##### 



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



|                                                      |                                                          |          |             |              |               |             |           |           |             |     |                  |    |  |  |       |       |  |  |       |       |  
|----------------------------------------------------- | -------------------------------------------------------- | -------- | ----------- | ------------ | ------------- | ----------- | --------- | --------- | ----------- | --- | ---------------- | -- |  |  | ----- | ----- |  |  | ----- | ----- | -
|                                                      |                                                          |          | MeriStar    |              |               |             |           |           |             |     |                  |    |  |  |       |       |  |  |      
|                                                      |                                                          |          | Hospitality |              | Non-Guarantor |             | MeriStar  |           | AGH Upreit, |     | MeriStar Sub 5N,
|                                                      |                                                          | OP, L.P. |             | Subsidiaries |               | Sub 7C, LLC |           | LLC       |             | LLC
|                                                      |                                                          |          |             |              |               |             |           |           |             |    
|Assets                                                |                                                          |          |             |              |               |             |           |           |             |     |                  |    |  |  |       |       |  |  |       |      
|                                                      | Investment in hotel properties                           |          |             | 15,499       |               |             |           | 1,548,868 |             |     |                  |   |  |  |       |      |  |  |       | 4,105 |  
|                                                      | Accumulated depreciation                                 |          |             | (7,564       | )             |             |           | (223,232  | )           |     |                  |   |  |  |       |      |  |  |       | (507  | )
|                                                      |                                                          |          |             |              |               |             |           |           |             |     |                  |    |  |  |       |       |  |  |       |      
|                                                      |                                                          |          | 7,935       |              |               |             | 1,325,636 |           |             |     |                 |    |  |  |      |       |  |  | 3,598 |      
|                                                      | Cash and cash equivalents                                |          |             | 5,840        |               |             |           |          |             |     |                  |   |  |  |       |      |  |  |       |      |  
|                                                      | Accounts receivable, net                                 |          |             | 9,862        |               |             |           | 1,240     |             |     |                  |   |  |  |       |      |  |  |       |      |  
|                                                      | Prepaid expenses and other                               |          |             | 8,254        |               |             |           | 87        |             |     |                  |   |  |  |       |      |  |  |       |      |  
|                                                      | Income tax receivable                                    |          |             | 344          |               |             |           |          |             |     |                  |   |  |  |       |      |  |  |       |      |  
|                                                      | Note receivable                                          |          |             | 162,778      |               |             |           |          |             |     |                  |   |  |  |       |      |  |  |       |      |  
|                                                      | Due from subsidiaries                                    |          |             | (532,991     | )             |             |           | 153,280   |             |     |                  |   |  |  |       | 7     |  |  |       | 3,440 |  
|                                                      | Investments in affiliates                                |          |             | 2,679,345    |               |             |           | 8,200     |             |     |                  | 32 |  |  |       | 3,056 |  |  |       |      |  
|                                                      | Restricted cash                                          |          |             | 11,237       |               |             |           | 5,090     |             |     |                  |   |  |  |       |      |  |  |       |      |  
|                                                      | Intangible assets, net                                   |          |             | 17,940       |               |             |           | 209       |             |     |                  |   |  |  |       |      |  |  |       |      |  
|                                                      |                                                          |          |             |              |               |             |           |           |             |     |                  |    |  |  |       |       |  |  |       |      
|                                                      |                                                          |          | 2,370,544   |              |               |             | 1,493,742 |           |             |     | 32               |    |  |  | 3,063 |       |  |  | 7,038 |      
|                                                      |                                                          |          |             |              |               |             |           |           |             |     |                  |    |  |  |       |       |  |  |       |      
|Liabilities, Minority Interests and Partners capital |                                                          |          |             |              |               |             |           |           |             |     |                  |    |  |  |       |       |  |  |       |      
|                                                      | Accounts payable, accrued expenses and other liabilities |          |             | 13,976       |               |             |           | 11,943    |             |     |                  |   |  |  |       |      |  |  |       | 49    |  
|                                                      | Accrued interest                                         |          |             | 37,294       |               |             |           | 3,680     |             |     |                  |   |  |  |       |      |  |  |       |      |  
|                                                      | Due to Interstate Hotels & Resorts                       |          |             | 5,055        |               |             |           |          |             |     |                  |   |  |  |       |      |  |  |       |      |  
|                                                      | Dividends and Distributions payable                      |          |             | 446          |               |             |           |          |             |     |                  |   |  |  |       |      |  |  |       |      |  
|                                                      | Deferred income taxes                                    |          |             | 6,823        |               |             |           |          |             |     |                  |   |  |  |       |      |  |  |       |      |  
|                                                      | Interest rate swaps                                      |          |             | 6,802        |               |             |           |          |             |     |                  |   |  |  |       |      |  |  |       |      |  
|                                                      | Notes payable to MeriStar Hospitality                    |          |             | 357,408      |               |             |           |          |             |     |                  |   |  |  |       |      |  |  |       |      |  
|                                                      | Long-term debt                                           |          |             | 959,780      |               |             |           | 353,901   |             |     |                  |   |  |  |       |      |  |  |       |      |  
|                                                      |                                                          |          |             |              |               |             |           |           |             |     |                  |    |  |  |       |       |  |  |       |      
|Total liabilities                                     |                                                          |          | 1,387,584   |              |               |             | 369,524   |           |             |     |                 |    |  |  |      |       |  |  | 49    |      
|                                                      |                                                          |          |             |              |               |             |           |           |             |     |                  |    |  |  |       |       |  |  |       |      
|                                                      | Minority interests                                       |          |             | 2,629        |               |             |           |          |             |     |                  |   |  |  |       |      |  |  |       |      |  
|                                                      | Redeemable OP units at redemption value                  |          |             | 45,996       |               |             |           |          |             |     |                  |   |  |  |       |      |  |  |       |      |  
|                                                      | Partners capital                                        |          |             | 934,335      |               |             |           | 1,124,218 |             |     |                  | 32 |  |  |       | 3,063 |  |  |       | 6,989 |  
|                                                      |                                                          |          |             |              |               |             |           |           |             |     |                  |    |  |  |       |       |  |  |       |      
|                                                      |                                                          |          | 2,370,544   |              |               |             | 1,493,742 |           |             |     | 32               |    |  |  | 3,063 |       |  |  | 7,038 |      
|                                                      |                                                          |          |             |              |               |             |           |           |             |     |                  |    |  |  |       |       |  |  |       |      





---



##### 



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

|                                                      |                                                          |         |              |          |              |         |          |          |              |         |              |    |  |  |        |        |   |  |        |        |  
|----------------------------------------------------- | -------------------------------------------------------- | ------- | ------------ | -------- | ------------ | ------- | -------- | -------- | ------------ | ------- | ------------ | -- |  |  | ------ | ------ | - |  | ------ | ------ | -
|                                                      |                                                          |         | MeriStar Sub |          | MeriStar Sub |         | MeriStar |          | MeriStar Sub |         | MeriStar Sub
|                                                      |                                                          | 8A, LLC |              | 8F, L.P. |              | 8G, LLC |          | 6H, L.P. |              | 8B, LLC
|                                                      |                                                          |         |              |          |              |         |          |          |              |        
|Assets                                                |                                                          |         |              |          |              |         |          |          |              |         |              |    |  |  |        |        |   |  |        |       
|                                                      | Investment in hotel properties                           |         |              |         |              |         |          | 11,453   |              |         |              |   |  |  |        | 13,629 |   |  |        | 81,788 |  
|                                                      | Accumulated depreciation                                 |         |              |         |              |         |          | (1,820   | )            |         |              |   |  |  |        | (1,768 | ) |  |        | (9,279 | )
|                                                      |                                                          |         |              |          |              |         |          |          |              |         |              |    |  |  |        |        |   |  |        |       
|                                                      |                                                          |         |             |          |              |         | 9,633    |          |              |         |             |    |  |  | 11,861 |        |   |  | 72,509 |       
|                                                      | Cash and cash equivalents                                |         |              |         |              |         |          |         |              |         |              |   |  |  |        |       |   |  |        |       |  
|                                                      | Accounts receivable, net                                 |         |              | (17      | )            |         |          | (28      | )            |         |              |   |  |  |        |       |   |  |        |       |  
|                                                      | Prepaid expenses and other                               |         |              |         |              |         |          | 2        |              |         |              |   |  |  |        |       |   |  |        |       |  
|                                                      | Income tax receivable                                    |         |              |         |              |         |          |         |              |         |              |   |  |  |        |       |   |  |        |       |  
|                                                      | Note receivable                                          |         |              |         |              |         |          |         |              |         |              |   |  |  |        |       |   |  |        |       |  
|                                                      | Due from subsidiaries                                    |         |              | 4,878    |              |         |          | 4,980    |              |         |              | 9  |  |  |        | 5,546  |   |  |        | 25,165 |  
|                                                      | Investments in affiliates                                |         |              |         |              |         |          |         |              |         |              | 72 |  |  |        |       |   |  |        |       |  
|                                                      | Restricted cash                                          |         |              |         |              |         |          | 115      |              |         |              |   |  |  |        |       |   |  |        |       |  
|                                                      | Intangible assets, net                                   |         |              |         |              |         |          |         |              |         |              |   |  |  |        |       |   |  |        | 37     |  
|                                                      |                                                          |         |              |          |              |         |          |          |              |         |              |    |  |  |        |        |   |  |        |       
|                                                      |                                                          |         | 4,861        |          |              |         | 14,702   |          |              |         | 81           |    |  |  | 17,407 |        |   |  | 97,711 |       
|                                                      |                                                          |         |              |          |              |         |          |          |              |         |              |    |  |  |        |        |   |  |        |       
|Liabilities, Minority Interests and Partners capital |                                                          |         |              |          |              |         |          |          |              |         |              |    |  |  |        |        |   |  |        |       
|                                                      | Accounts payable, accrued expenses and other liabilities |         |              | (36      | )            |         |          | 168      |              |         |              |   |  |  |        | 234    |   |  |        | 2,640  |  
|                                                      | Accrued interest                                         |         |              |         |              |         |          |         |              |         |              |   |  |  |        |       |   |  |        |       |  
|                                                      | Due to Interstate Hotels & Resorts                       |         |              |         |              |         |          |         |              |         |              |   |  |  |        |       |   |  |        |       |  
|                                                      | Dividends and Distributions payable                      |         |              |         |              |         |          |         |              |         |              |   |  |  |        |       |   |  |        |       |  
|                                                      | Deferred income taxes                                    |         |              | (96      | )            |         |          |         |              |         |              |   |  |  |        |       |   |  |        |       |  
|                                                      | Interest rate swaps                                      |         |              |         |              |         |          |         |              |         |              |   |  |  |        |       |   |  |        |       |  
|                                                      | Notes payable to MeriStar Hospitality                    |         |              |         |              |         |          |         |              |         |              |   |  |  |        |       |   |  |        |       |  
|                                                      | Long-term debt                                           |         |              |         |              |         |          |         |              |         |              |   |  |  |        |       |   |  |        |       |  
|                                                      |                                                          |         |              |          |              |         |          |          |              |         |              |    |  |  |        |        |   |  |        |       
|Total liabilities                                     |                                                          |         | (132         | )        |              |         | 168      |          |              |         |             |    |  |  | 234    |        |   |  | 2,640  |       
|                                                      |                                                          |         |              |          |              |         |          |          |              |         |              |    |  |  |        |        |   |  |        |       
|                                                      | Minority interests                                       |         |              |         |              |         |          |         |              |         |              |   |  |  |        |       |   |  |        |       |  
|                                                      | Redeemable OP units at redemption value                  |         |              |         |              |         |          |         |              |         |              |   |  |  |        |       |   |  |        |       |  
|                                                      | Partners capital                                        |         |              | 4,993    |              |         |          | 14,534   |              |         |              | 81 |  |  |        | 17,173 |   |  |        | 95,071 |  
|                                                      |                                                          |         |              |          |              |         |          |          |              |         |              |    |  |  |        |        |   |  |        |       
|                                                      |                                                          |         | 4,861        |          |              |         | 14,702   |          |              |         | 81           |    |  |  | 17,407 |        |   |  | 97,711 |       
|                                                      |                                                          |         |              |          |              |         |          |          |              |         |              |    |  |  |        |        |   |  |        |       





---



##### 



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



|                                                      |                                                          |          |              |         |              |         |              |         |              |         |              |        |   |  |        |        |   |  |        |        |  
|----------------------------------------------------- | -------------------------------------------------------- | -------- | ------------ | ------- | ------------ | ------- | ------------ | ------- | ------------ | ------- | ------------ | ------ | - |  | ------ | ------ | - |  | ------ | ------ | -
|                                                      |                                                          |          | MeriStar Sub |         | MeriStar Sub |         | MeriStar Sub |         | MeriStar Sub |         | MeriStar Sub
|                                                      |                                                          | 1C, L.P. |              | 8E, LLC |              | 7F, LLC |              | 5L, LLC |              | 3C, LLC
|                                                      |                                                          |          |              |         |              |         |              |         |              |        
|Assets                                                |                                                          |          |              |         |              |         |              |         |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      | Investment in hotel properties                           |          |              | 25,226  |              |         |              | 15,262  |              |         |              | 12,019 |   |  |        | 11,477 |   |  |        | 17,345 |  
|                                                      | Accumulated depreciation                                 |          |              | (4,631  | )            |         |              | (2,292  | )            |         |              | (2,337 | ) |  |        | (469   | ) |  |        | (2,823 | )
|                                                      |                                                          |          |              |         |              |         |              |         |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      |                                                          |          | 20,595       |         |              |         | 12,970       |         |              |         | 9,682        |        |   |  | 11,008 |        |   |  | 14,522 |       
|                                                      | Cash and cash equivalents                                |          |              |        |              |         |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Accounts receivable, net                                 |          |              |        |              |         |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Prepaid expenses and other                               |          |              | 8       |              |         |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Income tax receivable                                    |          |              |        |              |         |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Note receivable                                          |          |              |        |              |         |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Due from subsidiaries                                    |          |              | (3,092  | )            |         |              | 5,245   |              |         |              | 4,264  |   |  |        | 3,669  |   |  |        | 3,812  |  
|                                                      | Investments in affiliates                                |          |              |        |              |         |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Restricted cash                                          |          |              |        |              |         |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Intangible assets, net                                   |          |              |        |              |         |              | 3       |              |         |              |       |   |  |        |       |   |  |        | 51     |  
|                                                      |                                                          |          |              |         |              |         |              |         |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      |                                                          |          | 17,511       |         |              |         | 18,218       |         |              |         | 13,946       |        |   |  | 14,677 |        |   |  | 18,385 |       
|                                                      |                                                          |          |              |         |              |         |              |         |              |         |              |        |   |  |        |        |   |  |        |       
|Liabilities, Minority Interests and Partners capital |                                                          |          |              |         |              |         |              |         |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      | Accounts payable, accrued expenses and other liabilities |          |              | 125     |              |         |              | (57     | )            |         |              | 192    |   |  |        | 76     |   |  |        | 330    |  
|                                                      | Accrued interest                                         |          |              |        |              |         |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Due to Interstate Hotels & Resorts                       |          |              |        |              |         |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Dividends
and distributions payable                      |          |              |        |              |         |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Deferred income taxes                                    |          |              |        |              |         |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Interest rate swaps                                      |          |              |        |              |         |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Notes payable to MeriStar Hospitality                    |          |              |        |              |         |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Long-term debt                                           |          |              |        |              |         |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      |                                                          |          |              |         |              |         |              |         |              |         |              |        |   |  |        |        |   |  |        |       
|Total liabilities                                     |                                                          |          | 125          |         |              |         | (57          | )       |              |         | 192          |        |   |  | 76     |        |   |  | 330    |       
|                                                      |                                                          |          |              |         |              |         |              |         |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      | Minority interests                                       |          |              |        |              |         |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Redeemable OP units at redemption value                  |          |              |        |              |         |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Partners capital                                        |          |              | 17,386  |              |         |              | 18,275  |              |         |              | 13,754 |   |  |        | 14,601 |   |  |        | 18,055 |  
|                                                      |                                                          |          |              |         |              |         |              |         |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      |                                                          |          | 17,511       |         |              |         | 18,218       |         |              |         | 13,946       |        |   |  | 14,677 |        |   |  | 18,385 |       
|                                                      |                                                          |          |              |         |              |         |              |         |              |         |              |        |   |  |        |        |   |  |        |       





---



##### 



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

|                                                      |                                                          |         |              |         |              |         |              |         |              |  |        |        |   |  |        |        |  
|----------------------------------------------------- | -------------------------------------------------------- | ------- | ------------ | ------- | ------------ | ------- | ------------ | ------- | ------------ |  | ------ | ------ | - |  | ------ | ------ | -
|                                                      |                                                          |         | MeriStar Sub |         | MeriStar Sub |         | MeriStar Sub |         | MeriStar Sub
|                                                      |                                                          | 5R, LLC |              | 8A, LLC |              | 6D, LLC |              | 6E, LLC
|                                                      |                                                          |         |              |         |              |         |              |        
|Assets                                                |                                                          |         |              |         |              |         |              |         |              |  |        |        |   |  |        |       
|                                                      | Investment in hotel properties                           |         |              |        |              |         |              |        |              |  |        | 17,429 |   |  |        | 44,308 |  
|                                                      | Accumulated depreciation                                 |         |              |        |              |         |              |        |              |  |        | (2,213 | ) |  |        | (7,914 | )
|                                                      |                                                          |         |              |         |              |         |              |         |              |  |        |        |   |  |        |       
|                                                      |                                                          |         |             |         |              |         |             |         |              |  | 15,216 |        |   |  | 36,394 |       
|                                                      | Cash and cash equivalents                                |         |              |        |              |         |              |        |              |  |        |       |   |  |        |       |  
|                                                      | Accounts receivable, net                                 |         |              |        |              |         |              |        |              |  |        | 125    |   |  |        |       |  
|                                                      | Prepaid expenses and other                               |         |              |        |              |         |              |        |              |  |        |       |   |  |        |       |  
|                                                      | Income tax receivable                                    |         |              |        |              |         |              |        |              |  |        |       |   |  |        |       |  
|                                                      | Note receivable                                          |         |              |        |              |         |              |        |              |  |        |       |   |  |        |       |  
|                                                      | Due from subsidiaries                                    |         |              | (43     | )            |         |              |        |              |  |        | 6,355  |   |  |        | 17,164 |  
|                                                      | Investments in affiliates                                |         |              | 43      |              |         |              |        |              |  |        |       |   |  |        |       |  
|                                                      | Restricted cash                                          |         |              |        |              |         |              |        |              |  |        |       |   |  |        |       |  
|                                                      | Intangible assets, net                                   |         |              |        |              |         |              |        |              |  |        |       |   |  |        |       |  
|                                                      |                                                          |         |              |         |              |         |              |         |              |  |        |        |   |  |        |       
|                                                      |                                                          |         |             |         |              |         |             |         |              |  | 21,696 |        |   |  | 53,558 |       
|                                                      |                                                          |         |              |         |              |         |              |         |              |  |        |        |   |  |        |       
|Liabilities, Minority Interests and Partners capital |                                                          |         |              |         |              |         |              |         |              |  |        |        |   |  |        |       
|                                                      | Accounts payable, accrued expenses and other liabilities |         |              |        |              |         |              |        |              |  |        | (29    | ) |  |        | (130   | )
|                                                      | Accrued interest                                         |         |              |        |              |         |              |        |              |  |        |       |   |  |        |       |  
|                                                      | Due to Interstate Hotels & Resorts                       |         |              |        |              |         |              |        |              |  |        |       |   |  |        |       |  
|                                                      | Dividends
and distributions payable                      |         |              |        |              |         |              |        |              |  |        |       |   |  |        |       |  
|                                                      | Deferred income taxes                                    |         |              |        |              |         |              |        |              |  |        |       |   |  |        |       |  
|                                                      | Interest rate swaps                                      |         |              |        |              |         |              |        |              |  |        |       |   |  |        |       |  
|                                                      | Notes payable to MeriStar Hospitality                    |         |              |        |              |         |              |        |              |  |        |       |   |  |        |       |  
|                                                      | Long-term debt                                           |         |              |        |              |         |              |        |              |  |        |       |   |  |        |       |  
|                                                      |                                                          |         |              |         |              |         |              |         |              |  |        |        |   |  |        |       
|Total liabilities                                     |                                                          |         |             |         |              |         |             |         |              |  | (29    | )      |   |  | (130   | )     
|                                                      |                                                          |         |              |         |              |         |              |         |              |  |        |        |   |  |        |       
|                                                      | Minority interests                                       |         |              |        |              |         |              |        |              |  |        |       |   |  |        |       |  
|                                                      | Redeemable OP units at redemption value                  |         |              |        |              |         |              |        |              |  |        |       |   |  |        |       |  
|                                                      | Partners capital                                        |         |              |        |              |         |              |        |              |  |        | 21,725 |   |  |        | 53,688 |  
|                                                      |                                                          |         |              |         |              |         |              |         |              |  |        |        |   |  |        |       
|                                                      |                                                          |         |             |         |              |         |             |         |              |  | 21,696 |        |   |  | 53,558 |       
|                                                      |                                                          |         |              |         |              |         |              |         |              |  |        |        |   |  |        |       





---



##### 



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



|                                                      |                                                          |          |              |         |              |          |              |         |              |         |              |        |   |  |        |        |   |  |        |        |  
|----------------------------------------------------- | -------------------------------------------------------- | -------- | ------------ | ------- | ------------ | -------- | ------------ | ------- | ------------ | ------- | ------------ | ------ | - |  | ------ | ------ | - |  | ------ | ------ | -
|                                                      |                                                          |          | MeriStar Sub |         | MeriStar Sub |          | MeriStar Sub |         | MeriStar Sub |         | MeriStar Sub
|                                                      |                                                          | 4E, L.P. |              | 1B, LLC |              | 5F, L.P. |              | 6G, LLC |              | 8C, LLC
|                                                      |                                                          |          |              |         |              |          |              |         |              |        
|Assets                                                |                                                          |          |              |         |              |          |              |         |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      | Investment in hotel properties                           |          |              | 24,686  |              |          |              | 18,374  |              |         |              | 31,397 |   |  |        | 22,344 |   |  |        | 36,788 |  
|                                                      | Accumulated depreciation                                 |          |              | (3,757  | )            |          |              | (3,389  | )            |         |              | (4,155 | ) |  |        | (3,955 | ) |  |        | (4,953 | )
|                                                      |                                                          |          |              |         |              |          |              |         |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      |                                                          |          | 20,929       |         |              |          | 14,985       |         |              |         | 27,242       |        |   |  | 18,389 |        |   |  | 31,835 |       
|                                                      | Cash and cash equivalents                                |          |              |        |              |          |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Accounts receivable, net                                 |          |              |        |              |          |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Prepaid expenses and other                               |          |              |        |              |          |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Income tax receivable                                    |          |              |        |              |          |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Note receivable                                          |          |              |        |              |          |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Due from subsidiaries                                    |          |              | 2,455   |              |          |              | 12,598  |              |         |              | 10,395 |   |  |        | 4,754  |   |  |        | 4,125  |  
|                                                      | Investments in affiliates                                |          |              |        |              |          |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Restricted cash                                          |          |              |        |              |          |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Intangible assets, net                                   |          |              | 4       |              |          |              |        |              |         |              | 5      |   |  |        |       |   |  |        | 1      |  
|                                                      |                                                          |          |              |         |              |          |              |         |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      |                                                          |          | 23,388       |         |              |          | 27,583       |         |              |         | 37,642       |        |   |  | 23,143 |        |   |  | 35,961 |       
|                                                      |                                                          |          |              |         |              |          |              |         |              |         |              |        |   |  |        |        |   |  |        |       
|Liabilities, Minority Interests and Partners capital |                                                          |          |              |         |              |          |              |         |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      | Accounts payable, accrued expenses and other liabilities |          |              | 308     |              |          |              | 72      |              |         |              | 342    |   |  |        | 48     |   |  |        | (222   | )
|                                                      | Accrued interest                                         |          |              |        |              |          |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Due to Interstate Hotels & Resorts                       |          |              |        |              |          |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Dividends
and distributions payable                      |          |              |        |              |          |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Deferred income taxes                                    |          |              |        |              |          |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Interest rate swaps                                      |          |              |        |              |          |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Notes payable to MeriStar Hospitality                    |          |              |        |              |          |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Long-term debt                                           |          |              |        |              |          |              | 48      |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      |                                                          |          |              |         |              |          |              |         |              |         |              |        |   |  |        |        |   |  |        |       
|Total liabilities                                     |                                                          |          | 308          |         |              |          | 120          |         |              |         | 342          |        |   |  | 48     |        |   |  | (222   | )     
|                                                      |                                                          |          |              |         |              |          |              |         |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      | Minority interests                                       |          |              |        |              |          |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Redeemable OP units at redemption value                  |          |              |        |              |          |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Partners capital                                        |          |              | 23,080  |              |          |              | 27,463  |              |         |              | 37,300 |   |  |        | 23,095 |   |  |        | 36,183 |  
|                                                      |                                                          |          |              |         |              |          |              |         |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      |                                                          |          | 23,388       |         |              |          | 27,583       |         |              |         | 37,642       |        |   |  | 23,143 |        |   |  | 35,961 |       
|                                                      |                                                          |          |              |         |              |          |              |         |              |         |              |        |   |  |        |        |   |  |        |       





---



##### 



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

|                                                      |                                                          |          |              |          |              |         |              |         |              |         |              |        |   |  |        |        |   |  |        |        |  
|----------------------------------------------------- | -------------------------------------------------------- | -------- | ------------ | -------- | ------------ | ------- | ------------ | ------- | ------------ | ------- | ------------ | ------ | - |  | ------ | ------ | - |  | ------ | ------ | -
|                                                      |                                                          |          | MeriStar Sub |          | MeriStar Sub |         | MeriStar Sub |         | MeriStar Sub |         | MeriStar Sub
|                                                      |                                                          | 4C, L.P. |              | 4H, L.P. |              | 7E, LLC |              | 3D, LLC |              | 1A, LLC
|                                                      |                                                          |          |              |          |              |         |              |         |              |        
|                                                      | Assets                                                   |          |              |          |              |         |              |         |              |         |              |        |   |  |        |        |   |  |        |        |  
|                                                      | Investment in hotel properties                           |          |              |         |              |         |              | 12,445  |              |         |              | 17,904 |   |  |        | 22,505 |   |  |        | 11,290 |  
|                                                      | Accumulated depreciation                                 |          |              |         |              |         |              | (2,117  | )            |         |              | (2,551 | ) |  |        | (6,065 | ) |  |        | (2,368 | )
|                                                      |                                                          |          |              |          |              |         |              |         |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      |                                                          |          |             |          |              |         | 10,328       |         |              |         | 15,353       |        |   |  | 16,440 |        |   |  | 8,922  |       
|                                                      | Cash and cash equivalents                                |          |              |         |              |         |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Accounts receivable, net                                 |          |              | 1        |              |         |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Prepaid expenses and other                               |          |              |         |              |         |              | 3       |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Income tax receivable                                    |          |              |         |              |         |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Note receivable                                          |          |              |         |              |         |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Due from subsidiaries                                    |          |              | 11,504   |              |         |              | (847    | )            |         |              | 5,567  |   |  |        | 7,197  |   |  |        | 5,953  |  
|                                                      | Investments in affiliates                                |          |              |         |              |         |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Restricted cash                                          |          |              |         |              |         |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Intangible assets, net                                   |          |              |         |              |         |              |        |              |         |              | 4      |   |  |        |       |   |  |        |       |  
|                                                      |                                                          |          |              |          |              |         |              |         |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      |                                                          |          | 11,505       |          |              |         | 9,484        |         |              |         | 20,924       |        |   |  | 23,637 |        |   |  | 14,875 |       
|                                                      |                                                          |          |              |          |              |         |              |         |              |         |              |        |   |  |        |        |   |  |        |       
|Liabilities, Minority Interests and Partners capital |                                                          |          |              |          |              |         |              |         |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      | Accounts payable, accrued expenses and other liabilities |          |              | 130      |              |         |              | 126     |              |         |              | 44     |   |  |        | 169    |   |  |        | 129    |  
|                                                      | Accrued interest                                         |          |              |         |              |         |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Due to Interstate Hotels & Resorts                       |          |              |         |              |         |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Dividends
and distributions payable                      |          |              |         |              |         |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Deferred income taxes                                    |          |              | (32      | )            |         |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Interest rate swaps                                      |          |              |         |              |         |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Notes payable to MeriStar Hospitality                    |          |              |         |              |         |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Long-term debt                                           |          |              |         |              |         |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      |                                                          |          |              |          |              |         |              |         |              |         |              |        |   |  |        |        |   |  |        |       
|Total liabilities                                     |                                                          |          | 98           |          |              |         | 126          |         |              |         | 44           |        |   |  | 169    |        |   |  | 129    |       
|                                                      |                                                          |          |              |          |              |         |              |         |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      | Minority interests                                       |          |              |         |              |         |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Redeemable OP units at redemption value                  |          |              |         |              |         |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Partners capital                                        |          |              | 11,407   |              |         |              | 9,358   |              |         |              | 20,880 |   |  |        | 23,468 |   |  |        | 14,746 |  
|                                                      |                                                          |          |              |          |              |         |              |         |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      |                                                          |          | 11,505       |          |              |         | 9,484        |         |              |         | 20,924       |        |   |  | 23,637 |        |   |  | 14,875 |       
|                                                      |                                                          |          |              |          |              |         |              |         |              |         |              |        |   |  |        |        |   |  |        |       





---



##### 



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



|                                                      |                                                          |         |              |               |                 |         |              |         |              |         |              |        |   |  |       |        |   |  |       |        |  
|----------------------------------------------------- | -------------------------------------------------------- | ------- | ------------ | ------------- | --------------- | ------- | ------------ | ------- | ------------ | ------- | ------------ | ------ | - |  | ----- | ------ | - |  | ----- | ------ | -
|                                                      |                                                          |         | MeriStar Sub |               | MeriStar Sub 7A |         | MeriStar Sub |         | MeriStar Sub |         | MeriStar Sub
|                                                      |                                                          | 5E, LLC |              | Joint Venture |                 | 6K, LLC |              | 2B, LLC |              | 3A, LLC
|                                                      |                                                          |         |              |               |                 |         |              |         |              |        
|Assets                                                |                                                          |         |              |               |                 |         |              |         |              |         |              |        |   |  |       |        |   |  |       |       
|                                                      | Investment in hotel properties                           |         |              | 52,864        |                 |         |              | 13,110  |              |         |              | 22,840 |   |  |       | 9,578  |   |  |       | 7,007  |  
|                                                      | Accumulated depreciation                                 |         |              | (7,668        | )               |         |              | (1,657  | )            |         |              | (4,114 | ) |  |       | (1,875 | ) |  |       | (1,484 | )
|                                                      |                                                          |         |              |               |                 |         |              |         |              |         |              |        |   |  |       |        |   |  |       |       
|                                                      |                                                          |         | 45,196       |               |                 |         | 11,453       |         |              |         | 18,726       |        |   |  | 7,703 |        |   |  | 5,523 |       
|                                                      | Cash and cash equivalents                                |         |              |              |                 |         |              |        |              |         |              |       |   |  |       |       |   |  |       |       |  
|                                                      | Accounts receivable, net                                 |         |              |              |                 |         |              |        |              |         |              |       |   |  |       | (12    | ) |  |       |       |  
|                                                      | Prepaid expenses and other                               |         |              |              |                 |         |              |        |              |         |              |       |   |  |       |       |   |  |       |       |  
|                                                      | Income tax receivable                                    |         |              |              |                 |         |              |        |              |         |              |       |   |  |       |       |   |  |       |       |  
|                                                      | Note receivable                                          |         |              |              |                 |         |              |        |              |         |              |       |   |  |       |       |   |  |       |       |  
|                                                      | Due from subsidiaries                                    |         |              | 13,307        |                 |         |              | 4,131   |              |         |              | 16,118 |   |  |       | (707   | ) |  |       | 1,383  |  
|                                                      | Investments in affiliates                                |         |              |              |                 |         |              |        |              |         |              |       |   |  |       |       |   |  |       |       |  
|                                                      | Restricted cash                                          |         |              |              |                 |         |              |        |              |         |              |       |   |  |       |       |   |  |       |       |  
|                                                      | Intangible assets, net                                   |         |              | 3             |                 |         |              |        |              |         |              |       |   |  |       | 1      |   |  |       |       |  
|                                                      |                                                          |         |              |               |                 |         |              |         |              |         |              |        |   |  |       |        |   |  |       |       
|                                                      |                                                          |         | 58,506       |               |                 |         | 15,584       |         |              |         | 34,844       |        |   |  | 6,985 |        |   |  | 6,906 |       
|                                                      |                                                          |         |              |               |                 |         |              |         |              |         |              |        |   |  |       |        |   |  |       |       
|Liabilities, Minority Interests and Partners capital |                                                          |         |              |               |                 |         |              |         |              |         |              |        |   |  |       |        |   |  |       |       
|                                                      | Accounts payable, accrued expenses and other liabilities |         |              | 458           |                 |         |              | 163     |              |         |              | 158    |   |  |       | 29     |   |  |       | 131    |  
|                                                      | Accrued interest                                         |         |              |              |                 |         |              |        |              |         |              |       |   |  |       |       |   |  |       |       |  
|                                                      | Due to Interstate Hotels & Resorts                       |         |              |              |                 |         |              |        |              |         |              |       |   |  |       |       |   |  |       |       |  
|                                                      | Dividends
and distributions payable                      |         |              |              |                 |         |              |        |              |         |              |       |   |  |       |       |   |  |       |       |  
|                                                      | Deferred income taxes                                    |         |              |              |                 |         |              |        |              |         |              |       |   |  |       |       |   |  |       |       |  
|                                                      | Interest rate swaps                                      |         |              |              |                 |         |              |        |              |         |              |       |   |  |       |       |   |  |       |       |  
|                                                      | Notes payable to MeriStar Hospitality                    |         |              |              |                 |         |              |        |              |         |              |       |   |  |       |       |   |  |       |       |  
|                                                      | Long-term debt                                           |         |              |              |                 |         |              |        |              |         |              |       |   |  |       | 4,871  |   |  |       |       |  
|                                                      |                                                          |         |              |               |                 |         |              |         |              |         |              |        |   |  |       |        |   |  |       |       
|Total liabilities                                     |                                                          |         | 458          |               |                 |         | 163          |         |              |         | 158          |        |   |  | 4,900 |        |   |  | 131   |       
|                                                      |                                                          |         |              |               |                 |         |              |         |              |         |              |        |   |  |       |        |   |  |       |       
|                                                      | Minority interests                                       |         |              |              |                 |         |              |        |              |         |              |       |   |  |       |       |   |  |       |       |  
|                                                      | Redeemable OP units at redemption value                  |         |              |              |                 |         |              |        |              |         |              |       |   |  |       |       |   |  |       |       |  
|                                                      | Partners capital                                        |         |              | 58,048        |                 |         |              | 15,421  |              |         |              | 34,686 |   |  |       | 2,084  |   |  |       | 6,775  |  
|                                                      |                                                          |         |              |               |                 |         |              |         |              |         |              |        |   |  |       |        |   |  |       |       
|                                                      |                                                          |         | 58,506       |               |                 |         | 15,584       |         |              |         | 34,844       |        |   |  | 6,985 |        |   |  | 6,906 |       
|                                                      |                                                          |         |              |               |                 |         |              |         |              |         |              |        |   |  |       |        |   |  |       |       





---



##### 



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

|                                                      |                                                          |         |              |         |              |         |              |         |              |             |             |        |   |  |        |        |   |  |       |       |  
|----------------------------------------------------- | -------------------------------------------------------- | ------- | ------------ | ------- | ------------ | ------- | ------------ | ------- | ------------ | ----------- | ----------- | ------ | - |  | ------ | ------ | - |  | ----- | ----- | -
|                                                      |                                                          |         | MeriStar Sub |         | MeriStar Sub |         | MeriStar Sub |         | MeriStar Sub |             | MDV Limited
|                                                      |                                                          | 4A, LLC |              | 4D, LLC |              | 2A, LLC |              | 6L, LLC |              | Partnership
|                                                      |                                                          |         |              |         |              |         |              |         |              |            
|Assets                                                |                                                          |         |              |         |              |         |              |         |              |             |             |        |   |  |        |        |   |  |       |      
|                                                      | Investment in hotel properties                           |         |              | 8,883   |              |         |              | 8,937   |              |             |             | 8,262  |   |  |        | 29,630 |   |  |       | 3,829 |  
|                                                      | Accumulated depreciation                                 |         |              | (1,112  | )            |         |              | (1,408  | )            |             |             | (1,380 | ) |  |        | (3,132 | ) |  |       | (512  | )
|                                                      |                                                          |         |              |         |              |         |              |         |              |             |             |        |   |  |        |        |   |  |       |      
|                                                      |                                                          |         | 7,771        |         |              |         | 7,529        |         |              |             | 6,882       |        |   |  | 26,498 |        |   |  | 3,317 |      
|                                                      | Cash and cash equivalents                                |         |              |        |              |         |              |        |              |             |             |       |   |  |        |       |   |  |       |      |  
|                                                      | Accounts receivable, net                                 |         |              |        |              |         |              |        |              |             |             |       |   |  |        |       |   |  |       |      |  
|                                                      | Prepaid expenses and other                               |         |              |        |              |         |              |        |              |             |             |       |   |  |        |       |   |  |       |      |  
|                                                      | Income tax receivable                                    |         |              |        |              |         |              |        |              |             |             |       |   |  |        |       |   |  |       |      |  
|                                                      | Note receivable                                          |         |              |        |              |         |              |        |              |             |             |       |   |  |        |       |   |  |       |      |  
|                                                      | Due from subsidiaries                                    |         |              | 3,851   |              |         |              | 131     |              |             |             | (829   | ) |  |        | 4,591  |   |  |       | 2,085 |  
|                                                      | Investments in affiliates                                |         |              |        |              |         |              |        |              |             |             |       |   |  |        |       |   |  |       |      |  
|                                                      | Restricted cash                                          |         |              |        |              |         |              |        |              |             |             |       |   |  |        |       |   |  |       |      |  
|                                                      | Intangible assets, net                                   |         |              |        |              |         |              | 22      |              |             |             | 22     |   |  |        |       |   |  |       | 9     |  
|                                                      |                                                          |         |              |         |              |         |              |         |              |             |             |        |   |  |        |        |   |  |       |      
|                                                      |                                                          |         | 11,622       |         |              |         | 7,682        |         |              |             | 6,075       |        |   |  | 31,089 |        |   |  | 5,411 |      
|                                                      |                                                          |         |              |         |              |         |              |         |              |             |             |        |   |  |        |        |   |  |       |      
|Liabilities, Minority Interests and Partners capital |                                                          |         |              |         |              |         |              |         |              |             |             |        |   |  |        |        |   |  |       |      
|                                                      | Accounts payable, accrued expenses and other liabilities |         |              | 280     |              |         |              | 177     |              |             |             | 19     |   |  |        | (1     | ) |  |       | 77    |  
|                                                      | Accrued interest                                         |         |              |        |              |         |              |        |              |             |             |       |   |  |        |       |   |  |       |      |  
|                                                      | Due to Interstate Hotels & Resorts                       |         |              |        |              |         |              |        |              |             |             |       |   |  |        |       |   |  |       |      |  
|                                                      | Dividends
and distributions payable                      |         |              |        |              |         |              |        |              |             |             |       |   |  |        |       |   |  |       |      |  
|                                                      | Deferred income taxes                                    |         |              |        |              |         |              |        |              |             |             |       |   |  |        |       |   |  |       |      |  
|                                                      | Interest rate swaps                                      |         |              |        |              |         |              |        |              |             |             |       |   |  |        |       |   |  |       |      |  
|                                                      | Notes payable to MeriStar Hospitality                    |         |              |        |              |         |              |        |              |             |             |       |   |  |        |       |   |  |       |      |  
|                                                      | Long-term debt                                           |         |              |        |              |         |              |        |              |             |             | 7,946  |   |  |        |       |   |  |       |      |  
|                                                      |                                                          |         |              |         |              |         |              |         |              |             |             |        |   |  |        |        |   |  |       |      
|Total liabilities                                     |                                                          |         | 280          |         |              |         | 177          |         |              |             | 7,965       |        |   |  | (1     | )      |   |  | 77    |      
|                                                      |                                                          |         |              |         |              |         |              |         |              |             |             |        |   |  |        |        |   |  |       |      
|                                                      | Minority interests                                       |         |              |        |              |         |              |        |              |             |             |       |   |  |        |       |   |  |       |      |  
|                                                      | Redeemable OP units at redemption value                  |         |              |        |              |         |              |        |              |             |             |       |   |  |        |       |   |  |       |      |  
|                                                      | Partners capital                                        |         |              | 11,342  |              |         |              | 7,505   |              |             |             | (1,890 | ) |  |        | 31,090 |   |  |       | 5,334 |  
|                                                      |                                                          |         |              |         |              |         |              |         |              |             |             |        |   |  |        |        |   |  |       |      
|                                                      |                                                          |         | 11,622       |         |              |         | 7,682        |         |              |             | 6,075       |        |   |  | 31,089 |        |   |  | 5,411 |      
|                                                      |                                                          |         |              |         |              |         |              |         |              |             |             |        |   |  |        |        |   |  |       |      





---



##### 



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



|                                                      |                                                          |         |              |         |              |          |              |          |              |         |              |        |   |  |        |        |   |  |        |        |  
|----------------------------------------------------- | -------------------------------------------------------- | ------- | ------------ | ------- | ------------ | -------- | ------------ | -------- | ------------ | ------- | ------------ | ------ | - |  | ------ | ------ | - |  | ------ | ------ | -
|                                                      |                                                          |         | MeriStar Sub |         | MeriStar Sub |          | MeriStar Sub |          | MeriStar Sub |         | MeriStar Sub
|                                                      |                                                          | 5C, LLC |              | 6J, LLC |              | 1D, L.P. |              | 7B, L.P. |              | 7D, LLC
|                                                      |                                                          |         |              |         |              |          |              |          |              |        
|Assets                                                |                                                          |         |              |         |              |          |              |          |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      | Investment in hotel properties                           |         |              | 14,043  |              |          |              | 19,397   |              |         |              | 68,462 |   |  |        | 25,434 |   |  |        | 52,169 |  
|                                                      | Accumulated depreciation                                 |         |              | (2,662  | )            |          |              | (3,046   | )            |         |              | (9,195 | ) |  |        | (2,971 | ) |  |        | (7,728 | )
|                                                      |                                                          |         |              |         |              |          |              |          |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      |                                                          |         | 11,381       |         |              |          | 16,351       |          |              |         | 59,267       |        |   |  | 22,463 |        |   |  | 44,441 |       
|                                                      | Cash and cash equivalents                                |         |              |        |              |          |              |         |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Accounts receivable, net                                 |         |              |        |              |          |              | 81       |              |         |              |       |   |  |        |       |   |  |        | 872    |  
|                                                      | Prepaid expenses and other                               |         |              | 31      |              |          |              |         |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Income tax receivable                                    |         |              |        |              |          |              |         |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Note receivable                                          |         |              |        |              |          |              |         |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Due from subsidiaries                                    |         |              | 272     |              |          |              | 5,417    |              |         |              | 15,847 |   |  |        | (3,809 | ) |  |        | 21,548 |  
|                                                      | Investments in affiliates                                |         |              |        |              |          |              |         |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Restricted cash                                          |         |              |        |              |          |              |         |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Intangible assets, net                                   |         |              |        |              |          |              | 48       |              |         |              | 22     |   |  |        |       |   |  |        | 330    |  
|                                                      |                                                          |         |              |         |              |          |              |          |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      |                                                          |         | 11,684       |         |              |          | 21,897       |          |              |         | 75,136       |        |   |  | 18,654 |        |   |  | 67,191 |       
|                                                      |                                                          |         |              |         |              |          |              |          |              |         |              |        |   |  |        |        |   |  |        |       
|Liabilities, Minority Interests and Partners capital |                                                          |         |              |         |              |          |              |          |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      | Accounts payable, accrued expenses and other liabilities |         |              | 869     |              |          |              | (165     | )            |         |              | 147    |   |  |        | 1,210  |   |  |        | 5,159  |  
|                                                      | Accrued interest                                         |         |              |        |              |          |              |         |              |         |              | 103    |   |  |        |       |   |  |        |       |  
|                                                      | Due to Interstate Hotels & Resorts                       |         |              |        |              |          |              |         |              |         |              |       |   |  |        |       |   |  |        | (200   | )
|                                                      | Dividends
and distributions payable                      |         |              |        |              |          |              |         |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Deferred income taxes                                    |         |              |        |              |          |              |         |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Interest rate swaps                                      |         |              |        |              |          |              |         |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Notes payable to MeriStar Hospitality                    |         |              |        |              |          |              |         |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Long-term debt                                           |         |              |        |              |          |              |         |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      |                                                          |         |              |         |              |          |              |          |              |         |              |        |   |  |        |        |   |  |        |       
|Total liabilities                                     |                                                          |         | 869          |         |              |          | (165         | )        |              |         | 250          |        |   |  | 1,210  |        |   |  | 4,959  |       
|                                                      |                                                          |         |              |         |              |          |              |          |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      | Minority interests                                       |         |              |        |              |          |              |         |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Redeemable OP units at redemption value                  |         |              |        |              |          |              |         |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Partners capital                                        |         |              | 10,815  |              |          |              | 22,062   |              |         |              | 74,886 |   |  |        | 17,444 |   |  |        | 62,232 |  
|                                                      |                                                          |         |              |         |              |          |              |          |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      |                                                          |         | 11,684       |         |              |          | 21,897       |          |              |         | 75,136       |        |   |  | 18,654 |        |   |  | 67,191 |       
|                                                      |                                                          |         |              |         |              |          |              |          |              |         |              |        |   |  |        |        |   |  |        |       





---



##### 



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

|                                                      |                                                          |         |              |         |              |          |              |         |              |         |              |        |   |  |        |        |   |  |        |        |  
|----------------------------------------------------- | -------------------------------------------------------- | ------- | ------------ | ------- | ------------ | -------- | ------------ | ------- | ------------ | ------- | ------------ | ------ | - |  | ------ | ------ | - |  | ------ | ------ | -
|                                                      |                                                          |         | MeriStar Sub |         | MeriStar Sub |          | MeriStar Sub |         | MeriStar Sub |         | MeriStar Sub
|                                                      |                                                          | 7G, LLC |              | 6B, LLC |              | 4I, L.P. |              | 5D, LLC |              | 5H, LLC
|                                                      |                                                          |         |              |         |              |          |              |         |              |        
|Assets                                                |                                                          |         |              |         |              |          |              |         |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      | Investment in hotel properties                           |         |              | 16,575  |              |          |              | 10,625  |              |         |              | 12,664 |   |  |        | 41,911 |   |  |        | 53,327 |  
|                                                      | Accumulated depreciation                                 |         |              | (3,926  | )            |          |              | (1,628  | )            |         |              | (4,019 | ) |  |        | (6,282 | ) |  |        | (7,492 | )
|                                                      |                                                          |         |              |         |              |          |              |         |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      |                                                          |         | 12,649       |         |              |          | 8,997        |         |              |         | 8,645        |        |   |  | 35,630 |        |   |  | 45,835 |       
|                                                      | Cash and cash equivalents                                |         |              |        |              |          |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Accounts receivable, net                                 |         |              |        |              |          |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Prepaid expenses and other                               |         |              |        |              |          |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Income tax receivable                                    |         |              |        |              |          |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Note receivable                                          |         |              |        |              |          |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Due from subsidiaries                                    |         |              | 14      |              |          |              | 2,177   |              |         |              | 916    |   |  |        | (6,928 | ) |  |        | 8,633  |  
|                                                      | Investments in affiliates                                |         |              |        |              |          |              |        |              |         |              |       |   |  |        | 51,368 |   |  |        |       |  
|                                                      | Restricted cash                                          |         |              |        |              |          |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Intangible assets, net                                   |         |              | 7       |              |          |              | 5       |              |         |              |       |   |  |        | 19     |   |  |        |       |  
|                                                      |                                                          |         |              |         |              |          |              |         |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      |                                                          |         | 12,670       |         |              |          | 11,179       |         |              |         | 9,561        |        |   |  | 80,088 |        |   |  | 54,468 |       
|                                                      |                                                          |         |              |         |              |          |              |         |              |         |              |        |   |  |        |        |   |  |        |       
|Liabilities, Minority Interests and Partners capital |                                                          |         |              |         |              |          |              |         |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      | Accounts payable, accrued expenses and other liabilities |         |              | (25     | )            |          |              | (150    | )            |         |              | 332    |   |  |        | 365    |   |  |        | 401    |  
|                                                      | Accrued interest                                         |         |              |        |              |          |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Due to Interstate Hotels & Resorts                       |         |              |        |              |          |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Dividends
and distributions payable                      |         |              |        |              |          |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Deferred income taxes                                    |         |              |        |              |          |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Interest rate swaps                                      |         |              |        |              |          |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Notes payable to MeriStar Hospitality                    |         |              |        |              |          |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Long-term debt                                           |         |              |        |              |          |              |        |              |         |              |       |   |  |        | 24,000 |   |  |        |       |  
|                                                      |                                                          |         |              |         |              |          |              |         |              |         |              |        |   |  |        |        |   |  |        |       
|Total liabilities                                     |                                                          |         | (25          | )       |              |          | (150         | )       |              |         | 332          |        |   |  | 24,365 |        |   |  | 401    |       
|                                                      |                                                          |         |              |         |              |          |              |         |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      | Minority interests                                       |         |              |        |              |          |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Redeemable OP units at redemption value                  |         |              |        |              |          |              |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Partners capital                                        |         |              | 12,695  |              |          |              | 11,329  |              |         |              | 9,229  |   |  |        | 55,723 |   |  |        | 54,067 |  
|                                                      |                                                          |         |              |         |              |          |              |         |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      |                                                          |         | 12,670       |         |              |          | 11,179       |         |              |         | 9,561        |        |   |  | 80,088 |        |   |  | 54,468 |       
|                                                      |                                                          |         |              |         |              |          |              |         |              |         |              |        |   |  |        |        |   |  |        |       





---



##### 



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



|                                                      |                                                          |         |              |        |           |         |              |          |              |         |              |        |   |  |        |        |   |  |        |        |  
|----------------------------------------------------- | -------------------------------------------------------- | ------- | ------------ | ------ | --------- | ------- | ------------ | -------- | ------------ | ------- | ------------ | ------ | - |  | ------ | ------ | - |  | ------ | ------ | -
|                                                      |                                                          |         | MeriStar Sub |        | AGH PSSI, |         | MeriStar Sub |          | MeriStar Sub |         | MeriStar Sub
|                                                      |                                                          | 7H, LLC |              | Inc.   |           | 2D, LLC |              | 4F, L.P. |              | 5K, LLC
|                                                      |                                                          |         |              |        |           |         |              |          |              |        
|Assets                                                |                                                          |         |              |        |           |         |              |          |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      | Investment in hotel properties                           |         |              | 10,168 |           |         |              | 17,818   |              |         |              | 15,394 |   |  |        | 31,842 |   |  |        | 28,004 |  
|                                                      | Accumulated depreciation                                 |         |              | (4,404 | )         |         |              | (2,049   | )            |         |              | (2,309 | ) |  |        | (4,438 | ) |  |        | (3,619 | )
|                                                      |                                                          |         |              |        |           |         |              |          |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      |                                                          |         | 5,764        |        |           |         | 15,769       |          |              |         | 13,085       |        |   |  | 27,404 |        |   |  | 24,385 |       
|                                                      | Cash and cash equivalents                                |         |              |       |           |         |              |         |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Accounts receivable, net                                 |         |              |       |           |         |              |         |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Prepaid expenses and other                               |         |              |       |           |         |              |         |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Income tax receivable                                    |         |              |       |           |         |              |         |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Note receivable                                          |         |              |       |           |         |              |         |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Due from subsidiaries                                    |         |              | 5,752  |           |         |              | 10,961   |              |         |              | 429    |   |  |        | 3,975  |   |  |        | (960   | )
|                                                      | Investments in affiliates                                |         |              |       |           |         |              |         |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Restricted cash                                          |         |              |       |           |         |              |         |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Intangible assets, net                                   |         |              |       |           |         |              |         |              |         |              | 1      |   |  |        | 18     |   |  |        |       |  
|                                                      |                                                          |         |              |        |           |         |              |          |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      |                                                          |         | 11,516       |        |           |         | 26,730       |          |              |         | 13,515       |        |   |  | 31,397 |        |   |  | 23,425 |       
|                                                      |                                                          |         |              |        |           |         |              |          |              |         |              |        |   |  |        |        |   |  |        |       
|Liabilities, Minority Interests and Partners capital |                                                          |         |              |        |           |         |              |          |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      | Accounts payable, accrued expenses and other liabilities |         |              | 497    |           |         |              | 340      |              |         |              | (3     | ) |  |        | 303    |   |  |        | 4,445  |  
|                                                      | Accrued interest                                         |         |              |       |           |         |              |         |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Due to Interstate Hotels & Resorts                       |         |              |       |           |         |              |         |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Dividends
and distributions payable                      |         |              |       |           |         |              |         |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Deferred income taxes                                    |         |              |       |           |         |              |         |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Interest rate swaps                                      |         |              |       |           |         |              |         |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Notes payable to MeriStar Hospitality                    |         |              |       |           |         |              |         |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Long-term debt                                           |         |              | 13     |           |         |              |         |              |         |              | 9,207  |   |  |        |       |   |  |        |       |  
|                                                      |                                                          |         |              |        |           |         |              |          |              |         |              |        |   |  |        |        |   |  |        |       
|Total liabilities                                     |                                                          |         | 511          |        |           |         | 340          |          |              |         | 9,204        |        |   |  | 303    |        |   |  | 4,445  |       
|                                                      |                                                          |         |              |        |           |         |              |          |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      | Minority interests                                       |         |              |       |           |         |              |         |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Redeemable OP units at redemption value                  |         |              |       |           |         |              |         |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Partners capital                                        |         |              | 11,006 |           |         |              | 26,390   |              |         |              | 4,311  |   |  |        | 31,094 |   |  |        | 18,980 |  
|                                                      |                                                          |         |              |        |           |         |              |          |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      |                                                          |         | 11,516       |        |           |         | 26,730       |          |              |         | 13,515       |        |   |  | 31,397 |        |   |  | 23,425 |       
|                                                      |                                                          |         |              |        |           |         |              |          |              |         |              |        |   |  |        |        |   |  |        |       





---



##### 



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

|                                                      |                                                          |         |              |          |              |         |              |            |              |          |              |        |   |  |        |        |   |  |        |        |  
|----------------------------------------------------- | -------------------------------------------------------- | ------- | ------------ | -------- | ------------ | ------- | ------------ | ---------- | ------------ | -------- | ------------ | ------ | - |  | ------ | ------ | - |  | ------ | ------ | -
|                                                      |                                                          |         |              |          |              |         |              |            |              |          |              |        |   |  |        |        |   |  |       
|                                                      |                                                          |         | MeriStar Sub |          | MeriStar Sub |         | MeriStar Sub |            | MeriStar Sub |          | MeriStar Sub
|                                                      |                                                          | 5M, LLC |              | 1E, L.P. |              | 5O, LLC |              | 6M Company |              | 4B, L.P.
|                                                      |                                                          |         |              |          |              |         |              |            |              |         
|Assets                                                |                                                          |         |              |          |              |         |              |            |              |          |              |        |   |  |        |        |   |  |        |       
|                                                      | Investment in hotel properties                           |         |              | 22,016   |              |         |              | 10,451     |              |          |              | 8,726  |   |  |        | 32,927 |   |  |        | 17,069 |  
|                                                      | Accumulated depreciation                                 |         |              | (1,768   | )            |         |              | (1,573     | )            |          |              | (861   | ) |  |        | (4,480 | ) |  |        | (5,015 | )
|                                                      |                                                          |         |              |          |              |         |              |            |              |          |              |        |   |  |        |        |   |  |        |       
|                                                      |                                                          |         | 20,248       |          |              |         | 8,878        |            |              |          | 7,865        |        |   |  | 28,447 |        |   |  | 12,054 |       
|                                                      | Cash and cash equivalents                                |         |              |         |              |         |              |           |              |          |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Accounts receivable, net                                 |         |              |         |              |         |              |           |              |          |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Prepaid expenses and other                               |         |              |         |              |         |              |           |              |          |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Income tax receivable                                    |         |              |         |              |         |              |           |              |          |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Note receivable                                          |         |              |         |              |         |              |           |              |          |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Due from subsidiaries                                    |         |              | 6,566    |              |         |              | 7,081      |              |          |              | 2,439  |   |  |        | 15,004 |   |  |        | (4,592 | )
|                                                      | Investments in affiliates                                |         |              |         |              |         |              |           |              |          |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Restricted cash                                          |         |              |         |              |         |              |           |              |          |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Intangible assets, net                                   |         |              |         |              |         |              |           |              |          |              |       |   |  |        | 27     |   |  |        |       |  
|                                                      |                                                          |         |              |          |              |         |              |            |              |          |              |        |   |  |        |        |   |  |        |       
|                                                      |                                                          |         | 26,814       |          |              |         | 15,959       |            |              |          | 10,304       |        |   |  | 43,478 |        |   |  | 7,462  |       
|                                                      |                                                          |         |              |          |              |         |              |            |              |          |              |        |   |  |        |        |   |  |        |       
|Liabilities, Minority Interests and Partners capital |                                                          |         |              |          |              |         |              |            |              |          |              |        |   |  |        |        |   |  |        |       
|                                                      | Accounts payable, accrued expenses and other liabilities |         |              | 157      |              |         |              | 34         |              |          |              | 54     |   |  |        | (192   | ) |  |        | 353    |  
|                                                      | Accrued interest                                         |         |              |         |              |         |              |           |              |          |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Due to Interstate Hotels & Resorts                       |         |              |         |              |         |              |           |              |          |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Dividends
and distributions payable                      |         |              |         |              |         |              |           |              |          |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Deferred income taxes                                    |         |              |         |              |         |              |           |              |          |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Interest rate swaps                                      |         |              |         |              |         |              |           |              |          |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Notes payable to MeriStar Hospitality                    |         |              |         |              |         |              |           |              |          |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Long-term debt                                           |         |              |         |              |         |              |           |              |          |              |       |   |  |        |       |   |  |        |       |  
|                                                      |                                                          |         |              |          |              |         |              |            |              |          |              |        |   |  |        |        |   |  |        |       
|Total liabilities                                     |                                                          |         | 157          |          |              |         | 34           |            |              |          | 54           |        |   |  | (192   | )      |   |  | 353    |       
|                                                      |                                                          |         |              |          |              |         |              |            |              |          |              |        |   |  |        |        |   |  |        |       
|                                                      | Minority interests                                       |         |              |         |              |         |              |           |              |          |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Redeemable OP units at redemption value                  |         |              |         |              |         |              |           |              |          |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Partners capital                                        |         |              | 26,657   |              |         |              | 15,925     |              |          |              | 10,250 |   |  |        | 43,670 |   |  |        | 7,109  |  
|                                                      |                                                          |         |              |          |              |         |              |            |              |          |              |        |   |  |        |        |   |  |        |       
|                                                      |                                                          |         | 26,814       |          |              |         | 15,959       |            |              |          | 10,304       |        |   |  | 43,478 |        |   |  | 7,462  |       
|                                                      |                                                          |         |              |          |              |         |              |            |              |          |              |        |   |  |        |        |   |  |        |       





---



##### 



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



|                                                      |                                                          |         |              |         |              |          |              |         |              |          |              |        |   |  |        |        |   |  |         |         |  
|----------------------------------------------------- | -------------------------------------------------------- | ------- | ------------ | ------- | ------------ | -------- | ------------ | ------- | ------------ | -------- | ------------ | ------ | - |  | ------ | ------ | - |  | ------- | ------- | -
|                                                      |                                                          |         |              |         |              |          |              |         |              |          |              |        |   |  |        |        |   |  |        
|                                                      |                                                          |         | MeriStar Sub |         | MeriStar Sub |          | MeriStar Sub |         | MeriStar Sub |          | MeriStar Sub
|                                                      |                                                          | 6C, LLC |              | 2C, LLC |              | 4G, L.P. |              | 3B, LLC |              | 5G, L.P.
|                                                      |                                                          |         |              |         |              |          |              |         |              |         
|Assets                                                |                                                          |         |              |         |              |          |              |         |              |          |              |        |   |  |        |        |   |  |         |        
|                                                      | Investment in hotel properties                           |         |              | 20,816  |              |          |              | 28,463  |              |          |              | 25,589 |   |  |        | 25,063 |   |  |         | 162,965 |  
|                                                      | Accumulated depreciation                                 |         |              | (3,400  | )            |          |              | (5,109  | )            |          |              | (3,786 | ) |  |        | (3,662 | ) |  |         | (22,654 | )
|                                                      |                                                          |         |              |         |              |          |              |         |              |          |              |        |   |  |        |        |   |  |         |        
|                                                      |                                                          |         | 17,416       |         |              |          | 23,354       |         |              |          | 21,803       |        |   |  | 21,401 |        |   |  | 140,311 |        
|                                                      | Cash and cash equivalents                                |         |              |        |              |          |              |        |              |          |              |       |   |  |        |       |   |  |         |        |  
|                                                      | Accounts receivable, net                                 |         |              |        |              |          |              | 0       |              |          |              |       |   |  |        |       |   |  |         |        |  
|                                                      | Prepaid expenses and other                               |         |              |        |              |          |              |        |              |          |              |       |   |  |        |       |   |  |         |        |  
|                                                      | Income tax receivable                                    |         |              |        |              |          |              |        |              |          |              |       |   |  |        |       |   |  |         |        |  
|                                                      | Note receivable                                          |         |              |        |              |          |              |        |              |          |              |       |   |  |        |       |   |  |         |        |  
|                                                      | Due from subsidiaries                                    |         |              | 9,476   |              |          |              | 4,877   |              |          |              | 7,001  |   |  |        | 2,153  |   |  |         | 35,144  |  
|                                                      | Investments in affiliates                                |         |              |        |              |          |              |        |              |          |              |       |   |  |        |       |   |  |         |        |  
|                                                      | Restricted cash                                          |         |              |        |              |          |              |        |              |          |              |       |   |  |        |       |   |  |         |        |  
|                                                      | Intangible assets, net                                   |         |              |        |              |          |              | 1       |              |          |              | 14     |   |  |        | 0      |   |  |         | 5       |  
|                                                      |                                                          |         |              |         |              |          |              |         |              |          |              |        |   |  |        |        |   |  |         |        
|                                                      |                                                          |         | 26,892       |         |              |          | 28,232       |         |              |          | 28,818       |        |   |  | 23,553 |        |   |  | 175,459 |        
|                                                      |                                                          |         |              |         |              |          |              |         |              |          |              |        |   |  |        |        |   |  |         |        
|Liabilities, Minority Interests and Partners capital |                                                          |         |              |         |              |          |              |         |              |          |              |        |   |  |        |        |   |  |         |        
|                                                      | Accounts payable, accrued expenses and other liabilities |         |              | (194    | )            |          |              | 124     |              |          |              | 402    |   |  |        | 249    |   |  |         | 1,599   |  
|                                                      | Accrued interest                                         |         |              |        |              |          |              |        |              |          |              |       |   |  |        |       |   |  |         |        |  
|                                                      | Due to Interstate Hotels & Resorts                       |         |              |        |              |          |              |        |              |          |              |       |   |  |        |       |   |  |         |        |  
|                                                      | Dividends
and distributions payable                      |         |              |        |              |          |              |        |              |          |              |       |   |  |        |       |   |  |         |        |  
|                                                      | Deferred income taxes                                    |         |              |        |              |          |              |        |              |          |              |       |   |  |        |       |   |  |         |        |  
|                                                      | Interest rate swaps                                      |         |              |        |              |          |              |        |              |          |              |       |   |  |        |       |   |  |         |        |  
|                                                      | Notes payable to MeriStar Hospitality                    |         |              |        |              |          |              |        |              |          |              |       |   |  |        |       |   |  |         |        |  
|                                                      | Long-term debt                                           |         |              |        |              |          |              | 16,080  |              |          |              |       |   |  |        |       |   |  |         |        |  
|                                                      |                                                          |         |              |         |              |          |              |         |              |          |              |        |   |  |        |        |   |  |         |        
|Total liabilities                                     |                                                          |         | (194         | )       |              |          | 16,204       |         |              |          | 402          |        |   |  | 249    |        |   |  | 1,599   |        
|                                                      |                                                          |         |              |         |              |          |              |         |              |          |              |        |   |  |        |        |   |  |         |        
|                                                      | Minority interests                                       |         |              |        |              |          |              |        |              |          |              |       |   |  |        |       |   |  |         |        |  
|                                                      | Redeemable OP units at redemption value                  |         |              |        |              |          |              |        |              |          |              |       |   |  |        |       |   |  |         |        |  
|                                                      | Partners capital                                        |         |              | 27,088  |              |          |              | 12,027  |              |          |              | 28,416 |   |  |        | 23,304 |   |  |         | 173,860 |  
|                                                      |                                                          |         |              |         |              |          |              |         |              |          |              |        |   |  |        |        |   |  |         |        
|                                                      |                                                          |         | 26,893       |         |              |          | 28,232       |         |              |          | 28,818       |        |   |  | 23,553 |        |   |  | 175,459 |        
|                                                      |                                                          |         |              |         |              |          |              |         |              |          |              |        |   |  |        |        |   |  |         |        





---



##### 



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

|                                                      |                                                          |         |              |             |          |             |          |         |              |         |              |        |   |  |        |        |   |  |        |        |  
|----------------------------------------------------- | -------------------------------------------------------- | ------- | ------------ | ----------- | -------- | ----------- | -------- | ------- | ------------ | ------- | ------------ | ------ | - |  | ------ | ------ | - |  | ------ | ------ | -
|                                                      |                                                          |         | MeriStar Sub |             | MeriStar |             | MeriStar |         | MeriStar Sub |         | MeriStar Sub
|                                                      |                                                          | 5P, LLC |              | Sub 5J, LLC |          | Sub 5Q, LLC |          | 5A, LLC |              | 8D, LLC
|                                                      |                                                          |         |              |             |          |             |          |         |              |        
|Assets                                                |                                                          |         |              |             |          |             |          |         |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      | Investment in hotel properties                           |         |              | 39          |          |             |          | 106,690 |              |         |              | 16,450 |   |  |        | 34,911 |   |  |        | 30,604 |  
|                                                      | Accumulated depreciation                                 |         |              | (17         | )        |             |          | (12,463 | )            |         |              | (1,576 | ) |  |        | (9,016 | ) |  |        | (4,764 | )
|                                                      |                                                          |         |              |             |          |             |          |         |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      |                                                          |         | 22           |             |          |             | 94,227   |         |              |         | 14,874       |        |   |  | 25,895 |        |   |  | 25,840 |       
|                                                      | Cash and cash equivalents                                |         |              |            |          |             |          |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Accounts receivable, net                                 |         |              |            |          |             |          |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Prepaid expenses and other                               |         |              |            |          |             |          |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Income tax receivable                                    |         |              |            |          |             |          |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Note receivable                                          |         |              |            |          |             |          |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Due from subsidiaries                                    |         |              | 1,857       |          |             |          | 17,625  |              |         |              | 3,160  |   |  |        | 5,169  |   |  |        | 6,545  |  
|                                                      | Investments in affiliates                                |         |              |            |          |             |          |        |              |         |              |       |   |  |        | 4,627  |   |  |        |       |  
|                                                      | Restricted cash                                          |         |              |            |          |             |          |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Intangible assets, net                                   |         |              |            |          |             |          |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      |                                                          |         |              |             |          |             |          |         |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      |                                                          |         | 1,879        |             |          |             | 111,852  |         |              |         | 18,034       |        |   |  | 35,691 |        |   |  | 32,385 |       
|                                                      |                                                          |         |              |             |          |             |          |         |              |         |              |        |   |  |        |        |   |  |        |       
|Liabilities, Minority Interests and Partners capital |                                                          |         |              |             |          |             |          |         |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      | Accounts payable, accrued expenses and other liabilities |         |              | 27          |          |             |          | 839     |              |         |              | (64    | ) |  |        | 428    |   |  |        | (112   | )
|                                                      | Accrued interest                                         |         |              |            |          |             |          |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Due to Interstate Hotels & Resorts                       |         |              |            |          |             |          |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Dividends
and distributions payable                      |         |              |            |          |             |          |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Deferred income taxes                                    |         |              |            |          |             |          |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Interest rate swaps                                      |         |              |            |          |             |          |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Notes payable to MeriStar Hospitality                    |         |              |            |          |             |          |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Long-term debt                                           |         |              |            |          |             |          |        |              |         |              |       |   |  |        | 23,609 |   |  |        |       |  
|                                                      |                                                          |         |              |             |          |             |          |         |              |         |              |        |   |  |        |        |   |  |        |       
|Total liabilities                                     |                                                          |         | 27           |             |          |             | 839      |         |              |         | (64          | )      |   |  | 24,037 |        |   |  | (112   | )     
|                                                      |                                                          |         |              |             |          |             |          |         |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      | Minority interests                                       |         |              |            |          |             |          |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Redeemable OP units at redemption value                  |         |              |            |          |             |          |        |              |         |              |       |   |  |        |       |   |  |        |       |  
|                                                      | Partners capital                                        |         |              | 1,852       |          |             |          | 111,013 |              |         |              | 18,098 |   |  |        | 11,654 |   |  |        | 32,497 |  
|                                                      |                                                          |         |              |             |          |             |          |         |              |         |              |        |   |  |        |        |   |  |        |       
|                                                      |                                                          |         | 1,879        |             |          |             | 111,852  |         |              |         | 18,034       |        |   |  | 35,691 |        |   |  | 32,385 |       
|                                                      |                                                          |         |              |             |          |             |          |         |              |         |              |        |   |  |        |        |   |  |        |       





