ----------     ----------    ----------    ----------

Minority interests                                                     --             --             --            --            --
Redeemable OP units at redemption value                                --             --             --            --            --
Partners' capital                                                  37,784         23,515         12,056        11,406         9,195
                                                               ----------     ----------     ----------    ----------    ----------
                                                                   37,939         23,552         11,681        11,504         9,272
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR   MERISTAR SUB
                                                                  SUB 7E,       SUB 3D,        SUB 1A,       SUB 5E,     7A JOINT
                                                                    LLC.          LLC            LLC           LLC.      VENTURE
                                                               ----------     ----------     ----------    ----------  ------------
<S>                                                            <C>            <C>            <C>           <C>           <C>
ASSETS
Investment in hotel properties                                     17,981         22,558         11,328        52,888        13,182
Accumulated depreciation                                           (2,866)        (6,458)        (2,590)       (8,637)       (1,869)
                                                               ----------     ----------     ----------    ----------    ----------
                                                                   15,115         16,100          8,738        44,251        11,313

Restricted cash                                                        --             --             --            --            --
Investments in and advances to affiliates                              --             --             --            --            --
Due from subsidiaries                                               6,062          7,699          6,479        15,393         4,468
Note receivable                                                        --             --             --            --            --
Prepaid expenses and other assets                                       7              9             33            11            13
Accounts receivable, net of allowance of doubtful accounts             --             --             --            --            --
Cash and cash equivalents                                              --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
                                                                   21,184         23,808         15,250        59,655        15,794
                                                               ==========     ==========     ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                         --             --             --            --            --
Notes payable to MeriStar Hospitality Corporation                      --             --             --            --            --
Accounts payable and accrued expenses                                  56             66             70           251           154
Accrued interest                                                       --             --             --            --            --
Due to Interstate Hotels & Resorts                                     --             --             --            --            --
Other liabilities                                                      --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
Total liabilities                                                      56             66             70           251           154
                                                               ----------     ----------     ----------    ----------    ----------

Minority interests                                                     --             --             --            --            --
Redeemable OP units at redemption value                                --             --             --            --            --
Partners' capital                                                  21,128         23,742         15,180        59,404        15,640
                                                               ----------     ----------     ----------    ----------    ----------
                                                                   21,184         23,808         15,250        59,655        15,794
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>

<PAGE>

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

<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 6K,       SUB 2B,        SUB 3A,       SUB 4A,       SUB 4D,
                                                                    LLC.          LLC            LLC           LLC           LLC
                                                               ----------     ----------     ----------    ----------    ----------
<S>                                                            <C>            <C>            <C>           <C>           <C>
ASSETS
Investment in hotel properties                                     22,861          4,487          5,742         4,683         3,015
Accumulated depreciation                                           (4,482)            --           (320)           --            --
                                                               ----------     ----------     ----------    ----------    ----------
                                                                   18,379          4,487          5,422         4,683         3,015

Restricted cash                                                        --             --             --            --            --
Investments in and advances to affiliates                              --             --             --            --            --
Due from subsidiaries                                              17,673           (947)         1,577         4,031           (14)
Note receivable                                                        --             --             --            --            --
Prepaid expenses and other assets                                       2             12              5             7            24
Accounts receivable, net of allowance of doubtful accounts             --            (13)            --            --            --
Cash and cash equivalents                                              --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
                                                                   36,054          3,539          7,004         8,721         3,025
                                                               ==========     ==========     ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                         --          5,258             --            --            --
Notes payable to MeriStar Hospitality Corporation                      --             --             --            --            --
Accounts payable and accrued expenses                                  62             44            140           171           131
Accrued interest                                                       --             --             --            --            --
Due to Interstate Hotels & Resorts                                     --             --             --            --            --
Other liabilities                                                      --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
Total liabilities                                                      62          5,302            140           171           131
                                                               ----------     ----------     ----------    ----------    ----------

Minority interests                                                     --             --             --            --            --
Redeemable OP units at redemption value                                --             --             --            --            --
Partners' capital                                                  35,992         (1,763)         6,864         8,550         2,894
                                                               ----------     ----------     ----------    ----------    ----------
                                                                   36,054          3,539          7,004         8,721         3,025
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR          MDV        MERISTAR      MERISTAR
                                                                  SUB 2A,       SUB 6L,        LIMITED       SUB 5C,       SUB 6J,
                                                                    LLC.          LLC        PARTNERSHIP       LLC           LLC
                                                               ----------     ----------     ----------    ----------    ----------
<S>                                                            <C>            <C>            <C>           <C>           <C>
ASSETS
Investment in hotel properties                                      5,279         29,687          3,841         5,335        19,424
Accumulated depreciation                                               --         (3,577)          (581)           --        (3,363)
                                                               ----------     ----------     ----------    ----------    ----------
                                                                    5,279         26,110          3,260         5,335        16,061

Restricted cash                                                        --             --             --            --            --
Investments in and advances to affiliates                              --             --             --            --            --
Due from subsidiaries                                              (1,068)         5,219          2,200           206         6,312
Note receivable                                                        --             --             --            --            --
Prepaid expenses and other assets                                      31              7             16           102            47
Accounts receivable, net of allowance of doubtful accounts             --             --             --            --            --
Cash and cash equivalents                                              --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
                                                                    4,242         31,336          5,476         5,643        22,420
                                                               ==========     ==========     ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                      8,576             --             --            --            --
Notes payable to MeriStar Hospitality Corporation                      --             --             --            --            --
Accounts payable and accrued expenses                                  85             84             47           797          (141)
Accrued interest                                                       --             --             --            --            --
Due to Interstate Hotels & Resorts                                     --             --             --            --            --
Other liabilities                                                      --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
Total liabilities                                                   8,661             84             47           797          (141)
                                                               ----------     ----------     ----------    ----------    ----------

Minority interests                                                     --             --             --            --            --
Redeemable OP units at redemption value                                --             --             --            --            --
Partners' capital                                                  (4,419)        31,252          5,429         4,846        22,561
                                                               ----------     ----------     ----------    ----------    ----------
                                                                    4,242         31,336          5,476         5,643        22,420
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>

<PAGE>

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

<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 1D,       SUB 7B,        SUB 7D,       SUB 7G,       SUB 6B,
                                                                    L.P.          L.P.           LLC           LLC           LLC
                                                               ----------     ----------     ----------    ----------    ----------
<S>                                                            <C>            <C>            <C>           <C>           <C>
ASSETS
Investment in hotel properties                                     68,506          7,275         52,186         5,820        10,657
Accumulated depreciation                                          (10,321)            --         (8,543)           --        (1,857)
                                                               ----------     ----------     ----------    ----------    ----------
                                                                   58,185          7,275         43,643         5,820         8,800

Restricted cash                                                        --             --             --            --            --
Investments in and advances to affiliates                              --             --             --            --            --
Due from subsidiaries                                              17,270         (3,751)        22,446           105         2,614
Note receivable                                                        --             --             --            --            --
Prepaid expenses and other assets                                     111              7            306             6             3
Accounts receivable, net of allowance of doubtful accounts             --             --            783            --            --
Cash and cash equivalents                                              --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
                                                                   75,566          3,531         67,178         5,931        11,417
                                                               ==========     ==========     ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                         --             --             --            --            --
Notes payable to MeriStar Hospitality Corporation                      --             --             --            --            --
Accounts payable and accrued expenses                                 137            937          3,857           (33)          (52)
Accrued interest                                                       --             --             --            --            --
Due to Interstate Hotels & Resorts                                     --             --           (200)           --            --
Other liabilities                                                      --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
Total liabilities                                                     137            937          3,657           (33)          (52)
                                                               ----------     ----------     ----------    ----------    ----------

Minority interests                                                     --             --             --            --            --
Redeemable OP units at redemption value                                --             --             --            --            --
Partners' capital                                                  75,429          2,594         63,521         5,964        11,469
                                                               ----------     ----------     ----------    ----------    ----------
                                                                   75,566          3,531         67,178         5,931        11,417
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR         AGH
                                                                  SUB 4I,       SUB 5D,        SUB 5H,       SUB 7H,        PSS I,
                                                                    L.P.          LLC            LLC           LLC           INC.
                                                               ----------     ----------     ----------    ----------    ----------
<S>                                                            <C>            <C>            <C>           <C>           <C>
ASSETS
Investment in hotel properties                                      3,818         42,026         53,492         5,705        17,871
Accumulated depreciation                                              (73)        (7,010)        (8,494)          (51)       (2,049)
                                                               ----------     ----------     ----------    ----------    ----------
                                                                    3,745         35,016         44,998         5,654        15,822

Restricted cash                                                        --             --             --            --            --
Investments in and advances to affiliates                              --         51,368             --            --            --
Due from subsidiaries                                                 642         (7,014)         9,590         5,775        11,188
Note receivable                                                        --             --             --            --            --
Prepaid expenses and other assets                                       8             37             98             5            45
Accounts receivable, net of allowance of doubtful accounts             --             --             --            --            --
Cash and cash equivalents                                              --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
                                                                    4,395         79,407         54,686        11,434        27,055
                                                               ==========     ==========     ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                         --         24,000             --            13            --
Notes payable to MeriStar Hospitality Corporation                      --             --             --            --            --
Accounts payable and accrued expenses                                 232            191             70           122           106
Accrued interest                                                       --             --             --            --            --
Due to Interstate Hotels & Resorts                                     --             --             --            --            --
Other liabilities                                                      --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
Total liabilities                                                     232         24,191             70           135           106
                                                               ----------     ----------     ----------    ----------    ----------

Minority interests                                                     --             --             --            --            --
Redeemable OP units at redemption value                                --             --             --            --            --
Partners' capital                                                   4,163         55,216         54,616        11,299        26,949
                                                               ----------     ----------     ----------    ----------    ----------
                                                                    4,395         79,407         54,686        11,434        27,055
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>

<PAGE>

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

<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 2D,       SUB 4F,        SUB 5K,       SUB 5M,       SUB 1E,
                                                                    LLC           L.P.           LLC           LLC           L.P.
                                                               ----------     ----------     ----------    ----------    ----------
<S>                                                            <C>            <C>            <C>           <C>           <C>
ASSETS
Investment in hotel properties                                      6,229         32,146         28,097        22,030        10,466
Accumulated depreciation                                               --         (4,986)        (4,238)       (2,001)       (1,728)
                                                               ----------     ----------     ----------    ----------    ----------
                                                                    6,229         27,160         23,859        20,029         8,738

Restricted cash                                                        --             --             --            --            --
Investments in and advances to affiliates                              --             --             --            --            --
Due from subsidiaries                                                 346          4,318           (294)        7,049         7,654
Note receivable                                                        --             --             --            --            --
Prepaid expenses and other assets                                      13             13             40            20            12
Accounts receivable, net of allowance of doubtful accounts -           --             --             --            --
Cash and cash equivalents                                              --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
                                                                    6,588         31,491         23,605        27,098        16,404
                                                               ==========     ==========     ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                      9,937             --             --            --            --
Notes payable to MeriStar Hospitality Corporation                      --             --             --            --            --
Accounts payable and accrued expenses                                 (11)           132          4,291            44            19
Accrued interest                                                       --             --             --            --            --
Due to Interstate Hotels & Resorts                                     --             --             --            --            --
Other liabilities                                                      --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
Total liabilities                                                   9,926            132          4,291            44            19
                                                               ----------     ----------     ----------    ----------    ----------

Minority interests                                                     --             --             --            --            --
Redeemable OP units at redemption value                                --             --             --            --            --
Partners' capital                                                  (3,338)        31,359         19,314        27,054        16,385
                                                               ----------     ----------     ----------    ----------    ----------
                                                                    6,588         31,491         23,605        27,098        16,404
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 5O,       SUB 6M         SUB 4B,       SUB 6C,       SUB 2C,
                                                                    LLC         COMPANY          L.P.          LLC           LLC
                                                               ----------     ----------     ----------    ----------    ----------
<S>                                                            <C>            <C>            <C>           <C>           <C>
ASSETS
Investment in hotel properties                                      8,730         32,979          8,275        20,895        11,465
Accumulated depreciation                                             (973)        (5,081)          (136)       (3,786)           --
                                                               ----------     ----------     ----------    ----------    ----------
                                                                    7,757         27,898          8,139        17,109        11,465

Restricted cash                                                        --             --             --            --            --
Investments in and advances to affiliates                              --             --             --            --            --
Due from subsidiaries                                               2,691         16,755         (4,846)       10,716         5,132
Note receivable                                                        --             --             --            --            --
Prepaid expenses and other assets                                       8             23              9             7            32
Accounts receivable, net of allowance of doubtful accounts             --             --             --            --            --
Cash and cash equivalents                                              --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
                                                                   10,456         44,676          3,302        27,832        16,629
                                                               ==========     ==========     ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                         --             --             --            --        17,355
Notes payable to MeriStar Hospitality Corporation                      --             --             --            --            --
Accounts payable and accrued expenses                                   9            (59)           239          (149)          290
Accrued interest                                                       --             --             --            --            --
Due to Interstate Hotels & Resorts                                     --             --             --            --            --
Other liabilities                                                      --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
Total liabilities                                                       9            (59)           239          (149)       17,645
                                                               ----------     ----------     ----------    ----------    ----------

Minority interests                                                     --             --             --            --            --
Redeemable OP units at redemption value                                --             --             --            --            --
Partners' capital                                                  10,447         44,735          3,063        27,981        (1,016)
                                                               ----------     ----------     ----------    ----------    ----------
                                                                   10,456         44,676          3,302        27,832        16,629
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>

<PAGE>

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

<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 4G,       SUB 3B,        SUB 5G,       SUB 5P,       SUB 5J,
                                                                    L.P.          LLC            L.P.          LLC           LLC
                                                               ----------     ----------     ----------    ----------    ----------
<S>                                                            <C>            <C>            <C>           <C>           <C>
ASSETS
Investment in hotel properties                                     25,608          7,760        163,395            39       108,685
Accumulated depreciation                                           (4,235)            --        (25,785)          (20)      (14,204)
                                                               ----------     ----------     ----------    ----------    ----------
                                                                   21,373          7,760        137,610            19        94,481

Restricted cash                                                        --             --             --            --            --
Investments in and advances to affiliates                              --             --             --            --            --
Due from subsidiaries                                               7,374          2,541         37,857         2,162        18,420
Note receivable                                                        --             --             --            --            --
Prepaid expenses and other assets                                      55              7            145             6           147
Accounts receivable, net of allowance of doubtful accounts             --             --             --            --            --
Cash and cash equivalents                                              --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
                                                                   28,802         10,308        175,612         2,187       113,048
                                                               ==========     ==========     ==========    ==========    ==========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                         --             --             --            --            --
Notes payable to MeriStar Hospitality Corporation                      --             --             --            --            --
Accounts payable and accrued expenses                                 172            229            885             4           285
Accrued interest                                                       --             --             --            --            --
Due to Interstate Hotels & Resorts                                     --             --             --            --            --
Other liabilities                                                      --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
Total liabilities                                                     172            229            885             4           285
                                                               ----------     ----------     ----------    ----------    ----------

Minority interests                                                     --             --             --            --            --
Redeemable OP units at redemption value                                --             --             --            --            --
Partners' capital                                                  28,630         10,079        174,727         2,183       112,763
                                                               ----------     ----------     ----------    ----------    ----------
                                                                   28,802         10,308        175,612         2,187       113,048
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR     MERISTAR
                                                                  SUB 5Q,       SUB 5A,        SUB 8D,       SUB 4J,   HOTEL LESSEE,
                                                                    LLC           LLC            LLC           LLC          INC.
                                                               ----------     ----------     ----------    ----------  -------------
<S>                                                            <C>            <C>            <C>           <C>           <C>
ASSETS
Investment in hotel properties                                     16,598         35,041         30,817        38,166         2,248
Accumulated depreciation                                           (1,849)        (9,781)        (5,394)       (6,182)       (2,260)
                                                               ----------     ----------     ----------    ----------    ----------
                                                                   14,749         25,260         25,423        31,984           (12)

Restricted cash                                                        --             --             --            --            --
Investments in and advances to affiliates                              --          4,627             --            --         1,629
Due from subsidiaries                                               3,685          5,810          7,271         5,867        (2,343)
Note receivable                                                        --             --             --            --            --
Prepaid expenses and other assets                                      28             16              8            11        16,736
Accounts receivable, net of allowance of doubtful accounts             --             --             --           (16)       54,635
Cash and cash equivalents                                              --             --             --            --        17,857
                                                               ----------     ----------     ----------    ----------    ----------
                                                                   18,462         35,713         32,702        37,846        88,502
                                                               ==========     ==========     ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
Long-term debt                                                         --         23,609             --            --        33,646
Notes payable to MeriStar Hospitality Corporation                      --             --             --            --            --
Accounts payable and accrued expenses                                (151)            33           (133)           61        64,466
Accrued interest                                                       --             --             --            --           351
Due to Interstate Hotels & Resorts                                     --             --             --            --        10,284
Other liabilities                                                      --             --             --            --        12,265
                                                               ----------     ----------     ----------    ----------    ----------
Total liabilities                                                    (151)        23,642           (133)           61       121,012
                                                               ----------     ----------     ----------    ----------    ----------

Minority interests                                                     --             --             --            --            --
Redeemable OP units at redemption value                                --             --             --            --            --
Partners' capital                                                  18,613         12,071         32,835        37,785       (32,510)
                                                               ----------     ----------     ----------    ----------    ----------
                                                                   18,462         35,713         32,702        37,846        88,502
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>