---



##### 



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

|                                                      |                                                          |         |              |              |                |              |        |              |   |  |            |            |   |  |            |           |  
|----------------------------------------------------- | -------------------------------------------------------- | ------- | ------------ | ------------ | -------------- | ------------ | ------ | ------------ | - |  | ---------- | ---------- | - |  | ---------- | --------- | -
|                                                      |                                                          |         | MeriStar Sub |              | MeriStar Hotel |              |        |              |   |  | Total     
|                                                      |                                                          | 4J, LLC |              | Lessee, Inc. |                | Eliminations |        | Consolidated
|                                                      |                                                          |         |              |              |                |              |        |             
|Assets                                                |                                                          |         |              |              |                |              |        |              |   |  |            |            |   |  |            |          
|                                                      | Investment in hotel properties                           |         |              | 38,101       |                |              |        | 1,745        |   |  |            |           |   |  |            | 3,181,539 |  
|                                                      | Accumulated depreciation                                 |         |              | (5,537       | )              |              |        | (1,675       | ) |  |            |           |   |  |            | (477,625  | )
|                                                      |                                                          |         |              |              |                |              |        |              |   |  |            |            |   |  |            |          
|                                                      |                                                          |         | 32,564       |              |                |              | 70     |              |   |  |           |            |   |  | 2,703,914  |          
|                                                      | Cash and cash equivalents                                |         |              |             |                |              |        | 18,888       |   |  |            |           |   |  |            | 24,728    |  
|                                                      | Accounts receivable, net                                 |         |              | (19          | )              |              |        | 40,686       |   |  |            |           |   |  |            | 52,791    |  
|                                                      | Prepaid expenses and other                               |         |              |             |                |              |        | 14,972       |   |  |            |           |   |  |            | 23,357    |  
|                                                      | Income tax receivable                                    |         |              |             |                |              |        | (25          | ) |  |            |           |   |  |            | 319       |  
|                                                      | Note receivable                                          |         |              |             |                |              |        |             |   |  |            | (106,709   | ) |  |            | 56,069    |  
|                                                      | Due from subsidiaries                                    |         |              | 4,991        |                |              |        | 1,810        |   |  |            |           |   |  |            |          |  
|                                                      | Investments in affiliates                                |         |              |             |                |              |        | 1,629        |   |  |            | (2,706,658 | ) |  |            | 41,714    |  
|                                                      | Restricted cash                                          |         |              |             |                |              |        | 1            |   |  |            |           |   |  |            | 16,443    |  
|                                                      | Intangible assets, net                                   |         |              | 16           |                |              |        | 1            |   |  |            |           |   |  |            | 18,825    |  
|                                                      |                                                          |         |              |              |                |              |        |              |   |  |            |            |   |  |            |          
|                                                      |                                                          |         | 37,552       |              |                |              | 78,032 |              |   |  | (2,813,367 | )          |   |  | 2,938,160  |          
|                                                      |                                                          |         |              |              |                |              |        |              |   |  |            |            |   |  |            |          
|Liabilities, Minority Interests and Partners capital |                                                          |         |              |              |                |              |        |              |   |  |            |            |   |  |            |          
|                                                      | Accounts payable, accrued expenses and other liabilities |         |              | 258          |                |              |        | 68,193       |   |  |            |           |   |  |            | 117,998   |  
|                                                      | Accrued interest                                         |         |              |             |                |              |        | 67           |   |  |            |           |   |  |            | 41,144    |  
|                                                      | Due to Interstate Hotels & Resorts                       |         |              |             |                |              |        | 5,099        |   |  |            |            |   |  |            | 9,954     |  
|                                                      | Dividends and Distributions payable                      |         |              |             |                |              |        | 3            |   |  |            |           |   |  |            | 449       |  
|                                                      | Deferred income taxes                                    |         |              |             |                |              |        | (337         | ) |  |            |           |   |  |            | 6,358     |  
|                                                      | Interest rate swaps                                      |         |              |             |                |              |        |             |   |  |            |           |   |  |            | 6,802     |  
|                                                      | Notes payable to MeriStar Hospitality                    |         |              |             |                |              |        |             |   |  |            |           |   |  |            | 357,408   |  
|                                                      | Long-term debt                                           |         |              |             |                |              |        | 19,500       |   |  |            | (106,709   | ) |  |            | 1,312,246 |  
|                                                      |                                                          |         |              |              |                |              |        |              |   |  |            |            |   |  |            |          
|Total liabilities                                     |                                                          |         | 258          |              |                |              | 92,525 |              |   |  | (106,709   | )          |   |  | 1,852,359  |          
|                                                      |                                                          |         |              |              |                |              |        |              |   |  |            |            |   |  |            |          
|                                                      | Minority interests                                       |         |              |             |                |              |        |             |   |  |            |           |   |  |            | 2,629     |  
|                                                      | Redeemable OP units at redemption value                  |         |              |             |                |              |        |             |   |  |            |           |   |  |            | 45,996    |  
|                                                      | Partners capital                                        |         |              | 37,294       |                |              |        | (14,493      | ) |  |            | (2,706,658 | ) |  |            | 1,037,176 |  
|                                                      |                                                          |         |              |              |                |              |        |              |   |  |            |            |   |  |            |          
|                                                      |                                                          |         | 37,552       |              |                |              | 78,032 |              |   |  | (2,813,367 | )          |   |  | 29,538,160 |          
|                                                      |                                                          |         |              |              |                |              |        |              |   |  |            |            |   |  |            |          





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended September 30, 2002
(in thousands)



|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |       |             |        |               |       |              |     |             |   |              |   |              |   |   |     |     |   |    |   |   |   |        |        |  
|--------------------------------------- | --------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------- | ----- | ----------- | ------ | ------------- | ----- | ------------ | --- | ----------- | - | ------------ | - | ------------ | - | - | --- | --- | - | -- | - | - | - | ------ | ------ | -
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |       | MeriStar    |        |               |       |              |     |             |   |              |   |              |   |   |     |     |   |    |   |   |   |       
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |       | Hospitality |        | Non-Guarantor |       | MeriStar Sub |     | AGH Upreit, |   | MeriStar Sub |   | MeriStar Sub
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |       | OP, L.P.    |        | Subsidiaries  |       | 7C, LLC      |     | LLC         |   | 5N, LLC      |   | 8A, LLC     
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |       |             |        |               |       |              |     |             |   |              |   |             
|                                        | Participating lease revenue |                                                     |                                                                                                                                                                |                                                                                          |       |             |        | 34,942        |       |              |     |            |   |              |   |             |   |   |     | 153 |   |    |   |  |  
|                                        |                             | Hotel operations:                                   |                                                                                                                                                                |                                                                                           |      |             |        |               |      |              |     |             |  |              |   |              |  |   |     |     |  |    |   |   |  |       
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |       |            |        |               |       |             |     |             |   |             |   |              |   |  |     |     |   |   |   |   |   |       |       
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |       |            |        |               |       |             |     |             |   |             |   |              |   |  |     |     |   |   |   |   |   |       |       
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |       |            |        |               |       |             |     |             |   |             |   |              |   |  |     |     |   |   |   |   |   |       |       
|                                        |                             | Office rental and other revenues                    |                                                                                                                                                                |                                                                                           | 2,073 |             |        |               | 1,570 |              |     |             |  |              |   |              |  |   |     |     |  |    |   |   |  |       
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |       |             |        |               |       |              |     |             |   |              |   |              |   |   |     |     |   |    |   |  
|Total revenue                           |                             |                                                     | 2,073                                                                                                                                                          |                                                                                           |       |             | 36,512 |               |       |              |    |             |   |              |  |              |   |   | 153 |     |   |    |  |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |       |             |        |               |       |              |     |             |   |              |   |              |   |   |     |     |   |    |   |  
|Hotel operating expenses by department: |                             |                                                     |                                                                                                                                                                |                                                                                           |       |             |        |               |       |              |     |             |   |              |   |              |   |   |     |     |   |    |   |  
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |       |            |        |               |       |             |     |             |   |             |   |              |   |  |     |     |   |   |   |   |   |       |       
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |       |            |        |               |       |             |     |             |   |             |   |              |   |  |     |     |   |   |   |   |   |       |       
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |       |            |        |               |       |             |     |             |   |             |   |              |   |  |     |     |   |   |   |   |   |       |       
|                                        |                             | Office rental, parking and other operating expenses |                                                                                                                                                                |                                                                                           |      |             |        |               | 427   |              |     |             |  |              |   |              |  |   |     |     |  |    |   |   |  |       
|Undistributed operating expenses:       |                             |                                                     |                                                                                                                                                                |                                                                                           |       |             |        |               |       |              |     |             |   |              |   |              |   |   |     |     |   |    |   |  
|                                        |                             |                                                     | Administrative and general                                                                                                                                     |                                                                                           |       | 2,247       |        |               |       | 83           |     |             |   |             |   |              |   |  |     |     |   |   |   |   |   |       |       
|                                        |                             |                                                     | Property operating costs                                                                                                                                       |                                                                                           |       |            |        |               |       | 2            |     |             |   |             |   |              |   |  |     |     |   |   |   |   |   |       |       
|                                        |                             |                                                     | Property taxes, insurance and other                                                                                                                            |                                                                                           |       | (2,378      | )      |               |       | 5,815        |     |             |   |             |   |              |   |  |     |     |   | 25 |   |   |   |       |       
|                                        |                             |                                                     | Depreciation and amortization                                                                                                                                  |                                                                                           |       | 2,506       |        |               |       | 13,460       |     |             |   |             |   |              |   |  |     |     |   | 33 |   |   |   |       |       
|                                        |                             |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                                                                           |       | 1,132       |        |               |       |             |     |             |   |             |   |              |   |  |     |     |   |   |   |   |   |       |       
|                                        |                             |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                                                                           |       |            |        |               |       |             |     |             |   |             |   |              |   |  |     |     |   |   |   |   |   |       |       
|                                        |                             |                                                     | Swap termination fees                                                                                                                                          |                                                                                           |       |            |        |               |       |             |     |             |   |             |   |              |   |  |     |     |   |   |   |   |   |       |       
|                                        |                             |                                                     | Write down of deferred costs                                                                                                                                   |                                                                                           |       |            |        |               |       |             |     |             |   |             |   |              |   |  |     |     |   |   |   |   |   |       |       
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                                                                           |       |            |        |               |       |             |     |             |   |             |   |              |   |  |     |     |   |   |   |   |   |       |       
|                                        |                             |                                                     | FelCor merger costs                                                                                                                                            |                                                                                           |       |            |        |               |       |             |     |             |   |             |   |              |   |  |     |     |   |   |   |   |   |       |       
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality Corporation                                                                                                   |                                                                                           |       |            |        |               |       |             |     |             |   |             |   |              |   |  |     |     |   |   |   |   |   |       |       
|                                        |                             |                                                     | Restructuring charge                                                                                                                                           |                                                                                           |       |            |        |               |       |             |     |             |   |             |   |              |   |  |     |     |   |   |   |   |   |       |       
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |       |             |        |               |       |              |     |             |   |              |   |              |   |   |     |     |   |    |   |  
|                                        |                             |                                                     | Total operating expenses                                                                                                                                       |                                                                                           |       | 3,507       |        |               |       | 19,787       |     |             |   |             |   |              |   |  |     |     |   | 58 |   |   |   |       |       
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |       |             |        |               |       |              |     |             |   |              |   |              |   |   |     |     |   |    |   |  
|                                        |                             |                                                     | Net operating income                                                                                                                                           |                                                                                           |       | (1,434      | )      |               |       | 16,725       |     |             |   |             |   |              |   |  |     |     |   | 95 |   |   |   |       |       
|                                        |                             |                                                     | Interest expense, net                                                                                                                                          |                                                                                           |       | 26,249      |        |               |       | 6,411        |     |             |   |             |   |              |   |  |     |     |   | (2 | ) |   |   |       |       
|                                        |                             |                                                     | Equity in income from consolidated entities                                                                                                                    |                                                                                           |       | 3,669       |        |               |       |             |     |             |   |             |   |              |   |  |     |     |   |   |   |   |   |       |       
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |       |             |        |               |       |              |     |             |   |              |   |              |   |   |     |     |   |    |   |  
|                                        |                             |                                                     | Income (loss) from continuing operations before minority interests,
income tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                                                                           |       | (31,352     | )      |               |       | 10,314       |     |             |   |             |   |              |   |  |     |     |   | 97 |   |   |   |       |       
|                                        |                             |                                                     | Minority interests                                                                                                                                             |                                                                                           |       | (18         | )      |               |       |             |     |             |   |             |   |              |   |  |     |     |   |   |   |   |   |       |       
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |       |             |        |               |       |              |     |             |   |              |   |              |   |   |     |     |   |    |   |  
|                                        |                             |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                                                                           |       | (31,334     | )      |               |       | 10,314       |     |             |   |             |   |              |   |  |     |     |   | 97 |   |   |   |       |       
|                                        |                             |                                                     | Income tax benefit                                                                                                                                             |                                                                                           |       | (595        | )      |               |       |             |     |             |   |             |   |              |   |  |     |     |   |   |   |   |   |       |       
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |       |             |        |               |       |              |     |             |   |              |   |              |   |   |     |     |   |    |   |  
|                                        |                             |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                                                                           |       | (30,739     | )      |               |       | 10,314       |     |             |   |             |   |              |   |  |     |     |   | 97 |   |   |   |       |       
|                                        |                             |                                                     | Discontinued operations:                                                                                                                                       |                                                                                           |       |             |        |               |       |              |     |             |   |              |   |              |   |   |     |     |   |    |   |   |   |        |       
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) from operations of assets sold including loss on disposal
of $6,403 in 2002 |       |             |       |               |       |              | 126 |             |   |              |  |              |   |   |    |     |   |    |  |   |   |        | (4,710 | )
|                                        |                             |                                                     |                                                                                                                                                                | Income tax benefit                                                                        |       |             |       |               |       |              |    |             |   |              |  |              |   |   |    |     |   |    |  |   |   |        | 96     |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |       |             |        |               |       |              |     |             |   |              |   |              |   |   |     |     |   |    |   |  
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations                                                  |       |             |       |               |       |              | 126 |             |   |              |  |              |   |   |    |     |   |    |  |   |   |        | (4,614 | )
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                                                                           |       |            |        |               |       |             |     |             |   |             |   |              |   |  |     |     |   |   |   |   |   |       |       
|                                        |                             |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                                                                           |       |            |        |               |       |             |     |             |   |             |   |              |   |  |     |     |   |   |   |   |   |       |       
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |       |             |        |               |       |              |     |             |   |              |   |              |   |   |     |     |   |    |   |  
|                                        |                             |                                                     | Net income (loss)                                                                                                                                              |                                                                                           |       | (30,739     | )      |               |       | 10,440       |     |             |   |             |   |              |   |  |     |     |   | 97 |   |   |   | (4,614 | )     
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |       |             |        |               |       |              |     |             |   |              |   |              |   |   |     |     |   |    |   |  





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended September 30, 2002
(in thousands)

|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |   |              |   |              |     |              |   |              |       |              |   |     |     |     |   |      |     |     |   |     |   | 
|--------------------------------------- | --------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------- | - | ------------ | - | ------------ | - | ------------ | --- | ------------ | - | ------------ | ----- | ------------ | - | --- | --- | --- | - | ---- | --- | --- | - | --- | - | 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   | MeriStar Sub |   | MeriStar Sub |   | MeriStar Sub |     | MeriStar Sub |   | MeriStar Sub |       | MeriStar Sub
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   | 8F, L.P.     |   | 8G, LLC      |   | 6H, L.P.     |     | 8B, LLC      |   | 1C, L.P.     |       | 8E, LLC     
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |   |              |   |              |     |              |   |              |       |             
|                                        | Participating lease revenue |                                                     |                                                                                                                                                                | 571                                                                                       |   |              |   |             |   |              |     | 371          |   |              |       | 1,435        |   |     |     | 175 |   |      |     | 397 |  
|                                        |                             | Hotel operations:                                   |                                                                                                                                                                |                                                                                           |  |              |   |              |  |              |     |              |  |              |       |              |  |     |     |     |  |      |     |     |  |    
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |   |             |   |              |   |             |     |              |   |             |       |              |   |    |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |   |             |   |              |   |             |     |              |   |             |       |              |   |    |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |   |             |   |              |   |             |     |              |   |             |       |              |   |    |     |     |   |     |     |     |   |    |  
|                                        |                             | Office rental and other revenues                    |                                                                                                                                                                |                                                                                           |  |              |   |              |  |              |     |              |  |              |       |              |  |     |     |     |  |      |     |     | 5 |    
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |   |              |   |              |     |              |   |              |       |              |   |     |     |     |   |      |     |    
|Total revenue                           |                             |                                                     | 571                                                                                                                                                            |                                                                                           |   |              |  |              |   |              | 371 |              |   |              | 1,435 |              |   |     | 175 |     |   |      | 402 |    
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |   |              |   |              |     |              |   |              |       |              |   |     |     |     |   |      |     |    
|Hotel operating expenses by department: |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |   |              |   |              |     |              |   |              |       |              |   |     |     |     |   |      |     |    
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |   |             |   |              |   |             |     |              |   |             |       |              |   |    |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |   |             |   |              |   |             |     |              |   |             |       |              |   |    |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |   |             |   |              |   |             |     |              |   |             |       |              |   |    |     |     |   |     |     |     |   |    |  
|                                        |                             | Office rental, parking and other operating expenses |                                                                                                                                                                |                                                                                           |  |              |   |              |  |              |     |              |  |              |       |              |  |     |     |     |  |      |     |     |  |    
|Undistributed operating expenses:       |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |   |              |   |              |     |              |   |              |       |              |   |     |     |     |   |      |     |    
|                                        |                             |                                                     | Administrative and general                                                                                                                                     |                                                                                           |   |             |   |              |   |             |     |              |   |             |       |              |   | 1   |     |     |   | 3    |     |     |   | 1   |  
|                                        |                             |                                                     | Property operating costs                                                                                                                                       |                                                                                           |   |             |   |              |   |             |     |              |   |             |       |              |   |    |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | Property taxes, insurance and other                                                                                                                            |                                                                                           |   | 169          |   |              |   |             |     |              |   | 27           |       |              |   | 348 |     |     |   | 179  |     |     |   | 48  |  
|                                        |                             |                                                     | Depreciation and amortization                                                                                                                                  |                                                                                           |   | 113          |   |              |   |             |     |              |   | 108          |       |              |   | 595 |     |     |   | 254  |     |     |   | 152 |  
|                                        |                             |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                                                                           |   |             |   |              |   |             |     |              |   |             |       |              |   |    |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                                                                           |   |             |   |              |   |             |     |              |   |             |       |              |   |    |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | Swap termination fees                                                                                                                                          |                                                                                           |   |             |   |              |   |             |     |              |   |             |       |              |   |    |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | Write down of deferred costs                                                                                                                                   |                                                                                           |   |             |   |              |   |             |     |              |   |             |       |              |   |    |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                                                                           |   |             |   |              |   |             |     |              |   |             |       |              |   |    |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | FelCor merger costs                                                                                                                                            |                                                                                           |   |             |   |              |   |             |     |              |   |             |       |              |   |    |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality Corporation                                                                                                   |                                                                                           |   |             |   |              |   |             |     |              |   |             |       |              |   |    |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | Restructuring charge                                                                                                                                           |                                                                                           |   |             |   |              |   |             |     |              |   |             |       |              |   |    |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |   |              |   |              |     |              |   |              |       |              |   |     |     |     |   |      |     |    
|                                        |                             |                                                     | Total operating expenses                                                                                                                                       |                                                                                           |   | 282          |   |              |   |             |     |              |   | 135          |       |              |   | 944 |     |     |   | 436  |     |     |   | 201 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |   |              |   |              |     |              |   |              |       |              |   |     |     |     |   |      |     |    
|                                        |                             |                                                     | Net operating income                                                                                                                                           |                                                                                           |   | 289          |   |              |   |             |     |              |   | 236          |       |              |   | 491 |     |     |   | (261 | )   |     |   | 201 |  
|                                        |                             |                                                     | Interest expense, net                                                                                                                                          |                                                                                           |   | (3           | ) |              |   |             |     |              |   | (1           | )     |              |   | (27 | )   |     |   | (14  | )   |     |   | (1  | )
|                                        |                             |                                                     | Equity in income from consolidated entities                                                                                                                    |                                                                                           |   |             |   |              |   |             |     |              |   |             |       |              |   |    |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |   |              |   |              |     |              |   |              |       |              |   |     |     |     |   |      |     |    
|                                        |                             |                                                     | Income (loss) from continuing operations before minority interests,
income tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                                                                           |   | 292          |   |              |   |             |     |              |   | 237          |       |              |   | 518 |     |     |   | (247 | )   |     |   | 202 |  
|                                        |                             |                                                     | Minority interests                                                                                                                                             |                                                                                           |   |             |   |              |   |             |     |              |   |             |       |              |   |    |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |   |              |   |              |     |              |   |              |       |              |   |     |     |     |   |      |     |    
|                                        |                             |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                                                                           |   | 292          |   |              |   |             |     |              |   | 237          |       |              |   | 518 |     |     |   | (247 | )   |     |   | 202 |  
|                                        |                             |                                                     | Income tax benefit                                                                                                                                             |                                                                                           |   |             |   |              |   |             |     |              |   |             |       |              |   |    |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |   |              |   |              |     |              |   |              |       |              |   |     |     |     |   |      |     |    
|                                        |                             |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                                                                           |   | 292          |   |              |   |             |     |              |   | 237          |       |              |   | 518 |     |     |   | (247 | )   |     |   | 202 |  
|                                        |                             |                                                     | Discontinued operations:                                                                                                                                       |                                                                                           |   |              |   |              |   |              |     |              |   |              |       |              |   |     |     |     |   |      |     |     |   |     |  
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) from operations of assets sold including loss on disposal
of $6,403 in 2002 |   |              |  |              |   |              |    |              |   |              |      |              |   |     |    |     |   |      |    |     |   |     |  | 
|                                        |                             |                                                     |                                                                                                                                                                | Income tax benefit                                                                        |   |              |  |              |   |              |    |              |   |              |      |              |   |     |    |     |   |      |    |     |   |     |  | 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |   |              |   |              |     |              |   |              |       |              |   |     |     |     |   |      |     |    
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations                                                  |   |              |  |              |   |              |    |              |   |              |      |              |   |     |    |     |   |      |    |     |   |     |  | 
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                                                                           |   |             |   |              |   |             |     |              |   |             |       |              |   |    |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                                                                           |   |             |   |              |   |             |     |              |   |             |       |              |   |    |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |   |              |   |              |     |              |   |              |       |              |   |     |     |     |   |      |     |    
|                                        |                             |                                                     | Net income (loss)                                                                                                                                              |                                                                                           |   | 292          |   |              |   |             |     |              |   | 237          |       |              |   | 518 |     |     |   | (247 | )   |     |   | 202 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |   |              |   |              |     |              |   |              |       |              |   |     |     |     |   |      |     |    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended September 30, 2002
(in thousands)



|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |   |              |   |   |     |     |   |     |       |       |   |     |   | 
|--------------------------------------- | --------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------- | - | ------------ | --- | ------------ | - | ------------ | --- | ------------ | - | ------------ | - | ------------ | - | - | --- | --- | - | --- | ----- | ----- | - | --- | - | 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   | MeriStar Sub |     | MeriStar Sub |   | MeriStar Sub |     | MeriStar Sub |   | MeriStar Sub |   | MeriStar Sub
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   | 7F, LLC      |     | 5L, LLC      |   | 3C, LLC      |     | 5R, LLC      |   | 6D, LLC      |   | 6E, LLC     
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |   |             
|                                        | Participating lease revenue |                                                     |                                                                                                                                                                | 283                                                                                       |   |              |     | 172          |   |              |     | 340          |   |              |   |             |   |   |     | 480 |   |     |       | 1,354 |  
|                                        |                             | Hotel operations:                                   |                                                                                                                                                                |                                                                                           |  |              |     |              |  |              |     |              |  |              |   |              |  |   |     |     |  |     |       |       |  |    
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |   |             |     |              |   |             |     |              |   |             |   |              |   |  |     |     |   |    |       |       |   |    |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |   |             |     |              |   |             |     |              |   |             |   |              |   |  |     |     |   |    |       |       |   |    |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |   |             |     |              |   |             |     |              |   |             |   |              |   |  |     |     |   |    |       |       |   |    |  
|                                        |                             | Office rental and other revenues                    |                                                                                                                                                                |                                                                                           |  |              |     |              |  |              |     |              |  |              |   |              |  |   |     |     | 4 |     |       |       |  |    
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |   |              |   |   |     |     |   |     |       |      
|Total revenue                           |                             |                                                     | 283                                                                                                                                                            |                                                                                           |   |              | 172 |              |   |              | 340 |              |   |              |  |              |   |   | 484 |     |   |     | 1,354 |      
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |   |              |   |   |     |     |   |     |       |      
|Hotel operating expenses by department: |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |   |              |   |   |     |     |   |     |       |      
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |   |             |     |              |   |             |     |              |   |             |   |              |   |  |     |     |   |    |       |       |   |    |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |   |             |     |              |   |             |     |              |   |             |   |              |   |  |     |     |   |    |       |       |   |    |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |   |             |     |              |   |             |     |              |   |             |   |              |   |  |     |     |   |    |       |       |   |    |  
|                                        |                             | Office rental, parking and other operating expenses |                                                                                                                                                                |                                                                                           |  |              |     |              |  |              |     |              |  |              |   |              |  |   |     |     |  |     |       |       |  |    
|Undistributed operating expenses:       |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |   |              |   |   |     |     |   |     |       |      
|                                        |                             |                                                     | Administrative and general                                                                                                                                     |                                                                                           |   | 1            |     |              |   | 1            |     |              |   | 1            |   |              |   |  |     |     |   |    |       |       |   |    |  
|                                        |                             |                                                     | Property operating costs                                                                                                                                       |                                                                                           |   |             |     |              |   |             |     |              |   |             |   |              |   |  |     |     |   |    |       |       |   |    |  
|                                        |                             |                                                     | Property taxes, insurance and other                                                                                                                            |                                                                                           |   | 37           |     |              |   | 37           |     |              |   | 117          |   |              |   |  |     |     |   | 64  |       |       |   | 195 |  
|                                        |                             |                                                     | Depreciation and amortization                                                                                                                                  |                                                                                           |   | 115          |     |              |   | 34           |     |              |   | 176          |   |              |   |  |     |     |   | 127 |       |       |   | 422 |  
|                                        |                             |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                                                                           |   |             |     |              |   |             |     |              |   |             |   |              |   |  |     |     |   |    |       |       |   |    |  
|                                        |                             |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                                                                           |   |             |     |              |   |             |     |              |   |             |   |              |   |  |     |     |   |    |       |       |   |    |  
|                                        |                             |                                                     | Swap termination fees                                                                                                                                          |                                                                                           |   |             |     |              |   |             |     |              |   |             |   |              |   |  |     |     |   |    |       |       |   |    |  
|                                        |                             |                                                     | Write down of deferred costs                                                                                                                                   |                                                                                           |   |             |     |              |   |             |     |              |   |             |   |              |   |  |     |     |   |    |       |       |   |    |  
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                                                                           |   |             |     |              |   |             |     |              |   |             |   |              |   |  |     |     |   |    |       |       |   |    |  
|                                        |                             |                                                     | FelCor merger costs                                                                                                                                            |                                                                                           |   |             |     |              |   |             |     |              |   |             |   |              |   |  |     |     |   |    |       |       |   |    |  
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality Corporation                                                                                                   |                                                                                           |   |             |     |              |   |             |     |              |   |             |   |              |   |  |     |     |   |    |       |       |   |    |  
|                                        |                             |                                                     | Restructuring charge                                                                                                                                           |                                                                                           |   |             |     |              |   |             |     |              |   |             |   |              |   |  |     |     |   |    |       |       |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |   |              |   |   |     |     |   |     |       |      
|                                        |                             |                                                     | Total operating expenses                                                                                                                                       |                                                                                           |   | 153          |     |              |   | 72           |     |              |   | 294          |   |              |   |  |     |     |   | 191 |       |       |   | 617 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |   |              |   |   |     |     |   |     |       |      
|                                        |                             |                                                     | Net operating income                                                                                                                                           |                                                                                           |   | 130          |     |              |   | 100          |     |              |   | 46           |   |              |   |  |     |     |   | 293 |       |       |   | 737 |  
|                                        |                             |                                                     | Interest expense, net                                                                                                                                          |                                                                                           |   | (3           | )   |              |   | (2           | )   |              |   | (6           | ) |              |   |  |     |     |   | (7  | )     |       |   | (17 | )
|                                        |                             |                                                     | Equity in income from consolidated entities                                                                                                                    |                                                                                           |   |             |     |              |   |             |     |              |   |             |   |              |   |  |     |     |   |    |       |       |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |   |              |   |   |     |     |   |     |       |      
|                                        |                             |                                                     | Income (loss) from continuing operations before minority interests,
income tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                                                                           |   | 133          |     |              |   | 102          |     |              |   | 52           |   |              |   |  |     |     |   | 300 |       |       |   | 754 |  
|                                        |                             |                                                     | Minority interests                                                                                                                                             |                                                                                           |   |             |     |              |   |             |     |              |   |             |   |              |   |  |     |     |   |    |       |       |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |   |              |   |   |     |     |   |     |       |      
|                                        |                             |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                                                                           |   | 133          |     |              |   | 102          |     |              |   | 52           |   |              |   |  |     |     |   | 300 |       |       |   | 754 |  
|                                        |                             |                                                     | Income tax benefit                                                                                                                                             |                                                                                           |   |             |     |              |   |             |     |              |   |             |   |              |   |  |     |     |   |    |       |       |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |   |              |   |   |     |     |   |     |       |      
|                                        |                             |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                                                                           |   | 133          |     |              |   | 102          |     |              |   | 52           |   |              |   |  |     |     |   | 300 |       |       |   | 754 |  
|                                        |                             |                                                     | Discontinued operations:                                                                                                                                       |                                                                                           |   |              |     |              |   |              |     |              |   |              |   |              |   |   |     |     |   |     |       |       |   |     |  
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) from operations of assets sold including loss on disposal
of $6,403 in 2002 |   |              |    |              |   |              |    |              |   |              |  |              |   |   |    |     |   |     |      |       |   |     |  | 
|                                        |                             |                                                     |                                                                                                                                                                | Income tax benefit                                                                        |   |              |    |              |   |              |    |              |   |              |  |              |   |   |    |     |   |     |      |       |   |     |  | 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |   |              |   |   |     |     |   |     |       |      
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations                                                  |   |              |    |              |   |              |    |              |   |              |  |              |   |   |    |     |   |     |      |       |   |     |  | 
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                                                                           |   |             |     |              |   |             |     |              |   |             |   |              |   |  |     |     |   |    |       |       |   |    |  
|                                        |                             |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                                                                           |   |             |     |              |   |             |     |              |   |             |   |              |   |  |     |     |   |    |       |       |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |   |              |   |   |     |     |   |     |       |      
|                                        |                             |                                                     | Net income (loss)                                                                                                                                              |                                                                                           |   | 133          |     |              |   | 102          |     |              |   | 52           |   |              |   |  |     |     |   | 300 |       |       |   | 754 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |   |              |   |   |     |     |   |     |       |      





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended September 30, 2002
(in thousands)

|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |              |   |     |     |     |   |     |   |   |   |        |        |  
|--------------------------------------- | --------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------- | - | ------------ | --- | ------------ | - | ------------ | --- | ------------ | - | ------------ | --- | ------------ | - | --- | --- | --- | - | --- | - | - | - | ------ | ------ | -
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   | MeriStar Sub |     | MeriStar Sub |   | MeriStar Sub |     | MeriStar Sub |   | MeriStar Sub |     | MeriStar Sub
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   | 4E, L.P.     |     | 1B, LLC      |   | 5F, L.P.     |     | 6G, LLC      |   | 8C, LLC      |     | 4C, L.P     
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |             
|                                        | Participating lease revenue |                                                     |                                                                                                                                                                | 327                                                                                       |   |              |     | 664          |   |              |     | 615          |   |              |     | 591          |   |     |     | 487 |   |     |   |  |  
|                                        |                             | Hotel operations:                                   |                                                                                                                                                                |                                                                                           |  |              |     |              |  |              |     |              |  |              |     |              |  |     |     |     |  |     |   |   |  |       
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |   |   |   |       |       
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |   |   |   |       |       
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |   |   |   |       |       
|                                        |                             | Office rental and other revenues                    |                                                                                                                                                                |                                                                                           | 5 |              |     |              | 1 |              |     |              |  |              |     |              |  |     |     |     |  |     |   |   |  |       
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |              |   |     |     |     |   |     |   |  
|Total revenue                           |                             |                                                     | 332                                                                                                                                                            |                                                                                           |   |              | 665 |              |   |              | 615 |              |   |              | 591 |              |   |     | 487 |     |   |     |  |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |              |   |     |     |     |   |     |   |  
|Hotel operating expenses by department: |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |              |   |     |     |     |   |     |   |  
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |   |   |   |       |       
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |   |   |   |       |       
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |   |   |   |       |       
|                                        |                             | Office rental, parking and other operating expenses |                                                                                                                                                                |                                                                                           |  |              |     |              |  |              |     |              |  |              |     |              |  |     |     |     |  |     |   |   |  |       
|Undistributed operating expenses:       |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |              |   |     |     |     |   |     |   |  
|                                        |                             |                                                     | Administrative and general                                                                                                                                     |                                                                                           |   | 1            |     |              |   | 1            |     |              |   |             |     |              |   |    |     |     |   | 1   |   |   |   |       |       
|                                        |                             |                                                     | Property operating costs                                                                                                                                       |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |   |   |   |       |       
|                                        |                             |                                                     | Property taxes, insurance and other                                                                                                                            |                                                                                           |   | 107          |     |              |   | 52           |     |              |   | 102          |     |              |   | 104 |     |     |   | 157 |   |   |   |       |       
|                                        |                             |                                                     | Depreciation and amortization                                                                                                                                  |                                                                                           |   | 230          |     |              |   | 146          |     |              |   | 264          |     |              |   | 209 |     |     |   | 346 |   |   |   |       |       
|                                        |                             |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |   |   |   |       |       
|                                        |                             |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |   |   |   |       |       
|                                        |                             |                                                     | Swap termination fees                                                                                                                                          |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |   |   |   |       |       
|                                        |                             |                                                     | Write down of deferred costs                                                                                                                                   |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |   |   |   |       |       
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |   |   |   |       |       
|                                        |                             |                                                     | FelCor merger costs                                                                                                                                            |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |   |   |   |       |       
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality Corporation                                                                                                   |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |   |   |   |       |       
|                                        |                             |                                                     | Restructuring charge                                                                                                                                           |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |   |   |   |       |       
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |              |   |     |     |     |   |     |   |  
|                                        |                             |                                                     | Total operating expenses                                                                                                                                       |                                                                                           |   | 338          |     |              |   | 199          |     |              |   | 366          |     |              |   | 313 |     |     |   | 504 |   |   |   |       |       
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |              |   |     |     |     |   |     |   |  
|                                        |                             |                                                     | Net operating income                                                                                                                                           |                                                                                           |   | (6           | )   |              |   | 466          |     |              |   | 249          |     |              |   | 278 |     |     |   | (17 | ) |   |   |       |       
|                                        |                             |                                                     | Interest expense, net                                                                                                                                          |                                                                                           |   | (8           | )   |              |   | (6           | )   |              |   | (13          | )   |              |   | (13 | )   |     |   | (11 | ) |   |   |       |       
|                                        |                             |                                                     | Equity in income from consolidated entities                                                                                                                    |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |   |   |   |       |       
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |              |   |     |     |     |   |     |   |  
|                                        |                             |                                                     | Income (loss) from continuing operations before minority interests,
income tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                                                                           |   | 2            |     |              |   | 472          |     |              |   | 262          |     |              |   | 291 |     |     |   | (6  | ) |   |   |       |       
|                                        |                             |                                                     | Minority interests                                                                                                                                             |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |   |   |   |       |       
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |              |   |     |     |     |   |     |   |  
|                                        |                             |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                                                                           |   | 2            |     |              |   | 472          |     |              |   | 262          |     |              |   | 291 |     |     |   | (6  | ) |   |   |       |       
|                                        |                             |                                                     | Income tax benefit                                                                                                                                             |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |   |   |   |       |       
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |              |   |     |     |     |   |     |   |  
|                                        |                             |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                                                                           |   | 2            |     |              |   | 472          |     |              |   | 262          |     |              |   | 291 |     |     |   | (6  | ) |   |   |       |       
|                                        |                             |                                                     | Discontinued operations:                                                                                                                                       |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |              |   |     |     |     |   |     |   |   |   |        |       
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) from operations of assets sold including loss on disposal
of $6,403 in 2002 |   |              |    |              |   |              |    |              |   |              |    |              |   |     |    |     |   |     |  |   |   |        | (1,531 | )
|                                        |                             |                                                     |                                                                                                                                                                | Income tax benefit                                                                        |   |              |    |              |   |              |    |              |   |              |    |              |   |     |    |     |   |     |  |   |   |        | 32     |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |              |   |     |     |     |   |     |   |  
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations                                                  |   |              |    |              |   |              |    |              |   |              |    |              |   |     |    |     |   |     |  |   |   |        | (1,499 | )
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |   |   |   |       |       
|                                        |                             |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |   |   |   |       |       
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |              |   |     |     |     |   |     |   |  
|                                        |                             |                                                     | Net income (loss)                                                                                                                                              |                                                                                           |   | 2            |     |              |   | 472          |     |              |   | 262          |     |              |   | 291 |     |     |   | (6  | ) |   |   | (1,499 | )     
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |              |   |     |     |     |   |     |   |  





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended September 30, 2002
(in thousands)



|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |                  |   |     |       |       |   |     |     |     |   |     |   | 
|--------------------------------------- | --------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------- | - | ------------ | --- | ------------ | - | ------------ | --- | ------------ | - | ------------ | --- | ---------------- | - | --- | ----- | ----- | - | --- | --- | --- | - | --- | - | 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   | MeriStar Sub |     | MeriStar Sub |   | MeriStar Sub |     | MeriStar Sub |   | MeriStar Sub |     | MeriStar Sub    
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   | 4H, L.P.     |     | 7E, LLC      |   | 3D, LLC      |     | 1A, LLC      |   | 5E, LLC      |     | 7A Joint Venture
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |                 
|                                        | Participating lease revenue |                                                     |                                                                                                                                                                | 101                                                                                       |   |              |     | 313          |   |              |     | 518          |   |              |     | 481              |   |     |       | 1,353 |   |     |     | 354 |  
|                                        |                             | Hotel operations:                                   |                                                                                                                                                                |                                                                                           |  |              |     |              |  |              |     |              |  |              |     |                  |  |     |       |       |  |     |     |     |  |    
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |                  |   |    |       |       |   |    |     |     |   |    |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |                  |   |    |       |       |   |    |     |     |   |    |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |                  |   |    |       |       |   |    |     |     |   |    |  
|                                        |                             | Office rental and other revenues                    |                                                                                                                                                                |                                                                                           |  |              |     |              | 1 |              |     |              |  |              |     |                  |  |     |       |       |  |     |     |     |  |    
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |                  |   |     |       |       |   |     |     |    
|Total revenue                           |                             |                                                     | 101                                                                                                                                                            |                                                                                           |   |              | 314 |              |   |              | 518 |              |   |              | 481 |                  |   |     | 1,353 |       |   |     | 354 |    
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |                  |   |     |       |       |   |     |     |    
|Hotel operating expenses by department: |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |                  |   |     |       |       |   |     |     |    
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |                  |   |    |       |       |   |    |     |     |   |    |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |                  |   |    |       |       |   |    |     |     |   |    |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |                  |   |    |       |       |   |    |     |     |   |    |  
|                                        |                             | Office rental, parking and other operating expenses |                                                                                                                                                                |                                                                                           |  |              |     |              |  |              |     |              |  |              |     |                  |  |     |       |       |  |     |     |     |  |    
|Undistributed operating expenses:       |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |                  |   |     |       |       |   |     |     |    
|                                        |                             |                                                     | Administrative and general                                                                                                                                     |                                                                                           |   | 1            |     |              |   | 1            |     |              |   | 1            |     |                  |   | 1   |       |       |   | 1   |     |     |   |    |  
|                                        |                             |                                                     | Property operating costs                                                                                                                                       |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |                  |   |    |       |       |   |    |     |     |   |    |  
|                                        |                             |                                                     | Property taxes, insurance and other                                                                                                                            |                                                                                           |   | 52           |     |              |   | 41           |     |              |   | 76           |     |                  |   | 123 |       |       |   | 97  |     |     |   | 60  |  
|                                        |                             |                                                     | Depreciation and amortization                                                                                                                                  |                                                                                           |   | 135          |     |              |   | 158          |     |              |   | 202          |     |                  |   | 111 |       |       |   | 485 |     |     |   | 104 |  
|                                        |                             |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |                  |   |    |       |       |   |    |     |     |   |    |  
|                                        |                             |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |                  |   |    |       |       |   |    |     |     |   |    |  
|                                        |                             |                                                     | Swap termination fees                                                                                                                                          |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |                  |   |    |       |       |   |    |     |     |   |    |  
|                                        |                             |                                                     | Write down of deferred costs                                                                                                                                   |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |                  |   |    |       |       |   |    |     |     |   |    |  
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |                  |   |    |       |       |   |    |     |     |   |    |  
|                                        |                             |                                                     | FelCor merger costs                                                                                                                                            |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |                  |   |    |       |       |   |    |     |     |   |    |  
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality Corporation                                                                                                   |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |                  |   |    |       |       |   |    |     |     |   |    |  
|                                        |                             |                                                     | Restructuring charge                                                                                                                                           |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |                  |   |    |       |       |   |    |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |                  |   |     |       |       |   |     |     |    
|                                        |                             |                                                     | Total operating expenses                                                                                                                                       |                                                                                           |   | 188          |     |              |   | 200          |     |              |   | 279          |     |                  |   | 235 |       |       |   | 583 |     |     |   | 164 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |                  |   |     |       |       |   |     |     |    
|                                        |                             |                                                     | Net operating income                                                                                                                                           |                                                                                           |   | (87          | )   |              |   | 114          |     |              |   | 239          |     |                  |   | 246 |       |       |   | 770 |     |     |   | 190 |  
|                                        |                             |                                                     | Interest expense, net                                                                                                                                          |                                                                                           |   | (3           | )   |              |   | (5           | )   |              |   | (12          | )   |                  |   | (5  | )     |       |   | (8  | )   |     |   | (10 | )
|                                        |                             |                                                     | Equity in income from consolidated entities                                                                                                                    |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |                  |   |    |       |       |   |    |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |                  |   |     |       |       |   |     |     |    
|                                        |                             |                                                     | Income (loss) from continuing operations before minority interests,
income tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                                                                           |   | (84          | )   |              |   | 119          |     |              |   | 251          |     |                  |   | 251 |       |       |   | 778 |     |     |   | 200 |  
|                                        |                             |                                                     | Minority interests                                                                                                                                             |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |                  |   |    |       |       |   |    |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |                  |   |     |       |       |   |     |     |    
|                                        |                             |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                                                                           |   | (84          | )   |              |   | 119          |     |              |   | 251          |     |                  |   | 251 |       |       |   | 778 |     |     |   | 200 |  
|                                        |                             |                                                     | Income tax benefit                                                                                                                                             |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |                  |   |    |       |       |   |    |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |                  |   |     |       |       |   |     |     |    
|                                        |                             |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                                                                           |   | (84          | )   |              |   | 119          |     |              |   | 251          |     |                  |   | 251 |       |       |   | 778 |     |     |   | 200 |  
|                                        |                             |                                                     | Discontinued operations:                                                                                                                                       |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |                  |   |     |       |       |   |     |     |     |   |     |  
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) from operations of assets sold including loss on disposal
of $6,403 in 2002 |   |              |    |              |   |              |    |              |   |              |    |                  |   |     |      |       |   |     |    |     |   |     |  | 
|                                        |                             |                                                     |                                                                                                                                                                | Income tax benefit                                                                        |   |              |    |              |   |              |    |              |   |              |    |                  |   |     |      |       |   |     |    |     |   |     |  | 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |                  |   |     |       |       |   |     |     |    
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations                                                  |   |              |    |              |   |              |    |              |   |              |    |                  |   |     |      |       |   |     |    |     |   |     |  | 
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |                  |   |    |       |       |   |    |     |     |   |    |  
|                                        |                             |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |                  |   |    |       |       |   |    |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |                  |   |     |       |       |   |     |     |    
|                                        |                             |                                                     | Net income (loss)                                                                                                                                              |                                                                                           |   | (84          | )   |              |   | 119          |     |              |   | 251          |     |                  |   | 251 |       |       |   | 778 |     |     |   | 200 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |                  |   |     |       |       |   |     |     |    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended September 30, 2002
(in thousands)

|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |              |   |     |     |     |   |     |     |     |   |      |   | 
|--------------------------------------- | --------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------- | - | ------------ | --- | ------------ | - | ------------ | --- | ------------ | - | ------------ | --- | ------------ | - | --- | --- | --- | - | --- | --- | --- | - | ---- | - | 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   | MeriStar Sub |     | MeriStar Sub |   | MeriStar Sub |     | MeriStar Sub |   | MeriStar Sub |     | MeriStar Sub
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   | 6K, LLC      |     | 2B, LLC      |   | 3A, LLC      |     | 4A, L.P.     |   | 4D, LLC      |     | 2A, LLC     
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |             
|                                        | Participating lease revenue |                                                     |                                                                                                                                                                | 1,011                                                                                     |   |              |     | 152          |   |              |     | 133          |   |              |     | 248          |   |     |     | 147 |   |     |     | 163 |  
|                                        |                             | Hotel operations:                                   |                                                                                                                                                                |                                                                                           |  |              |     |              |  |              |     |              |  |              |     |              |  |     |     |     |  |     |     |     |  |     
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |     |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |     |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |     |  
|                                        |                             | Office rental and other revenues                    |                                                                                                                                                                |                                                                                           |  |              |     |              |  |              |     |              |  |              |     |              |  |     |     |     |  |     |     |     |  |     
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |              |   |     |     |     |   |     |     |    
|Total revenue                           |                             |                                                     | 1,011                                                                                                                                                          |                                                                                           |   |              | 152 |              |   |              | 133 |              |   |              | 248 |              |   |     | 147 |     |   |     | 163 |    
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |              |   |     |     |     |   |     |     |    
|Hotel operating expenses by department: |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |              |   |     |     |     |   |     |     |    
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |     |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |     |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |     |  
|                                        |                             | Office rental, parking and other operating expenses |                                                                                                                                                                |                                                                                           |  |              |     |              |  |              |     |              |  |              |     |              |  |     |     |     |  |     |     |     |  |     
|Undistributed operating expenses:       |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |              |   |     |     |     |   |     |     |    
|                                        |                             |                                                     | Administrative and general                                                                                                                                     |                                                                                           |   |             |     |              |   | 1            |     |              |   | 1            |     |              |   | 1   |     |     |   | 1   |     |     |   | (1   | )
|                                        |                             |                                                     | Property operating costs                                                                                                                                       |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |     |  
|                                        |                             |                                                     | Property taxes, insurance and other                                                                                                                            |                                                                                           |   | 106          |     |              |   | 48           |     |              |   | 31           |     |              |   | 65  |     |     |   | 45  |     |     |   | 49   |  
|                                        |                             |                                                     | Depreciation and amortization                                                                                                                                  |                                                                                           |   | 182          |     |              |   | 102          |     |              |   | 61           |     |              |   |    |     |     |   | 75  |     |     |   | 80   |  
|                                        |                             |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |     |  
|                                        |                             |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |     |  
|                                        |                             |                                                     | Swap termination fees                                                                                                                                          |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |     |  
|                                        |                             |                                                     | Write down of deferred costs                                                                                                                                   |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |     |  
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |     |  
|                                        |                             |                                                     | FelCor merger costs                                                                                                                                            |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |     |  
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality Corporation                                                                                                   |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |     |  
|                                        |                             |                                                     | Restructuring charge                                                                                                                                           |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |     |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |              |   |     |     |     |   |     |     |    
|                                        |                             |                                                     | Total operating expenses                                                                                                                                       |                                                                                           |   | 288          |     |              |   | 151          |     |              |   | 93           |     |              |   | 66  |     |     |   | 121 |     |     |   | 128  |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |              |   |     |     |     |   |     |     |    
|                                        |                             |                                                     | Net operating income                                                                                                                                           |                                                                                           |   | 723          |     |              |   | 1            |     |              |   | 40           |     |              |   | 182 |     |     |   | 26  |     |     |   | 35   |  
|                                        |                             |                                                     | Interest expense, net                                                                                                                                          |                                                                                           |   | (10          | )   |              |   | 95           |     |              |   | (15          | )   |              |   | (11 | )   |     |   | (13 | )   |     |   | 170  |  
|                                        |                             |                                                     | Equity in income from consolidated entities                                                                                                                    |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |     |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |              |   |     |     |     |   |     |     |    
|                                        |                             |                                                     | Income (loss) from continuing operations before minority interests,
income tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                                                                           |   | 733          |     |              |   | (94          | )   |              |   | 55           |     |              |   | 193 |     |     |   | 39  |     |     |   | (135 | )
|                                        |                             |                                                     | Minority interests                                                                                                                                             |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |     |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |              |   |     |     |     |   |     |     |    
|                                        |                             |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                                                                           |   | 733          |     |              |   | (94          | )   |              |   | 55           |     |              |   | 193 |     |     |   | 39  |     |     |   | (135 | )
|                                        |                             |                                                     | Income tax benefit                                                                                                                                             |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |     |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |              |   |     |     |     |   |     |     |    
|                                        |                             |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                                                                           |   | 733          |     |              |   | (94          | )   |              |   | 55           |     |              |   | 193 |     |     |   | 39  |     |     |   | (135 | )
|                                        |                             |                                                     | Discontinued operations:                                                                                                                                       |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |              |   |     |     |     |   |     |     |     |   |      |  
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) from operations of assets sold including loss on disposal
of $6,403 in 2002 |   |              |    |              |   |              |    |              |   |              |    |              |   |     |    |     |   |     |    |     |   |      |  | 
|                                        |                             |                                                     |                                                                                                                                                                | Income tax benefit                                                                        |   |              |    |              |   |              |    |              |   |              |    |              |   |     |    |     |   |     |    |     |   |      |  | 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |              |   |     |     |     |   |     |     |    
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations                                                  |   |              |    |              |   |              |    |              |   |              |    |              |   |     |    |     |   |     |    |     |   |      |  | 
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |     |  
|                                        |                             |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                                                                           |   |             |     |              |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |     |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |              |   |     |     |     |   |     |     |    
|                                        |                             |                                                     | Net income (loss)                                                                                                                                              |                                                                                           |   | 733          |     |              |   | (94          | )   |              |   | 55           |     |              |   | 193 |     |     |   | 39  |     |     |   | (135 | )
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |     |              |   |              |     |              |   |     |     |     |   |     |     |    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended September 30, 2002
(in thousands)



|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |    |             |   |              |     |              |   |              |     |              |   |     |       |       |     |     |     |     |   |     |   | 
|--------------------------------------- | --------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------- | - | ------------ | -- | ----------- | - | ------------ | --- | ------------ | - | ------------ | --- | ------------ | - | --- | ----- | ----- | --- | --- | --- | --- | - | --- | - | 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   | MeriStar Sub |    | MDV Limited |   | MeriStar Sub |     | MeriStar Sub |   | MeriStar Sub |     | MeriStar Sub
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   | 6L, LLC      |    | Partnership |   | 5C, LLC      |     | 6J, LLC      |   | 1D, L.P.     |     | 7B, L.P.    
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |    |             |   |              |     |              |   |              |     |             
|                                        | Participating lease revenue |                                                     |                                                                                                                                                                | 541                                                                                       |   |              |    | 71          |   |              |     | 395          |   |              |     | 477          |   |     |       | 1,279 |     |     |     | 391 |  
|                                        |                             | Hotel operations:                                   |                                                                                                                                                                |                                                                                           |  |              |    |             |  |              |     |              |  |              |     |              |  |     |       |       |    |     |     |     |  |    
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |   |             |    |             |   |             |     |              |   |             |     |              |   |    |       |       |     |    |     |     |   |    |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |   |             |    |             |   |             |     |              |   |             |     |              |   |    |       |       |     |    |     |     |   |    |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |   |             |    |             |   |             |     |              |   |             |     |              |   |    |       |       |     |    |     |     |   |    |  
|                                        |                             | Office rental and other revenues                    |                                                                                                                                                                |                                                                                           |  |              |    |             |  |              |     |              |  |              |     |              |  |     |       |       | 114 |     |     |     |  |    
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |    |             |   |              |     |              |   |              |     |              |   |     |       |       |     |     |     |    
|Total revenue                           |                             |                                                     | 541                                                                                                                                                            |                                                                                           |   |              | 71 |             |   |              | 395 |              |   |              | 477 |              |   |     | 1,393 |       |     |     | 391 |    
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |    |             |   |              |     |              |   |              |     |              |   |     |       |       |     |     |     |    
|Hotel operating expenses by department: |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |    |             |   |              |     |              |   |              |     |              |   |     |       |       |     |     |     |    
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |   |             |    |             |   |             |     |              |   |             |     |              |   |    |       |       |     |    |     |     |   |    |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |   |             |    |             |   |             |     |              |   |             |     |              |   |    |       |       |     |    |     |     |   |    |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |   |             |    |             |   |             |     |              |   |             |     |              |   |    |       |       |     |    |     |     |   |    |  
|                                        |                             | Office rental, parking and other operating expenses |                                                                                                                                                                |                                                                                           |  |              |    |             |  |              |     |              |  |              |     |              |  |     |       |       | 33  |     |     |     |  |    
|Undistributed operating expenses:       |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |    |             |   |              |     |              |   |              |     |              |   |     |       |       |     |     |     |    
|                                        |                             |                                                     | Administrative and general                                                                                                                                     |                                                                                           |   |             |    |             |   |             |     |              |   | 1            |     |              |   |    |       |       |     |    |     |     |   |    |  
|                                        |                             |                                                     | Property operating costs                                                                                                                                       |                                                                                           |   |             |    |             |   |             |     |              |   |             |     |              |   |    |       |       |     |    |     |     |   |    |  
|                                        |                             |                                                     | Property taxes, insurance and other                                                                                                                            |                                                                                           |   | 52           |    |             |   | 29           |     |              |   | 145          |     |              |   | 67  |       |       |     | 361 |     |     |   | (34 | )
|                                        |                             |                                                     | Depreciation and amortization                                                                                                                                  |                                                                                           |   | 222          |    |             |   | 35           |     |              |   | 149          |     |              |   | 160 |       |       |     | 584 |     |     |   | 231 |  
|                                        |                             |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                                                                           |   |             |    |             |   |             |     |              |   |             |     |              |   |    |       |       |     |    |     |     |   |    |  
|                                        |                             |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                                                                           |   |             |    |             |   |             |     |              |   |             |     |              |   |    |       |       |     |    |     |     |   |    |  
|                                        |                             |                                                     | Swap termination fees                                                                                                                                          |                                                                                           |   |             |    |             |   |             |     |              |   |             |     |              |   |    |       |       |     |    |     |     |   |    |  
|                                        |                             |                                                     | Write down of deferred costs                                                                                                                                   |                                                                                           |   |             |    |             |   |             |     |              |   |             |     |              |   |    |       |       |     |    |     |     |   |    |  
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                                                                           |   |             |    |             |   |             |     |              |   |             |     |              |   |    |       |       |     |    |     |     |   |    |  
|                                        |                             |                                                     | FelCor merger costs                                                                                                                                            |                                                                                           |   |             |    |             |   |             |     |              |   |             |     |              |   |    |       |       |     |    |     |     |   |    |  
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality Corporation                                                                                                   |                                                                                           |   |             |    |             |   |             |     |              |   |             |     |              |   |    |       |       |     |    |     |     |   |    |  
|                                        |                             |                                                     | Restructuring charge                                                                                                                                           |                                                                                           |   |             |    |             |   |             |     |              |   |             |     |              |   |    |       |       |     |    |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |    |             |   |              |     |              |   |              |     |              |   |     |       |       |     |     |     |    
|                                        |                             |                                                     | Total operating expenses                                                                                                                                       |                                                                                           |   | 274          |    |             |   | 64           |     |              |   | 295          |     |              |   | 227 |       |       |     | 978 |     |     |   | 197 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |    |             |   |              |     |              |   |              |     |              |   |     |       |       |     |     |     |    
|                                        |                             |                                                     | Net operating income                                                                                                                                           |                                                                                           |   | 267          |    |             |   | 7            |     |              |   | 100          |     |              |   | 250 |       |       |     | 415 |     |     |   | 194 |  
|                                        |                             |                                                     | Interest expense, net                                                                                                                                          |                                                                                           |   | (5           | )  |             |   |             |     |              |   | (11          | )   |              |   | (12 | )     |       |     | (3  | )   |     |   | (41 | )
|                                        |                             |                                                     | Equity in income from consolidated entities                                                                                                                    |                                                                                           |   |             |    |             |   |             |     |              |   |             |     |              |   |    |       |       |     |    |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |    |             |   |              |     |              |   |              |     |              |   |     |       |       |     |     |     |    
|                                        |                             |                                                     | Income (loss) from continuing operations before minority interests,
income tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                                                                           |   | 272          |    |             |   | 7            |     |              |   | 111          |     |              |   | 262 |       |       |     | 418 |     |     |   | 235 |  
|                                        |                             |                                                     | Minority interests                                                                                                                                             |                                                                                           |   |             |    |             |   |             |     |              |   |             |     |              |   |    |       |       |     |    |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |    |             |   |              |     |              |   |              |     |              |   |     |       |       |     |     |     |    
|                                        |                             |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                                                                           |   | 272          |    |             |   | 7            |     |              |   | 111          |     |              |   | 262 |       |       |     | 418 |     |     |   | 235 |  
|                                        |                             |                                                     | Income tax benefit                                                                                                                                             |                                                                                           |   |             |    |             |   |             |     |              |   |             |     |              |   |    |       |       |     |    |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |    |             |   |              |     |              |   |              |     |              |   |     |       |       |     |     |     |    
|                                        |                             |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                                                                           |   | 272          |    |             |   | 7            |     |              |   | 111          |     |              |   | 262 |       |       |     | 418 |     |     |   | 235 |  
|                                        |                             |                                                     | Discontinued operations:                                                                                                                                       |                                                                                           |   |              |    |             |   |              |     |              |   |              |     |              |   |     |       |       |     |     |     |     |   |     |  
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) from operations of assets sold including loss on disposal
of $6,403 in 2002 |   |              |   |             |   |              |    |              |   |              |    |              |   |     |      |       |     |     |    |     |   |     |  | 
|                                        |                             |                                                     |                                                                                                                                                                | Income tax benefit                                                                        |   |              |   |             |   |              |    |              |   |              |    |              |   |     |      |       |     |     |    |     |   |     |  | 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |    |             |   |              |     |              |   |              |     |              |   |     |       |       |     |     |     |    
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations                                                  |   |              |   |             |   |              |    |              |   |              |    |              |   |     |      |       |     |     |    |     |   |     |  | 
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                                                                           |   |             |    |             |   |             |     |              |   |             |     |              |   |    |       |       |     |    |     |     |   |    |  
|                                        |                             |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                                                                           |   |             |    |             |   |             |     |              |   |             |     |              |   |    |       |       |     |    |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |    |             |   |              |     |              |   |              |     |              |   |     |       |       |     |     |     |    
|                                        |                             |                                                     | Net income (loss)                                                                                                                                              |                                                                                           |   | 272          |    |             |   | 7            |     |              |   | 111          |     |              |   | 262 |       |       |     | 418 |     |     |   | 235 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |    |             |   |              |     |              |   |              |     |              |   |     |       |       |     |     |     |    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended September 30, 2002
(in thousands)

|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |              |     |              |   |              |     |              |   |              |    |              |   |      |     |     |   |      |     |     |   |     |   | 
|--------------------------------------- | --------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------- | --- | ------------ | --- | ------------ | - | ------------ | --- | ------------ | - | ------------ | -- | ------------ | - | ---- | --- | --- | - | ---- | --- | --- | - | --- | - | 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     | MeriStar Sub |     | MeriStar Sub |   | MeriStar Sub |     | MeriStar Sub |   | MeriStar Sub |    | MeriStar Sub
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     | 7D, LLC      |     | 7G, LLC      |   | 6B, LLC      |     | 4I, L.P.     |   | 5D, LLC      |    | 5H, LLC     
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |              |     |              |   |              |     |              |   |              |    |             
|                                        | Participating lease revenue |                                                     |                                                                                                                                                                | 1,387                                                                                     |     |              |     | 146          |   |              |     | 293          |   |              |    | 19           |   |      |     | 454 |   |      |     | 603 |  
|                                        |                             | Hotel operations:                                   |                                                                                                                                                                |                                                                                           |    |              |     |              |  |              |     |              |  |              |    |              |  |      |     |     |  |      |     |     |  |    
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |     |             |     |              |   |             |     |              |   |             |    |              |   |     |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |     |             |     |              |   |             |     |              |   |             |    |              |   |     |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |     |             |     |              |   |             |     |              |   |             |    |              |   |     |     |     |   |     |     |     |   |    |  
|                                        |                             | Office rental and other revenues                    |                                                                                                                                                                |                                                                                           | 374 |              |     |              |  |              |     |              |  |              |    |              |  |      |     |     |  |      |     |     |  |    
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |              |     |              |   |              |     |              |   |              |    |              |   |      |     |     |   |      |     |    
|Total revenue                           |                             |                                                     | 1,761                                                                                                                                                          |                                                                                           |     |              | 146 |              |   |              | 293 |              |   |              | 19 |              |   |      | 454 |     |   |      | 603 |    
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |              |     |              |   |              |     |              |   |              |    |              |   |      |     |     |   |      |     |    
|Hotel operating expenses by department: |                             |                                                     |                                                                                                                                                                |                                                                                           |     |              |     |              |   |              |     |              |   |              |    |              |   |      |     |     |   |      |     |    
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |     |             |     |              |   |             |     |              |   |             |    |              |   |     |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |     |             |     |              |   |             |     |              |   |             |    |              |   |     |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |     |             |     |              |   |             |     |              |   |             |    |              |   |     |     |     |   |     |     |     |   |    |  
|                                        |                             | Office rental, parking and other operating expenses |                                                                                                                                                                |                                                                                           | 187 |              |     |              |  |              |     |              |  |              |    |              |  |      |     |     |  |      |     |     |  |    
|Undistributed operating expenses:       |                             |                                                     |                                                                                                                                                                |                                                                                           |     |              |     |              |   |              |     |              |   |              |    |              |   |      |     |     |   |      |     |    
|                                        |                             |                                                     | Administrative and general                                                                                                                                     |                                                                                           |     |             |     |              |   | 1            |     |              |   | 1            |    |              |   |     |     |     |   | 1    |     |     |   | 1   |  
|                                        |                             |                                                     | Property operating costs                                                                                                                                       |                                                                                           |     |             |     |              |   |             |     |              |   |             |    |              |   |     |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | Property taxes, insurance and other                                                                                                                            |                                                                                           |     | 544          |     |              |   | 61           |     |              |   | 55           |    |              |   | 87   |     |     |   | 90   |     |     |   | 202 |  
|                                        |                             |                                                     | Depreciation and amortization                                                                                                                                  |                                                                                           |     | 412          |     |              |   | 188          |     |              |   | 114          |    |              |   | 98   |     |     |   | 361  |     |     |   | 493 |  
|                                        |                             |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                                                                           |     |             |     |              |   |             |     |              |   |             |    |              |   |     |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                                                                           |     |             |     |              |   |             |     |              |   |             |    |              |   |     |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | Swap termination fees                                                                                                                                          |                                                                                           |     |             |     |              |   |             |     |              |   |             |    |              |   |     |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | Write down of deferred costs                                                                                                                                   |                                                                                           |     |             |     |              |   |             |     |              |   |             |    |              |   |     |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                                                                           |     |             |     |              |   |             |     |              |   |             |    |              |   |     |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | FelCor merger costs                                                                                                                                            |                                                                                           |     |             |     |              |   |             |     |              |   |             |    |              |   |     |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality Corporation                                                                                                   |                                                                                           |     |             |     |              |   |             |     |              |   |             |    |              |   |     |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | Restructuring charge                                                                                                                                           |                                                                                           |     |             |     |              |   |             |     |              |   |             |    |              |   |     |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |              |     |              |   |              |     |              |   |              |    |              |   |      |     |     |   |      |     |    
|                                        |                             |                                                     | Total operating expenses                                                                                                                                       |                                                                                           |     | 1,143        |     |              |   | 250          |     |              |   | 170          |    |              |   | 185  |     |     |   | 452  |     |     |   | 696 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |              |     |              |   |              |     |              |   |              |    |              |   |      |     |     |   |      |     |    
|                                        |                             |                                                     | Net operating income                                                                                                                                           |                                                                                           |     | 618          |     |              |   | (104         | )   |              |   | 123          |    |              |   | (166 | )   |     |   | 2    |     |     |   | (93 | )
|                                        |                             |                                                     | Interest expense, net                                                                                                                                          |                                                                                           |     | (12          | )   |              |   | (7           | )   |              |   | (3           | )  |              |   | (12  | )   |     |   | 354  |     |     |   | (28 | )
|                                        |                             |                                                     | Equity in income from consolidated entities                                                                                                                    |                                                                                           |     |             |     |              |   |             |     |              |   |             |    |              |   |     |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |              |     |              |   |              |     |              |   |              |    |              |   |      |     |     |   |      |     |    
|                                        |                             |                                                     | Income (loss) from continuing operations before minority interests,
income tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                                                                           |     | 630          |     |              |   | (97          | )   |              |   | 126          |    |              |   | (154 | )   |     |   | (352 | )   |     |   | (65 | )
|                                        |                             |                                                     | Minority interests                                                                                                                                             |                                                                                           |     |             |     |              |   |             |     |              |   |             |    |              |   |     |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |              |     |              |   |              |     |              |   |              |    |              |   |      |     |     |   |      |     |    
|                                        |                             |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                                                                           |     | 630          |     |              |   | (97          | )   |              |   | 126          |    |              |   | (154 | )   |     |   | (352 | )   |     |   | (65 | )
|                                        |                             |                                                     | Income tax benefit                                                                                                                                             |                                                                                           |     |             |     |              |   |             |     |              |   |             |    |              |   |     |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |              |     |              |   |              |     |              |   |              |    |              |   |      |     |     |   |      |     |    
|                                        |                             |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                                                                           |     | 630          |     |              |   | (97          | )   |              |   | 126          |    |              |   | (154 | )   |     |   | (352 | )   |     |   | (65 | )
|                                        |                             |                                                     | Discontinued operations:                                                                                                                                       |                                                                                           |     |              |     |              |   |              |     |              |   |              |    |              |   |      |     |     |   |      |     |     |   |     |  
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) from operations of assets sold including loss on disposal
of $6,403 in 2002 |     |              |    |              |   |              |    |              |   |              |   |              |   |      |    |     |   |      |    |     |   |     |  | 
|                                        |                             |                                                     |                                                                                                                                                                | Income tax benefit                                                                        |     |              |    |              |   |              |    |              |   |              |   |              |   |      |    |     |   |      |    |     |   |     |  | 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |              |     |              |   |              |     |              |   |              |    |              |   |      |     |     |   |      |     |    
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations                                                  |     |              |    |              |   |              |    |              |   |              |   |              |   |      |    |     |   |      |    |     |   |     |  | 
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                                                                           |     |             |     |              |   |             |     |              |   |             |    |              |   |     |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                                                                           |     |             |     |              |   |             |     |              |   |             |    |              |   |     |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |              |     |              |   |              |     |              |   |              |    |              |   |      |     |     |   |      |     |    
|                                        |                             |                                                     | Net income (loss)                                                                                                                                              |                                                                                           |     | 630          |     |              |   | (97          | )   |              |   | 126          |    |              |   | (154 | )   |     |   | (352 | )   |     |   | (65 | )
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |              |     |              |   |              |     |              |   |              |    |              |   |      |     |     |   |      |     |    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended September 30, 2002
(in thousands)



|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |           |   |              |     |              |   |              |     |              |   |     |     |     |   |     |     |     |   |     |   | 
|--------------------------------------- | --------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------- | - | ------------ | --- | --------- | - | ------------ | --- | ------------ | - | ------------ | --- | ------------ | - | --- | --- | --- | - | --- | --- | --- | - | --- | - | 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   | MeriStar Sub |     | AGH PSSI, |   | MeriStar Sub |     | MeriStar Sub |   | MeriStar Sub |     | MeriStar Sub
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   | 7H, LLC      |     | Inc.      |   | 2D, LLC      |     | 4F, L.P.     |   | 5K, LLC      |     | 5M, LLC     
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |           |   |              |     |              |   |              |     |             
|                                        | Participating lease revenue |                                                     |                                                                                                                                                                | 315                                                                                       |   |              |     | 429       |   |              |     | 458          |   |              |     | 467          |   |     |     | 525 |   |     |     | 303 |  
|                                        |                             | Hotel operations:                                   |                                                                                                                                                                |                                                                                           |  |              |     |           |  |              |     |              |  |              |     |              |  |     |     |     |  |     |     |     |  |    
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |   |             |     |           |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |    |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |   |             |     |           |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |    |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |   |             |     |           |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |    |  
|                                        |                             | Office rental and other revenues                    |                                                                                                                                                                |                                                                                           |  |              |     |           |  |              |     |              |  |              |     |              | 4 |     |     |     |  |     |     |     |  |    
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |           |   |              |     |              |   |              |     |              |   |     |     |     |   |     |     |    
|Total revenue                           |                             |                                                     | 315                                                                                                                                                            |                                                                                           |   |              | 429 |           |   |              | 458 |              |   |              | 471 |              |   |     | 525 |     |   |     | 303 |    
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |           |   |              |     |              |   |              |     |              |   |     |     |     |   |     |     |    
|Hotel operating expenses by department: |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |           |   |              |     |              |   |              |     |              |   |     |     |     |   |     |     |    
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |   |             |     |           |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |    |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |   |             |     |           |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |    |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |   |             |     |           |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |    |  
|                                        |                             | Office rental, parking and other operating expenses |                                                                                                                                                                |                                                                                           |  |              |     |           |  |              |     |              |  |              |     |              |  |     |     |     |  |     |     |     |  |    
|Undistributed operating expenses:       |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |           |   |              |     |              |   |              |     |              |   |     |     |     |   |     |     |    
|                                        |                             |                                                     | Administrative and general                                                                                                                                     |                                                                                           |   | 1            |     |           |   | 1            |     |              |   | 1            |     |              |   |    |     |     |   | 1   |     |     |   | 1   |  
|                                        |                             |                                                     | Property operating costs                                                                                                                                       |                                                                                           |   |             |     |           |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |    |  
|                                        |                             |                                                     | Property taxes, insurance and other                                                                                                                            |                                                                                           |   | 99           |     |           |   | 127          |     |              |   | 70           |     |              |   | 100 |     |     |   | 95  |     |     |   | 70  |  
|                                        |                             |                                                     | Depreciation and amortization                                                                                                                                  |                                                                                           |   | 51           |     |           |   |             |     |              |   | 118          |     |              |   | 280 |     |     |   | 297 |     |     |   | 113 |  
|                                        |                             |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                                                                           |   |             |     |           |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |    |  
|                                        |                             |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                                                                           |   |             |     |           |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |    |  
|                                        |                             |                                                     | Swap termination fees                                                                                                                                          |                                                                                           |   |             |     |           |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |    |  
|                                        |                             |                                                     | Write down of deferred costs                                                                                                                                   |                                                                                           |   |             |     |           |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |    |  
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                                                                           |   |             |     |           |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |    |  
|                                        |                             |                                                     | FelCor merger costs                                                                                                                                            |                                                                                           |   |             |     |           |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |    |  
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality Corporation                                                                                                   |                                                                                           |   |             |     |           |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |    |  
|                                        |                             |                                                     | Restructuring charge                                                                                                                                           |                                                                                           |   |             |     |           |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |           |   |              |     |              |   |              |     |              |   |     |     |     |   |     |     |    
|                                        |                             |                                                     | Total operating expenses                                                                                                                                       |                                                                                           |   | 151          |     |           |   | 128          |     |              |   | 189          |     |              |   | 380 |     |     |   | 393 |     |     |   | 184 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |           |   |              |     |              |   |              |     |              |   |     |     |     |   |     |     |    
|                                        |                             |                                                     | Net operating income                                                                                                                                           |                                                                                           |   | 164          |     |           |   | 301          |     |              |   | 269          |     |              |   | 91  |     |     |   | 132 |     |     |   | 119 |  
|                                        |                             |                                                     | Interest expense, net                                                                                                                                          |                                                                                           |   | (7           | )   |           |   | (15          | )   |              |   | 194          |     |              |   | (11 | )   |     |   | (30 | )   |     |   | (6  | )
|                                        |                             |                                                     | Equity in income from consolidated entities                                                                                                                    |                                                                                           |   |             |     |           |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |           |   |              |     |              |   |              |     |              |   |     |     |     |   |     |     |    
|                                        |                             |                                                     | Income (loss) from continuing operations before minority interests,
income tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                                                                           |   | 171          |     |           |   | 316          |     |              |   | 75           |     |              |   | 102 |     |     |   | 162 |     |     |   | 125 |  
|                                        |                             |                                                     | Minority interests                                                                                                                                             |                                                                                           |   |             |     |           |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |           |   |              |     |              |   |              |     |              |   |     |     |     |   |     |     |    
|                                        |                             |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                                                                           |   | 171          |     |           |   | 316          |     |              |   | 75           |     |              |   | 102 |     |     |   | 162 |     |     |   | 125 |  
|                                        |                             |                                                     | Income tax benefit                                                                                                                                             |                                                                                           |   |             |     |           |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |           |   |              |     |              |   |              |     |              |   |     |     |     |   |     |     |    
|                                        |                             |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                                                                           |   | 171          |     |           |   | 316          |     |              |   | 75           |     |              |   | 102 |     |     |   | 162 |     |     |   | 125 |  
|                                        |                             |                                                     | Discontinued operations:                                                                                                                                       |                                                                                           |   |              |     |           |   |              |     |              |   |              |     |              |   |     |     |     |   |     |     |     |   |     |  
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) from operations of assets sold including loss on disposal
of $6,403 in 2002 |   |              |    |           |   |              |    |              |   |              |    |              |   |     |    |     |   |     |    |     |   |     |  | 
|                                        |                             |                                                     |                                                                                                                                                                | Income tax benefit                                                                        |   |              |    |           |   |              |    |              |   |              |    |              |   |     |    |     |   |     |    |     |   |     |  | 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |           |   |              |     |              |   |              |     |              |   |     |     |     |   |     |     |    
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations                                                  |   |              |    |           |   |              |    |              |   |              |    |              |   |     |    |     |   |     |    |     |   |     |  | 
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                                                                           |   |             |     |           |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |    |  
|                                        |                             |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                                                                           |   |             |     |           |   |             |     |              |   |             |     |              |   |    |     |     |   |    |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |           |   |              |     |              |   |              |     |              |   |     |     |     |   |     |     |    
|                                        |                             |                                                     | Net income (loss)                                                                                                                                              |                                                                                           |   | 171          |     |           |   | 316          |     |              |   | 75           |     |              |   | 102 |     |     |   | 162 |     |     |   | 125 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |           |   |              |     |              |   |              |     |              |   |     |     |     |   |     |     |    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended September 30, 2002
(in thousands)

|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |       |              |   |              |    |              |   |      |     |     |   |     |     |     |    |      |   | 
|--------------------------------------- | --------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------- | - | ------------ | --- | ------------ | - | ------------ | ----- | ------------ | - | ------------ | -- | ------------ | - | ---- | --- | --- | - | --- | --- | --- | -- | ---- | - | 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   | MeriStar Sub |     | MeriStar Sub |   | MeriStar Sub |       | MeriStar Sub |   | MeriStar Sub |    | MeriStar Sub
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   | 1E, L.P.     |     | 5O, LLC      |   | 6M Company   |       | 4B, L.P.     |   | 6C, LLC      |    | 2C, LLC     
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |       |              |   |              |    |             
|                                        | Participating lease revenue |                                                     |                                                                                                                                                                | 543                                                                                       |   |              |     | 124          |   |              |       | 1,146        |   |              |    | 32           |   |      |     | 671 |   |     |     | 483 |   
|                                        |                             | Hotel operations:                                   |                                                                                                                                                                |                                                                                           |  |              |     |              |  |              |       |              |  |              |    |              |  |      |     |     |  |     |     |     |   |     
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |   |             |     |              |   |             |       |              |   |             |    |              |   |     |     |     |   |    |     |     |    |     |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |   |             |     |              |   |             |       |              |   |             |    |              |   |     |     |     |   |    |     |     |    |     |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |   |             |     |              |   |             |       |              |   |             |    |              |   |     |     |     |   |    |     |     |    |     |  
|                                        |                             | Office rental and other revenues                    |                                                                                                                                                                |                                                                                           |  |              |     |              |  |              |       |              |  |              |    |              |  |      |     |     | 5 |     |     |     | 10 |     
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |       |              |   |              |    |              |   |      |     |     |   |     |     |    
|Total revenue                           |                             |                                                     | 543                                                                                                                                                            |                                                                                           |   |              | 124 |              |   |              | 1,146 |              |   |              | 32 |              |   |      | 676 |     |   |     | 493 |    
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |       |              |   |              |    |              |   |      |     |     |   |     |     |    
|Hotel operating expenses by department: |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |       |              |   |              |    |              |   |      |     |     |   |     |     |    
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |   |             |     |              |   |             |       |              |   |             |    |              |   |     |     |     |   |    |     |     |    |     |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |   |             |     |              |   |             |       |              |   |             |    |              |   |     |     |     |   |    |     |     |    |     |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |   |             |     |              |   |             |       |              |   |             |    |              |   |     |     |     |   |    |     |     |    |     |  
|                                        |                             | Office rental, parking and other operating expenses |                                                                                                                                                                |                                                                                           |  |              |     |              |  |              |       |              |  |              |    |              |  |      |     |     |  |     |     |     |   |     
|Undistributed operating expenses:       |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |       |              |   |              |    |              |   |      |     |     |   |     |     |    
|                                        |                             |                                                     | Administrative and general                                                                                                                                     |                                                                                           |   | 1            |     |              |   | 1            |       |              |   | 1            |    |              |   |     |     |     |   | 1   |     |     |    | 1    |  
|                                        |                             |                                                     | Property operating costs                                                                                                                                       |                                                                                           |   |             |     |              |   |             |       |              |   |             |    |              |   |     |     |     |   |    |     |     |    |     |  
|                                        |                             |                                                     | Property taxes, insurance and other                                                                                                                            |                                                                                           |   | 42           |     |              |   | 24           |       |              |   | 74           |    |              |   | 102  |     |     |   | 56  |     |     |    | 254  |  
|                                        |                             |                                                     | Depreciation and amortization                                                                                                                                  |                                                                                           |   | 74           |     |              |   | 55           |       |              |   | 302          |    |              |   | 118  |     |     |   | 191 |     |     |    | 258  |  
|                                        |                             |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                                                                           |   |             |     |              |   |             |       |              |   |             |    |              |   |     |     |     |   |    |     |     |    |     |  
|                                        |                             |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                                                                           |   |             |     |              |   |             |       |              |   |             |    |              |   |     |     |     |   |    |     |     |    |     |  
|                                        |                             |                                                     | Swap termination fees                                                                                                                                          |                                                                                           |   |             |     |              |   |             |       |              |   |             |    |              |   |     |     |     |   |    |     |     |    |     |  
|                                        |                             |                                                     | Write down of deferred costs                                                                                                                                   |                                                                                           |   |             |     |              |   |             |       |              |   |             |    |              |   |     |     |     |   |    |     |     |    |     |  
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                                                                           |   |             |     |              |   |             |       |              |   |             |    |              |   |     |     |     |   |    |     |     |    |     |  
|                                        |                             |                                                     | FelCor merger costs                                                                                                                                            |                                                                                           |   |             |     |              |   |             |       |              |   |             |    |              |   |     |     |     |   |    |     |     |    |     |  
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality Corporation                                                                                                   |                                                                                           |   |             |     |              |   |             |       |              |   |             |    |              |   |     |     |     |   |    |     |     |    |     |  
|                                        |                             |                                                     | Restructuring charge                                                                                                                                           |                                                                                           |   |             |     |              |   |             |       |              |   |             |    |              |   |     |     |     |   |    |     |     |    |     |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |       |              |   |              |    |              |   |      |     |     |   |     |     |    
|                                        |                             |                                                     | Total operating expenses                                                                                                                                       |                                                                                           |   | 117          |     |              |   | 80           |       |              |   | 377          |    |              |   | 220  |     |     |   | 248 |     |     |    | 513  |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |       |              |   |              |    |              |   |      |     |     |   |     |     |    
|                                        |                             |                                                     | Net operating income                                                                                                                                           |                                                                                           |   | 426          |     |              |   | 44           |       |              |   | 769          |    |              |   | (188 | )   |     |   | 428 |     |     |    | (20  | )
|                                        |                             |                                                     | Interest expense, net                                                                                                                                          |                                                                                           |   | (5           | )   |              |   | (2           | )     |              |   | (8           | )  |              |   | (72  | )   |     |   | (13 | )   |     |    | 336  |  
|                                        |                             |                                                     | Equity in income from consolidated entities                                                                                                                    |                                                                                           |   |             |     |              |   |             |       |              |   |             |    |              |   |     |     |     |   |    |     |     |    |     |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |       |              |   |              |    |              |   |      |     |     |   |     |     |    
|                                        |                             |                                                     | Income (loss) from continuing operations before minority interests,
income tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                                                                           |   | 431          |     |              |   | 46           |       |              |   | 777          |    |              |   | (116 | )   |     |   | 441 |     |     |    | (356 | )
|                                        |                             |                                                     | Minority interests                                                                                                                                             |                                                                                           |   |             |     |              |   |             |       |              |   |             |    |              |   |     |     |     |   |    |     |     |    |     |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |       |              |   |              |    |              |   |      |     |     |   |     |     |    
|                                        |                             |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                                                                           |   | 431          |     |              |   | 46           |       |              |   | 777          |    |              |   | (116 | )   |     |   | 441 |     |     |    | (356 | )
|                                        |                             |                                                     | Income tax benefit                                                                                                                                             |                                                                                           |   |             |     |              |   |             |       |              |   |             |    |              |   |     |     |     |   |    |     |     |    |     |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |       |              |   |              |    |              |   |      |     |     |   |     |     |    
|                                        |                             |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                                                                           |   | 431          |     |              |   | 46           |       |              |   | 777          |    |              |   | (116 | )   |     |   | 441 |     |     |    | (356 | )
|                                        |                             |                                                     | Discontinued operations:                                                                                                                                       |                                                                                           |   |              |     |              |   |              |       |              |   |              |    |              |   |      |     |     |   |     |     |     |    |      |  
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) from operations of assets sold including loss on disposal
of $6,403 in 2002 |   |              |    |              |   |              |      |              |   |              |   |              |   |      |    |     |   |     |    |     |    |      |  | 
|                                        |                             |                                                     |                                                                                                                                                                | Income tax benefit                                                                        |   |              |    |              |   |              |      |              |   |              |   |              |   |      |    |     |   |     |    |     |    |      |  | 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |       |              |   |              |    |              |   |      |     |     |   |     |     |    
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations                                                  |   |              |    |              |   |              |      |              |   |              |   |              |   |      |    |     |   |     |    |     |    |      |  | 
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                                                                           |   |             |     |              |   |             |       |              |   |             |    |              |   |     |     |     |   |    |     |     |    |     |  
|                                        |                             |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                                                                           |   |             |     |              |   |             |       |              |   |             |    |              |   |     |     |     |   |    |     |     |    |     |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |       |              |   |              |    |              |   |      |     |     |   |     |     |    
|                                        |                             |                                                     | Net income (loss)                                                                                                                                              |                                                                                           |   | 431          |     |              |   | 46           |       |              |   | 777          |    |              |   | (116 | )   |     |   | 441 |     |     |    | (356 | )
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |       |              |   |              |    |              |   |      |     |     |   |     |     |    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended September 30, 2002
(in thousands)



|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |       |              |    |              |     |              |   |     |       |       |   |       |     |     |   |     |   | 
|--------------------------------------- | --------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------- | - | ------------ | --- | ------------ | - | ------------ | ----- | ------------ | -- | ------------ | --- | ------------ | - | --- | ----- | ----- | - | ----- | --- | --- | - | --- | - | 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   | MeriStar Sub |     | MeriStar Sub |   | MeriStar Sub |       | MeriStar Sub |    | MeriStar Sub |     | MeriStar Sub
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   | 4G, L.P.     |     | 3B, LLC      |   | 5G, L.P.     |       | 5P, LLC      |    | 5J, LLC      |     | 5Q, LLC     
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |       |              |    |              |     |             
|                                        | Participating lease revenue |                                                     |                                                                                                                                                                | 456                                                                                       |   |              |     | 270          |   |              |       | 2,193        |    |              |     | 148          |   |     |       | 1,781 |   |       |     | 359 |  
|                                        |                             | Hotel operations:                                   |                                                                                                                                                                |                                                                                           |  |              |     |              |  |              |       |              |   |              |     |              |  |     |       |       |  |       |     |     |  |    
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |   |             |     |              |   |             |       |              |    |             |     |              |   |    |       |       |   |      |     |     |   |    |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |   |             |     |              |   |             |       |              |    |             |     |              |   |    |       |       |   |      |     |     |   |    |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |   |             |     |              |   |             |       |              |    |             |     |              |   |    |       |       |   |      |     |     |   |    |  
|                                        |                             | Office rental and other revenues                    |                                                                                                                                                                |                                                                                           | 9 |              |     |              | 6 |              |       |              | 17 |              |     |              |  |     |       |       |  |       |     |     |  |    
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |       |              |    |              |     |              |   |     |       |       |   |       |     |    
|Total revenue                           |                             |                                                     | 465                                                                                                                                                            |                                                                                           |   |              | 276 |              |   |              | 2,210 |              |    |              | 148 |              |   |     | 1,781 |       |   |       | 359 |    
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |       |              |    |              |     |              |   |     |       |       |   |       |     |    
|Hotel operating expenses by department: |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |       |              |    |              |     |              |   |     |       |       |   |       |     |    
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |   |             |     |              |   |             |       |              |    |             |     |              |   |    |       |       |   |      |     |     |   |    |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |   |             |     |              |   |             |       |              |    |             |     |              |   |    |       |       |   |      |     |     |   |    |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |   |             |     |              |   |             |       |              |    |             |     |              |   |    |       |       |   |      |     |     |   |    |  
|                                        |                             | Office rental, parking and other operating expenses |                                                                                                                                                                |                                                                                           |  |              |     |              |  |              |       |              |   |              |     |              |  |     |       |       |  |       |     |     |  |    
|Undistributed operating expenses:       |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |       |              |    |              |     |              |   |     |       |       |   |       |     |    
|                                        |                             |                                                     | Administrative and general                                                                                                                                     |                                                                                           |   | 1            |     |              |   | 1            |       |              |    |             |     |              |   |    |       |       |   | 1     |     |     |   | 1   |  
|                                        |                             |                                                     | Property operating costs                                                                                                                                       |                                                                                           |   |             |     |              |   |             |       |              |    |             |     |              |   |    |       |       |   |      |     |     |   |    |  
|                                        |                             |                                                     | Property taxes, insurance and other                                                                                                                            |                                                                                           |   | 161          |     |              |   | 83           |       |              |    | 460          |     |              |   | (6  | )     |       |   | 259   |     |     |   | 57  |  
|                                        |                             |                                                     | Depreciation and amortization                                                                                                                                  |                                                                                           |   | 229          |     |              |   | 230          |       |              |    | 1,548        |     |              |   | 1   |       |       |   | 871   |     |     |   | 120 |  
|                                        |                             |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                                                                           |   |             |     |              |   |             |       |              |    |             |     |              |   |    |       |       |   |      |     |     |   |    |  
|                                        |                             |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                                                                           |   |             |     |              |   |             |       |              |    |             |     |              |   |    |       |       |   |      |     |     |   |    |  
|                                        |                             |                                                     | Swap termination fees                                                                                                                                          |                                                                                           |   |             |     |              |   |             |       |              |    |             |     |              |   |    |       |       |   |      |     |     |   |    |  
|                                        |                             |                                                     | Write down of deferred costs                                                                                                                                   |                                                                                           |   |             |     |              |   |             |       |              |    |             |     |              |   |    |       |       |   |      |     |     |   |    |  
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                                                                           |   |             |     |              |   |             |       |              |    |             |     |              |   |    |       |       |   |      |     |     |   |    |  
|                                        |                             |                                                     | FelCor merger costs                                                                                                                                            |                                                                                           |   |             |     |              |   |             |       |              |    |             |     |              |   |    |       |       |   |      |     |     |   |    |  
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality Corporation                                                                                                   |                                                                                           |   |             |     |              |   |             |       |              |    |             |     |              |   |    |       |       |   |      |     |     |   |    |  
|                                        |                             |                                                     | Restructuring charge                                                                                                                                           |                                                                                           |   |             |     |              |   |             |       |              |    |             |     |              |   |    |       |       |   |      |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |       |              |    |              |     |              |   |     |       |       |   |       |     |    
|                                        |                             |                                                     | Total operating expenses                                                                                                                                       |                                                                                           |   | 391          |     |              |   | 314          |       |              |    | 2,008        |     |              |   | (5  | )     |       |   | 1,131 |     |     |   | 178 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |       |              |    |              |     |              |   |     |       |       |   |       |     |    
|                                        |                             |                                                     | Net operating income                                                                                                                                           |                                                                                           |   | 74           |     |              |   | (38          | )     |              |    | 202          |     |              |   | 153 |       |       |   | 650   |     |     |   | 181 |  
|                                        |                             |                                                     | Interest expense, net                                                                                                                                          |                                                                                           |   | (7           | )   |              |   | (14          | )     |              |    | (41          | )   |              |   |    |       |       |   | (42   | )   |     |   | (25 | )
|                                        |                             |                                                     | Equity in income from consolidated entities                                                                                                                    |                                                                                           |   |             |     |              |   |             |       |              |    |             |     |              |   |    |       |       |   |      |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |       |              |    |              |     |              |   |     |       |       |   |       |     |    
|                                        |                             |                                                     | Income (loss) from continuing operations before minority interests,
income tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                                                                           |   | 81           |     |              |   | (24          | )     |              |    | 243          |     |              |   | 153 |       |       |   | 692   |     |     |   | 206 |  
|                                        |                             |                                                     | Minority interests                                                                                                                                             |                                                                                           |   |             |     |              |   |             |       |              |    |             |     |              |   |    |       |       |   |      |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |       |              |    |              |     |              |   |     |       |       |   |       |     |    
|                                        |                             |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                                                                           |   | 81           |     |              |   | (24          | )     |              |    | 243          |     |              |   | 153 |       |       |   | 692   |     |     |   | 206 |  
|                                        |                             |                                                     | Income tax benefit                                                                                                                                             |                                                                                           |   |             |     |              |   |             |       |              |    |             |     |              |   |    |       |       |   |      |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |       |              |    |              |     |              |   |     |       |       |   |       |     |    
|                                        |                             |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                                                                           |   | 81           |     |              |   | (24          | )     |              |    | 243          |     |              |   | 153 |       |       |   | 692   |     |     |   | 206 |  
|                                        |                             |                                                     | Discontinued operations:                                                                                                                                       |                                                                                           |   |              |     |              |   |              |       |              |    |              |     |              |   |     |       |       |   |       |     |     |   |     |  
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) from operations of assets sold including loss on disposal
of $6,403 in 2002 |   |              |    |              |   |              |      |              |    |              |    |              |   |     |      |       |   |       |    |     |   |     |  | 
|                                        |                             |                                                     |                                                                                                                                                                | Income tax benefit                                                                        |   |              |    |              |   |              |      |              |    |              |    |              |   |     |      |       |   |       |    |     |   |     |  | 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |       |              |    |              |     |              |   |     |       |       |   |       |     |    
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations                                                  |   |              |    |              |   |              |      |              |    |              |    |              |   |     |      |       |   |       |    |     |   |     |  | 
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                                                                           |   |             |     |              |   |             |       |              |    |             |     |              |   |    |       |       |   |      |     |     |   |    |  
|                                        |                             |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                                                                           |   |             |     |              |   |             |       |              |    |             |     |              |   |    |       |       |   |      |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |       |              |    |              |     |              |   |     |       |       |   |       |     |    
|                                        |                             |                                                     | Net income (loss)                                                                                                                                              |                                                                                           |   | 81           |     |              |   | (24          | )     |              |    | 243          |     |              |   | 153 |       |       |   | 692   |     |     |   | 206 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |              |     |              |   |              |       |              |    |              |     |              |   |     |       |       |   |       |     |    





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended September 30, 2002
(in thousands)

|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |    |              |     |              |   |              |     |                |     |              |         |              |      |         |         |         |   |         |         |   |       |         |        |  
|--------------------------------------- | --------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------- | -- | ------------ | --- | ------------ | - | ------------ | --- | -------------- | --- | ------------ | ------- | ------------ | ---- | ------- | ------- | ------- | - | ------- | ------- | - | ----- | ------- | ------ | -
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |    | MeriStar Sub |     | MeriStar Sub |   | MeriStar Sub |     | MeriStar Hotel |     |              |         |              |      | Total  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |    | 5A, LLC      |     | 8D, LLC      |   | 4J, LLC      |     | Lessee, Inc.   |     | Eliminations |         | Consolidated
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |    |              |     |              |   |              |     |                |     |              |         |             
|                                        | Participating lease revenue |                                                     |                                                                                                                                                                | 1,418                                                                                     |    |              |     | 579          |   |              |     | 718            |     |              |         |             |      |         |         | (67,805 | ) |         |         |  |      
|                                        |                             | Hotel operations:                                   |                                                                                                                                                                |                                                                                           |   |              |     |              |  |              |     |                |    |              |         |              |     |         |         |         |  |         |         |   |      |        
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |    |             |     |              |   |             |     |                |     |             |         |              |      | 156,935 |         |         |   |        |         |   |       | 156,935 |       
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |    |             |     |              |   |             |     |                |     |             |         |              |      | 56,548  |         |         |   |        |         |   |       | 56,548  |       
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |    |             |     |              |   |             |     |                |     |             |         |              |      | 18,306  |         |         |   |        |         |   |       | 18,306  |       
|                                        |                             | Office rental and other revenues                    |                                                                                                                                                                |                                                                                           | 29 |              |     |              |  |              |     |                | 41  |              |         |              | (251 | )       |         |         |  |         |         |   | 4,017 |        
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |    |              |     |              |   |              |     |                |     |              |         |              |      |         |         |         |   |         |         |  
|Total revenue                           |                             |                                                     | 1,447                                                                                                                                                          |                                                                                           |    |              | 579 |              |   |              | 759 |                |     |              | 231,538 |              |      |         | (67,805 | )       |   |         | 235,806 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |    |              |     |              |   |              |     |                |     |              |         |              |      |         |         |         |   |         |         |  
|Hotel operating expenses by department: |                             |                                                     |                                                                                                                                                                |                                                                                           |    |              |     |              |   |              |     |                |     |              |         |              |      |         |         |         |   |         |         |  
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |    |             |     |              |   |             |     |                |     |             |         |              |      | 40,895  |         |         |   |        |         |   |       | 40,895  |       
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |    |             |     |              |   |             |     |                |     |             |         |              |      | 44,187  |         |         |   |        |         |   |       | 44,187  |       
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |    |             |     |              |   |             |     |                |     |             |         |              |      | 10,967  |         |         |   |        |         |   |       | 10,967  |       
|                                        |                             | Office rental, parking and other operating expenses |                                                                                                                                                                |                                                                                           |   |              |     |              |  |              |     |                | 120 |              |         |              |     |         |         |         |  |         |         |   | 767   |        
|Undistributed operating expenses:       |                             |                                                     |                                                                                                                                                                |                                                                                           |    |              |     |              |   |              |     |                |     |              |         |              |      |         |         |         |   |         |         |  
|                                        |                             |                                                     | Administrative and general                                                                                                                                     |                                                                                           |    | 1            |     |              |   | 1            |     |                |     | 1            |         |              |      | 39,765  |         |         |   |        |         |   |       | 42,136  |       
|                                        |                             |                                                     | Property operating costs                                                                                                                                       |                                                                                           |    |             |     |              |   |             |     |                |     |             |         |              |      | 40,164  |         |         |   |        |         |   |       | 40,166  |       
|                                        |                             |                                                     | Property taxes, insurance and other                                                                                                                            |                                                                                           |    | 172          |     |              |   | 109          |     |                |     | 153          |         |              |      | 74,098  |         |         |   | (67,805 | )       |   |       | 16,511  |       
|                                        |                             |                                                     | Depreciation and amortization                                                                                                                                  |                                                                                           |    | 364          |     |              |   | 317          |     |                |     | 336          |         |              |      | 134     |         |         |   |        |         |   |       | 30,039  |       
|                                        |                             |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                                                                           |    |             |     |              |   |             |     |                |     |             |         |              |      |        |         |         |   |        |         |   |       | 1,132   |       
|                                        |                             |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                                                                           |    |             |     |              |   |             |     |                |     |             |         |              |      |        |         |         |   |        |         |   |       |        |       
|                                        |                             |                                                     | Swap termination fees                                                                                                                                          |                                                                                           |    |             |     |              |   |             |     |                |     |             |         |              |      |        |         |         |   |        |         |   |       |        |       
|                                        |                             |                                                     | Write down of deferred costs                                                                                                                                   |                                                                                           |    |             |     |              |   |             |     |                |     |             |         |              |      |        |         |         |   |        |         |   |       |        |       
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                                                                           |    |             |     |              |   |             |     |                |     |             |         |              |      |        |         |         |   |        |         |   |       |        |       
|                                        |                             |                                                     | FelCor merger costs                                                                                                                                            |                                                                                           |    |             |     |              |   |             |     |                |     |             |         |              |      |        |         |         |   |        |         |   |       |        |       
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality Corporation                                                                                                   |                                                                                           |    |             |     |              |   |             |     |                |     |             |         |              |      |        |         |         |   |        |         |   |       |        |       
|                                        |                             |                                                     | Restructuring charge                                                                                                                                           |                                                                                           |    |             |     |              |   |             |     |                |     |             |         |              |      |        |         |         |   |        |         |   |       |        |       
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |    |              |     |              |   |              |     |                |     |              |         |              |      |         |         |         |   |         |         |  
|                                        |                             |                                                     | Total operating expenses                                                                                                                                       |                                                                                           |    | 537          |     |              |   | 427          |     |                |     | 610          |         |              |      | 250,210 |         |         |   | (67,805 | )       |   |       | 226,800 |       
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |    |              |     |              |   |              |     |                |     |              |         |              |      |         |         |         |   |         |         |  
|                                        |                             |                                                     | Net operating income                                                                                                                                           |                                                                                           |    | 910          |     |              |   | 152          |     |                |     | 149          |         |              |      | (18,672 | )       |         |   |        |         |   |       | 9,006   |       
|                                        |                             |                                                     | Interest expense, net                                                                                                                                          |                                                                                           |    | 690          |     |              |   | (7           | )   |                |     | (24          | )       |              |      | 36      |         |         |   |        |         |   |       | 33,846  |       
|                                        |                             |                                                     | Equity in income from consolidated entities                                                                                                                    |                                                                                           |    |             |     |              |   |             |     |                |     |             |         |              |      |        |         |         |   | (3,669  | )       |   |       |        |       
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |    |              |     |              |   |              |     |                |     |              |         |              |      |         |         |         |   |         |         |  
|                                        |                             |                                                     | Income (loss) from continuing operations before minority interests,
income tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                                                                           |    | 220          |     |              |   | 159          |     |                |     | 173          |         |              |      | (18,708 | )       |         |   | 3,669   |         |   |       | (24,840 | )     
|                                        |                             |                                                     | Minority interests                                                                                                                                             |                                                                                           |    |             |     |              |   |             |     |                |     |             |         |              |      |        |         |         |   |        |         |   |       | (18     | )     
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |    |              |     |              |   |              |     |                |     |              |         |              |      |         |         |         |   |         |         |  
|                                        |                             |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                                                                           |    | 220          |     |              |   | 159          |     |                |     | 173          |         |              |      | (18,708 | )       |         |   | 3,669   |         |   |       | (24,822 | )     
|                                        |                             |                                                     | Income tax benefit                                                                                                                                             |                                                                                           |    |             |     |              |   |             |     |                |     |             |         |              |      |        |         |         |   |        |         |   |       | (595    | )     
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |    |              |     |              |   |              |     |                |     |              |         |              |      |         |         |         |   |         |         |  
|                                        |                             |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                                                                           |    | 220          |     |              |   | 159          |     |                |     | 173          |         |              |      | (18,708 | )       |         |   | 3,669   |         |   |       | (24,227 | )     
|                                        |                             |                                                     | Discontinued operations:                                                                                                                                       |                                                                                           |    |              |     |              |   |              |     |                |     |              |         |              |      |         |         |         |   |         |         |   |       |         |       
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) from operations of assets sold including loss on disposal
of $6,403 in 2002 |    |              |    |              |   |              |    |                |     |              |        |              |      |         | (525    | )       |   |         |        |   |       |         | (6,640 | )
|                                        |                             |                                                     |                                                                                                                                                                | Income tax benefit                                                                        |    |              |    |              |   |              |    |                |     |              |        |              |      |         |        |         |   |         |        |   |       |         | 128    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |    |              |     |              |   |              |     |                |     |              |         |              |      |         |         |         |   |         |         |  
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations                                                  |    |              |    |              |   |              |    |                |     |              |        |              |      |         | (525    | )       |   |         |        |   |       |         | (6,512 | )
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                                                                           |    |             |     |              |   |             |     |                |     |             |         |              |      |        |         |         |   |        |         |   |       |        |       
|                                        |                             |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                                                                           |    |             |     |              |   |             |     |                |     |             |         |              |      |        |         |         |   |        |         |   |       |        |       
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |    |              |     |              |   |              |     |                |     |              |         |              |      |         |         |         |   |         |         |  
|                                        |                             |                                                     | Net income (loss)                                                                                                                                              |                                                                                           |    | 220          |     |              |   | 159          |     |                |     | 173          |         |              |      | (19,233 | )       |         |   | 3,669   |         |   |       | (30,739 | )     
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |    |              |     |              |   |              |     |                |     |              |         |              |      |         |         |         |   |         |         |  





---



##### 



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



|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |       |             |         |               |       |         |     |             |   |         |   |         |   |              |     |          |   |     |   |   |   |        |        |       |   |     |   | 
|--------------------------------------- | --------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------- | ----- | ----------- | ------- | ------------- | ----- | ------- | --- | ----------- | - | ------- | - | ------- | - | ------------ | --- | -------- | - | --- | - | - | - | ------ | ------ | ----- | - | --- | - | 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |       | MeriStar    |         |               |       |         |     | MeriStar    |   |         |   |         |   | MeriStar     |     | MeriStar |   |     |   |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |       | Hospitality |         | Non-Guarantor |       | Sub 7C, |     | AGH         |   | Sub 5N, |   | Sub 8A, |   | MeriStar    
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |       | OP, L.P.    |         | Subsidiaries  |       | LLC     |     | Upreit, LLC |   | LLC     |   | LLC     |   | Sub 8F, L.P.
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |       |             |         |               |       |         |     |             |   |         |   |         |   |             
|Revenue:                                |                             |                                                     |                                                                                                                                                                |                                                                                           |       |             |         |               |       |         |     |             |   |         |   |         |   |              |     |          |   |     |   |   |   |        |        |      
|                                        | Participating lease revenue |                                                     |                                                                                                                                                                |                                                                                          |       |             |         | 104,237       |       |         |     |            |   |         |   |        |   |              |     | 716      |   |     |   |  |   |        |        | 1,712 |  
|                                        |                             | Hotel operations:                                   |                                                                                                                                                                |                                                                                           |       |             |         |               |       |         |     |             |   |         |   |         |   |              |     |          |   |     |   |   |   |        |        |       |   |    
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |       |            |         |               |       |        |     |             |   |        |   |         |   |             |     |          |   |    |   |   |   |       |        |       |   |    |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |       |            |         |               |       |        |     |             |   |        |   |         |   |             |     |          |   |    |   |   |   |       |        |       |   |    |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |       |            |         |               |       |        |     |             |   |        |   |         |   |             |     |          |   |    |   |   |   |       |        |       |   |    |  
|                                        |                             | Office rental and other revenues                    |                                                                                                                                                                |                                                                                           | 5,611 |             |         |               | 5,101 |         |     |             |  |         |   |         |  |              |     |          |  |     |   |   |  |        |        |       |  |    
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |       |             |         |               |       |         |     |             |   |         |   |         |   |              |     |          |   |     |   |   |   |        |        |      
|Total revenue                           |                             |                                                     | 5,611                                                                                                                                                          |                                                                                           |       |             | 109,338 |               |       |         |    |             |   |         |  |         |   |              | 716 |          |   |     |  |   |   |        | 1,712  |      
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |       |             |         |               |       |         |     |             |   |         |   |         |   |              |     |          |   |     |   |   |   |        |        |      
|Hotel operating expenses by department: |                             |                                                     |                                                                                                                                                                |                                                                                           |       |             |         |               |       |         |     |             |   |         |   |         |   |              |     |          |   |     |   |   |   |        |        |      
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |       |            |         |               |       |        |     |             |   |        |   |         |   |             |     |          |   |    |   |   |   |       |        |       |   |    |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |       |            |         |               |       |        |     |             |   |        |   |         |   |             |     |          |   |    |   |   |   |       |        |       |   |    |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |       |            |         |               |       |        |     |             |   |        |   |         |   |             |     |          |   |    |   |   |   |       |        |       |   |    |  
|                                        |                             | Office rental, parking and other operating expenses |                                                                                                                                                                |                                                                                           |      |             |         |               | 1,097 |         |     |             |  |         |   |         |  |              |     |          |  |     |   |   |  |        |        |       |  |    
|Undistributed operating expenses:       |                             |                                                     |                                                                                                                                                                |                                                                                           |       |             |         |               |       |         |     |             |   |         |   |         |   |              |     |          |   |     |   |   |   |        |        |      
|                                        |                             |                                                     | Administrative and general                                                                                                                                     |                                                                                           |       | 7,397       |         |               |       | 28      |     |             |   |        |   |         |   |             |     |          |   |    |   |   |   |       |        |       |   | 1   |  
|                                        |                             |                                                     | Property operating costs                                                                                                                                       |                                                                                           |       | (454        | )       |               |       | 1       |     |             |   |        |   |         |   |             |     |          |   |     |   |   |   |       |        |       |   |    |  
|                                        |                             |                                                     | Property taxes, insurance and other                                                                                                                            |                                                                                           |       | (4,310      | )       |               |       | 15,512  |     |             |   |        |   |         |   |             |     |          |   | 78  |   |   |   | (1     | )      |       |   | 545 |  
|                                        |                             |                                                     | Depreciation and amortization                                                                                                                                  |                                                                                           |       | 7,667       |         |               |       | 40,183  |     |             |   |        |   |         |   |             |     |          |   | 99  |   |   |   |       |        |       |   | 339 |  
|                                        |                             |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                                                                           |       | 4,211       |         |               |       |         |     |             |   |         |   |         |   |              |     |          |   |     |   |   |   |        |        |       |   |     |  
|                                        |                             |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                                                                           |       |            |         |               |       |        |     |             |   |        |   |         |   |             |     |          |   |    |   |   |   |       |        |       |   |    |  
|                                        |                             |                                                     | Loss on asset impairment                                                                                                                                       |                                                                                           |       |            |         |               |       |        |     |             |   |        |   |         |   |             |     |          |   |    |   |   |   |       |        |       |   |    |  
|                                        |                             |                                                     | Write down of deferred costs                                                                                                                                   |                                                                                           |       | 1,529       |         |               |       |        |     |             |   |        |   |         |   |             |     |          |   |    |   |   |   |       |        |       |   |    |  
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                                                                           |       | 4,735       |         |               |       |        |     |             |   |        |   |         |   |             |     |          |   |    |   |   |   |       |        |       |   |    |  
|                                        |                             |                                                     | FelCor merger costs                                                                                                                                            |                                                                                           |       |            |         |               |       |        |     |             |   |        |   |         |   |             |     |          |   |    |   |   |   |       |        |       |   |    |  
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality                                                                                                               |                                                                                           |       |            |         |               |       |        |     |             |   |        |   |         |   |             |     |          |   |    |   |   |   |       |        |       |   |    |  
|                                        |                             |                                                     | Restructuring charge                                                                                                                                           |                                                                                           |       |            |         |               |       |        |     |             |   |        |   |         |   |             |     |          |   |    |   |   |   |       |        |       |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |       |             |         |               |       |         |     |             |   |         |   |         |   |              |     |          |   |     |   |   |   |        |        |      
|                                        |                             |                                                     | Total operating expenses                                                                                                                                       |                                                                                           |       | 20,775      |         |               |       | 56,821  |     |             |   |        |   |         |   |             |     |          |   | 177 |   |   |   | (1     | )      |       |   | 885 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |       |             |         |               |       |         |     |             |   |         |   |         |   |              |     |          |   |     |   |   |   |        |        |      
|                                        |                             |                                                     | Net operating income                                                                                                                                           |                                                                                           |       | (15,164     | )       |               |       | 52,517  |     |             |   |        |   |         |   |             |     |          |   | 539 |   |   |   | 1      |        |       |   | 827 |  
|                                        |                             |                                                     | Interest expense, net                                                                                                                                          |                                                                                           |       | 78,325      |         |               |       | 20,354  |     |             |   |        |   |         |   |             |     |          |   | (5  | ) |   |   |       |        |       |   | (7  | )
|                                        |                             |                                                     | Equity in income from consolidated entities                                                                                                                    |                                                                                           |       | (55,165     | )       |               |       |        |     |             |   |        |   |         |   |             |     |          |   |    |   |   |   |       |        |       |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |       |             |         |               |       |         |     |             |   |         |   |         |   |              |     |          |   |     |   |   |   |        |        |      
|                                        |                             |                                                     | Income (loss) from continuing operations before minority interests,
income tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                                                                           |       | (38,324     | )       |               |       | 32,163  |     |             |   |        |   |         |   |             |     |          |   | 544 |   |   |   | 1      |        |       |   | 834 |  
|                                        |                             |                                                     | Minority interests                                                                                                                                             |                                                                                           |       | (10         | )       |               |       |        |     |             |   |        |   |         |   |             |     |          |   |    |   |   |   |       |        |       |   |     |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |       |             |         |               |       |         |     |             |   |         |   |         |   |              |     |          |   |     |   |   |   |        |        |      
|                                        |                             |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                                                                           |       | (38,314     | )       |               |       | 32,163  |     |             |   |        |   |         |   |             |     |          |   | 544 |   |   |   | 1      |        |       |   | 834 |  
|                                        |                             |                                                     | Income tax benefit                                                                                                                                             |                                                                                           |       | (754        | )       |               |       |        |     |             |   |        |   |         |   |             |     |          |   |    |   |   |   |       |        |       |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |       |             |         |               |       |         |     |             |   |         |   |         |   |              |     |          |   |     |   |   |   |        |        |      
|                                        |                             |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                                                                           |       | (37,560     | )       |               |       | 32,163  |     |             |   |        |   |         |   |             |     |          |   | 544 |   |   |   | 1      |        |       |   | 834 |  
|                                        |                             |                                                     | Discontinued operations:                                                                                                                                       |                                                                                           |       |             |         |               |       |         |     |             |   |         |   |         |   |              |     |          |   |     |   |   |   |        |        |       |   |     |  
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) from operations of assets sold including loss on disposal
of $6,403 in 2002 |       |             |        |               |       |         | 771 |             |   |         |  |         |   |              |    |          |   |     |  |   |   |        | (4,203 | )     |   |     |  | 
|                                        |                             |                                                     |                                                                                                                                                                | Income tax benefit                                                                        |       |             |        |               |       |         |    |             |   |         |  |         |   |              |    |          |   |     |  |   |   |        | 96     |       |   |     |  | 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |       |             |         |               |       |         |     |             |   |         |   |         |   |              |     |          |   |     |   |   |   |        |        |      
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations                                                  |       |             |        |               |       |         | 771 |             |   |         |  |         |   |              |    |          |   |     |  |   |   |        | (4,107 | )     |   |     |  | 
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                                                                           |       |            |         |               |       |        |     |             |   |        |   |         |   |             |     |          |   |    |   |   |   |       |        |       |   |    |  
|                                        |                             |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                                                                           |       |            |         |               |       |        |     |             |   |        |   |         |   |             |     |          |   |     |   |   |   |       |        |       |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |       |             |         |               |       |         |     |             |   |         |   |         |   |              |     |          |   |     |   |   |   |        |        |      
|                                        |                             |                                                     | Net income (loss)                                                                                                                                              |                                                                                           |       | (37,560     | )       |               |       | 32,934  |     |             |   |        |   |         |   |             |     |          |   | 544 |   |   |   | (4,106 | )      |       |   | 834 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |       |             |         |               |       |         |     |             |   |         |   |         |   |              |     |          |   |     |   |   |   |        |        |      





---



##### 



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

|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |       |         |   |          |       |          |   |          |     |          |   |          |       |          |    |     |     |     |   |     |     |     |   |     |   | 
|--------------------------------------- | --------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------- | - | -------- | ----- | ------- | - | -------- | ----- | -------- | - | -------- | --- | -------- | - | -------- | ----- | -------- | -- | --- | --- | --- | - | --- | --- | --- | - | --- | - | 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |       |         |   | MeriStar |       | MeriStar |   | MeriStar |     | MeriStar |   | MeriStar |       | MeriStar
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   | MeriStar |       | Sub 6H, |   | Sub 8B,  |       | Sub 1C,  |   | Sub 8E,  |     | Sub 7F,  |   | Sub 5L, 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   | 8G, LLC  |       | L.P.    |   | LLC      |       | L.P.     |   | LLC      |     | LLC      |   | LLC     
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |       |         |   |          |       |          |   |          |     |          |   |         
|Revenue:                                |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |       |         |   |          |       |          |   |          |     |          |   |          |       |          |    |     |     |     |   |     |     |    
|                                        | Participating lease revenue |                                                     |                                                                                                                                                                |                                                                                          |   |          |       | 1,162   |   |          |       | 5,309    |   |          |     | 989      |   |          |       | 1,205    |    |     |     | 878 |   |     |     | 783 |  
|                                        |                             | Hotel operations:                                   |                                                                                                                                                                |                                                                                           |   |          |       |         |   |          |       |          |   |          |     |          |   |          |       |          |    |     |     |     |   |     |     |     |   |    
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |   |         |       |         |   |         |       |          |   |         |     |          |   |         |       |          |    |    |     |     |   |    |     |     |   |    |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |   |         |       |         |   |         |       |          |   |         |     |          |   |         |       |          |    |    |     |     |   |    |     |     |   |    |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |   |         |       |         |   |         |       |          |   |         |     |          |   |         |       |          |    |    |     |     |   |    |     |     |   |    |  
|                                        |                             | Office rental and other revenues                    |                                                                                                                                                                |                                                                                           |  |          |       |         |  |          |       |          |  |          |     |          |  |          |       |          | 21 |     |     |     |  |     |     |     |  |    
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |       |         |   |          |       |          |   |          |     |          |   |          |       |          |    |     |     |     |   |     |     |    
|Total revenue                           |                             |                                                     |                                                                                                                                                               |                                                                                           |   |          | 1,162 |         |   |          | 5,309 |          |   |          | 989 |          |   |          | 1,226 |          |    |     | 878 |     |   |     | 783 |    
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |       |         |   |          |       |          |   |          |     |          |   |          |       |          |    |     |     |     |   |     |     |    
|Hotel operating expenses by department: |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |       |         |   |          |       |          |   |          |     |          |   |          |       |          |    |     |     |     |   |     |     |    
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |   |         |       |         |   |         |       |          |   |         |     |          |   |         |       |          |    |    |     |     |   |    |     |     |   |    |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |   |         |       |         |   |         |       |          |   |         |     |          |   |         |       |          |    |    |     |     |   |    |     |     |   |    |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |   |         |       |         |   |         |       |          |   |         |     |          |   |         |       |          |    |    |     |     |   |    |     |     |   |    |  
|                                        |                             | Office rental, parking and other operating expenses |                                                                                                                                                                |                                                                                           |  |          |       |         |  |          |       |          |  |          |     |          |  |          |       |          |   |     |     |     |  |     |     |     |  |    
|Undistributed operating expenses:       |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |       |         |   |          |       |          |   |          |     |          |   |          |       |          |    |     |     |     |   |     |     |    
|                                        |                             |                                                     | Administrative and general                                                                                                                                     |                                                                                           |   |         |       |         |   | 1        |       |          |   | 1        |     |          |   | 7        |       |          |    | 1   |     |     |   | 1   |     |     |   | 1   |  
|                                        |                             |                                                     | Property operating costs                                                                                                                                       |                                                                                           |   |         |       |         |   |         |       |          |   |         |     |          |   |         |       |          |    |    |     |     |   |    |     |     |   |    |  
|                                        |                             |                                                     | Property taxes, insurance and other                                                                                                                            |                                                                                           |   |         |       |         |   | 74       |       |          |   | 1,066    |     |          |   | 578      |       |          |    | 140 |     |     |   | 106 |     |     |   | 96  |  
|                                        |                             |                                                     | Depreciation and amortization                                                                                                                                  |                                                                                           |   |         |       |         |   | 323      |       |          |   | 1,785    |     |          |   | 767      |       |          |    | 448 |     |     |   | 348 |     |     |   | 101 |  
|                                        |                             |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                                                                           |   |          |       |         |   |          |       |          |   |          |     |          |   |          |       |          |    |     |     |     |   |     |     |     |   |     |  
|                                        |                             |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                                                                           |   |         |       |         |   |         |       |          |   |         |     |          |   |         |       |          |    |    |     |     |   |    |     |     |   |    |  
|                                        |                             |                                                     | Loss on asset impairment                                                                                                                                       |                                                                                           |   |         |       |         |   |         |       |          |   |         |     |          |   |         |       |          |    |    |     |     |   |    |     |     |   |    |  
|                                        |                             |                                                     | Write down of deferred costs                                                                                                                                   |                                                                                           |   |         |       |         |   |         |       |          |   |         |     |          |   |         |       |          |    |    |     |     |   |    |     |     |   |    |  
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                                                                           |   |         |       |         |   |         |       |          |   |         |     |          |   |         |       |          |    |    |     |     |   |    |     |     |   |    |  
|                                        |                             |                                                     | FelCor merger costs                                                                                                                                            |                                                                                           |   |         |       |         |   |         |       |          |   |         |     |          |   |         |       |          |    |    |     |     |   |    |     |     |   |    |  
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality                                                                                                               |                                                                                           |   |         |       |         |   |         |       |          |   |         |     |          |   |         |       |          |    |    |     |     |   |    |     |     |   |    |  
|                                        |                             |                                                     | Restructuring charge                                                                                                                                           |                                                                                           |   |         |       |         |   |         |       |          |   |         |     |          |   |         |       |          |    |    |     |     |   |    |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |       |         |   |          |       |          |   |          |     |          |   |          |       |          |    |     |     |     |   |     |     |    
|                                        |                             |                                                     | Total operating expenses                                                                                                                                       |                                                                                           |   |         |       |         |   | 398      |       |          |   | 2,852    |     |          |   | 1,352    |       |          |    | 589 |     |     |   | 455 |     |     |   | 198 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |       |         |   |          |       |          |   |          |     |          |   |          |       |          |    |     |     |     |   |     |     |    
|                                        |                             |                                                     | Net operating income                                                                                                                                           |                                                                                           |   |         |       |         |   | 764      |       |          |   | 2,457    |     |          |   | (363     | )     |          |    | 637 |     |     |   | 423 |     |     |   | 585 |  
|                                        |                             |                                                     | Interest expense, net                                                                                                                                          |                                                                                           |   |         |       |         |   | (2       | )     |          |   | (67      | )   |          |   | (35      | )     |          |    | (6  | )   |     |   | (8  | )   |     |   | (6  | )
|                                        |                             |                                                     | Equity in income from consolidated entities                                                                                                                    |                                                                                           |   |         |       |         |   |         |       |          |   |         |     |          |   |         |       |          |    |    |     |     |   |    |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |       |         |   |          |       |          |   |          |     |          |   |          |       |          |    |     |     |     |   |     |     |    
|                                        |                             |                                                     | Income (loss) from continuing operations before minority interests,
income tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                                                                           |   |         |       |         |   | 766      |       |          |   | 2,524    |     |          |   | (328     | )     |          |    | 643 |     |     |   | 431 |     |     |   | 591 |  
|                                        |                             |                                                     | Minority interests                                                                                                                                             |                                                                                           |   |          |       |         |   |         |       |          |   |         |     |          |   |         |       |          |    |    |     |     |   |    |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |       |         |   |          |       |          |   |          |     |          |   |          |       |          |    |     |     |     |   |     |     |    
|                                        |                             |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                                                                           |   |         |       |         |   | 766      |       |          |   | 2,524    |     |          |   | (328     | )     |          |    | 643 |     |     |   | 431 |     |     |   | 591 |  
|                                        |                             |                                                     | Income tax benefit                                                                                                                                             |                                                                                           |   |         |       |         |   |         |       |          |   |         |     |          |   |         |       |          |    |    |     |     |   |    |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |       |         |   |          |       |          |   |          |     |          |   |          |       |          |    |     |     |     |   |     |     |    
|                                        |                             |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                                                                           |   |         |       |         |   | 766      |       |          |   | 2,524    |     |          |   | (328     | )     |          |    | 643 |     |     |   | 431 |     |     |   | 591 |  
|                                        |                             |                                                     | Discontinued operations:                                                                                                                                       |                                                                                           |   |          |       |         |   |          |       |          |   |          |     |          |   |          |       |          |    |     |     |     |   |     |     |     |   |     |  
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) from operations of assets sold including loss on disposal
of $6,403 in 2002 |   |          |      |         |   |          |      |          |   |          |    |          |   |          |      |          |    |     |    |     |   |     |    |     |   |     |  | 
|                                        |                             |                                                     |                                                                                                                                                                | Income tax benefit                                                                        |   |          |      |         |   |          |      |          |   |          |    |          |   |          |      |          |    |     |    |     |   |     |    |     |   |     |  | 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |       |         |   |          |       |          |   |          |     |          |   |          |       |          |    |     |     |     |   |     |     |    
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations                                                  |   |          |      |         |   |          |      |          |   |          |    |          |   |          |      |          |    |     |    |     |   |     |    |     |   |     |  | 
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                                                                           |   |         |       |         |   |         |       |          |   |         |     |          |   |         |       |          |    |    |     |     |   |    |     |     |   |    |  
|                                        |                             |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                                                                           |   |         |       |         |   |         |       |          |   |         |     |          |   |         |       |          |    |    |     |     |   |    |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |       |         |   |          |       |          |   |          |     |          |   |          |       |          |    |     |     |     |   |     |     |    
|                                        |                             |                                                     | Net income (loss)                                                                                                                                              |                                                                                           |   |         |       |         |   | 766      |       |          |   | 2,524    |     |          |   | (328     | )     |          |    | 643 |     |     |   | 431 |     |     |   | 591 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |       |         |   |          |       |          |   |          |     |          |   |          |       |          |    |     |     |     |   |     |     |    





---



##### 



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



|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |   |          |   |          |   |          |   |          |   |          |   |          |       |       |    |       |       |       |   |       |       |       |    |     |   | 
|--------------------------------------- | --------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------- | - | -------- | - | -------- | - | -------- | - | -------- | - | -------- | - | -------- | - | -------- | ----- | ----- | -- | ----- | ----- | ----- | - | ----- | ----- | ----- | -- | --- | - | 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar |   | MeriStar
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   | Sub 3C,  |   | Sub 5R,  |   | Sub 5A,  |   | Sub 8A,  |   | Sub 6D,  |   | Sub 6E,  |   | Sub 4E, 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   | LLC      |   | LLC      |   | LLC      |   | LLC      |   | LLC      |   | LLC      |   | L.P.    
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |   |          |   |          |   |          |   |          |   |          |   |         
|Revenue:                                |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |   |          |   |          |   |          |   |          |   |          |   |          |       |       |    |       |       |       |   |       |       |      
|                                        | Participating lease revenue |                                                     |                                                                                                                                                                | 1,329                                                                                     |   |          |   |         |   |          |   |         |   |          |   |         |   |          |       | 1,633 |    |       |       | 4,280 |   |       |       | 1,026 |   
|                                        |                             | Hotel operations:                                   |                                                                                                                                                                |                                                                                           |   |          |   |          |   |          |   |          |   |          |   |          |   |          |       |       |    |       |       |       |   |       |       |       |    |    
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |   |         |   |          |   |         |   |          |   |         |   |          |   |         |       |       |    |      |       |       |   |      |       |       |    |    |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |   |         |   |          |   |         |   |          |   |         |   |          |   |         |       |       |    |      |       |       |   |      |       |       |    |    |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |   |         |   |          |   |         |   |          |   |         |   |          |   |         |       |       |    |      |       |       |   |      |       |       |    |    |  
|                                        |                             | Office rental and other revenues                    |                                                                                                                                                                |                                                                                           |  |          |   |          |  |          |   |          |  |          |   |          |  |          |       |       | 14 |       |       |       |  |       |       |       | 12 |    
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |   |          |   |          |   |          |   |          |   |          |   |          |       |       |    |       |       |       |   |       |       |      
|Total revenue                           |                             |                                                     | 1,329                                                                                                                                                          |                                                                                           |   |          |  |          |   |          |  |          |   |          |  |          |   |          | 1,647 |       |    |       | 4,280 |       |   |       | 1,038 |      
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |   |          |   |          |   |          |   |          |   |          |   |          |       |       |    |       |       |       |   |       |       |      
|Hotel operating expenses by department: |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |   |          |   |          |   |          |   |          |   |          |   |          |       |       |    |       |       |       |   |       |       |      
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |   |         |   |          |   |         |   |          |   |         |   |          |   |         |       |       |    |      |       |       |   |      |       |       |    |    |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |   |         |   |          |   |         |   |          |   |         |   |          |   |         |       |       |    |      |       |       |   |      |       |       |    |    |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |   |         |   |          |   |         |   |          |   |         |   |          |   |         |       |       |    |      |       |       |   |      |       |       |    |    |  
|                                        |                             | Office rental, parking and other operating expenses |                                                                                                                                                                |                                                                                           |  |          |   |          |  |          |   |          |  |          |   |          |  |          |       |       |   |       |       |       |  |       |       |       |   |    
|Undistributed operating expenses:       |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |   |          |   |          |   |          |   |          |   |          |   |          |       |       |    |       |       |       |   |       |       |      
|                                        |                             |                                                     | Administrative and general                                                                                                                                     |                                                                                           |   | 1        |   |          |   |         |   |          |   |         |   |          |   |         |       |       |    |      |       |       |   |      |       |       |    | 1   |  
|                                        |                             |                                                     | Property operating costs                                                                                                                                       |                                                                                           |   |         |   |          |   |         |   |          |   |         |   |          |   |         |       |       |    |      |       |       |   |      |       |       |    |    |  
|                                        |                             |                                                     | Property taxes, insurance and other                                                                                                                            |                                                                                           |   | 342      |   |          |   |         |   |          |   |         |   |          |   |         |       |       |    | 155   |       |       |   | 610   |       |       |    | 303 |  
|                                        |                             |                                                     | Depreciation and amortization                                                                                                                                  |                                                                                           |   | 529      |   |          |   |         |   |          |   |         |   |          |   |         |       |       |    | 393   |       |       |   | 1,272 |       |       |    | 689 |  
|                                        |                             |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                                                                           |   |          |   |          |   |          |   |          |   |          |   |          |   |          |       |       |    |       |       |       |   |       |       |       |    |     |  
|                                        |                             |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                                                                           |   |         |   |          |   |         |   |          |   |         |   |          |   |         |       |       |    |      |       |       |   |      |       |       |    |    |  
|                                        |                             |                                                     | Loss on asset impairment                                                                                                                                       |                                                                                           |   |         |   |          |   |         |   |          |   |         |   |          |   |         |       |       |    |      |       |       |   |      |       |       |    |    |  
|                                        |                             |                                                     | Write down of deferred costs                                                                                                                                   |                                                                                           |   |         |   |          |   |         |   |          |   |         |   |          |   |         |       |       |    |      |       |       |   |      |       |       |    |    |  
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                                                                           |   |         |   |          |   |         |   |          |   |         |   |          |   |         |       |       |    |      |       |       |   |      |       |       |    |    |  
|                                        |                             |                                                     | FelCor merger costs                                                                                                                                            |                                                                                           |   |         |   |          |   |         |   |          |   |         |   |          |   |         |       |       |    |      |       |       |   |      |       |       |    |    |  
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality                                                                                                               |                                                                                           |   |         |   |          |   |         |   |          |   |         |   |          |   |         |       |       |    |      |       |       |   |      |       |       |    |    |  
|                                        |                             |                                                     | Restructuring charge                                                                                                                                           |                                                                                           |   |         |   |          |   |         |   |          |   |         |   |          |   |         |       |       |    |      |       |       |   |      |       |       |    |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |   |          |   |          |   |          |   |          |   |          |   |          |       |       |    |       |       |       |   |       |       |      
|                                        |                             |                                                     | Total operating expenses                                                                                                                                       |                                                                                           |   | 872      |   |          |   |         |   |          |   |         |   |          |   |         |       |       |    | 548   |       |       |   | 1,882 |       |       |    | 993 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |   |          |   |          |   |          |   |          |   |          |   |          |       |       |    |       |       |       |   |       |       |      
|                                        |                             |                                                     | Net operating income                                                                                                                                           |                                                                                           |   | 457      |   |          |   |         |   |          |   |         |   |          |   |         |       |       |    | 1,099 |       |       |   | 2,398 |       |       |    | 45  |  
|                                        |                             |                                                     | Interest expense, net                                                                                                                                          |                                                                                           |   | (15      | ) |          |   |         |   |          |   |         |   |          |   |         |       |       |    | (20   | )     |       |   | (45   | )     |       |    | (20 | )
|                                        |                             |                                                     | Equity in income from consolidated entities                                                                                                                    |                                                                                           |   |         |   |          |   |         |   |          |   |         |   |          |   |         |       |       |    |      |       |       |   |      |       |       |    |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |   |          |   |          |   |          |   |          |   |          |   |          |       |       |    |       |       |       |   |       |       |      
|                                        |                             |                                                     | Income (loss) from continuing operations before minority interests,
income tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                                                                           |   | 472      |   |          |   |         |   |          |   |         |   |          |   |         |       |       |    | 1,119 |       |       |   | 2,443 |       |       |    | 65  |  
|                                        |                             |                                                     | Minority interests                                                                                                                                             |                                                                                           |   |         |   |          |   |         |   |          |   |         |   |          |   |         |       |       |    |      |       |       |   |      |       |       |    |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |   |          |   |          |   |          |   |          |   |          |   |          |       |       |    |       |       |       |   |       |       |      
|                                        |                             |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                                                                           |   | 472      |   |          |   |         |   |          |   |         |   |          |   |         |       |       |    | 1,119 |       |       |   | 2,443 |       |       |    | 65  |  
|                                        |                             |                                                     | Income tax benefit                                                                                                                                             |                                                                                           |   |         |   |          |   |         |   |          |   |         |   |          |   |         |       |       |    |      |       |       |   |      |       |       |    |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |   |          |   |          |   |          |   |          |   |          |   |          |       |       |    |       |       |       |   |       |       |      
|                                        |                             |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                                                                           |   | 472      |   |          |   |         |   |          |   |         |   |          |   |         |       |       |    | 1,119 |       |       |   | 2,443 |       |       |    | 65  |  
|                                        |                             |                                                     | Discontinued operations:                                                                                                                                       |                                                                                           |   |          |   |          |   |          |   |          |   |          |   |          |   |          |       |       |    |       |       |       |   |       |       |       |    |     |  
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) from operations of assets sold including loss on disposal
of $6,403 in 2002 |   |          |  |          |   |          |  |          |   |          |  |          |   |          |      |       |    |       |      |       |   |       |      |       |    |     |  | 
|                                        |                             |                                                     |                                                                                                                                                                | Income tax benefit                                                                        |   |          |  |          |   |          |  |          |   |          |  |          |   |          |      |       |    |       |      |       |   |       |      |       |    |     |  | 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |   |          |   |          |   |          |   |          |   |          |   |          |       |       |    |       |       |       |   |       |       |      
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations                                                  |   |          |  |          |   |          |  |          |   |          |  |          |   |          |      |       |    |       |      |       |   |       |      |       |    |     |  | 
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                                                                           |   |         |   |          |   |         |   |          |   |         |   |          |   |         |       |       |    |      |       |       |   |      |       |       |    |    |  
|                                        |                             |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                                                                           |   |         |   |          |   |         |   |          |   |         |   |          |   |         |       |       |    |      |       |       |   |      |       |       |    |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |   |          |   |          |   |          |   |          |   |          |   |          |       |       |    |       |       |       |   |       |       |      
|                                        |                             |                                                     | Net income (loss)                                                                                                                                              |                                                                                           |   | 472      |   |          |   |         |   |          |   |         |   |          |   |         |       |       |    | 1,119 |       |       |   | 2,443 |       |       |    | 65  |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |   |          |   |          |   |          |   |          |   |          |   |          |       |       |    |       |       |       |   |       |       |      





---



##### 



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

|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |       |          |   |          |       |          |   |          |       |          |   |          |   |   |   |        |        |     |   |      |       |       |   |     |   | 
|--------------------------------------- | --------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------- | --- | -------- | ----- | -------- | - | -------- | ----- | -------- | - | -------- | ----- | -------- | - | -------- | - | - | - | ------ | ------ | --- | - | ---- | ----- | ----- | - | --- | - | 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     | MeriStar |       | MeriStar |   | MeriStar |       | MeriStar |   | MeriStar |       | MeriStar |   | MeriStar
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     | Sub 1B,  |       | Sub 5F   |   | Sub 6G,  |       | Sub 8C,  |   | Sub 4C,  |       | Sub 4H,  |   | Sub 7E, 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     | LLC      |       | L.P,     |   | LLC      |       | LLC      |   | L.P.     |       | L.P.     |   | LLC     
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |       |          |   |          |       |          |   |          |       |          |   |         
|Revenue:                                |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |       |          |   |          |       |          |   |          |       |          |   |          |   |   |   |        |        |     |   |      |       |      
|                                        | Participating lease revenue |                                                     |                                                                                                                                                                | 1,849                                                                                     |     |          |       | 2,146    |   |          |       | 1,966    |   |          |       | 1,460    |   |          |   |  |   |        |        | 450 |   |      |       | 1,030 |  
|                                        |                             | Hotel operations:                                   |                                                                                                                                                                |                                                                                           |     |          |       |          |   |          |       |          |   |          |       |          |   |          |   |   |   |        |        |     |   |      |       |       |   |    
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |     |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |       |        |     |   |     |       |       |   |    |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |     |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |       |        |     |   |     |       |       |   |    |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |     |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |       |        |     |   |     |       |       |   |    |  
|                                        |                             | Office rental and other revenues                    |                                                                                                                                                                |                                                                                           | 570 |          |       |          |  |          |       |          |  |          |       |          | 2 |          |   |   |  |        |        |     |  |      |       |       | 1 |    
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |       |          |   |          |       |          |   |          |       |          |   |          |   |   |   |        |        |     |   |      |       |      
|Total revenue                           |                             |                                                     | 2,419                                                                                                                                                          |                                                                                           |     |          | 2,146 |          |   |          | 1,966 |          |   |          | 1,462 |          |   |          |  |   |   |        | 450    |     |   |      | 1,031 |      
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |       |          |   |          |       |          |   |          |       |          |   |          |   |   |   |        |        |     |   |      |       |      
|Hotel operating expenses by department: |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |       |          |   |          |       |          |   |          |       |          |   |          |   |   |   |        |        |     |   |      |       |      
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |     |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |       |        |     |   |     |       |       |   |    |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |     |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |       |        |     |   |     |       |       |   |    |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |     |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |       |        |     |   |     |       |       |   |    |  
|                                        |                             | Office rental, parking and other operating expenses |                                                                                                                                                                |                                                                                           |    |          |       |          |  |          |       |          |  |          |       |          |  |          |   |   |  |        |        |     |  |      |       |       |  |    
|Undistributed operating expenses:       |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |       |          |   |          |       |          |   |          |       |          |   |          |   |   |   |        |        |     |   |      |       |      
|                                        |                             |                                                     | Administrative and general                                                                                                                                     |                                                                                           |     | 1        |       |          |   | 1        |       |          |   |         |       |          |   |         |   |   |   |       |        |     |   | 1    |       |       |   | 1   |  
|                                        |                             |                                                     | Property operating costs                                                                                                                                       |                                                                                           |     |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |       |        |     |   |     |       |       |   |    |  
|                                        |                             |                                                     | Property taxes, insurance and other                                                                                                                            |                                                                                           |     | 131      |       |          |   | 271      |       |          |   | 256      |       |          |   | 457      |   |   |   |       |        |     |   | 146  |       |       |   | 121 |  
|                                        |                             |                                                     | Depreciation and amortization                                                                                                                                  |                                                                                           |     | 462      |       |          |   | 792      |       |          |   | 627      |       |          |   | 1,037    |   |   |   |       |        |     |   | 405  |       |       |   | 473 |  
|                                        |                             |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                                                                           |     |          |       |          |   |          |       |          |   |          |       |          |   |          |   |   |   |        |        |     |   |      |       |       |   |     |  
|                                        |                             |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                                                                           |     |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |       |        |     |   |     |       |       |   |    |  
|                                        |                             |                                                     | Loss on asset impairment                                                                                                                                       |                                                                                           |     |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |       |        |     |   |     |       |       |   |    |  
|                                        |                             |                                                     | Write down of deferred costs                                                                                                                                   |                                                                                           |     |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |       |        |     |   |     |       |       |   |    |  
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                                                                           |     |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |       |        |     |   |     |       |       |   |    |  
|                                        |                             |                                                     | FelCor merger costs                                                                                                                                            |                                                                                           |     |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |       |        |     |   |     |       |       |   |    |  
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality                                                                                                               |                                                                                           |     |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |       |        |     |   |     |       |       |   |    |  
|                                        |                             |                                                     | Restructuring charge                                                                                                                                           |                                                                                           |     |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |       |        |     |   |     |       |       |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |       |          |   |          |       |          |   |          |       |          |   |          |   |   |   |        |        |     |   |      |       |      
|                                        |                             |                                                     | Total operating expenses                                                                                                                                       |                                                                                           |     | 594      |       |          |   | 1,064    |       |          |   | 883      |       |          |   | 1,494    |   |   |   |       |        |     |   | 552  |       |       |   | 595 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |       |          |   |          |       |          |   |          |       |          |   |          |   |   |   |        |        |     |   |      |       |      
|                                        |                             |                                                     | Net operating income                                                                                                                                           |                                                                                           |     | 1,825    |       |          |   | 1,082    |       |          |   | 1,083    |       |          |   | (32      | ) |   |   |       |        |     |   | (102 | )     |       |   | 436 |  
|                                        |                             |                                                     | Interest expense, net                                                                                                                                          |                                                                                           |     | (14      | )     |          |   | (30      | )     |          |   | (35      | )     |          |   | (32      | ) |   |   |       |        |     |   | (7   | )     |       |   | (15 | )
|                                        |                             |                                                     | Equity in income from consolidated entities                                                                                                                    |                                                                                           |     |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |       |        |     |   |     |       |       |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |       |          |   |          |       |          |   |          |       |          |   |          |   |   |   |        |        |     |   |      |       |      
|                                        |                             |                                                     | Income (loss) from continuing operations before minority interests,
income tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                                                                           |     | 1,839    |       |          |   | 1,112    |       |          |   | 1,118    |       |          |   |         |   |   |   |       |        |     |   | (95  | )     |       |   | 451 |  
|                                        |                             |                                                     | Minority interests                                                                                                                                             |                                                                                           |     |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |       |        |     |   |     |       |       |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |       |          |   |          |       |          |   |          |       |          |   |          |   |   |   |        |        |     |   |      |       |      
|                                        |                             |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                                                                           |     | 1,839    |       |          |   | 1,112    |       |          |   | 1,118    |       |          |   |         |   |   |   |       |        |     |   | (95  | )     |       |   | 451 |  
|                                        |                             |                                                     | Income tax benefit                                                                                                                                             |                                                                                           |     |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |       |        |     |   |     |       |       |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |       |          |   |          |       |          |   |          |       |          |   |          |   |   |   |        |        |     |   |      |       |      
|                                        |                             |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                                                                           |     | 1,839    |       |          |   | 1,112    |       |          |   | 1,118    |       |          |   |         |   |   |   |       |        |     |   | (95  | )     |       |   | 451 |  
|                                        |                             |                                                     | Discontinued operations:                                                                                                                                       |                                                                                           |     |          |       |          |   |          |       |          |   |          |       |          |   |          |   |   |   |        |        |     |   |      |       |       |   |     |  
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) from operations of assets sold including loss on disposal
of $6,403 in 2002 |     |          |      |          |   |          |      |          |   |          |      |          |   |          |  |   |   |        | (1,439 | )   |   |      |      |       |   |     |  | 
|                                        |                             |                                                     |                                                                                                                                                                | Income tax benefit                                                                        |     |          |      |          |   |          |      |          |   |          |      |          |   |          |  |   |   |        | 32     |     |   |      |      |       |   |     |  | 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |       |          |   |          |       |          |   |          |       |          |   |          |   |   |   |        |        |     |   |      |       |      
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations                                                  |     |          |      |          |   |          |      |          |   |          |      |          |   |          |  |   |   |        | (1,407 | )   |   |      |      |       |   |     |  | 
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                                                                           |     |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |       |        |     |   |     |       |       |   |    |  
|                                        |                             |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                                                                           |     |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |       |        |     |   |     |       |       |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |       |          |   |          |       |          |   |          |       |          |   |          |   |   |   |        |        |     |   |      |       |      
|                                        |                             |                                                     | Net income (loss)                                                                                                                                              |                                                                                           |     | 1,839    |       |          |   | 1,112    |       |          |   | 1,118    |       |          |   |         |   |   |   | (1,407 | )      |     |   | (95  | )     |       |   | 451 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |       |          |   |          |       |          |   |          |       |          |   |          |   |   |   |        |        |     |   |      |       |      