<PAGE>

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

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

ASSETS
Investment in hotel properties                                 1,471,603             --      2,943,118
Accumulated depreciation                                        (225,425)            --       (467,021)
                                                              ----------     ----------     ----------
                                                               1,246,178             --      2,476,097
                                                              ----------     ----------     ----------
Restricted cash                                                      115             --         22,021
Investments in and advances to affiliates                         60,827     (2,607,432)        41,714
Due from subsidiaries                                            409,811             --             --
Note receivable                                                       --       (120,855)            --
Prepaid expenses and other assets                                 18,646             --         37,007
Accounts receivable, net of allowance of doubtful accounts        55,533             --         69,765
Cash and cash equivalents                                         17,857             --         65,481
                                                              ----------     ----------     ----------
                                                               1,808,967     (2,728,287)     2,712,085
                                                              ==========     ==========     ==========

LIABILITIES AND PARTNERS' CAPITAL                                     --                            --
Long-term debt                                                   122,431       (120,855)     1,294,908
Notes payable to MeriStar Hospitality Corporation                     --             --        357,602
Accounts payable and accrued expenses                             81,580             --        105,855
Accrued interest                                                     351             --         40,744
Due to Interstate Hotels & Resorts                                10,084             --         10,593
Other liabilities                                                 12,137             --         17,848
                                                              ----------     ----------     ----------
Total liabilities                                                226,583       (120,855)     1,827,550
                                                              ----------     ----------     ----------
Minority interests                                                    --             --          2,635
Redeemable OP units at redemption value                               --             --         24,945
Partners' capital                                              1,582,384     (2,607,432)       856,955
                                                              ----------     ----------     ----------
                                                               1,808,967     (2,728,287)     2,712,085
                                                              ==========     ==========     ==========
</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>
ASSETS
   Investments in hotel properties                                 16,986      1,467,405             --            --         4,117
   Accumulated depreciation                                        (8,686)      (220,927)            --            --          (541)
                                                               ----------     ----------     ----------    ----------    ----------
                                                                    8,300      1,246,478             --            --         3,576

   Restricted cash                                                 15,374          4,876             --            --            --
   Investments in and ances to affiliates                       2,590,429          8,200             32         3,056            --
   Due from subsidiaries                                         (595,139)       196,324             --            66         3,522
   Note receivable from Interstate Hotels & Resorts               150,657             --             --            --            --
   Prepaid expenses and other assets                               22,457            304             --            --            --
   Accounts receivable, net of allowance for doubtful accounts     11,944          1,313             --            --            --
   Cash and cash equivalents                                       21,372             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
Total Assets                                                    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
                                                               ----------     ----------     ----------    ----------    ----------
Total Liabilities and Capital                                   2,225,394      1,457,495             32         3,122         7,098
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>

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

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

<PAGE>

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

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

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

<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR     MERISTAR
                                                                  SUB 5B,       SUB 8A,        SUB 6D,       SUB 6E,      SUB 4E,
                                                                    LLC           LLC            LLC           LLC          L.P.
                                                               ----------     ----------     ----------    ----------  -------------
<S>                                                            <C>            <C>            <C>           <C>           <C>
ASSETS
   Investments in hotel properties                                     --             --         17,430        44,495        24,741
   Accumulated depreciation                                            --             --         (2,347)       (8,334)       (3,986)
                                                               ----------     ----------     ----------    ----------    ----------
                                                                       --             --         15,083        36,161        20,755

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

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

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


<PAGE>

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

<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR     MERISTAR
                                                                  SUB 1B,       SUB 5F,        SUB 6G,       SUB 8C,      SUB 4C,
                                                                    LLC           L.P.           LLC           LLC          L.P.
                                                               ----------     ----------     ----------    ----------  -------------
<S>                                                            <C>            <C>            <C>           <C>           <C>
ASSETS
   Investments in hotel properties                                 18,416         31,539         22,381        11,400            --
   Accumulated depreciation                                        (3,529)        (4,421)        (4,166)           --            --
                                                               ----------     ----------     ----------    ----------    ----------
                                                                   14,887         27,118         18,215        11,400            --

   Restricted cash                                                     --             --             --            --            --
   Investments in and advances to affiliates                           --             --             --            --            --
   Due from subsidiaries                                           12,954         10,473          5,200         4,587        11,521
   Note receivable from Interstate Hotels & Resorts                    --             --             --            --            --
   Prepaid expenses and other assets                                    1              5             --             1            --
   Accounts receivable, net of allowance for doubtful accounts         96             --             --            --             1
   Cash and cash equivalents                                           --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
Total Assets                                                       27,938         37,596         23,415        15,988        11,522
                                                               ==========     ==========     ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
   Long-term debt                                                      48             --             --            --            --
   Notes payable to MeriStar Hospitality Corporation                   --             --             --            --            --
   Accounts payable and accrued expenses                               51            170            108           (77)           98
   Accrued interest                                                    --             --             --            --            --
   Due to Interstate Hotels & Resorts                                  --             --             --            --            --
   Other liabilities                                                   --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
      Total liabilities                                                99            170            108           (77)           98
                                                               ----------     ----------     ----------    ----------    ----------

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

<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR     MERISTAR
                                                                  SUB 4H,       SUB 7E,        SUB 3D,       SUB 1A,      SUB 5E,
                                                                    L.P.          LLC            LLC           LLC          LLC
                                                               ----------     ----------     ----------    ----------  -------------
<S>                                                            <C>            <C>            <C>           <C>           <C>
ASSETS
   Investments in hotel properties                                 12,462         17,972         22,549        11,318        52,868
   Accumulated depreciation                                        (2,253)        (2,711)        (6,261)       (2,478)       (8,155)
                                                               ----------     ----------     ----------    ----------    ----------
                                                                   10,209         15,261         16,288         8,840        44,713

   Restricted cash                                                     --             --             --            --            --
   Investments in and advances to affiliates                           --             --             --            --            --
   Due from subsidiaries                                             (738)         5,820          7,409         6,231        14,226
   Note receivable from Interstate Hotels & Resorts                    --             --             --            --            --
   Prepaid expenses and other assets                                   14              3             --            --             1
   Accounts receivable, net of allowance for doubtful accounts         --             --             --            --            --
   Cash and cash equivalents                                           --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
Total Assets                                                        9,485         21,084         23,697        15,071        58,940
                                                               ==========     ==========     ==========    ==========    ==========

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

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

<PAGE>

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

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

   Restricted cash                                                     --             --             --            --            --
   Investments in and advances to affiliates                           --             --             --            --            --
   Due from subsidiaries                                            4,352         16,890           (804)        1,500         4,097
   Note receivable from Interstate Hotels & Resorts                    --             --             --            --            --
   Prepaid expenses and other assets                                    5             --              1            --            --
   Accounts receivable, net of allowance for doubtful accounts         --             --            (12)           --            --
   Cash and cash equivalents                                           --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
Total Assets                                                       15,757         35,449          6,872         6,986         8,714
                                                               ==========     ==========     ==========    ==========    ==========

LIABILITIES AND PARTNERS' CAPITAL
   Long-term debt                                                      --             --          4,890            --            --
   Notes payable to MeriStar Hospitality Corporation                   --             --             --            --            --
   Accounts payable and accrued expenses                              218            122             75           163           346
   Accrued interest                                                    --             --             --            --            --
   Due to Interstate Hotels & Resorts                                  --             --             --            --            --
   Other liabilities                                                   --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
      Total liabilities                                               218            122          4,965           163           346
                                                               ----------     ----------     ----------    ----------    ----------

   Minority interests                                                  --             --             --            --            --
   Redeemable OP units at redemption value                             --             --             --            --            --
   Partners' capital - Common OP Units                             15,539         35,327          1,907         6,823         8,368
                                                               ----------     ----------     ----------    ----------    ----------
Total Liabilities and Capital                                      15,757         35,449          6,872         6,986         8,714
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>

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

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

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

   Minority interests                                                  --             --             --            --            --
   Redeemable OP units at redemption value                             --             --             --            --            --
   Partners' capital - Common OP Units                              3,872         (2,075)        31,173         5,374        10,722
                                                               ----------     ----------     ----------    ----------    ----------
Total Liabilities and Capital                                       3,984          5,967         31,224         5,469        11,588
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>

<PAGE>

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

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

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

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

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


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

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

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

   Minority interests                                                  --             --             --            --            --
   Redeemable OP units at redemption value                             --             --             --            --            --
   Partners' capital - Common OP Units                             11,424          4,284         55,521        54,060        11,174
                                                               ----------     ----------     ----------    ----------    ----------
Total Liabilities and Capital                                      11,329          4,695         79,727        54,206        11,454
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>


<PAGE>

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

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

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

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

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

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

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

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

      Minority interests                                               --             --             --            --            --
      Redeemable OP units at redemption value                          --             --             --            --            --
      Partners' capital - Common OP Units                          16,150         10,290         44,210         3,230        27,580
                                                               ----------     ----------     ----------    ----------    ----------
Total Liabilities and Capital                                      16,163         10,297         44,093         3,673        27,438
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>


<PAGE>

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

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

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

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

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


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

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

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

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


<PAGE>

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

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

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

                                                                     -----------     -----------     -----------     -----------
Total Assets                                                              77,584       1,837,441      (2,726,348)    $ 2,793,982
                                                                     ===========     ===========     ===========     ===========

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

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


<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                MERISTAR          NON-        MERISTAR        AGH         MERISTAR
                                                              HOSPITALITY      GUARANTOR       SUB 7C,       UPREIT,       SUB 5N,
                                                                OP, L.P.     SUBSIDIARIES        LLC          LLC           LLC
                                                              -----------    ------------    ----------    ----------    ----------
<S>                                                            <C>            <C>            <C>           <C>           <C>
Revenue:
    Hotel operations:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other hotel operations                                           --             --             --            --            --
    Office rental, parking and other revenue                        2,053            563             --            --            --
    Participating lease revenue                                        --         32,050             --            --           281
                                                               ----------     ----------     ----------    ----------    ----------
Total revenue                                                       2,053         32,613             --            --           281
                                                               ----------     ----------     ----------    ----------    ----------

Hotel operating expenses:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other operating departments                                      --             --             --            --            --
      Office rental, parking and other operating expenses              --            300             --            --            --
Other operating expenses:
      Administrative and general                                    2,919             --             --            --            --
      Property operating costs                                         --             --             --            --            --
      Depreciation and amortization                                 2,214         12,792             --            --            34
      Loss on asset impairments                                        --          3,975             --            --            --
      Property taxes, insurance and other                             642          5,400             --            --            27
                                                               ----------     ----------     ----------    ----------    ----------
Operating expenses                                                  5,775         22,467             --            --            61
                                                               ----------     ----------     ----------    ----------    ----------

Operating (loss) income                                            (3,722)        10,146             --            --           220
Interest expense, net                                              25,545          6,994             --            --            --
Equity in income from consolidated entities                        44,064             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Income (loss) before minority interests and income tax benefit    (73,331)         3,152             --            --           220
Minority interests                                                    (11)            --             --            --            --
Income tax benefit                                                    144             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
Net (loss) income                                                 (73,198)         3,152             --            --           220
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR     MERISTAR
                                                                  SUB 8A,       SUB 8F,        SUB 8G,       SUB 6H,      SUB 8B,
                                                                    LLC           L.P.           LLC           L.P.         LLC
                                                               ----------     ----------     ----------    ----------  -------------
<S>                                                            <C>            <C>            <C>           <C>           <C>
Revenue:
    Hotel operations:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other hotel operations                                           --             --             --            --            --
    Office rental, parking and other revenue                           --             --             --            --            --
    Participating lease revenue                                        --            586             --           256         1,818
                                                               ----------     ----------     ----------    ----------    ----------
Total revenue                                                          --            586             --           256         1,818
                                                               ----------     ----------     ----------    ----------    ----------

Hotel operating expenses:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other operating departments                                      --             --             --            --            --
      Office rental, parking and other operating expenses              --             --             --            --            --
Other operating expenses:
      Administrative and general                                       --             --             --            --            --
      Property operating costs                                         --             --             --            --            --
      Depreciation and amortization                                    --            115             --           108           610
      Loss on asset impairments                                        --             --             --            --            --
      Property taxes, insurance and other                              --            146             --            24           346
                                                               ----------     ----------     ----------    ----------    ----------
Operating expenses                                                     --            261             --           132           956
                                                               ----------     ----------     ----------    ----------    ----------

Operating (loss) income                                                --            325             --           124           862
Interest expense, net                                                  --             --             --            --            --
Equity in income from consolidated entities                            --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Income (loss) before minority interests and income tax benefit         --            325             --           124           862
Minority interests                                                     --             --             --            --            --
Income tax benefit                                                     --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Net (loss) income                                                      --            325             --           124           862
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>

<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR     MERISTAR
                                                                  SUB 1C,       SUB 8E,        SUB 7F,       SUB 5L,      SUB 3C,
                                                                    L.P.          LLC            LLC           LLC          LLC
                                                               ----------     ----------     ----------    ----------  -------------
<S>                                                            <C>            <C>            <C>           <C>           <C>
Revenue:
    Hotel operations:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other hotel operations                                           --             --             --            --            --
    Office rental, parking and other revenue                           --              5             --            --            --
    Participating lease revenue                                       526            362            226           319           594
                                                               ----------     ----------     ----------    ----------    ----------
Total revenue                                                         526            367            226           319           594
                                                               ----------     ----------     ----------    ----------    ----------

Hotel operating expenses:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other operating departments                                      --             --             --            --            --
      Office rental, parking and other operating expenses              --             --             --            --            --
Other operating expenses:
      Administrative and general                                       --             --             --            --            --
      Property operating costs                                         --             --             --            --            --
      Depreciation and amortization                                   254            146            115            34           179
      Loss on asset impairments                                        --             --             --            --            --
      Property taxes, insurance and other                             242             54             40            24            98
                                                               ----------     ----------     ----------    ----------    ----------
Operating expenses                                                    496            200            155            58           277
                                                               ----------     ----------     ----------    ----------    ----------

Operating (loss) income                                                30            167             71           261           317
Interest expense, net                                                  --             --             --             2            --
Equity in income from consolidated entities                            --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Income (loss) before minority interests and income tax benefit         30            167             71           259           317
Minority interests                                                     --             --             --            --            --
Income tax benefit                                                     --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Net (loss) income                                                      30            167             71           259           317
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR     MERISTAR
                                                                  SUB 5H,       SUB 6D,        SUB 6E,       SUB 4E,      SUB 1B,
                                                                    LLC           LLC            LLC           L.P.         LLC
                                                               ----------     ----------     ----------    ----------  -------------
<S>                                                            <C>            <C>            <C>           <C>           <C>
Revenue:
    Hotel operations:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other hotel operations                                           --             --             --            --            --
    Office rental, parking and other revenue                           --              4             --             1            --
    Participating lease revenue                                        --            432          1,308           351           590
                                                               ----------     ----------     ----------    ----------    ----------
Total revenue                                                          --            436          1,308           352           590
                                                               ----------     ----------     ----------    ----------    ----------

Hotel operating expenses:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other operating departments                                      --             --             --            --            --
      Office rental, parking and other operating expenses              --             --             --            --            --
Other operating expenses:
      Administrative and general                                       --             --             --            --            --
      Property operating costs                                         --             --             --            --            --
      Depreciation and amortization                                    --            137            414           211           143
      Loss on asset impairments                                        --             --             --            --            --
      Property taxes, insurance and other                              --             79            161           111            46
                                                               ----------     ----------     ----------    ----------    ----------
Operating expenses                                                     --            216            575           322           189
                                                               ----------     ----------     ----------    ----------    ----------

Operating (loss) income                                                --            220            733            30           401
Interest expense, net                                                  --             --             --            --            10
Equity in income from consolidated entities                            --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Income (loss) before minority interests and income tax benefit         --            220            733            30           391
Minority interests                                                     --             --             --            --            --
Income tax benefit                                                     --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Net (loss) income                                                      --            220            733            30           391
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>

<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR     MERISTAR
                                                                  SUB 5F,       SUB 6G,        SUB 8C,       SUB 4C,      SUB 4H,
                                                                    L.P.          LLC            LLC           L.P.         L.P.
                                                               ----------     ----------     ----------    ----------  -------------
<S>                                                            <C>            <C>            <C>           <C>           <C>
Revenue:
    Hotel operations:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other hotel operations                                           --             --             --            --            --
    Office rental, parking and other revenue                           --             --              1            --            --
    Participating lease revenue                                       726            516            500            --            63
                                                               ----------     ----------     ----------    ----------    ----------
Total revenue                                                         726            516            501            --            63
                                                               ----------     ----------     ----------    ----------    ----------

Hotel operating expenses:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other operating departments                                      --             --             --            --            --
      Office rental, parking and other operating expenses              --             --             --            --            --
Other operating expenses:
      Administrative and general                                       --             --             --            --            --
      Property operating costs                                         --             --             --            --            --
      Depreciation and amortization                                   267            215            200            --           132
      Loss on asset impairments                                        --             --          4,127            --            --
      Property taxes, insurance and other                              99             88            173            --            45
                                                               ----------     ----------     ----------    ----------    ----------
Operating expenses                                                    366            303          4,500            --           177
                                                               ----------     ----------     ----------    ----------    ----------

Operating (loss) income                                               360            213         (3,999)           --          (114)
Interest expense, net                                                  --             --             --            --            --
Equity in income from consolidated entities                            --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Income (loss) before minority interests and income tax benefit        360            213         (3,999)           --          (114)
Minority interests                                                     --             --             --            --            --
Income tax benefit                                                     --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Net (loss) income                                                     360            213         (3,999)           --          (114)
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>


<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR   MERISTAR SUB
                                                                  SUB 7E,       SUB 3D,        SUB 1A,       SUB 5E,     7A JOINT
                                                                    LLC           LLC            LLC           LLC       VENTURE
                                                               ----------     ----------     ----------    ----------  -------------
<S>                                                            <C>            <C>            <C>           <C>           <C>
Revenue:
    Hotel operations:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other hotel operations                                           --             --             --            --            --
    Office rental, parking and other revenue                           --             --             --            --            --
    Participating lease revenue                                       336            374            449         1,242           271
                                                               ----------     ----------     ----------    ----------    ----------
Total revenue                                                         336            374            449         1,242           271
                                                               ----------     ----------     ----------    ----------    ----------

Hotel operating expenses:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other operating departments                                      --             --             --            --            --
      Office rental, parking and other operating expenses              --             --             --            --            --
Other operating expenses:
      Administrative and general                                       --             --             --            --            --
      Property operating costs                                         --             --             --            --            --
      Depreciation and amortization                                   155            197            113           484           107
      Loss on asset impairments                                        --             --             --            --            --
      Property taxes, insurance and other                              49             59            105           101            63
                                                               ----------     ----------     ----------    ----------    ----------
Operating expenses                                                    204            256            218           585           170
                                                               ----------     ----------     ----------    ----------    ----------

Operating (loss) income                                               132            118            231           657           101
Interest expense, net                                                  --             --             --            --            --
Equity in income from consolidated entities                            --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Income (loss) before minority interests and income tax benefit        132            118            231           657           101
Minority interests                                                     --             --             --            --            --
Income tax benefit                                                     --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Net (loss) income                                                     132            118            231           657           101
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>

<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR     MERISTAR
                                                                  SUB 6K,       SUB 2B,        SUB 3A,       SUB 4A,      SUB 4D,
                                                                    LLC           LLC            LLC           LLC          LLC
                                                               ----------     ----------     ----------    ----------   -----------
<S>                                                            <C>            <C>            <C>           <C>           <C>
Revenue:
    Hotel operations:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other hotel operations                                           --             --             --            --            --
    Office rental, parking and other revenue                           --             --             --            --            --
    Participating lease revenue                                       952            102            136           255           120
                                                               ----------     ----------     ----------    ----------    ----------
Total revenue                                                         952            102            136           255           120
                                                               ----------     ----------     ----------    ----------    ----------

Hotel operating expenses:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other operating departments                                      --             --             --            --            --
      Office rental, parking and other operating expenses              --             --             --            --            --
Other operating expenses:
      Administrative and general                                       --             --             --            --            --
      Property operating costs                                         --             --             --            --            --
      Depreciation and amortization                                   186            113             66            --            55
      Loss on asset impairments                                        --          3,680             --            --         1,004
      Property taxes, insurance and other                              95             34             26            64            30
                                                               ----------     ----------     ----------    ----------    ----------
Operating expenses                                                    281          3,827             92            64         1,089
                                                               ----------     ----------     ----------    ----------    ----------

Operating (loss) income                                               671         (3,725)            44           191          (969)
Interest expense, net                                                  --            110             --            --            --
Equity in income from consolidated entities                            --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Income (loss) before minority interests and income tax benefit        671         (3,835)            44           191          (969)
Minority interests                                                     --             --             --            --            --
Income tax benefit                                                     --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Net (loss) income                                                     671         (3,835)            44           191          (969)
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>


<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR         MDV        MERISTAR     MERISTAR
                                                                  SUB 2A,       SUB 6L,       LIMITED        SUB 5C,      SUB 6J,
                                                                    LLC           LLC       PARTNERSHIP       LLC          LLC
                                                               ----------     ----------    -----------   ----------   -----------
<S>                                                            <C>            <C>            <C>           <C>           <C>
Revenue:
    Hotel operations:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other hotel operations                                           --             --             --            --            --
    Office rental, parking and other revenue                           --             --             --            --            --
    Participating lease revenue                                       111            355            126           210           462
                                                               ----------     ----------     ----------    ----------    ----------
Total revenue                                                         111            355            126           210           462
                                                               ----------     ----------     ----------    ----------    ----------

Hotel operating expenses:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other operating departments                                      --             --             --            --            --
      Office rental, parking and other operating expenses              --             --             --            --            --
Other operating expenses:
      Administrative and general                                       --             --             --            --            --
      Property operating costs                                         --             --             --            --            --
      Depreciation and amortization                                    84            222             35           153           158
      Loss on asset impairments                                     1,981             --             --         5,840            --
      Property taxes, insurance and other                              44             55             34            95            65
                                                               ----------     ----------     ----------    ----------    ----------
Operating expenses                                                  2,109            277             69         6,088           223
                                                               ----------     ----------     ----------    ----------    ----------

Operating (loss) income                                            (1,998)            78             57        (5,878)          239
Interest expense, net                                                 179             --             --            --            (1)
Equity in income from consolidated entities                            --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Income (loss) before minority interests and income tax benefit     (2,177)            78             57        (5,878)          240
Minority interests                                                     --             --             --            --            --
Income tax benefit                                                     --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Net (loss) income                                                  (2,177)            78             57        (5,878)          240
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>

<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR     MERISTAR
                                                                  SUB 1D,       SUB 7B,        SUB 7D,       SUB 7G,      SUB 6B,
                                                                    L.P.          L.P.           LLC           LLC          LLC
                                                               ----------     ----------     ----------    ----------   -----------
<S>                                                            <C>            <C>            <C>           <C>           <C>
Revenue:
    Hotel operations:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other hotel operations                                           --             --             --            --            --
    Office rental, parking and other revenue                           79             --            358            --            --
    Participating lease revenue                                     1,188            401          1,425           150           225
                                                               ----------     ----------     ----------    ----------    ----------
Total revenue                                                       1,267            401          1,783           150           225
                                                               ----------     ----------     ----------    ----------    ----------

Hotel operating expenses:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other operating departments                                      --             --             --            --            --
      Office rental, parking and other operating expenses              42             --            201            --            --
Other operating expenses:
      Administrative and general                                       --             --             --            --            --
      Property operating costs                                         --             --             --            --            --
      Depreciation and amortization                                   578            181            421           178           116
      Loss on asset impairments                                        --          7,894             --         6,549            --
      Property taxes, insurance and other                             387            182            561            53            50
                                                               ----------     ----------     ----------    ----------    ----------
Operating expenses                                                  1,007          8,257          1,183         6,780           166
                                                               ----------     ----------     ----------    ----------    ----------

Operating (loss) income                                               260         (7,856)           600        (6,630)           59
Interest expense, net                                                  --             --             --            --            --
Equity in income from consolidated entities                            --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Income (loss) before minority interests and income tax benefit        260         (7,856)           600        (6,630)           59
Minority interests                                                     --             --             --            --            --
Income tax benefit                                                     --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Net (loss) income                                                     260         (7,856)           600        (6,630)           59
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR        AGH
                                                                  SUB 4L,       SUB 5D,        SUB 5H,       SUB 7H,       PSS I,
                                                                    L.P.          LLC            LLC           LLC          INC.
                                                               ----------     ----------     ----------    ----------   -----------
<S>                                                            <C>            <C>            <C>           <C>           <C>
Revenue:
    Hotel operations:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other hotel operations                                           --             --             --            --            --
    Office rental, parking and other revenue                           --             --             --            --            --
    Participating lease revenue                                        20            475          1,284           323           585
                                                               ----------     ----------     ----------    ----------    ----------
Total revenue                                                          20            475          1,284           323           585
                                                               ----------     ----------     ----------    ----------    ----------

Hotel operating expenses:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other operating departments                                      --             --             --            --            --
      Office rental, parking and other operating expenses              --             --             --            --            --
Other operating expenses:
      Administrative and general                                       --             --             --            --            --
      Property operating costs                                         --             --             --            --            --
      Depreciation and amortization                                    73            365            505            51            --
      Loss on asset impairments                                        --             --             --            --            --
      Property taxes, insurance and other                              58             58            217           126           135
                                                               ----------     ----------     ----------    ----------    ----------
Operating expenses                                                    131            423            722           177           135
                                                               ----------     ----------     ----------    ----------    ----------

Operating (loss) income                                              (111)            52            562           146           450
Interest expense, net                                                  --            328             --            --            --
Equity in income from consolidated entities                            --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Income (loss) before minority interests and income tax benefit       (111)          (276)           562           146           450
Minority interests                                                     --             --             --            --            --
Income tax benefit                                                     --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Net (loss) income                                                    (111)          (276)           562           146           450
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>


<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR     MERISTAR
                                                                  SUB 2D,       SUB 4F,        SUB 5K,       SUB 5M,      SUB 1E,
                                                                    LLC           L.P.           LLC           LLC          L.P.
                                                               ----------     ----------     ----------    ----------   -----------
<S>                                                            <C>            <C>            <C>           <C>           <C>
Revenue:
    Hotel operations:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other hotel operations                                           --             --             --            --            --
    Office rental, parking and other revenue                           --              3             --            --            --
    Participating lease revenue                                       225            526            627           547           360
                                                               ----------     ----------     ----------    ----------    ----------
Total revenue                                                         225            529            627           547           360
                                                               ----------     ----------     ----------    ----------    ----------

Hotel operating expenses:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other operating departments                                      --             --             --            --            --
      Office rental, parking and other operating expenses              --             --             --            --            --
Other operating expenses:
      Administrative and general                                       --             --             --            --            --
      Property operating costs                                         --             --             --            --            --
      Depreciation and amortization                                   127            279            322           118            79
      Loss on asset impairments                                     7,650             --             --            --            --
      Property taxes, insurance and other                              66             86             94            66            43
                                                               ----------     ----------     ----------    ----------    ----------
Operating expenses                                                  7,843            365            416           184           122
                                                               ----------     ----------     ----------    ----------    ----------

Operating (loss) income                                            (7,618)           164            211           363           238
Interest expense, net                                                 208             --             --            --            --
Equity in income from consolidated entities                            --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Income (loss) before minority interests and income tax benefit     (7,826)           164            211           363           238
Minority interests                                                     --             --             --            --            --
Income tax benefit                                                     --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Net (loss) income                                                  (7,826)           164            211           363           238
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR     MERISTAR
                                                                  SUB 5O,         6M           SUB 4B,       SUB 6C,      SUB 2C,
                                                                    LLC        COMPANY           L.P.          LLC          LLC
                                                               ----------     ----------     ----------    ----------   -----------
<S>                                                            <C>            <C>            <C>           <C>           <C>
Revenue:
    Hotel operations:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other hotel operations                                           --             --             --            --            --
    Office rental, parking and other revenue                           --             --             --             4            28
    Participating lease revenue                                       240            917             47           649           361
                                                               ----------     ----------     ----------    ----------    ----------
Total revenue                                                         240            917             47           653           389
                                                               ----------     ----------     ----------    ----------    ----------

Hotel operating expenses:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other operating departments                                      --             --             --            --            --
      Office rental, parking and other operating expenses              --             --             --            --            --
Other operating expenses:
      Administrative and general                                       --             --             --            --            --
      Property operating costs                                         --             --             --            --            --
      Depreciation and amortization                                    57            308            136           194           278
      Loss on asset impairments                                        --             --             --            --        13,282
      Property taxes, insurance and other                              26             83             67            56           126
                                                               ----------     ----------     ----------    ----------    ----------
Operating expenses                                                     83            391            203           250        13,686
                                                               ----------     ----------     ----------    ----------    ----------

Operating (loss) income                                               157            526           (156)          403       (13,297)
Interest expense, net                                                  --             --             --            --           363
Equity in income from consolidated entities                            --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Income (loss) before minority interests and income tax benefit        157            526           (156)          403       (13,660)
Minority interests                                                     --             --             --            --            --
Income tax benefit                                                     --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Net (loss) income                                                     157            526           (156)          403       (13,660)
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>

<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR     MERISTAR
                                                                  SUB 4G,       SUB 3B,        SUB 5G,       SUB 5P,      SUB 5J,
                                                                    L.P.          LLC            L.P.          LLC          LLC
                                                               ----------     ----------     ----------    ----------   -----------
<S>                                                            <C>            <C>            <C>           <C>           <C>
Revenue:
    Hotel operations:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other hotel operations                                           --             --             --            --            --
    Office rental, parking and other revenue                           --              6              9            --            --
    Participating lease revenue                                       528            406          3,056           181         2,693
                                                               ----------     ----------     ----------    ----------    ----------
Total revenue                                                         528            412          3,065           181         2,693
                                                               ----------     ----------     ----------    ----------    ----------

Hotel operating expenses:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other operating departments                                      --             --             --            --            --
      Office rental, parking and other operating expenses              --             --             --            --            --
Other operating expenses:
      Administrative and general                                       --             --             --            --            --
      Property operating costs                                         --             --             --            --            --
      Depreciation and amortization                                   225            130          1,572             1           871
      Loss on asset impairments                                        --            695             --            --            --
      Property taxes, insurance and other                             154             78            481             3           370
                                                               ----------     ----------     ----------    ----------    ----------
Operating expenses                                                    379            903          2,053             4         1,241
                                                               ----------     ----------     ----------    ----------    ----------

Operating (loss) income                                               149           (491)         1,012           177         1,452
Interest expense, net                                                  --             --             --            --             3
Equity in income from consolidated entities                            --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Income (loss) before minority interests and income tax benefit        149           (491)         1,012           177         1,449
Minority interests                                                     --             --             --            --            --
Income tax benefit                                                     --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Net (loss) income                                                     149           (491)         1,012           177         1,449
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR     MERISTAR
                                                                  SUB 5Q,       SUB 5A,        SUB 8D,       SUB 4J,   HOTEL LESSEE,
                                                                    LLC           LLC            LLC           LLC          INC.
                                                               ----------     ----------     ----------    ----------  -------------
<S>                                                            <C>            <C>            <C>           <C>           <C>
Revenue:
    Hotel operations:
      Rooms                                                            --             --             --            --       158,260
      Food and beverage                                                --             --             --            --        62,830
      Other hotel operations                                           --             --             --            --        18,879
    Office rental, parking and other revenue                           --             29             --            54            --
    Participating lease revenue                                       613          1,593            595           725            --
                                                               ----------     ----------     ----------    ----------    ----------
Total revenue                                                         613          1,622            595           779       239,969
                                                               ----------     ----------     ----------    ----------    ----------

Hotel operating expenses:
      Rooms                                                            --             --             --            --        38,586
      Food and beverage                                                --             --             --            --        46,086
      Other operating departments                                      --             --             --            --        11,125
      Office rental, parking and other operating expenses              --             --             --            98            --
Other operating expenses:
      Administrative and general                                       --             --             --            --        39,632
      Property operating costs                                         --             --             --            --        36,980
      Depreciation and amortization                                   140            386            314           326           (73)
      Loss on asset impairments                                        --             --             --            --            --
      Property taxes, insurance and other                              54            177            109            81        75,428
                                                               ----------     ----------     ----------    ----------    ----------
Operating expenses                                                    194            563            423           505       247,764
                                                               ----------     ----------     ----------    ----------    ----------

Operating (loss) income                                               419          1,059            172           274        (7,795)
Interest expense, net                                                  --            708             --            --           427
Equity in income from consolidated entities                            --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Income (loss) before minority interests and income tax benefit        419            351            172           274        (8,222)
Minority interests                                                     --             --             --            --            --
Income tax benefit                                                     --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Net (loss) income                                                     419            351            172           274        (8,222)
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>


<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)


<TABLE>
<CAPTION>
                                                                    GUARANTOR
                                                                  SUBSIDIARIES                     TOTAL
                                                                      TOTAL      ELIMINATIONS   CONSOLIDATED
                                                                  ------------   ------------   ------------
<S>                                                               <C>            <C>            <C>
Revenue:
    Hotel operations:
      Rooms                                                          158,260             --        158,260
      Food and beverage                                               62,830             --         62,830
      Other hotel operations                                          18,879             --         18,879
    Office rental, parking and other revenue                             581             --          3,197
    Participating lease revenue                                       35,920        (67,970)            --
                                                                  ----------     ----------     ----------
Total revenue                                                        276,470        (67,970)       243,166
                                                                  ----------     ----------     ----------

Hotel operating expenses:
      Rooms                                                           38,586             --         38,586
      Food and beverage                                               46,086             --         46,086
      Other operating departments                                     11,125             --         11,125
      Office rental, parking and other operating expenses                341             --            641
Other operating expenses:
      Administrative and general                                      39,632             --         42,551
      Property operating costs                                        36,980             --         36,980
      Depreciation and amortization                                   13,700             --         28,706
      Loss on asset impairments                                       52,702             --         56,677
      Property taxes, insurance and other                             82,197        (67,970)        20,269
                                                                  ----------     ----------     ----------
Operating expenses                                                   321,349        (67,970)       281,621
                                                                  ----------     ----------     ----------

Operating (loss) income                                              (44,879)            --        (38,455)
Interest expense, net                                                  2,337             --         34,876
Equity in income from consolidated entities                               --        (44,064)            --
                                                                  ----------     ----------     ----------
Income (loss) before minority interests and income tax benefit       (47,216)        44,064        (73,331)
Minority interests                                                        --             --            (11)
Income tax benefit                                                        --             --            144
                                                                  ----------     ----------     ----------