---



##### 



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

|                                                |                                     |                                                             |                                                                                                                                                                                |                                                                                                   |   |          |       |          |   |          |       |         |   |          |     |          |   |          | MeriStar |       |   |       |     |     |   |      |     |     |   |     |  
|----------------------------------------------- | ----------------------------------- | ----------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------- | - | -------- | ----- | -------- | - | -------- | ----- | ------- | - | -------- | --- | -------- | - | -------- | -------- | ----- | - | ----- | --- | --- | - | ---- | --- | --- | - | --- | -
|                                                |                                     |                                                             |                                                                                                                                                                                |                                                                                                   |   |          |       |          |   |          |       |         |   |          |     |          |   |          | Sub      |       |   |       |     |     |   |      |     |     |   |     |  
|                                                |                                     |                                                             |                                                                                                                                                                                |                                                                                                   |   | MeriStar |       | MeriStar |   | MeriStar |       | 7A      |   | MeriStar |     | MeriStar |   | MeriStar
|                                                |                                     |                                                             |                                                                                                                                                                                |                                                                                                   |   | Sub 3D,  |       | Sub 1A,  |   | Sub 5E,  |       | Joint   |   | Sub 6K,  |     | Sub 2B,  |   | Sub 3A, 
|                                                |                                     |                                                             |                                                                                                                                                                                |                                                                                                   |   | LLC      |       | LLC      |   | LLC      |       | Venture |   | LLC      |     | LLC      |   | LLC     
|                                                |                                     |                                                             |                                                                                                                                                                                |                                                                                                   |   |          |       |          |   |          |       |         |   |          |     |          |   |         
|Revenue:                                        |                                     |                                                             |                                                                                                                                                                                |                                                                                                   |   |          |       |          |   |          |       |         |   |          |     |          |   |          |          |       |   |       |     |     |   |      |     |    
|                                                | Participating
        lease revenue |                                                             |                                                                                                                                                                                | 1,745                                                                                             |   |          |       | 1,353    |   |          |       | 4,258   |   |          |     | 979      |   |          |          | 3,055 |   |       |     | 423 |   |      |     | 398 |  
|                                                |                                     | Hotel operations:                                           |                                                                                                                                                                                |                                                                                                   |   |          |       |          |   |          |       |         |   |          |     |          |   |          |          |       |   |       |     |     |   |      |     |     |   |    
|                                                |                                     |                                                             | Rooms                                                                                                                                                                          |                                                                                                   |   |         |       |          |   |         |       |         |   |         |     |          |   |         |          |       |   |      |     |     |   |     |     |     |   |    |  
|                                                |                                     |                                                             | Food and
        beverage                                                                                                                                                      |                                                                                                   |   |         |       |          |   |         |       |         |   |         |     |          |   |         |          |       |   |      |     |     |   |     |     |     |   |    |  
|                                                |                                     |                                                             | Other operating
        departments                                                                                                                                            |                                                                                                   |   |         |       |          |   |         |       |         |   |         |     |          |   |         |          |       |   |      |     |     |   |     |     |     |   |    |  
|                                                |                                     | Office rental
        and other revenues                    |                                                                                                                                                                                |                                                                                                   |  |          |       |          |  |          |       |         |  |          |     |          |  |          |          |       |  |       |     |     |  |      |     |     |  |    
|                                                |                                     |                                                             |                                                                                                                                                                                |                                                                                                   |   |          |       |          |   |          |       |         |   |          |     |          |   |          |          |       |   |       |     |     |   |      |     |    
|Total revenue                                   |                                     |                                                             | 1,745                                                                                                                                                                          |                                                                                                   |   |          | 1,353 |          |   |          | 4,258 |         |   |          | 979 |          |   |          | 3,055    |       |   |       | 423 |     |   |      | 398 |    
|                                                |                                     |                                                             |                                                                                                                                                                                |                                                                                                   |   |          |       |          |   |          |       |         |   |          |     |          |   |          |          |       |   |       |     |     |   |      |     |    
|Hotel operating
        expenses by department: |                                     |                                                             |                                                                                                                                                                                |                                                                                                   |   |          |       |          |   |          |       |         |   |          |     |          |   |          |          |       |   |       |     |     |   |      |     |    
|                                                |                                     |                                                             | Rooms                                                                                                                                                                          |                                                                                                   |   |         |       |          |   |         |       |         |   |         |     |          |   |         |          |       |   |      |     |     |   |     |     |     |   |    |  
|                                                |                                     |                                                             | Food and
        beverage                                                                                                                                                      |                                                                                                   |   |         |       |          |   |         |       |         |   |         |     |          |   |         |          |       |   |      |     |     |   |     |     |     |   |    |  
|                                                |                                     |                                                             | Other operating
        departments                                                                                                                                            |                                                                                                   |   |         |       |          |   |         |       |         |   |         |     |          |   |         |          |       |   |      |     |     |   |     |     |     |   |    |  
|                                                |                                     | Office rental,
        parking and other operating expenses |                                                                                                                                                                                |                                                                                                   |  |          |       |          |  |          |       |         |  |          |     |          |  |          |          |       |  |       |     |     |  |      |     |     |  |    
|Undistributed
        operating expenses:       |                                     |                                                             |                                                                                                                                                                                |                                                                                                   |   |          |       |          |   |          |       |         |   |          |     |          |   |          |          |       |   |       |     |     |   |      |     |    
|                                                |                                     |                                                             | Administrative
        and general                                                                                                                                             |                                                                                                   |   | 1        |       |          |   | 1        |       |         |   | 1        |     |          |   | 1        |          |       |   |      |     |     |   | 1    |     |     |   | 1   |  
|                                                |                                     |                                                             | Property
        operating costs                                                                                                                                               |                                                                                                   |   |         |       |          |   |         |       |         |   |         |     |          |   |         |          |       |   |      |     |     |   |     |     |     |   |    |  
|                                                |                                     |                                                             | Property
        taxes, insurance and other                                                                                                                                    |                                                                                                   |   | 157      |       |          |   | 287      |       |         |   | 294      |     |          |   | 172      |          |       |   | 346   |     |     |   | 118  |     |     |   | 85  |  
|                                                |                                     |                                                             | Depreciation
        and amortization                                                                                                                                          |                                                                                                   |   | 653      |       |          |   | 343      |       |         |   | 1,454    |     |          |   | 312      |          |       |   | 554   |     |     |   | 314  |     |     |   | 194 |  
|                                                |                                     |                                                             | Expense
        for non-hedging derivatives                                                                                                                                    |                                                                                                   |   |          |       |          |   |          |       |         |   |          |     |          |   |          |          |       |   |       |     |     |   |      |     |     |   |     |  
|                                                |                                     |                                                             | Write down
        of investment in STS Hotel Net                                                                                                                              |                                                                                                   |   |         |       |          |   |         |       |         |   |         |     |          |   |         |          |       |   |      |     |     |   |     |     |     |   |    |  
|                                                |                                     |                                                             | Loss on
        asset impairment                                                                                                                                               |                                                                                                   |   |         |       |          |   |         |       |         |   |         |     |          |   |         |          |       |   |      |     |     |   |     |     |     |   |    |  
|                                                |                                     |                                                             | Write down
        of deferred costs                                                                                                                                           |                                                                                                   |   |         |       |          |   |         |       |         |   |         |     |          |   |         |          |       |   |      |     |     |   |     |     |     |   |    |  
|                                                |                                     |                                                             | Loss on
        fair value of non-hedging derivatives                                                                                                                          |                                                                                                   |   |         |       |          |   |         |       |         |   |         |     |          |   |         |          |       |   |      |     |     |   |     |     |     |   |    |  
|                                                |                                     |                                                             | FelCor merger
        costs                                                                                                                                                    |                                                                                                   |   |         |       |          |   |         |       |         |   |         |     |          |   |         |          |       |   |      |     |     |   |     |     |     |   |    |  
|                                                |                                     |                                                             | Costs to
        terminate leases with Prime Hospitality                                                                                                                       |                                                                                                   |   |         |       |          |   |         |       |         |   |         |     |          |   |         |          |       |   |      |     |     |   |     |     |     |   |    |  
|                                                |                                     |                                                             | Restructuring
        charge                                                                                                                                                   |                                                                                                   |   |         |       |          |   |         |       |         |   |         |     |          |   |         |          |       |   |      |     |     |   |     |     |     |   |    |  
|                                                |                                     |                                                             |                                                                                                                                                                                |                                                                                                   |   |          |       |          |   |          |       |         |   |          |     |          |   |          |          |       |   |       |     |     |   |      |     |    
|                                                |                                     |                                                             | Total operating
        expenses                                                                                                                                               |                                                                                                   |   | 811      |       |          |   | 631      |       |         |   | 1,749    |     |          |   | 485      |          |       |   | 900   |     |     |   | 433  |     |     |   | 280 |  
|                                                |                                     |                                                             |                                                                                                                                                                                |                                                                                                   |   |          |       |          |   |          |       |         |   |          |     |          |   |          |          |       |   |       |     |     |   |      |     |    
|                                                |                                     |                                                             | Net operating
        income                                                                                                                                                   |                                                                                                   |   | 934      |       |          |   | 722      |       |         |   | 2,509    |     |          |   | 494      |          |       |   | 2,155 |     |     |   | (10  | )   |     |   | 118 |  
|                                                |                                     |                                                             | Interest
        expense, net                                                                                                                                                  |                                                                                                   |   | (32      | )     |          |   | (14      | )     |         |   | (25      | )   |          |   | (26      | )        |       |   | (28   | )   |     |   | 289  |     |     |   | (33 | )
|                                                |                                     |                                                             | Equity in
        income from consolidated entities                                                                                                                            |                                                                                                   |   |         |       |          |   |         |       |         |   |         |     |          |   |         |          |       |   |      |     |     |   |     |     |     |   |    |  
|                                                |                                     |                                                             |                                                                                                                                                                                |                                                                                                   |   |          |       |          |   |          |       |         |   |          |     |          |   |          |          |       |   |       |     |     |   |      |     |    
|                                                |                                     |                                                             | Income (loss) from
        continuing operations before minority interests, income tax benefit, discontinued
        operations, loss on sale of assets and extraordinary loss |                                                                                                   |   | 966      |       |          |   | 736      |       |         |   | 2,534    |     |          |   | 520      |          |       |   | 2,183 |     |     |   | (299 | )   |     |   | 151 |  
|                                                |                                     |                                                             | Minority
        interests                                                                                                                                                     |                                                                                                   |   |         |       |          |   |         |       |         |   |         |     |          |   |         |          |       |   |      |     |     |   |     |     |     |   |    |  
|                                                |                                     |                                                             |                                                                                                                                                                                |                                                                                                   |   |          |       |          |   |          |       |         |   |          |     |          |   |          |          |       |   |       |     |     |   |      |     |    
|                                                |                                     |                                                             | Income (loss) from
        continuing operating before income tax benefit, discontinued operations,
        loss on sale of assets and extraordinary loss                      |                                                                                                   |   | 966      |       |          |   | 736      |       |         |   | 2,534    |     |          |   | 520      |          |       |   | 2,183 |     |     |   | (299 | )   |     |   | 151 |  
|                                                |                                     |                                                             | Income tax
        benefit                                                                                                                                                     |                                                                                                   |   |         |       |          |   |         |       |         |   |         |     |          |   |         |          |       |   |      |     |     |   |     |     |     |   |    |  
|                                                |                                     |                                                             |                                                                                                                                                                                |                                                                                                   |   |          |       |          |   |          |       |         |   |          |     |          |   |          |          |       |   |       |     |     |   |      |     |    
|                                                |                                     |                                                             | Income (loss) from
        continuing operations before discontinued operations and loss on sale
        of assets                                                             |                                                                                                   |   | 966      |       |          |   | 736      |       |         |   | 2,534    |     |          |   | 520      |          |       |   | 2,183 |     |     |   | (299 | )   |     |   | 151 |  
|                                                |                                     |                                                             | Discontinued
        operations:                                                                                                                                               |                                                                                                   |   |          |       |          |   |          |       |         |   |          |     |          |   |          |          |       |   |       |     |     |   |      |     |     |   |     |  
|                                                |                                     |                                                             |                                                                                                                                                                                | Income (loss) from
        operations of assets sold including loss on disposal of $6,403 in 2002 |   |          |      |          |   |          |      |         |   |          |    |          |   |          |         |       |   |       |    |     |   |      |    |     |   |     | 
|                                                |                                     |                                                             |                                                                                                                                                                                | Income tax
        benefit                                                                        |   |          |      |          |   |          |      |         |   |          |    |          |   |          |         |       |   |       |    |     |   |      |    |     |   |     | 
|                                                |                                     |                                                             |                                                                                                                                                                                |                                                                                                   |   |          |       |          |   |          |       |         |   |          |     |          |   |          |          |       |   |       |     |     |   |      |     |    
|                                                |                                     |                                                             |                                                                                                                                                                                | Income (loss) on
        discontinued operations                                                  |   |          |      |          |   |          |      |         |   |          |    |          |   |          |         |       |   |       |    |     |   |      |    |     |   |     | 
|                                                |                                     |                                                             | Loss on
        sale of assets, net of tax effect                                                                                                                              |                                                                                                   |   |         |       |          |   |         |       |         |   |         |     |          |   |         |          |       |   |      |     |     |   |     |     |     |   |    |  
|                                                |                                     |                                                             | Extraordinary
        loss, net of tax                                                                                                                                         |                                                                                                   |   |         |       |          |   |         |       |         |   |         |     |          |   |         |          |       |   |      |     |     |   |     |     |     |   |    |  
|                                                |                                     |                                                             |                                                                                                                                                                                |                                                                                                   |   |          |       |          |   |          |       |         |   |          |     |          |   |          |          |       |   |       |     |     |   |      |     |    
|                                                |                                     |                                                             | Net income
        (loss)                                                                                                                                                      |                                                                                                   |   | 966      |       |          |   | 736      |       |         |   | 2,534    |     |          |   | 520      |          |       |   | 2,183 |     |     |   | (299 | )   |     |   | 151 |  
|                                                |                                     |                                                             |                                                                                                                                                                                |                                                                                                   |   |          |       |          |   |          |       |         |   |          |     |          |   |          |          |       |   |       |     |     |   |      |     |    





---



##### 



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

|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |          |     |          |   |             |       |          |   |          |     |     |   |     |       |       |   |     |       |       |   |       |   | 
|--------------------------------------- | --------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------- | - | -------- | --- | -------- | - | -------- | --- | -------- | - | ----------- | ----- | -------- | - | -------- | --- | --- | - | --- | ----- | ----- | - | --- | ----- | ----- | - | ----- | - | 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   | MeriStar |     | MeriStar |   | MeriStar |     | MeriStar |   | MDV         |       | MeriStar |   | MeriStar
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   | Sub 4A   |     | Sub 4D,  |   | Sub 2A,  |     | Sub 6L,  |   | Limited     |       | Sub 5C,  |   | Sub 6J, 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   | LLC      |     | LLC      |   | LLC      |     | LLC      |   | Partnership |       | LLC      |   | LLC     
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |          |     |          |   |             |       |          |   |         
|Revenue:                                |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |          |     |          |   |             |       |          |   |          |     |     |   |     |       |       |   |     |       |      
|                                        | Participating lease revenue |                                                     |                                                                                                                                                                | 745                                                                                       |   |          |     | 380      |   |          |     | 458      |   |             |       | 1,383    |   |          |     | 402 |   |     |       | 1,133 |   |     |       | 1,915 |  
|                                        |                             | Hotel operations:                                   |                                                                                                                                                                |                                                                                           |   |          |     |          |   |          |     |          |   |             |       |          |   |          |     |     |   |     |       |       |   |     |       |       |   |      
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             | Office rental and other revenues                    |                                                                                                                                                                |                                                                                           |  |          |     |          |  |          |     |          |  |             |       |          |  |          |     |     |  |     |       |       |  |     |       |       |  |      
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |          |     |          |   |             |       |          |   |          |     |     |   |     |       |       |   |     |       |      
|Total revenue                           |                             |                                                     | 745                                                                                                                                                            |                                                                                           |   |          | 380 |          |   |          | 458 |          |   |             | 1,383 |          |   |          | 402 |     |   |     | 1,133 |       |   |     | 1,915 |      
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |          |     |          |   |             |       |          |   |          |     |     |   |     |       |       |   |     |       |      
|Hotel operating expenses by department: |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |          |     |          |   |             |       |          |   |          |     |     |   |     |       |       |   |     |       |      
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             | Office rental, parking and other operating expenses |                                                                                                                                                                |                                                                                           |  |          |     |          |  |          |     |          |  |             |       |          |  |          |     |     |  |     |       |       |  |     |       |       |  |      
|Undistributed operating expenses:       |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |          |     |          |   |             |       |          |   |          |     |     |   |     |       |       |   |     |       |      
|                                        |                             |                                                     | Administrative and general                                                                                                                                     |                                                                                           |   | 1        |     |          |   | 1        |     |          |   | 1           |       |          |   | 1        |     |     |   |    |       |       |   | 1   |       |       |   |      |  
|                                        |                             |                                                     | Property operating costs                                                                                                                                       |                                                                                           |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             |                                                     | Property taxes, insurance and other                                                                                                                            |                                                                                           |   | 187      |     |          |   | 130      |     |          |   | 126         |       |          |   | 150      |     |     |   | 94  |       |       |   | 354 |       |       |   | 160   |  
|                                        |                             |                                                     | Depreciation and amortization                                                                                                                                  |                                                                                           |   |         |     |          |   | 233      |     |          |   | 240         |       |          |   | 667      |     |     |   | 102 |       |       |   | 447 |       |       |   | 482   |  
|                                        |                             |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                                                                           |   |          |     |          |   |          |     |          |   |             |       |          |   |          |     |     |   |     |       |       |   |     |       |       |   |       |  
|                                        |                             |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                                                                           |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             |                                                     | Loss on asset impairment                                                                                                                                       |                                                                                           |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             |                                                     | Write down of deferred costs                                                                                                                                   |                                                                                           |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                                                                           |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             |                                                     | FelCor merger costs                                                                                                                                            |                                                                                           |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality                                                                                                               |                                                                                           |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             |                                                     | Restructuring charge                                                                                                                                           |                                                                                           |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |          |     |          |   |             |       |          |   |          |     |     |   |     |       |       |   |     |       |      
|                                        |                             |                                                     | Total operating expenses                                                                                                                                       |                                                                                           |   | 188      |     |          |   | 364      |     |          |   | 367         |       |          |   | 818      |     |     |   | 196 |       |       |   | 802 |       |       |   | 642   |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |          |     |          |   |             |       |          |   |          |     |     |   |     |       |       |   |     |       |      
|                                        |                             |                                                     | Net operating income                                                                                                                                           |                                                                                           |   | 557      |     |          |   | 16       |     |          |   | 91          |       |          |   | 565      |     |     |   | 206 |       |       |   | 331 |       |       |   | 1,273 |  
|                                        |                             |                                                     | Interest expense, net                                                                                                                                          |                                                                                           |   | (28      | )   |          |   | (33      | )   |          |   | 510         |       |          |   | (10      | )   |     |   | (2  | )     |       |   | (28 | )     |       |   | (31   | )
|                                        |                             |                                                     | Equity in income from consolidated entities                                                                                                                    |                                                                                           |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |          |     |          |   |             |       |          |   |          |     |     |   |     |       |       |   |     |       |      
|                                        |                             |                                                     | Income (loss) from continuing operations before minority interests,
income tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                                                                           |   | 585      |     |          |   | 49       |     |          |   | (419        | )     |          |   | 575      |     |     |   | 208 |       |       |   | 359 |       |       |   | 1,304 |  
|                                        |                             |                                                     | Minority interests                                                                                                                                             |                                                                                           |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |          |     |          |   |             |       |          |   |          |     |     |   |     |       |       |   |     |       |      
|                                        |                             |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                                                                           |   | 585      |     |          |   | 49       |     |          |   | (419        | )     |          |   | 575      |     |     |   | 208 |       |       |   | 359 |       |       |   | 1,304 |  
|                                        |                             |                                                     | Income tax benefit                                                                                                                                             |                                                                                           |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |          |     |          |   |             |       |          |   |          |     |     |   |     |       |       |   |     |       |      
|                                        |                             |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                                                                           |   | 585      |     |          |   | 49       |     |          |   | (419        | )     |          |   | 575      |     |     |   | 208 |       |       |   | 359 |       |       |   | 1,304 |  
|                                        |                             |                                                     | Discontinued operations:                                                                                                                                       |                                                                                           |   |          |     |          |   |          |     |          |   |             |       |          |   |          |     |     |   |     |       |       |   |     |       |       |   |       |  
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) from operations of assets sold including loss on disposal
of $6,403 in 2002 |   |          |    |          |   |          |    |          |   |             |      |          |   |          |    |     |   |     |      |       |   |     |      |       |   |       |  | 
|                                        |                             |                                                     |                                                                                                                                                                | Income tax benefit                                                                        |   |          |    |          |   |          |    |          |   |             |      |          |   |          |    |     |   |     |      |       |   |     |      |       |   |       |  | 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |          |     |          |   |             |       |          |   |          |     |     |   |     |       |       |   |     |       |      
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations                                                  |   |          |    |          |   |          |    |          |   |             |      |          |   |          |    |     |   |     |      |       |   |     |      |       |   |       |  | 
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                                                                           |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                                                                           |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |          |     |          |   |             |       |          |   |          |     |     |   |     |       |       |   |     |       |      
|                                        |                             |                                                     | Net income (loss)                                                                                                                                              |                                                                                           |   | 585      |     |          |   | 49       |     |          |   | (419        | )     |          |   | 575      |     |     |   | 208 |       |       |   | 359 |       |       |   | 1,304 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |          |     |          |   |             |       |          |   |          |     |     |   |     |       |       |   |     |       |      





---



##### 



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



|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |       |          |   |          |       |          |       |          |     |          |   |          |     |     |   |     |    |    |   |      |       |       |   |        |   | 
|--------------------------------------- | --------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------- | --- | -------- | ----- | -------- | - | -------- | ----- | -------- | ----- | -------- | --- | -------- | - | -------- | --- | --- | - | --- | -- | -- | - | ---- | ----- | ----- | - | ------ | - | 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     | MeriStar |       | MeriStar |   | MeriStar |       | MeriStar |       | MeriStar |     | MeriStar |   | MeriStar
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     | Sub 1D,  |       | Sub 7B,  |   | Sub 7D,  |       | Sub 7G,  |       | Sub 6B,  |     | Sub 4I,  |   | Sub 5D, 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     | L.P.     |       | L.P.     |   | LLC      |       | LLC      |       | LLC      |     | L.P.     |   | LLC     
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |       |          |   |          |       |          |       |          |     |          |   |         
|Revenue:                                |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |       |          |   |          |       |          |       |          |     |          |   |          |     |     |   |     |    |    |   |      |       |      
|                                        | Participating lease revenue |                                                     |                                                                                                                                                                | 3,938                                                                                     |     |          |       | 1,172    |   |          |       | 4,161    |       |          |     | 438      |   |          |     | 942 |   |     |    | 58 |   |      |       | 1,446 |  
|                                        |                             | Hotel operations:                                   |                                                                                                                                                                |                                                                                           |     |          |       |          |   |          |       |          |       |          |     |          |   |          |     |     |   |     |    |    |   |      |       |       |   |       
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |     |         |       |          |   |         |       |          |       |         |     |          |   |         |     |     |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |     |         |       |          |   |         |       |          |       |         |     |          |   |         |     |     |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |     |         |       |          |   |         |       |          |       |         |     |          |   |         |     |     |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             | Office rental and other revenues                    |                                                                                                                                                                |                                                                                           | 329 |          |       |          |  |          |       |          | 1,046 |          |     |          |  |          |     |     |  |     |    |    |  |      |       |       |  |       
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |       |          |   |          |       |          |       |          |     |          |   |          |     |     |   |     |    |    |   |      |       |      
|Total revenue                           |                             |                                                     | 4,267                                                                                                                                                          |                                                                                           |     |          | 1,172 |          |   |          | 5,207 |          |       |          | 438 |          |   |          | 942 |     |   |     | 58 |    |   |      | 1,446 |      
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |       |          |   |          |       |          |       |          |     |          |   |          |     |     |   |     |    |    |   |      |       |      
|Hotel operating expenses by department: |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |       |          |   |          |       |          |       |          |     |          |   |          |     |     |   |     |    |    |   |      |       |      
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |     |         |       |          |   |         |       |          |       |         |     |          |   |         |     |     |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |     |         |       |          |   |         |       |          |       |         |     |          |   |         |     |     |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |     |         |       |          |   |         |       |          |       |         |     |          |   |         |     |     |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             | Office rental, parking and other operating expenses |                                                                                                                                                                |                                                                                           | 97  |          |       |          |  |          |       |          | 869   |          |     |          |  |          |     |     |  |     |    |    |  |      |       |       |  |       
|Undistributed operating expenses:       |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |       |          |   |          |       |          |       |          |     |          |   |          |     |     |   |     |    |    |   |      |       |      
|                                        |                             |                                                     | Administrative and general                                                                                                                                     |                                                                                           |     |         |       |          |   | 1        |       |          |       |         |     |          |   | 1        |     |     |   | 1   |    |    |   |     |       |       |   | 1      |  
|                                        |                             |                                                     | Property operating costs                                                                                                                                       |                                                                                           |     |         |       |          |   |         |       |          |       |         |     |          |   |         |     |     |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             |                                                     | Property taxes, insurance and other                                                                                                                            |                                                                                           |     | 907      |       |          |   | 409      |       |          |       | 1,610    |     |          |   | 181      |     |     |   | 171 |    |    |   | 240  |       |       |   | 253    |  
|                                        |                             |                                                     | Depreciation and amortization                                                                                                                                  |                                                                                           |     | 1,702    |       |          |   | 694      |       |          |       | 1,244    |     |          |   | 566      |     |     |   | 341 |    |    |   | 341  |       |       |   | 1,086  |  
|                                        |                             |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                                                                           |     |          |       |          |   |          |       |          |       |          |     |          |   |          |     |     |   |     |    |    |   |      |       |       |   |        |  
|                                        |                             |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                                                                           |     |         |       |          |   |         |       |          |       |         |     |          |   |         |     |     |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             |                                                     | Loss on asset impairment                                                                                                                                       |                                                                                           |     |         |       |          |   |         |       |          |       |         |     |          |   |         |     |     |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             |                                                     | Write down of deferred costs                                                                                                                                   |                                                                                           |     |         |       |          |   |         |       |          |       |         |     |          |   |         |     |     |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                                                                           |     |         |       |          |   |         |       |          |       |         |     |          |   |         |     |     |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             |                                                     | FelCor merger costs                                                                                                                                            |                                                                                           |     |         |       |          |   |         |       |          |       |         |     |          |   |         |     |     |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality                                                                                                               |                                                                                           |     |         |       |          |   |         |       |          |       |         |     |          |   |         |     |     |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             |                                                     | Restructuring charge                                                                                                                                           |                                                                                           |     |         |       |          |   |         |       |          |       |         |     |          |   |         |     |     |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |       |          |   |          |       |          |       |          |     |          |   |          |     |     |   |     |    |    |   |      |       |      
|                                        |                             |                                                     | Total operating expenses                                                                                                                                       |                                                                                           |     | 2,706    |       |          |   | 1,104    |       |          |       | 3,723    |     |          |   | 748      |     |     |   | 513 |    |    |   | 581  |       |       |   | 1,340  |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |       |          |   |          |       |          |       |          |     |          |   |          |     |     |   |     |    |    |   |      |       |      
|                                        |                             |                                                     | Net operating income                                                                                                                                           |                                                                                           |     | 1,561    |       |          |   | 68       |       |          |       | 1,484    |     |          |   | (310     | )   |     |   | 429 |    |    |   | (523 | )     |       |   | 106    |  
|                                        |                             |                                                     | Interest expense, net                                                                                                                                          |                                                                                           |     | (33      | )     |          |   | (49      | )     |          |       | (35      | )   |          |   | (20      | )   |     |   | (7  | )  |    |   | (32  | )     |       |   | 1,132  |  
|                                        |                             |                                                     | Equity in income from consolidated entities                                                                                                                    |                                                                                           |     |         |       |          |   |         |       |          |       |         |     |          |   |         |     |     |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |       |          |   |          |       |          |       |          |     |          |   |          |     |     |   |     |    |    |   |      |       |      
|                                        |                             |                                                     | Income (loss) from continuing operations before minority interests,
income tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                                                                           |     | 1,594    |       |          |   | 117      |       |          |       | 1,519    |     |          |   | (290     | )   |     |   | 436 |    |    |   | (491 | )     |       |   | (1,026 | )
|                                        |                             |                                                     | Minority interests                                                                                                                                             |                                                                                           |     |         |       |          |   |         |       |          |       |         |     |          |   |         |     |     |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |       |          |   |          |       |          |       |          |     |          |   |          |     |     |   |     |    |    |   |      |       |      
|                                        |                             |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                                                                           |     | 1,594    |       |          |   | 117      |       |          |       | 1,519    |     |          |   | (290     | )   |     |   | 436 |    |    |   | (491 | )     |       |   | (1,026 | )
|                                        |                             |                                                     | Income tax benefit                                                                                                                                             |                                                                                           |     |         |       |          |   |         |       |          |       |         |     |          |   |         |     |     |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |       |          |   |          |       |          |       |          |     |          |   |          |     |     |   |     |    |    |   |      |       |      
|                                        |                             |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                                                                           |     | 1,594    |       |          |   | 117      |       |          |       | 1,519    |     |          |   | (290     | )   |     |   | 436 |    |    |   | (491 | )     |       |   | (1,026 | )
|                                        |                             |                                                     | Discontinued operations:                                                                                                                                       |                                                                                           |     |          |       |          |   |          |       |          |       |          |     |          |   |          |     |     |   |     |    |    |   |      |       |       |   |        |  
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) from operations of assets sold including loss on disposal
of $6,403 in 2002 |     |          |      |          |   |          |      |          |       |          |    |          |   |          |    |     |   |     |   |    |   |      |      |       |   |        |  | 
|                                        |                             |                                                     |                                                                                                                                                                | Income tax benefit                                                                        |     |          |      |          |   |          |      |          |       |          |    |          |   |          |    |     |   |     |   |    |   |      |      |       |   |        |  | 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |       |          |   |          |       |          |       |          |     |          |   |          |     |     |   |     |    |    |   |      |       |      
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations                                                  |     |          |      |          |   |          |      |          |       |          |    |          |   |          |    |     |   |     |   |    |   |      |      |       |   |        |  | 
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                                                                           |     |         |       |          |   |         |       |          |       |         |     |          |   |         |     |     |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                                                                           |     |         |       |          |   |         |       |          |       |         |     |          |   |         |     |     |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |       |          |   |          |       |          |       |          |     |          |   |          |     |     |   |     |    |    |   |      |       |      
|                                        |                             |                                                     | Net income (loss)                                                                                                                                              |                                                                                           |     | 1,594    |       |          |   | 117      |       |          |       | 1,519    |     |          |   | (290     | )   |     |   | 436 |    |    |   | (491 | )     |       |   | (1,026 | )
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |       |          |   |          |       |          |       |          |     |          |   |          |     |     |   |     |    |    |   |      |       |      





---



##### 



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

|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |           |       |         |   |          |       |          |   |          |       |          |   |       |       |       |   |       |       |       |   |     |   | 
|--------------------------------------- | --------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------- | - | -------- | --- | -------- | - | --------- | ----- | ------- | - | -------- | ----- | -------- | - | -------- | ----- | -------- | - | ----- | ----- | ----- | - | ----- | ----- | ----- | - | --- | - | 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   | MeriStar |     | MeriStar |   |           |       |         |   | MeriStar |       | MeriStar |   | MeriStar |       | MeriStar
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   | Sub 5H,  |     | Sub 7H,  |   | AGH PSSI, |       | Sub 2D, |   | Sub 4F,  |       | Sub 5K,  |   | Sub 5M, 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   | LLC      |     | LLC      |   | Inc.      |       | LLC     |   | L.P.     |       | LLC      |   | LLC     
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |           |       |         |   |          |       |          |   |         
|Revenue:                                |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |           |       |         |   |          |       |          |   |          |       |          |   |       |       |       |   |       |       |      
|                                        | Participating lease revenue |                                                     |                                                                                                                                                                | 2,573                                                                                     |   |          |     | 944      |   |           |       | 1,832   |   |          |       | 1,055    |   |          |       | 1,401    |   |       |       | 1,904 |   |       |       | 1,393 |  
|                                        |                             | Hotel operations:                                   |                                                                                                                                                                |                                                                                           |   |          |     |          |   |           |       |         |   |          |       |          |   |          |       |          |   |       |       |       |   |       |       |       |   |    
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |   |         |     |          |   |          |       |         |   |         |       |          |   |         |       |          |   |      |       |       |   |      |       |       |   |    |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |   |         |     |          |   |          |       |         |   |         |       |          |   |         |       |          |   |      |       |       |   |      |       |       |   |    |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |   |         |     |          |   |          |       |         |   |         |       |          |   |         |       |          |   |      |       |       |   |      |       |       |   |    |  
|                                        |                             | Office rental and other revenues                    |                                                                                                                                                                |                                                                                           |  |          |     |          |  |           |       |         | 2 |          |       |          |  |          |       |          | 8 |       |       |       |  |       |       |       |  |    
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |           |       |         |   |          |       |          |   |          |       |          |   |       |       |       |   |       |       |      
|Total revenue                           |                             |                                                     | 2,573                                                                                                                                                          |                                                                                           |   |          | 944 |          |   |           | 1,834 |         |   |          | 1,055 |          |   |          | 1,409 |          |   |       | 1,904 |       |   |       | 1,393 |      
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |           |       |         |   |          |       |          |   |          |       |          |   |       |       |       |   |       |       |      
|Hotel operating expenses by department: |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |           |       |         |   |          |       |          |   |          |       |          |   |       |       |       |   |       |       |      
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |   |         |     |          |   |          |       |         |   |         |       |          |   |         |       |          |   |      |       |       |   |      |       |       |   |    |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |   |         |     |          |   |          |       |         |   |         |       |          |   |         |       |          |   |      |       |       |   |      |       |       |   |    |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |   |         |     |          |   |          |       |         |   |         |       |          |   |         |       |          |   |      |       |       |   |      |       |       |   |    |  
|                                        |                             | Office rental, parking and other operating expenses |                                                                                                                                                                |                                                                                           |  |          |     |          |  |           |       |         |  |          |       |          |  |          |       |          |  |       |       |       |  |       |       |       |  |    
|Undistributed operating expenses:       |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |           |       |         |   |          |       |          |   |          |       |          |   |       |       |       |   |       |       |      
|                                        |                             |                                                     | Administrative and general                                                                                                                                     |                                                                                           |   | 1        |     |          |   | 1         |       |         |   | 1        |       |          |   | 1        |       |          |   |      |       |       |   | 1     |       |       |   | 1   |  
|                                        |                             |                                                     | Property operating costs                                                                                                                                       |                                                                                           |   |         |     |          |   |          |       |         |   |         |       |          |   |         |       |          |   |      |       |       |   |      |       |       |   |    |  
|                                        |                             |                                                     | Property taxes, insurance and other                                                                                                                            |                                                                                           |   | 534      |     |          |   | 283       |       |         |   | 339      |       |          |   | 185      |       |          |   | 287   |       |       |   | 246   |       |       |   | 221 |  
|                                        |                             |                                                     | Depreciation and amortization                                                                                                                                  |                                                                                           |   | 1,479    |     |          |   | 341       |       |         |   |         |       |          |   | 355      |       |          |   | 840   |       |       |   | 891   |       |       |   | 339 |  
|                                        |                             |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                                                                           |   |          |     |          |   |           |       |         |   |          |       |          |   |          |       |          |   |       |       |       |   |       |       |       |   |     |  
|                                        |                             |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                                                                           |   |         |     |          |   |          |       |         |   |         |       |          |   |         |       |          |   |      |       |       |   |      |       |       |   |    |  
|                                        |                             |                                                     | Loss on asset impairment                                                                                                                                       |                                                                                           |   |         |     |          |   |          |       |         |   |         |       |          |   |         |       |          |   |      |       |       |   |      |       |       |   |    |  
|                                        |                             |                                                     | Write down of deferred costs                                                                                                                                   |                                                                                           |   |         |     |          |   |          |       |         |   |         |       |          |   |         |       |          |   |      |       |       |   |      |       |       |   |    |  
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                                                                           |   |         |     |          |   |          |       |         |   |         |       |          |   |         |       |          |   |      |       |       |   |      |       |       |   |    |  
|                                        |                             |                                                     | FelCor merger costs                                                                                                                                            |                                                                                           |   |         |     |          |   |          |       |         |   |         |       |          |   |         |       |          |   |      |       |       |   |      |       |       |   |    |  
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality                                                                                                               |                                                                                           |   |         |     |          |   |          |       |         |   |         |       |          |   |         |       |          |   |      |       |       |   |      |       |       |   |    |  
|                                        |                             |                                                     | Restructuring charge                                                                                                                                           |                                                                                           |   |         |     |          |   |          |       |         |   |         |       |          |   |         |       |          |   |      |       |       |   |      |       |       |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |           |       |         |   |          |       |          |   |          |       |          |   |       |       |       |   |       |       |      
|                                        |                             |                                                     | Total operating expenses                                                                                                                                       |                                                                                           |   | 2,014    |     |          |   | 625       |       |         |   | 340      |       |          |   | 541      |       |          |   | 1,127 |       |       |   | 1,138 |       |       |   | 561 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |           |       |         |   |          |       |          |   |          |       |          |   |       |       |       |   |       |       |      
|                                        |                             |                                                     | Net operating income                                                                                                                                           |                                                                                           |   | 559      |     |          |   | 319       |       |         |   | 1,494    |       |          |   | 514      |       |          |   | 282   |       |       |   | 766   |       |       |   | 832 |  
|                                        |                             |                                                     | Interest expense, net                                                                                                                                          |                                                                                           |   | (68      | )   |          |   | (18       | )     |         |   | (37      | )     |          |   | 586      |       |          |   | (29   | )     |       |   | (80   | )     |       |   | (16 | )
|                                        |                             |                                                     | Equity in income from consolidated entities                                                                                                                    |                                                                                           |   |         |     |          |   |          |       |         |   |         |       |          |   |         |       |          |   |      |       |       |   |      |       |       |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |           |       |         |   |          |       |          |   |          |       |          |   |       |       |       |   |       |       |      
|                                        |                             |                                                     | Income (loss) from continuing operations before minority interests,
income tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                                                                           |   | 627      |     |          |   | 337       |       |         |   | 1,531    |       |          |   | (72      | )     |          |   | 311   |       |       |   | 846   |       |       |   | 848 |  
|                                        |                             |                                                     | Minority interests                                                                                                                                             |                                                                                           |   |         |     |          |   |          |       |         |   |         |       |          |   |         |       |          |   |      |       |       |   |      |       |       |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |           |       |         |   |          |       |          |   |          |       |          |   |       |       |       |   |       |       |      
|                                        |                             |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                                                                           |   | 627      |     |          |   | 337       |       |         |   | 1,531    |       |          |   | (72      | )     |          |   | 311   |       |       |   | 846   |       |       |   | 848 |  
|                                        |                             |                                                     | Income tax benefit                                                                                                                                             |                                                                                           |   |         |     |          |   |          |       |         |   |         |       |          |   |         |       |          |   |      |       |       |   |      |       |       |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |           |       |         |   |          |       |          |   |          |       |          |   |       |       |       |   |       |       |      
|                                        |                             |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                                                                           |   | 627      |     |          |   | 337       |       |         |   | 1,531    |       |          |   | (72      | )     |          |   | 311   |       |       |   | 846   |       |       |   | 848 |  
|                                        |                             |                                                     | Discontinued operations:                                                                                                                                       |                                                                                           |   |          |     |          |   |           |       |         |   |          |       |          |   |          |       |          |   |       |       |       |   |       |       |       |   |     |  
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) from operations of assets sold including loss on disposal
of $6,403 in 2002 |   |          |    |          |   |           |      |         |   |          |      |          |   |          |      |          |   |       |      |       |   |       |      |       |   |     |  | 
|                                        |                             |                                                     |                                                                                                                                                                | Income tax benefit                                                                        |   |          |    |          |   |           |      |         |   |          |      |          |   |          |      |          |   |       |      |       |   |       |      |       |   |     |  | 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |           |       |         |   |          |       |          |   |          |       |          |   |       |       |       |   |       |       |      
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations                                                  |   |          |    |          |   |           |      |         |   |          |      |          |   |          |      |          |   |       |      |       |   |       |      |       |   |     |  | 
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                                                                           |   |         |     |          |   |          |       |         |   |         |       |          |   |         |       |          |   |      |       |       |   |      |       |       |   |    |  
|                                        |                             |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                                                                           |   |         |     |          |   |          |       |         |   |         |       |          |   |         |       |          |   |      |       |       |   |      |       |       |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |           |       |         |   |          |       |          |   |          |       |          |   |       |       |       |   |       |       |      
|                                        |                             |                                                     | Net income (loss)                                                                                                                                              |                                                                                           |   | 627      |     |          |   | 337       |       |         |   | 1,531    |       |          |   | (72      | )     |          |   | 311   |       |       |   | 846   |       |       |   | 848 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |           |       |         |   |          |       |          |   |          |       |          |   |       |       |       |   |       |       |      





---



##### 



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



|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |    |       |       |       |    |       |       |       |    |       |   | 
|--------------------------------------- | --------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------- | - | -------- | --- | -------- | - | -------- | ----- | -------- | - | -------- | --- | -------- | - | -------- | ----- | ----- | -- | ----- | ----- | ----- | -- | ----- | ----- | ----- | -- | ----- | - | 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   | MeriStar |     | MeriStar |   | MeriStar |       | MeriStar |   | MeriStar |     | MeriStar |   | MeriStar
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   | Sub 1E,  |     | Sub 5O,  |   | Sub 6M   |       | Sub 4B,  |   | Sub 6C,  |     | Sub 2C,  |   | Sub 4G, 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   | L.P.     |     | LLC      |   | Company  |       | L.P.     |   | LLC      |     | LLC      |   | L.P.    
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |          |       |          |   |          |     |          |   |         
|Revenue:                                |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |    |       |       |       |    |       |       |      
|                                        | Participating lease revenue |                                                     |                                                                                                                                                                | 1,319                                                                                     |   |          |     | 606      |   |          |       | 3,363    |   |          |     | 138      |   |          |       | 2,217 |    |       |       | 1,245 |    |       |       | 1,803 |   
|                                        |                             | Hotel operations:                                   |                                                                                                                                                                |                                                                                           |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |    |       |       |       |    |       |       |       |    |      
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             | Office rental and other revenues                    |                                                                                                                                                                |                                                                                           |  |          |     |          |  |          |       |          |  |          |     |          |  |          |       |       | 12 |       |       |       | 37 |       |       |       | 18 |      
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |    |       |       |       |    |       |       |      
|Total revenue                           |                             |                                                     | 1,319                                                                                                                                                          |                                                                                           |   |          | 606 |          |   |          | 3,363 |          |   |          | 138 |          |   |          | 2,229 |       |    |       | 1,282 |       |    |       | 1,821 |      
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |    |       |       |       |    |       |       |      
|Hotel operating expenses by department: |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |    |       |       |       |    |       |       |      
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             | Office rental, parking and other operating expenses |                                                                                                                                                                |                                                                                           |  |          |     |          |  |          |       |          |  |          |     |          |  |          |       |       |   |       |       |       |   |       |       |       |   |      
|Undistributed operating expenses:       |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |    |       |       |       |    |       |       |      
|                                        |                             |                                                     | Administrative and general                                                                                                                                     |                                                                                           |   | 1        |     |          |   | 1        |       |          |   | 1        |     |          |   |         |       |       |    | 1     |       |       |    | 1     |       |       |    | 1     |  
|                                        |                             |                                                     | Property operating costs                                                                                                                                       |                                                                                           |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             |                                                     | Property taxes, insurance and other                                                                                                                            |                                                                                           |   | 114      |     |          |   | 94       |       |          |   | 218      |     |          |   | 274      |       |       |    | 155   |       |       |    | 430   |       |       |    | 409   |  
|                                        |                             |                                                     | Depreciation and amortization                                                                                                                                  |                                                                                           |   | 223      |     |          |   | 164      |       |          |   | 905      |     |          |   | 414      |       |       |    | 585   |       |       |    | 777   |       |       |    | 687   |  
|                                        |                             |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                                                                           |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                                                                           |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             |                                                     | Loss on asset impairment                                                                                                                                       |                                                                                           |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             |                                                     | Write down of deferred costs                                                                                                                                   |                                                                                           |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                                                                           |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             |                                                     | FelCor merger costs                                                                                                                                            |                                                                                           |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality                                                                                                               |                                                                                           |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             |                                                     | Restructuring charge                                                                                                                                           |                                                                                           |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |    |       |       |       |    |       |       |      
|                                        |                             |                                                     | Total operating expenses                                                                                                                                       |                                                                                           |   | 338      |     |          |   | 259      |       |          |   | 1,124    |     |          |   | 688      |       |       |    | 741   |       |       |    | 1,208 |       |       |    | 1,097 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |    |       |       |       |    |       |       |      
|                                        |                             |                                                     | Net operating income                                                                                                                                           |                                                                                           |   | 981      |     |          |   | 347      |       |          |   | 2,239    |     |          |   | (550     | )     |       |    | 1,488 |       |       |    | 74    |       |       |    | 724   |  
|                                        |                             |                                                     | Interest expense, net                                                                                                                                          |                                                                                           |   | (13      | )   |          |   | (6       | )     |          |   | (18      | )   |          |   | (194     | )     |       |    | (31   | )     |       |    | 1,012 |       |       |    | (20   | )
|                                        |                             |                                                     | Equity in income from consolidated entities                                                                                                                    |                                                                                           |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |    |       |       |       |    |       |       |      
|                                        |                             |                                                     | Income (loss) from continuing operations before minority interests,
income tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                                                                           |   | 994      |     |          |   | 353      |       |          |   | 2,257    |     |          |   | (356     | )     |       |    | 1,519 |       |       |    | (938  | )     |       |    | 744   |  
|                                        |                             |                                                     | Minority interests                                                                                                                                             |                                                                                           |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |    |       |       |       |    |       |       |      
|                                        |                             |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                                                                           |   | 994      |     |          |   | 353      |       |          |   | 2,257    |     |          |   | (356     | )     |       |    | 1,519 |       |       |    | (938  | )     |       |    | 744   |  
|                                        |                             |                                                     | Income tax benefit                                                                                                                                             |                                                                                           |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |    |       |       |       |    |       |       |      
|                                        |                             |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                                                                           |   | 994      |     |          |   | 353      |       |          |   | 2,257    |     |          |   | (356     | )     |       |    | 1,519 |       |       |    | (938  | )     |       |    | 744   |  
|                                        |                             |                                                     | Discontinued operations:                                                                                                                                       |                                                                                           |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |    |       |       |       |    |       |       |       |    |       |  
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) from operations of assets sold including loss on disposal
of $6,403 in 2002 |   |          |    |          |   |          |      |          |   |          |    |          |   |          |      |       |    |       |      |       |    |       |      |       |    |       |  | 
|                                        |                             |                                                     |                                                                                                                                                                | Income tax benefit                                                                        |   |          |    |          |   |          |      |          |   |          |    |          |   |          |      |       |    |       |      |       |    |       |      |       |    |       |  | 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |    |       |       |       |    |       |       |      
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations                                                  |   |          |    |          |   |          |      |          |   |          |    |          |   |          |      |       |    |       |      |       |    |       |      |       |    |       |  | 
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                                                                           |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                                                                           |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |    |       |       |       |    |       |       |      
|                                        |                             |                                                     | Net income (loss)                                                                                                                                              |                                                                                           |   | 994      |     |          |   | 353      |       |          |   | 2,257    |     |          |   | (356     | )     |       |    | 1,519 |       |       |    | (938  | )     |       |    | 744   |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |    |       |       |       |    |       |       |      





---



##### 



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

|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |    |          |       |          |    |          |     |          |   |          |       |          |   |          |       |       |   |       |       |       |    |       |       |       |   |       |   | 
|--------------------------------------- | --------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------- | -- | -------- | ----- | -------- | -- | -------- | --- | -------- | - | -------- | ----- | -------- | - | -------- | ----- | ----- | - | ----- | ----- | ----- | -- | ----- | ----- | ----- | - | ----- | - | 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |    | MeriStar |       | MeriStar |    | MeriStar |     | MeriStar |   | MeriStar |       | MeriStar |   | MeriStar
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |    | Sub 3B,  |       | Sub 5G   |    | Sub 5P,  |     | Sub 5J,  |   | Sub 5Q,  |       | Sub 5R,  |   | Sub 8D, 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |    | LLC      |       | L.P.     |    | LLC      |     | LLC      |   | LLC      |       | LLC      |   | LLC     
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |    |          |       |          |    |          |     |          |   |          |       |          |   |         
|Revenue:                                |                             |                                                     |                                                                                                                                                                |                                                                                           |    |          |       |          |    |          |     |          |   |          |       |          |   |          |       |       |   |       |       |       |    |       |       |      
|                                        | Participating lease revenue |                                                     |                                                                                                                                                                | 843                                                                                       |    |          |       | 8,446    |    |          |     | 450      |   |          |       | 7,157    |   |          |       | 1,555 |   |       |       | 4,418 |    |       |       | 1,737 |  
|                                        |                             | Hotel operations:                                   |                                                                                                                                                                |                                                                                           |    |          |       |          |    |          |     |          |   |          |       |          |   |          |       |       |   |       |       |       |    |       |       |       |   |      
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |    |         |       |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |    |         |       |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |    |         |       |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             | Office rental and other revenues                    |                                                                                                                                                                |                                                                                           | 19 |          |       |          | 47 |          |     |          |  |          |       |          |  |          |       |       |  |       |       |       | 90 |       |       |       |  |      
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |    |          |       |          |    |          |     |          |   |          |       |          |   |          |       |       |   |       |       |       |    |       |       |      
|Total revenue                           |                             |                                                     | 862                                                                                                                                                            |                                                                                           |    |          | 8,493 |          |    |          | 450 |          |   |          | 7,157 |          |   |          | 1,555 |       |   |       | 4,508 |       |    |       | 1,737 |      
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |    |          |       |          |    |          |     |          |   |          |       |          |   |          |       |       |   |       |       |       |    |       |       |      
|Hotel operating expenses by department: |                             |                                                     |                                                                                                                                                                |                                                                                           |    |          |       |          |    |          |     |          |   |          |       |          |   |          |       |       |   |       |       |       |    |       |       |      
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |    |         |       |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |    |         |       |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |    |         |       |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             | Office rental, parking and other operating expenses |                                                                                                                                                                |                                                                                           |   |          |       |          |   |          |     |          |  |          |       |          |  |          |       |       |  |       |       |       |   |       |       |       |  |      
|Undistributed operating expenses:       |                             |                                                     |                                                                                                                                                                |                                                                                           |    |          |       |          |    |          |     |          |   |          |       |          |   |          |       |       |   |       |       |       |    |       |       |      
|                                        |                             |                                                     | Administrative and general                                                                                                                                     |                                                                                           |    | 1        |       |          |    | 2        |     |          |   |         |       |          |   | 1        |       |       |   | 1     |       |       |    | 1     |       |       |   | 1     |  
|                                        |                             |                                                     | Property operating costs                                                                                                                                       |                                                                                           |    |         |       |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             |                                                     | Property taxes, insurance and other                                                                                                                            |                                                                                           |    | 243      |       |          |    | 1,380    |     |          |   | 12       |       |          |   | 1,169    |       |       |   | 198   |       |       |    | 473   |       |       |   | 316   |  
|                                        |                             |                                                     | Depreciation and amortization                                                                                                                                  |                                                                                           |    | 691      |       |          |    | 4,643    |     |          |   | 2        |       |          |   | 2,604    |       |       |   | 360   |       |       |    | 1,055 |       |       |   | 951   |  
|                                        |                             |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                                                                           |    |         |       |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                                                                           |    |         |       |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             |                                                     | Loss on asset impairment                                                                                                                                       |                                                                                           |    |         |       |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             |                                                     | Write down of deferred costs                                                                                                                                   |                                                                                           |    |         |       |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                                                                           |    |         |       |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             |                                                     | FelCor merger costs                                                                                                                                            |                                                                                           |    |         |       |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality                                                                                                               |                                                                                           |    |         |       |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             |                                                     | Restructuring charge                                                                                                                                           |                                                                                           |    |         |       |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |    |          |       |          |    |          |     |          |   |          |       |          |   |          |       |       |   |       |       |       |    |       |       |      
|                                        |                             |                                                     | Total operating expenses                                                                                                                                       |                                                                                           |    | 935      |       |          |    | 6,025    |     |          |   | 14       |       |          |   | 3,774    |       |       |   | 559   |       |       |    | 1,529 |       |       |   | 1,268 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |    |          |       |          |    |          |     |          |   |          |       |          |   |          |       |       |   |       |       |       |    |       |       |      
|                                        |                             |                                                     | Net operating income                                                                                                                                           |                                                                                           |    | (73      | )     |          |    | 2,468    |     |          |   | 436      |       |          |   | 3,383    |       |       |   | 996   |       |       |    | 2,979 |       |       |   | 469   |  
|                                        |                             |                                                     | Interest expense, net                                                                                                                                          |                                                                                           |    | (31      | )     |          |    | (107     | )   |          |   |         |       |          |   | (99      | )     |       |   | (72   | )     |       |    | 2,074 |       |       |   | (16   | )
|                                        |                             |                                                     | Equity in income from consolidated entities                                                                                                                    |                                                                                           |    |         |       |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |    |          |       |          |    |          |     |          |   |          |       |          |   |          |       |       |   |       |       |       |    |       |       |      
|                                        |                             |                                                     | Income (loss) from continuing operations before minority interests,
income tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                                                                           |    | (42      | )     |          |    | 2,575    |     |          |   | 436      |       |          |   | 3,482    |       |       |   | 1,068 |       |       |    | 905   |       |       |   | 485   |  
|                                        |                             |                                                     | Minority interests                                                                                                                                             |                                                                                           |    |         |       |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |    |          |       |          |    |          |     |          |   |          |       |          |   |          |       |       |   |       |       |       |    |       |       |      
|                                        |                             |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                                                                           |    | (42      | )     |          |    | 2,575    |     |          |   | 436      |       |          |   | 3,482    |       |       |   | 1,068 |       |       |    | 905   |       |       |   | 485   |  
|                                        |                             |                                                     | Income tax benefit                                                                                                                                             |                                                                                           |    |         |       |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |    |          |       |          |    |          |     |          |   |          |       |          |   |          |       |       |   |       |       |       |    |       |       |      
|                                        |                             |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                                                                           |    | (42      | )     |          |    | 2,575    |     |          |   | 436      |       |          |   | 3,482    |       |       |   | 1,068 |       |       |    | 905   |       |       |   | 485   |  
|                                        |                             |                                                     | Discontinued operations:                                                                                                                                       |                                                                                           |    |          |       |          |    |          |     |          |   |          |       |          |   |          |       |       |   |       |       |       |    |       |       |       |   |       |  
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) from operations of assets sold including loss on disposal
of $6,403 in 2002 |    |          |      |          |    |          |    |          |   |          |      |          |   |          |      |       |   |       |      |       |    |       |      |       |   |       |  | 
|                                        |                             |                                                     |                                                                                                                                                                | Income tax benefit                                                                        |    |          |      |          |    |          |    |          |   |          |      |          |   |          |      |       |   |       |      |       |    |       |      |       |   |       |  | 
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |    |          |       |          |    |          |     |          |   |          |       |          |   |          |       |       |   |       |       |       |    |       |       |      
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations                                                  |    |          |      |          |    |          |    |          |   |          |      |          |   |          |      |       |   |       |      |       |    |       |      |       |   |       |  | 
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                                                                           |    |         |       |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                                                                           |    |         |       |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |    |          |       |          |    |          |     |          |   |          |       |          |   |          |       |       |   |       |       |       |    |       |       |      
|                                        |                             |                                                     | Net income (loss)                                                                                                                                              |                                                                                           |    | (42      | )     |          |    | 2,575    |     |          |   | 436      |       |          |   | 3,482    |       |       |   | 1,068 |       |       |    | 905   |       |       |   | 485   |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |    |          |       |          |    |          |     |          |   |          |       |          |   |          |       |       |   |       |       |       |    |       |       |      





---



##### 



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

|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |         |         |       |              |          |              |   |          |         |   |        |         |        |  
|--------------------------------------- | --------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------- | --- | -------- | ------- | ------- | ----- | ------------ | -------- | ------------ | - | -------- | ------- | - | ------ | ------- | ------ | -
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |         |         |       | MeriStar     |          |              |   |          |         |   |        |        
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     | MeriStar |         | Hotel   |       |              |          |              |   |          |         |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     | Sub 4J,  |         | Lessee, |       |              |          |              |   | Total   
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     | LLC      |         | Inc.    |       | Eliminations |          | Consolidated
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |         |         |       |              |          |             
|Revenue:                                |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |         |         |       |              |          |              |   |          |         |  
|                                        | Participating lease revenue |                                                     |                                                                                                                                                                | 2,310                                                                                     |     |          |         |        |       |              |          | (213,649     | ) |          |         |  |       
|                                        |                             | Hotel operations:                                   |                                                                                                                                                                |                                                                                           |     |          |         |         |       |              |          |              |   |          |         |   |        |        
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |     |         |         |         |       | 506,054      |          |              |   |         |         |   |        | 506,054 |       
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |     |         |         |         |       | 189,423      |          |              |   |         |         |   |        | 189,423 |       
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |     |         |         |         |       | 57,715       |          |              |   |         |         |   |        | 57,715  |       
|                                        |                             | Office rental and other revenues                    |                                                                                                                                                                |                                                                                           | 175 |          |         |         | 1,167 |              |          |              |  |          |         |   | 14,282 |        
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |         |         |       |              |          |              |   |          |         |  
|Total revenue                           |                             |                                                     | 2,483                                                                                                                                                          |                                                                                           |     |          | 754,359 |         |       |              | (213,649 | )            |   |          | 767,474 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |         |         |       |              |          |              |   |          |         |  
|Hotel operating expenses by department: |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |         |         |       |              |          |              |   |          |         |  
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                                                                           |     |         |         |         |       | 122,194      |          |              |   |         |         |   |        | 122,194 |       
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                                                                           |     |         |         |         |       | 138,234      |          |              |   |         |         |   |        | 138,234 |       
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                                                                           |     |          |         |         |       | 33,159       |          |              |   |         |         |   |        | 33,159  |       
|                                        |                             | Office rental, parking and other operating expenses |                                                                                                                                                                |                                                                                           | 309 |          |         |         |      |              |          |              |  |          |         |   | 2,372  |        
|Undistributed operating expenses:       |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |         |         |       |              |          |              |   |          |         |  
|                                        |                             |                                                     | Administrative and general                                                                                                                                     |                                                                                           |     | 5        |         |         |       | 121,615      |          |              |   |         |         |   |        | 129,098 |       
|                                        |                             |                                                     | Property operating costs                                                                                                                                       |                                                                                           |     |         |         |         |       | 118,295      |          |              |   |         |         |   |        | 117,842 |       
|                                        |                             |                                                     | Property taxes, insurance and other                                                                                                                            |                                                                                           |     | 168      |         |         |       | 235,793      |          |              |   | (213,649 | )       |   |        | 52,999  |       
|                                        |                             |                                                     | Depreciation and amortization                                                                                                                                  |                                                                                           |     | 1,007    |         |         |       | 1,221        |          |              |   |         |         |   |        | 91,242  |       
|                                        |                             |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                                                                           |     |          |         |         |       |              |          |              |   |          |         |   |        | 4,211   |       
|                                        |                             |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                                                                           |     |         |         |         |       |             |          |              |   |         |         |   |        |        |       
|                                        |                             |                                                     | Loss on asset impairment                                                                                                                                       |                                                                                           |     |         |         |         |       |             |          |              |   |         |         |   |        |        |       
|                                        |                             |                                                     | Write down of deferred costs                                                                                                                                   |                                                                                           |     |         |         |         |       |             |          |              |   |         |         |   |        | 1,529   |       
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                                                                           |     |         |         |         |       |             |          |              |   |         |         |   |        | 4,735   |       
|                                        |                             |                                                     | FelCor merger costs                                                                                                                                            |                                                                                           |     |         |         |         |       |             |          |              |   |         |         |   |        |        |       
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality                                                                                                               |                                                                                           |     |         |         |         |       |             |          |              |   |         |         |   |        |        |       
|                                        |                             |                                                     | Restructuring charge                                                                                                                                           |                                                                                           |     |         |         |         |       |             |          |              |   |         |         |   |        |         |       
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |         |         |       |              |          |              |   |          |         |  
|                                        |                             |                                                     | Total operating expenses                                                                                                                                       |                                                                                           |     | 1,489    |         |         |       | 770,511      |          |              |   | (213,649 | )       |   |        | 697,615 |       
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |         |         |       |              |          |              |   |          |         |  
|                                        |                             |                                                     | Net operating income                                                                                                                                           |                                                                                           |     | 994      |         |         |       | (16,152      | )        |              |   |         |         |   |        | 69,859  |       
|                                        |                             |                                                     | Interest expense, net                                                                                                                                          |                                                                                           |     | (46      | )       |         |       | (3           | )        |              |   |         |         |   |        | 102,543 |       
|                                        |                             |                                                     | Equity in income from consolidated entities                                                                                                                    |                                                                                           |     |         |         |         |       |             |          |              |   | 55,165   |         |   |        |        |       
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |         |         |       |              |          |              |   |          |         |  
|                                        |                             |                                                     | Income (loss) from continuing operations before minority interests,
income tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                                                                           |     | 1,040    |         |         |       | (16,149      | )        |              |   | (55,165  | )       |   |        | (32,684 | )     
|                                        |                             |                                                     | Minority interests                                                                                                                                             |                                                                                           |     |         |         |         |       |             |          |              |   |         |         |   |        | (10     | )     
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |         |         |       |              |          |              |   |          |         |  
|                                        |                             |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                                                                           |     | 1,040    |         |         |       | (16,149      | )        |              |   | (55,165  | )       |   |        | (32,674 | )     
|                                        |                             |                                                     | Income tax benefit                                                                                                                                             |                                                                                           |     |         |         |         |       |             |          |              |   |         |         |   |        | (754    | )     
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |         |         |       |              |          |              |   |          |         |  
|                                        |                             |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                                                                           |     | 1,040    |         |         |       | (16,149      | )        |              |   | (55,165  | )       |   |        | (31,920 | )     
|                                        |                             |                                                     | Discontinued operations:                                                                                                                                       |                                                                                           |     |          |         |         |       |              |          |              |   |          |         |   |        |         |       
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) from operations of assets sold including loss on disposal of $6,403 in 2002 |     |          |        |         |       |              | (897     | )            |   |          |        |   |        |         | (5,768 | )
|                                        |                             |                                                     |                                                                                                                                                                | Income tax benefit                                                                        |     |          |        |         |       |              |          |              |   |          |        |   |        |         | 128    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |         |         |       |              |          |              |   |          |         |  
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations                                                  |     |          |        |         |       |              | (897     | )            |   |          |        |   |        |         | (5,640 | )
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                                                                           |     |         |         |         |       |             |          |              |   |         |         |   |        |        |       
|                                        |                             |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                                                                           |     |         |         |         |       |             |          |              |   |         |         |   |        |        |       
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |         |         |       |              |          |              |   |          |         |  
|                                        |                             |                                                     | Net income (loss)                                                                                                                                              |                                                                                           |     | 1,040    |         |         |       | (17,046      | )        |              |   | (55,165  | )       |   |        | (37,560 | )     
|                                        |                             |                                                     |                                                                                                                                                                |                                                                                           |     |          |         |         |       |              |          |              |   |          |         |  





---



##### 



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



|                                               |                                                                                                    |                                                   |                                                          |          |                 |         |               |         |              |         |             |   |              |   |              |   |              |   |   |     |    |      |   |        |       |        |   |      |     |      |  
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- | ------------------------------------------------- | -------------------------------------------------------- | -------- | --------------- | ------- | ------------- | ------- | ------------ | ------- | ----------- | - | ------------ | - | ------------ | - | ------------ | - | - | --- | -- | ---- | - | ------ | ----- | ------ | - | ---- | --- | ---- | -
|                                               |                                                                                                    |                                                   |                                                          |          | MeriStar        |         |               |         |              |         |             |   |              |   |              |   |              |   |   |     |    |      |   |        |       |        |   |      |    
|                                               |                                                                                                    |                                                   |                                                          |          | Hospitality OP, |         | Non-Guarantor |         | MeriStar Sub |         | AGH Upreit, |   | MeriStar Sub |   | MeriStar Sub |   | MeriStar Sub
|                                               |                                                                                                    |                                                   |                                                          |          | L.P.            |         | Subsidiaries  |         | 7C, LLC      |         | LLC         |   | 5N, LLC      |   | 8A, LLC      |   | 8F, L.P.    
|                                               |                                                                                                    |                                                   |                                                          |          |                 |         |               |         |              |         |             |   |              |   |              |   |             
|Cash flows from operating activities:          |                                                                                                    |                                                   |                                                          |          |                 |         |               |         |              |         |             |   |              |   |              |   |              |   |   |     |    |      |   |        |       |        |   |     
|                                               | Net Income (loss)                                                                                  |                                                   |                                                          | (37,560  | )               |         |               | 32,934  |              |         |             |  |              |   |              |  |              |   |   | 544 |    |      |   | (4,106 | )     |        |   | 834  |    
|                                               | Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities: |                                                   |                                                          |          |                 |         |               |        |              |         |             |   |              |   |              |   |              |   |   |     |    |      |   |        |       |        |   |      |    
|                                               |                                                                                                    | Depreciation and amortization                     |                                                          |          | 7,667           |         |               |         | 40,316       |         |             |   |             |   |              |   |             |   |   |     | 99 |      |   |        | 112   |        |   |      | 339 |     
|                                               |                                                                                                    | Equity in earnings                                |                                                          |          | (55,165         | )       |               |         |             |         |             |   |             |   |              |   |             |   |   |     |   |      |   |        |      |        |   |      |    |     
|                                               |                                                                                                    | Loss on fair value of non-hedging derivatives     |                                                          |          | 4,735           |         |               |         |             |         |             |   |             |   |              |   |             |   |   |     |   |      |   |        |      |        |   |      |    |     
|                                               |                                                                                                    | Loss on sale of assets, before tax effect         |                                                          |          |                |         |               |         | 13           |         |             |   |             |   |              |   |             |   |   |     |   |      |   |        | 4,812 |        |   |      |    |     
|                                               |                                                                                                    | Write off of deferred financing costs             |                                                          |          | 1,529           |         |               |         |             |         |             |   |             |   |              |   |             |   |   |     |   |      |   |        |      |        |   |      |    |     
|                                               |                                                                                                    | Minority interests                                |                                                          |          | (10             | )       |               |         |             |         |             |   |             |   |              |   |             |   |   |     |   |      |   |        |      |        |   |      |    |     
|                                               |                                                                                                    | Amortization of unearned stock based compensation |                                                          |          | 3,041           |         |               |         |             |         |             |   |             |   |              |   |             |   |   |     |   |      |   |        |      |        |   |      |    |     
|                                               |                                                                                                    | Interest rate swaps marked to fair value          |                                                          |          | (4,787          | )       |               |         |              |         |             |   |              |   |              |   |              |   |   |     |    |      |   |        |       |        |   |      |     |     
|                                               |                                                                                                    | Deferred income taxes                             |                                                          |          | (644            | )       |               |         |             |         |             |   |             |   |              |   |             |   |   |     |   |      |   |        |      |        |   |      | (96 | )   
|                                               |                                                                                                    | Changes in operating assets and liabilities:      |                                                          |          |                 |         |               |         |              |         |             |   |              |   |              |   |              |   |   |     |    |      |   |        |       |        |   |      |     |     
|                                               |                                                                                                    |                                                   | Accounts receivable, net                                 |          |                 | (5,770  | )             |         |              | (57     | )           |   |              |  |              |   |              |  |   |     |    | (16  | ) |        |       | (15    | ) |      |     | 8    |  
|                                               |                                                                                                    |                                                   | Prepaid expenses and other                               |          |                 | (4,272  | )             |         |              | (477    | )           |   |              |  |              |   |              |  |   |     |    |     |   |        |       |       |   |      |     | 19   |  
|                                               |                                                                                                    |                                                   | Due from/to Interstate Hotels                            |          |                 | 4,378   |               |         |              |        |             |   |              |  |              |   |              |  |   |     |    |     |   |        |       |       |   |      |     |     |  
|                                               |                                                                                                    |                                                   | Accounts payable, accrued expenses and other liabilities |          |                 | (4,316  | )             |         |              | (1,848  | )           |   |              |  |              |   |              |  |   |     |    | 35   |   |        |       | 6      |   |      |     | 8    |  
|                                               |                                                                                                    |                                                   | Accrued interest                                         |          |                 | (3,619  | )             |         |              | (342    | )           |   |              |  |              |   |              |  |   |     |    |     |   |        |       |       |   |      |     |     |  
|                                               |                                                                                                    |                                                   | Due from subsidiaries                                    |          |                 | 131,389 |               |         |              | (53,113 | )           |   |              |  |              |   |              |  |   |     |    | (631 | ) |        |       | (2,463 | ) |      |     | (994 | )
|                                               |                                                                                                    |                                                   | Income taxes payable                                     |          |                 | (629    | )             |         |              |        |             |   |              |  |              |   |              |  |   |     |    |     |   |        |       |       |   |      |     |     |  
|                                               |                                                                                                    |                                                   |                                                          |          |                 |         |               |         |              |         |             |   |              |   |              |   |              |   |   |     |    |      |   |        |       |        |   |     
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) operating activities      |          |                 | 35,969  |               |         |              | 17,426  |             |   |              |  |              |   |              |  |   |     |    | 31   |   |        |       | (1,654 | ) |      |     | 118  |  
|                                               |                                                                                                    |                                                   |                                                          |          |                 |         |               |         |              |         |             |   |              |   |              |   |              |   |   |     |    |      |   |        |       |        |   |     
|Cash flows from investing activities:          |                                                                                                    |                                                   |                                                          |          |                 |         |               |         |              |         |             |   |              |   |              |   |              |   |   |     |    |      |   |        |       |        |   |     
|                                               | Investment in hotel properties, net                                                                |                                                   |                                                          | (837     | )               |         |               | (11,424 | )            |         |             |  |              |   |              |  |              |   |   | (31 | )  |      |   | (4,616 | )     |        |   | (118 | )  
|                                               | Proceeds from disposition of assets                                                                |                                                   |                                                          |         |                 |         |               | 7,280   |              |         |             |  |              |   |              |  |              |   |   |    |    |      |   | 6,270  |       |        |   |     |    
|                                               | Repayments of note receivable                                                                      |                                                   |                                                          | (7,000   | )               |         |               | 678     |              |         |             |  |              |   |              |  |              |   |   |    |    |      |   |       |       |        |   |     |    
|                                               | Change in restricted cash                                                                          |                                                   |                                                          | 2,513    |                 |         |               | 2,348   |              |         |             |  |              |   |              |  |              |   |   |    |    |      |   |       |       |        |   |     |    
|                                               |                                                                                                    |                                                   |                                                          |          |                 |         |               |         |              |         |             |   |              |   |              |   |              |   |   |     |    |      |   |        |       |        |   |     
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) investing activities      |          |                 | (5,324  | )             |         |              | (1,118  | )           |   |              |  |              |   |              |  |   |     |    | (31  | ) |        |       | 1,654  |   |      |     | (118 | )
|                                               |                                                                                                    |                                                   |                                                          |          |                 |         |               |         |              |         |             |   |              |   |              |   |              |   |   |     |    |      |   |        |       |        |   |     
|Cash flows from financing activities:          |                                                                                                    |                                                   |                                                          |          |                 |         |               |         |              |         |             |   |              |   |              |   |              |   |   |     |    |      |   |        |       |        |   |     
|                                               | Deferred financing costs                                                                           |                                                   |                                                          | (3,416   | )               |         |               |        |              |         |             |  |              |   |              |  |              |   |   |    |    |      |   |       |       |        |   |     |    
|                                               | Proceeds from issuances mortgages and notes payable                                                |                                                   |                                                          | 269,638  |                 |         |               |        |              |         |             |  |              |   |              |  |              |   |   |    |    |      |   |       |       |        |   |     |    
|                                               | Principal payments on mortgages and notes payable                                                  |                                                   |                                                          | (297,310 | )               |         |               | (16,308 | )            |         |             |  |              |   |              |  |              |   |   |    |    |      |   |       |       |        |   |     |    
|                                               | Repurchase of units                                                                                |                                                   |                                                          | (1,193   | )               |         |               |        |              |         |             |  |              |   |              |  |              |   |   |    |    |      |   |       |       |        |   |     |    
|                                               | Contributions from partners                                                                        |                                                   |                                                          | 3,156    |                 |         |               |        |              |         |             |  |              |   |              |  |              |   |   |    |    |      |   |       |       |        |   |     |    
|                                               | Distributions paid to partners                                                                     |                                                   |                                                          | (2,467   | )               |         |               |        |              |         |             |  |              |   |              |  |              |   |   |    |    |      |   |       |       |        |   |     |    
|                                               |                                                                                                    |                                                   |                                                          |          |                 |         |               |         |              |         |             |   |              |   |              |   |              |   |   |     |    |      |   |        |       |        |   |     
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) financing activities      |          |                 | (31,592 | )             |         |              | (16,308 | )           |   |              |  |              |   |              |  |   |     |    |     |   |        |       |       |   |      |     |     |  
|                                               |                                                                                                    |                                                   |                                                          |          |                 |         |               |         |              |         |             |   |              |   |              |   |              |   |   |     |    |      |   |        |       |        |   |     
|Effect of exchange rate changes on cash        |                                                                                                    |                                                   | (9                                                       | )        |                 |         |              |         |              |         |            |   |              |   |             |   |              |   |  |     |    |      |  |        |       |        |  |     
|                                               |                                                                                                    |                                                   |                                                          |          |                 |         |               |         |              |         |             |   |              |   |              |   |              |   |   |     |    |      |   |        |       |        |   |     
|Net change in cash                             |                                                                                                    |                                                   | (958                                                     | )        |                 |         |              |         |              |         |            |   |              |   |             |   |              |   |  |     |    |      |  |        |       |        |  |     
|Cash and cash equivalents, beginning of period |                                                                                                    |                                                   | 6,798                                                    |          |                 |         |              |         |              |         |            |   |              |   |             |   |              |   |  |     |    |      |  |        |       |        |  |     
|                                               |                                                                                                    |                                                   |                                                          |          |                 |         |               |         |              |         |             |   |              |   |              |   |              |   |   |     |    |      |   |        |       |        |   |     
|Cash and cash equivalents, end of period       |                                                                                                    |                                                   | 5,840                                                    |          |                 |         |              |         |              |         |            |   |              |   |             |   |              |   |  |     |    |      |  |        |       |        |  |     
|                                               |                                                                                                    |                                                   |                                                          |          |                 |         |               |         |              |         |             |   |              |   |              |   |              |   |   |     |    |      |   |        |       |        |   |     



---



##### 



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

|                                               |                                                                                                    |                                                   |                                                          |   |          |   |              |     |              |        |              |       |              |        |              |      |              |      |   |      |     |      |   |     |     |      |   |      |     |      |  
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- | ------------------------------------------------- | -------------------------------------------------------- | - | -------- | - | ------------ | --- | ------------ | ------ | ------------ | ----- | ------------ | ------ | ------------ | ---- | ------------ | ---- | - | ---- | --- | ---- | - | --- | --- | ---- | - | ---- | --- | ---- | -
|                                               |                                                                                                    |                                                   |                                                          |   | MeriStar |   | MeriStar Sub |     | MeriStar Sub |        | MeriStar Sub |       | MeriStar Sub |        | MeriStar Sub |      | MeriStar Sub
|                                               |                                                                                                    |                                                   |                                                          |   | 8G, LLC  |   | 6H, L.P.     |     | 8B, LLC      |        | 1C, L.P.     |       | 8E, LLC      |        | 7F, LLC      |      | 5L, LLC     
|                                               |                                                                                                    |                                                   |                                                          |   |          |   |              |     |              |        |              |       |              |        |              |      |             
|Cash flows from operating activities:          |                                                                                                    |                                                   |                                                          |   |          |   |              |     |              |        |              |       |              |        |              |      |              |      |   |      |     |      |   |     |     |      |   |     
|                                               | Net Income (loss)                                                                                  |                                                   |                                                          |  |          |   |              | 766 |              |        |              | 2,524 |              |        |              | (328 | )            |      |   | 643  |     |      |   | 431 |     |      |   | 591  |    
|                                               | Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities: |                                                   |                                                          |   |          |   |              |     |              |        |              |       |              |        |              |      |              |      |   |      |     |      |   |     |     |      |   |      |    
|                                               |                                                                                                    | Depreciation and amortization                     |                                                          |   |         |   |              |     | 323          |        |              |       | 1,785        |        |              |      | 767          |      |   |      | 448 |      |   |     | 348 |      |   |      | 101 |     
|                                               |                                                                                                    | Equity in earnings                                |                                                          |   |         |   |              |     |             |        |              |       |             |        |              |      |             |      |   |      |    |      |   |     |    |      |   |      |    |     
|                                               |                                                                                                    | Loss on fair value of non-hedging derivatives     |                                                          |   |         |   |              |     |             |        |              |       |             |        |              |      |             |      |   |      |    |      |   |     |    |      |   |      |    |     
|                                               |                                                                                                    | Loss on sale of assets, before tax effect         |                                                          |   |         |   |              |     |             |        |              |       |             |        |              |      |             |      |   |      |    |      |   |     |    |      |   |      |    |     
|                                               |                                                                                                    | Write off of deferred financing costs             |                                                          |   |         |   |              |     |             |        |              |       |             |        |              |      |             |      |   |      |    |      |   |     |    |      |   |      |    |     
|                                               |                                                                                                    | Minority interests                                |                                                          |   |         |   |              |     |             |        |              |       |             |        |              |      |             |      |   |      |    |      |   |     |    |      |   |      |    |     
|                                               |                                                                                                    | Amortization of unearned stock based compensation |                                                          |   |         |   |              |     |             |        |              |       |             |        |              |      |             |      |   |      |    |      |   |     |    |      |   |      |    |     
|                                               |                                                                                                    | Interest rate swaps marked to fair value          |                                                          |   |          |   |              |     |             |        |              |       |             |        |              |      |             |      |   |      |    |      |   |     |    |      |   |      |    |     
|                                               |                                                                                                    | Deferred income taxes                             |                                                          |   |         |   |              |     |             |        |              |       |             |        |              |      |             |      |   |      |    |      |   |     |    |      |   |      |    |     
|                                               |                                                                                                    | Changes in operating assets and liabilities:      |                                                          |   |          |   |              |     |              |        |              |       |              |        |              |      |              |      |   |      |     |      |   |     |     |      |   |      |     |     
|                                               |                                                                                                    |                                                   | Accounts receivable, net                                 |   |          |  |              |     |              |       |              |       |              |       |              |      |              |     |   |      |     |     |   |     |     |     |   |      |     |     |  
|                                               |                                                                                                    |                                                   | Prepaid expenses and other                               |   |          |  |              |     |              |       |              |       |              |       |              |      |              | (8   | ) |      |     |     |   |     |     |     |   |      |     |     |  
|                                               |                                                                                                    |                                                   | Due from/to Interstate Hotels                            |   |          |  |              |     |              |       |              |       |              |       |              |      |              |     |   |      |     |     |   |     |     |     |   |      |     |     |  
|                                               |                                                                                                    |                                                   | Accounts payable, accrued expenses and other liabilities |   |          |  |              |     |              | 50     |              |       |              | 228    |              |      |              | 80   |   |      |     | (65  | ) |     |     | 24   |   |      |     | 73   |  
|                                               |                                                                                                    |                                                   | Accrued interest                                         |   |          |  |              |     |              |       |              |       |              |       |              |      |              |     |   |      |     |     |   |     |     |     |   |      |     |     |  
|                                               |                                                                                                    |                                                   | Due from subsidiaries                                    |   |          |  |              |     |              | (1,079 | )            |       |              | (3,721 | )            |      |              | (210 | ) |      |     | (921 | ) |     |     | (769 | ) |      |     | (580 | )
|                                               |                                                                                                    |                                                   | Income taxes payable                                     |   |          |  |              |     |              |       |              |       |              |       |              |      |              |     |   |      |     |     |   |     |     |     |   |      |     |     |  
|                                               |                                                                                                    |                                                   |                                                          |   |          |   |              |     |              |        |              |       |              |        |              |      |              |      |   |      |     |      |   |     |     |      |   |     
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) operating activities      |   |          |  |              |     |              | 60     |              |       |              | 816    |              |      |              | 301  |   |      |     | 105  |   |     |     | 34   |   |      |     | 185  |  
|                                               |                                                                                                    |                                                   |                                                          |   |          |   |              |     |              |        |              |       |              |        |              |      |              |      |   |      |     |      |   |     |     |      |   |     
|Cash flows from investing activities:          |                                                                                                    |                                                   |                                                          |   |          |   |              |     |              |        |              |       |              |        |              |      |              |      |   |      |     |      |   |     |     |      |   |     
|                                               | Investment in hotel properties, net                                                                |                                                   |                                                          |  |          |   |              | (60 | )            |        |              | (816  | )            |        |              | (301 | )            |      |   | (105 | )   |      |   | (34 | )   |      |   | (185 | )  
|                                               | Proceeds from disposition of assets                                                                |                                                   |                                                          |  |          |   |              |    |              |        |              |      |              |        |              |     |              |      |   |     |     |      |   |    |     |      |   |     |    
|                                               | Repayments of note receivable                                                                      |                                                   |                                                          |  |          |   |              |    |              |        |              |      |              |        |              |     |              |      |   |     |     |      |   |    |     |      |   |     |    
|                                               | Change in restricted cash                                                                          |                                                   |                                                          |  |          |   |              |    |              |        |              |      |              |        |              |     |              |      |   |     |     |      |   |    |     |      |   |     |    
|                                               |                                                                                                    |                                                   |                                                          |   |          |   |              |     |              |        |              |       |              |        |              |      |              |      |   |      |     |      |   |     |     |      |   |     
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) investing activities      |   |          |  |              |     |              | (60    | )            |       |              | (816   | )            |      |              | (301 | ) |      |     | (105 | ) |     |     | (34  | ) |      |     | (185 | )
|                                               |                                                                                                    |                                                   |                                                          |   |          |   |              |     |              |        |              |       |              |        |              |      |              |      |   |      |     |      |   |     |     |      |   |     
|Cash flows from financing activities:          |                                                                                                    |                                                   |                                                          |   |          |   |              |     |              |        |              |       |              |        |              |      |              |      |   |      |     |      |   |     |     |      |   |     
|                                               | Deferred financing costs                                                                           |                                                   |                                                          |  |          |   |              |    |              |        |              |      |              |        |              |     |              |      |   |     |     |      |   |    |     |      |   |     |    
|                                               | Proceeds from issuances mortgages and notes payable                                                |                                                   |                                                          |  |          |   |              |    |              |        |              |      |              |        |              |     |              |      |   |     |     |      |   |    |     |      |   |     |    
|                                               | Principal payments on mortgages and notes payable                                                  |                                                   |                                                          |  |          |   |              |    |              |        |              |      |              |        |              |     |              |      |   |     |     |      |   |    |     |      |   |     |    
|                                               | Repurchase of units                                                                                |                                                   |                                                          |  |          |   |              |    |              |        |              |      |              |        |              |     |              |      |   |     |     |      |   |    |     |      |   |     |    
|                                               | Contributions from partners                                                                        |                                                   |                                                          |  |          |   |              |    |              |        |              |      |              |        |              |     |              |      |   |     |     |      |   |    |     |      |   |     |    
|                                               | Distributions paid to partners                                                                     |                                                   |                                                          |  |          |   |              |    |              |        |              |      |              |        |              |     |              |      |   |     |     |      |   |    |     |      |   |     |    
|                                               |                                                                                                    |                                                   |                                                          |   |          |   |              |     |              |        |              |       |              |        |              |      |              |      |   |      |     |      |   |     |     |      |   |     
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) financing activities      |   |          |  |              |     |              |       |              |       |              |       |              |      |              |     |   |      |     |     |   |     |     |     |   |      |     |     |  
|                                               |                                                                                                    |                                                   |                                                          |   |          |   |              |     |              |        |              |       |              |        |              |      |              |      |   |      |     |      |   |     |     |      |   |     
|Effect of exchange rate changes on cash        |                                                                                                    |                                                   |                                                         |   |          |   |             |     |              |        |             |       |              |        |             |      |              |      |  |      |     |      |  |     |     |      |  |     
|                                               |                                                                                                    |                                                   |                                                          |   |          |   |              |     |              |        |              |       |              |        |              |      |              |      |   |      |     |      |   |     |     |      |   |     
|Net change in cash                             |                                                                                                    |                                                   |                                                         |   |          |   |             |     |              |        |             |       |              |        |             |      |              |      |  |      |     |      |  |     |     |      |  |     
|Cash and cash equivalents, beginning of period |                                                                                                    |                                                   |                                                         |   |          |   |             |     |              |        |             |       |              |        |             |      |              |      |  |      |     |      |  |     |     |      |  |     
|                                               |                                                                                                    |                                                   |                                                          |   |          |   |              |     |              |        |              |       |              |        |              |      |              |      |   |      |     |      |   |     |     |      |   |     
|Cash and cash equivalents, end of period       |                                                                                                    |                                                   |                                                         |   |          |   |             |     |              |        |             |       |              |        |             |      |              |      |  |      |     |      |  |     |     |      |  |     
|                                               |                                                                                                    |                                                   |                                                          |   |          |   |              |     |              |        |              |       |              |        |              |      |              |      |   |      |     |      |   |     |     |      |   |     





---



##### 



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



|                                               |                                                                                                    |                                                   |                                                          |     |              |        |              |   |              |   |              |    |              |     |              |       |     |        |   |       |       |        |   |      |     |      |   | 
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- | ------------------------------------------------- | -------------------------------------------------------- | --- | ------------ | ------ | ------------ | - | ------------ | - | ------------ | -- | ------------ | --- | ------------ | ----- | --- | ------ | - | ----- | ----- | ------ | - | ---- | --- | ---- | - | 
|                                               |                                                                                                    |                                                   |                                                          |     | MeriStar Sub |        | MeriStar Sub |   | MeriStar Sub |   | MeriStar Sub |    | MeriStar Sub |     | MeriStar Sub
|                                               |                                                                                                    |                                                   |                                                          |     | 3C, LLC      |        | 5R, LLC      |   | 8A, LLC      |   | 6D, LLC      |    | 6E, LLC      |     | 4E, L.P.    
|                                               |                                                                                                    |                                                   |                                                          |     |              |        |              |   |              |   |              |    |              |     |             
|Cash flows from operating activities:          |                                                                                                    |                                                   |                                                          |     |              |        |              |   |              |   |              |    |              |     |              |       |     |        |   |       |       |        |   |     
|                                               | Net Income (loss)                                                                                  |                                                   |                                                          | 472 |              |        |              |  |              |   |              |   |              |     |              | 1,119 |     |        |   | 2,443 |       |        |   | 65   |    
|                                               | Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities: |                                                   |                                                          |     |              |        |              |   |              |   |              |    |              |     |              |       |     |        |   |       |       |        |   |      |    
|                                               |                                                                                                    | Depreciation and amortization                     |                                                          |     | 529          |        |              |   |             |   |              |    |             |     |              |       | 393 |        |   |       | 1,272 |        |   |      | 689 |     
|                                               |                                                                                                    | Equity in earnings                                |                                                          |     |             |        |              |   |             |   |              |    |             |     |              |       |    |        |   |       |      |        |   |      |    |     
|                                               |                                                                                                    | Loss on fair value of non-hedging derivatives     |                                                          |     |             |        |              |   |             |   |              |    |             |     |              |       |    |        |   |       |      |        |   |      |    |     
|                                               |                                                                                                    | Loss on sale of assets, before tax effect         |                                                          |     |             |        |              |   |             |   |              |    |             |     |              |       |    |        |   |       |      |        |   |      |    |     
|                                               |                                                                                                    | Write off of deferred financing costs             |                                                          |     |             |        |              |   |             |   |              |    |             |     |              |       |    |        |   |       |      |        |   |      |    |     
|                                               |                                                                                                    | Minority interests                                |                                                          |     |             |        |              |   |             |   |              |    |             |     |              |       |    |        |   |       |      |        |   |      |    |     
|                                               |                                                                                                    | Amortization of unearned stock based compensation |                                                          |     |             |        |              |   |             |   |              |    |             |     |              |       |    |        |   |       |      |        |   |      |    |     
|                                               |                                                                                                    | Interest rate swaps marked to fair value          |                                                          |     |             |        |              |   |             |   |              |    |             |     |              |       |    |        |   |       |      |        |   |      |    |     
|                                               |                                                                                                    | Deferred income taxes                             |                                                          |     |             |        |              |   |             |   |              |    |             |     |              |       |    |        |   |       |      |        |   |      |    |     
|                                               |                                                                                                    | Changes in operating assets and liabilities:      |                                                          |     |              |        |              |   |              |   |              |    |              |     |              |       |     |        |   |       |       |        |   |      |     |     
|                                               |                                                                                                    |                                                   | Accounts receivable, net                                 |     |              |       |              |   |              |  |              |    |              |    |              |       |     | (10    | ) |       |       |       |   |      |     |     |  
|                                               |                                                                                                    |                                                   | Prepaid expenses and other                               |     |              |       |              |   |              |  |              |    |              | 1   |              |       |     |       |   |       |       |       |   |      |     |     |  
|                                               |                                                                                                    |                                                   | Due from/to Interstate Hotels                            |     |              |       |              |   |              |  |              |    |              |    |              |       |     |       |   |       |       |       |   |      |     |     |  
|                                               |                                                                                                    |                                                   | Accounts payable, accrued expenses and other liabilities |     |              | 160    |              |   |              |  |              |    |              | (46 | )            |       |     | (130   | ) |       |       | 165    |   |      |     | (148 | )
|                                               |                                                                                                    |                                                   | Accrued interest                                         |     |              |       |              |   |              |  |              |    |              |    |              |       |     |       |   |       |       |       |   |      |     |     |  
|                                               |                                                                                                    |                                                   | Due from subsidiaries                                    |     |              | (1,090 | )            |   |              |  |              |    |              | 46  |              |       |     | (1,209 | ) |       |       | (3,503 | ) |      |     | (466 | )
|                                               |                                                                                                    |                                                   |                                                          |     |              |        |              |   |              |   |              |    |              |     |              |       |     |        |   |       |       |        |   |     
|                                               |                                                                                                    |                                                   | Income taxes payable                                     |     |              |       |              |   |              |  |              |    |              |    |              |       |     |       |   |       |       |       |   |      |     |     |  
|                                               |                                                                                                    |                                                   |                                                          |     |              |        |              |   |              |   |              |    |              |     |              |       |     |        |   |       |       |        |   |     
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) operating activities      |     |              | 71     |              |   |              |  |              |    |              | 1   |              |       |     | 163    |   |       |       | 377    |   |      |     | 139  |  
|                                               |                                                                                                    |                                                   |                                                          |     |              |        |              |   |              |   |              |    |              |     |              |       |     |        |   |       |       |        |   |     
|Cash flows from investing activities:          |                                                                                                    |                                                   |                                                          |     |              |        |              |   |              |   |              |    |              |     |              |       |     |        |   |       |       |        |   |     
|                                               | Investment in hotel properties, net                                                                |                                                   |                                                          | (71 | )            |        |              |  |              |   |              | (1 | )            |     |              | (163  | )   |        |   | (377  | )     |        |   | (139 | )  
|                                               | Proceeds from disposition of assets                                                                |                                                   |                                                          |    |              |        |              |  |              |   |              |   |              |     |              |      |     |        |   |      |       |        |   |     |    
|                                               | Repayments of note receivable                                                                      |                                                   |                                                          |    |              |        |              |  |              |   |              |   |              |     |              |      |     |        |   |      |       |        |   |     |    
|                                               | Change in restricted cash                                                                          |                                                   |                                                          |    |              |        |              |  |              |   |              |   |              |     |              |      |     |        |   |      |       |        |   |     |    
|                                               |                                                                                                    |                                                   |                                                          |     |              |        |              |   |              |   |              |    |              |     |              |       |     |        |   |       |       |        |   |     
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) investing activities      |     |              | (71    | )            |   |              |  |              |    |              | (1  | )            |       |     | (163   | ) |       |       | (377   | ) |      |     | (139 | )
|                                               |                                                                                                    |                                                   |                                                          |     |              |        |              |   |              |   |              |    |              |     |              |       |     |        |   |       |       |        |   |     
|Cash flows from financing activities:          |                                                                                                    |                                                   |                                                          |     |              |        |              |   |              |   |              |    |              |     |              |       |     |        |   |       |       |        |   |      |     |      |   | 
|                                               | Deferred financing costs                                                                           |                                                   |                                                          |    |              |        |              |  |              |   |              |   |              |     |              |      |     |        |   |      |       |        |   |     |    
|                                               | Proceeds from issuances mortgages and notes payable                                                |                                                   |                                                          |    |              |        |              |  |              |   |              |   |              |     |              |      |     |        |   |      |       |        |   |     |    
|                                               | Principal payments on mortgages and notes payable                                                  |                                                   |                                                          |    |              |        |              |  |              |   |              |   |              |     |              |      |     |        |   |      |       |        |   |     |    
|                                               | Repurchase of units                                                                                |                                                   |                                                          |    |              |        |              |  |              |   |              |   |              |     |              |      |     |        |   |      |       |        |   |     |    
|                                               | Contributions from partners                                                                        |                                                   |                                                          |    |              |        |              |  |              |   |              |   |              |     |              |      |     |        |   |      |       |        |   |     |    
|                                               | Distributions paid to partners                                                                     |                                                   |                                                          |    |              |        |              |  |              |   |              |   |              |     |              |      |     |        |   |      |       |        |   |     |    
|                                               |                                                                                                    |                                                   |                                                          |     |              |        |              |   |              |   |              |    |              |     |              |       |     |        |   |       |       |        |   |     
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) financing activities      |     |              |       |              |   |              |  |              |    |              |    |              |       |     |       |   |       |       |       |   |      |     |     |  
|                                               |                                                                                                    |                                                   |                                                          |     |              |        |              |   |              |   |              |    |              |     |              |       |     |        |   |       |       |        |   |     
|Effect of exchange rate changes on cash        |                                                                                                    |                                                   |                                                         |     |              |        |             |   |              |   |             |    |              |     |             |       |     |        |  |       |       |        |  |     
|                                               |                                                                                                    |                                                   |                                                          |     |              |        |              |   |              |   |              |    |              |     |              |       |     |        |   |       |       |        |   |     
|Net change in cash                             |                                                                                                    |                                                   |                                                         |     |              |        |             |   |              |   |             |    |              |     |             |       |     |        |  |       |       |        |  |     
|Cash and cash equivalents, beginning of period |                                                                                                    |                                                   |                                                         |     |              |        |             |   |              |   |             |    |              |     |             |       |     |        |  |       |       |        |  |     
|                                               |                                                                                                    |                                                   |                                                          |     |              |        |              |   |              |   |              |    |              |     |              |       |     |        |   |       |       |        |   |     
|Cash and cash equivalents, end of period       |                                                                                                    |                                                   |                                                         |     |              |        |             |   |              |   |             |    |              |     |             |       |     |        |  |       |       |        |  |     
|                                               |                                                                                                    |                                                   |                                                          |     |              |        |              |   |              |   |              |    |              |     |              |       |     |        |   |       |       |        |   |     



---



##### 



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

|                                               |                                                                                                    |                                                   |                                                          |       |              |        |              |       |              |        |              |       |              |        |              |      |       |      |   |        |       |         |   |     |     |      |  
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- | ------------------------------------------------- | -------------------------------------------------------- | ----- | ------------ | ------ | ------------ | ----- | ------------ | ------ | ------------ | ----- | ------------ | ------ | ------------ | ---- | ----- | ---- | - | ------ | ----- | ------- | - | --- | --- | ---- | -
|                                               |                                                                                                    |                                                   |                                                          |       | MeriStar Sub |        | MeriStar Sub |       | MeriStar Sub |        | MeriStar Sub |       | MeriStar Sub |        | MeriStar Sub
|                                               |                                                                                                    |                                                   |                                                          |       | 1B, LLC      |        | 5F L.P.      |       | 6G, LLC      |        | 8C, LLC      |       | 4C, L.P.     |        | 4H, L.P.    
|                                               |                                                                                                    |                                                   |                                                          |       |              |        |              |       |              |        |              |       |              |        |             
|Cash flows from operating activities:          |                                                                                                    |                                                   |                                                          |       |              |        |              |       |              |        |              |       |              |        |              |      |       |      |   |        |       |         |   |    
|                                               | Net Income (loss)                                                                                  |                                                   |                                                          | 1,839 |              |        |              | 1,112 |              |        |              | 1,118 |              |        |              |     |       |      |   | (1,407 | )     |         |   | (95 | )  
|                                               | Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities: |                                                   |                                                          |       |              |        |              |       |              |        |              |       |              |        |              |      |       |      |   |        |       |         |   |     |    
|                                               |                                                                                                    | Depreciation and amortization                     |                                                          |       | 462          |        |              |       | 792          |        |              |       | 627          |        |              |      | 1,037 |      |   |        | 283   |         |   |     | 405 |     
|                                               |                                                                                                    | Equity in earnings                                |                                                          |       |             |        |              |       |             |        |              |       |             |        |              |      |      |      |   |        |      |         |   |     |    |     
|                                               |                                                                                                    | Loss on fair value of non-hedging derivatives     |                                                          |       |             |        |              |       |             |        |              |       |             |        |              |      |      |      |   |        |      |         |   |     |    |     
|                                               |                                                                                                    | Loss on sale of assets, before tax effect         |                                                          |       |             |        |              |       |             |        |              |       |             |        |              |      |      |      |   |        | 1,578 |         |   |     |    |     
|                                               |                                                                                                    | Write off of deferred financing costs             |                                                          |       |             |        |              |       |             |        |              |       |             |        |              |      |      |      |   |        |      |         |   |     |    |     
|                                               |                                                                                                    | Minority interests                                |                                                          |       |             |        |              |       |             |        |              |       |             |        |              |      |      |      |   |        |      |         |   |     |    |     
|                                               |                                                                                                    | Amortization of unearned stock based compensation |                                                          |       |             |        |              |       |             |        |              |       |             |        |              |      |      |      |   |        |      |         |   |     |    |     
|                                               |                                                                                                    | Interest rate swaps marked to fair value          |                                                          |       |             |        |              |       |             |        |              |       |             |        |              |      |      |      |   |        |      |         |   |     |    |     
|                                               |                                                                                                    | Deferred income taxes                             |                                                          |       |             |        |              |       |             |        |              |       |             |        |              |      |      |      |   |        | (32   | )       |   |     |    |     
|                                               |                                                                                                    | Changes in operating assets and liabilities:      |                                                          |       |              |        |              |       |              |        |              |       |              |        |              |      |       |      |   |        |       |         |   |     |     |     
|                                               |                                                                                                    |                                                   | Accounts receivable, net                                 |       |              |       |              |       |              |       |              |       |              |       |              |      |       |     |   |        |       | (1      | ) |     |     |     |  
|                                               |                                                                                                    |                                                   | Prepaid expenses and other                               |       |              |       |              |       |              |       |              |       |              |       |              |      |       |     |   |        |       |        |   |     |     | (3   | )
|                                               |                                                                                                    |                                                   | Due from/to Interstate Hotels                            |       |              |       |              |       |              |       |              |       |              |       |              |      |       |     |   |        |       |        |   |     |     |     |  
|                                               |                                                                                                    |                                                   | Accounts payable, accrued expenses and other liabilities |       |              | 83     |              |       |              | 248    |              |       |              | (103   | )            |      |       | (201 | ) |        |       | (317    | ) |     |     | (67  | )
|                                               |                                                                                                    |                                                   | Accrued interest                                         |       |              |       |              |       |              |       |              |       |              |       |              |      |       |     |   |        |       |        |   |     |     |     |  
|                                               |                                                                                                    |                                                   | Due from subsidiaries                                    |       |              | (2,120 | )            |       |              | (1,708 | )            |       |              | (1,348 | )            |      |       | (716 | ) |        |       | (11,656 | ) |     |     | (158 | )
|                                               |                                                                                                    |                                                   |                                                          |       |              |        |              |       |              |        |              |       |              |        |              |      |       |      |   |        |       |         |   |    
|                                               |                                                                                                    |                                                   | Income taxes payable                                     |       |              |       |              |       |              |       |              |       |              |       |              |      |       |     |   |        |       |        |   |     |     |     |  
|                                               |                                                                                                    |                                                   |                                                          |       |              |        |              |       |              |        |              |       |              |        |              |      |       |      |   |        |       |         |   |    
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) operating activities      |       |              | 264    |              |       |              | 444    |              |       |              | 294    |              |      |       | 120  |   |        |       | (11,552 | ) |     |     | 82   |  
|                                               |                                                                                                    |                                                   |                                                          |       |              |        |              |       |              |        |              |       |              |        |              |      |       |      |   |        |       |         |   |    
|Cash flows from investing activities:          |                                                                                                    |                                                   |                                                          |       |              |        |              |       |              |        |              |       |              |        |              |      |       |      |   |        |       |         |   |    
|                                               | Investment in hotel properties, net                                                                |                                                   |                                                          | (264  | )            |        |              | (444  | )            |        |              | (294  | )            |        |              | (120 | )     |      |   | (48    | )     |         |   | (82 | )  
|                                               | Proceeds from disposition of assets                                                                |                                                   |                                                          |      |              |        |              |      |              |        |              |      |              |        |              |     |       |      |   | 11,600 |       |         |   |    |    
|                                               | Repayments of note receivable                                                                      |                                                   |                                                          |      |              |        |              |      |              |        |              |      |              |        |              |     |       |      |   |       |       |         |   |    |    
|                                               | Change in restricted cash                                                                          |                                                   |                                                          |      |              |        |              |      |              |        |              |      |              |        |              |     |       |      |   |       |       |         |   |    |    
|                                               |                                                                                                    |                                                   |                                                          |       |              |        |              |       |              |        |              |       |              |        |              |      |       |      |   |        |       |         |   |    
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) investing activities      |       |              | (264   | )            |       |              | (444   | )            |       |              | (294   | )            |      |       | (120 | ) |        |       | 11,552  |   |     |     | (82  | )
|                                               |                                                                                                    |                                                   |                                                          |       |              |        |              |       |              |        |              |       |              |        |              |      |       |      |   |        |       |         |   |    
|Cash flows from financing activities:          |                                                                                                    |                                                   |                                                          |       |              |        |              |       |              |        |              |       |              |        |              |      |       |      |   |        |       |         |   |    
|                                               | Deferred financing costs                                                                           |                                                   |                                                          |      |              |        |              |      |              |        |              |      |              |        |              |     |       |      |   |       |       |         |   |    |    
|                                               | Proceeds from issuances mortgages and notes payable                                                |                                                   |                                                          |      |              |        |              |      |              |        |              |      |              |        |              |     |       |      |   |       |       |         |   |    |    
|                                               | Principal payments on mortgages and notes payable                                                  |                                                   |                                                          |      |              |        |              |      |              |        |              |      |              |        |              |     |       |      |   |       |       |         |   |    |    
|                                               | Repurchase of units                                                                                |                                                   |                                                          |      |              |        |              |      |              |        |              |      |              |        |              |     |       |      |   |       |       |         |   |    |    
|                                               | Contributions from partners                                                                        |                                                   |                                                          |      |              |        |              |      |              |        |              |      |              |        |              |     |       |      |   |       |       |         |   |    |    
|                                               | Distributions paid to partners                                                                     |                                                   |                                                          |      |              |        |              |      |              |        |              |      |              |        |              |     |       |      |   |       |       |         |   |    |    
|                                               |                                                                                                    |                                                   |                                                          |       |              |        |              |       |              |        |              |       |              |        |              |      |       |      |   |        |       |         |   |    
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) financing activities      |       |              |       |              |       |              |       |              |       |              |       |              |      |       |     |   |        |       |        |   |     |     |     |  
|                                               |                                                                                                    |                                                   |                                                          |       |              |        |              |       |              |        |              |       |              |        |              |      |       |      |   |        |       |         |   |    
|Effect of exchange rate changes on cash        |                                                                                                    |                                                   |                                                         |       |              |        |             |       |              |        |             |       |              |        |             |      |       |      |  |        |       |         |  |    
|                                               |                                                                                                    |                                                   |                                                          |       |              |        |              |       |              |        |              |       |              |        |              |      |       |      |   |        |       |         |   |    
|Net change in cash                             |                                                                                                    |                                                   |                                                         |       |              |        |             |       |              |        |             |       |              |        |             |      |       |      |  |        |       |         |  |    
|Cash and cash equivalents, beginning of period |                                                                                                    |                                                   |                                                         |       |              |        |             |       |              |        |             |       |              |        |             |      |       |      |  |        |       |         |  |    
|                                               |                                                                                                    |                                                   |                                                          |       |              |        |              |       |              |        |              |       |              |        |              |      |       |      |   |        |       |         |   |    
|Cash and cash equivalents, end of period       |                                                                                                    |                                                   |                                                         |       |              |        |             |       |              |        |             |       |              |        |             |      |       |      |  |        |       |         |  |    
|                                               |                                                                                                    |                                                   |                                                          |       |              |        |              |       |              |        |              |       |              |        |              |      |       |      |   |        |       |         |   |    



---



##### 



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



|                                               |                                                                                                    |                                                   |                                                          |     |              |      |              |      |              |        |              |     |                 |        |              |       |              |        |   |      |     |      |   |       |     |        |   |      |     |      |  
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- | ------------------------------------------------- | -------------------------------------------------------- | --- | ------------ | ---- | ------------ | ---- | ------------ | ------ | ------------ | --- | --------------- | ------ | ------------ | ----- | ------------ | ------ | - | ---- | --- | ---- | - | ----- | --- | ------ | - | ---- | --- | ---- | -
|                                               |                                                                                                    |                                                   |                                                          |     | MeriStar Sub |      | MeriStar Sub |      | MeriStar Sub |        | MeriStar Sub |     | MeriStar Sub 7A |        | MeriStar Sub |       | MeriStar Sub
|                                               |                                                                                                    |                                                   |                                                          |     | 7E, LLC      |      | 3D, LLC      |      | 1A, LLC      |        | 5E, LLC      |     | Joint Venture   |        | 6K, LLC      |       | 2B, LLC     
|                                               |                                                                                                    |                                                   |                                                          |     |              |      |              |      |              |        |              |     |                 |        |              |       |             
|Cash flows from operating activities:          |                                                                                                    |                                                   |                                                          |     |              |      |              |      |              |        |              |     |                 |        |              |       |              |        |   |      |     |      |   |       |     |        |   |     
|                                               | Net Income (loss)                                                                                  |                                                   |                                                          | 451 |              |      |              | 966  |              |        |              | 736 |                 |        |              | 2,534 |              |        |   | 520  |     |      |   | 2,183 |     |        |   | (299 | )  
|                                               | Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities: |                                                   |                                                          |     |              |      |              |      |              |        |              |     |                 |        |              |       |              |        |   |      |     |      |   |       |     |        |   |      |    
|                                               |                                                                                                    | Depreciation and amortization                     |                                                          |     | 473          |      |              |      | 653          |        |              |     | 343             |        |              |       | 1,454        |        |   |      | 312 |      |   |       | 554 |        |   |      | 314 |     
|                                               |                                                                                                    | Equity in earnings                                |                                                          |     |             |      |              |      |             |        |              |     |                |        |              |       |             |        |   |      |    |      |   |       |    |        |   |      |    |     
|                                               |                                                                                                    | Loss on fair value of non-hedging derivatives     |                                                          |     |             |      |              |      |             |        |              |     |                |        |              |       |             |        |   |      |    |      |   |       |    |        |   |      |    |     
|                                               |                                                                                                    | Loss on sale of assets, before tax effect         |                                                          |     |             |      |              |      |             |        |              |     |                |        |              |       |             |        |   |      |    |      |   |       |    |        |   |      |    |     
|                                               |                                                                                                    | Write off of deferred financing costs             |                                                          |     |             |      |              |      |             |        |              |     |                |        |              |       |             |        |   |      |    |      |   |       |    |        |   |      |    |     
|                                               |                                                                                                    | Minority interests                                |                                                          |     |             |      |              |      |             |        |              |     |                |        |              |       |             |        |   |      |    |      |   |       |    |        |   |      |    |     
|                                               |                                                                                                    | Amortization of unearned stock based compensation |                                                          |     |             |      |              |      |             |        |              |     |                |        |              |       |             |        |   |      |    |      |   |       |    |        |   |      |    |     
|                                               |                                                                                                    | Interest rate swaps marked to fair value          |                                                          |     |             |      |              |      |             |        |              |     |                |        |              |       |             |        |   |      |    |      |   |       |    |        |   |      |    |     
|                                               |                                                                                                    | Deferred income taxes                             |                                                          |     |             |      |              |      |             |        |              |     |                |        |              |       |             |        |   |      |    |      |   |       |    |        |   |      |    |     
|                                               |                                                                                                    | Changes in operating assets and liabilities:      |                                                          |     |              |      |              |      |              |        |              |     |                 |        |              |       |              |        |   |      |     |      |   |       |     |        |   |      |     |     
|                                               |                                                                                                    |                                                   | Accounts receivable, net                                 |     |              |     |              |      |              |       |              |     |                 |       |              |       |              |       |   |      |     |     |   |       |     |       |   |      |     |     |  
|                                               |                                                                                                    |                                                   | Prepaid expenses and other                               |     |              |     |              |      |              |       |              |     |                 |       |              |       |              |       |   |      |     |     |   |       |     |       |   |      |     |     |  
|                                               |                                                                                                    |                                                   | Due from/to Interstate Hotels                            |     |              |     |              |      |              |       |              |     |                 |       |              |       |              |       |   |      |     |     |   |       |     |       |   |      |     |     |  
|                                               |                                                                                                    |                                                   | Accounts payable, accrued expenses and other liabilities |     |              | (73  | )            |      |              | 169    |              |     |                 | (19    | )            |       |              | 157    |   |      |     | (67  | ) |       |     | 80     |   |      |     |     |  
|                                               |                                                                                                    |                                                   | Accrued interest                                         |     |              |     |              |      |              |       |              |     |                 |       |              |       |              |       |   |      |     |     |   |       |     |       |   |      |     |     |  
|                                               |                                                                                                    |                                                   | Due from subsidiaries                                    |     |              | (769 | )            |      |              | (1,588 | )            |     |                 | (1,001 | )            |       |              | (4,098 | ) |      |     | (546 | ) |       |     | (2,619 | ) |      |     | 139  |  
|                                               |                                                                                                    |                                                   | Income taxes payable                                     |     |              |     |              |      |              |       |              |     |                 |       |              |       |              |       |   |      |     |     |   |       |     |       |   |      |     |     |  
|                                               |                                                                                                    |                                                   |                                                          |     |              |      |              |      |              |        |              |     |                 |        |              |       |              |        |   |      |     |      |   |       |     |        |   |     
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) operating activities      |     |              | 82   |              |      |              | 200    |              |     |                 | 59     |              |       |              | 47     |   |      |     | 219  |   |       |     | 198    |   |      |     | 154  |  
|                                               |                                                                                                    |                                                   |                                                          |     |              |      |              |      |              |        |              |     |                 |        |              |       |              |        |   |      |     |      |   |       |     |        |   |     
|Cash flows from investing activities:          |                                                                                                    |                                                   |                                                          |     |              |      |              |      |              |        |              |     |                 |        |              |       |              |        |   |      |     |      |   |       |     |        |   |     
|                                               | Investment in hotel properties, net                                                                |                                                   |                                                          | (82 | )            |      |              | (200 | )            |        |              | (59 | )               |        |              | (47   | )            |        |   | (219 | )   |      |   | (198  | )   |        |   | (154 | )  
|                                               | Proceeds from disposition of assets                                                                |                                                   |                                                          |    |              |      |              |     |              |        |              |    |                 |        |              |      |              |        |   |     |     |      |   |      |     |        |   |     |    
|                                               | Repayments of note receivable                                                                      |                                                   |                                                          |    |              |      |              |     |              |        |              |    |                 |        |              |      |              |        |   |     |     |      |   |      |     |        |   |     |    
|                                               | Change in restricted cash                                                                          |                                                   |                                                          |    |              |      |              |     |              |        |              |    |                 |        |              |      |              |        |   |     |     |      |   |      |     |        |   |     |    
|                                               |                                                                                                    |                                                   |                                                          |     |              |      |              |      |              |        |              |     |                 |        |              |       |              |        |   |      |     |      |   |       |     |        |   |     
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) investing activities      |     |              | (82  | )            |      |              | (200   | )            |     |                 | (59    | )            |       |              | (47    | ) |      |     | (219 | ) |       |     | (198   | ) |      |     | (154 | )
|                                               |                                                                                                    |                                                   |                                                          |     |              |      |              |      |              |        |              |     |                 |        |              |       |              |        |   |      |     |      |   |       |     |        |   |     
|Cash flows from financing activities:          |                                                                                                    |                                                   |                                                          |     |              |      |              |      |              |        |              |     |                 |        |              |       |              |        |   |      |     |      |   |       |     |        |   |     
|                                               | Deferred financing costs                                                                           |                                                   |                                                          |    |              |      |              |     |              |        |              |    |                 |        |              |      |              |        |   |     |     |      |   |      |     |        |   |     |    
|                                               | Proceeds from issuances mortgages and notes payable                                                |                                                   |                                                          |    |              |      |              |     |              |        |              |    |                 |        |              |      |              |        |   |     |     |      |   |      |     |        |   |     |    
|                                               | Principal payments on mortgages and notes payable                                                  |                                                   |                                                          |    |              |      |              |     |              |        |              |    |                 |        |              |      |              |        |   |     |     |      |   |      |     |        |   |     |    
|                                               | Repurchase of units                                                                                |                                                   |                                                          |    |              |      |              |     |              |        |              |    |                 |        |              |      |              |        |   |     |     |      |   |      |     |        |   |     |    
|                                               | Contributions from partners                                                                        |                                                   |                                                          |    |              |      |              |     |              |        |              |    |                 |        |              |      |              |        |   |     |     |      |   |      |     |        |   |     |    
|                                               | Distributions paid to partners                                                                     |                                                   |                                                          |    |              |      |              |     |              |        |              |    |                 |        |              |      |              |        |   |     |     |      |   |      |     |        |   |     |    
|                                               |                                                                                                    |                                                   |                                                          |     |              |      |              |      |              |        |              |     |                 |        |              |       |              |        |   |      |     |      |   |       |     |        |   |     
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) financing activities      |     |              |     |              |      |              |       |              |     |                 |       |              |       |              |       |   |      |     |     |   |       |     |       |   |      |     |     |  
|                                               |                                                                                                    |                                                   |                                                          |     |              |      |              |      |              |        |              |     |                 |        |              |       |              |        |   |      |     |      |   |       |     |        |   |     
|Effect of exchange rate changes on cash        |                                                                                                    |                                                   |                                                         |     |              |      |             |      |              |        |             |     |                 |        |             |       |              |        |  |      |     |      |  |       |     |        |  |     
|                                               |                                                                                                    |                                                   |                                                          |     |              |      |              |      |              |        |              |     |                 |        |              |       |              |        |   |      |     |      |   |       |     |        |   |     
|Net change in cash                             |                                                                                                    |                                                   |                                                         |     |              |      |             |      |              |        |             |     |                 |        |             |       |              |        |  |      |     |      |  |       |     |        |  |     
|Cash and cash equivalents, beginning of period |                                                                                                    |                                                   |                                                         |     |              |      |             |      |              |        |             |     |                 |        |             |       |              |        |  |      |     |      |  |       |     |        |  |     
|                                               |                                                                                                    |                                                   |                                                          |     |              |      |              |      |              |        |              |     |                 |        |              |       |              |        |   |      |     |      |   |       |     |        |   |     
|Cash and cash equivalents, end of period       |                                                                                                    |                                                   |                                                         |     |              |      |             |      |              |        |             |     |                 |        |             |       |              |        |  |      |     |      |  |       |     |        |  |     
|                                               |                                                                                                    |                                                   |                                                          |     |              |      |              |      |              |        |              |     |                 |        |              |       |              |        |   |      |     |      |   |       |     |        |   |     



---



##### 



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

|                                               |                                                                                                    |                                                   |                                                          |      |              |      |              |      |              |      |              |      |              |      |             |      |              |     |   |      |     |      |   |     |     |      |   |      |     |      |  
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- | ------------------------------------------------- | -------------------------------------------------------- | ---- | ------------ | ---- | ------------ | ---- | ------------ | ---- | ------------ | ---- | ------------ | ---- | ----------- | ---- | ------------ | --- | - | ---- | --- | ---- | - | --- | --- | ---- | - | ---- | --- | ---- | -
|                                               |                                                                                                    |                                                   |                                                          |      | MeriStar Sub |      | MeriStar Sub |      | MeriStar Sub |      | MeriStar Sub |      | MeriStar Sub |      | MDV Limited |      | MeriStar Sub
|                                               |                                                                                                    |                                                   |                                                          |      | 3A, LLC      |      | 4A, LLC      |      | 4D, LLC      |      | 2A, LLC      |      | 6L, LLC      |      | Partnership |      | 5C, LLC     
|                                               |                                                                                                    |                                                   |                                                          |      |              |      |              |      |              |      |              |      |              |      |             |      |             
|Cash flows from operating activities:          |                                                                                                    |                                                   |                                                          |      |              |      |              |      |              |      |              |      |              |      |             |      |              |     |   |      |     |      |   |     |     |      |   |     
|                                               | Net Income (loss)                                                                                  |                                                   |                                                          | 151  |              |      |              | 585  |              |      |              | 49   |              |      |             | (419 | )            |     |   | 575  |     |      |   | 208 |     |      |   | 359  |    
|                                               | Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities: |                                                   |                                                          |      |              |      |              |      |              |      |              |      |              |      |             |      |              |     |   |      |     |      |   |     |     |      |   |      |    
|                                               |                                                                                                    | Depreciation and amortization                     |                                                          |      | 194          |      |              |      |             |      |              |      | 233          |      |             |      | 240          |     |   |      | 667 |      |   |     | 102 |      |   |      | 447 |     
|                                               |                                                                                                    | Equity in earnings                                |                                                          |      |             |      |              |      |             |      |              |      |             |      |             |      |             |     |   |      |    |      |   |     |    |      |   |      |    |     
|                                               |                                                                                                    | Loss on fair value of non-hedging derivatives     |                                                          |      |             |      |              |      |             |      |              |      |             |      |             |      |             |     |   |      |    |      |   |     |    |      |   |      |    |     
|                                               |                                                                                                    | Loss on sale of assets, before tax effect         |                                                          |      |             |      |              |      |             |      |              |      |             |      |             |      |             |     |   |      |    |      |   |     |    |      |   |      |    |     
|                                               |                                                                                                    | Write off of deferred financing costs             |                                                          |      |             |      |              |      |             |      |              |      |             |      |             |      |             |     |   |      |    |      |   |     |    |      |   |      |    |     
|                                               |                                                                                                    | Minority interests                                |                                                          |      |             |      |              |      |             |      |              |      |             |      |             |      |             |     |   |      |    |      |   |     |    |      |   |      |    |     
|                                               |                                                                                                    | Amortization of unearned stock based compensation |                                                          |      |             |      |              |      |             |      |              |      |             |      |             |      |             |     |   |      |    |      |   |     |    |      |   |      |    |     
|                                               |                                                                                                    | Interest rate swaps marked to fair value          |                                                          |      |             |      |              |      |             |      |              |      |             |      |             |      |             |     |   |      |    |      |   |     |    |      |   |      |    |     
|                                               |                                                                                                    | Deferred income taxes                             |                                                          |      |             |      |              |      |             |      |              |      |             |      |             |      |             |     |   |      |    |      |   |     |    |      |   |      |    |     
|                                               |                                                                                                    | Changes in operating assets and liabilities:      |                                                          |      |              |      |              |      |              |      |              |      |              |      |             |      |              |     |   |      |     |      |   |     |     |      |   |      |     |     
|                                               |                                                                                                    |                                                   | Accounts receivable, net                                 |      |              |     |              |      |              |     |              |      |              |     |             |      |              |    |   |      |     |     |   |     |     |     |   |      |     |     |  
|                                               |                                                                                                    |                                                   | Prepaid expenses and other                               |      |              |     |              |      |              |     |              |      |              |     |             |      |              |    |   |      |     |     |   |     |     | 4    |   |      |     | (14  | )
|                                               |                                                                                                    |                                                   | Due from/to Interstate Hotels                            |      |              |     |              |      |              |     |              |      |              |     |             |      |              |    |   |      |     |     |   |     |     |     |   |      |     |     |  
|                                               |                                                                                                    |                                                   | Accounts payable, accrued expenses and other liabilities |      |              | 33   |              |      |              | (33  | )            |      |              | 115  |             |      |              | (12 | ) |      |     | (69  | ) |     |     | (10  | ) |      |     | 41   |  
|                                               |                                                                                                    |                                                   | Accrued interest                                         |      |              |     |              |      |              |     |              |      |              |     |             |      |              |    |   |      |     |     |   |     |     |     |   |      |     |     |  
|                                               |                                                                                                    |                                                   | Due from subsidiaries                                    |      |              | 355  |              |      |              | (288 | )            |      |              | (124 | )           |      |              | 244 |   |      |     | (986 | ) |     |     | (291 | ) |      |     | (616 | )
|                                               |                                                                                                    |                                                   | Income taxes payable                                     |      |              |     |              |      |              |     |              |      |              |     |             |      |              |    |   |      |     |     |   |     |     |     |   |      |     |     |  
|                                               |                                                                                                    |                                                   |                                                          |      |              |      |              |      |              |      |              |      |              |      |             |      |              |     |   |      |     |      |   |     |     |      |   |     
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) operating activities      |      |              | 733  |              |      |              | 264  |              |      |              | 273  |             |      |              | 53  |   |      |     | 187  |   |     |     | 13   |   |      |     | 217  |  
|                                               |                                                                                                    |                                                   |                                                          |      |              |      |              |      |              |      |              |      |              |      |             |      |              |     |   |      |     |      |   |     |     |      |   |     
|Cash flows from investing activities:          |                                                                                                    |                                                   |                                                          |      |              |      |              |      |              |      |              |      |              |      |             |      |              |     |   |      |     |      |   |     |     |      |   |     
|                                               | Investment in hotel properties, net                                                                |                                                   |                                                          | (733 | )            |      |              | (264 | )            |      |              | (273 | )            |      |             | (53  | )            |     |   | (187 | )   |      |   | (13 | )   |      |   | (217 | )  
|                                               | Proceeds from disposition of assets                                                                |                                                   |                                                          |     |              |      |              |     |              |      |              |     |              |      |             |     |              |     |   |     |     |      |   |    |     |      |   |     |    
|                                               | Repayments of note receivable                                                                      |                                                   |                                                          |     |              |      |              |     |              |      |              |     |              |      |             |     |              |     |   |     |     |      |   |    |     |      |   |     |    
|                                               | Change in restricted cash                                                                          |                                                   |                                                          |     |              |      |              |     |              |      |              |     |              |      |             |     |              |     |   |     |     |      |   |    |     |      |   |     |    
|                                               |                                                                                                    |                                                   |                                                          |      |              |      |              |      |              |      |              |      |              |      |             |      |              |     |   |      |     |      |   |     |     |      |   |     
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) investing activities      |      |              | (733 | )            |      |              | (264 | )            |      |              | (273 | )           |      |              | (53 | ) |      |     | (187 | ) |     |     | (13  | ) |      |     | (217 | )
|                                               |                                                                                                    |                                                   |                                                          |      |              |      |              |      |              |      |              |      |              |      |             |      |              |     |   |      |     |      |   |     |     |      |   |     
|Cash flows from financing activities:          |                                                                                                    |                                                   |                                                          |      |              |      |              |      |              |      |              |      |              |      |             |      |              |     |   |      |     |      |   |     |     |      |   |     
|                                               | Deferred financing costs                                                                           |                                                   |                                                          |     |              |      |              |     |              |      |              |     |              |      |             |     |              |     |   |     |     |      |   |    |     |      |   |     |    
|                                               | Proceeds from issuances mortgages and notes payable                                                |                                                   |                                                          |     |              |      |              |     |              |      |              |     |              |      |             |     |              |     |   |     |     |      |   |    |     |      |   |     |    
|                                               | Principal payments on mortgages and notes payable                                                  |                                                   |                                                          |     |              |      |              |     |              |      |              |     |              |      |             |     |              |     |   |     |     |      |   |    |     |      |   |     |    
|                                               | Repurchase of units                                                                                |                                                   |                                                          |     |              |      |              |     |              |      |              |     |              |      |             |     |              |     |   |     |     |      |   |    |     |      |   |     |    
|                                               | Contributions from partners                                                                        |                                                   |                                                          |     |              |      |              |     |              |      |              |     |              |      |             |     |              |     |   |     |     |      |   |    |     |      |   |     |    
|                                               | Distributions paid to partners                                                                     |                                                   |                                                          |     |              |      |              |     |              |      |              |     |              |      |             |     |              |     |   |     |     |      |   |    |     |      |   |     |    
|                                               |                                                                                                    |                                                   |                                                          |      |              |      |              |      |              |      |              |      |              |      |             |      |              |     |   |      |     |      |   |     |     |      |   |     
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) financing activities      |      |              |     |              |      |              |     |              |      |              |     |             |      |              |    |   |      |     |     |   |     |     |     |   |      |     |     |  
|                                               |                                                                                                    |                                                   |                                                          |      |              |      |              |      |              |      |              |      |              |      |             |      |              |     |   |      |     |      |   |     |     |      |   |     
|Effect of exchange rate changes on cash        |                                                                                                    |                                                   |                                                         |      |              |      |             |      |              |      |             |      |              |      |            |      |              |     |  |      |     |      |  |     |     |      |  |     
|                                               |                                                                                                    |                                                   |                                                          |      |              |      |              |      |              |      |              |      |              |      |             |      |              |     |   |      |     |      |   |     |     |      |   |     
|Net change in cash                             |                                                                                                    |                                                   |                                                         |      |              |      |             |      |              |      |             |      |              |      |            |      |              |     |  |      |     |      |  |     |     |      |  |     
|Cash and cash equivalents, beginning of period |                                                                                                    |                                                   |                                                         |      |              |      |             |      |              |      |             |      |              |      |            |      |              |     |  |      |     |      |  |     |     |      |  |     
|                                               |                                                                                                    |                                                   |                                                          |      |              |      |              |      |              |      |              |      |              |      |             |      |              |     |   |      |     |      |   |     |     |      |   |     
|Cash and cash equivalents, end of period       |                                                                                                    |                                                   |                                                         |      |              |      |             |      |              |      |             |      |              |      |            |      |              |     |  |      |     |      |  |     |     |      |  |     
|                                               |                                                                                                    |                                                   |                                                          |      |              |      |              |      |              |      |              |      |              |      |             |      |              |     |   |      |     |      |   |     |     |      |   |     



---



##### 



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



|                                               |                                                                                                    |                                                   |                                                          |       |              |        |              |       |              |        |              |     |              |      |              |       |              |        |   |      |     |      |   |     |     |      |   |      |     |      |  
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- | ------------------------------------------------- | -------------------------------------------------------- | ----- | ------------ | ------ | ------------ | ----- | ------------ | ------ | ------------ | --- | ------------ | ---- | ------------ | ----- | ------------ | ------ | - | ---- | --- | ---- | - | --- | --- | ---- | - | ---- | --- | ---- | -
|                                               |                                                                                                    |                                                   |                                                          |       | MeriStar Sub |        | MeriStar Sub |       | MeriStar Sub |        | MeriStar Sub |     | MeriStar Sub |      | MeriStar Sub |       | MeriStar Sub
|                                               |                                                                                                    |                                                   |                                                          |       | 6J, LLC      |        | 1D, L.P.     |       | 7B, L.P.     |        | 7D, LLC      |     | 7G, LLC      |      | 6B, LLC      |       | 4I, L.P.    
|                                               |                                                                                                    |                                                   |                                                          |       |              |        |              |       |              |        |              |     |              |      |              |       |             
|Cash flows from operating activities:          |                                                                                                    |                                                   |                                                          |       |              |        |              |       |              |        |              |     |              |      |              |       |              |        |   |      |     |      |   |     |     |      |   |     
|                                               | Net Income (loss)                                                                                  |                                                   |                                                          | 1,304 |              |        |              | 1,594 |              |        |              | 117 |              |      |              | 1,519 |              |        |   | (290 | )   |      |   | 436 |     |      |   | (491 | )  
|                                               | Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities: |                                                   |                                                          |       |              |        |              |       |              |        |              |     |              |      |              |       |              |        |   |      |     |      |   |     |     |      |   |      |    
|                                               |                                                                                                    | Depreciation and amortization                     |                                                          |       | 482          |        |              |       | 1,702        |        |              |     | 694          |      |              |       | 1,244        |        |   |      | 566 |      |   |     | 341 |      |   |      | 341 |     
|                                               |                                                                                                    | Equity in earnings                                |                                                          |       |             |        |              |       |             |        |              |     |             |      |              |       |             |        |   |      |    |      |   |     |    |      |   |      |    |     
|                                               |                                                                                                    | Loss on fair value of non-hedging derivatives     |                                                          |       |             |        |              |       |             |        |              |     |             |      |              |       |             |        |   |      |    |      |   |     |    |      |   |      |    |     
|                                               |                                                                                                    | Loss on sale of assets, before tax effect         |                                                          |       |             |        |              |       |             |        |              |     |             |      |              |       |             |        |   |      |    |      |   |     |    |      |   |      |    |     
|                                               |                                                                                                    | Write off of deferred financing costs             |                                                          |       |             |        |              |       |             |        |              |     |             |      |              |       |             |        |   |      |    |      |   |     |    |      |   |      |    |     
|                                               |                                                                                                    | Minority interests                                |                                                          |       |             |        |              |       |             |        |              |     |             |      |              |       |             |        |   |      |    |      |   |     |    |      |   |      |    |     
|                                               |                                                                                                    | Amortization of unearned stock based compensation |                                                          |       |             |        |              |       |             |        |              |     |             |      |              |       |             |        |   |      |    |      |   |     |    |      |   |      |    |     
|                                               |                                                                                                    | Interest rate swaps marked to fair value          |                                                          |       |             |        |              |       |             |        |              |     |             |      |              |       |             |        |   |      |    |      |   |     |    |      |   |      |    |     
|                                               |                                                                                                    | Deferred income taxes                             |                                                          |       |             |        |              |       |             |        |              |     |             |      |              |       |             |        |   |      |    |      |   |     |    |      |   |      |    |     
|                                               |                                                                                                    | Changes in operating assets and liabilities:      |                                                          |       |              |        |              |       |              |        |              |     |              |      |              |       |              |        |   |      |     |      |   |     |     |      |   |      |     |     
|                                               |                                                                                                    |                                                   | Accounts receivable, net                                 |       |              | (81    | )            |       |              |       |              |     |              |     |              |       |              | 40     |   |      |     |     |   |     |     |     |   |      |     |     |  
|                                               |                                                                                                    |                                                   | Prepaid expenses and other                               |       |              |       |              |       |              |       |              |     |              |     |              |       |              |       |   |      |     |     |   |     |     |     |   |      |     |     |  
|                                               |                                                                                                    |                                                   | Due from/to Interstate Hotels                            |       |              |       |              |       |              |       |              |     |              |     |              |       |              |       |   |      |     |     |   |     |     |     |   |      |     |     |  
|                                               |                                                                                                    |                                                   | Accounts payable, accrued expenses and other liabilities |       |              | (108   | )            |       |              | (406   | )            |     |              | 199  |              |       |              | 471    |   |      |     | (186 | ) |     |     | (90  | ) |      |     | (28  | )
|                                               |                                                                                                    |                                                   | Accrued interest                                         |       |              |       |              |       |              | 46     |              |     |              |     |              |       |              |       |   |      |     |     |   |     |     |     |   |      |     |     |  
|                                               |                                                                                                    |                                                   | Due from subsidiaries                                    |       |              | (1,369 | )            |       |              | (2,402 | )            |     |              | (975 | )            |       |              | (3,136 | ) |      |     | 24   |   |     |     | (590 | ) |      |     | 364  |  
|                                               |                                                                                                    |                                                   | Income taxes payable                                     |       |              |       |              |       |              |       |              |     |              |     |              |       |              |       |   |      |     |     |   |     |     |     |   |      |     |     |  
|                                               |                                                                                                    |                                                   |                                                          |       |              |        |              |       |              |        |              |     |              |      |              |       |              |        |   |      |     |      |   |     |     |      |   |     
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) operating activities      |       |              | 228    |              |       |              | 533    |              |     |              | 35   |              |       |              | 138    |   |      |     | 113  |   |     |     | 97   |   |      |     | 187  |  
|                                               |                                                                                                    |                                                   |                                                          |       |              |        |              |       |              |        |              |     |              |      |              |       |              |        |   |      |     |      |   |     |     |      |   |     
|Cash flows from investing activities:          |                                                                                                    |                                                   |                                                          |       |              |        |              |       |              |        |              |     |              |      |              |       |              |        |   |      |     |      |   |     |     |      |   |     
|                                               | Investment in hotel properties, net                                                                |                                                   |                                                          | (228  | )            |        |              | (533  | )            |        |              | (35 | )            |      |              | (138  | )            |        |   | (113 | )   |      |   | (97 | )   |      |   | (187 | )  
|                                               | Proceeds from disposition of assets                                                                |                                                   |                                                          |      |              |        |              |      |              |        |              |    |              |      |              |      |              |        |   |     |     |      |   |    |     |      |   |     |    
|                                               | Repayments of note receivable                                                                      |                                                   |                                                          |      |              |        |              |      |              |        |              |    |              |      |              |      |              |        |   |     |     |      |   |    |     |      |   |     |    
|                                               | Change in restricted cash                                                                          |                                                   |                                                          |      |              |        |              |      |              |        |              |    |              |      |              |      |              |        |   |     |     |      |   |    |     |      |   |     |    
|                                               |                                                                                                    |                                                   |                                                          |       |              |        |              |       |              |        |              |     |              |      |              |       |              |        |   |      |     |      |   |     |     |      |   |     
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) investing activities      |       |              | (228   | )            |       |              | (533   | )            |     |              | (35  | )            |       |              | (138   | ) |      |     | (113 | ) |     |     | (97  | ) |      |     | (187 | )
|                                               |                                                                                                    |                                                   |                                                          |       |              |        |              |       |              |        |              |     |              |      |              |       |              |        |   |      |     |      |   |     |     |      |   |     
|Cash flows from financing activities:          |                                                                                                    |                                                   |                                                          |       |              |        |              |       |              |        |              |     |              |      |              |       |              |        |   |      |     |      |   |     |     |      |   |     
|                                               | Deferred financing costs                                                                           |                                                   |                                                          |      |              |        |              |      |              |        |              |    |              |      |              |      |              |        |   |     |     |      |   |    |     |      |   |     |    
|                                               | Proceeds from issuances mortgages and notes payable                                                |                                                   |                                                          |      |              |        |              |      |              |        |              |    |              |      |              |      |              |        |   |     |     |      |   |    |     |      |   |     |    
|                                               | Principal payments on mortgages and notes payable                                                  |                                                   |                                                          |      |              |        |              |      |              |        |              |    |              |      |              |      |              |        |   |     |     |      |   |    |     |      |   |     |    
|                                               | Repurchase of units                                                                                |                                                   |                                                          |      |              |        |              |      |              |        |              |    |              |      |              |      |              |        |   |     |     |      |   |    |     |      |   |     |    
|                                               | Contributions from partners                                                                        |                                                   |                                                          |      |              |        |              |      |              |        |              |    |              |      |              |      |              |        |   |     |     |      |   |    |     |      |   |     |    
|                                               | Distributions paid to partners                                                                     |                                                   |                                                          |      |              |        |              |      |              |        |              |    |              |      |              |      |              |        |   |     |     |      |   |    |     |      |   |     |    
|                                               |                                                                                                    |                                                   |                                                          |       |              |        |              |       |              |        |              |     |              |      |              |       |              |        |   |      |     |      |   |     |     |      |   |     
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) financing activities      |       |              |       |              |       |              |       |              |     |              |     |              |       |              |       |   |      |     |     |   |     |     |     |   |      |     |     |  
|                                               |                                                                                                    |                                                   |                                                          |       |              |        |              |       |              |        |              |     |              |      |              |       |              |        |   |      |     |      |   |     |     |      |   |     
|Effect of exchange rate changes on cash        |                                                                                                    |                                                   |                                                         |       |              |        |             |       |              |        |             |     |              |      |             |       |              |        |  |      |     |      |  |     |     |      |  |     
|                                               |                                                                                                    |                                                   |                                                          |       |              |        |              |       |              |        |              |     |              |      |              |       |              |        |   |      |     |      |   |     |     |      |   |     
|Net change in cash                             |                                                                                                    |                                                   |                                                         |       |              |        |             |       |              |        |             |     |              |      |             |       |              |        |  |      |     |      |  |     |     |      |  |     
|Cash and cash equivalents, beginning of period |                                                                                                    |                                                   |                                                         |       |              |        |             |       |              |        |             |     |              |      |             |       |              |        |  |      |     |      |  |     |     |      |  |     
|                                               |                                                                                                    |                                                   |                                                          |       |              |        |              |       |              |        |              |     |              |      |              |       |              |        |   |      |     |      |   |     |     |      |   |     
|Cash and cash equivalents, end of period       |                                                                                                    |                                                   |                                                         |       |              |        |             |       |              |        |             |     |              |      |             |       |              |        |  |      |     |      |  |     |     |      |  |     
|                                               |                                                                                                    |                                                   |                                                          |       |              |        |              |       |              |        |              |     |              |      |              |       |              |        |   |      |     |      |   |     |     |      |   |     