Net (loss) income                                                    (47,216)        44,064        (73,198)
                                                                  ==========     ==========     ==========
</TABLE>


<PAGE>


MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2002
UNAUDITED
(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 hotel operations                                           --             --             --            --            --
   Office rental, parking and other revenue                         1,833          1,264             --            --            --
   Participating lease revenue                                         --         33,334             --            --           319
                                                               ----------     ----------     ----------    ----------    ----------
Total revenue                                                       1,833         34,598             --            --           319

Hotel operating expenses:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other hotel and operating expenses                               --             --             --            --            --
   Office rental, parking and other expenses                           --            148             --            --            --
   Other operating expenses:
      Administrative and general                                    2,335             55             --            --            --
      Property operating costs                                       (454)            12             --            --            --
      Depreciation and amortization                                 2,671         12,442             --            --            33
      Loss on asset impairment                                         --             --             --            --            --
      Property taxes, insurance and other                            (760)         6,011             --            --            27
      Loss on fair value of non-hedging derivatives                 4,735             --             --            --            --
      Write-off of deferred financing costs                         1,529             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
   Operating expenses                                              10,056         18,668             --            --            60
                                                               ----------     ----------     ----------    ----------    ----------

Operating (loss) income                                            (8,223)        15,930             --            --           259
   Interest expense, net                                           26,199          6,963             --            --            (2)
   Equity in income from consolidated entities                    (23,860)            --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

 Income (loss) before minority interests, income
 tax benefit, loss on sale of assets and discontinued operation   (10,562)         8,967             --            --           261
   Minority interests                                                 (11)            --             --            --            --
   Income tax benefit                                                 270             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Income (loss) from continuing operations                          (10,303)         8,967             --            --           261

Income (loss) from discontinued operations, net of income taxes       (21)           747             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Net income (loss)                                                 (10,324)         9,714             --            --           261
                                                               ==========     ==========     ==========    ==========    ==========
</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 hotel operations                                           --             --             --            --            --
   Office rental, parking and other revenue                            --             --             --            --            --
   Participating lease revenue                                         --            571             --           378         1,791
                                                               ----------     ----------     ----------    ----------    ----------
Total revenue                                                          --            571             --           378         1,791

Hotel operating expenses:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other hotel and operating expenses                               --             --             --            --            --
   Office rental, parking and other expenses                           --             --             --            --            --
   Other operating expenses:
      Administrative and general                                       --              1             --             1            --
      Property operating costs                                         --             --             --            --            --
      Depreciation and amortization                                    --            113             --           107           595
      Loss on asset impairment                                         --             --             --            --            --
      Property taxes, insurance and other                              --            230             --            25           358
      Loss on fair value of non-hedging derivatives                    --             --             --            --            --
      Write-off of deferred financing costs                            --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
   Operating expenses                                                  --            344             --           133           953
                                                               ----------     ----------     ----------    ----------    ----------

Operating (loss) income                                                --            227             --           245           838
   Interest expense, net                                               --             (2)            --            (1)          (14)
   Equity in income from consolidated entities                         --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

 Income (loss) before minority interests, income
 tax benefit, loss on sale of assets and discontinued operations       --            229             --           246           852
   Minority interests                                                  --             --             --            --            --
   Income tax benefit                                                  --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Income (loss) from continuing operations                               --            229             --           246           852

Income (loss) from discontinued operations, net of income taxes       252             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Net income (loss)                                                     252            229             --           246           852
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>

<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2002
UNAUDITED
(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 hotel operations                                           --             --             --            --            --
   Office rental, parking and other revenue                            --              8             --            --            --
   Participating lease revenue                                        410            376            274           317           541
                                                               ----------     ----------     ----------    ----------    ----------
Total revenue                                                         410            384            274           317           541

Hotel operating expenses:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other hotel and operating expenses                               --             --             --            --            --
   Office rental, parking and other expenses                           --             --             --            --            --
   Other operating expenses:
      Administrative and general                                       --             --             --            --            --
      Property operating costs                                         --             --             --            --            --
      Depreciation and amortization                                   257            147            118            33           176
      Loss on asset impairment                                         --             --             --            --            --
      Property taxes, insurance and other                             202             46             34            30           114
      Loss on fair value of non-hedging derivatives                    --             --             --            --            --
      Write-off of deferred financing costs                            --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
   Operating expenses                                                 459            193            152            63           290
                                                               ----------     ----------     ----------    ----------    ----------

Operating (loss) income                                               (49)           191            122           254           251
   Interest expense, net                                              (10)            (4)            (2)           (3)           (5)
   Equity in income from consolidated entities                         --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

 Income (loss) before minority interests, income
 tax benefit, loss on sale of assets and discontinued operation       (39)           195            124           257           256
   Minority interests                                                  --             --             --            --            --
   Income tax benefit                                                  --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Income (loss) from continuing operations                              (39)           195            124           257           256

Income (loss) from discontinued operations, net of income taxes        --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Net income (loss)                                                     (39)           195            124           257           256
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR     MERISTAR
                                                                  SUB 5B,       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 hotel operations                                           --             --             --            --            --
   Office rental, parking and other revenue                            --              6             --             3           581
   Participating lease revenue                                         --            517          1,264           342           505
                                                               ----------     ----------     ----------    ----------    ----------
Total revenue                                                          --            523          1,264           345         1,086

Hotel operating expenses:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other hotel and operating expenses                               --             --             --            --            --
   Office rental, parking and other expenses                           --             --             --            --            --
   Other operating expenses:
      Administrative and general                                       --             --             --            --            --
      Property operating costs                                         --             --             --            --            --
      Depreciation and amortization                                    --            133            425           230           158
      Loss on asset impairment                                         --             --             --            --            --
      Property taxes, insurance and other                              --             46            207            97            39
      Loss on fair value of non-hedging derivatives                    --             --             --            --            --
      Write-off of deferred financing costs                            --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
   Operating expenses                                                  --            179            632           327           197
                                                               ----------     ----------     ----------    ----------    ----------

Operating (loss) income                                                --            344            632            18           889
   Interest expense, net                                               --             (6)           (12)           (6)           (3)
   Equity in income from consolidated entities                         --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

 Income (loss) before minority interests, income
 tax benefit, loss on sale of assets and discontinued operations       --            350            644            24           892
   Minority interests                                                  --             --             --            --            --
   Income tax benefit                                                  --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Income (loss) from continuing operations                               --            350            644            24           892

Income (loss) from discontinued operations, net of income taxes        --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Net income (loss)                                                      --            350            644            24           892
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>


<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2002
UNAUDITED
(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 hotel operations                                           --             --             --            --            --
   Office rental, parking and other revenue                            --             --              2            --            --
   Participating lease revenue                                        802            563            487            --           171
                                                               ----------     ----------     ----------    ----------    ----------
Total revenue                                                         802            563            489            --           171

Hotel operating expenses:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other hotel and operating expenses                               --             --             --            --            --
   Office rental, parking and other expenses                           --             --             --            --            --
   Other operating expenses:
      Administrative and general                                        1             --             (1)           --            --
      Property operating costs                                         --             --             --            --            --
      Depreciation and amortization                                   264            209            346            --           135
      Loss on asset impairment                                         --             --             --            --            --
      Property taxes, insurance and other                              84             75            151            --            47
      Loss on fair value of non-hedging derivatives                    --             --             --            --            --
      Write-off of deferred financing costs                            --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
   Operating expenses                                                 349            284            496            --           182
                                                               ----------     ----------     ----------    ----------    ----------

Operating (loss) income                                               453            279             (7)           --           (11)
   Interest expense, net                                               (7)            (9)           (10)           --            (2)
   Equity in income from consolidated entities                         --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

 Income (loss) before minority interests, income
 tax benefit, loss on sale of assets and discontinued operation       460            288              3             0            (9)
   Minority interests                                                  --             --             --            --            --
   Income tax benefit                                                  --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Income (loss) from continuing operations                              460            288              3            --            (9)

Income (loss) from discontinued operations, net of income taxes        --             --             --            66            --

                                                               ----------     ----------     ----------    ----------    ----------
Net income (loss)                                                     460            288              3            66            (9)
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR     MERISTAR
                                                                  SUB 7C,       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 hotel operations                                           --             --             --            --            --
   Office rental, parking and other revenue                            --             --             --            --            --
   Participating lease revenue                                        362            713            401         1,080           272
                                                               ----------     ----------     ----------    ----------    ----------
Total revenue                                                         362            713            401         1,080           272

Hotel operating expenses:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other hotel and operating expenses                               --             --             --            --            --
   Office rental, parking and other expenses                           --             --             --            --            --
   Other operating expenses:
      Administrative and general                                       --             --             --            --             1
      Property operating costs                                         --             --             --            --            --
      Depreciation and amortization                                   158            240            119           485           104
      Loss on asset impairment                                         --             --             --            --            --
      Property taxes, insurance and other                              39             18             82            96            56
      Loss on fair value of non-hedging derivatives                    --             --             --            --            --
      Write-off of deferred financing costs                            --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
   Operating expenses                                                 197            258            201           581           161
                                                               ----------     ----------     ----------    ----------    ----------

Operating (loss) income                                               165            455            200           499           111
   Interest expense, net                                               (5)            (9)            (5)           (8)           (7)
   Equity in income from consolidated entities                         --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

 Income (loss) before minority interests, income
 tax benefit, loss on sale of assets and discontinued operation       170            464            205           507           118
   Minority interests                                                  --             --             --            --            --
   Income tax benefit                                                  --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Income (loss) from continuing operations                              170            464            205           507           118

Income (loss) from discontinued operations, net of income taxes        --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Net income (loss)                                                     170            464            205           507           118
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>


<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2002
UNAUDITED
(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.         LLC
                                                               ----------     ----------     ----------    ----------   -----------
<S>                                                            <C>            <C>            <C>           <C>           <C>
   Hotel operations:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other hotel operations                                           --             --             --            --            --
   Office rental, parking and other revenue                            --             --             --            --            --
   Participating lease revenue                                        882            109            133           248           117
                                                               ----------     ----------     ----------    ----------    ----------
Total revenue                                                         882            109            133           248           117

Hotel operating expenses:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other hotel and operating expenses                               --             --             --            --            --
   Office rental, parking and other expenses                           --             --             --            --            --
   Other operating expenses:
      Administrative and general                                       --             --             --            --            --
      Property operating costs                                         --             --             --            --            --
      Depreciation and amortization                                   186            105             71            --            80
      Loss on asset impairment                                         --             --             --            --            --
      Property taxes, insurance and other                             120             36             28            60            46
      Loss on fair value of non-hedging derivatives                    --             --             --            --            --
      Write-off of deferred financing costs                            --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
   Operating expenses                                                 306            141             99            60           126
                                                               ----------     ----------     ----------    ----------    ----------

Operating (loss) income                                               576            (32)            34           188            (9)
   Interest expense, net                                               (8)            95             (5)           (7)           (9)
   Equity in income from consolidated entities                         --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

 Income (loss) before minority interests, income
 tax benefit, loss on sale of assets and discontinued operation       584           (127)            39           195             0
   Minority interests                                                  --             --             --            --            --
   Income tax benefit                                                  --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Income (loss) from continuing operations                              584           (127)            39           195            --

Income (loss) from discontinued operations, net of income taxes        --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Net income (loss)                                                     584           (127)            39           195            --
                                                               ==========     ==========     ==========    ==========    ==========
</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 hotel operations                                           --             --             --            --            --
   Office rental, parking and other revenue                            --             --             --            --            --
   Participating lease revenue                                        127            350            190           259           622
                                                               ----------     ----------     ----------    ----------    ----------
Total revenue                                                         127            350            190           259           622

Hotel operating expenses:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other hotel and operating expenses                               --             --             --            --            --
   Office rental, parking and other expenses                           --             --             --            --            --
   Other operating expenses:
      Administrative and general                                        2              1             --            --            --
      Property operating costs                                         --             --             --            --            --
      Depreciation and amortization                                    78            222             34           149           162
      Loss on asset impairment                                         --             --             --            --            --
      Property taxes, insurance and other                              37             50             38            98            46
      Loss on fair value of non-hedging derivatives                    --             --             --            --            --
      Write-off of deferred financing costs                            --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
   Operating expenses                                                 117            273             72           247           208
                                                               ----------     ----------     ----------    ----------    ----------

Operating (loss) income                                                10             77            118            12           414
   Interest expense, net                                              167             (2)            (1)           (8)           (9)
   Equity in income from consolidated entities                         --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

 Income (loss) before minority interests, income
 tax benefit, loss on sale of assets and discontinued operation      (157)            79            119            20           423
   Minority interests                                                  --             --             --            --            --
   Income tax benefit                                                  --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Income (loss) from continuing operations                             (157)            79            119            20           423

Income (loss) from discontinued operations, net of income taxes        --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Net income (loss)                                                    (157)            79            119            20           423
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>


<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2002
UNAUDITED
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR     MERISTAR
                                                                  SUB 1D,       SUB 7B,        SUB 7D,       SUB 7G,      SUB 6D,
                                                                    L.P.          L.P.           LLC           LLC          LLC
                                                               ----------     ----------     ----------    ----------   -----------
<S>                                                            <C>            <C>            <C>           <C>           <C>
   Hotel operations:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other hotel operations                                           --             --             --            --            --
   Office rental, parking and other revenue                           107             --            341            --            --
   Participating lease revenue                                      1,382            391          1,387           146           253
                                                               ----------     ----------     ----------    ----------    ----------
Total revenue                                                       1,489            391          1,728           146           253

Hotel operating expenses:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other hotel and operating expenses                               --             --             --            --            --
   Office rental, parking and other expenses                           31             --            483            --            --
   Other operating expenses:
      Administrative and general                                       --              1             --            --            --
      Property operating costs                                         --             --             --            --            --
      Depreciation and amortization                                   554            231            416           189           114
      Loss on asset impairment                                         --             --             --            --            --
      Property taxes, insurance and other                             267            223            533            59            60
      Loss on fair value of non-hedging derivatives                    --             --             --            --            --
      Write-off of deferred financing costs                            --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
   Operating expenses                                                 852            455          1,432           248           174
                                                               ----------     ----------     ----------    ----------    ----------

Operating (loss) income                                               637            (64)           296          (102)           79
   Interest expense, net                                              (22)            (4)           (11)           (6)           (1)
   Equity in income from consolidated entities                         --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

 Income (loss) before minority interests, income
 tax benefit, loss on sale of assets and discontinued operation       659            (60)           307           (96)           80
   Minority interests                                                  --             --             --            --            --
   Income tax benefit                                                  --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Income (loss) from continuing operations                              659            (60)           307           (96)           80

Income (loss) from discontinued operations, net of income taxes        --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Net income (loss)                                                     659            (60)           307           (96)           80
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR        AGH
                                                                  SUB 4J,       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 hotel operations                                           --             --             --            --            --
   Office rental, parking and other revenue                            --             --             --            --             1
   Participating lease revenue                                         20            416          1,239           315           737
                                                               ----------     ----------     ----------    ----------    ----------
Total revenue                                                          20            416          1,239           315           738

Hotel operating expenses:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other hotel and operating expenses                               --             --             --            --            --
   Office rental, parking and other expenses                           --             --             --            --            --
   Other operating expenses:
      Administrative and general                                       --             --             --            --            --
      Property operating costs                                         --             --             --            --            --
      Depreciation and amortization                                   144            362            493           152            --
      Loss on asset impairment                                         --             --             --            --            --
      Property taxes, insurance and other                              76             87            168            92           105
      Loss on fair value of non-hedging derivatives                    --             --             --            --            --
      Write-off of deferred financing costs                            --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
   Operating expenses                                                 220            449            661           244           105
                                                               ----------     ----------     ----------    ----------    ----------

Operating (loss) income                                              (200)           (33)           578            71           633
   Interest expense, net                                               (9)           399            (18)           (5)           (8)
   Equity in income from consolidated entities                         --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

 Income (loss) before minority interests, income
 tax benefit, loss on sale of assets and discontinued operation      (191)            --            596            76           641
   Minority interests                                                  --             --             --            --            --
   Income tax benefit                                                  --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Income (loss) from continuing operations                             (191)          (432)           596            76           641

Income (loss) from discontinued operations, net of income taxes        --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Net income (loss)                                                    (191)          (432)           596            76           641
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>

<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2002
UNAUDITED
(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 hotel operations                                           --             --             --            --            --
   Office rental, parking and other revenue                            --              4             --            --            --
   Participating lease revenue                                        245            467            736           649           317
                                                               ----------     ----------     ----------    ----------    ----------
Total revenue                                                         245            471            736           649           317

Hotel operating expenses:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other hotel and operating expenses                               --             --             --            --            --
   Office rental, parking and other expenses                           --             --             --            --            --
   Other operating expenses:
      Administrative and general                                       --             --             --            --            --
      Property operating costs                                         --             --             --            --            --
      Depreciation and amortization                                   117            280            297           113            76
      Loss on asset impairment                                         --             --             --            --            --
      Property taxes, insurance and other                              56             93             76            76            36
      Loss on fair value of non-hedging derivatives                    --             --             --            --            --
      Write-off of deferred financing costs                            --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
   Operating expenses                                                 173            373            373           189           112
                                                               ----------     ----------     ----------    ----------    ----------