---



##### 



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

|                                               |                                                                                                    |                                                   |                                                          |        |              |      |              |      |              |        |            |      |              |      |              |       |              |        |   |     |     |      |   |      |     |      |   |      |     |        |  
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- | ------------------------------------------------- | -------------------------------------------------------- | ------ | ------------ | ---- | ------------ | ---- | ------------ | ------ | ---------- | ---- | ------------ | ---- | ------------ | ----- | ------------ | ------ | - | --- | --- | ---- | - | ---- | --- | ---- | - | ---- | --- | ------ | -
|                                               |                                                                                                    |                                                   |                                                          |        | MeriStar Sub |      | MeriStar Sub |      | MeriStar Sub |        | AGH PSS I, |      | MeriStar Sub |      | MeriStar Sub |       | MeriStar Sub
|                                               |                                                                                                    |                                                   |                                                          |        | 5D, LLC      |      | 5H, LLC      |      | 7H, LLC      |        | Inc.       |      | 2D, LLC      |      | 4F, L.P.     |       | 5K, LLC     
|                                               |                                                                                                    |                                                   |                                                          |        |              |      |              |      |              |        |            |      |              |      |              |       |             
|Cash flows from operating activities:          |                                                                                                    |                                                   |                                                          |        |              |      |              |      |              |        |            |      |              |      |              |       |              |        |   |     |     |      |   |      |     |      |   |     
|                                               | Net Income (loss)                                                                                  |                                                   |                                                          | (1,026 | )            |      |              | 627  |              |        |            | 337  |              |      |              | 1,531 |              |        |   | (72 | )   |      |   | 311  |     |      |   | 846  |    
|                                               | Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities: |                                                   |                                                          |        |              |      |              |      |              |        |            |      |              |      |              |       |              |        |   |     |     |      |   |      |     |      |   |      |    
|                                               |                                                                                                    | Depreciation and amortization                     |                                                          |        | 1,086        |      |              |      | 1,479        |        |            |      | 341          |      |              |       |             |        |   |     | 355 |      |   |      | 840 |      |   |      | 891 |       
|                                               |                                                                                                    | Equity in earnings                                |                                                          |        |             |      |              |      |             |        |            |      |             |      |              |       |             |        |   |     |    |      |   |      |    |      |   |      |    |       
|                                               |                                                                                                    | Loss on fair value of non-hedging derivatives     |                                                          |        |             |      |              |      |             |        |            |      |             |      |              |       |             |        |   |     |    |      |   |      |    |      |   |      |    |       
|                                               |                                                                                                    | Loss on sale of assets, before tax effect         |                                                          |        |             |      |              |      |             |        |            |      |             |      |              |       |             |        |   |     |    |      |   |      |    |      |   |      |    |       
|                                               |                                                                                                    | Write off of deferred financing costs             |                                                          |        |             |      |              |      |             |        |            |      |             |      |              |       |             |        |   |     |    |      |   |      |    |      |   |      |    |       
|                                               |                                                                                                    | Minority interests                                |                                                          |        |             |      |              |      |             |        |            |      |             |      |              |       |             |        |   |     |    |      |   |      |    |      |   |      |    |       
|                                               |                                                                                                    | Amortization of unearned stock based compensation |                                                          |        |             |      |              |      |             |        |            |      |             |      |              |       |             |        |   |     |    |      |   |      |    |      |   |      |    |       
|                                               |                                                                                                    | Interest rate swaps marked to fair value          |                                                          |        |             |      |              |      |             |        |            |      |             |      |              |       |             |        |   |     |    |      |   |      |    |      |   |      |    |       
|                                               |                                                                                                    | Deferred income taxes                             |                                                          |        |             |      |              |      |             |        |            |      |             |      |              |       |             |        |   |     |    |      |   |      |    |      |   |      |    |       
|                                               |                                                                                                    | Changes in operating assets and liabilities:      |                                                          |        |              |      |              |      |              |        |            |      |              |      |              |       |              |        |   |     |     |      |   |      |     |      |   |      |     |       
|                                               |                                                                                                    |                                                   | Accounts receivable, net                                 |        |              |     |              |      |              |       |            |      |              |     |              |       |              |       |   |     |     |     |   |      |     |     |   |      |     |       |  
|                                               |                                                                                                    |                                                   | Prepaid expenses and other                               |        |              |     |              |      |              |       |            |      |              |     |              |       |              |       |   |     |     |     |   |      |     |     |   |      |     |       |  
|                                               |                                                                                                    |                                                   | Due from/to Interstate Hotels                            |        |              |     |              |      |              |       |            |      |              |     |              |       |              |       |   |     |     |     |   |      |     |     |   |      |     |       |  
|                                               |                                                                                                    |                                                   | Accounts payable, accrued expenses and other liabilities |        |              | 124  |              |      |              | 516    |            |      |              | 83   |              |       |              | 311    |   |     |     | (46  | ) |      |     | (85  | ) |      |     | (1,199 | )
|                                               |                                                                                                    |                                                   | Accrued interest                                         |        |              |     |              |      |              |       |            |      |              |     |              |       |              |       |   |     |     |     |   |      |     |     |   |      |     |       |  
|                                               |                                                                                                    |                                                   | Due from subsidiaries                                    |        |              | 110  |              |      |              | (1,770 | )          |      |              | (571 | )            |       |              | (1,341 | ) |     |     | (150 | ) |      |     | (691 | ) |      |     | 162    |  
|                                               |                                                                                                    |                                                   | Income taxes payable                                     |        |              |     |              |      |              |       |            |      |              |     |              |       |              |       |   |     |     |     |   |      |     |     |   |      |     |       |  
|                                               |                                                                                                    |                                                   |                                                          |        |              |      |              |      |              |        |            |      |              |      |              |       |              |        |   |     |     |      |   |      |     |      |   |     
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) operating activities      |        |              | 294  |              |      |              | 852    |            |      |              | 190  |              |       |              | 501    |   |     |     | 87   |   |      |     | 375  |   |      |     | 700    |  
|                                               |                                                                                                    |                                                   |                                                          |        |              |      |              |      |              |        |            |      |              |      |              |       |              |        |   |     |     |      |   |      |     |      |   |     
|Cash flows from investing activities:          |                                                                                                    |                                                   |                                                          |        |              |      |              |      |              |        |            |      |              |      |              |       |              |        |   |     |     |      |   |      |     |      |   |     
|                                               | Investment in hotel properties, net                                                                |                                                   |                                                          | (294   | )            |      |              | (852 | )            |        |            | (190 | )            |      |              | (501  | )            |        |   | (87 | )   |      |   | (375 | )   |      |   | (700 | )  
|                                               | Proceeds from disposition of assets                                                                |                                                   |                                                          |       |              |      |              |     |              |        |            |     |              |      |              |      |              |        |   |    |     |      |   |     |     |      |   |     |    
|                                               | Repayments of note receivable                                                                      |                                                   |                                                          |       |              |      |              |     |              |        |            |     |              |      |              |      |              |        |   |    |     |      |   |     |     |      |   |     |    
|                                               | Change in restricted cash                                                                          |                                                   |                                                          |       |              |      |              |     |              |        |            |     |              |      |              |      |              |        |   |    |     |      |   |     |     |      |   |     |    
|                                               |                                                                                                    |                                                   |                                                          |        |              |      |              |      |              |        |            |      |              |      |              |       |              |        |   |     |     |      |   |      |     |      |   |     
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) investing activities      |        |              | (294 | )            |      |              | (852   | )          |      |              | (190 | )            |       |              | (501   | ) |     |     | (87  | ) |      |     | (375 | ) |      |     | (700   | )
|                                               |                                                                                                    |                                                   |                                                          |        |              |      |              |      |              |        |            |      |              |      |              |       |              |        |   |     |     |      |   |      |     |      |   |     
|Cash flows from financing activities:          |                                                                                                    |                                                   |                                                          |        |              |      |              |      |              |        |            |      |              |      |              |       |              |        |   |     |     |      |   |      |     |      |   |     
|                                               | Deferred financing costs                                                                           |                                                   |                                                          |       |              |      |              |     |              |        |            |     |              |      |              |      |              |        |   |    |     |      |   |     |     |      |   |     |    
|                                               | Proceeds from issuances mortgages and notes payable                                                |                                                   |                                                          |       |              |      |              |     |              |        |            |     |              |      |              |      |              |        |   |    |     |      |   |     |     |      |   |     |    
|                                               | Principal payments on mortgages and notes payable                                                  |                                                   |                                                          |       |              |      |              |     |              |        |            |     |              |      |              |      |              |        |   |    |     |      |   |     |     |      |   |     |    
|                                               | Repurchase of units                                                                                |                                                   |                                                          |       |              |      |              |     |              |        |            |     |              |      |              |      |              |        |   |    |     |      |   |     |     |      |   |     |    
|                                               | Contributions from partners                                                                        |                                                   |                                                          |       |              |      |              |     |              |        |            |     |              |      |              |      |              |        |   |    |     |      |   |     |     |      |   |     |    
|                                               | Distributions paid to partners                                                                     |                                                   |                                                          |       |              |      |              |     |              |        |            |     |              |      |              |      |              |        |   |    |     |      |   |     |     |      |   |     |    
|                                               |                                                                                                    |                                                   |                                                          |        |              |      |              |      |              |        |            |      |              |      |              |       |              |        |   |     |     |      |   |      |     |      |   |     
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) financing activities      |        |              |     |              |      |              |       |            |      |              |     |              |       |              |       |   |     |     |     |   |      |     |     |   |      |     |       |  
|                                               |                                                                                                    |                                                   |                                                          |        |              |      |              |      |              |        |            |      |              |      |              |       |              |        |   |     |     |      |   |      |     |      |   |     
|Effect of exchange rate changes on cash        |                                                                                                    |                                                   |                                                         |        |              |      |             |      |              |        |           |      |              |      |             |       |              |        |  |     |     |      |  |      |     |      |  |     
|                                               |                                                                                                    |                                                   |                                                          |        |              |      |              |      |              |        |            |      |              |      |              |       |              |        |   |     |     |      |   |      |     |      |   |     
|Net change in cash                             |                                                                                                    |                                                   |                                                         |        |              |      |             |      |              |        |           |      |              |      |             |       |              |        |  |     |     |      |  |      |     |      |  |     
|Cash and cash equivalents, beginning of period |                                                                                                    |                                                   |                                                         |        |              |      |             |      |              |        |           |      |              |      |             |       |              |        |  |     |     |      |  |      |     |      |  |     
|                                               |                                                                                                    |                                                   |                                                          |        |              |      |              |      |              |        |            |      |              |      |              |       |              |        |   |     |     |      |   |      |     |      |   |     
|Cash and cash equivalents, end of period       |                                                                                                    |                                                   |                                                         |        |              |      |             |      |              |        |           |      |              |      |             |       |              |        |  |     |     |      |  |      |     |      |  |     
|                                               |                                                                                                    |                                                   |                                                          |        |              |      |              |      |              |        |            |      |              |      |              |       |              |        |   |     |     |      |   |      |     |      |   |     



---



##### 



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



|                                               |                                                                                                    |                                                   |                                                          |     |              |        |              |     |              |        |              |     |              |      |              |       |              |        |   |        |     |        |   |       |     |        |   |      |     |      |  
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- | ------------------------------------------------- | -------------------------------------------------------- | --- | ------------ | ------ | ------------ | --- | ------------ | ------ | ------------ | --- | ------------ | ---- | ------------ | ----- | ------------ | ------ | - | ------ | --- | ------ | - | ----- | --- | ------ | - | ---- | --- | ---- | -
|                                               |                                                                                                    |                                                   |                                                          |     | MeriStar Sub |        | MeriStar Sub |     | MeriStar Sub |        | MeriStar Sub |     | MeriStar Sub |      | MeriStar Sub |       | MeriStar Sub
|                                               |                                                                                                    |                                                   |                                                          |     | 5M, LLC      |        | 1E, L.P.     |     | 5O, LLC      |        | 6M Company   |     | 4B, L.P.     |      | 6C, LLC      |       | 2C, LLC     
|                                               |                                                                                                    |                                                   |                                                          |     |              |        |              |     |              |        |              |     |              |      |              |       |             
|Cash flows from operating activities:          |                                                                                                    |                                                   |                                                          |     |              |        |              |     |              |        |              |     |              |      |              |       |              |        |   |        |     |        |   |       |     |        |   |     
|                                               | Net Income (loss)                                                                                  |                                                   |                                                          | 848 |              |        |              | 994 |              |        |              | 353 |              |      |              | 2,257 |              |        |   | (356   | )   |        |   | 1,519 |     |        |   | (938 | )  
|                                               | Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities: |                                                   |                                                          |     |              |        |              |     |              |        |              |     |              |      |              |       |              |        |   |        |     |        |   |       |     |        |   |      |    
|                                               |                                                                                                    | Depreciation and amortization                     |                                                          |     | 339          |        |              |     | 223          |        |              |     | 164          |      |              |       | 905          |        |   |        | 414 |        |   |       | 585 |        |   |      | 777 |     
|                                               |                                                                                                    | Equity in earnings                                |                                                          |     |             |        |              |     |             |        |              |     |             |      |              |       |             |        |   |        |    |        |   |       |    |        |   |      |    |     
|                                               |                                                                                                    | Loss on fair value of non-hedging derivatives     |                                                          |     |             |        |              |     |             |        |              |     |             |      |              |       |             |        |   |        |    |        |   |       |    |        |   |      |    |     
|                                               |                                                                                                    | Loss on sale of assets, before tax effect         |                                                          |     |             |        |              |     |             |        |              |     |             |      |              |       |             |        |   |        |    |        |   |       |    |        |   |      |    |     
|                                               |                                                                                                    | Write off of deferred financing costs             |                                                          |     |             |        |              |     |             |        |              |     |             |      |              |       |             |        |   |        |    |        |   |       |    |        |   |      |    |     
|                                               |                                                                                                    | Minority interests                                |                                                          |     |             |        |              |     |             |        |              |     |             |      |              |       |             |        |   |        |    |        |   |       |    |        |   |      |    |     
|                                               |                                                                                                    | Amortization of unearned stock based compensation |                                                          |     |             |        |              |     |             |        |              |     |             |      |              |       |             |        |   |        |    |        |   |       |    |        |   |      |    |     
|                                               |                                                                                                    | Interest rate swaps marked to fair value          |                                                          |     |             |        |              |     |             |        |              |     |             |      |              |       |             |        |   |        |    |        |   |       |    |        |   |      |    |     
|                                               |                                                                                                    | Deferred income taxes                             |                                                          |     |             |        |              |     |             |        |              |     |             |      |              |       |             |        |   |        |    |        |   |       |    |        |   |      |    |     
|                                               |                                                                                                    | Changes in operating assets and liabilities:      |                                                          |     |              |        |              |     |              |        |              |     |              |      |              |       |              |        |   |        |     |        |   |       |     |        |   |      |     |     
|                                               |                                                                                                    |                                                   | Accounts receivable, net                                 |     |              |       |              |     |              |       |              |     |              |     |              |       |              |       |   |        |     |       |   |       |     |       |   |      |     |     |  
|                                               |                                                                                                    |                                                   | Prepaid expenses and other                               |     |              |       |              |     |              |       |              |     |              |     |              |       |              | 13     |   |        |     |       |   |       |     |       |   |      |     |     |  
|                                               |                                                                                                    |                                                   | Due from/to Interstate Hotels                            |     |              |       |              |     |              |       |              |     |              |     |              |       |              |       |   |        |     |       |   |       |     |       |   |      |     |     |  
|                                               |                                                                                                    |                                                   | Accounts payable, accrued expenses and other liabilities |     |              | 136    |              |     |              | 12     |              |     |              | 36   |              |       |              | (93    | ) |        |     | 19     |   |       |     | (66    | ) |      |     | (131 | )
|                                               |                                                                                                    |                                                   | Accrued interest                                         |     |              |       |              |     |              |       |              |     |              |     |              |       |              |       |   |        |     |       |   |       |     |       |   |      |     |     |  
|                                               |                                                                                                    |                                                   | Due from subsidiaries                                    |     |              | (1,224 | )            |     |              | (1,157 | )            |     |              | (501 | )            |       |              | (2,879 | ) |        |     | 1,215  |   |       |     | (1,715 | ) |      |     | 455  |  
|                                               |                                                                                                    |                                                   | Income taxes payable                                     |     |              |       |              |     |              |       |              |     |              |     |              |       |              |       |   |        |     |       |   |       |     |       |   |      |     |     |  
|                                               |                                                                                                    |                                                   |                                                          |     |              |        |              |     |              |        |              |     |              |      |              |       |              |        |   |        |     |        |   |       |     |        |   |     
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) operating activities      |     |              | 99     |              |     |              | 72     |              |     |              | 52   |              |       |              | 203    |   |        |     | 1,292  |   |       |     | 323    |   |      |     | 163  |  
|                                               |                                                                                                    |                                                   |                                                          |     |              |        |              |     |              |        |              |     |              |      |              |       |              |        |   |        |     |        |   |       |     |        |   |     
|Cash flows from investing activities:          |                                                                                                    |                                                   |                                                          |     |              |        |              |     |              |        |              |     |              |      |              |       |              |        |   |        |     |        |   |       |     |        |   |     
|                                               | Investment in hotel properties, net                                                                |                                                   |                                                          | (99 | )            |        |              | (72 | )            |        |              | (52 | )            |      |              | (203  | )            |        |   | (1,292 | )   |        |   | (323  | )   |        |   | (163 | )  
|                                               | Proceeds from disposition of assets                                                                |                                                   |                                                          |    |              |        |              |    |              |        |              |    |              |      |              |      |              |        |   |       |     |        |   |      |     |        |   |     |    
|                                               | Repayments of note receivable                                                                      |                                                   |                                                          |    |              |        |              |    |              |        |              |    |              |      |              |      |              |        |   |       |     |        |   |      |     |        |   |     |    
|                                               | Change in restricted cash                                                                          |                                                   |                                                          |    |              |        |              |    |              |        |              |    |              |      |              |      |              |        |   |       |     |        |   |      |     |        |   |     |    
|                                               |                                                                                                    |                                                   |                                                          |     |              |        |              |     |              |        |              |     |              |      |              |       |              |        |   |        |     |        |   |       |     |        |   |     
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) investing activities      |     |              | (99    | )            |     |              | (72    | )            |     |              | (52  | )            |       |              | (203   | ) |        |     | (1,292 | ) |       |     | (323   | ) |      |     | (163 | )
|                                               |                                                                                                    |                                                   |                                                          |     |              |        |              |     |              |        |              |     |              |      |              |       |              |        |   |        |     |        |   |       |     |        |   |     
|Cash flows from financing activities:          |                                                                                                    |                                                   |                                                          |     |              |        |              |     |              |        |              |     |              |      |              |       |              |        |   |        |     |        |   |       |     |        |   |     
|                                               | Deferred financing costs                                                                           |                                                   |                                                          |    |              |        |              |    |              |        |              |    |              |      |              |      |              |        |   |       |     |        |   |      |     |        |   |     |    
|                                               | Proceeds from issuances mortgages and notes payable                                                |                                                   |                                                          |    |              |        |              |    |              |        |              |    |              |      |              |      |              |        |   |       |     |        |   |      |     |        |   |     |    
|                                               | Principal payments on mortgages and notes payable                                                  |                                                   |                                                          |    |              |        |              |    |              |        |              |    |              |      |              |      |              |        |   |       |     |        |   |      |     |        |   |     |    
|                                               | Repurchase of units                                                                                |                                                   |                                                          |    |              |        |              |    |              |        |              |    |              |      |              |      |              |        |   |       |     |        |   |      |     |        |   |     |    
|                                               | Contributions from partners                                                                        |                                                   |                                                          |    |              |        |              |    |              |        |              |    |              |      |              |      |              |        |   |       |     |        |   |      |     |        |   |     |    
|                                               | Distributions paid to partners                                                                     |                                                   |                                                          |    |              |        |              |    |              |        |              |    |              |      |              |      |              |        |   |       |     |        |   |      |     |        |   |     |    
|                                               |                                                                                                    |                                                   |                                                          |     |              |        |              |     |              |        |              |     |              |      |              |       |              |        |   |        |     |        |   |       |     |        |   |     
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) financing activities      |     |              |       |              |     |              |       |              |     |              |     |              |       |              |       |   |        |     |       |   |       |     |       |   |      |     |     |  
|                                               |                                                                                                    |                                                   |                                                          |     |              |        |              |     |              |        |              |     |              |      |              |       |              |        |   |        |     |        |   |       |     |        |   |     
|Effect of exchange rate changes on cash        |                                                                                                    |                                                   |                                                         |     |              |        |             |     |              |        |             |     |              |      |             |       |              |        |  |        |     |        |  |       |     |        |  |     
|                                               |                                                                                                    |                                                   |                                                          |     |              |        |              |     |              |        |              |     |              |      |              |       |              |        |   |        |     |        |   |       |     |        |   |     
|Net change in cash                             |                                                                                                    |                                                   |                                                         |     |              |        |             |     |              |        |             |     |              |      |             |       |              |        |  |        |     |        |  |       |     |        |  |     
|Cash and cash equivalents, beginning of period |                                                                                                    |                                                   |                                                         |     |              |        |             |     |              |        |             |     |              |      |             |       |              |        |  |        |     |        |  |       |     |        |  |     
|                                               |                                                                                                    |                                                   |                                                          |     |              |        |              |     |              |        |              |     |              |      |              |       |              |        |   |        |     |        |   |       |     |        |   |     
|Cash and cash equivalents, end of period       |                                                                                                    |                                                   |                                                         |     |              |        |             |     |              |        |             |     |              |      |             |       |              |        |  |        |     |        |  |       |     |        |  |     
|                                               |                                                                                                    |                                                   |                                                          |     |              |        |              |     |              |        |              |     |              |      |              |       |              |        |   |        |     |        |   |       |     |        |   |     



---



##### 



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

|                                               |                                                                                                    |                                                   |                                                          |     |              |        |              |      |              |      |              |        |              |        |              |     |              |      |   |        |       |        |   |       |     |        |   |      |       |        |  
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- | ------------------------------------------------- | -------------------------------------------------------- | --- | ------------ | ------ | ------------ | ---- | ------------ | ---- | ------------ | ------ | ------------ | ------ | ------------ | --- | ------------ | ---- | - | ------ | ----- | ------ | - | ----- | --- | ------ | - | ---- | ----- | ------ | -
|                                               |                                                                                                    |                                                   |                                                          |     | MeriStar Sub |        | MeriStar Sub |      | MeriStar Sub |      | MeriStar Sub |        | MeriStar Sub |        | MeriStar Sub |     | MeriStar Sub
|                                               |                                                                                                    |                                                   |                                                          |     | 4G, L.P.     |        | 3B, LLC      |      | 5G, L.P.     |      | 5P, LLC      |        | 5J, LLC      |        | 5Q, LLC      |     | 5A, LLC     
|                                               |                                                                                                    |                                                   |                                                          |     |              |        |              |      |              |      |              |        |              |        |              |     |             
|Cash flows from operating activities:          |                                                                                                    |                                                   |                                                          |     |              |        |              |      |              |      |              |        |              |        |              |     |              |      |   |        |       |        |   |       |     |        |   |     
|                                               | Net Income (loss)                                                                                  |                                                   |                                                          | 744 |              |        |              | (42  | )            |      |              | 2,575  |              |        |              | 436 |              |      |   | 3,482  |       |        |   | 1,068 |     |        |   | 905  |      
|                                               | Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities: |                                                   |                                                          |     |              |        |              |      |              |      |              |        |              |        |              |     |              |      |   |        |       |        |   |       |     |        |   |      |      
|                                               |                                                                                                    | Depreciation and amortization                     |                                                          |     | 687          |        |              |      | 691          |      |              |        | 4,643        |        |              |     | 2            |      |   |        | 2,604 |        |   |       | 360 |        |   |      | 1,055 |       
|                                               |                                                                                                    | Equity in earnings                                |                                                          |     |             |        |              |      |             |      |              |        |             |        |              |     |             |      |   |        |      |        |   |       |    |        |   |      |      |       
|                                               |                                                                                                    | Loss on fair value of non-hedging derivatives     |                                                          |     |             |        |              |      |             |      |              |        |             |        |              |     |             |      |   |        |      |        |   |       |    |        |   |      |      |       
|                                               |                                                                                                    | Loss on sale of assets, before tax effect         |                                                          |     |             |        |              |      |             |      |              |        |             |        |              |     |             |      |   |        |      |        |   |       |    |        |   |      |      |       
|                                               |                                                                                                    | Write off of deferred financing costs             |                                                          |     |             |        |              |      |             |      |              |        |             |        |              |     |             |      |   |        |      |        |   |       |    |        |   |      |      |       
|                                               |                                                                                                    | Minority interests                                |                                                          |     |             |        |              |      |             |      |              |        |             |        |              |     |             |      |   |        |      |        |   |       |    |        |   |      |      |       
|                                               |                                                                                                    | Amortization of unearned stock based compensation |                                                          |     |             |        |              |      |             |      |              |        |             |        |              |     |             |      |   |        |      |        |   |       |    |        |   |      |      |       
|                                               |                                                                                                    | Interest rate swaps marked to fair value          |                                                          |     |             |        |              |      |             |      |              |        |             |        |              |     |             |      |   |        |      |        |   |       |    |        |   |      |      |       
|                                               |                                                                                                    | Deferred income taxes                             |                                                          |     |             |        |              |      |             |      |              |        |             |        |              |     |             |      |   |        |      |        |   |       |    |        |   |      |      |       
|                                               |                                                                                                    | Changes in operating assets and liabilities:      |                                                          |     |              |        |              |      |              |      |              |        |              |        |              |     |              |      |   |        |       |        |   |       |     |        |   |      |       |       
|                                               |                                                                                                    |                                                   | Accounts receivable, net                                 |     |              |       |              |      |              |     |              |        |              |       |              |     |              | 319  |   |        |       |       |   |       |     |       |   |      |       |       |  
|                                               |                                                                                                    |                                                   | Prepaid expenses and other                               |     |              |       |              |      |              |     |              |        |              |       |              |     |              |     |   |        |       | 483    |   |       |     |       |   |      |       |       |  
|                                               |                                                                                                    |                                                   | Due from/to Interstate Hotels                            |     |              |       |              |      |              |     |              |        |              |       |              |     |              |     |   |        |       |       |   |       |     |       |   |      |       |       |  
|                                               |                                                                                                    |                                                   | Accounts payable, accrued expenses and other liabilities |     |              | (172   | )            |      |              | 134  |              |        |              | 921    |              |     |              | 8    |   |        |       | 521    |   |       |     | 137    |   |      |       | 497    |  
|                                               |                                                                                                    |                                                   | Accrued interest                                         |     |              |       |              |      |              |     |              |        |              |       |              |     |              |     |   |        |       |       |   |       |     |       |   |      |       |       |  
|                                               |                                                                                                    |                                                   | Due from subsidiaries                                    |     |              | (1,163 | )            |      |              | (297 | )            |        |              | (6,957 | )            |     |              | (726 | ) |        |       | (4,781 | ) |       |     | (1,079 | ) |      |       | (2,209 | )
|                                               |                                                                                                    |                                                   | Income taxes payable                                     |     |              |       |              |      |              |     |              |        |              |       |              |     |              |     |   |        |       |       |   |       |     |       |   |      |       |       |  
|                                               |                                                                                                    |                                                   |                                                          |     |              |        |              |      |              |      |              |        |              |        |              |     |              |      |   |        |       |        |   |       |     |        |   |     
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) operating activities      |     |              | 96     |              |      |              | 486  |              |        |              | 1,182  |              |     |              | 39   |   |        |       | 2,309  |   |       |     | 486    |   |      |       | 248    |  
|                                               |                                                                                                    |                                                   |                                                          |     |              |        |              |      |              |      |              |        |              |        |              |     |              |      |   |        |       |        |   |       |     |        |   |     
|Cash flows from investing activities:          |                                                                                                    |                                                   |                                                          |     |              |        |              |      |              |      |              |        |              |        |              |     |              |      |   |        |       |        |   |       |     |        |   |     
|                                               | Investment in hotel properties, net                                                                |                                                   |                                                          | (96 | )            |        |              | (486 | )            |      |              | (1,182 | )            |        |              | (39 | )            |      |   | (2,309 | )     |        |   | (486  | )   |        |   | (248 | )    
|                                               | Proceeds from disposition of assets                                                                |                                                   |                                                          |    |              |        |              |     |              |      |              |       |              |        |              |    |              |      |   |       |       |        |   |      |     |        |   |     |      
|                                               | Repayments of note receivable                                                                      |                                                   |                                                          |    |              |        |              |     |              |      |              |       |              |        |              |    |              |      |   |       |       |        |   |      |     |        |   |     |      
|                                               | Change in restricted cash                                                                          |                                                   |                                                          |    |              |        |              |     |              |      |              |       |              |        |              |    |              |      |   |       |       |        |   |      |     |        |   |     |      
|                                               |                                                                                                    |                                                   |                                                          |     |              |        |              |      |              |      |              |        |              |        |              |     |              |      |   |        |       |        |   |       |     |        |   |     
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) investing activities      |     |              | (96    | )            |      |              | (486 | )            |        |              | (1,182 | )            |     |              | (39  | ) |        |       | (2,309 | ) |       |     | (486   | ) |      |       | (248   | )
|                                               |                                                                                                    |                                                   |                                                          |     |              |        |              |      |              |      |              |        |              |        |              |     |              |      |   |        |       |        |   |       |     |        |   |     
|Cash flows from financing activities:          |                                                                                                    |                                                   |                                                          |     |              |        |              |      |              |      |              |        |              |        |              |     |              |      |   |        |       |        |   |       |     |        |   |     
|                                               | Deferred financing costs                                                                           |                                                   |                                                          |    |              |        |              |     |              |      |              |       |              |        |              |    |              |      |   |       |       |        |   |      |     |        |   |     |      
|                                               | Proceeds from issuances mortgages and notes payable                                                |                                                   |                                                          |    |              |        |              |     |              |      |              |       |              |        |              |    |              |      |   |       |       |        |   |      |     |        |   |     |      
|                                               | Principal payments on mortgages and notes payable                                                  |                                                   |                                                          |    |              |        |              |     |              |      |              |       |              |        |              |    |              |      |   |       |       |        |   |      |     |        |   |     |      
|                                               | Repurchase of units                                                                                |                                                   |                                                          |    |              |        |              |     |              |      |              |       |              |        |              |    |              |      |   |       |       |        |   |      |     |        |   |     |      
|                                               | Contributions from partners                                                                        |                                                   |                                                          |    |              |        |              |     |              |      |              |       |              |        |              |    |              |      |   |       |       |        |   |      |     |        |   |     |      
|                                               | Distributions paid to partners                                                                     |                                                   |                                                          |    |              |        |              |     |              |      |              |       |              |        |              |    |              |      |   |       |       |        |   |      |     |        |   |     |      
|                                               |                                                                                                    |                                                   |                                                          |     |              |        |              |      |              |      |              |        |              |        |              |     |              |      |   |        |       |        |   |       |     |        |   |     
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) financing activities      |     |              |       |              |      |              |     |              |        |              |       |              |     |              |     |   |        |       |       |   |       |     |       |   |      |       |       |  
|                                               |                                                                                                    |                                                   |                                                          |     |              |        |              |      |              |      |              |        |              |        |              |     |              |      |   |        |       |        |   |       |     |        |   |     
|Effect of exchange rate changes on cash        |                                                                                                    |                                                   |                                                         |     |              |        |             |      |              |      |             |        |              |        |             |     |              |      |  |        |       |        |  |       |     |        |  |     
|                                               |                                                                                                    |                                                   |                                                          |     |              |        |              |      |              |      |              |        |              |        |              |     |              |      |   |        |       |        |   |       |     |        |   |     
|Net change in cash                             |                                                                                                    |                                                   |                                                         |     |              |        |             |      |              |      |             |        |              |        |             |     |              |      |  |        |       |        |  |       |     |        |  |     
|Cash and cash equivalents, beginning of period |                                                                                                    |                                                   |                                                         |     |              |        |             |      |              |      |             |        |              |        |             |     |              |      |  |        |       |        |  |       |     |        |  |     
|                                               |                                                                                                    |                                                   |                                                          |     |              |        |              |      |              |      |              |        |              |        |              |     |              |      |   |        |       |        |   |       |     |        |   |     
|Cash and cash equivalents, end of period       |                                                                                                    |                                                   |                                                         |     |              |        |             |      |              |      |             |        |              |        |             |     |              |      |  |        |       |        |  |       |     |        |  |     
|                                               |                                                                                                    |                                                   |                                                          |     |              |        |              |      |              |      |              |        |              |        |              |     |              |      |   |        |       |        |   |       |     |        |   |     

10



---



##### 



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

|                                               |                                                                                                    |                                                   |                                                          |      |              |        |              |       |                |        |              |         |              |        |       |         |        |   |        |          |        |         |  
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- | ------------------------------------------------- | -------------------------------------------------------- | ---- | ------------ | ------ | ------------ | ----- | -------------- | ------ | ------------ | ------- | ------------ | ------ | ----- | ------- | ------ | - | ------ | -------- | ------ | ------- | -
|                                               |                                                                                                    |                                                   |                                                          |      | MeriStar Sub |        | MeriStar Sub |       | MeriStar Hotel |        |              |         |              |        | Total
|                                               |                                                                                                    |                                                   |                                                          |      | 8D, LLC      |        | 4J, LLC      |       | Lessee, Inc.   |        | Eliminations |         | Consolidated
|                                               |                                                                                                    |                                                   |                                                          |      |              |        |              |       |                |        |              |         |             
|Cash flows from operating activities:          |                                                                                                    |                                                   |                                                          |      |              |        |              |       |                |        |              |         |              |        |       |         |        |   |        |         
|                                               | Net Income (loss)                                                                                  |                                                   |                                                          | 485  |              |        |              | 1,040 |                |        |              | (17,046 | )            |        |       | (55,165 | )      |   |        | (37,560  | )     
|                                               | Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities: |                                                   |                                                          |      |              |        |              |       |                |        |              |         |              |        |       |         |        |   |        |          |       
|                                               |                                                                                                    | Depreciation and amortization                     |                                                          |      | 951          |        |              |       | 1,007          |        |              |         | 1,221        |        |       |         |       |   |        |          | 91,770 |        
|                                               |                                                                                                    | Equity in earnings                                |                                                          |      |             |        |              |       |               |        |              |         |             |        |       |         | 55,165 |   |        |          |       |        
|                                               |                                                                                                    | Loss on fair value of non-hedging derivatives     |                                                          |      |             |        |              |       |               |        |              |         |             |        |       |         |       |   |        |          | 4,735  |        
|                                               |                                                                                                    | Loss on sale of assets, before tax effect         |                                                          |      |             |        |              |       |               |        |              |         |             |        |       |         |       |   |        |          | 6,403  |        
|                                               |                                                                                                    | Write off of deferred financing costs             |                                                          |      |             |        |              |       |               |        |              |         |             |        |       |         |       |   |        |          | 1,529  |        
|                                               |                                                                                                    | Minority interests                                |                                                          |      |             |        |              |       |               |        |              |         |             |        |       |         |       |   |        |          | (10    | )      
|                                               |                                                                                                    | Amortization of unearned stock based compensation |                                                          |      |             |        |              |       |               |        |              |         |             |        |       |         |       |   |        |          | 3,041  |        
|                                               |                                                                                                    | Interest rate swaps marked to fair value          |                                                          |      |             |        |              |       |               |        |              |         |             |        |       |         |       |   |        |          | (4,787 | )      
|                                               |                                                                                                    | Deferred income taxes                             |                                                          |      |             |        |              |       |               |        |              |         |             |        |       |         |       |   |        |          | (772   | )      
|                                               |                                                                                                    | Changes in operating assets and liabilities:      |                                                          |      |              |        |              |       |                |        |              |         |              |        |       |         |        |   |        |          |        |        
|                                               |                                                                                                    |                                                   | Accounts receivable, net                                 |      |              |       |              |       |                | 40     |              |         |              | (70    | )     |         |        |  |        |          |        | (5,613  | )
|                                               |                                                                                                    |                                                   | Prepaid expenses and other                               |      |              | 1      |              |       |                |       |              |         |              | (798   | )     |         |        |  |        |          |        | (5,051  | )
|                                               |                                                                                                    |                                                   | Due from/to Interstate Hotels                            |      |              |       |              |       |                |       |              |         |              | 1,384  |       |         |        |  |        |          |        | 5,762   |  
|                                               |                                                                                                    |                                                   | Accounts payable, accrued expenses and other liabilities |      |              | (41    | )            |       |                | 15     |              |         |              | (2,164 | )     |         |        |  |        |          |        | (6,444  | )
|                                               |                                                                                                    |                                                   | Accrued interest                                         |      |              |       |              |       |                |       |              |         |              | 50     |       |         |        |  |        |          |        | (3,865  | )
|                                               |                                                                                                    |                                                   | Due from subsidiaries                                    |      |              | (1,240 | )            |       |                | (1,924 | )            |         |              | 7,727  |       |         |        |  |        |          |        |        |  
|                                               |                                                                                                    |                                                   | Income taxes payable                                     |      |              |       |              |       |                |       |              |         |              |       |       |         |        |  |        |          |        | (629    | )
|                                               |                                                                                                    |                                                   |                                                          |      |              |        |              |       |                |        |              |         |              |        |       |         |        |   |        |         
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) operating activities      |      |              | 156    |              |       |                | 178    |              |         |              | (9,696 | )     |         |        |  |        |          |        | 48,509  |  
|                                               |                                                                                                    |                                                   |                                                          |      |              |        |              |       |                |        |              |         |              |        |       |         |        |   |        |         
|Cash flows from investing activities:          |                                                                                                    |                                                   |                                                          |      |              |        |              |       |                |        |              |         |              |        |       |         |        |   |        |         
|                                               | Investment in hotel properties, net                                                                |                                                   |                                                          | (156 | )            |        |              | (178  | )              |        |              | (881    | )            |        |       |        |        |   |        | (35,824  | )     
|                                               | Proceeds from disposition of assets                                                                |                                                   |                                                          |     |              |        |              |      |                |        |              |        |              |        |       |        |        |   |        | 25,150   |       
|                                               | Repayments of note receivable                                                                      |                                                   |                                                          |     |              |        |              |      |                |        |              | (678    | )            |        |       |        |        |   |        | (7,000   | )     
|                                               | Change in restricted cash                                                                          |                                                   |                                                          |     |              |        |              |      |                |        |              |        |              |        |       |        |        |   |        | 4,861    |       
|                                               |                                                                                                    |                                                   |                                                          |      |              |        |              |       |                |        |              |         |              |        |       |         |        |   |        |         
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) investing activities      |      |              | (156   | )            |       |                | (178   | )            |         |              | (1,559 | )     |         |        |  |        |          |        | (12,813 | )
|                                               |                                                                                                    |                                                   |                                                          |      |              |        |              |       |                |        |              |         |              |        |       |         |        |   |        |         
|Cash flows from financing activities:          |                                                                                                    |                                                   |                                                          |      |              |        |              |       |                |        |              |         |              |        |       |         |        |   |        |         
|                                               | Deferred financing costs                                                                           |                                                   |                                                          |     |              |        |              |      |                |        |              |        |              |        |       |        |        |   |        | (3,416   | )     
|                                               | Proceeds from issuances mortgages and notes payable                                                |                                                   |                                                          |     |              |        |              |      |                |        |              | 13,500  |              |        |       |        |        |   |        | 283,138  |       
|                                               | Principal payments on mortgages and notes payable                                                  |                                                   |                                                          |     |              |        |              |      |                |        |              |         |              |        |       |        |        |   |        | (313,618 | )     
|                                               | Repurchase of units                                                                                |                                                   |                                                          |     |              |        |              |      |                |        |              |        |              |        |       |        |        |   |        | (1,193   | )     
|                                               | Contributions from partners                                                                        |                                                   |                                                          |     |              |        |              |      |                |        |              |        |              |        |       |        |        |   |        | 3,156    |       
|                                               | Distributions paid to partners                                                                     |                                                   |                                                          |     |              |        |              |      |                |        |              |        |              |        |       |        |        |   |        | (2,467   | )     
|                                               |                                                                                                    |                                                   |                                                          |      |              |        |              |       |                |        |              |         |              |        |       |         |        |   |        |         
|                                               |                                                                                                    |                                                   | Net cash provided by (used in) financing activities      |      |              |       |              |       |                |       |              |         |              | 13,500 |       |         |        |  |        |          |        | (34,400 | )
|                                               |                                                                                                    |                                                   |                                                          |      |              |        |              |       |                |        |              |         |              |        |       |         |        |   |        |         
|Effect of exchange rate changes on cash        |                                                                                                    |                                                   |                                                         |      |              |        |             |       |                |        |             |         |              |        |      |         |        |   | (9     | )       
|                                               |                                                                                                    |                                                   |                                                          |      |              |        |              |       |                |        |              |         |              |        |       |         |        |   |        |         
|Net change in cash                             |                                                                                                    |                                                   |                                                         |      |              |        |             |       |                |        | 2,245        |         |              |        |      |         |        |   | 1,287  |         
|Cash and cash equivalents, beginning of period |                                                                                                    |                                                   |                                                         |      |              |        |             |       |                |        | 16,643       |         |              |        |      |         |        |   | 23,441 |         
|                                               |                                                                                                    |                                                   |                                                          |      |              |        |              |       |                |        |              |         |              |        |       |         |        |   |        |         
|Cash and cash equivalents, end of period       |                                                                                                    |                                                   |                                                         |      |              |        |             |       |                |        | 18,888       |         |              |        |      |         |        |   | 24,728 |         
|                                               |                                                                                                    |                                                   |                                                          |      |              |        |              |       |                |        |              |         |              |        |       |         |        |   |        |         



---



##### 



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



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





---



##### 



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

|                                                      |                                                          |  |              |        |              |  |              |    |              |  |              |        |              |  |        |        |   |  |        |        |   |  |        |        |  
|----------------------------------------------------- | -------------------------------------------------------- |  | ------------ | ------ | ------------ |  | ------------ | -- | ------------ |  | ------------ | ------ | ------------ |  | ------ | ------ | - |  | ------ | ------ | - |  | ------ | ------ | -
|                                                      |                                                          |  | MeriStar Sub |        | MeriStar Sub |  | MeriStar Sub |    | MeriStar Sub |  | MeriStar Sub |        | MeriStar Sub
|                                                      |                                                          |  | 8F, L.P.     |        | 8G, LLC      |  | 6H, L.P.     |    | 8B, LLC      |  | 1C, L.P.     |        | 8E, LLC     
|                                                      |                                                          |  |              |        |              |  |              |    |              |  |              |        |             
|Assets                                                |                                                          |  |              |        |              |  |              |    |              |  |              |        |              |  |        |        |   |  |        |        |   |  |        |       
|                                                      | Investment in hotel properties                           |  |              | 11,335 |              |  |              |   |              |  |              | 13,569 |              |  |        | 80,972 |   |  |        | 24,925 |   |  |        | 15,157 |  
|                                                      | Accumulated depreciation                                 |  |              | (1,481 | )            |  |              |   |              |  |              | (1,445 | )            |  |        | (7,509 | ) |  |        | (3,865 | ) |  |        | (1,850 | )
|                                                      |                                                          |  |              |        |              |  |              |    |              |  |              |        |              |  |        |        |   |  |        |        |   |  |        |       
|                                                      |                                                          |  | 9,854        |        |              |  |             |    |              |  | 12,124       |        |              |  | 73,463 |        |   |  | 21,060 |        |   |  | 13,307 |       
|                                                      | Cash and cash equivalents                                |  |              |       |              |  |              |   |              |  |              |       |              |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Accounts receivable, net                                 |  |              | (20    | )            |  |              |   |              |  |              |       |              |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Prepaid expenses and other                               |  |              | 21     |              |  |              |   |              |  |              |       |              |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Note receivable from MeriStar Hotels & Resorts           |  |              |       |              |  |              |   |              |  |              |       |              |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Due from MeriStar Hotels & Resorts                       |  |              |       |              |  |              |   |              |  |              |       |              |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Due from subsidiaries                                    |  |              | 3,889  |              |  |              | 82 |              |  |              | 4,467  |              |  |        | 21,498 |   |  |        | (3,297 | ) |  |        | 4,323  |  
|                                                      | Investments in affiliates                                |  |              |       |              |  |              |   |              |  |              |       |              |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Restricted cash                                          |  |              | 115    |              |  |              |   |              |  |              |       |              |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Intangible assets, net                                   |  |              |       |              |  |              |   |              |  |              |       |              |  |        | 52     |   |  |        | 2      |   |  |        | 9      |  
|                                                      |                                                          |  |              |        |              |  |              |    |              |  |              |        |              |  |        |        |   |  |        |        |   |  |        |       
|                                                      |                                                          |  | 13,859       |        |              |  | 82           |    |              |  | 16,591       |        |              |  | 95,013 |        |   |  | 17,765 |        |   |  | 17,639 |       
|                                                      |                                                          |  |              |        |              |  |              |    |              |  |              |        |              |  |        |        |   |  |        |        |   |  |        |       
|Liabilities, Minority Interests and Partners capital |                                                          |  |              |        |              |  |              |    |              |  |              |        |              |  |        |        |   |  |        |        |   |  |        |       
|                                                      | Accounts payable, accrued expenses and other liabilities |  |              | 160    |              |  |              |   |              |  |              | 184    |              |  |        | 2,412  |   |  |        | 45     |   |  |        | 8      |  
|                                                      | Accrued interest                                         |  |              |       |              |  |              |   |              |  |              |       |              |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Income taxes payable                                     |  |              |       |              |  |              |   |              |  |              |       |              |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Dividends and Distributions payable                      |  |              |       |              |  |              |   |              |  |              |       |              |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Deferred income taxes                                    |  |              |       |              |  |              |   |              |  |              |       |              |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Interest rate swaps                                      |  |              |       |              |  |              |   |              |  |              |       |              |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Notes payable to MeriStar Hospitality                    |  |              |       |              |  |              |   |              |  |              |       |              |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Long-term debt                                           |  |              |       |              |  |              |   |              |  |              |       |              |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      |                                                          |  |              |        |              |  |              |    |              |  |              |        |              |  |        |        |   |  |        |        |   |  |        |       
|Total liabilities                                     |                                                          |  | 160          |        |              |  |             |    |              |  | 184          |        |              |  | 2,412  |        |   |  | 45     |        |   |  | 8      |       
|                                                      |                                                          |  |              |        |              |  |              |    |              |  |              |        |              |  |        |        |   |  |        |        |   |  |        |       
|                                                      | Minority interests                                       |  |              |       |              |  |              |   |              |  |              |       |              |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Redeemable OP units at redemption value                  |  |              |       |              |  |              |   |              |  |              |       |              |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Partners capital                                        |  |              | 13,699 |              |  |              | 82 |              |  |              | 16,407 |              |  |        | 92,601 |   |  |        | 17,720 |   |  |        | 17,631 |  
|                                                      |                                                          |  |              |        |              |  |              |    |              |  |              |        |              |  |        |        |   |  |        |        |   |  |        |       
|                                                      |                                                          |  | 13,859       |        |              |  | 82           |    |              |  | 16,591       |        |              |  | 95,013 |        |   |  | 17,765 |        |   |  | 17,639 |       
|                                                      |                                                          |  |              |        |              |  |              |    |              |  |              |        |              |  |        |        |   |  |        |        |   |  |        |       





---



##### 



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



|                                                      |                                                          |  |              |        |              |  |              |        |              |  |              |        |              |  |              |     |   |  |       |       |   |  |        |        |   |  |        |        |  
|----------------------------------------------------- | -------------------------------------------------------- |  | ------------ | ------ | ------------ |  | ------------ | ------ | ------------ |  | ------------ | ------ | ------------ |  | ------------ | --- | - |  | ----- | ----- | - |  | ------ | ------ | - |  | ------ | ------ | -
|                                                      |                                                          |  | MeriStar Sub |        | MeriStar Sub |  | MeriStar Sub |        | MeriStar Sub |  | Old MeriStar |        | MeriStar Sub |  | MeriStar Sub
|                                                      |                                                          |  | 7F, LLC      |        | 7F, LLC      |  | 3C, LLC      |        | 7F, LLC      |  | Sub 8A, LLC  |        | 6D, LLC      |  | 6E, LLC     
|                                                      |                                                          |  |              |        |              |  |              |        |              |  |              |        |              |  |             
|Assets                                                |                                                          |  |              |        |              |  |              |        |              |  |              |        |              |  |              |     |   |  |       |       |   |  |        |        |   |  |        |       
|                                                      | Investment in hotel properties                           |  |              | 11,985 |              |  |              | 11,292 |              |  |              | 17,274 |              |  |              |    |   |  |       | (1    | ) |  |        | 17,266 |   |  |        | 43,931 |  
|                                                      | Accumulated depreciation                                 |  |              | (1,989 | )            |  |              | (368   | )            |  |              | (2,302 | )            |  |              |    |   |  |       |      |   |  |        | (1,820 | ) |  |        | (6,642 | )
|                                                      |                                                          |  |              |        |              |  |              |        |              |  |              |        |              |  |              |     |   |  |       |       |   |  |        |        |   |  |        |       
|                                                      |                                                          |  | 9,996        |        |              |  | 10,924       |        |              |  | 14,972       |        |              |  |             |     |   |  | (1    | )     |   |  | 15,446 |        |   |  | 37,289 |       
|                                                      | Cash and cash equivalents                                |  |              |       |              |  |              |       |              |  |              |       |              |  |              |    |   |  |       |      |   |  |        |       |   |  |        |       |  
|                                                      | Accounts receivable, net                                 |  |              |       |              |  |              |       |              |  |              |       |              |  |              |    |   |  |       |      |   |  |        | 115    |   |  |        |       |  
|                                                      | Prepaid expenses and other                               |  |              |       |              |  |              |       |              |  |              |       |              |  |              |    |   |  |       | 1     |   |  |        |       |   |  |        |       |  
|                                                      | Note receivable from MeriStar Hotels & Resorts           |  |              |       |              |  |              |       |              |  |              |       |              |  |              |    |   |  |       |      |   |  |        |       |   |  |        |       |  
|                                                      | Due from MeriStar Hotels & Resorts                       |  |              |       |              |  |              |       |              |  |              |       |              |  |              |    |   |  |       |      |   |  |        |       |   |  |        |       |  
|                                                      | Due from subsidiaries                                    |  |              | 3,499  |              |  |              | 3,090  |              |  |              | 2,741  |              |  |              | (43 | ) |  |       | 7,918 |   |  |        | 5,147  |   |  |        | 13,660 |  
|                                                      | Investments in affiliates                                |  |              |       |              |  |              |       |              |  |              |       |              |  |              | 43  |   |  |       |      |   |  |        |       |   |  |        |       |  
|                                                      | Restricted cash                                          |  |              |       |              |  |              |       |              |  |              |       |              |  |              |    |   |  |       |      |   |  |        |       |   |  |        |       |  
|                                                      | Intangible assets, net                                   |  |              |       |              |  |              |       |              |  |              | 59     |              |  |              |    |   |  |       |      |   |  |        |       |   |  |        |       |  
|                                                      |                                                          |  |              |        |              |  |              |        |              |  |              |        |              |  |              |     |   |  |       |       |   |  |        |        |   |  |        |       
|                                                      |                                                          |  | 13,495       |        |              |  | 14,014       |        |              |  | 17,772       |        |              |  |             |     |   |  | 7,918 |       |   |  | 20,708 |        |   |  | 50,949 |       
|                                                      |                                                          |  |              |        |              |  |              |        |              |  |              |        |              |  |              |     |   |  |       |       |   |  |        |        |   |  |        |       
|Liabilities, Minority Interests and Partners capital |                                                          |  |              |        |              |  |              |        |              |  |              |        |              |  |              |     |   |  |       |       |   |  |        |        |   |  |        |       
|                                                      | Accounts payable, accrued expenses and other liabilities |  |              | 168    |              |  |              | 3      |              |  |              | 170    |              |  |              |    |   |  |       | 46    |   |  |        | 101    |   |  |        | (295   | )
|                                                      | Accrued interest                                         |  |              |       |              |  |              |       |              |  |              |       |              |  |              |    |   |  |       |      |   |  |        |       |   |  |        |       |  
|                                                      | Income taxes payable                                     |  |              |       |              |  |              |       |              |  |              |       |              |  |              |    |   |  |       |      |   |  |        |       |   |  |        |       |  
|                                                      | Dividends and Distributions payable                      |  |              |       |              |  |              |       |              |  |              |       |              |  |              |    |   |  |       |      |   |  |        |       |   |  |        |       |  
|                                                      | Deferred income taxes                                    |  |              |       |              |  |              |       |              |  |              |       |              |  |              |    |   |  |       |      |   |  |        |       |   |  |        |       |  
|                                                      | Interest rate swaps                                      |  |              |       |              |  |              |       |              |  |              |       |              |  |              |    |   |  |       |      |   |  |        |       |   |  |        |       |  
|                                                      | Notes payable to MeriStar Hospitality                    |  |              |       |              |  |              |       |              |  |              |       |              |  |              |    |   |  |       |      |   |  |        |       |   |  |        |       |  
|                                                      | Long-term debt                                           |  |              |       |              |  |              |       |              |  |              |       |              |  |              |    |   |  |       |      |   |  |        |       |   |  |        |       |  
|                                                      |                                                          |  |              |        |              |  |              |        |              |  |              |        |              |  |              |     |   |  |       |       |   |  |        |        |   |  |        |       
|Total liabilities                                     |                                                          |  | 168          |        |              |  | 3            |        |              |  | 170          |        |              |  |             |     |   |  | 46    |       |   |  | 101    |        |   |  | (295   | )     
|                                                      |                                                          |  |              |        |              |  |              |        |              |  |              |        |              |  |              |     |   |  |       |       |   |  |        |        |   |  |        |       
|                                                      | Minority interests                                       |  |              |       |              |  |              |       |              |  |              |       |              |  |              |    |   |  |       |      |   |  |        |       |   |  |        |       |  
|                                                      | Redeemable OP units at redemption value                  |  |              |       |              |  |              |       |              |  |              |       |              |  |              |    |   |  |       |      |   |  |        |       |   |  |        |       |  
|                                                      | Partners capital                                        |  |              | 13,327 |              |  |              | 14,011 |              |  |              | 17,602 |              |  |              |    |   |  |       | 7,872 |   |  |        | 20,607 |   |  |        | 51,244 |  
|                                                      |                                                          |  |              |        |              |  |              |        |              |  |              |        |              |  |              |     |   |  |       |       |   |  |        |        |   |  |        |       
|                                                      |                                                          |  | 13,495       |        |              |  | 14,014       |        |              |  | 17,772       |        |              |  |             |     |   |  | 7,918 |       |   |  | 20,708 |        |   |  | 50,949 |       
|                                                      |                                                          |  |              |        |              |  |              |        |              |  |              |        |              |  |              |     |   |  |       |       |   |  |        |        |   |  |        |       





---



##### 



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

|                                                      |                                                          |  |              |        |              |  |              |        |              |  |              |        |             |  |        |        |   |  |        |        |   |  |        |        |  
|----------------------------------------------------- | -------------------------------------------------------- |  | ------------ | ------ | ------------ |  | ------------ | ------ | ------------ |  | ------------ | ------ | ----------- |  | ------ | ------ | - |  | ------ | ------ | - |  | ------ | ------ | -
|                                                      |                                                          |  | MeriStar Sub |        | MeriStar Sub |  | MeriStar Sub |        | MeriStar Sub |  | MeriStar Sub |        | MeriStar   
|                                                      |                                                          |  | 4E, L.P.     |        | 1B, LLC      |  | 5F, L.P.     |        | 6G, LLC      |  | 8C, LLC      |        | Sub 4C, L.P
|                                                      |                                                          |  |              |        |              |  |              |        |              |  |              |        |            
|Assets                                                |                                                          |  |              |        |              |  |              |        |              |  |              |        |             |  |        |        |   |  |        |        |   |  |        |       
|                                                      | Investment in hotel properties                           |  |              | 24,547 |              |  |              | 18,110 |              |  |              | 30,953 |             |  |        | 22,050 |   |  |        | 36,668 |   |  |        | 16,345 |  
|                                                      | Accumulated depreciation                                 |  |              | (3,072 | )            |  |              | (2,927 | )            |  |              | (3,363 | )           |  |        | (3,329 | ) |  |        | (3,917 | ) |  |        | (3,356 | )
|                                                      |                                                          |  |              |        |              |  |              |        |              |  |              |        |             |  |        |        |   |  |        |        |   |  |        |       
|                                                      |                                                          |  | 21,475       |        |              |  | 15,183       |        |              |  | 27,590       |        |             |  | 18,721 |        |   |  | 32,751 |        |   |  | 12,989 |       
|                                                      | Cash and cash equivalents                                |  |              |       |              |  |              |       |              |  |              |       |             |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Accounts receivable, net                                 |  |              |       |              |  |              |       |              |  |              |       |             |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Prepaid expenses and other                               |  |              |       |              |  |              |       |              |  |              |       |             |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Note receivable from MeriStar Hotels & Resorts           |  |              |       |              |  |              |       |              |  |              |       |             |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Due from MeriStar Hotels & Resorts                       |  |              |       |              |  |              |       |              |  |              |       |             |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Due from subsidiaries                                    |  |              | 2,005  |              |  |              | 10,480 |              |  |              | 8,695  |             |  |        | 3,410  |   |  |        | 3,419  |   |  |        | 289    |  
|                                                      | Investments in affiliates                                |  |              |       |              |  |              |       |              |  |              |       |             |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Restricted cash                                          |  |              |       |              |  |              |       |              |  |              |       |             |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Intangible assets, net                                   |  |              | 7      |              |  |              |       |              |  |              |       |             |  |        |       |   |  |        | 3      |   |  |        |       |  
|                                                      |                                                          |  |              |        |              |  |              |        |              |  |              |        |             |  |        |        |   |  |        |        |   |  |        |       
|                                                      |                                                          |  | 23,487       |        |              |  | 25,663       |        |              |  | 36,285       |        |             |  | 22,131 |        |   |  | 36,173 |        |   |  | 13,278 |       
|                                                      |                                                          |  |              |        |              |  |              |        |              |  |              |        |             |  |        |        |   |  |        |        |   |  |        |       
|Liabilities, Minority Interests and Partners capital |                                                          |  |              |        |              |  |              |        |              |  |              |        |             |  |        |        |   |  |        |        |   |  |        |       
|                                                      | Accounts payable, accrued expenses and other liabilities |  |              | 456    |              |  |              | (11    | )            |  |              | 94     |             |  |        | 151    |   |  |        | (21    | ) |  |        | 447    |  
|                                                      | Accrued interest                                         |  |              |       |              |  |              |       |              |  |              |       |             |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Income taxes payable                                     |  |              |       |              |  |              |       |              |  |              |       |             |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Dividends and Distributions payable                      |  |              |       |              |  |              |       |              |  |              |       |             |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Deferred income taxes                                    |  |              |       |              |  |              |       |              |  |              |       |             |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Interest rate swaps                                      |  |              |       |              |  |              |       |              |  |              |       |             |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Notes payable to MeriStar Hospitality                    |  |              |       |              |  |              |       |              |  |              |       |             |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Long-term debt                                           |  |              |       |              |  |              | 48     |              |  |              |       |             |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      |                                                          |  |              |        |              |  |              |        |              |  |              |        |             |  |        |        |   |  |        |        |   |  |        |       
|Total liabilities                                     |                                                          |  | 456          |        |              |  | 37           |        |              |  | 94           |        |             |  | 151    |        |   |  | (21    | )      |   |  | 447    |       
|                                                      |                                                          |  |              |        |              |  |              |        |              |  |              |        |             |  |        |        |   |  |        |        |   |  |        |       
|                                                      | Minority interests                                       |  |              |       |              |  |              |       |              |  |              |       |             |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Redeemable OP units at redemption value                  |  |              |       |              |  |              |       |              |  |              |       |             |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Partners capital                                        |  |              | 23,031 |              |  |              | 25,626 |              |  |              | 36,191 |             |  |        | 21,980 |   |  |        | 36,194 |   |  |        | 12,831 |  
|                                                      |                                                          |  |              |        |              |  |              |        |              |  |              |        |             |  |        |        |   |  |        |        |   |  |        |       
|                                                      |                                                          |  | 23,487       |        |              |  | 25,663       |        |              |  | 36,285       |        |             |  | 22,131 |        |   |  | 36,173 |        |   |  | 13,278 |       
|                                                      |                                                          |  |              |        |              |  |              |        |              |  |              |        |             |  |        |        |   |  |        |        |   |  |        |       





---



##### 



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



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





---



##### 



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

|                                                      |                                                          |  |              |        |              |  |              |        |              |  |              |        |              |  |        |        |   |  |       |        |   |  |       |        |  
|----------------------------------------------------- | -------------------------------------------------------- |  | ------------ | ------ | ------------ |  | ------------ | ------ | ------------ |  | ------------ | ------ | ------------ |  | ------ | ------ | - |  | ----- | ------ | - |  | ----- | ------ | -
|                                                      |                                                          |  | MeriStar Sub |        | MeriStar Sub |  | MeriStar Sub |        | MeriStar Sub |  | MeriStar Sub |        | MeriStar Sub
|                                                      |                                                          |  | 6K, LLC      |        | 2B, LLC      |  | 3A, LLC      |        | 4A, L.P.     |  | 4D, LLC      |        | 2A, LLC     
|                                                      |                                                          |  |              |        |              |  |              |        |              |  |              |        |             
|Assets                                                |                                                          |  |              |        |              |  |              |        |              |  |              |        |              |  |        |        |   |  |       |        |   |  |       |       
|                                                      | Investment in hotel properties                           |  |              | 22,642 |              |  |              | 9,424  |              |  |              | 6,274  |              |  |        | 8,619  |   |  |       | 8,664  |   |  |       | 8,209  |  
|                                                      | Accumulated depreciation                                 |  |              | (3,560 | )            |  |              | (1,558 | )            |  |              | (1,292 | )            |  |        | (1,112 | ) |  |       | (1,179 | ) |  |       | (1,141 | )
|                                                      |                                                          |  |              |        |              |  |              |        |              |  |              |        |              |  |        |        |   |  |       |        |   |  |       |       
|                                                      |                                                          |  | 19,082       |        |              |  | 7,866        |        |              |  | 4,982        |        |              |  | 7,507  |        |   |  | 7,485 |        |   |  | 7,068 |       
|                                                      | Cash and cash equivalents                                |  |              |       |              |  |              |       |              |  |              |       |              |  |        |       |   |  |       |       |   |  |       |       |  
|                                                      | Accounts receivable, net                                 |  |              |       |              |  |              | (12    | )            |  |              |       |              |  |        |       |   |  |       |       |   |  |       |       |  
|                                                      | Prepaid expenses and other                               |  |              |       |              |  |              |       |              |  |              |       |              |  |        |       |   |  |       |       |   |  |       |       |  
|                                                      | Note receivable from MeriStar Hotels & Resorts           |  |              |       |              |  |              |       |              |  |              |       |              |  |        |       |   |  |       |       |   |  |       |       |  
|                                                      | Due from MeriStar Hotels & Resorts                       |  |              |       |              |  |              |       |              |  |              |       |              |  |        |       |   |  |       |       |   |  |       |       |  
|                                                      | Due from subsidiaries                                    |  |              | 13,504 |              |  |              | (486   | )            |  |              | 1,742  |              |  |        | 3,572  |   |  |       | 14     |   |  |       | (620   | )
|                                                      | Investments in affiliates                                |  |              |       |              |  |              |       |              |  |              |       |              |  |        |       |   |  |       |       |   |  |       |       |  
|                                                      | Restricted cash                                          |  |              |       |              |  |              |       |              |  |              |       |              |  |        |       |   |  |       |       |   |  |       |       |  
|                                                      | Intangible assets, net                                   |  |              |       |              |  |              | 1      |              |  |              | 2      |              |  |        |       |   |  |       | 26     |   |  |       | 25     |  
|                                                      |                                                          |  |              |        |              |  |              |        |              |  |              |        |              |  |        |        |   |  |       |        |   |  |       |       
|                                                      |                                                          |  | 32,586       |        |              |  | 7,369        |        |              |  | 6,726        |        |              |  | 11,079 |        |   |  | 7,525 |        |   |  | 6,473 |       
|                                                      |                                                          |  |              |        |              |  |              |        |              |  |              |        |              |  |        |        |   |  |       |        |   |  |       |       
|Liabilities, Minority Interests and Partners capital |                                                          |  |              |        |              |  |              |        |              |  |              |        |              |  |        |        |   |  |       |        |   |  |       |       
|                                                      | Accounts payable, accrued expenses and other liabilities |  |              | 78     |              |  |              | 147    |              |  |              | 98     |              |  |        | 313    |   |  |       | 62     |   |  |       | 31     |  
|                                                      | Accrued interest                                         |  |              |       |              |  |              |       |              |  |              |       |              |  |        |       |   |  |       |       |   |  |       |       |  
|                                                      | Income taxes payable                                     |  |              |       |              |  |              |       |              |  |              |       |              |  |        |       |   |  |       |       |   |  |       |       |  
|                                                      | Dividends and Distributions payable                      |  |              |       |              |  |              |       |              |  |              |       |              |  |        |       |   |  |       |       |   |  |       |       |  
|                                                      | Deferred income taxes                                    |  |              |       |              |  |              |       |              |  |              |       |              |  |        |       |   |  |       |       |   |  |       |       |  
|                                                      | Interest rate swaps                                      |  |              |       |              |  |              |       |              |  |              |       |              |  |        |       |   |  |       |       |   |  |       |       |  
|                                                      | Notes payable to MeriStar Hospitality                    |  |              |       |              |  |              |       |              |  |              |       |              |  |        |       |   |  |       |       |   |  |       |       |  
|                                                      | Long-term debt                                           |  |              |       |              |  |              | 4,851  |              |  |              |       |              |  |        |       |   |  |       |       |   |  |       | 7,912  |  
|                                                      |                                                          |  |              |        |              |  |              |        |              |  |              |        |              |  |        |        |   |  |       |        |   |  |       |       
|Total liabilities                                     |                                                          |  | 78           |        |              |  | 4,998        |        |              |  | 98           |        |              |  | 313    |        |   |  | 62    |        |   |  | 7,943 |       
|                                                      |                                                          |  |              |        |              |  |              |        |              |  |              |        |              |  |        |        |   |  |       |        |   |  |       |       
|                                                      | Minority interests                                       |  |              |       |              |  |              |       |              |  |              |       |              |  |        |       |   |  |       |       |   |  |       |       |  
|                                                      | Redeemable OP units at redemption value                  |  |              |       |              |  |              |       |              |  |              |       |              |  |        |       |   |  |       |       |   |  |       |       |  
|                                                      | Partners capital                                        |  |              | 32,508 |              |  |              | 2,371  |              |  |              | 6,628  |              |  |        | 10,766 |   |  |       | 7,463  |   |  |       | (1,470 | )
|                                                      |                                                          |  |              |        |              |  |              |        |              |  |              |        |              |  |        |        |   |  |       |        |   |  |       |       
|                                                      |                                                          |  | 32,586       |        |              |  | 7,369        |        |              |  | 6,726        |        |              |  | 11,079 |        |   |  | 7,525 |        |   |  | 6,473 |       
|                                                      |                                                          |  |              |        |              |  |              |        |              |  |              |        |              |  |        |        |   |  |       |        |   |  |       |       





---



##### 



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



|                                                      |                                                          |  |              |        |             |  |              |       |              |  |              |        |              |  |              |        |   |  |        |        |   |  |        |        |   |  |        |        |  
|----------------------------------------------------- | -------------------------------------------------------- |  | ------------ | ------ | ----------- |  | ------------ | ----- | ------------ |  | ------------ | ------ | ------------ |  | ------------ | ------ | - |  | ------ | ------ | - |  | ------ | ------ | - |  | ------ | ------ | -
|                                                      |                                                          |  | MeriStar Sub |        | MDV Limited |  | MeriStar Sub |       | MeriStar Sub |  | MeriStar Sub |        | MeriStar Sub |  | MeriStar Sub
|                                                      |                                                          |  | 6L, LLC      |        | Partnership |  | 5C, LLC      |       | 6J, LLC      |  | 1D, L.P.     |        | 7B, L.P.     |  | 7D, LLC     
|                                                      |                                                          |  |              |        |             |  |              |       |              |  |              |        |              |  |             
|Assets                                                |                                                          |  |              |        |             |  |              |       |              |  |              |        |              |  |              |        |   |  |        |        |   |  |        |        |   |  |        |       
|                                                      | Investment in hotel properties                           |  |              | 29,443 |             |  |              | 3,816 |              |  |              | 13,826 |              |  |              | 19,169 |   |  |        | 67,929 |   |  |        | 25,399 |   |  |        | 52,031 |  
|                                                      | Accumulated depreciation                                 |  |              | (2,464 | )           |  |              | (410  | )            |  |              | (2,215 | )            |  |              | (2,573 | ) |  |        | (7,516 | ) |  |        | (2,277 | ) |  |        | (6,516 | )
|                                                      |                                                          |  |              |        |             |  |              |       |              |  |              |        |              |  |              |        |   |  |        |        |   |  |        |        |   |  |        |       
|                                                      |                                                          |  | 26,979       |        |             |  | 3,406        |       |              |  | 11,611       |        |              |  | 16,596       |        |   |  | 60,413 |        |   |  | 23,122 |        |   |  | 45,515 |       
|                                                      | Cash and cash equivalents                                |  |              |       |             |  |              |      |              |  |              |       |              |  |              |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Accounts receivable, net                                 |  |              |       |             |  |              |      |              |  |              |       |              |  |              |       |   |  |        |       |   |  |        |       |   |  |        | 912    |  
|                                                      | Prepaid expenses and other                               |  |              |       |             |  |              | 4     |              |  |              | 17     |              |  |              |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Note receivable from MeriStar Hotels & Resorts           |  |              |       |             |  |              |      |              |  |              |       |              |  |              |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Due from MeriStar Hotels & Resorts                       |  |              |       |             |  |              |      |              |  |              |       |              |  |              |       |   |  |        |       |   |  |        |       |   |  |        | 200    |  
|                                                      | Due from subsidiaries                                    |  |              | 3,604  |             |  |              | 1,796 |              |  |              | (345   | )            |  |              | 4,047  |   |  |        | 13,481 |   |  |        | (4,749 | ) |  |        | 18,380 |  
|                                                      | Investments in affiliates                                |  |              |       |             |  |              |      |              |  |              |       |              |  |              |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Restricted cash                                          |  |              |       |             |  |              |      |              |  |              |       |              |  |              |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Intangible assets, net                                   |  |              |       |             |  |              | 9     |              |  |              |       |              |  |              | 58     |   |  |        | 55     |   |  |        |       |   |  |        | 393    |  
|                                                      |                                                          |  |              |        |             |  |              |       |              |  |              |        |              |  |              |        |   |  |        |        |   |  |        |        |   |  |        |       
|                                                      |                                                          |  | 30,583       |        |             |  | 5,215        |       |              |  | 11,283       |        |              |  | 20,701       |        |   |  | 73,949 |        |   |  | 18,373 |        |   |  | 65,400 |       
|                                                      |                                                          |  |              |        |             |  |              |       |              |  |              |        |              |  |              |        |   |  |        |        |   |  |        |        |   |  |        |       
|Liabilities, Minority Interests and Partners capital |                                                          |  |              |        |             |  |              |       |              |  |              |        |              |  |              |        |   |  |        |        |   |  |        |        |   |  |        |       
|                                                      | Accounts payable, accrued expenses and other liabilities |  |              | 68     |             |  |              | 87    |              |  |              | 828    |              |  |              | (57    | ) |  |        | 553    |   |  |        | 1,011  |   |  |        | 4,688  |  
|                                                      | Accrued interest                                         |  |              |       |             |  |              |      |              |  |              |       |              |  |              |       |   |  |        | 57     |   |  |        |       |   |  |        |       |  
|                                                      | Income taxes payable                                     |  |              |       |             |  |              |      |              |  |              |       |              |  |              |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Dividends and Distributions payable                      |  |              |       |             |  |              |      |              |  |              |       |              |  |              |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Deferred income taxes                                    |  |              |       |             |  |              |      |              |  |              |       |              |  |              |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Interest rate swaps                                      |  |              |       |             |  |              |      |              |  |              |       |              |  |              |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Notes payable to MeriStar Hospitality                    |  |              |       |             |  |              |      |              |  |              |       |              |  |              |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Long-term debt                                           |  |              |       |             |  |              |      |              |  |              |       |              |  |              |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      |                                                          |  |              |        |             |  |              |       |              |  |              |        |              |  |              |        |   |  |        |        |   |  |        |        |   |  |        |       
|Total liabilities                                     |                                                          |  | 68           |        |             |  | 87           |       |              |  | 828          |        |              |  | (57          | )      |   |  | 610    |        |   |  | 1,011  |        |   |  | 4,688  |       
|                                                      |                                                          |  |              |        |             |  |              |       |              |  |              |        |              |  |              |        |   |  |        |        |   |  |        |        |   |  |        |       
|                                                      | Minority interests                                       |  |              |       |             |  |              |      |              |  |              |       |              |  |              |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Redeemable OP units at redemption value                  |  |              |       |             |  |              |      |              |  |              |       |              |  |              |       |   |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Partners capital                                        |  |              | 30,515 |             |  |              | 5,128 |              |  |              | 10,455 |              |  |              | 20,758 |   |  |        | 73,339 |   |  |        | 17,362 |   |  |        | 60,712 |  
|                                                      |                                                          |  |              |        |             |  |              |       |              |  |              |        |              |  |              |        |   |  |        |        |   |  |        |        |   |  |        |       
|                                                      |                                                          |  | 30,583       |        |             |  | 5,215        |       |              |  | 11,283       |        |              |  | 20,701       |        |   |  | 73,949 |        |   |  | 18,373 |        |   |  | 65,400 |       
|                                                      |                                                          |  |              |        |             |  |              |       |              |  |              |        |              |  |              |        |   |  |        |        |   |  |        |        |   |  |        |       





---



##### 



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

|                                                      |                                                          |  |              |        |              |  |              |        |              |  |              |        |              |  |        |        |   |  |        |        |   |  |        |        |  
|----------------------------------------------------- | -------------------------------------------------------- |  | ------------ | ------ | ------------ |  | ------------ | ------ | ------------ |  | ------------ | ------ | ------------ |  | ------ | ------ | - |  | ------ | ------ | - |  | ------ | ------ | -
|                                                      |                                                          |  | MeriStar Sub |        | MeriStar Sub |  | MeriStar Sub |        | MeriStar Sub |  | MeriStar Sub |        | MeriStar Sub
|                                                      |                                                          |  | 7G, LLC      |        | 6B, LLC      |  | 4I, L.P.     |        | 5D, LLC      |  | 5H, LLC      |        | 7H, LLC     
|                                                      |                                                          |  |              |        |              |  |              |        |              |  |              |        |             
|Assets                                                |                                                          |  |              |        |              |  |              |        |              |  |              |        |              |  |        |        |   |  |        |        |   |  |        |       
|                                                      | Investment in hotel properties                           |  |              | 16,462 |              |  |              | 10,528 |              |  |              | 12,477 |              |  |        | 41,617 |   |  |        | 52,475 |   |  |        | 9,978  |  
|                                                      | Accumulated depreciation                                 |  |              | (3,387 | )            |  |              | (1,292 | )            |  |              | (3,677 | )            |  |        | (5,199 | ) |  |        | (6,012 | ) |  |        | (4,063 | )
|                                                      |                                                          |  |              |        |              |  |              |        |              |  |              |        |              |  |        |        |   |  |        |        |   |  |        |       
|                                                      |                                                          |  | 13,075       |        |              |  | 9,236        |        |              |  | 8,800        |        |              |  | 36,418 |        |   |  | 46,463 |        |   |  | 5,915  |       
|                                                      | Cash and cash equivalents                                |  |              |       |              |  |              |       |              |  |              |       |              |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Accounts receivable, net                                 |  |              |       |              |  |              |       |              |  |              |       |              |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Prepaid expenses and other                               |  |              |       |              |  |              |       |              |  |              |       |              |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Note receivable from MeriStar Hotels & Resorts           |  |              |       |              |  |              |       |              |  |              |       |              |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Due from MeriStar Hotels & Resorts                       |  |              |       |              |  |              |       |              |  |              |       |              |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Due from subsidiaries                                    |  |              | 44     |              |  |              | 1,602  |              |  |              | 1,289  |              |  |        | (6,818 | ) |  |        | 6,867  |   |  |        | 5,202  |  
|                                                      | Investments in affiliates                                |  |              |       |              |  |              |       |              |  |              |       |              |  |        | 51,398 |   |  |        |       |   |  |        |       |  
|                                                      | Restricted cash                                          |  |              |       |              |  |              |       |              |  |              |       |              |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Intangible assets, net                                   |  |              | 34     |              |  |              | 9      |              |  |              |       |              |  |        | 21     |   |  |        |       |   |  |        |       |  
|                                                      |                                                          |  |              |        |              |  |              |        |              |  |              |        |              |  |        |        |   |  |        |        |   |  |        |       
|                                                      |                                                          |  | 13,153       |        |              |  | 10,847       |        |              |  | 10,089       |        |              |  | 81,019 |        |   |  | 53,330 |        |   |  | 11,117 |       
|                                                      |                                                          |  |              |        |              |  |              |        |              |  |              |        |              |  |        |        |   |  |        |        |   |  |        |       
|Liabilities, Minority Interests and Partners capital |                                                          |  |              |        |              |  |              |        |              |  |              |        |              |  |        |        |   |  |        |        |   |  |        |       
|                                                      | Accounts payable, accrued expenses and other liabilities |  |              | 161    |              |  |              | (60    | )            |  |              | 360    |              |  |        | 241    |   |  |        | (115   | ) |  |        | 414    |  
|                                                      | Accrued interest                                         |  |              |       |              |  |              |       |              |  |              |       |              |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Income taxes payable                                     |  |              |       |              |  |              |       |              |  |              |       |              |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Dividends and Distributions payable                      |  |              |       |              |  |              |       |              |  |              |       |              |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Deferred income taxes                                    |  |              |       |              |  |              |       |              |  |              |       |              |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Interest rate swaps                                      |  |              |       |              |  |              |       |              |  |              |       |              |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Notes payable to MeriStar Hospitality                    |  |              |       |              |  |              |       |              |  |              |       |              |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Long-term debt                                           |  |              |       |              |  |              |       |              |  |              |       |              |  |        | 24,000 |   |  |        |       |   |  |        | 13     |  
|                                                      |                                                          |  |              |        |              |  |              |        |              |  |              |        |              |  |        |        |   |  |        |        |   |  |        |       
|Total liabilities                                     |                                                          |  | 161          |        |              |  | (60          | )      |              |  | 360          |        |              |  | 24,241 |        |   |  | (115   | )      |   |  | 427    |       
|                                                      |                                                          |  |              |        |              |  |              |        |              |  |              |        |              |  |        |        |   |  |        |        |   |  |        |       
|                                                      | Minority interests                                       |  |              |       |              |  |              |       |              |  |              |       |              |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Redeemable OP units at redemption value                  |  |              |       |              |  |              |       |              |  |              |       |              |  |        |       |   |  |        |       |   |  |        |       |  
|                                                      | Partners capital                                        |  |              | 12,992 |              |  |              | 10,907 |              |  |              | 9,729  |              |  |        | 56,778 |   |  |        | 53,445 |   |  |        | 10,690 |  
|                                                      |                                                          |  |              |        |              |  |              |        |              |  |              |        |              |  |        |        |   |  |        |        |   |  |        |       
|                                                      |                                                          |  | 13,153       |        |              |  | 10,847       |        |              |  | 10,089       |        |              |  | 81,019 |        |   |  | 53,330 |        |   |  | 11,117 |       
|                                                      |                                                          |  |              |        |              |  |              |        |              |  |              |        |              |  |        |        |   |  |        |        |   |  |        |       





---



##### 



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



|                                                      |                                                          |  |            |        |              |  |              |        |              |  |              |        |              |  |              |        |   |  |        |        |   |  |        |        |   |  |       |       |  
|----------------------------------------------------- | -------------------------------------------------------- |  | ---------- | ------ | ------------ |  | ------------ | ------ | ------------ |  | ------------ | ------ | ------------ |  | ------------ | ------ | - |  | ------ | ------ | - |  | ------ | ------ | - |  | ----- | ----- | -
|                                                      |                                                          |  | AGH PSS I, |        | MeriStar Sub |  | MeriStar Sub |        | MeriStar Sub |  | MeriStar Sub |        | MeriStar Sub |  | MeriStar Sub
|                                                      |                                                          |  | Inc.       |        | 2D, LLC      |  | 4F, L.P.     |        | 5K, LLC      |  | 5M, LLC      |        | 1E, L.P.     |  | 5O, LLC     
|                                                      |                                                          |  |            |        |              |  |              |        |              |  |              |        |              |  |             
|Assets                                                |                                                          |  |            |        |              |  |              |        |              |  |              |        |              |  |              |        |   |  |        |        |   |  |        |        |   |  |       |      
|                                                      | Investment in hotel properties                           |  |            | 17,317 |              |  |              | 15,307 |              |  |              | 31,467 |              |  |              | 27,304 |   |  |        | 21,917 |   |  |        | 10,379 |   |  |       | 8,674 |  
|                                                      | Accumulated depreciation                                 |  |            | (2,049 | )            |  |              | (1,949 | )            |  |              | (3,617 | )            |  |              | (2,729 | ) |  |        | (1,429 | ) |  |        | (1,350 | ) |  |       | (697  | )
|                                                      |                                                          |  |            |        |              |  |              |        |              |  |              |        |              |  |              |        |   |  |        |        |   |  |        |        |   |  |       |      
|                                                      |                                                          |  | 15,268     |        |              |  | 13,358       |        |              |  | 27,850       |        |              |  | 24,575       |        |   |  | 20,488 |        |   |  | 9,029  |        |   |  | 7,977 |      
|                                                      | Cash and cash equivalents                                |  |            |       |              |  |              |       |              |  |              |       |              |  |              |       |   |  |        |       |   |  |        |       |   |  |       |      |  
|                                                      | Accounts receivable, net                                 |  |            |       |              |  |              |       |              |  |              |       |              |  |              |       |   |  |        |       |   |  |        |       |   |  |       |      |  
|                                                      | Prepaid expenses and other                               |  |            |       |              |  |              |       |              |  |              |       |              |  |              |       |   |  |        |       |   |  |        |       |   |  |       |      |  
|                                                      | Note receivable from MeriStar Hotels & Resorts           |  |            |       |              |  |              |       |              |  |              |       |              |  |              |       |   |  |        |       |   |  |        |       |   |  |       |      |  
|                                                      | Due from MeriStar Hotels & Resorts                       |  |            |       |              |  |              |       |              |  |              |       |              |  |              |       |   |  |        |       |   |  |        |       |   |  |       |      |  
|                                                      | Due from subsidiaries                                    |  |            | 9,631  |              |  |              | 215    |              |  |              | 3,292  |              |  |              | (781   | ) |  |        | 5,344  |   |  |        | 5,927  |   |  |       | 1,939 |  
|                                                      | Investments in affiliates                                |  |            |       |              |  |              |       |              |  |              |       |              |  |              |       |   |  |        |       |   |  |        |       |   |  |       |      |  
|                                                      | Restricted cash                                          |  |            |       |              |  |              |       |              |  |              |       |              |  |              |       |   |  |        |       |   |  |        |       |   |  |       |      |  
|                                                      | Intangible assets, net                                   |  |            |       |              |  |              | 2      |              |  |              | 37     |              |  |              |       |   |  |        |       |   |  |        |       |   |  |       |      |  
|                                                      |                                                          |  |            |        |              |  |              |        |              |  |              |        |              |  |              |        |   |  |        |        |   |  |        |        |   |  |       |      
|                                                      |                                                          |  | 24,899     |        |              |  | 13,575       |        |              |  | 31,179       |        |              |  | 23,794       |        |   |  | 25,832 |        |   |  | 14,956 |        |   |  | 9,916 |      
|                                                      |                                                          |  |            |        |              |  |              |        |              |  |              |        |              |  |              |        |   |  |        |        |   |  |        |        |   |  |       |      
|Liabilities, Minority Interests and Partners capital |                                                          |  |            |        |              |  |              |        |              |  |              |        |              |  |              |        |   |  |        |        |   |  |        |        |   |  |       |      
|                                                      | Accounts payable, accrued expenses and other liabilities |  |            | 29     |              |  |              | 43     |              |  |              | 388    |              |  |              | 5,644  |   |  |        | 21     |   |  |        | 22     |   |  |       | 18    |  
|                                                      | Accrued interest                                         |  |            |       |              |  |              |       |              |  |              |       |              |  |              |       |   |  |        |       |   |  |        |       |   |  |       |      |  
|                                                      | Income taxes payable                                     |  |            |       |              |  |              |       |              |  |              |       |              |  |              |       |   |  |        |       |   |  |        |       |   |  |       |      |  
|                                                      | Dividends and Distributions payable                      |  |            |       |              |  |              |       |              |  |              |       |              |  |              |       |   |  |        |       |   |  |        |       |   |  |       |      |  
|                                                      | Deferred income taxes                                    |  |            |       |              |  |              |       |              |  |              |       |              |  |              |       |   |  |        |       |   |  |        |       |   |  |       |      |  
|                                                      | Interest rate swaps                                      |  |            |       |              |  |              |       |              |  |              |       |              |  |              |       |   |  |        |       |   |  |        |       |   |  |       |      |  
|                                                      | Notes payable to MeriStar Hospitality                    |  |            |       |              |  |              |       |              |  |              |       |              |  |              |       |   |  |        |       |   |  |        |       |   |  |       |      |  
|                                                      | Long-term debt                                           |  |            |       |              |  |              | 9,167  |              |  |              |       |              |  |              |       |   |  |        |       |   |  |        |       |   |  |       |      |  
|                                                      |                                                          |  |            |        |              |  |              |        |              |  |              |        |              |  |              |        |   |  |        |        |   |  |        |        |   |  |       |      
|Total liabilities                                     |                                                          |  | 29         |        |              |  | 9,210        |        |              |  | 388          |        |              |  | 5,644        |        |   |  | 21     |        |   |  | 22     |        |   |  | 18    |      
|                                                      |                                                          |  |            |        |              |  |              |        |              |  |              |        |              |  |              |        |   |  |        |        |   |  |        |        |   |  |       |      
|                                                      | Minority interests                                       |  |            |       |              |  |              |       |              |  |              |       |              |  |              |       |   |  |        |       |   |  |        |       |   |  |       |      |  
|                                                      | Redeemable OP units at redemption value                  |  |            |       |              |  |              |       |              |  |              |       |              |  |              |       |   |  |        |       |   |  |        |       |   |  |       |      |  
|                                                      | Partners capital                                        |  |            | 24,870 |              |  |              | 4,365  |              |  |              | 30,791 |              |  |              | 18,150 |   |  |        | 25,811 |   |  |        | 14,934 |   |  |       | 9,898 |  
|                                                      |                                                          |  |            |        |              |  |              |        |              |  |              |        |              |  |              |        |   |  |        |        |   |  |        |        |   |  |       |      
|                                                      |                                                          |  | 24,899     |        |              |  | 13,575       |        |              |  | 31,179       |        |              |  | 23,794       |        |   |  | 25,832 |        |   |  | 14,956 |        |   |  | 9,916 |      
|                                                      |                                                          |  |            |        |              |  |              |        |              |  |              |        |              |  |              |        |   |  |        |        |   |  |        |        |   |  |       |      





---



##### 



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

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





---



##### 



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



|                                                      |                                                          |  |              |         |              |  |              |       |              |  |              |         |   |  |        |        |   |  |        |        |  
|----------------------------------------------------- | -------------------------------------------------------- |  | ------------ | ------- | ------------ |  | ------------ | ----- | ------------ |  | ------------ | ------- | - |  | ------ | ------ | - |  | ------ | ------ | -
|                                                      |                                                          |  | MeriStar Sub |         | MeriStar Sub |  | MeriStar Sub |       | MeriStar Sub |  | MeriStar Sub
|                                                      |                                                          |  | 5G, L.P.     |         | 5P, LLC      |  | 5J, LLC      |       | 5Q, LLC      |  | 5A, LLC     
|                                                      |                                                          |  |              |         |              |  |              |       |              |  |             
|Assets                                                |                                                          |  |              |         |              |  |              |       |              |  |              |         |   |  |        |        |   |  |        |       
|                                                      | Investment in hotel properties                           |  |              | 161,783 |              |  |              |      |              |  |              | 104,381 |   |  |        | 15,964 |   |  |        | 34,663 |  
|                                                      | Accumulated depreciation                                 |  |              | (18,012 | )            |  |              |      |              |  |              | (9,859  | ) |  |        | (1,216 | ) |  |        | (7,908 | )
|                                                      |                                                          |  |              |         |              |  |              |       |              |  |              |         |   |  |        |        |   |  |        |       
|                                                      |                                                          |  | 143,771      |         |              |  |             |       |              |  | 94,522       |         |   |  | 14,748 |        |   |  | 26,755 |       
|                                                      | Cash and cash equivalents                                |  |              |        |              |  |              |      |              |  |              |        |   |  |        |       |   |  |        |       |  
|                                                      | Accounts receivable, net                                 |  |              |        |              |  |              | 319   |              |  |              |        |   |  |        |       |   |  |        |       |  
|                                                      | Prepaid expenses and other                               |  |              |        |              |  |              |      |              |  |              | 483     |   |  |        |       |   |  |        |       |  
|                                                      | Note receivable from MeriStar Hotels & Resorts           |  |              |        |              |  |              |      |              |  |              |        |   |  |        |       |   |  |        |       |  
|                                                      | Due from MeriStar Hotels & Resorts                       |  |              |        |              |  |              |      |              |  |              |        |   |  |        |       |   |  |        |       |  
|                                                      | Due from subsidiaries                                    |  |              | 28,207  |              |  |              | 1,117 |              |  |              | 12,862  |   |  |        | 2,083  |   |  |        | 2,995  |  
|                                                      | Investments in affiliates                                |  |              |        |              |  |              |      |              |  |              |        |   |  |        |       |   |  |        | 4,627  |  
|                                                      | Restricted cash                                          |  |              |        |              |  |              |      |              |  |              |        |   |  |        |       |   |  |        |       |  
|                                                      | Intangible assets, net                                   |  |              |        |              |  |              |      |              |  |              |        |   |  |        |       |   |  |        | (53    | )
|                                                      |                                                          |  |              |         |              |  |              |       |              |  |              |         |   |  |        |        |   |  |        |       
|                                                      |                                                          |  | 171,978      |         |              |  | 1,436        |       |              |  | 107,867      |         |   |  | 16,831 |        |   |  | 34,324 |       
|                                                      |                                                          |  |              |         |              |  |              |       |              |  |              |         |   |  |        |        |   |  |        |       
|Liabilities, Minority Interests and Partners capital |                                                          |  |              |         |              |  |              |       |              |  |              |         |   |  |        |        |   |  |        |       
|                                                      | Accounts payable, accrued expenses and other liabilities |  |              | 678     |              |  |              | 19    |              |  |              | 318     |   |  |        | (201   | ) |  |        | (69    | )
|                                                      | Accrued interest                                         |  |              |        |              |  |              |      |              |  |              |        |   |  |        |       |   |  |        |       |  
|                                                      | Income taxes payable                                     |  |              |        |              |  |              |      |              |  |              |        |   |  |        |       |   |  |        |       |  
|                                                      | Dividends and Distributions payable                      |  |              |        |              |  |              |      |              |  |              |        |   |  |        |       |   |  |        |       |  
|                                                      | Deferred income taxes                                    |  |              |        |              |  |              |      |              |  |              |        |   |  |        |       |   |  |        |       |  
|                                                      | Interest rate swaps                                      |  |              |        |              |  |              |      |              |  |              |        |   |  |        |       |   |  |        |       |  
|                                                      | Notes payable to MeriStar Hospitality                    |  |              |        |              |  |              |      |              |  |              |        |   |  |        |       |   |  |        |       |  
|                                                      | Long-term debt                                           |  |              |        |              |  |              |      |              |  |              |        |   |  |        |       |   |  |        | 23,609 |  
|                                                      |                                                          |  |              |         |              |  |              |       |              |  |              |         |   |  |        |        |   |  |        |       
|Total liabilities                                     |                                                          |  | 678          |         |              |  | 19           |       |              |  | 318          |         |   |  | (201   | )      |   |  | 23,540 |       
|                                                      |                                                          |  |              |         |              |  |              |       |              |  |              |         |   |  |        |        |   |  |        |       
|                                                      | Minority interests                                       |  |              |        |              |  |              |      |              |  |              |        |   |  |        |       |   |  |        |       |  
|                                                      | Redeemable OP units at redemption value                  |  |              |        |              |  |              |      |              |  |              |        |   |  |        |       |   |  |        |       |  
|                                                      | Partners capital                                        |  |              | 171,300 |              |  |              | 1,417 |              |  |              | 107,549 |   |  |        | 17,032 |   |  |        | 10,784 |  
|                                                      |                                                          |  |              |         |              |  |              |       |              |  |              |         |   |  |        |        |   |  |        |       
|                                                      |                                                          |  | 171,978      |         |              |  | 1,436        |       |              |  | 107,867      |         |   |  | 16,831 |        |   |  | 34,324 |       
|                                                      |                                                          |  |              |         |              |  |              |       |              |  |              |         |   |  |        |        |   |  |        |       





---



##### 



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

|                                                      |                                                          |  |              |        |              |  |                |        |              |  |              |        |       |  |            |            |   |  |           |           |  
|----------------------------------------------------- | -------------------------------------------------------- |  | ------------ | ------ | ------------ |  | -------------- | ------ | ------------ |  | ------------ | ------ | ----- |  | ---------- | ---------- | - |  | --------- | --------- | -
|                                                      |                                                          |  | MeriStar Sub |        | MeriStar Sub |  | MeriStar Hotel |        |              |  |              |        | Total
|                                                      |                                                          |  | 8D, LLC      |        | 4J, LLC      |  | Lessee, Inc.   |        | Eliminations |  | Consolidated
|                                                      |                                                          |  |              |        |              |  |                |        |              |  |             
|Assets                                                |                                                          |  |              |        |              |  |                |        |              |  |              |        |       |  |            |            |   |  |           |          
|                                                      | Investment in hotel properties                           |  |              | 30,448 |              |  |                | 37,923 |              |  |              | 864    |       |  |            |           |   |  |           | 3,183,677 |  
|                                                      | Accumulated depreciation                                 |  |              | (3,813 | )            |  |                | (4,561 | )            |  |              | (658   | )     |  |            |           |   |  |           | (397,380  | )
|                                                      |                                                          |  |              |        |              |  |                |        |              |  |              |        |       |  |            |            |   |  |           |          
|                                                      |                                                          |  | 26,635       |        |              |  | 33,362         |        |              |  | 206          |        |       |  |           |            |   |  | 2,786,297 |          
|                                                      | Cash and cash equivalents                                |  |              |       |              |  |                |       |              |  |              | 16,643 |       |  |            |           |   |  |           | 23,441    |  
|                                                      | Accounts receivable, net                                 |  |              |       |              |  |                | 21     |              |  |              | 40,616 |       |  |            |           |   |  |           | 47,178    |  
|                                                      | Prepaid expenses and other                               |  |              | 1      |              |  |                |       |              |  |              | 13,172 |       |  |            |           |   |  |           | 18,306    |  
|                                                      | Note receivable from MeriStar Hotels & Resorts           |  |              |       |              |  |                |       |              |  |              | 389    |       |  |            | (91,550    | ) |  |           | 36,000    |  
|                                                      | Due from MeriStar Hotels & Resorts                       |  |              |       |              |  |                |       |              |  |              | (3,715 | )     |  |            |           |   |  |           | 8,877     |  
|                                                      | Due from subsidiaries                                    |  |              | 5,308  |              |  |                | 3,090  |              |  |              | 6,316  |       |  |            |           |   |  |           |          |  
|                                                      | Investments in affiliates                                |  |              |       |              |  |                |       |              |  |              | 1,629  |       |  |            | (2,741,585 | ) |  |           | 41,714    |  
|                                                      | Restricted cash                                          |  |              |       |              |  |                |       |              |  |              |       |       |  |            |           |   |  |           | 21,304    |  
|                                                      | Intangible assets, net                                   |  |              |       |              |  |                | 47     |              |  |              |       |       |  |            |           |   |  |           | 21,469    |  
|                                                      |                                                          |  |              |        |              |  |                |        |              |  |              |        |       |  |            |            |   |  |           |          
|                                                      |                                                          |  | 31,944       |        |              |  | 36,520         |        |              |  | 75,256       |        |       |  | (2,833,135 | )          |   |  | 3,004,586 |          
|                                                      |                                                          |  |              |        |              |  |                |        |              |  |              |        |       |  |            |            |   |  |           |          
|Liabilities, Minority Interests and Partners capital |                                                          |  |              |        |              |  |                |        |              |  |              |        |       |  |            |            |   |  |           |          
|                                                      | Accounts payable, accrued expenses and other liabilities |  |              | (71    | )            |  |                | 243    |              |  |              | 70,061 |       |  |            |           |   |  |           | 123,972   |  
|                                                      | Accrued interest                                         |  |              |       |              |  |                |       |              |  |              | 17     |       |  |            |           |   |  |           | 45,009    |  
|                                                      | Income taxes payable                                     |  |              |       |              |  |                |       |              |  |              | 25     |       |  |            |           |   |  |           | 310       |  
|                                                      | Dividends and Distributions payable                      |  |              |       |              |  |                |       |              |  |              |       |       |  |            |           |   |  |           | 1,090     |  
|                                                      | Deferred income taxes                                    |  |              |       |              |  |                |       |              |  |              | (337   | )     |  |            |           |   |  |           | 7,130     |  
|                                                      | Interest rate swaps                                      |  |              |       |              |  |                |       |              |  |              |       |       |  |            |           |   |  |           | 12,100    |  
|                                                      | Notes payable to MeriStar Hospitality                    |  |              |       |              |  |                |       |              |  |              |       |       |  |            |           |   |  |           | 357,117   |  
|                                                      | Long-term debt                                           |  |              |       |              |  |                |       |              |  |              | 6,000  |       |  |            | (91,550    | ) |  |           | 1,343,017 |  
|                                                      |                                                          |  |              |        |              |  |                |        |              |  |              |        |       |  |            |            |   |  |           |          
|Total liabilities                                     |                                                          |  | (71          | )      |              |  | 243            |        |              |  | 75,766       |        |       |  | (91,550    | )          |   |  | 1,889,745 |          
|                                                      |                                                          |  |              |        |              |  |                |        |              |  |              |        |       |  |            |            |   |  |           |          
|                                                      | Minority interests                                       |  |              |       |              |  |                |       |              |  |              |       |       |  |            |           |   |  |           | 2,639     |  
|                                                      | Redeemable OP units at redemption value                  |  |              |       |              |  |                |       |              |  |              |       |       |  |            |           |   |  |           | 67,012    |  
|                                                      | Partners capital                                        |  |              | 32,015 |              |  |                | 36,277 |              |  |              | (510   | )     |  |            | (2,741,585 | ) |  |           | 1,045,190 |  
|                                                      |                                                          |  |              |        |              |  |                |        |              |  |              |        |       |  |            |            |   |  |           |          
|                                                      |                                                          |  | 31,944       |        |              |  | 36,520         |        |              |  | 75,256       |        |       |  | (2,833,135 | )          |   |  | 3,004,586 |          
|                                                      |                                                          |  |              |        |              |  |                |        |              |  |              |        |       |  |            |            |   |  |           |          





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended September 30, 2001
(in thousands)



|                                        |                                                     |                                                                                                                                                                |                                          |                                              |         |                 |        |               |        |              |     |             |   |              |   |              |   |   |     |   |     |   |   |   |     |     |     | 
|--------------------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------- | -------------------------------------------- | ------- | --------------- | ------ | ------------- | ------ | ------------ | --- | ----------- | - | ------------ | - | ------------ | - | - | --- | - | --- | - | - | - | --- | --- | --- | 
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |         | MeriStar        |        |               |        |              |     |             |   |              |   |              |   |   |     |   |     |   |   |   |     |    
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |         | Hospitality OP, |        | Non-Guarantor |        | MeriStar Sub |     | AGH Upreit, |   | MeriStar Sub |   | MeriStar Sub
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |         | L.P.            |        | Subsidiaries  |        | 7C, LLC      |     | LLC         |   | 5N, LLC      |   | 8A, LLC     
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |         |                 |        |               |        |              |     |             |   |              |   |             
|Participating lease revenue             |                                                     |                                                                                                                                                                |                                         |                                              |         |                 | 36,422 |               |        |              |    |             |   |              |  |              |   |   | 193 |   |     |   |  |  
|                                        | Hotel operations:                                   |                                                                                                                                                                |                                          |                                             |         |                 |        |              |        |              |     |            |   |              |   |             |   |   |     |  |     |   |   |  |    
|                                        |                                                     | Rooms                                                                                                                                                          |                                          |                                              |        |                 |        |               |       |              |     |             |  |              |   |              |  |   |     |   |    |   |   |   |    |    
|                                        |                                                     | Food and beverage                                                                                                                                              |                                          |                                              |        |                 |        |               |       |              |     |             |  |              |   |              |  |   |     |   |    |   |   |   |    |    
|                                        |                                                     | Other operating departments                                                                                                                                    |                                          |                                              |        |                 |        |               | (1,238 | )            |     |             |  |              |   |              |  |   |     |   |    |   |   |   |    |    
|                                        | Office rental and other revenues                    |                                                                                                                                                                |                                          | 1,600                                        |         |                 |        | 2,310         |        |              |     |            |   |              |   |             |   |   |     |  |     |   |   |  |    
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |         |                 |        |               |        |              |     |             |   |              |   |              |   |   |     |   |     |   |   |  
|Total revenue                           |                                                     |                                                                                                                                                                | 1,600                                    |                                              |         |                 | 37,494 |               |        |              |    |             |   |              |  |              |   |   | 193 |   |     |   |  |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |         |                 |        |               |        |              |     |             |   |              |   |              |   |   |     |   |     |   |   |  
|Hotel operating expenses by department: |                                                     |                                                                                                                                                                |                                         |                                              |         |                 |       |               |        |              |    |             |   |              |  |              |   |   |    |   |     |   |  |  
|                                        |                                                     | Rooms                                                                                                                                                          |                                          |                                              |        |                 |        |               |       |              |     |             |  |              |   |              |  |   |     |   |    |   |   |   |    |    
|                                        |                                                     | Food and beverage                                                                                                                                              |                                          |                                              |        |                 |        |               |       |              |     |             |  |              |   |              |  |   |     |   |    |   |   |   |    |    
|                                        |                                                     | Other operating departments                                                                                                                                    |                                          |                                              |        |                 |        |               |       |              |     |             |  |              |   |              |  |   |     |   |    |   |   |   |    |    
|                                        | Office rental, parking and other operating expenses |                                                                                                                                                                |                                          |                                             |         |                 |        | 589           |        |              |     |            |   |              |   |             |   |   |     |  |     |   |   |  |    
|Undistributed operating expenses:       |                                                     |                                                                                                                                                                |                                          |                                              |         |                 |        |               |        |              |     |             |   |              |   |              |   |   |     |   |     |   |   |  
|                                        |                                                     | Administrative and general                                                                                                                                     |                                          |                                              | 3,154   |                 |        |               | (2,002 | )            |     |             |  |              |   |              |  |   |     |   |    |   |   |   |    |    
|                                        |                                                     | Property operating costs                                                                                                                                       |                                          |                                              |        |                 |        |               |       |              |     |             |  |              |   |              |  |   |     |   |    |   |   |   |    |    
|                                        |                                                     | Property taxes, insurance and other                                                                                                                            |                                          |                                              | (2,347  | )               |        |               | 6,488  |              |     |             |  |              |   |              |  |   |     |   | 25  |   |   |   |    |    
|                                        |                                                     | Depreciation and amortization                                                                                                                                  |                                          |                                              | 981     |                 |        |               | 13,282 |              |     |             |  |              |   |              |  |   |     |   | 32  |   |   |   |    |    
|                                        |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                          |                                              |        |                 |        |               |       |              |     |             |  |              |   |              |  |   |     |   |    |   |   |   |    |    
|                                        |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                          |                                              |        |                 |        |               |       |              |     |             |  |              |   |              |  |   |     |   |    |   |   |   |    |    
|                                        |                                                     | Swap termination fees                                                                                                                                          |                                          |                                              |        |                 |        |               |       |              |     |             |  |              |   |              |  |   |     |   |    |   |   |   |    |    
|                                        |                                                     | Write down of deferred costs                                                                                                                                   |                                          |                                              |        |                 |        |               |       |              |     |             |  |              |   |              |  |   |     |   |    |   |   |   |    |    
|                                        |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                          |                                              |        |                 |        |               |       |              |     |             |  |              |   |              |  |   |     |   |    |   |   |   |    |    
|                                        |                                                     | FelCor merger costs                                                                                                                                            |                                          |                                              | 2,028   |                 |        |               |       |              |     |             |  |              |   |              |  |   |     |   |    |   |   |   |    |    
|                                        |                                                     | Costs to terminate leases with Prime Hospitality Corporation                                                                                                   |                                          |                                              |        |                 |        |               |       |              |     |             |  |              |   |              |  |   |     |   |    |   |   |   |    |    
|                                        |                                                     | Restructuring charge                                                                                                                                           |                                          |                                              | 1,080   |                 |        |               |       |              |     |             |  |              |   |              |  |   |     |   |    |   |   |   |    |    
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |         |                 |        |               |        |              |     |             |   |              |   |              |   |   |     |   |     |   |   |  
|                                        |                                                     | Total operating expenses                                                                                                                                       |                                          |                                              | 4,896   |                 |        |               | 18,357 |              |     |             |  |              |   |              |  |   |     |   | 57  |   |   |   |    |    
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |         |                 |        |               |        |              |     |             |   |              |   |              |   |   |     |   |     |   |   |  
|                                        |                                                     | Net operating income                                                                                                                                           |                                          |                                              | (3,296  | )               |        |               | 19,137 |              |     |             |  |              |   |              |  |   |     |   | 136 |   |   |   |    |    
|                                        |                                                     | Interest expense, net                                                                                                                                          |                                          |                                              | 22,291  |                 |        |               | 7,300  |              |     |             |  |              |   |              |  |   |     |   | (1  | ) |   |   |    |    
|                                        |                                                     | Equity in income from consolidated entities                                                                                                                    |                                          |                                              | (6,994  | )               |        |               |       |              |     |             |  |              |   |              |  |   |     |   |    |   |   |   |    |    
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |         |                 |        |               |        |              |     |             |   |              |   |              |   |   |     |   |     |   |   |  
|                                        |                                                     | Income (loss) from continuing operations before minority interests,
income tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                          |                                              | (18,593 | )               |        |               | 11,837 |              |     |             |  |              |   |              |  |   |     |   | 137 |   |   |   |    |    
|                                        |                                                     | Minority interests                                                                                                                                             |                                          |                                              | (22     | )               |        |               |       |              |     |             |  |              |   |              |  |   |     |   |    |   |   |   |    |    
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |         |                 |        |               |        |              |     |             |   |              |   |              |   |   |     |   |     |   |   |  
|                                        |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                          |                                              | (18,571 | )               |        |               | 11,837 |              |     |             |  |              |   |              |  |   |     |   | 137 |   |   |   |    |    
|                                        |                                                     | Income tax benefit                                                                                                                                             |                                          |                                              | (521    | )               |        |               |       |              |     |             |  |              |   |              |  |   |     |   |    |   |   |   |    |    
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |         |                 |        |               |        |              |     |             |   |              |   |              |   |   |     |   |     |   |   |  
|                                        |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                          |                                              | (18,050 | )               |        |               | 11,837 |              |     |             |  |              |   |              |  |   |     |   | 137 |   |   |   |    |    
|                                        |                                                     | Discontinued operations:                                                                                                                                       |                                          |                                              |         |                 |        |               |        |              |     |             |   |              |   |              |   |   |     |   |     |   |   |   |     |    
|                                        |                                                     |                                                                                                                                                                |                                          | Income (loss) from operations of assets sold |         |                 |       |               |        |              | 432 |             |   |              |   |              |   |   |    |   |     |   |  |   |     |     | 223 | 
|                                        |                                                     |                                                                                                                                                                |                                          | Income tax benefit                           |         |                 |       |               |        |              |    |             |   |              |  |              |   |   |    |   |     |   |  |   |     |     |    | 
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |         |                 |        |               |        |              |     |             |   |              |   |              |   |   |     |   |     |   |   |  
|                                        |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations |                                              |         |                |        |               |        | 432          |     |             |   |             |   |              |   |  |     |   |     |  |   |   |     | 223 |    
|                                        |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                          |                                              |        |                 |        |               |       |              |     |             |  |              |   |              |  |   |     |   |    |   |   |   |    |    
|                                        |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                          |                                              |        |                 |        |               |       |              |     |             |  |              |   |              |  |   |     |   |    |   |   |   |    |    
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |         |                 |        |               |        |              |     |             |   |              |   |              |   |   |     |   |     |   |   |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |         |                 |        |               |        |              |     |             |   |              |   |              |   |   |     |   |     |   |   |  
|                                        |                                                     | Net income (loss)                                                                                                                                              |                                          |                                              | (18,050 | )               |        |               | 12,269 |              |     |             |  |              |   |              |  |   |     |   | 137 |   |   |   | 223 |    
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |         |                 |        |               |        |              |     |             |   |              |   |              |   |   |     |   |     |   |   |  





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended September 30, 2001
(in thousands)

|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |   |              |   |              |     |              |     |              |       |              |        |              |     |   |      |   |     |   |     |   |     |   |     |   |   | 
|--------------------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------- | -------------------------------------------- | --- | ------------ | - | ------------ | - | ------------ | --- | ------------ | --- | ------------ | ----- | ------------ | ------ | ------------ | --- | - | ---- | - | --- | - | --- | - | --- | - | --- | - | - | 
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     | MeriStar Sub |   | MeriStar Sub |   | MeriStar Sub |     | MeriStar Sub |     | MeriStar Sub |       | MeriStar Sub |        | MeriStar Sub
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     | 8F, L.P.     |   | 8G, LLC      |   | 6H, L.P.     |     | 8B, LLC      |     | 1C, L.P.     |       | 8E, LLC      |        | 7F, LLC     
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |   |              |   |              |     |              |     |              |       |              |        |             
|Participating lease revenue             |                                                     |                                                                                                                                                                | 708                                      |                                              |     |              |  |              |   |              | 357 |              |     |              | 1,722 |              |        |              | 180 |   |      |   | 475 |   |     |   | 312 |  
|                                        | Hotel operations:                                   |                                                                                                                                                                |                                          |                                             |     |              |   |             |   |              |     |             |     |              |       |             |        |              |     |  |      |   |     |  |     |   |     |  |    
|                                        |                                                     | Rooms                                                                                                                                                          |                                          |                                              |    |              |   |              |  |              |     |              |    |              |       |              |       |              |     |   |     |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Food and beverage                                                                                                                                              |                                          |                                              |    |              |   |              |  |              |     |              |    |              |       |              |       |              |     |   |     |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Other operating departments                                                                                                                                    |                                          |                                              |    |              |   |              |  |              |     |              |    |              |       |              |       |              |     |   |     |   |     |   |    |   |     |   |    |  
|                                        | Office rental and other revenues                    |                                                                                                                                                                |                                          |                                             |     |              |   |             |   |              |     |             |     |              |       |             |        |              |     |  |      |   |     | 2 |     |   |     |  |    
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |   |              |   |              |     |              |     |              |       |              |        |              |     |   |      |   |     |   |     |   |     |  
|Total revenue                           |                                                     |                                                                                                                                                                | 708                                      |                                              |     |              |  |              |   |              | 357 |              |     |              | 1,722 |              |        |              | 180 |   |      |   | 477 |   |     |   | 312 |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |   |              |   |              |     |              |     |              |       |              |        |              |     |   |      |   |     |   |     |   |     |  
|Hotel operating expenses by department: |                                                     |                                                                                                                                                                |                                         |                                              |     |              |  |              |   |              |    |              |     |              |      |              |        |              |    |   |      |   |    |   |     |   |    |  
|                                        |                                                     | Rooms                                                                                                                                                          |                                          |                                              |    |              |   |              |  |              |     |              |    |              |       |              |       |              |     |   |     |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Food and beverage                                                                                                                                              |                                          |                                              |    |              |   |              |  |              |     |              |    |              |       |              |       |              |     |   |     |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Other operating departments                                                                                                                                    |                                          |                                              |    |              |   |              |  |              |     |              |    |              |       |              |       |              |     |   |     |   |     |   |    |   |     |   |    |  
|                                        | Office rental, parking and other operating expenses |                                                                                                                                                                |                                          |                                             |     |              |   |             |   |              |     |             |     |              |       |             |        |              |     |  |      |   |     |  |     |   |     |  |    
|Undistributed operating expenses:       |                                                     |                                                                                                                                                                |                                          |                                              |     |              |   |              |   |              |     |              |     |              |       |              |        |              |     |   |      |   |     |   |     |   |     |  
|                                        |                                                     | Administrative and general                                                                                                                                     |                                          |                                              | 1   |              |   |              |  |              |     |              | 1   |              |       |              | 1      |              |     |   | 1    |   |     |   | 1   |   |     |   | 1   |  
|                                        |                                                     | Property operating costs                                                                                                                                       |                                          |                                              |    |              |   |              |  |              |     |              |    |              |       |              |       |              |     |   |     |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Property taxes, insurance and other                                                                                                                            |                                          |                                              | 160 |              |   |              |  |              |     |              | 27  |              |       |              | 3,007  |              |     |   | 206  |   |     |   | 45  |   |     |   | 38  |  
|                                        |                                                     | Depreciation and amortization                                                                                                                                  |                                          |                                              | 111 |              |   |              |  |              |     |              | 106 |              |       |              | 589    |              |     |   | 252  |   |     |   | 143 |   |     |   | 115 |  
|                                        |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                          |                                              |    |              |   |              |  |              |     |              |    |              |       |              |       |              |     |   |     |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                          |                                              |    |              |   |              |  |              |     |              |    |              |       |              |       |              |     |   |     |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Swap termination fees                                                                                                                                          |                                          |                                              |    |              |   |              |  |              |     |              |    |              |       |              |       |              |     |   |     |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Write down of deferred costs                                                                                                                                   |                                          |                                              |    |              |   |              |  |              |     |              |    |              |       |              |       |              |     |   |     |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                          |                                              |    |              |   |              |  |              |     |              |    |              |       |              |       |              |     |   |     |   |     |   |    |   |     |   |    |  
|                                        |                                                     | FelCor merger costs                                                                                                                                            |                                          |                                              |    |              |   |              |  |              |     |              |    |              |       |              |       |              |     |   |     |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Costs to terminate leases with Prime Hospitality Corporation                                                                                                   |                                          |                                              |    |              |   |              |  |              |     |              |    |              |       |              |       |              |     |   |     |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Restructuring charge                                                                                                                                           |                                          |                                              |    |              |   |              |  |              |     |              |    |              |       |              |       |              |     |   |     |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |   |              |   |              |     |              |     |              |       |              |        |              |     |   |      |   |     |   |     |   |     |  
|                                        |                                                     | Total operating expenses                                                                                                                                       |                                          |                                              | 272 |              |   |              |  |              |     |              | 134 |              |       |              | 3,597  |              |     |   | 459  |   |     |   | 189 |   |     |   | 154 |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |   |              |   |              |     |              |     |              |       |              |        |              |     |   |      |   |     |   |     |   |     |  
|                                        |                                                     | Net operating income                                                                                                                                           |                                          |                                              | 436 |              |   |              |  |              |     |              | 223 |              |       |              | (1,875 | )            |     |   | (279 | ) |     |   | 288 |   |     |   | 158 |  
|                                        |                                                     | Interest expense, net                                                                                                                                          |                                          |                                              | 16  |              |   |              |  |              |     |              | (1  | )            |       |              | 6      |              |     |   | (6   | ) |     |   | (3  | ) |     |   | (3  | )
|                                        |                                                     | Equity in income from consolidated entities                                                                                                                    |                                          |                                              |    |              |   |              |  |              |     |              |    |              |       |              |       |              |     |   |     |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |   |              |   |              |     |              |     |              |       |              |        |              |     |   |      |   |     |   |     |   |     |  
|                                        |                                                     | Income (loss) from continuing operations before minority interests,
income tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                          |                                              | 420 |              |   |              |  |              |     |              | 224 |              |       |              | (1,881 | )            |     |   | (273 | ) |     |   | 291 |   |     |   | 161 |  
|                                        |                                                     | Minority interests                                                                                                                                             |                                          |                                              |    |              |   |              |  |              |     |              |    |              |       |              |       |              |     |   |     |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |   |              |   |              |     |              |     |              |       |              |        |              |     |   |      |   |     |   |     |   |     |  
|                                        |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                          |                                              | 420 |              |   |              |  |              |     |              | 224 |              |       |              | (1,881 | )            |     |   | (273 | ) |     |   | 291 |   |     |   | 161 |  
|                                        |                                                     | Income tax benefit                                                                                                                                             |                                          |                                              |    |              |   |              |  |              |     |              |    |              |       |              |       |              |     |   |     |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |   |              |   |              |     |              |     |              |       |              |        |              |     |   |      |   |     |   |     |   |     |  
|                                        |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                          |                                              | 420 |              |   |              |  |              |     |              | 224 |              |       |              | (1,881 | )            |     |   | (273 | ) |     |   | 291 |   |     |   | 161 |  
|                                        |                                                     | Discontinued operations:                                                                                                                                       |                                          |                                              |     |              |   |              |   |              |     |              |     |              |       |              |        |              |     |   |      |   |     |   |     |   |     |   |     |  
|                                        |                                                     |                                                                                                                                                                |                                          | Income (loss) from operations of assets sold |     |              |  |              |   |              |    |              |     |              |      |              |        |              |    |   |      |   |    |   |     |   |    |   |     |   |  | 
|                                        |                                                     |                                                                                                                                                                |                                          | Income tax benefit                           |     |              |  |              |   |              |    |              |     |              |      |              |        |              |    |   |      |   |    |   |     |   |    |   |     |   |  | 
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |   |              |   |              |     |              |     |              |       |              |        |              |     |   |      |   |     |   |     |   |     |  
|                                        |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations |                                              |     |             |   |              |   |             |     |              |     |             |       |              |        |             |     |   |      |  |     |   |     |  |     |   |     |  |  
|                                        |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                          |                                              |    |              |   |              |  |              |     |              |    |              |       |              |       |              |     |   |     |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                          |                                              |    |              |   |              |  |              |     |              |    |              |       |              |       |              |     |   |     |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |   |              |   |              |     |              |     |              |       |              |        |              |     |   |      |   |     |   |     |   |     |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |   |              |   |              |     |              |     |              |       |              |        |              |     |   |      |   |     |   |     |   |     |  
|                                        |                                                     | Net income (loss)                                                                                                                                              |                                          |                                              | 420 |              |   |              |  |              |     |              | 224 |              |       |              | (1,881 | )            |     |   | (273 | ) |     |   | 291 |   |     |   | 161 |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |   |              |   |              |     |              |     |              |       |              |        |              |     |   |      |   |     |   |     |   |     |  





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended September 30, 2001
(in thousands)



|                                        |                                                     |                                                                                                                                                                |                                          |                                              |    |              |     |              |     |              |   |              |   |              |     |              |     |              |       |   |     |   |     |   |     |   |     |   |     |   |   | 
|--------------------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------- | -------------------------------------------- | -- | ------------ | --- | ------------ | --- | ------------ | - | ------------ | - | ------------ | --- | ------------ | --- | ------------ | ----- | - | --- | - | --- | - | --- | - | --- | - | --- | - | - | 
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |    | MeriStar Sub |     | MeriStar Sub |     | MeriStar Sub |   | MeriStar Sub |   | MeriStar Sub |     | MeriStar Sub |     | MeriStar Sub
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |    | 5L, LLC      |     | 3C, LLC      |     | 5R, LLC      |   | 6D, LLC      |   | 6E, LLC      |     | 4E, L.P.     |     | 1B, LLC     
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |    |              |     |              |     |              |   |              |   |              |     |              |     |             
|Participating lease revenue             |                                                     |                                                                                                                                                                | 159                                      |                                              |    |              | 352 |              |     |              |  |              |   |              | 504 |              |     |              | 1,177 |   |     |   | 290 |   |     |   | 719 |  
|                                        | Hotel operations:                                   |                                                                                                                                                                |                                          |                                             |    |              |     |             |     |              |   |             |   |              |     |             |     |              |       |  |     |   |     |  |     |   |     |  |    
|                                        |                                                     | Rooms                                                                                                                                                          |                                          |                                              |   |              |     |              |    |              |   |              |  |              |     |              |    |              |       |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Food and beverage                                                                                                                                              |                                          |                                              |   |              |     |              |    |              |   |              |  |              |     |              |    |              |       |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Other operating departments                                                                                                                                    |                                          |                                              |   |              |     |              |    |              |   |              |  |              |     |              |    |              |       |   |    |   |     |   |    |   |     |   |    |  
|                                        | Office rental and other revenues                    |                                                                                                                                                                |                                          |                                             |    |              |     |             |     |              |   |             |   |              |     | 4            |     |              |       |  |     |   |     | 3 |     |   |     |  |    
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |    |              |     |              |     |              |   |              |   |              |     |              |     |              |       |   |     |   |     |   |     |   |     |  
|Total revenue                           |                                                     |                                                                                                                                                                | 159                                      |                                              |    |              | 352 |              |     |              |  |              |   |              | 508 |              |     |              | 1,177 |   |     |   | 293 |   |     |   | 719 |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |    |              |     |              |     |              |   |              |   |              |     |              |     |              |       |   |     |   |     |   |     |   |     |  
|Hotel operating expenses by department: |                                                     |                                                                                                                                                                |                                         |                                              |    |              |    |              |     |              |  |              |   |              |    |              |     |              |      |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Rooms                                                                                                                                                          |                                          |                                              |   |              |     |              |    |              |   |              |  |              |     |              |    |              |       |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Food and beverage                                                                                                                                              |                                          |                                              |   |              |     |              |    |              |   |              |  |              |     |              |    |              |       |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Other operating departments                                                                                                                                    |                                          |                                              |   |              |     |              |    |              |   |              |  |              |     |              |    |              |       |   |    |   |     |   |    |   |     |   |    |  
|                                        | Office rental, parking and other operating expenses |                                                                                                                                                                |                                          |                                             |    |              |     |             |     |              |   |             |   |              |     |             |     |              |       |  |     |   |     |  |     |   |     |  |    
|Undistributed operating expenses:       |                                                     |                                                                                                                                                                |                                          |                                              |    |              |     |              |     |              |   |              |   |              |     |              |     |              |       |   |     |   |     |   |     |   |     |  
|                                        |                                                     | Administrative and general                                                                                                                                     |                                          |                                              | 1  |              |     |              | 1   |              |   |              |  |              |     |              | 1   |              |       |   | 1   |   |     |   | 1   |   |     |   | 1   |  
|                                        |                                                     | Property operating costs                                                                                                                                       |                                          |                                              |   |              |     |              |    |              |   |              |  |              |     |              |    |              |       |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Property taxes, insurance and other                                                                                                                            |                                          |                                              | 30 |              |     |              | 115 |              |   |              |  |              |     |              | 58  |              |       |   | 142 |   |     |   | 119 |   |     |   | 44  |  
|                                        |                                                     | Depreciation and amortization                                                                                                                                  |                                          |                                              | 31 |              |     |              | 171 |              |   |              |  |              |     |              | 128 |              |       |   | 422 |   |     |   | 228 |   |     |   | 153 |  
|                                        |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                          |                                              |   |              |     |              |    |              |   |              |  |              |     |              |    |              |       |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                          |                                              |   |              |     |              |    |              |   |              |  |              |     |              |    |              |       |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Swap termination fees                                                                                                                                          |                                          |                                              |   |              |     |              |    |              |   |              |  |              |     |              |    |              |       |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Write down of deferred costs                                                                                                                                   |                                          |                                              |   |              |     |              |    |              |   |              |  |              |     |              |    |              |       |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                          |                                              |   |              |     |              |    |              |   |              |  |              |     |              |    |              |       |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     | FelCor merger costs                                                                                                                                            |                                          |                                              |   |              |     |              |    |              |   |              |  |              |     |              |    |              |       |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Costs to terminate leases with Prime Hospitality Corporation                                                                                                   |                                          |                                              |   |              |     |              |    |              |   |              |  |              |     |              |    |              |       |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Restructuring charge                                                                                                                                           |                                          |                                              |   |              |     |              |    |              |   |              |  |              |     |              |    |              |       |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |    |              |     |              |     |              |   |              |   |              |     |              |     |              |       |   |     |   |     |   |     |   |     |  
|                                        |                                                     | Total operating expenses                                                                                                                                       |                                          |                                              | 62 |              |     |              | 287 |              |   |              |  |              |     |              | 187 |              |       |   | 565 |   |     |   | 348 |   |     |   | 198 |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |    |              |     |              |     |              |   |              |   |              |     |              |     |              |       |   |     |   |     |   |     |   |     |  
|                                        |                                                     | Net operating income                                                                                                                                           |                                          |                                              | 97 |              |     |              | 65  |              |   |              |  |              |     |              | 321 |              |       |   | 612 |   |     |   | (55 | ) |     |   | 521 |  
|                                        |                                                     | Interest expense, net                                                                                                                                          |                                          |                                              | (2 | )            |     |              | (4  | )            |   |              |  |              |     |              | (3  | )            |       |   | (10 | ) |     |   | (5  | ) |     |   | (3  | )
|                                        |                                                     | Equity in income from consolidated entities                                                                                                                    |                                          |                                              |   |              |     |              |    |              |   |              |  |              |     |              |    |              |       |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |    |              |     |              |     |              |   |              |   |              |     |              |     |              |       |   |     |   |     |   |     |   |     |  
|                                        |                                                     | Income (loss) from continuing operations before minority interests,
income tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                          |                                              | 99 |              |     |              | 69  |              |   |              |   |              |     |              | 324 |              |       |   | 622 |   |     |   | (50 | ) |     |   | 524 |  
|                                        |                                                     | Minority interests                                                                                                                                             |                                          |                                              |   |              |     |              |    |              |   |              |  |              |     |              |    |              |       |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |    |              |     |              |     |              |   |              |   |              |     |              |     |              |       |   |     |   |     |   |     |   |     |  
|                                        |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                          |                                              | 99 |              |     |              | 69  |              |   |              |   |              |     |              | 324 |              |       |   | 622 |   |     |   | (50 | ) |     |   | 524 |  
|                                        |                                                     | Income tax benefit                                                                                                                                             |                                          |                                              |   |              |     |              |    |              |   |              |  |              |     |              |    |              |       |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |    |              |     |              |     |              |   |              |   |              |     |              |     |              |       |   |     |   |     |   |     |   |     |  
|                                        |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                          |                                              | 99 |              |     |              | 69  |              |   |              |   |              |     |              | 324 |              |       |   | 622 |   |     |   | (50 | ) |     |   | 524 |  
|                                        |                                                     | Discontinued operations:                                                                                                                                       |                                          |                                              |    |              |     |              |     |              |   |              |   |              |     |              |     |              |       |   |     |   |     |   |     |   |     |   |     |  
|                                        |                                                     |                                                                                                                                                                |                                          | Income (loss) from operations of assets sold |    |              |    |              |     |              |  |              |   |              |    |              |     |              |      |   |     |   |    |   |     |   |    |   |     |   |  | 
|                                        |                                                     |                                                                                                                                                                |                                          | Income tax benefit                           |    |              |    |              |     |              |  |              |   |              |    |              |     |              |      |   |     |   |    |   |     |   |    |   |     |   |  | 
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |    |              |     |              |     |              |   |              |   |              |     |              |     |              |       |   |     |   |     |   |     |   |     |  
|                                        |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations |                                              |    |             |     |              |     |             |   |              |   |             |     |              |     |             |       |   |     |  |     |   |     |  |     |   |     |  |  
|                                        |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                          |                                              |   |              |     |              |    |              |   |              |   |              |     |              |    |              |       |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                          |                                              |   |              |     |              |    |              |   |              |   |              |     |              |    |              |       |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |    |              |     |              |     |              |   |              |   |              |     |              |     |              |       |   |     |   |     |   |     |   |     |  
|                                        |                                                     | Net income (loss)                                                                                                                                              |                                          |                                              | 99 |              |     |              | 69  |              |   |              |  |              |     |              | 324 |              |       |   | 622 |   |     |   | (50 | ) |     |   | 524 |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |    |              |     |              |     |              |   |              |   |              |     |              |     |              |       |   |     |   |     |   |     |   |     |  



---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended September 30, 2001
(in thousands)

|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |     |              |   |              |     |     |     |   |     |   |     |   |     |   |   | 
|--------------------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------- | -------------------------------------------- | --- | ------------ | --- | ------------ | --- | ------------ | --- | ------------ | --- | ------------ | - | ------------ | --- | --- | --- | - | --- | - | --- | - | --- | - | - | 
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     | MeriStar Sub |     | MeriStar Sub |     | MeriStar Sub |     | MeriStar Sub |     | MeriStar Sub |   | MeriStar Sub
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     | 5F, L.P.     |     | 6G, LLC      |     | 8C, LLC      |     | 4C, L.P.     |     | 4H, L.P.     |   | 7E, LLC     
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |     |              |   |             
|Participating lease revenue             |                                                     |                                                                                                                                                                | 630                                      |                                              |     |              | 569 |              |     |              | 519 |              |     |              |  |              |     |     | 131 |   |     |   | 437 |  
|                                        | Hotel operations:                                   |                                                                                                                                                                |                                          |                                             |     |              |     |             |     |              |     |             |     |              |   |             |     |     |     |  |     |   |     |  |    
|                                        |                                                     | Rooms                                                                                                                                                          |                                          |                                              |    |              |     |              |    |              |     |              |    |              |   |              |    |     |     |   |    |   |     |   |    |  
|                                        |                                                     | Food and beverage                                                                                                                                              |                                          |                                              |    |              |     |              |    |              |     |              |    |              |   |              |    |     |     |   |    |   |     |   |    |  
|                                        |                                                     | Other operating departments                                                                                                                                    |                                          |                                              |    |              |     |              |    |              |     |              |    |              |   |              |    |     |     |   |    |   |     |   |    |  
|                                        | Office rental and other revenues                    |                                                                                                                                                                |                                          |                                             |     |              |     |             |     |              |     |             |     |              |   |             |     |     |     |  |     |   |     |  |    
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |     |              |   |              |     |     |     |   |     |   |     |  
|Total revenue                           |                                                     |                                                                                                                                                                | 630                                      |                                              |     |              | 569 |              |     |              | 519 |              |     |              |  |              |     |     | 131 |   |     |   | 437 |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |     |              |   |              |     |     |     |   |     |   |     |  
|Hotel operating expenses by department: |                                                     |                                                                                                                                                                |                                         |                                              |     |              |    |              |     |              |    |              |     |              |  |              |     |     |    |   |     |   |    |  
|                                        |                                                     | Rooms                                                                                                                                                          |                                          |                                              |    |              |     |              |    |              |     |              |    |              |   |              |    |     |     |   |    |   |     |   |    |  
|                                        |                                                     | Food and beverage                                                                                                                                              |                                          |                                              |    |              |     |              |    |              |     |              |    |              |   |              |    |     |     |   |    |   |     |   |    |  
|                                        |                                                     | Other operating departments                                                                                                                                    |                                          |                                              |    |              |     |              |    |              |     |              |    |              |   |              |    |     |     |   |    |   |     |   |    |  
|                                        | Office rental, parking and other operating expenses |                                                                                                                                                                |                                          |                                             |     |              |     |             |     |              |     |             |     |              |   |             |     |     |     |  |     |   |     |  |    
|Undistributed operating expenses:       |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |     |              |   |              |     |     |     |   |     |   |     |  
|                                        |                                                     | Administrative and general                                                                                                                                     |                                          |                                              | 1   |              |     |              | 1   |              |     |              | 1   |              |   |              |    |     |     |   | 1   |   |     |   | 1   |  
|                                        |                                                     | Property operating costs                                                                                                                                       |                                          |                                              |    |              |     |              |    |              |     |              |    |              |   |              |    |     |     |   |    |   |     |   |    |  
|                                        |                                                     | Property taxes, insurance and other                                                                                                                            |                                          |                                              | 94  |              |     |              | 78  |              |     |              | 170 |              |   |              |    |     |     |   | 42  |   |     |   | 47  |  
|                                        |                                                     | Depreciation and amortization                                                                                                                                  |                                          |                                              | 262 |              |     |              | 204 |              |     |              | 332 |              |   |              |    |     |     |   | 133 |   |     |   | 150 |  
|                                        |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                          |                                              |    |              |     |              |    |              |     |              |    |              |   |              |    |     |     |   |    |   |     |   |    |  
|                                        |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                          |                                              |    |              |     |              |    |              |     |              |    |              |   |              |    |     |     |   |    |   |     |   |    |  
|                                        |                                                     | Swap termination fees                                                                                                                                          |                                          |                                              |    |              |     |              |    |              |     |              |    |              |   |              |    |     |     |   |    |   |     |   |    |  
|                                        |                                                     | Write down of deferred costs                                                                                                                                   |                                          |                                              |    |              |     |              |    |              |     |              |    |              |   |              |    |     |     |   |    |   |     |   |    |  
|                                        |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                          |                                              |    |              |     |              |    |              |     |              |    |              |   |              |    |     |     |   |    |   |     |   |    |  
|                                        |                                                     | FelCor merger costs                                                                                                                                            |                                          |                                              |    |              |     |              |    |              |     |              |    |              |   |              |    |     |     |   |    |   |     |   |    |  
|                                        |                                                     | Costs to terminate leases with Prime Hospitality Corporation                                                                                                   |                                          |                                              |    |              |     |              |    |              |     |              |    |              |   |              |    |     |     |   |    |   |     |   |    |  
|                                        |                                                     | Restructuring charge                                                                                                                                           |                                          |                                              |    |              |     |              |    |              |     |              |    |              |   |              |    |     |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |     |              |   |              |     |     |     |   |     |   |     |  
|                                        |                                                     | Total operating expenses                                                                                                                                       |                                          |                                              | 357 |              |     |              | 283 |              |     |              | 503 |              |   |              |    |     |     |   | 176 |   |     |   | 198 |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |     |              |   |              |     |     |     |   |     |   |     |  
|                                        |                                                     | Net operating income                                                                                                                                           |                                          |                                              | 273 |              |     |              | 286 |              |     |              | 16  |              |   |              |    |     |     |   | (45 | ) |     |   | 239 |  
|                                        |                                                     | Interest expense, net                                                                                                                                          |                                          |                                              | (5  | )            |     |              | (4  | )            |     |              | (5  | )            |   |              |    |     |     |   | (2  | ) |     |   | (4  | )
|                                        |                                                     | Equity in income from consolidated entities                                                                                                                    |                                          |                                              |    |              |     |              |    |              |     |              |    |              |   |              |    |     |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |     |              |   |              |     |     |     |   |     |   |     |  
|                                        |                                                     | Income (loss) from continuing operations before minority interests,
income tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                          |                                              | 278 |              |     |              | 290 |              |     |              | 21  |              |   |              |    |     |     |   | (43 | ) |     |   | 243 |  
|                                        |                                                     | Minority interests                                                                                                                                             |                                          |                                              |    |              |     |              |    |              |     |              |    |              |   |              |    |     |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |     |              |   |              |     |     |     |   |     |   |     |  
|                                        |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                          |                                              | 278 |              |     |              | 290 |              |     |              | 21  |              |   |              |    |     |     |   | (43 | ) |     |   | 243 |  
|                                        |                                                     | Income tax benefit                                                                                                                                             |                                          |                                              |    |              |     |              |    |              |     |              |    |              |   |              |    |     |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |     |              |   |              |     |     |     |   |     |   |     |  
|                                        |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                          |                                              | 278 |              |     |              | 290 |              |     |              | 21  |              |   |              |    |     |     |   | (43 | ) |     |   | 243 |  
|                                        |                                                     | Discontinued operations:                                                                                                                                       |                                          |                                              |     |              |     |              |     |              |     |              |     |              |   |              |     |     |     |   |     |   |     |   |     |  
|                                        |                                                     |                                                                                                                                                                |                                          | Income (loss) from operations of assets sold |     |              |    |              |     |              |    |              |     |              |  |              |     |     | (11 | ) |     |   |    |   |     |   |  | 
|                                        |                                                     |                                                                                                                                                                |                                          | Income tax benefit                           |     |              |    |              |     |              |    |              |     |              |  |              |     |     |    |   |     |   |    |   |     |   |  | 
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |     |              |   |              |     |     |     |   |     |   |     |  
|                                        |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations |                                              |     |             |     |              |     |             |     |              |     |             |   |              |     | (11 | )   |   |     |  |     |   |     |  |  
|                                        |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                          |                                              |    |              |     |              |    |              |     |              |    |              |   |              |    |     |     |   |    |   |     |   |    |  
|                                        |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                          |                                              |    |              |     |              |    |              |     |              |    |              |   |              |    |     |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |     |              |   |              |     |     |     |   |     |   |     |  
|                                        |                                                     | Net income (loss)                                                                                                                                              |                                          |                                              | 278 |              |     |              | 290 |              |     |              | 21  |              |   |              | (11 | )   |     |   | (43 | ) |     |   | 243 |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |     |              |   |              |     |     |     |   |     |   |     |  