Operating (loss) income                                                72             98            363           460           205
   Interest expense, net                                              192             (7)           (22)           (5)           (4)
   Equity in income from consolidated entities                         --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

 Income (loss) before minority interests, income
 tax benefit, loss on sale of assets and discontinued operation      (120)           105            385           465           209
   Minority interests                                                  --             --             --            --            --
   Income tax benefit                                                  --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Income (loss) from continuing operations                             (120)           105            385           465           209

Income (loss) from discontinued operations, net of income taxes        --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Net income (loss)                                                    (120)           105            385           465           209
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR     MERISTAR
                                                                  SUB 5O,         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 hotel operations                                           --             --             --            --            --
   Office rental, parking and other revenue                            --             --             --             4            19
   Participating lease revenue                                        276            917             55           714           343
                                                               ----------     ----------     ----------    ----------    ----------
Total revenue                                                         276            917             55           718           362

Hotel operating expenses:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other hotel and operating expenses                               --             --             --            --            --
   Office rental, parking and other expenses                           --             --             --            --            --
   Other operating expenses:
      Administrative and general                                       --             --             --            --            --
      Property operating costs                                         --             --             --            --            --
      Depreciation and amortization                                    55            302            177           199           255
      Loss on asset impairment                                         --             --             --            --            --
      Property taxes, insurance and other                              35             71             86            50            86
      Loss on fair value of non-hedging derivatives                    --             --             --            --            --
      Write-off of deferred financing costs                            --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
   Operating expenses                                                  90            373            263           249           341
                                                               ----------     ----------     ----------    ----------    ----------

Operating (loss) income                                               186            544           (208)          469            21
   Interest expense, net                                               (2)            (4)           (56)           (7)          332
   Equity in income from consolidated entities                         --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

 Income (loss) before minority interests, income
 tax benefit, loss on sale of assets and discontinued operation       188            548           (152)          476          (311)
   Minority interests                                                  --             --             --            --            --
   Income tax benefit                                                  --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Income (loss) from continuing operations                              188            548           (152)          476          (311)

Income (loss) from discontinued operations, net of income taxes        --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Net income (loss)                                                     188            548           (152)          476          (311)
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>


<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2002
UNAUDITED
(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 hotel operations                                           --             --             --            --            --
   Office rental, parking and other revenue                             6              6             18            --            --
   Participating lease revenue                                        726            368          3,220           119         2,790
                                                               ----------     ----------     ----------    ----------    ----------
Total revenue                                                         732            374          3,238           119         2,790

Hotel operating expenses:
      Rooms                                                            --             --             --            --            --
      Food and beverage                                                --             --             --            --            --
      Other hotel and operating expenses                               --             --             --            --            --
   Office rental, parking and other expenses                           --             --             --            --            --
   Other operating expenses:
      Administrative and general                                       --             --              2            --            --
      Property operating costs                                         --             --             --            --            --
      Depreciation and amortization                                   229            230          1,548            --           866
      Loss on asset impairment                                         --             --             --            --            --
      Property taxes, insurance and other                             124             81            465             6           471
      Loss on fair value of non-hedging derivatives                    --             --             --            --            --
      Write-off of deferred financing costs                            --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
   Operating expenses                                                 353            311          2,015             6         1,337
                                                               ----------     ----------     ----------    ----------    ----------

Operating (loss) income                                               379             63          1,223           113         1,453
   Interest expense, net                                               (6)            (7)           (30)           --           (26)
   Equity in income from consolidated entities                         --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

 Income (loss) before minority interests, income
 tax benefit, loss on sale of assets and discontinued operation       385             70          1,253           113         1,479
   Minority interests                                                  --             --             --            --            --
   Income tax benefit                                                  --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Income (loss) from continuing operations                              385             70          1,253           113         1,479

Income (loss) from discontinued operations, net of income taxes        --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Net income (loss)                                                     385             70          1,253           113         1,479
                                                               ==========     ==========     ==========    ==========    ==========
</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                                                            --             --             --            --       164,740
      Food and beverage                                                --             --             --            --        60,988
      Other hotel operations                                           --             --             --            --        18,802
   Office rental, parking and other revenue                            --             23             --            65            10
   Participating lease revenue                                        653          1,582            579           776            --
                                                               ----------     ----------     ----------    ----------    ----------
Total revenue                                                         653          1,605            579           841       244,540

Hotel operating expenses:
      Rooms                                                            --             --             --            --        37,524
      Food and beverage                                                --             --             --            --        43,567
      Other hotel and operating expenses                               --             --             --            --        10,519
   Office rental, parking and other expenses                           --             --             --            99            --
   Other operating expenses:
      Administrative and general                                       --             --             --            --        39,834
      Property operating costs                                         --             --             --            --        36,064
      Depreciation and amortization                                   120            313            317           336           294
      Loss on asset impairment                                         --             --             --            --            --
      Property taxes, insurance and other                              68            151            106           101        78,406
      Loss on fair value of non-hedging derivatives                    --             --             --            --            --
      Write-off of deferred financing costs                            --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------
   Operating expenses                                                 188            464            423           536       246,208
                                                               ----------     ----------     ----------    ----------    ----------

Operating (loss) income                                               465          1,141            156           305        (1,668)
   Interest expense, net                                              (22)           693             (5)          (11)           61
   Equity in income from consolidated entities                         --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

 Income (loss) before minority interests, income
 tax benefit, loss on sale of assets and discontinued operation       487            448            161           316        (1,729)
   Minority interests                                                  --             --             --            --            --
   Income tax benefit                                                  --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Income (loss) from continuing operations                              487            448            161           316        (1,729)

Income (loss) from discontinued operations, net of income taxes        --             --             --            --          (200)

                                                               ----------     ----------     ----------    ----------    ----------
Net income (loss)                                                     487            448            161           316        (1,929)
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>


<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2002
UNAUDITED
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                      GUARANTOR
                                                                    SUBSIDIARIES                             TOTAL
                                                                        TOTAL            ELIMINATIONS    CONSOLIDATED
                                                                    ------------         ------------    ------------
<S>                                                                 <C>                  <C>             <C>
   Hotel operations:
      Rooms                                                            164,740                    --        164,740
      Food and beverage                                                 60,988                    --         60,988
      Other hotel operations                                            18,802                    --         18,802
   Office rental, parking and other revenue                              1,204                    --          4,301
   Participating lease revenue                                          37,311               (70,645)            --
                                                                      --------              --------       --------
Total revenue                                                          283,045               (70,645)       248,831

Hotel operating expenses:
      Rooms                                                             37,524                    --         37,524
      Food and beverage                                                 43,567                    --         43,567
      Other hotel and operating expenses                                10,519                    --         10,519
   Office rental, parking and other expenses                               613                    --            761
   Other operating expenses:
      Administrative and general                                        39,843                    --         42,233
      Property operating costs                                          36,064                    --         35,622
      Depreciation and amortization                                     14,451                    --         29,564
      Loss on asset impairment                                              --                    --             --
      Property taxes, insurance and other                               84,976               (70,645)        19,582
      Loss on fair value of non-hedging derivatives                         --                    --          4,735
      Write-off of deferred financing costs                                 --                    --          1,529
                                                                      --------              --------       --------
   Operating expenses                                                  267,557               (70,645)       225,636
                                                                      --------              --------       --------
Operating (loss) income                                                 15,488                    --         23,195
   Interest expense, net                                                 1,460                    --         34,622
   Equity in income from consolidated entities                              --                23,860             --
                                                                      --------              --------       --------
 Income (loss) before minority interests, income
 tax benefit, loss on sale of assets and discontinued operations        14,028               (23,860)       (11,427)
   Minority interests                                                       --                    --            (11)
   Income tax benefit                                                       --                    --            270
                                                                      --------              --------       --------
Income (loss) from continuing operations                                14,028               (23,860)       (11,168)

Income (loss) from discontinued operations, net of income taxes            118                    --            844
                                                                      --------              --------       --------
Net income (loss)                                                       14,146               (23,860)       (10,324)
                                                                      ========              ========       ========
</TABLE>


<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2003
UNAUDITED
(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                                             (73,198)         3,152             --            --           220
    Adjustments to reconcile net income (loss) to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                 2,214         12,792             --            --            34
      Equity in earnings                                           44,064             --             --            --            --
      Loss on asset impairments                                        --          3,975             --            --            --
      Minority interests                                               11             --             --            --            --
      Amortization of unearned stock-based compensation               976             --             --            --            --
      Unrealized gain on interest rate swaps recognized in net     (2,055)            --             --            --            --
      Deferred income taxes                                          (682)            --             --            --            --
      Changes in operating assets and liabilities:                     --             --             --            --            --
         Accounts receivable                                       (1,047)            72             --            --            --
         Prepaid expenses and other assets                          4,804         (1,091)            --            --            (9)
         Due from/to Interstate Hotels & Resorts                      137             --             --            --            --
         Due from subsidiaries                                     30,077        (19,439)            --            --          (234)
         Accounts payable, accrued expenses, accrued interest and
           other liabilities                                       (6,389)        (5,694)            --            --            (2)

                                                               ----------     ----------     ----------    ----------    ----------
Net cash provided by (used in) operating activities                (1,088)        (6,233)            --            --             9
                                                               ----------     ----------     ----------    ----------    ----------

Cash flows from investing activities:
    Investment in hotel properties, net                              (260)        (4,372)            --            --            (9)
    Proceeds from sales of assets                                      --         12,650             --            --            --
    Net payments from Interstate Hotels & Resorts                  42,052             --             --            --            --
    Change in restricted cash                                      (1,788)           132             --            --            --
    Other, net                                                         --           (299)            --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Net cash provided by (used in) investing activities                40,004          8,111             --            --            (9)
                                                               ----------     ----------     ----------    ----------    ----------

Cash flows from financing activities:
    Principal payments on long-term debt                          (12,249)        (1,878)            --            --            --
    Distributions to partners                                        (141)            --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Net cash used in financing activities                             (12,390)        (1,878)            --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Effect of exchange rate changes on cash                              (274)            --             --            --            --

Net change in cash and cash equivalents                            26,252             --             --            --            --

Cash and cash equivalents, beginning of period                     21,372             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Cash and cash equivalents, end of period                           47,624             --             --            --            --
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>


<TABLE>
<CAPTION>
                                                                MERISTAR       MERISTAR      MERISTAR       MERISTAR      MERISTAR
                                                                 SUB 8A,        SUB 8F,       SUB 8G,        SUB 6H,       SUB 8B,
                                                                   LLC            LLC           LLC            L.P.          LLC
                                                               ----------     ----------    -----------    ----------    ----------
<S>                                                            <C>            <C>            <C>           <C>           <C>
Operating activities:
    Net (loss) income                                                  --            325             --           124           862
    Adjustments to reconcile net income (loss) to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                    --            115             --           108           610
      Equity in earnings                                               --             --             --            --            --
      Loss on asset impairments                                        --             --             --            --            --
      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                                           --             --             --            --            --
         Prepaid expenses and other assets                             --            (18)            --            (4)           (3)
         Due from/to Interstate Hotels & Resorts                       --             --             --            --            --
         Due from subsidiaries                                         --           (293)            --          (238)         (841)
         Accounts payable, accrued expenses, accrued interest and
           other liabilities                                           --           (121)            --            11           (25)

                                                               ----------     ----------     ----------    ----------    ----------
Net cash provided by (used in) operating activities                    --              8             --             1           603
                                                               ----------     ----------     ----------    ----------    ----------

Cash flows from investing activities:
    Investment in hotel properties, net                                --             (8)            --            (1)         (603)
    Proceeds from sales of assets                                      --             --             --            --            --
    Net payments from Interstate Hotels & Resorts                      --             --             --            --            --
    Change in restricted cash                                          --             --             --            --            --
    Other, net                                                         --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Net cash provided by (used in) investing activities                    --             (8)            --            (1)         (603)
                                                               ----------     ----------     ----------    ----------    ----------

Cash flows from financing activities:
    Principal payments on long-term debt                               --             --             --            --            --
    Distributions to partners                                          --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Net cash used in financing activities                                  --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Effect of exchange rate changes on cash                                --             --             --            --            --

Net change in cash and cash equivalents                                --             --             --            --            --

Cash and cash equivalents, beginning of period                         --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Cash and cash equivalents, end of period                               --             --             --            --            --
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>


<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2003
UNAUDITED
(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                                                  30            167            71            259           317
    Adjustments to reconcile net income (loss) to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                   254            146           115             34           179
      Equity in earnings                                               --             --            --             --            --
      Loss on asset impairments                                        --             --            --             --            --
      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                                           (4)            --            --             48            --
         Prepaid expenses and other assets                            (72)            (6)           (4)           (24)           (5)
         Due from/to Interstate Hotels & Resorts                       --             --            --             --            --
         Due from subsidiaries                                       (153)          (179)         (182)          (278)         (566)
         Accounts payable, accrued expenses, accrued interest and
           other liabilities                                          (24)           (63)           29            (22)           82

                                                               ----------     ----------    ----------     ----------    ----------
Net cash provided by (used in) operating activities                    31             65            29             17             7
                                                               ----------     ----------    ----------     ----------    ----------

Cash flows from investing activities:
    Investment in hotel properties, net                               (31)           (65)          (29)           (17)           (7)
    Proceeds from sales of assets                                      --             --            --             --            --
    Net payments from Interstate Hotels & Resorts                      --             --            --             --            --
    Change in restricted cash                                          --             --            --             --            --
    Other, net                                                         --             --            --             --            --

                                                               ----------     ----------    ----------     ----------    ----------
Net cash provided by (used in) investing activities                   (31)           (65)          (29)           (17)           (7)
                                                               ----------     ----------    ----------     ----------    ----------

Cash flows from financing activities:
    Principal payments on long-term debt                               --             --            --             --            --
    Distributions to partners                                          --             --            --             --            --

                                                               ----------     ----------    ----------     ----------    ----------
Net cash used in financing activities                                  --             --            --             --            --
                                                               ----------     ----------    ----------     ----------    ----------

Effect of exchange rate changes on cash                                --             --            --             --            --

Net change in cash and cash equivalents                                --             --            --             --            --

Cash and cash equivalents, beginning of period                         --             --            --             --            --

                                                               ----------     ----------    ----------     ----------    ----------
Cash and cash equivalents, end of period                               --             --            --             --            --
                                                               ==========     ==========    ==========     ==========    ==========
</TABLE>


<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 5B,       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                                                  --            220            733            30           391
    Adjustments to reconcile net income (loss) to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                    --            137            414           211           143
      Equity in earnings                                               --             --             --            --            --
      Loss on asset impairments                                        --             --             --            --            --
      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                                           --             (7)            --            --            --
         Prepaid expenses and other assets                             --             (4)           (18)          (14)          (20)
         Due from/to Interstate Hotels & Resorts                       --             --             --            --            --
         Due from subsidiaries                                         --           (264)          (985)          220          (506)
         Accounts payable, accrued expenses, accrued interest and
           other liabilities                                           --            (82)           (44)         (358)           17

                                                               ----------     ----------     ----------    ----------    ----------
Net cash provided by (used in) operating activities                    --             --            100            89            25
                                                               ----------     ----------     ----------    ----------    ----------

Cash flows from investing activities:
    Investment in hotel properties, net                                --             --           (100)          (89)          (14)
    Proceeds from sales of assets                                      --             --             --            --            --
    Net payments from Interstate Hotels & Resorts                      --             --             --            --            --
    Change in restricted cash                                          --             --             --            --            --
    Other, net                                                         --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Net cash provided by (used in) investing activities                    --             --           (100)          (89)          (14)
                                                               ----------     ----------     ----------    ----------    ----------

Cash flows from financing activities:
    Principal payments on long-term debt                               --             --             --            --           (11)
    Distributions to partners                                          --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Net cash used in financing activities                                  --             --             --            --           (11)
                                                               ----------     ----------     ----------    ----------    ----------

Effect of exchange rate changes on cash                                --             --             --            --            --

Net change in cash and cash equivalents                                --             --             --            --            --

Cash and cash equivalents, beginning of period                         --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Cash and cash equivalents, end of period                               --             --             --            --            --
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>


<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2003
UNAUDITED
(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                                                 360            213         (3,999)           --          (114)
    Adjustments to reconcile net income (loss) to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                   267            215            200            --           132
      Equity in earnings                                               --             --             --            --            --
      Loss on asset impairments                                        --             --          4,127            --            --
      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                                           --             --             --            --            14
         Prepaid expenses and other assets                            (38)            (7)           (13)           --           (17)
         Due from/to Interstate Hotels & Resorts                       --             --             --            --            --
         Due from subsidiaries                                       (548)          (342)            (9)           --           114
         Accounts payable, accrued expenses, accrued interest and
           other liabilities                                          (15)           (71)          (298)           --           (95)

                                                               ----------     ----------     ----------    ----------    ----------
Net cash provided by (used in) operating activities                    26              8              8            --            34
                                                               ----------     ----------     ----------    ----------    ----------

Cash flows from investing activities:
    Investment in hotel properties, net                               (26)            (8)            (8)           --           (34)
    Proceeds from sales of assets                                      --             --             --            --            --
    Net payments from Interstate Hotels & Resorts                      --             --             --            --            --
    Change in restricted cash                                          --             --             --            --            --
    Other, net                                                         --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Net cash provided by (used in) investing activities                   (26)            (8)            (8)           --           (34)
                                                               ----------     ----------     ----------    ----------    ----------

Cash flows from financing activities:
    Principal payments on long-term debt                               --             --             --            --            --
    Distributions to partners                                          --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Net cash used in financing activities                                  --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Effect of exchange rate changes on cash                                --             --             --            --            --

Net change in cash and cash equivalents                                --             --             --            --            --

Cash and cash equivalents, beginning of period                         --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Cash and cash equivalents, end of period                               --             --             --            --            --
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR   MERISTAR SUB
                                                                  SUB 7E,       SUB 3D,        SUB 1A,       SUB 5E,     7A JOINT
                                                                    LLC.          LLC            LLC           LLC.      VENTURE
                                                               ----------     ----------     ----------    ----------  ------------
<S>                                                            <C>            <C>            <C>           <C>           <C>
Operating activities:
    Net (loss) income                                                 132            118            231           657           101
    Adjustments to reconcile net income (loss) to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                   155            197            113           484           107
      Equity in earnings                                               --             --             --            --            --
      Loss on asset impairments                                        --             --             --            --            --
      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                                           --             --             --            --            --
         Prepaid expenses and other assets                             (5)            (9)           (33)          (11)           (8)
         Due from/to Interstate Hotels & Resorts                       --             --             --            --            --
         Due from subsidiaries                                       (243)          (302)          (250)       (1,177)         (115)
         Accounts payable, accrued expenses, accrued interest and
           other liabilities                                          (30)             5            (51)           67           (64)

                                                               ----------     ----------     ----------    ----------    ----------
Net cash provided by (used in) operating activities                     9              9             10            20            21
                                                               ----------     ----------     ----------    ----------    ----------

Cash flows from investing activities:
    Investment in hotel properties, net                                (9)            (9)           (10)          (20)          (21)
    Proceeds from sales of assets                                      --             --             --            --            --
    Net payments from Interstate Hotels & Resorts                      --             --             --            --            --
    Change in restricted cash                                          --             --             --            --            --
    Other, net                                                         --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Net cash provided by (used in) investing activities                    (9)            (9)           (10)          (20)          (21)
                                                               ----------     ----------     ----------    ----------    ----------

Cash flows from financing activities:
    Principal payments on long-term debt                               --             --             --            --            --
    Distributions to partners                                          --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Net cash used in financing activities                                  --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Effect of exchange rate changes on cash                                --             --             --            --            --

Net change in cash and cash equivalents                                --             --             --            --            --

Cash and cash equivalents, beginning of period                         --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Cash and cash equivalents, end of period                               --             --             --            --            --
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>


<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 6K,       SUB 2B,        SUB 3A,       SUB 4A,       SUB 4D,
                                                                    LLC.          LLC            LLC           LLC           LLC
                                                               ----------     ----------     ----------    ----------    ----------
<S>                                                            <C>            <C>            <C>           <C>           <C>
Operating activities:
    Net (loss) income                                                 671         (3,835)            44           191          (969)
    Adjustments to reconcile net income (loss) to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                   186            113             66            --            55
      Equity in earnings                                               --             --             --            --            --
      Loss on asset impairments                                        --          3,680             --            --         1,004
      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                                           --              1             --            --            --
         Prepaid expenses and other assets                             (2)           (12)            (5)           (7)           (4)
         Due from/to Interstate Hotels & Resorts                       --             --             --            --            --
         Due from subsidiaries                                       (789)            54            (80)           57           (69)
         Accounts payable, accrued expenses, accrued interest and
           other liabilities                                          (60)            --            (23)         (175)           19

                                                               ----------     ----------     ----------    ----------    ----------
Net cash provided by (used in) operating activities                     6              1              2            66            36
                                                               ----------     ----------     ----------    ----------    ----------

Cash flows from investing activities:
    Investment in hotel properties, net                                (6)            (1)            (2)          (66)          (36)
    Proceeds from sales of assets                                      --             --             --            --            --
    Net payments from Interstate Hotels & Resorts                      --             --             --            --            --
    Change in restricted cash                                          --             --             --            --            --
    Other, net                                                         --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Net cash provided by (used in) investing activities                    (6)            (1)            (2)          (66)          (36)
                                                               ----------     ----------     ----------    ----------    ----------

Cash flows from financing activities:
    Principal payments on long-term debt                               --             --             --            --            --
    Distributions to partners                                          --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Net cash used in financing activities                                  --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Effect of exchange rate changes on cash                                --             --             --            --            --

Net change in cash and cash equivalents                                --             --             --            --            --

Cash and cash equivalents, beginning of period                         --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Cash and cash equivalents, end of period                               --             --             --            --            --
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>

<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                                              (2,177)            78             57        (5,878)          240
    Adjustments to reconcile net income (loss) to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                    84            222             35           153           158
      Equity in earnings                                               --             --             --            --            --
      Loss on asset impairments                                     1,981             --             --         5,840            --
      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                                           --             --             --            --            --
         Prepaid expenses and other assets                            (10)            (7)            (7)          (32)           (5)
         Due from/to Interstate Hotels & Resorts                       --             --             --            --            --
         Due from subsidiaries                                        403           (289)           (34)           38          (356)
         Accounts payable, accrued expenses, accrued interest and
           other liabilities                                           20             33            (48)          (69)          (25)

                                                               ----------     ----------     ----------    ----------    ----------
Net cash provided by (used in) operating activities                   301             37              3            52            12
                                                               ----------     ----------     ----------    ----------    ----------

Cash flows from investing activities:
    Investment in hotel properties, net                              (301)           (37)            (3)          (52)          (12)
    Proceeds from sales of assets                                      --             --             --            --            --
    Net payments from Interstate Hotels & Resorts                      --             --             --            --            --
    Change in restricted cash                                          --             --             --            --            --
    Other, net                                                         --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Net cash provided by (used in) investing activities                  (301)           (37)            (3)          (52)          (12)
                                                               ----------     ----------     ----------    ----------    ----------

Cash flows from financing activities:
    Principal payments on long-term debt                               --             --             --            --            --
    Distributions to partners                                          --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Net cash used in financing activities                                  --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Effect of exchange rate changes on cash                                --             --             --            --            --

Net change in cash and cash equivalents                                --             --             --            --            --

Cash and cash equivalents, beginning of period                         --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Cash and cash equivalents, end of period                               --             --             --            --            --
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>


<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)


<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 1D,       SUB 7B,        SUB 7D,       SUB 7G,       SUB 6B,
                                                                    L.P.          L.P.           LLC           LLC           LLC
                                                               ----------     ----------     ----------    ----------    ----------
<S>                                                            <C>            <C>            <C>           <C>           <C>
Operating activities:
    Net (loss) income                                                 260         (7,856)           600        (6,630)           59
    Adjustments to reconcile net income (loss) to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                   578            181            421           178           116
      Equity in earnings                                               --             --             --            --            --
      Loss on asset impairments                                        --          7,894             --         6,549            --
      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                                           --             --            243            --            --
         Prepaid expenses and other assets                           (111)            (7)           (18)           (6)           (1)
         Due from/to Interstate Hotels & Resorts                       --             --             --            --            --
         Due from subsidiaries                                       (677)            35           (549)           11          (205)
         Accounts payable, accrued expenses, accrued interest and
           other liabilities                                           --           (211)          (695)          (70)           43

                                                               ----------     ----------     ----------    ----------    ----------
Net cash provided by (used in) operating activities                    50             36              2            32            12
                                                               ----------     ----------     ----------    ----------    ----------

Cash flows from investing activities:
    Investment in hotel properties, net                               (50)           (36)            (2)          (32)          (12)
    Proceeds from sales of assets                                      --             --             --            --            --
    Net payments from Interstate Hotels & Resorts                      --             --             --            --            --
    Change in restricted cash                                          --             --             --            --            --
    Other, net                                                         --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Net cash provided by (used in) investing activities                   (50)           (36)            (2)          (32)          (12)
                                                               ----------     ----------     ----------    ----------    ----------

Cash flows from financing activities:
    Principal payments on long-term debt                               --             --             --            --            --
    Distributions to partners                                          --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Net cash used in financing activities                                  --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Effect of exchange rate changes on cash                                --             --             --            --            --

Net change in cash and cash equivalents                                --             --             --            --            --

Cash and cash equivalents, beginning of period                         --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Cash and cash equivalents, end of period                               --             --             --            --            --
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>


<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR         AGH
                                                                  SUB 4L,       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                                                (111)          (276)           562           146           450
    Adjustments to reconcile net income (loss) to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                    73            365            505            51            --
      Equity in earnings                                               --             --             --            --            --
      Loss on asset impairments                                        --             --             --            --            --
      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                                           --             --             --            --            --
         Prepaid expenses and other assets                             (8)           (20)           (98)           (5)          (45)
         Due from/to Interstate Hotels & Resorts                       --             --             --            --            --
         Due from subsidiaries                                        243            (41)          (823)          (42)         (388)
         Accounts payable, accrued expenses, accrued interest and
           other liabilities                                         (179)           (15)           (76)         (145)           (1)

                                                               ----------     ----------     ----------    ----------    ----------
Net cash provided by (used in) operating activities                    18             13             70             5            16
                                                               ----------     ----------     ----------    ----------    ----------

Cash flows from investing activities:
    Investment in hotel properties, net                               (18)           (13)           (70)           (5)          (16)
    Proceeds from sales of assets                                      --             --             --            --            --
    Net payments from Interstate Hotels & Resorts                      --             --             --            --            --
    Change in restricted cash                                          --             --             --            --            --
    Other, net                                                         --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Net cash provided by (used in) investing activities                   (18)           (13)           (70)           (5)          (16)
                                                               ----------     ----------     ----------    ----------    ----------

Cash flows from financing activities:
    Principal payments on long-term debt                               --             --             --            --            --
    Distributions to partners                                          --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Net cash used in financing activities                                  --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Effect of exchange rate changes on cash                                --             --             --            --            --

Net change in cash and cash equivalents                                --             --             --            --            --

Cash and cash equivalents, beginning of period                         --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Cash and cash equivalents, end of period                               --             --             --            --            --
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>

<PAGE>


MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2003
UNAUDITED
(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                                              (7,826)           164            211           363           238
    Adjustments to reconcile net income (loss) to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                   127            279            322           118            79
      Equity in earnings                                               --             --             --            --            --
      Loss on asset impairments                                     7,650             --             --            --            --
      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                                           --             --             --            --            --
         Prepaid expenses and other assets                            (12)            (8)           (40)          (20)          (12)
         Due from/to Interstate Hotels & Resorts                       --             --             --            --            --
         Due from subsidiaries                                        135             66           (428)         (449)         (302)
         Accounts payable, accrued expenses, accrued interest and
           other liabilities                                          (74)          (267)           (25)           (4)            6

                                                               ----------     ----------     ----------    ----------    ----------
Net cash provided by (used in) operating activities                    --            234             40             8             9
                                                               ----------     ----------     ----------    ----------    ----------

Cash flows from investing activities:
    Investment in hotel properties, net                                --           (234)           (40)           (8)           (9)
    Proceeds from sales of assets                                      --             --             --            --            --
    Net payments from Interstate Hotels & Resorts                      --             --             --            --            --
    Change in restricted cash                                          --             --             --            --            --
    Other, net                                                         --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Net cash provided by (used in) investing activities                    --           (234)           (40)           (8)           (9)
                                                               ----------     ----------     ----------    ----------    ----------

Cash flows from financing activities:
    Principal payments on long-term debt                               --             --             --            --            --
    Distributions to partners                                          --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Net cash used in financing activities                                  --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Effect of exchange rate changes on cash                                --             --             --            --            --

Net change in cash and cash equivalents                                --             --             --            --            --

Cash and cash equivalents, beginning of period                         --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Cash and cash equivalents, end of period                               --             --             --            --            --
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 5O,       SUB 6M         SUB 4D,       SUB 6C,       SUB 2C,
                                                                    LLC         COMPANY          L.P.          LLC           LLC
                                                               ----------     ----------     ----------    ----------    ----------
<S>                                                            <C>            <C>            <C>           <C>           <C>
Operating activities:
    Net (loss) income                                                 157            526           (156)          403       (13,660)
    Adjustments to reconcile net income (loss) to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                    57            308            136           194           278
      Equity in earnings                                               --             --             --            --            --
      Loss on asset impairments                                        --             --             --            --        13,282
      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                                           --             --             --            --            --
         Prepaid expenses and other assets                             (8)            (8)            (9)           (7)          (31)
         Due from/to Interstate Hotels & Resorts                       --             --             --            --            --
         Due from subsidiaries                                       (205)          (880)           296          (543)           79
         Accounts payable, accrued expenses, accrued interest and
           other liabilities                                            2             58           (204)           (7)           52

                                                               ----------     ----------     ----------    ----------    ----------
Net cash provided by (used in) operating activities                     3              4             63            40            --
                                                               ----------     ----------     ----------    ----------    ----------

Cash flows from investing activities:
    Investment in hotel properties, net                                (3)            (4)           (63)          (40)           --
    Proceeds from sales of assets                                      --             --             --            --            --
    Net payments from Interstate Hotels & Resorts                      --             --             --            --            --
    Change in restricted cash                                          --             --             --            --            --
    Other, net                                                         --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Net cash provided by (used in) investing activities                    (3)            (4)           (63)          (40)           --
                                                               ----------     ----------     ----------    ----------    ----------

Cash flows from financing activities:
    Principal payments on long-term debt                               --             --             --            --            --
    Distributions to partners                                          --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Net cash used in financing activities                                  --             --             --            --            --
                                                               ----------     ----------     ----------    ----------    ----------

Effect of exchange rate changes on cash                                --             --             --            --            --

Net change in cash and cash equivalents                                --             --             --            --            --

Cash and cash equivalents, beginning of period                         --             --             --            --            --

                                                               ----------     ----------     ----------    ----------    ----------
Cash and cash equivalents, end of period                               --             --             --            --            --
                                                               ==========     ==========     ==========    ==========    ==========
</TABLE>



<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2003
UNAUDITED
(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                                                 149           (491)        1,012            177         1,449
    Adjustments to reconcile net income (loss) to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                   225            130         1,572              1           871
      Equity in earnings                                               --             --            --             --            --
      Loss on asset impairments                                        --            695            --             --            --
      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                                           --             --            --             --            --
         Prepaid expenses and other assets                            (50)            (7)         (140)            (6)         (147)
         Due from/to Interstate Hotels & Resorts                       --             --            --             --            --
         Due from subsidiaries                                         69           (348)       (2,333)          (172)         (791)
         Accounts payable, accrued expenses, accrued interest and
           other liabilities                                         (386)            56            47             --          (168)

                                                               ----------     ----------    ----------     ----------    ----------
Net cash provided by (used in) operating activities                     7             35           158             --         1,214
                                                               ----------     ----------    ----------     ----------    ----------

Cash flows from investing activities:
    Investment in hotel properties, net                                (7)           (35)         (158)            --        (1,214)
    Proceeds from sales of assets                                      --             --            --             --            --
    Net payments from Interstate Hotels & Resorts                      --             --            --             --            --
    Change in restricted cash                                          --             --            --             --            --
    Other, net                                                         --             --            --             --            --

                                                               ----------     ----------    ----------     ----------    ----------
Net cash provided by (used in) investing activities                    (7)           (35)         (158)            --        (1,214)
                                                               ----------     ----------    ----------     ----------    ----------

Cash flows from financing activities:
    Principal payments on long-term debt                               --             --            --             --            --
    Distributions to partners                                          --             --            --             --            --

                                                               ----------     ----------    ----------     ----------    ----------
Net cash used in financing activities                                  --             --            --             --            --
                                                               ----------     ----------    ----------     ----------    ----------

Effect of exchange rate changes on cash                                --             --            --             --            --

Net change in cash and cash equivalents                                --             --            --             --            --

Cash and cash equivalents, beginning of period                         --             --            --             --            --

                                                               ----------     ----------    ----------     ----------    ----------
Cash and cash equivalents, end of period                               --             --            --             --            --
                                                               ==========     ==========    ==========     ==========    ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR     MERISTAR
                                                                  SUB 5Q,       SUB 5A,        SUB 8D,       SUB 4J,   HOTEL LESSEE,
                                                                    LLC           LLC            LLC           LLC          INC.
                                                               ----------     ----------     ----------    ----------  -------------
<S>                                                            <C>            <C>            <C>           <C>           <C>
Operating activities:
    Net (loss) income                                                 419            351           172            274        (8,222)
    Adjustments to reconcile net income (loss) to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                   140            386           314            326           (73)
      Equity in earnings                                               --             --            --             --            --
      Loss on asset impairments                                        --             --            --             --            --
      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                                           --             --            --             (8)      (12,249)
         Prepaid expenses and other assets                            (28)           (16)           (8)           (11)         (977)
         Due from/to Interstate Hotels & Resorts                       --             --            --             --           (44)
         Due from subsidiaries                                       (413)          (697)         (332)          (459)        7,941
         Accounts payable, accrued expenses, accrued interest and
           other liabilities                                          (29)            36           (16)          (110)        6,711

                                                               ----------     ----------    ----------     ----------    ----------
Net cash provided by (used in) operating activities                    89             60           130             12        (6,913)
                                                               ----------     ----------    ----------     ----------    ----------

Cash flows from investing activities:
    Investment in hotel properties, net                               (89)           (60)         (130)           (12)            4
    Proceeds from sales of assets                                      --             --            --             --            --
    Net payments from Interstate Hotels & Resorts                      --             --            --             --            --
    Change in restricted cash                                          --             --            --             --            --
    Other, net                                                         --             --            --             --            --

                                                               ----------     ----------    ----------     ----------    ----------
Net cash provided by (used in) investing activities                   (89)           (60)         (130)           (12)            4
                                                               ----------     ----------    ----------     ----------    ----------

Cash flows from financing activities:
    Principal payments on long-term debt                               --             --            --             --        12,249
    Distributions to partners                                          --             --            --             --            --

                                                               ----------     ----------    ----------     ----------    ----------
Net cash used in financing activities                                  --             --            --             --        12,249
                                                               ----------     ----------    ----------     ----------    ----------

Effect of exchange rate changes on cash                                --             --            --             --            --

Net change in cash and cash equivalents                                --             --            --             --         5,340

Cash and cash equivalents, beginning of period                         --             --            --             --        12,517

                                                               ----------     ----------    ----------     ----------    ----------
Cash and cash equivalents, end of period                               --             --            --             --        17,857
                                                               ==========     ==========    ==========     ==========    ==========
</TABLE>

<PAGE>

MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2003
UNAUDITED
(DOLLARS IN THOUSANDS)


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

Operating activities:
    Net (loss) income                                                    (47,216)       44,064       (73,198)
    Adjustments to reconcile net income (loss) to net cash
      provided by (used in) operating activities:
      Depreciation and amortization                                       13,700            --        28,706
      Equity in earnings                                                      --       (44,064)           --
      Loss on asset impairments                                           52,702            --        56,677
      Minority interests                                                      --            --            11
      Amortization of unearned stock-based compensation                       --            --           976
      Unrealized gain on interest rate swaps recognized in net loss           --            --        (2,055)
      Deferred income taxes                                                   --            --          (682)
      Changes in operating assets and liabilities:                            --            --            --
         Accounts receivable                                             (11,962)           --       (12,937)
         Prepaid expenses and other assets                                (2,297)           --         1,416
         Due from/to Interstate Hotels & Resorts                             (44)           --            93
         Due from subsidiaries                                           (10,638)           --            --
         Accounts payable, accrued expenses, accrued interest and             --            --
           other liabilities                                               2,847            --        (9,236)
                                                                         -------       -------       -------
Net cash provided by (used in) operating activities                       (2,908)           --       (10,229)
                                                                         -------       -------       -------

Cash flows from investing activities:
    Investment in hotel properties, net                                   (3,990)           --        (8,622)
    Proceeds from sales of assets                                             --            --        12,650
    Net payments from Interstate Hotels & Resorts                             --            --        42,052
    Change in restricted cash                                                 --            --        (1,656)
    Other, net                                                                --            --          (299)
                                                                         -------       -------       -------
Net cash provided by (used in) investing activities                       (3,990)           --        44,125
                                                                         -------       -------       -------

Cash flows from financing activities:
    Principal payments on long-term debt                                  12,238            --        (1,889)
    Distributions to partners                                                 --            --          (141)

                                                                         -------       -------       -------
Net cash used in financing activities                                     12,238            --        (2,030)
                                                                         -------       -------       -------

Effect of exchange rate changes on cash                                       --            --          (274)

Net change in cash and cash equivalents                                    5,340            --        31,592

Cash and cash equivalents, beginning of period                            12,517            --        33,889
                                                                         -------       -------       -------
Cash and cash equivalents, end of period                                  17,857            --        65,481
                                                                         =======       =======       =======
</TABLE>


<PAGE>


MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2002
UNAUDITED
(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 income (loss)                                              (10,324)         9,714            --             --           261
   Adjustments to reconcile net income (loss) to net cash
     provided by (used in) operating activities:
    Depreciation and amortization                                   2,671         13,259            --             --            33
    Equity in earnings of affiliates                              (23,860)            --            --             --            --
    Write off of deferred financing costs                           1,529             --            --             --            --
    Loss on fair value of non-hedging derivatives                   4,735             --            --             --            --
    Minority interests                                                 11             --            --             --            --
    Amortization of unearned stock based compensation                 880             --            --             --            --
    Unrealized gain on interest rate swaps recognized in
      net loss                                                     (2,887)            --            --             --            --
    Deferred income taxes                                            (281)            --            --             --            --
    Changes in operating assets and liabilities:                       --             --            --             --            --
      Accounts receivable                                          (2,731)          (111)           --             --           (16)
      Prepaid expenses and other assets                             2,033            502            --             --            --
      Due from/to Interstate Hotels & Resorts                        (589)            --            --             --            --
      Due from subsidiaries                                        24,316        (11,553)           --             --          (299)
      Accounts payable, accrued expenses, accrued interests, and
          other liabilities                                        (6,816)        (5,539)           --             --            26

                                                               ----------     ----------    ----------     ----------    ----------
      Net cash (used in) provided by operating activities         (11,313)         6,272            --             --             5
                                                               ----------     ----------    ----------     ----------    ----------

Investing activities:

   Investment in hotel properties                                    (833)        (5,862)           --             --            (5)
   Proceeds from sale of assets                                        --             --            --             --            --
   Net payments from (advances to) Interstate Hotels & Retorts     (9,000)          (389)           --             --            --
   (Decrease) increase in restricted cash                           1,093          1,859            --             --            --

                                                               ----------     ----------    ----------     ----------    ----------
      Net cash (used in) provided by investing activities          (8,740)        (4,392)           --             --            (5)
                                                               ----------     ----------    ----------     ----------    ----------

Financing activities:

   Deferred financing costs                                        (3,131)            --            --             --            --
   Proceeds from issuance of long-term debt                       234,545             --            --             --            --
   Principal payments on long-term debt                          (215,000)        (1,880)           --             --            --
   Contributions from partners                                      3,155             --            --             --            --
   Repurchase of units                                               (409)            --            --             --            --
   Distributions paid to partners                                  (1,264)            --            --             --            --

                                                               ----------     ----------    ----------     ----------    ----------
      Net cash provided by (used in) financing activities          17,896         (1,880)           --             --            --
                                                               ----------     ----------    ----------     ----------    ----------

Effect of exchange rate changes on cash                              (271)            --            --             --            --

Net increase (decrease) in cash and cash equivalents               (2,428)            --            --             --            --

Cash and cash equivalents, beginning of period                      6,798             --            --             --            --

                                                               ----------     ----------    ----------     ----------    ----------
Cash and cash equivalents, end of period                            4,370             --            --             --            --
                                                               ==========     ==========    ==========     ==========    ==========
</TABLE>

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

   Net income (loss)                                                  252            229            --            246           852
   Adjustments to reconcile net income (loss) to net cash
     provided by (used in) operating activities:
    Depreciation and amortization                                      59            113            --            107           595
    Equity in earnings of affiliates                                   --             --            --             --            --
    Write off of deferred financing costs                              --             --            --             --            --
    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                                             (16)             8            --             --            --
      Prepaid expenses and other assets                                --             19            --             --            --
      Due from/to Interstate Hotels & Resorts                          --             --            --             --            --
      Due from subsidiaries                                        (2,282)          (414)           --           (361)       (1,161)
      Accounts payable, accrued expenses, accrued interests, and
          other liabilities                                            --             50            --              8           294

                                                               ----------     ----------    ----------     ----------    ----------
      Net cash (used in) provided by operating activities          (1,987)             5            --             --           580
                                                               ----------     ----------    ----------     ----------    ----------

Investing activities:

   Investment in hotel properties                                   1,987             (5)           --             --          (580)
   Proceeds from sale of assets                                        --             --            --             --            --
   Net payments from (advances to) Interstate Hotels & Resorts         --             --            --             --            --
   (Decrease) increase in restricted cash                              --             --            --             --            --

                                                               ----------     ----------    ----------     ----------    ----------
      Net cash (used in) provided by investing activities           1,987             (5)           --             --          (580)
                                                               ----------     ----------    ----------     ----------    ----------

Financing activities:

   Deferred financing costs                                            --             --            --             --            --
   Proceeds from issuance of long-term debt                            --             --            --             --            --
   Principal payments on long-term debt                                --             --            --             --            --
   Contributions from partners                                         --             --            --             --            --
   Repurchase of units                                                 --             --            --             --            --
   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.
CONSOLIDATING STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2002
UNAUDITED
(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 income (loss)                                                  (39)           195           124            257           256
   Adjustments to reconcile net income (loss) to net cash
     provided by (used in) operating activities:
    Depreciation and amortization                                     257            147           118             33           176
    Equity in earnings of affiliates                                   --             --            --             --            --
    Write off of deferred financing costs                              --             --            --             --            --
    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                                              --             --            --             --            --
      Prepaid expenses and other assets                               (30)            --            --             --            --
      Due from/to Interstate Hotels & Resorts                          --             --            --             --            --
      Due from subsidiaries                                          (254)          (249)         (251)          (338)         (561)
      Accounts payable, accrued expenses, accrued interests,
          and other liabilities                                       154            (48)           28             52           148

                                                               ----------     ----------    ----------     ----------    ----------
      Net cash (used in) provided by operating activities              88             45            19              4            19
                                                               ----------     ----------    ----------     ----------    ----------

Investing activities:

   Investment in hotel properties                                     (88)           (45)          (19)            (4)          (19)
   Proceeds from sale of assets                                        --             --            --             --            --
   Net payments from (advances to) Interstate Hotels & Resorts         --             --            --             --            --
   (Decrease) increase in restricted cash                              --             --            --             --            --

                                                               ----------     ----------    ----------     ----------    ----------
      Net cash (used in) provided by investing activities             (88)           (45)          (19)            (4)          (19)
                                                               ----------     ----------    ----------     ----------    ----------

Financing activities:

   Deferred financing costs                                            --             --            --             --            --
   Proceeds from issuance of long-term debt                            --             --            --             --            --
   Principal payments on long-term debt                                --             --            --             --            --
   Contributions from partners                                         --             --            --             --            --
   Repurchase of units                                                 --             --            --             --            --
   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 5B,       SUB 8A,        SUB 6D,       SUB 6E,       SUB 4E,
                                                                    LLC.          LLC            LLC           LLC           L.P.
                                                               ----------     ----------     ----------    ----------    ----------
<S>                                                            <C>            <C>            <C>           <C>           <C>
Operating activities:

   Net income (loss)                                                   --             --           350            644            24
   Adjustments to reconcile net income (loss) to net cash
     provided by (used in) operating activities:
    Depreciation and amortization                                      --             --           133            425           230
    Equity in earnings of affiliates                                   --             --            --             --            --
    Write off of deferred financing costs                              --             --            --             --            --
    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                                              --             --           (10)            --            --
      Prepaid expenses and other assets                                --              1            --             --            --
      Due from/to Interstate Hotels & Resorts                          --             --            --             --            --
      Due from subsidiaries                                            --             46          (378)        (1,089)          148
      Accounts payable, accrued expenses, accrued interests,
          and other liabilities                                        --            (46)           21            262          (337)

                                                               ----------     ----------    ----------     ----------    ----------
      Net cash (used in) provided by operating activities              --              1           116            242            65
                                                               ----------     ----------    ----------     ----------    ----------

Investing activities:

   Investment in hotel properties                                      --             (1)         (116)          (242)          (65)
   Proceeds from sale of assets                                        --             --            --             --            --
   Net payments from (advances to) Interstate Hotels & Resorts         --             --            --             --            --
   (Decrease) increase in restricted cash                              --             --            --             --            --

                                                               ----------     ----------    ----------     ----------    ----------
      Net cash (used in) provided by investing activities              --             (1)         (116)          (242)          (65)
                                                               ----------     ----------    ----------     ----------    ----------

Financing activities:

   Deferred financing costs                                            --             --            --             --            --
   Proceeds from issuance of long-term debt                            --             --            --             --            --
   Principal payments on long-term debt                                --             --            --             --            --
   Contributions from partners                                         --             --            --             --            --
   Repurchase of units                                                 --             --            --             --            --
   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.
CONSOLIDATING STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2002
UNAUDITED
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                 MERISTAR      MERISTAR       MERISTAR      MERISTAR      MERISTAR
                                                                  SUB 1B,       SUB 5F,        SUB 6G,       SUB 8C,       SUB 4C,
                                                                    LLC           LLC            LLC           LLC           L.P.
                                                               ----------     ----------     ----------    ----------    ----------
<S>                                                            <C>            <C>            <C>           <C>           <C>
Operating activities:

   Net income (loss)                                                  892            460           288              3            66
   Adjustments to reconcile net income (loss) to net cash
     provided by (used in) operating activities:
    Depreciation and amortization                                     158            264           209            346           152
    Equity in earnings of affiliates                                   --             --            --             --            --
    Write off of deferred financing costs                              --             --            --             --            --
    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                                              --             --            --             --            --
      Prepaid expenses and other assets                                --             --            --             --            --
      Due from/to Interstate Hotels & Resorts                          --             --            --             --            --
      Due from subsidiaries                                          (911)          (812)         (414)          (109)           39
      Accounts payable, accrued expenses, accrued interests,
          and other liabilities                                         6            142            90           (153)         (235)

                                                               ----------     ----------    ----------     ----------    ----------
      Net cash (used in) provided by operating activities             145             54           173             87            22
                                                               ----------     ----------    ----------     ----------    ----------

Investing activities:

   Investment in hotel properties                                    (145)           (54)         (173)           (87)          (22)
   Proceeds from sale of assets                                        --             --            --             --            --
   Net payments from (advances to) Interstate Hotels & Resorts         --             --            --             --            --
   (Decrease) increase in restricted cash                              --             --            --             --            --

                                                               ----------     ----------    ----------     ----------    ----------
      Net cash (used in) provided by investing activities            (145)           (54)         (173)           (87)          (22)
                                                               ----------     ----------    ----------     ----------    ----------

Financing activities:

   Deferred financing costs                                            --             --            --             --            --
   Proceeds from issuance of long-term debt                            --             --            --             --            --
   Principal payments on long-term debt                                --             --            --             --            --
   Contributions from partners                                         --             --            --             --            --
   Repurchase of units                                                 --             --            --             --            --
   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 4H,       SUB 7E,        SUB 3D,       SUB 1A,      SUB 5E,
                                                                    L.P.          LLC            LLC           LLC.        LLC
                                                               ----------     ----------     ----------    ----------  ------------
<S>                                                            <C>            <C>            <C>           <C>           <C>
Operating activities:

   Net income (loss)                                                   (9)           170           464            205           507
   Adjustments to reconcile net income (loss) to net cash
     provided by (used in) operating activities:
    Depreciation and amortization                                     135            158           240            119           485
    Equity in earnings of affiliates                                   --             --            --             --            --
    Write off of deferred financing costs                              --             --            --             --            --
    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                                              --             --            --             --            --
      Prepaid expenses and other assets                               (10)            --            --             --            --
      Due from/to Interstate Hotels & Resorts                          --             --            --             --            --
      Due from subsidiaries                                            56           (280)         (701)          (268)       (1,023)
      Accounts payable, accrued expenses, accrued interests,
          and other liabilities                                      (146)           (30)           53            (43)           38

                                                               ----------     ----------    ----------     ----------    ----------
      Net cash (used in) provided by operating activities              26             18            56             13             7
                                                               ----------     ----------    ----------     ----------    ----------

Investing activities:

   Investment in hotel properties                                     (26)           (18)          (56)           (13)           (7)
   Proceeds from sale of assets                                        --             --            --             --            --
   Net payments from (advances to) Interstate Hotels & Resorts         --             --            --             --            --
   (Decrease) increase in restricted cash                              --             --            --             --            --

                                                               ----------     ----------    ----------     ----------    ----------
      Net cash (used in) provided by investing activities             (26)           (18)          (56)           (13)           (7)
                                                                              ----------    ----------     ----------    ----------

Financing activities:

   Deferred financing costs                                            --             --            --             --            --
   Proceeds from issuance of long-term debt                            --             --            --             --            --
   Principal payments on long-term debt                                --             --            --             --            --
   Contributions from partners                                         --             --            --             --            --
   Repurchase of units                                                 --             --            --             --            --
   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.
CONSOLIDATING STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2002
UNAUDITED
(DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                              MERISTAR SUB     MERISTAR       MERISTAR      MERISTAR      MERISTAR
                                                                7A JOINT        SUB 6K,        SUB 2B,       SUB 3A,       SUB 4A,
                                                                VENTURE          LLC            LLC           LLC           L.P.
                                                               ----------     ----------     ----------    ----------    ----------
<S>                                                            <C>            <C>            <C>           <C>           <C>
Operating activities:

   Net income (loss)                                                  118            584          (127)            39           195
   Adjustments to reconcile net income (loss) to net cash
     provided by (used in) operating activities:
    Depreciation and amortization                                     104            186           105             71            --
    Equity in earnings of affiliates                                   --             --            --             --            --
    Write off of deferred financing costs                              --             --            --             --            --
    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                                              --             --            --             --            --
      Prepaid expenses and other assets                                --             --            --             --            --
      Due from/to Interstate Hotels & Resorts                          --             --            --             --            --
      Due from subsidiaries                                           (22)          (782)           51            361            17
      Accounts payable, accrued expenses, accrued interests,
          and other liabilities                                       (65)           117            --             17          (155)

                                                               ----------     ----------    ----------     ----------    ----------
      Net cash (used in) provided by operating activities             135            105            29            488            57
                                                               ----------     ----------    ----------     ----------    ----------

Investing activities:

   Investment in hotel properties                                    (135)          (105)          (26)          (488)          (57)
   Proceeds from sale of assets                                        --             --            --             --            --
   Net payments from (advances to) Interstate Hotels & Resorts         --             --            --             --            --
   (Decrease) increase in restricted cash                              --             --            --             --            --

                                                               ----------     ----------    ----------     ----------    ----------
      Net cash (used in) provided by investing activities            (135)          (105)          (26)          (488)          (57)
                                                               ----------     ----------    ----------     ----------    ----------

Financing activities:

   Deferred financing costs                                            --             --            --             --            --
   Proceeds from issuance of long-term debt                            --             --            --             --            --
   Principal payments on long-term debt                                --             --            (3)            --            --
   Contributions from partners                                         --             --            --             --            --
   Repurchase of units                                                 --             --            --             --            --
   Distributions paid to partners                                      --             --            --             --            --

                                                               ----------     ----------    ----------     ----------    ----------
      Net cash provided by (used in) financing activities              --             --            (3)            --            --
                                                               ----------     ----------    ----------     ----------    ----------

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          MDV        MERISTAR
                                                                  SUB 4D,       SUB 2A,       SUB 6L,        LIMITED       SUB 5C,
                                                                    LLC.          LLC           LLC        PARTNERSHIP       LLC
                                                               ----------     ----------     ----------    ----------    ----------
<S>                                                            <C>            <C>            <C>           <C>           <C>
Operating activities:

   Net income (loss)                                                   --           (157)           79            119            20
   Adjustments to reconcile net income (loss) to net cash
     provided by (used in) operating activities:
    Depreciation and amortization                                      80             78           222             34           149
    Equity in earnings of affiliates                                   --             --            --             --            --
    Write off of deferred financing costs                              --             --            --             --            --
    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                                              --             --            --             --            --
      Prepaid expenses and other assets                                --             --            --              4           (40)
      Due from/to Interstate Hotels & Resorts                          --             --            --             --            --
      Due from subsidiaries                                           (48)            43          (291)          (125)         (134)
      Accounts payable, accrued expenses, accrued interests,
          and other liabilities                                        37             37            49            (29)           25

                                                               ----------     ----------    ----------     ----------    ----------
      Net cash (used in) provided by operating activities              69              1            59              3            20
                                                               ----------     ----------    ----------     ----------    ----------

Investing activities:

   Investment in hotel properties                                     (69)             4           (59)            (3)          (20)
   Proceeds from sale of assets                                        --             --            --             --            --
   Net payments from (advances to) Interstate Hotels & Resorts         --             --            --             --            --
   (Decrease) increase in restricted cash                              --             --            --             --            --

                                                               ----------     ----------    ----------     ----------    ----------
      Net cash (used in) provided by investing activities             (69)             4           (59)            (3)          (20)
                                                               ----------     ----------    ----------     ----------    ----------

Financing activities:

   Deferred financing costs                                            --             --            --             --            --
   Proceeds from issuance of long-term debt                            --             --            --             --            --
   Principal payments on long-term debt                                --             (5)           --             --            --
   Contributions from partners                                         --             --            --             --            --
   Repurchase of units                                                 --             --            --             --            --
   Distributions paid to partners                                      --             --            --             --            --

                                                               ----------     ----------    ----------     ----------    ----------
      Net cash provided by (used in) financing activities              --             (5)           --             --            --
                                                               ----------     ----------    ----------     ----------    ----------

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
THREE MONTHS ENDED MARCH 31, 2002
UNAUDITED
(DOLLARS IN THOUSANDS)


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

   Net income (loss)                                                  423            659           (60)           307           (96)
   Adjustments to reconcile net income (loss) to net cash
     provided by (used in) operating activities:
    Depreciation and amortization                                     162            554           231            416           189
    Equity in earnings of affiliates                                   --             --            --             --            --
    Write off of deferred financing costs                              --             --            --             --            --
    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                                              --             --            --            267            --
      Prepaid expenses and other assets                                --             --            --             --            --
      Due from/to Interstate Hotels & Resorts                          --             --            --             --            --
      Due from subsidiaries                                          (564)          (693)           66           (352)           69
      Accounts payable, accrued expenses, accrued interests,
          and other liabilities                                        60           (197)         (233)          (572)         (143)

                                                               ----------     ----------    ----------     ----------    ----------
      Net cash (used in) provided by operating activities              81            323             4             66            19
                                                               ----------     ----------    ----------     ----------    ----------

Investing activities:

   Investment in hotel properties                                     (81)          (323)           (4)           (66)          (19)
   Proceeds from sale of assets                                        --             --            --             --            --
   Net payments from (advances to) Interstate Hotels & Resorts         --             --            --             --            --
   (Decrease) increase in restricted cash                              --             --            --             --            --

                                                               ----------     ----------    ----------     ----------    ----------
      Net cash (used in) provided by investing activities             (81)          (323)           (4)           (66)          (19)
                                                               ----------     ----------    ----------     ----------    ----------

Financing activities:

   Deferred financing costs                                            --             --            --             --            --
   Proceeds from issuance of long-term debt                            --             --            --             --            --
   Principal payments on long-term debt                                --             --            --             --            --
   Contributions from partners                                         --             --            --             --            --
   Repurchase of units                                                 --             --            --             --            --
   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 6B,       SUB 4I,        SUB 5D,       SUB 5H,       SUB 7H,
                                                                    LLC           L.P.           LLC           LLC           LLC
                                                               ----------     ----------     ----------    ----------    ----------
<S>                                                            <C>            <C>            <C>           <C>           <C>
Operating activities:

   Net income (loss)                                                   80           (191)         (432)           596            76
   Adjustments to reconcile net income (loss) to net cash
     provided by (used in) operating activities:
    Depreciation and amortization                                     114            144           362            493           152
    Equity in earnings of affiliates                                   --             --            --             --            --
    Write off of deferred financing costs                              --             --            --             --            --
    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                                              --             --            --             --            --
      Prepaid expenses and other assets                                --             --            --             --            --
      Due from/to Interstate Hotels & Resorts                          --             --            --             --            --
      Due from subsidiaries                                          (158)           287            95         (1,104)         (107)
      Accounts payable, accrued expenses, accrued interests,
          and other liabilities                                        14           (168)           18            391           (94)

                                                               ----------     ----------    ----------     ----------    ----------
      Net cash (used in) provided by operating activities              50             72            43            376            27
                                                               ----------     ----------    ----------     ----------    ----------

Investing activities:

   Investment in hotel properties                                     (50)           (72)          (43)          (376)          (27)
   Proceeds from sale of assets                                        --             --            --             --            --
   Net payments from (advances to) Interstate Hotels & Resorts         --             --            --             --            --
   (Decrease) increase in restricted cash                              --             --            --             --            --

                                                               ----------     ----------    ----------     ----------    ----------
      Net cash (used in) provided by investing activities             (50)           (72)          (43)          (376)          (27)
                                                               ----------     ----------    ----------     ----------    ----------

Financing activities:

   Deferred financing costs                                            --             --            --             --            --
   Proceeds from issuance of long-term debt                            --             --            --             --            --
   Principal payments on long-term debt                                --             --            --             --            --
   Contributions from partners                                         --             --            --             --            --
   Repurchase of units                                                 --             --            --             --            --
   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.
CONSOLIDATING STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2002
UNAUDITED
(DOLLARS IN THOUSANDS)


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

   Net income (loss)                                                  641           (120)          105            385           465
   Adjustments to reconcile net income (loss) to net cash
     provided by (used in) operating activities:
    Depreciation and amortization                                      --            117           280            297           113
    Equity in earnings of affiliates                                   --             --            --             --            --
    Write off of deferred financing costs                              --             --            --             --            --
    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                                              --             --            --             --            --
      Prepaid expenses and other assets                                --             --            --             --            --
      Due from/to Interstate Hotels & Resorts                          --             --            --             --            --
      Due from subsidiaries                                          (563)            77            65           (295)         (665)
      Accounts payable, accrued expenses, accrued interests,
          and other liabili1ies                                       172            (70)         (254)            44           132

                                                               ----------     ----------    ----------     ----------    ----------
      Net cash (used in) provided by operating activities             250              4           196            431            45
                                                               ----------     ----------    ----------     ----------    ----------

Investing activities:

   Investment in hotel properties                                    (250)             1          (196)          (431)          (45)
   Proceeds from sale of assets                                        --             --            --             --            --
   Net payments from (advances to) Interstate Hotels & Resorts         --             --            --             --            --
   (Decrease) increase in restricted cash                              --             --            --             --            --

                                                               ----------     ----------    ----------     ----------    ----------
      Net cash (used in) provided by investing activities            (250)             1          (196)          (431)          (45)
                                                               ----------     ----------    ----------     ----------    ----------

Financing activities:

   Deferred financing costs                                            --             --            --             --            --
   Proceeds from issuance of long-term debt                            --             --            --             --            --
   Principal payments on long-term debt                                --             (5)           --             --            --
   Contributions from partners                                         --             --            --             --            --
   Repurchase of units                                                 --             --            --             --            --
   Distributions paid to partners                                      --             --            --             --            --

                                                               ----------     ----------    ----------     ----------    ----------
      Net cash provided by (used in) financing activities              --             (5)           --             --            --
                                                               ----------     ----------    ----------     ----------    ----------

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

   Net income (loss)                                                  209            188           548           (152)          476
   Adjustments to reconcile net income (loss) to net cash
     provided by (used in) operating activities:
    Depreciation and amortization                                      76             55           302            177           199
    Equity in earnings of affiliates                                   --             --            --             --            --
    Write off of deferred financing costs                              --             --            --             --            --
    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                                              --             --            --             --            --
      Prepaid expenses and other assets                                --             --            --             --            --
      Due from/to Interstate Hotels & Resorts                          --             --            --             --            --
      Due from subsidiaries                                          (218)          (267)         (840)           824          (645)
      Accounts payable, accrued expenses, accrued interests,
          and other liabilities                                       (40)            47            68           (142)           24

                                                               ----------     ----------    ----------     ----------    ----------
      Net cash (used in) provided by operating activities              27             23            78            707            54
                                                               ----------     ----------    ----------     ----------    ----------

Investing activities:

   Investment in hotel properties                                     (27)           (23)          (78)          (707)          (54)
   Proceeds from sale of assets                                        --             --            --             --            --
   Net payments from (advances to) Interstate Hotels & Resorts         --             --            --             --            --
   (Decrease) increase in restricted cash                              --             --            --             --            --

                                                               ----------     ----------    ----------     ----------    ----------
      Net cash (used in) provided by investing activities             (27)           (23)          (78)          (707)          (54)
                                                               ----------     ----------    ----------     ----------    ----------

Financing activities:

   Deferred financing costs                                            --             --            --             --            --
   Proceeds from issuance of long-term debt                            --             --            --             --            --
   Principal payments on long-term debt                                --             --            --             --            --
   Contributions from partners                                         --             --            --             --            --
   Repurchase of units                                                 --             --            --             --            --
   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.
CONSOLIDATING STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2002
UNAUDITED
(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>
Operating activities:

   Net income (loss)                                                 (311)           385            70          1,253           113
   Adjustments to reconcile net income (loss) to net cash
     provided by (used in) operating activities:
    Depreciation and amortization                                     255            229           230          1,548            --
    Equity in earnings of affiliates                                   --             --            --             --            --
    Write off of deferred financing costs                              --             --            --             --            --
    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                                              --             --            --             --           329
      Prepaid expenses and other assets                                --             --            --             --            --
      Due from/to Interstate Hotels & Resorts                          --             --            --             --            --
      Due from subsidiaries                                            30           (220)         (252)        (2,492)         (448)
      Accounts payable, accrued expenses, accrued interests,
          and other liabilities                                        27           (380)          146            466             6

                                                               ----------     ----------    ----------     ----------    ----------
      Net cash (used in) provided by operating activities               1             14           194            775            --
                                                               ----------     ----------    ----------     ----------    ----------

Investing activities:

   Investment in hotel properties                                       7            (14)         (194)          (775)           --
   Proceeds from sale of assets                                        --             --            --             --            --
   Net payments from (advances to) Interstate Hotels & Resorts         --             --            --             --            --
   (Decrease) increase in restricted cash                              --             --            --             --            --

                                                               ----------     ----------    ----------     ----------    ----------
      Net cash (used in) provided by investing activities               7            (14)         (194)          (775)           --
                                                               ----------     ----------    ----------     ----------    ----------

Financing activities:

   Deferred financing costs                                            --             --            --             --            --
   Proceeds from issuance of long-term debt                            --             --            --             --            --
   Principal payments on long-term debt                                (8)            --            --             --            --
   Contributions from partners                                         --             --            --             --            --
   Repurchase of units                                                 --             --            --             --            --
   Distributions paid to partners                                      --             --            --             --            --

                                                               ----------     ----------    ----------     ----------    ----------
      Net cash provided by (used in) financing activities              (8)            --            --             --            --
                                                               ----------     ----------    ----------     ----------    ----------

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

   Net income (loss)                                                1,479            487           448            161           316
   Adjustments to reconcile net income (loss) to net cash
     provided by (used in) operating activities:
    Depreciation and amortization                                     866            120           313            317           336
    Equity in earnings of affiliates                                   --             --            --             --            --
    Write off of deferred financing costs                              --             --            --             --            --
    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                                              --             --            --             --            31
      Prepaid expenses and other assets                               483             --            --             --            --
      Due from/to Interstate Hotels & Resorts                          --             --            --             --            --
      Due from subsidiaries                                        (3,168)          (418)         (861)          (442)         (478)
      Accounts payable, accrued expenses, accrued interests,
          and other liabilities                                       804            160           211            (15)         (159)

                                                               ----------     ----------    ----------     ----------    ----------
      Net cash (used in) provided by operating activities             464            349           111             21            46
                                                               ----------     ----------    ----------     ----------    ----------

Investing activities:

   Investment in hotel properties                                    (464)          (349)         (111)           (21)          (46)
   Proceeds from sale of assets                                        --             --            --             --            --
   Net payments from (advances to) Interstate Hotels & Resorts         --             --            --             --            --
   (Decrease) increase in restricted cash                              --             --            --             --            --

                                                               ----------     ----------    ----------     ----------    ----------
      Net cash (used in) provided by investing activities            (464)          (349)         (111)           (21)          (46)
                                                               ----------     ----------    ----------     ----------    ----------

Financing activities:

   Deferred financing costs                                            --             --            --             --            --
   Proceeds from issuance of long-term debt                            --             --            --             --            --
   Principal payments on long-term debt                                --             --            --             --            --
   Contributions from partners                                         --             --            --             --            --
   Repurchase of units                                                 --             --            --             --            --
   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.
CONSOLIDATING STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2002
UNAUDITED
(DOLLARS IN THOUSANDS)


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

Operating activities:

   Net income (loss)                                                  (1,929)        14,146        (23,860)       (10,324)
   Adjustments to reconcile net income (loss) to net cash                 --             --
     provided by (used in) operating activities:                          --             --
    Depreciation and amortization                                        294         14,662             --         30,592
    Equity in earnings of affiliates                                      --             --         23,860             --
    Write off of deferred financing costs                                 --             --             --          1,529
    Loss on fair value of non-hedging derivatives                         --             --             --          4,735
    Minority interests                                                    --             --             --             11
    Amortization of unearned stock based compensation                     --             --             --            880
    Unrealized gain on interest rate swaps recognized in
      net loss                                                            --             --             --         (2,887)
    Deferred income taxes                                                 --             --             --           (281)
    Changes in operating assets and liabilities:                          --             --             --             --
      Accounts receivable                                            (10,005)        (9,412)            --        (12,254)
      Prepaid expenses and other assets                               (1,328)          (901)            --          1,634
      Due from/to Interstate Hotels & Resorts                            365            365             --           (224)
      Due from subsidiaries                                           13,770        (12,763)            --             --
      Accounts payable, accrued expenses, accrued interests,
          and other liabilies                                          7,395          8,085             --         (4,270)
                                                                    --------       --------       --------       --------
      Net cash (used in) provided by operating activities              8,562         14,182             --          9,141
                                                                    --------       --------       --------       --------
Investing activities:
   Investment in hotel properties                                          2         (5,597)            --        (12,292)
   Proceeds from sale of assets                                           --             --             --             --
   Net payments from (advances to) Interstate Hotels & Resorts           389            389             --         (9,000)
   (Decrease) increase in restricted cash                                 --             --             --          2,952
                                                                                                                 --------
                                                                    --------       --------       --------       --------
      Net cash (used in) provided by investing activities                391         (5,208)            --        (18,340)
                                                                    --------       --------       --------       --------
Financing activities:
   Deferred financing costs                                               --             --             --         (3,131)
   Proceeds from issuance of long-term debt                               --             --             --        234,545
   Principal payments on long-term debt                               (4,000)        (4,021)            --       (220,901)
   Contributions from partners                                            --             --             --          3,155
   Repurchase of units                                                    --             --             --           (409)
   Distributions paid to partners                                         --             --             --         (1,264)
                                                                    --------       --------       --------       --------
      Net cash provided by (used in) financing activities             (4,000)        (4,021)            --         11,995
                                                                    --------       --------       --------       --------
Effect of exchange rate changes on cash                                   --             --             --           (271)
                                                                                                                 --------
Net increase (decrease) in cash and cash equivalents                   4,953          4,953             --          2,525
                                                                                                                 --------
Cash and cash equivalents, beginning of period                        16,643         16,643             --         23,441
                                                                    --------       --------       --------       --------
Cash and cash equivalents, end of period                              21,596         21,596             --         25,966
                                                                    ========       ========       ========       ========
</TABLE>