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended September 30, 2001
(in thousands)



|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |       |                 |     |              |     |              |     |              |     |   |     |   |     |   |     |   |     |   |     |   |   | 
|--------------------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------- | -------------------------------------------- | --- | ------------ | --- | ------------ | --- | ------------ | ----- | --------------- | --- | ------------ | --- | ------------ | --- | ------------ | --- | - | --- | - | --- | - | --- | - | --- | - | --- | - | - | 
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     | MeriStar Sub |     | MeriStar Sub |     | MeriStar Sub |       | MeriStar Sub 7A |     | MeriStar Sub |     | MeriStar Sub |     | MeriStar Sub
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     | 3D, LLC      |     | 1A, LLC      |     | 5E, LLC      |       | Joint Venture   |     | 6K, LLC      |     | 2B, LLC      |     | 3A, LLC     
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |       |                 |     |              |     |              |     |             
|Participating lease revenue             |                                                     |                                                                                                                                                                | 416                                      |                                              |     |              | 505 |              |     |              | 1,166 |                 |     |              | 320 |              |     |              | 824 |   |     |   | 194 |   |     |   | 197 |  
|                                        | Hotel operations:                                   |                                                                                                                                                                |                                          |                                             |     |              |     |             |     |              |       |                |     |              |     |             |     |              |     |  |     |   |     |  |     |   |     |  |    
|                                        |                                                     | Rooms                                                                                                                                                          |                                          |                                              |    |              |     |              |    |              |       |                 |    |              |     |              |    |              |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Food and beverage                                                                                                                                              |                                          |                                              |    |              |     |              |    |              |       |                 |    |              |     |              |    |              |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Other operating departments                                                                                                                                    |                                          |                                              |    |              |     |              |    |              |       |                 |    |              |     |              |    |              |     |   |    |   |     |   |    |   |     |   |    |  
|                                        | Office rental and other revenues                    |                                                                                                                                                                |                                          |                                             |     |              |     |             |     |              |       |                |     |              |     |             |     |              |     |  |     |   |     |  |     |   |     |  |    
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |       |                 |     |              |     |              |     |              |     |   |     |   |     |   |     |   |     |  
|Total revenue                           |                                                     |                                                                                                                                                                | 416                                      |                                              |     |              | 505 |              |     |              | 1,166 |                 |     |              | 320 |              |     |              | 824 |   |     |   | 194 |   |     |   | 197 |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |       |                 |     |              |     |              |     |              |     |   |     |   |     |   |     |   |     |  
|Hotel operating expenses by department: |                                                     |                                                                                                                                                                |                                         |                                              |     |              |    |              |     |              |      |                 |     |              |    |              |     |              |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Rooms                                                                                                                                                          |                                          |                                              |    |              |     |              |    |              |       |                 |    |              |     |              |    |              |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Food and beverage                                                                                                                                              |                                          |                                              |    |              |     |              |    |              |       |                 |    |              |     |              |    |              |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Other operating departments                                                                                                                                    |                                          |                                              |    |              |     |              |    |              |       |                 |    |              |     |              |    |              |     |   |    |   |     |   |    |   |     |   |    |  
|                                        | Office rental, parking and other operating expenses |                                                                                                                                                                |                                          |                                             |     |              |     |             |     |              |       |                |     |              |     |             |     |              |     |  |     |   |     |  |     |   |     |  |    
|Undistributed operating expenses:       |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |       |                 |     |              |     |              |     |              |     |   |     |   |     |   |     |   |     |  
|                                        |                                                     | Administrative and general                                                                                                                                     |                                          |                                              | 1   |              |     |              | 1   |              |       |                 | 1   |              |     |              | 1   |              |     |   | 1   |   |     |   |    |   |     |   | 1   |  
|                                        |                                                     | Property operating costs                                                                                                                                       |                                          |                                              |    |              |     |              |    |              |       |                 |    |              |     |              |    |              |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Property taxes, insurance and other                                                                                                                            |                                          |                                              | 66  |              |     |              | 83  |              |       |                 | 109 |              |     |              | 25  |              |     |   | 135 |   |     |   | 45  |   |     |   | 31  |  
|                                        |                                                     | Depreciation and amortization                                                                                                                                  |                                          |                                              | 242 |              |     |              | 120 |              |       |                 | 468 |              |     |              | 100 |              |     |   | 184 |   |     |   | 95  |   |     |   | 85  |  
|                                        |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                          |                                              |    |              |     |              |    |              |       |                 |    |              |     |              |    |              |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                          |                                              |    |              |     |              |    |              |       |                 |    |              |     |              |    |              |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Swap termination fees                                                                                                                                          |                                          |                                              |    |              |     |              |    |              |       |                 |    |              |     |              |    |              |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Write down of deferred costs                                                                                                                                   |                                          |                                              |    |              |     |              |    |              |       |                 |    |              |     |              |    |              |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                          |                                              |    |              |     |              |    |              |       |                 |    |              |     |              |    |              |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     | FelCor merger costs                                                                                                                                            |                                          |                                              |    |              |     |              |    |              |       |                 |    |              |     |              |    |              |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Costs to terminate leases with Prime Hospitality Corporation                                                                                                   |                                          |                                              |    |              |     |              |    |              |       |                 |    |              |     |              |    |              |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Restructuring charge                                                                                                                                           |                                          |                                              |    |              |     |              |    |              |       |                 |    |              |     |              |    |              |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |       |                 |     |              |     |              |     |              |     |   |     |   |     |   |     |   |     |  
|                                        |                                                     | Total operating expenses                                                                                                                                       |                                          |                                              | 309 |              |     |              | 204 |              |       |                 | 578 |              |     |              | 126 |              |     |   | 320 |   |     |   | 140 |   |     |   | 117 |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |       |                 |     |              |     |              |     |              |     |   |     |   |     |   |     |   |     |  
|                                        |                                                     | Net operating income                                                                                                                                           |                                          |                                              | 107 |              |     |              | 301 |              |       |                 | 588 |              |     |              | 194 |              |     |   | 504 |   |     |   | 54  |   |     |   | 80  |  
|                                        |                                                     | Interest expense, net                                                                                                                                          |                                          |                                              | (8  | )            |     |              | (3  | )            |       |                 | (9  | )            |     |              | (4  | )            |     |   | (6  | ) |     |   | 94  |   |     |   | (2  | )
|                                        |                                                     | Equity in income from consolidated entities                                                                                                                    |                                          |                                              |    |              |     |              |    |              |       |                 |    |              |     |              |    |              |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |       |                 |     |              |     |              |     |              |     |   |     |   |     |   |     |   |     |  
|                                        |                                                     | Income (loss) from continuing operations before minority interests,
income tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                          |                                              | 115 |              |     |              | 304 |              |       |                 | 597 |              |     |              | 198 |              |     |   | 510 |   |     |   | (40 | ) |     |   | 82  |  
|                                        |                                                     | Minority interests                                                                                                                                             |                                          |                                              |    |              |     |              |    |              |       |                 |    |              |     |              |    |              |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |       |                 |     |              |     |              |     |              |     |   |     |   |     |   |     |   |     |  
|                                        |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                          |                                              | 115 |              |     |              | 304 |              |       |                 | 597 |              |     |              | 198 |              |     |   | 510 |   |     |   | (40 | ) |     |   | 82  |  
|                                        |                                                     | Income tax benefit                                                                                                                                             |                                          |                                              |    |              |     |              |    |              |       |                 |    |              |     |              |    |              |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |       |                 |     |              |     |              |     |              |     |   |     |   |     |   |     |   |     |  
|                                        |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                          |                                              | 115 |              |     |              | 304 |              |       |                 | 597 |              |     |              | 198 |              |     |   | 510 |   |     |   | (40 | ) |     |   | 82  |  
|                                        |                                                     | Discontinued operations:                                                                                                                                       |                                          |                                              |     |              |     |              |     |              |       |                 |     |              |     |              |     |              |     |   |     |   |     |   |     |   |     |   |     |  
|                                        |                                                     |                                                                                                                                                                |                                          | Income (loss) from operations of assets sold |     |              |    |              |     |              |      |                 |     |              |    |              |     |              |    |   |     |   |    |   |     |   |    |   |     |   |  | 
|                                        |                                                     |                                                                                                                                                                |                                          | Income tax benefit                           |     |              |    |              |     |              |      |                 |     |              |    |              |     |              |    |   |     |   |    |   |     |   |    |   |     |   |  | 
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |       |                 |     |              |     |              |     |              |     |   |     |   |     |   |     |   |     |  
|                                        |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations |                                              |     |             |     |              |     |             |       |                 |     |             |     |              |     |             |     |   |     |  |     |   |     |  |     |   |     |  |  
|                                        |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                          |                                              |    |              |     |              |    |              |       |                 |    |              |     |              |    |              |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                          |                                              |    |              |     |              |    |              |       |                 |    |              |     |              |    |              |     |   |    |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |       |                 |     |              |     |              |     |              |     |   |     |   |     |   |     |   |     |  
|                                        |                                                     | Net income (loss)                                                                                                                                              |                                          |                                              | 115 |              |     |              | 304 |              |       |                 | 597 |              |     |              | 198 |              |     |   | 510 |   |     |   | (40 | ) |     |   | 82  |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |       |                 |     |              |     |              |     |              |     |   |     |   |     |   |     |   |     |  



---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended September 30, 2001
(in thousands)

|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |      |             |     |              |     |   |    |   |    |   |     |   |      |   |   | 
|--------------------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------- | -------------------------------------------- | --- | ------------ | --- | ------------ | --- | ------------ | --- | ------------ | ---- | ----------- | --- | ------------ | --- | - | -- | - | -- | - | --- | - | ---- | - | - | 
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     | MeriStar Sub |     | MeriStar Sub |     | MeriStar Sub |     | MeriStar Sub |      | MDV Limited |     | MeriStar Sub
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     | 4A, L.P.     |     | 4D, LLC      |     | 2A, LLC      |     | 6L, LLC      |      | Partnership |     | 5C, LLC     
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |      |             |     |             
|Participating lease revenue             |                                                     |                                                                                                                                                                | 263                                      |                                              |     |              | 168 |              |     |              | 195 |              |      |             | 469 |              |     |   | 91 |   |    |   | 378 |  
|                                        | Hotel operations:                                   |                                                                                                                                                                |                                          |                                             |     |              |     |             |     |              |     |             |      |             |     |             |     |   |    |  |    |   |     |  |     
|                                        |                                                     | Rooms                                                                                                                                                          |                                          |                                              |    |              |     |              |    |              |     |              |     |             |     |              |    |   |    |   |   |   |     |   |     |  
|                                        |                                                     | Food and beverage                                                                                                                                              |                                          |                                              |    |              |     |              |    |              |     |              |     |             |     |              |    |   |    |   |   |   |     |   |     |  
|                                        |                                                     | Other operating departments                                                                                                                                    |                                          |                                              |    |              |     |              |    |              |     |              |     |             |     |              |    |   |    |   |   |   |     |   |     |  
|                                        | Office rental and other revenues                    |                                                                                                                                                                |                                          |                                             |     |              |     | 3            |     |              |     |             |      |             |     |             |     |   |    |  |    |   |     |  |     
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |      |             |     |              |     |   |    |   |    |   |     |  
|Total revenue                           |                                                     |                                                                                                                                                                | 263                                      |                                              |     |              | 171 |              |     |              | 195 |              |      |             | 469 |              |     |   | 91 |   |    |   | 378 |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |      |             |     |              |     |   |    |   |    |   |     |  
|Hotel operating expenses by department: |                                                     |                                                                                                                                                                |                                         |                                              |     |              |    |              |     |              |    |              |      |             |    |              |     |   |   |   |    |   |    |  
|                                        |                                                     | Rooms                                                                                                                                                          |                                          |                                              |    |              |     |              |    |              |     |              |     |             |     |              |    |   |    |   |   |   |     |   |     |  
|                                        |                                                     | Food and beverage                                                                                                                                              |                                          |                                              |    |              |     |              |    |              |     |              |     |             |     |              |    |   |    |   |   |   |     |   |     |  
|                                        |                                                     | Other operating departments                                                                                                                                    |                                          |                                              |    |              |     |              |    |              |     |              |     |             |     |              |    |   |    |   |   |   |     |   |     |  
|                                        | Office rental, parking and other operating expenses |                                                                                                                                                                |                                          |                                             |     |              |     |             |     |              |     |             |      |             |     |             |     |   |    |  |    |   |     |  |     
|Undistributed operating expenses:       |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |      |             |     |              |     |   |    |   |    |   |     |  
|                                        |                                                     | Administrative and general                                                                                                                                     |                                          |                                              | 1   |              |     |              | 1   |              |     |              |     |             |     |              | 1   |   |    |   |   |   |     |   | 1    |  
|                                        |                                                     | Property operating costs                                                                                                                                       |                                          |                                              |    |              |     |              |    |              |     |              |     |             |     |              |    |   |    |   |   |   |     |   |     |  
|                                        |                                                     | Property taxes, insurance and other                                                                                                                            |                                          |                                              | 68  |              |     |              | 47  |              |     |              | 49   |             |     |              | 52  |   |    |   | 28 |   |     |   | 793  |  
|                                        |                                                     | Depreciation and amortization                                                                                                                                  |                                          |                                              |    |              |     |              | 78  |              |     |              | 79   |             |     |              | 220 |   |    |   | 31 |   |     |   | 145  |  
|                                        |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                          |                                              |    |              |     |              |    |              |     |              |     |             |     |              |    |   |    |   |   |   |     |   |     |  
|                                        |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                          |                                              |    |              |     |              |    |              |     |              |     |             |     |              |    |   |    |   |   |   |     |   |     |  
|                                        |                                                     | Swap termination fees                                                                                                                                          |                                          |                                              |    |              |     |              |    |              |     |              |     |             |     |              |    |   |    |   |   |   |     |   |     |  
|                                        |                                                     | Write down of deferred costs                                                                                                                                   |                                          |                                              |    |              |     |              |    |              |     |              |     |             |     |              |    |   |    |   |   |   |     |   |     |  
|                                        |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                          |                                              |    |              |     |              |    |              |     |              |     |             |     |              |    |   |    |   |   |   |     |   |     |  
|                                        |                                                     | FelCor merger costs                                                                                                                                            |                                          |                                              |    |              |     |              |    |              |     |              |     |             |     |              |    |   |    |   |   |   |     |   |     |  
|                                        |                                                     | Costs to terminate leases with Prime Hospitality Corporation                                                                                                   |                                          |                                              |    |              |     |              |    |              |     |              |     |             |     |              |    |   |    |   |   |   |     |   |     |  
|                                        |                                                     | Restructuring charge                                                                                                                                           |                                          |                                              |    |              |     |              |    |              |     |              |     |             |     |              |    |   |    |   |   |   |     |   |     |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |      |             |     |              |     |   |    |   |    |   |     |  
|                                        |                                                     | Total operating expenses                                                                                                                                       |                                          |                                              | 69  |              |     |              | 126 |              |     |              | 128  |             |     |              | 273 |   |    |   | 59 |   |     |   | 939  |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |      |             |     |              |     |   |    |   |    |   |     |  
|                                        |                                                     | Net operating income                                                                                                                                           |                                          |                                              | 194 |              |     |              | 45  |              |     |              | 67   |             |     |              | 196 |   |    |   | 32 |   |     |   | (561 | )
|                                        |                                                     | Interest expense, net                                                                                                                                          |                                          |                                              | (7  | )            |     |              | (6  | )            |     |              | 171  |             |     |              | (4  | ) |    |   | (2 | ) |     |   | (10  | )
|                                        |                                                     | Equity in income from consolidated entities                                                                                                                    |                                          |                                              |    |              |     |              |    |              |     |              |     |             |     |              |    |   |    |   |   |   |     |   |     |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |      |             |     |              |     |   |    |   |    |   |     |  
|                                        |                                                     | Income (loss) from continuing operations before minority interests,
income tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                          |                                              | 201 |              |     |              | 51  |              |     |              | (104 | )           |     |              | 200 |   |    |   | 34 |   |     |   | (551 | )
|                                        |                                                     | Minority interests                                                                                                                                             |                                          |                                              |    |              |     |              |    |              |     |              |     |             |     |              |    |   |    |   |   |   |     |   |     |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |      |             |     |              |     |   |    |   |    |   |     |  
|                                        |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                          |                                              | 201 |              |     |              | 51  |              |     |              | (104 | )           |     |              | 200 |   |    |   | 34 |   |     |   | (551 | )
|                                        |                                                     | Income tax benefit                                                                                                                                             |                                          |                                              |    |              |     |              |    |              |     |              |     |             |     |              |    |   |    |   |   |   |     |   |     |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |      |             |     |              |     |   |    |   |    |   |     |  
|                                        |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                          |                                              | 201 |              |     |              | 51  |              |     |              | (104 | )           |     |              | 200 |   |    |   | 34 |   |     |   | (551 | )
|                                        |                                                     | Discontinued operations:                                                                                                                                       |                                          |                                              |     |              |     |              |     |              |     |              |      |             |     |              |     |   |    |   |    |   |     |   |      |  
|                                        |                                                     |                                                                                                                                                                |                                          | Income (loss) from operations of assets sold |     |              |    |              |     |              |    |              |      |             |    |              |     |   |   |   |    |   |    |   |      |   |  | 
|                                        |                                                     |                                                                                                                                                                |                                          | Income tax benefit                           |     |              |    |              |     |              |    |              |      |             |    |              |     |   |   |   |    |   |    |   |      |   |  | 
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |      |             |     |              |     |   |    |   |    |   |     |  
|                                        |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations |                                              |     |             |     |              |     |             |     |              |      |            |     |              |     |  |    |   |    |  |     |   |      |  |  
|                                        |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                          |                                              |    |              |     |              |    |              |     |              |     |             |     |              |    |   |    |   |   |   |     |   |     |  
|                                        |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                          |                                              |    |              |     |              |    |              |     |              |     |             |     |              |    |   |    |   |   |   |     |   |     |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |      |             |     |              |     |   |    |   |    |   |     |  
|                                        |                                                     | Net income (loss)                                                                                                                                              |                                          |                                              | 201 |              |     |              | 51  |              |     |              | (104 | )           |     |              | 200 |   |    |   | 34 |   |     |   | (551 | )
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |      |             |     |              |     |   |    |   |    |   |     |  





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended September 30, 2001
(in thousands)



|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |       |              |     |              |     |              |     |              |       |              |       |              |     |   |     |   |     |   |     |   |    |   |      |   |   | 
|--------------------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------- | -------------------------------------------- | --- | ------------ | ----- | ------------ | --- | ------------ | --- | ------------ | --- | ------------ | ----- | ------------ | ----- | ------------ | --- | - | --- | - | --- | - | --- | - | -- | - | ---- | - | - | 
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     | MeriStar Sub |       | MeriStar Sub |     | MeriStar Sub |     | MeriStar Sub |     | MeriStar Sub |       | MeriStar Sub |       | MeriStar Sub
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     | 6J, LLC      |       | 1D, L.P.     |     | 7B, L.P.     |     | 7D, LLC      |     | 7G, LLC      |       | 6B, LLC      |       | 4I, L.P.    
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |       |              |     |              |     |              |     |              |       |              |       |             
|Participating lease revenue             |                                                     |                                                                                                                                                                | 497                                      |                                              |     |              | 1,585 |              |     |              | 383 |              |     |              | 1,715 |              |       |              | 201 |   |     |   | 332 |   |     |   | 17 |  
|                                        | Hotel operations:                                   |                                                                                                                                                                |                                          |                                             |     |              |       |             |     |              |     |             |     |              |       |             |       |              |     |  |     |   |     |  |     |   |    |  |     
|                                        |                                                     | Rooms                                                                                                                                                          |                                          |                                              |    |              |       |              |    |              |     |              |    |              |       |              |      |              |     |   |    |   |     |   |    |   |    |   |     |  
|                                        |                                                     | Food and beverage                                                                                                                                              |                                          |                                              |    |              |       |              |    |              |     |              |    |              |       |              |      |              |     |   |    |   |     |   |    |   |    |   |     |  
|                                        |                                                     | Other operating departments                                                                                                                                    |                                          |                                              |    |              |       |              |    |              |     |              |    |              |       |              |      |              |     |   |    |   |     |   |    |   |    |   |     |  
|                                        | Office rental and other revenues                    |                                                                                                                                                                |                                          |                                             |     |              |       | 103          |     |              |     |             |     |              |       | (159         | )     |              |     |  |     |   |     |  |     |   |    | 4 |     
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |       |              |     |              |     |              |     |              |       |              |       |              |     |   |     |   |     |   |     |   |    |  
|Total revenue                           |                                                     |                                                                                                                                                                | 497                                      |                                              |     |              | 1,688 |              |     |              | 383 |              |     |              | 1,556 |              |       |              | 201 |   |     |   | 332 |   |     |   | 21 |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |       |              |     |              |     |              |     |              |       |              |       |              |     |   |     |   |     |   |     |   |    |  
|Hotel operating expenses by department: |                                                     |                                                                                                                                                                |                                         |                                              |     |              |      |              |     |              |    |              |     |              |      |              |       |              |    |   |     |   |    |   |     |   |   |  
|                                        |                                                     | Rooms                                                                                                                                                          |                                          |                                              |    |              |       |              |    |              |     |              |    |              |       |              |      |              |     |   |    |   |     |   |    |   |    |   |     |  
|                                        |                                                     | Food and beverage                                                                                                                                              |                                          |                                              |    |              |       |              |    |              |     |              |    |              |       |              |      |              |     |   |    |   |     |   |    |   |    |   |     |  
|                                        |                                                     | Other operating departments                                                                                                                                    |                                          |                                              |    |              |       |              |    |              |     |              |    |              |       |              |      |              |     |   |    |   |     |   |    |   |    |   |     |  
|                                        | Office rental, parking and other operating expenses |                                                                                                                                                                |                                          |                                             |     |              |       | 33           |     |              |     |             |     |              |       | 33           |       |              |     |  |     |   |     |  |     |   |    |  |     
|Undistributed operating expenses:       |                                                     |                                                                                                                                                                |                                          |                                              |     |              |       |              |     |              |     |              |     |              |       |              |       |              |     |   |     |   |     |   |     |   |    |  
|                                        |                                                     | Administrative and general                                                                                                                                     |                                          |                                              | 1   |              |       |              | 1   |              |     |              | 1   |              |       |              | 279   |              |     |   | 3   |   |     |   | 1   |   |    |   | 1    |  
|                                        |                                                     | Property operating costs                                                                                                                                       |                                          |                                              |    |              |       |              |    |              |     |              |    |              |       |              |      |              |     |   |    |   |     |   |    |   |    |   |     |  
|                                        |                                                     | Property taxes, insurance and other                                                                                                                            |                                          |                                              | 57  |              |       |              | 268 |              |     |              | 222 |              |       |              | 706   |              |     |   | 53  |   |     |   | 66  |   |    |   | 92   |  
|                                        |                                                     | Depreciation and amortization                                                                                                                                  |                                          |                                              | 152 |              |       |              | 545 |              |     |              | 226 |              |       |              | 407   |              |     |   | 187 |   |     |   | 113 |   |    |   | 213  |  
|                                        |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                          |                                              |    |              |       |              |    |              |     |              |    |              |       |              |      |              |     |   |    |   |     |   |    |   |    |   |     |  
|                                        |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                          |                                              |    |              |       |              |    |              |     |              |    |              |       |              |      |              |     |   |    |   |     |   |    |   |    |   |     |  
|                                        |                                                     | Swap termination fees                                                                                                                                          |                                          |                                              |    |              |       |              |    |              |     |              |    |              |       |              |      |              |     |   |    |   |     |   |    |   |    |   |     |  
|                                        |                                                     | Write down of deferred costs                                                                                                                                   |                                          |                                              |    |              |       |              |    |              |     |              |    |              |       |              |      |              |     |   |    |   |     |   |    |   |    |   |     |  
|                                        |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                          |                                              |    |              |       |              |    |              |     |              |    |              |       |              |      |              |     |   |    |   |     |   |    |   |    |   |     |  
|                                        |                                                     | FelCor merger costs                                                                                                                                            |                                          |                                              |    |              |       |              |    |              |     |              |    |              |       |              |      |              |     |   |    |   |     |   |    |   |    |   |     |  
|                                        |                                                     | Costs to terminate leases with Prime Hospitality Corporation                                                                                                   |                                          |                                              |    |              |       |              |    |              |     |              |    |              |       |              |      |              |     |   |    |   |     |   |    |   |    |   |     |  
|                                        |                                                     | Restructuring charge                                                                                                                                           |                                          |                                              |    |              |       |              |    |              |     |              |    |              |       |              |      |              |     |   |    |   |     |   |    |   |    |   |     |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |       |              |     |              |     |              |     |              |       |              |       |              |     |   |     |   |     |   |     |   |    |  
|                                        |                                                     | Total operating expenses                                                                                                                                       |                                          |                                              | 210 |              |       |              | 847 |              |     |              | 449 |              |       |              | 1,425 |              |     |   | 243 |   |     |   | 180 |   |    |   | 306  |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |       |              |     |              |     |              |     |              |       |              |       |              |     |   |     |   |     |   |     |   |    |  
|                                        |                                                     | Net operating income                                                                                                                                           |                                          |                                              | 287 |              |       |              | 841 |              |     |              | (66 | )            |       |              | 131   |              |     |   | (42 | ) |     |   | 152 |   |    |   | (285 | )
|                                        |                                                     | Interest expense, net                                                                                                                                          |                                          |                                              | (5  | )            |       |              | (7  | )            |     |              | 7   |              |       |              | 5     |              |     |   | (5  | ) |     |   | (1  | ) |    |   | (1   | )
|                                        |                                                     | Equity in income from consolidated entities                                                                                                                    |                                          |                                              |    |              |       |              |    |              |     |              |    |              |       |              |      |              |     |   |    |   |     |   |    |   |    |   |     |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |       |              |     |              |     |              |     |              |       |              |       |              |     |   |     |   |     |   |     |   |    |  
|                                        |                                                     | Income (loss) from continuing operations before minority interests,
income tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                          |                                              | 292 |              |       |              | 848 |              |     |              | (73 | )            |       |              | 126   |              |     |   | (37 | ) |     |   | 153 |   |    |   | (284 | )
|                                        |                                                     | Minority interests                                                                                                                                             |                                          |                                              |    |              |       |              |    |              |     |              |    |              |       |              |      |              |     |   |    |   |     |   |    |   |    |   |     |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |       |              |     |              |     |              |     |              |       |              |       |              |     |   |     |   |     |   |     |   |    |  
|                                        |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                          |                                              | 292 |              |       |              | 848 |              |     |              | (73 | )            |       |              | 126   |              |     |   | (37 | ) |     |   | 153 |   |    |   | (284 | )
|                                        |                                                     | Income tax benefit                                                                                                                                             |                                          |                                              |    |              |       |              |    |              |     |              |    |              |       |              |      |              |     |   |    |   |     |   |    |   |    |   |     |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |       |              |     |              |     |              |     |              |       |              |       |              |     |   |     |   |     |   |     |   |    |  
|                                        |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                          |                                              | 292 |              |       |              | 848 |              |     |              | (73 | )            |       |              | 126   |              |     |   | (37 | ) |     |   | 153 |   |    |   | (284 | )
|                                        |                                                     | Discontinued operations:                                                                                                                                       |                                          |                                              |     |              |       |              |     |              |     |              |     |              |       |              |       |              |     |   |     |   |     |   |     |   |    |   |      |  
|                                        |                                                     |                                                                                                                                                                |                                          | Income (loss) from operations of assets sold |     |              |      |              |     |              |    |              |     |              |      |              |       |              |    |   |     |   |    |   |     |   |   |   |      |   |  | 
|                                        |                                                     |                                                                                                                                                                |                                          | Income tax benefit                           |     |              |      |              |     |              |    |              |     |              |      |              |       |              |    |   |     |   |    |   |     |   |   |   |      |   |  | 
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |       |              |     |              |     |              |     |              |       |              |       |              |     |   |     |   |     |   |     |   |    |  
|                                        |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations |                                              |     |             |       |              |     |             |     |              |     |             |       |              |       |             |     |   |     |  |     |   |     |  |    |   |      |  |  
|                                        |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                          |                                              |    |              |       |              |    |              |     |              |    |              |       |              |      |              |     |   |    |   |     |   |    |   |    |   |     |  
|                                        |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                          |                                              |    |              |       |              |    |              |     |              |    |              |       |              |      |              |     |   |    |   |     |   |    |   |    |   |     |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |       |              |     |              |     |              |     |              |       |              |       |              |     |   |     |   |     |   |     |   |    |  
|                                        |                                                     | Net income (loss)                                                                                                                                              |                                          |                                              | 292 |              |       |              | 848 |              |     |              | (73 | )            |       |              | 126   |              |     |   | (37 | ) |     |   | 153 |   |    |   | (284 | )
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |       |              |     |              |     |              |     |              |       |              |       |              |     |   |     |   |     |   |     |   |    |  



---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended September 30, 2001
(in thousands)

|                                        |                                                     |                                                                                                                                                                |                                          |                                              |      |              |     |              |     |              |     |            |     |              |     |              |        |   |     |   |     |   |     |   |     |   |   | 
|--------------------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------- | -------------------------------------------- | ---- | ------------ | --- | ------------ | --- | ------------ | --- | ---------- | --- | ------------ | --- | ------------ | ------ | - | --- | - | --- | - | --- | - | --- | - | - | 
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |      | MeriStar Sub |     | MeriStar Sub |     | MeriStar Sub |     | AGH PSS I, |     | MeriStar Sub |     | MeriStar Sub
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |      | 5D, LLC      |     | 5H, LLC      |     | 7H, LLC      |     | Inc.       |     | 2D, LLC      |     | 4F, L.P.    
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |      |              |     |              |     |              |     |            |     |              |     |             
|Participating lease revenue             |                                                     |                                                                                                                                                                | 462                                      |                                              |      |              | 720 |              |     |              | 309 |            |     |              | 628 |              |        |   | 476 |   |     |   | 521 |  
|                                        | Hotel operations:                                   |                                                                                                                                                                |                                          |                                             |      |              |     |             |     |              |     |           |     |              |     |             |        |   |     |  |     |   |     |  |    
|                                        |                                                     | Rooms                                                                                                                                                          |                                          |                                              |     |              |     |              |    |              |     |            |    |              |     |              |       |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Food and beverage                                                                                                                                              |                                          |                                              |     |              |     |              |    |              |     |            |    |              |     |              |       |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Other operating departments                                                                                                                                    |                                          |                                              |     |              |     |              |    |              |     |            |    |              |     |              |       |   |     |   |    |   |     |   |    |  
|                                        | Office rental and other revenues                    |                                                                                                                                                                |                                          |                                             |      |              |     |             |     |              |     |           |     |              |     | 1            |        |   |     |  |     |   |     |  |    
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |      |              |     |              |     |              |     |            |     |              |     |              |        |   |     |   |     |   |     |  
|Total revenue                           |                                                     |                                                                                                                                                                | 462                                      |                                              |      |              | 720 |              |     |              | 309 |            |     |              | 629 |              |        |   | 476 |   |     |   | 521 |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |      |              |     |              |     |              |     |            |     |              |     |              |        |   |     |   |     |   |     |  
|Hotel operating expenses by department: |                                                     |                                                                                                                                                                |                                         |                                              |      |              |    |              |     |              |    |            |     |              |    |              |        |   |    |   |     |   |    |  
|                                        |                                                     | Rooms                                                                                                                                                          |                                          |                                              |     |              |     |              |    |              |     |            |    |              |     |              |       |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Food and beverage                                                                                                                                              |                                          |                                              |     |              |     |              |    |              |     |            |    |              |     |              |       |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Other operating departments                                                                                                                                    |                                          |                                              |     |              |     |              |    |              |     |            |    |              |     |              |       |   |     |   |    |   |     |   |    |  
|                                        | Office rental, parking and other operating expenses |                                                                                                                                                                |                                          |                                             |      |              |     |             |     |              |     |           |     |              |     |             |        |   |     |  |     |   |     |  |    
|Undistributed operating expenses:       |                                                     |                                                                                                                                                                |                                          |                                              |      |              |     |              |     |              |     |            |     |              |     |              |        |   |     |   |     |   |     |  
|                                        |                                                     | Administrative and general                                                                                                                                     |                                          |                                              | 1    |              |     |              | 1   |              |     |            | 1   |              |     |              | 2      |   |     |   |    |   |     |   | 16  |  
|                                        |                                                     | Property operating costs                                                                                                                                       |                                          |                                              |     |              |     |              |    |              |     |            |    |              |     |              |       |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Property taxes, insurance and other                                                                                                                            |                                          |                                              | 58   |              |     |              | 167 |              |     |            | 107 |              |     |              | 134    |   |     |   | 99  |   |     |   | 107 |  
|                                        |                                                     | Depreciation and amortization                                                                                                                                  |                                          |                                              | 355  |              |     |              | 486 |              |     |            | 173 |              |     |              |       |   |     |   | 115 |   |     |   | 271 |  
|                                        |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                          |                                              |     |              |     |              |    |              |     |            |    |              |     |              |       |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                          |                                              |     |              |     |              |    |              |     |            |    |              |     |              |       |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Swap termination fees                                                                                                                                          |                                          |                                              |     |              |     |              |    |              |     |            |    |              |     |              |       |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Write down of deferred costs                                                                                                                                   |                                          |                                              |     |              |     |              |    |              |     |            |    |              |     |              |       |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                          |                                              |     |              |     |              |    |              |     |            |    |              |     |              |       |   |     |   |    |   |     |   |    |  
|                                        |                                                     | FelCor merger costs                                                                                                                                            |                                          |                                              |     |              |     |              |    |              |     |            |    |              |     |              |       |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Costs to terminate leases with Prime Hospitality Corporation                                                                                                   |                                          |                                              |     |              |     |              |    |              |     |            |    |              |     |              |       |   |     |   |    |   |     |   |    |  
|                                        |                                                     | Restructuring charge                                                                                                                                           |                                          |                                              |     |              |     |              |    |              |     |            |    |              |     |              |       |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |      |              |     |              |     |              |     |            |     |              |     |              |        |   |     |   |     |   |     |  
|                                        |                                                     | Total operating expenses                                                                                                                                       |                                          |                                              | 414  |              |     |              | 654 |              |     |            | 281 |              |     |              | 136    |   |     |   | 214 |   |     |   | 394 |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |      |              |     |              |     |              |     |            |     |              |     |              |        |   |     |   |     |   |     |  
|                                        |                                                     | Net operating income                                                                                                                                           |                                          |                                              | 48   |              |     |              | 66  |              |     |            | 28  |              |     |              | 493    |   |     |   | 262 |   |     |   | 127 |  
|                                        |                                                     | Interest expense, net                                                                                                                                          |                                          |                                              | 472  |              |     |              | (7  | )            |     |            | (6  | )            |     |              | (2     | ) |     |   | 196 |   |     |   | (5  | )
|                                        |                                                     | Equity in income from consolidated entities                                                                                                                    |                                          |                                              |     |              |     |              |    |              |     |            |    |              |     |              |       |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |      |              |     |              |     |              |     |            |     |              |     |              |        |   |     |   |     |   |     |  
|                                        |                                                     | Income (loss) from continuing operations before minority interests,
income tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                          |                                              | (424 | )            |     |              | 73  |              |     |            | 34  |              |     |              | 495    |   |     |   | 66  |   |     |   | 132 |  
|                                        |                                                     | Minority interests                                                                                                                                             |                                          |                                              |     |              |     |              |    |              |     |            |    |              |     |              |       |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |      |              |     |              |     |              |     |            |     |              |     |              |        |   |     |   |     |   |     |  
|                                        |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                          |                                              | (424 | )            |     |              | 73  |              |     |            | 34  |              |     |              | 495    |   |     |   | 66  |   |     |   | 132 |  
|                                        |                                                     | Income tax benefit                                                                                                                                             |                                          |                                              |     |              |     |              |    |              |     |            |    |              |     |              |       |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |      |              |     |              |     |              |     |            |     |              |     |              |        |   |     |   |     |   |     |  
|                                        |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                          |                                              | (424 | )            |     |              | 73  |              |     |            | 34  |              |     |              | 495    |   |     |   | 66  |   |     |   | 132 |  
|                                        |                                                     | Discontinued operations:                                                                                                                                       |                                          |                                              |      |              |     |              |     |              |     |            |     |              |     |              |        |   |     |   |     |   |     |   |     |  
|                                        |                                                     |                                                                                                                                                                |                                          | Income (loss) from operations of assets sold |      |              |    |              |     |              |    |            |     |              |    |              |        |   |    |   |     |   |    |   |     |   |  | 
|                                        |                                                     |                                                                                                                                                                |                                          | Income tax benefit                           |      |              |    |              |     |              |    |            |     |              |    |              |        |   |    |   |     |   |    |   |     |   |  | 
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |      |              |     |              |     |              |     |            |     |              |     |              |        |   |     |   |     |   |     |  
|                                        |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations |                                              |      |             |     |              |     |             |     |            |     |             |     |              |        |  |     |   |     |  |     |   |     |  |  
|                                        |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                          |                                              |     |              |     |              |    |              |     |            |    |              |     |              | (1,075 | ) |     |   |    |   |     |   |    |  
|                                        |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                          |                                              |     |              |     |              |    |              |     |            |    |              |     |              |       |   |     |   |    |   |     |   |    |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |      |              |     |              |     |              |     |            |     |              |     |              |        |   |     |   |     |   |     |  
|                                        |                                                     | Net income (loss)                                                                                                                                              |                                          |                                              | (424 | )            |     |              | 73  |              |     |            | 34  |              |     |              | (580   | ) |     |   | 66  |   |     |   | 132 |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |      |              |     |              |     |              |     |            |     |              |     |              |        |   |     |   |     |   |     |  





---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended September 30, 2001
(in thousands)



|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |     |              |     |              |    |              |       |   |     |   |    |   |      |   |     |   |     |   |   | 
|--------------------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------- | -------------------------------------------- | --- | ------------ | --- | ------------ | --- | ------------ | --- | ------------ | --- | ------------ | --- | ------------ | -- | ------------ | ----- | - | --- | - | -- | - | ---- | - | --- | - | --- | - | - | 
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     | MeriStar Sub |     | MeriStar Sub |     | MeriStar Sub |     | MeriStar Sub |     | MeriStar Sub |     | MeriStar Sub |    | MeriStar Sub
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     | 5K, LLC      |     | 5M, LLC      |     | 1E, L.P.     |     | 5O, LLC      |     | 6M Company   |     | 4B, L.P.     |    | 6C, LLC     
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |     |              |     |              |    |             
|Participating lease revenue             |                                                     |                                                                                                                                                                | 525                                      |                                              |     |              | 367 |              |     |              | 530 |              |     |              | 147 |              |    |              | 1,160 |   |     |   | 36 |   |      |   | 673 |  
|                                        | Hotel operations:                                   |                                                                                                                                                                |                                          |                                             |     |              |     |             |     |              |     |             |     |              |     |             |    |              |       |  |     |   |    |  |      |   |     |  |    
|                                        |                                                     | Rooms                                                                                                                                                          |                                          |                                              |    |              |     |              |    |              |     |              |    |              |     |              |   |              |       |   |    |   |    |   |     |   |     |   |    |  
|                                        |                                                     | Food and beverage                                                                                                                                              |                                          |                                              |    |              |     |              |    |              |     |              |    |              |     |              |   |              |       |   |    |   |    |   |     |   |     |   |    |  
|                                        |                                                     | Other operating departments                                                                                                                                    |                                          |                                              |    |              |     |              |    |              |     |              |    |              |     |              |   |              |       |   |    |   |    |   |     |   |     |   |    |  
|                                        | Office rental and other revenues                    |                                                                                                                                                                |                                          |                                             |     |              |     |             |     |              |     |             |     |              |     |             |    |              |       |  |     |   |    |  |      |   |     | 3 |    
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |     |              |     |              |    |              |       |   |     |   |    |   |      |   |     |  
|Total revenue                           |                                                     |                                                                                                                                                                | 525                                      |                                              |     |              | 367 |              |     |              | 530 |              |     |              | 147 |              |    |              | 1,160 |   |     |   | 36 |   |      |   | 676 |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |     |              |     |              |    |              |       |   |     |   |    |   |      |   |     |  
|Hotel operating expenses by department: |                                                     |                                                                                                                                                                |                                         |                                              |     |              |    |              |     |              |    |              |     |              |    |              |    |              |      |   |     |   |   |   |      |   |    |  
|                                        |                                                     | Rooms                                                                                                                                                          |                                          |                                              |    |              |     |              |    |              |     |              |    |              |     |              |   |              |       |   |    |   |    |   |     |   |     |   |    |  
|                                        |                                                     | Food and beverage                                                                                                                                              |                                          |                                              |    |              |     |              |    |              |     |              |    |              |     |              |   |              |       |   |    |   |    |   |     |   |     |   |    |  
|                                        |                                                     | Other operating departments                                                                                                                                    |                                          |                                              |    |              |     |              |    |              |     |              |    |              |     |              |   |              |       |   |    |   |    |   |     |   |     |   |    |  
|                                        | Office rental, parking and other operating expenses |                                                                                                                                                                |                                          |                                             |     |              |     |             |     |              |     |             |     |              |     |             |    |              |       |  |     |   |    |  |      |   |     |  |    
|Undistributed operating expenses:       |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |     |              |     |              |    |              |       |   |     |   |    |   |      |   |     |  
|                                        |                                                     | Administrative and general                                                                                                                                     |                                          |                                              | 1   |              |     |              | 1   |              |     |              | 1   |              |     |              | 1  |              |       |   | 1   |   |    |   | 1    |   |     |   | 1   |  
|                                        |                                                     | Property operating costs                                                                                                                                       |                                          |                                              |    |              |     |              |    |              |     |              |    |              |     |              |   |              |       |   |    |   |    |   |     |   |     |   |    |  
|                                        |                                                     | Property taxes, insurance and other                                                                                                                            |                                          |                                              | 84  |              |     |              | 80  |              |     |              | 36  |              |     |              | 33 |              |       |   | 94  |   |    |   | 95   |   |     |   | 41  |  
|                                        |                                                     | Depreciation and amortization                                                                                                                                  |                                          |                                              | 295 |              |     |              | 110 |              |     |              | 74  |              |     |              | 54 |              |       |   | 298 |   |    |   | 280  |   |     |   | 194 |  
|                                        |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                          |                                              |    |              |     |              |    |              |     |              |    |              |     |              |   |              |       |   |    |   |    |   |     |   |     |   |    |  
|                                        |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                          |                                              |    |              |     |              |    |              |     |              |    |              |     |              |   |              |       |   |    |   |    |   |     |   |     |   |    |  
|                                        |                                                     | Swap termination fees                                                                                                                                          |                                          |                                              |    |              |     |              |    |              |     |              |    |              |     |              |   |              |       |   |    |   |    |   |     |   |     |   |    |  
|                                        |                                                     | Write down of deferred costs                                                                                                                                   |                                          |                                              |    |              |     |              |    |              |     |              |    |              |     |              |   |              |       |   |    |   |    |   |     |   |     |   |    |  
|                                        |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                          |                                              |    |              |     |              |    |              |     |              |    |              |     |              |   |              |       |   |    |   |    |   |     |   |     |   |    |  
|                                        |                                                     | FelCor merger costs                                                                                                                                            |                                          |                                              |    |              |     |              |    |              |     |              |    |              |     |              |   |              |       |   |    |   |    |   |     |   |     |   |    |  
|                                        |                                                     | Costs to terminate leases with Prime Hospitality Corporation                                                                                                   |                                          |                                              |    |              |     |              |    |              |     |              |    |              |     |              |   |              |       |   |    |   |    |   |     |   |     |   |    |  
|                                        |                                                     | Restructuring charge                                                                                                                                           |                                          |                                              |    |              |     |              |    |              |     |              |    |              |     |              |   |              |       |   |    |   |    |   |     |   |     |   |    |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |     |              |     |              |    |              |       |   |     |   |    |   |      |   |     |  
|                                        |                                                     | Total operating expenses                                                                                                                                       |                                          |                                              | 380 |              |     |              | 191 |              |     |              | 111 |              |     |              | 88 |              |       |   | 393 |   |    |   | 376  |   |     |   | 236 |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |     |              |     |              |    |              |       |   |     |   |    |   |      |   |     |  
|                                        |                                                     | Net operating income                                                                                                                                           |                                          |                                              | 145 |              |     |              | 176 |              |     |              | 419 |              |     |              | 59 |              |       |   | 767 |   |    |   | (340 | ) |     |   | 440 |  
|                                        |                                                     | Interest expense, net                                                                                                                                          |                                          |                                              | (7  | )            |     |              | (6  | )            |     |              | (4  | )            |     |              | (1 | )            |       |   | (3  | ) |    |   | (19  | ) |     |   | (3  | )
|                                        |                                                     | Equity in income from consolidated entities                                                                                                                    |                                          |                                              |    |              |     |              |    |              |     |              |    |              |     |              |   |              |       |   |    |   |    |   |     |   |     |   |    |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |     |              |     |              |    |              |       |   |     |   |    |   |      |   |     |  
|                                        |                                                     | Income (loss) from continuing operations before minority interests,
income tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                          |                                              | 152 |              |     |              | 182 |              |     |              | 423 |              |     |              | 60 |              |       |   | 770 |   |    |   | (321 | ) |     |   | 443 |  
|                                        |                                                     | Minority interests                                                                                                                                             |                                          |                                              |    |              |     |              |    |              |     |              |    |              |     |              |   |              |       |   |    |   |    |   |     |   |     |   |    |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |     |              |     |              |    |              |       |   |     |   |    |   |      |   |     |  
|                                        |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                          |                                              | 152 |              |     |              | 182 |              |     |              | 423 |              |     |              | 60 |              |       |   | 770 |   |    |   | (321 | ) |     |   | 443 |  
|                                        |                                                     | Income tax benefit                                                                                                                                             |                                          |                                              |    |              |     |              |    |              |     |              |    |              |     |              |   |              |       |   |    |   |    |   |     |   |     |   |    |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |     |              |     |              |    |              |       |   |     |   |    |   |      |   |     |  
|                                        |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                          |                                              | 152 |              |     |              | 182 |              |     |              | 423 |              |     |              | 60 |              |       |   | 770 |   |    |   | (321 | ) |     |   | 443 |  
|                                        |                                                     | Discontinued operations:                                                                                                                                       |                                          |                                              |     |              |     |              |     |              |     |              |     |              |     |              |    |              |       |   |     |   |    |   |      |   |     |   |     |  
|                                        |                                                     |                                                                                                                                                                |                                          | Income (loss) from operations of assets sold |     |              |    |              |     |              |    |              |     |              |    |              |    |              |      |   |     |   |   |   |      |   |    |   |     |   |  | 
|                                        |                                                     |                                                                                                                                                                |                                          | Income tax benefit                           |     |              |    |              |     |              |    |              |     |              |    |              |    |              |      |   |     |   |   |   |      |   |    |   |     |   |  | 
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |     |              |     |              |    |              |       |   |     |   |    |   |      |   |     |  
|                                        |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations |                                              |     |             |     |              |     |             |     |              |     |             |     |              |    |             |       |   |     |  |    |   |      |  |     |   |     |  |  
|                                        |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                          |                                              |    |              |     |              |    |              |     |              |    |              |     |              |   |              |       |   |    |   |    |   |     |   |     |   |    |  
|                                        |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                          |                                              |    |              |     |              |    |              |     |              |    |              |     |              |   |              |       |   |    |   |    |   |     |   |     |   |    |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |     |              |     |              |    |              |       |   |     |   |    |   |      |   |     |  
|                                        |                                                     | Net income (loss)                                                                                                                                              |                                          |                                              | 152 |              |     |              | 182 |              |     |              | 423 |              |     |              | 60 |              |       |   | 770 |   |    |   | (321 | ) |     |   | 443 |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |     |              |     |              |     |              |     |              |     |              |    |              |       |   |     |   |    |   |      |   |     |  



---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended September 30, 2001
(in thousands)

|                                        |                                                     |                                                                                                                                                                |                                          |                                              |      |              |     |              |     |              |     |              |      |              |       |              |       |   |     |   |     |   |       |   |       |   |   | 
|--------------------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------- | -------------------------------------------- | ---- | ------------ | --- | ------------ | --- | ------------ | --- | ------------ | ---- | ------------ | ----- | ------------ | ----- | - | --- | - | --- | - | ----- | - | ----- | - | - | 
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |      | MeriStar Sub |     | MeriStar Sub |     | MeriStar Sub |     | MeriStar Sub |      | MeriStar Sub |       | MeriStar Sub
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |      | 2C, LLC      |     | 4G, L.P.     |     | 3B, LLC      |     | 5G, L.P.     |      | 5P, LLC      |       | 5J, LLC     
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |      |              |     |              |     |              |     |              |      |              |       |             
|Participating lease revenue             |                                                     |                                                                                                                                                                | 525                                      |                                              |      |              | 782 |              |     |              | 162 |              |      |              | 2,389 |              |       |   | 117 |   |     |   | 1,931 |  
|                                        | Hotel operations:                                   |                                                                                                                                                                |                                          |                                             |      |              |     |             |     |              |     |             |      |              |       |             |       |   |     |  |     |   |       |  |      
|                                        |                                                     | Rooms                                                                                                                                                          |                                          |                                              |     |              |     |              |    |              |     |              |     |              |       |              |      |   |     |   |    |   |       |   |      |  
|                                        |                                                     | Food and beverage                                                                                                                                              |                                          |                                              |     |              |     |              |    |              |     |              |     |              |       |              |      |   |     |   |    |   |       |   |      |  
|                                        |                                                     | Other operating departments                                                                                                                                    |                                          |                                              |     |              |     |              |    |              |     |              |     |              |       |              |      |   |     |   |    |   |       |   |      |  
|                                        | Office rental and other revenues                    |                                                                                                                                                                |                                          | 27                                           |      |              |     |             |     |              |     | 2            |      |              |       | 13           |       |   |     |  |     |   |       |  |      
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |      |              |     |              |     |              |     |              |      |              |       |              |       |   |     |   |     |   |       |  
|Total revenue                           |                                                     |                                                                                                                                                                | 552                                      |                                              |      |              | 782 |              |     |              | 164 |              |      |              | 2,402 |              |       |   | 117 |   |     |   | 1,931 |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |      |              |     |              |     |              |     |              |      |              |       |              |       |   |     |   |     |   |       |  
|Hotel operating expenses by department: |                                                     |                                                                                                                                                                |                                         |                                              |      |              |    |              |     |              |    |              |      |              |      |              |       |   |    |   |     |   |      |  
|                                        |                                                     | Rooms                                                                                                                                                          |                                          |                                              |     |              |     |              |    |              |     |              |     |              |       |              |      |   |     |   |    |   |       |   |      |  
|                                        |                                                     | Food and beverage                                                                                                                                              |                                          |                                              |     |              |     |              |    |              |     |              |     |              |       |              |      |   |     |   |    |   |       |   |      |  
|                                        |                                                     | Other operating departments                                                                                                                                    |                                          |                                              |     |              |     |              |    |              |     |              |     |              |       |              |      |   |     |   |    |   |       |   |      |  
|                                        | Office rental, parking and other operating expenses |                                                                                                                                                                |                                          |                                             |      |              |     |             |     |              |     |             |      |              |       |             |       |   |     |  |     |   |       |  |      
|Undistributed operating expenses:       |                                                     |                                                                                                                                                                |                                          |                                              |      |              |     |              |     |              |     |              |      |              |       |              |       |   |     |   |     |   |       |  
|                                        |                                                     | Administrative and general                                                                                                                                     |                                          |                                              |     |              |     |              | 12  |              |     |              | 1    |              |       |              | 2     |   |     |   |    |   |       |   | 1     |  
|                                        |                                                     | Property operating costs                                                                                                                                       |                                          |                                              |     |              |     |              |    |              |     |              |     |              |       |              |      |   |     |   |    |   |       |   |      |  
|                                        |                                                     | Property taxes, insurance and other                                                                                                                            |                                          |                                              | 138  |              |     |              | 139 |              |     |              | 84   |              |       |              | 485   |   |     |   | 6   |   |       |   | 443   |  
|                                        |                                                     | Depreciation and amortization                                                                                                                                  |                                          |                                              | 258  |              |     |              | 226 |              |     |              | 223  |              |       |              | 1,541 |   |     |   |    |   |       |   | 841   |  
|                                        |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                          |                                              |     |              |     |              |    |              |     |              |     |              |       |              |      |   |     |   |    |   |       |   |      |  
|                                        |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                          |                                              |     |              |     |              |    |              |     |              |     |              |       |              |      |   |     |   |    |   |       |   |      |  
|                                        |                                                     | Swap termination fees                                                                                                                                          |                                          |                                              |     |              |     |              |    |              |     |              |     |              |       |              |      |   |     |   |    |   |       |   |      |  
|                                        |                                                     | Write down of deferred costs                                                                                                                                   |                                          |                                              |     |              |     |              |    |              |     |              |     |              |       |              |      |   |     |   |    |   |       |   |      |  
|                                        |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                          |                                              |     |              |     |              |    |              |     |              |     |              |       |              |      |   |     |   |    |   |       |   |      |  
|                                        |                                                     | FelCor merger costs                                                                                                                                            |                                          |                                              |     |              |     |              |    |              |     |              |     |              |       |              |      |   |     |   |    |   |       |   |      |  
|                                        |                                                     | Costs to terminate leases with Prime Hospitality Corporation                                                                                                   |                                          |                                              |     |              |     |              |    |              |     |              |     |              |       |              |      |   |     |   |    |   |       |   |      |  
|                                        |                                                     | Restructuring charge                                                                                                                                           |                                          |                                              |     |              |     |              |    |              |     |              |     |              |       |              |      |   |     |   |    |   |       |   |      |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |      |              |     |              |     |              |     |              |      |              |       |              |       |   |     |   |     |   |       |  
|                                        |                                                     | Total operating expenses                                                                                                                                       |                                          |                                              | 396  |              |     |              | 377 |              |     |              | 308  |              |       |              | 2,028 |   |     |   | 6   |   |       |   | 1,285 |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |      |              |     |              |     |              |     |              |      |              |       |              |       |   |     |   |     |   |       |  
|                                        |                                                     | Net operating income                                                                                                                                           |                                          |                                              | 156  |              |     |              | 405 |              |     |              | (144 | )            |       |              | 374   |   |     |   | 111 |   |       |   | 646   |  
|                                        |                                                     | Interest expense, net                                                                                                                                          |                                          |                                              | 320  |              |     |              | (4  | )            |     |              | (2   | )            |       |              | (8    | ) |     |   |    |   |       |   | (25   | )
|                                        |                                                     | Equity in income from consolidated entities                                                                                                                    |                                          |                                              |     |              |     |              |    |              |     |              |     |              |       |              |      |   |     |   |    |   |       |   |      |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |      |              |     |              |     |              |     |              |      |              |       |              |       |   |     |   |     |   |       |  
|                                        |                                                     | Income (loss) from continuing operations before minority interests,
income tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                          |                                              | (164 | )            |     |              | 409 |              |     |              | (142 | )            |       |              | 382   |   |     |   | 111 |   |       |   | 671   |  
|                                        |                                                     | Minority interests                                                                                                                                             |                                          |                                              |     |              |     |              |    |              |     |              |     |              |       |              |      |   |     |   |    |   |       |   |      |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |      |              |     |              |     |              |     |              |      |              |       |              |       |   |     |   |     |   |       |  
|                                        |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                          |                                              | (164 | )            |     |              | 409 |              |     |              | (142 | )            |       |              | 382   |   |     |   | 111 |   |       |   | 671   |  
|                                        |                                                     | Income tax benefit                                                                                                                                             |                                          |                                              |     |              |     |              |    |              |     |              |     |              |       |              |      |   |     |   |    |   |       |   |      |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |      |              |     |              |     |              |     |              |      |              |       |              |       |   |     |   |     |   |       |  
|                                        |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                          |                                              | (164 | )            |     |              | 409 |              |     |              | (142 | )            |       |              | 382   |   |     |   | 111 |   |       |   | 671   |  
|                                        |                                                     | Discontinued operations:                                                                                                                                       |                                          |                                              |      |              |     |              |     |              |     |              |      |              |       |              |       |   |     |   |     |   |       |   |       |  
|                                        |                                                     |                                                                                                                                                                |                                          | Income (loss) from operations of assets sold |      |              |    |              |     |              |    |              |      |              |      |              |       |   |    |   |     |   |      |   |       |   |  | 
|                                        |                                                     |                                                                                                                                                                |                                          | Income tax benefit                           |      |              |    |              |     |              |    |              |      |              |      |              |       |   |    |   |     |   |      |   |       |   |  | 
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |      |              |     |              |     |              |     |              |      |              |       |              |       |   |     |   |     |   |       |  
|                                        |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations |                                              |      |             |     |              |     |             |     |              |      |             |       |              |       |  |     |   |     |  |       |   |       |  |  
|                                        |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                          |                                              |     |              |     |              |    |              |     |              |     |              |       |              |      |   |     |   |    |   |       |   |      |  
|                                        |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                          |                                              |     |              |     |              |    |              |     |              |     |              |       |              |      |   |     |   |    |   |       |   |      |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |      |              |     |              |     |              |     |              |      |              |       |              |       |   |     |   |     |   |       |  
|                                        |                                                     | Net income (loss)                                                                                                                                              |                                          |                                              | (164 | )            |     |              | 409 |              |     |              | (142 | )            |       |              | 382   |   |     |   | 111 |   |       |   | 671   |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |      |              |     |              |     |              |     |              |      |              |       |              |       |   |     |   |     |   |       |  

2



---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended September 30, 2001
(in thousands)



|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |       |              |     |              |     |              |     |   |     |     |     |   |   | 
|--------------------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------- | -------------------------------------------- | --- | ------------ | ----- | ------------ | --- | ------------ | --- | ------------ | --- | - | --- | --- | --- | - | - | 
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     | MeriStar Sub |       | MeriStar Sub |     | MeriStar Sub |     | MeriStar Sub
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     | 5Q, LLC      |       | 5A, LLC      |     | 8D, LLC      |     | 4J, LLC     
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |       |              |     |              |     |             
|Participating lease revenue             |                                                     |                                                                                                                                                                | 464                                      |                                              |     |              | 1,226 |              |     |              | 790 |              |     |   | 633 |    
|                                        | Hotel operations:                                   |                                                                                                                                                                |                                          |                                              |     |              |       |             |     |              |     |             |     |   |     |    |    
|                                        |                                                     | Rooms                                                                                                                                                          |                                          |                                              |    |              |       |              |    |              |     |              |    |   |     |     |    |  
|                                        |                                                     | Food and beverage                                                                                                                                              |                                          |                                              |    |              |       |              |    |              |     |              |    |   |     |     |    |  
|                                        |                                                     | Other operating departments                                                                                                                                    |                                          |                                              |    |              |       |              |    |              |     |              |    |   |     |     |    |  
|                                        | Office rental and other revenues                    |                                                                                                                                                                |                                          |                                             |     |              |       | 19           |     |              |     |             |     |   |     | 81  |    
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |       |              |     |              |     |              |     |   |     |    
|Total revenue                           |                                                     |                                                                                                                                                                | 464                                      |                                              |     |              | 1,245 |              |     |              | 790 |              |     |   | 714 |    
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |       |              |     |              |     |              |     |   |     |    
|Hotel operating expenses by department: |                                                     |                                                                                                                                                                |                                          |                                              |     |              |      |              |     |              |    |              |     |   |    |    
|                                        |                                                     | Rooms                                                                                                                                                          |                                          |                                              |    |              |       |              |    |              |     |              |    |   |     |     |    |  
|                                        |                                                     | Food and beverage                                                                                                                                              |                                          |                                              |    |              |       |              |    |              |     |              |    |   |     |     |    |  
|                                        |                                                     | Other operating departments                                                                                                                                    |                                          |                                              |    |              |       |              |    |              |     |              |    |   |     |     |    |  
|                                        | Office rental, parking and other operating expenses |                                                                                                                                                                |                                          |                                             |     |              |       |             |     |              |     |             |     |   |     | 164 |    
|Undistributed operating expenses:       |                                                     |                                                                                                                                                                |                                          |                                              |     |              |       |              |     |              |     |              |     |   |     |    
|                                        |                                                     | Administrative and general                                                                                                                                     |                                          |                                              |    |              |       |              | 1   |              |     |              | 1   |   |     |     | 4   |  
|                                        |                                                     | Property operating costs                                                                                                                                       |                                          |                                              |    |              |       |              |    |              |     |              |    |   |     |     |    |  
|                                        |                                                     | Property taxes, insurance and other                                                                                                                            |                                          |                                              | 71  |              |       |              | 151 |              |     |              | 89  |   |     |     | 114 |  
|                                        |                                                     | Depreciation and amortization                                                                                                                                  |                                          |                                              | 102 |              |       |              | 414 |              |     |              | 312 |   |     |     | 325 |  
|                                        |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                          |                                              |    |              |       |              |    |              |     |              |    |   |     |     |    |  
|                                        |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                          |                                              |     |              |       |              |    |              |     |              |    |   |     |     |    |  
|                                        |                                                     | Swap termination fees                                                                                                                                          |                                          |                                              |    |              |       |              |    |              |     |              |    |   |     |     |    |  
|                                        |                                                     | Write down of deferred costs                                                                                                                                   |                                          |                                              |    |              |       |              |    |              |     |              |    |   |     |     |    |  
|                                        |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                          |                                              |    |              |       |              |    |              |     |              |    |   |     |     |    |  
|                                        |                                                     | FelCor merger costs                                                                                                                                            |                                          |                                              |    |              |       |              |    |              |     |              |    |   |     |     |    |  
|                                        |                                                     | Costs to terminate leases with Prime Hospitality Corporation                                                                                                   |                                          |                                              |    |              |       |              |    |              |     |              |    |   |     |     |    |  
|                                        |                                                     | Restructuring charge                                                                                                                                           |                                          |                                              |    |              |       |              |    |              |     |              |    |   |     |     |    |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |       |              |     |              |     |              |     |   |     |    
|                                        |                                                     | Total operating expenses                                                                                                                                       |                                          |                                              | 173 |              |       |              | 566 |              |     |              | 402 |   |     |     | 607 |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |       |              |     |              |     |              |     |   |     |    
|                                        |                                                     | Net operating income                                                                                                                                           |                                          |                                              | 291 |              |       |              | 679 |              |     |              | 388 |   |     |     | 107 |  
|                                        |                                                     | Interest expense, net                                                                                                                                          |                                          |                                              | (21 | )            |       |              | 698 |              |     |              | (4  | ) |     |     | (7  | )
|                                        |                                                     | Equity in income from consolidated entities                                                                                                                    |                                          |                                              |    |              |       |              |    |              |     |              |    |   |     |     |    |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |       |              |     |              |     |              |     |   |     |    
|                                        |                                                     | Income (loss) from continuing operations before minority interests,
income tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                          |                                              | 312 |              |       |              | (19 | )            |     |              | 392 |   |     |     | 114 |  
|                                        |                                                     | Minority interests                                                                                                                                             |                                          |                                              |    |              |       |              |    |              |     |              |    |   |     |     |    |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |       |              |     |              |     |              |     |   |     |    
|                                        |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                          |                                              | 312 |              |       |              | (19 | )            |     |              | 392 |   |     |     | 114 |  
|                                        |                                                     | Income tax benefit                                                                                                                                             |                                          |                                              |    |              |       |              |    |              |     |              |    |   |     |     |    |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |       |              |     |              |     |              |     |   |     |    
|                                        |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                          |                                              | 312 |              |       |              | (19 | )            |     |              | 392 |   |     |     | 114 |  
|                                        |                                                     | Discontinued operations:                                                                                                                                       |                                          |                                              |     |              |       |              |     |              |     |              |     |   |     |     |     |  
|                                        |                                                     |                                                                                                                                                                |                                          | Income (loss) from operations of assets sold |     |              |      |              |     |              |    |              |     |   |    |     |     |   |  | 
|                                        |                                                     |                                                                                                                                                                |                                          | Income tax benefit                           |     |              |      |              |     |              |    |              |     |   |    |     |     |   |  | 
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |       |              |     |              |     |              |     |   |     |    
|                                        |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations |                                              |     |             |       |              |     |             |     |              |     |  |     |     |     |  |  
|                                        |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                          |                                              |    |              |       |              |    |              |     |              |    |   |     |     |    |  
|                                        |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                          |                                              |     |              |       |              |    |              |     |              |    |   |     |     |    |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |       |              |     |              |     |              |     |   |     |    
|                                        |                                                     | Net income (loss)                                                                                                                                              |                                          |                                              | 312 |              |       |              | (19 | )            |     |              | 392 |   |     |     | 114 |  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |     |              |       |              |     |              |     |              |     |   |     |    



---



##### 



MeriStar Hospitality Operating Partnership, L.P.
Condensed Consolidating Statement of Operations
Three Months Ended September 30, 2001
(in thousands)

|                                        |                                                     |                                                                                                                                                                |                                          |                                              |         |                |         |              |         |              |         |       |         |     |     | 
|--------------------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------- | -------------------------------------------- | ------- | -------------- | ------- | ------------ | ------- | ------------ | ------- | ----- | ------- | --- | --- | 
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |         | MeriStar Hotel |         |              |         |              |         | Total
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |         | Lessee, Inc.   |         | Eliminations |         | Consolidated
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |         |                |         |              |         |             
|Participating lease revenue             |                                                     |                                                                                                                                                                |                                         |                                              |         |                | (69,504 | )            |         |              | 1,841   |      
|                                        | Hotel operations:                                   |                                                                                                                                                                |                                          |                                             |         |                |         |             |         |              |         |      |        
|                                        |                                                     | Rooms                                                                                                                                                          |                                          |                                              | 163,568 |                |         |              |        |              |         |       | 163,568 |    
|                                        |                                                     | Food and beverage                                                                                                                                              |                                          |                                              | 55,886  |                |         |              |        |              |         |       | 55,886  |    
|                                        |                                                     | Other operating departments                                                                                                                                    |                                          |                                              | 19,959  |                |         |              |        |              |         |       | 18,721  |    
|                                        | Office rental and other revenues                    |                                                                                                                                                                |                                          |                                             |         |                |         |             |         |              |         | 4,016 |        
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |         |                |         |              |         |              |         |      
|Total revenue                           |                                                     |                                                                                                                                                                | 239,413                                  |                                              |         |                | (69,504 | )            |         |              | 244,032 |      
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |         |                |         |              |         |              |         |      
|Hotel operating expenses by department: |                                                     |                                                                                                                                                                |                                         |                                              |         |                |        |              |         |              |        |      
|                                        |                                                     | Rooms                                                                                                                                                          |                                          |                                              | 42,715  |                |         |              |        |              |         |       | 42,715  |    
|                                        |                                                     | Food and beverage                                                                                                                                              |                                          |                                              | 44,122  |                |         |              |        |              |         |       | 44,122  |    
|                                        |                                                     | Other operating departments                                                                                                                                    |                                          |                                              | 10,353  |                |         |              |        |              |         |       | 10,353  |    
|                                        | Office rental, parking and other operating expenses |                                                                                                                                                                |                                          |                                             |         |                |         |             |         |              |         | 819   |        
|Undistributed operating expenses:       |                                                     |                                                                                                                                                                |                                          |                                              |         |                |         |              |         |              |         |      
|                                        |                                                     | Administrative and general                                                                                                                                     |                                          |                                              | 38,094  |                |         |              |        |              |         |       | 39,610  |    
|                                        |                                                     | Property operating costs                                                                                                                                       |                                          |                                              | 40,716  |                |         |              |        |              |         |       | 40,716  |    
|                                        |                                                     | Property taxes, insurance and other                                                                                                                            |                                          |                                              | 75,877  |                |         |              | (69,504 | )            |         |       | 20,811  |    
|                                        |                                                     | Depreciation and amortization                                                                                                                                  |                                          |                                              | 38      |                |         |              |        |              |         |       | 28,500  |    
|                                        |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                          |                                              |        |                |         |              |        |              |         |       |        |    
|                                        |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                          |                                              |        |                |         |              |        |              |         |       |        |    
|                                        |                                                     | Swap termination fees                                                                                                                                          |                                          |                                              |        |                |         |              |        |              |         |       |        |    
|                                        |                                                     | Write down of deferred costs                                                                                                                                   |                                          |                                              |        |                |         |              |        |              |         |       |        |    
|                                        |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                          |                                              |        |                |         |              |        |              |         |       |        |    
|                                        |                                                     | FelCor merger costs                                                                                                                                            |                                          |                                              |        |                |         |              |        |              |         |       | 2,028   |    
|                                        |                                                     | Costs to terminate leases with Prime Hospitality Corporation                                                                                                   |                                          |                                              |        |                |         |              |        |              |         |       |        |    
|                                        |                                                     | Restructuring charge                                                                                                                                           |                                          |                                              |        |                |         |              |        |              |         |       | 1,080   |    
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |         |                |         |              |         |              |         |      
|                                        |                                                     | Total operating expenses                                                                                                                                       |                                          |                                              | 251,915 |                |         |              | (69,504 | )            |         |       | 230,754 |    
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |         |                |         |              |         |              |         |      
|                                        |                                                     | Net operating income                                                                                                                                           |                                          |                                              | (12,502 | )              |         |              |        |              |         |       | 13,278  |    
|                                        |                                                     | Interest expense, net                                                                                                                                          |                                          |                                              | 53      |                |         |              |        |              |         |       | 31,354  |    
|                                        |                                                     | Equity in income from consolidated entities                                                                                                                    |                                          |                                              |        |                |         |              | (6,994  | )            |         |       |        |    
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |         |                |         |              |         |              |         |      
|                                        |                                                     | Income (loss) from continuing operations before minority interests,
income tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                          |                                              | (12,555 | )              |         |              | (6,994  | )            |         |       | (18,076 | )  
|                                        |                                                     | Minority interests                                                                                                                                             |                                          |                                              |        |                |         |              |        |              |         |       | (22     | )  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |         |                |         |              |         |              |         |      
|                                        |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                          |                                              | (12,555 | )              |         |              | (6,994  | )            |         |       | (18,054 | )  
|                                        |                                                     | Income tax benefit                                                                                                                                             |                                          |                                              |        |                |         |              |        |              |         |       | (521    | )  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |         |                |         |              |         |              |         |      
|                                        |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                          |                                              | (12,555 | )              |         |              | (6,994  | )            |         |       | (17,533 | )  
|                                        |                                                     | Discontinued operations:                                                                                                                                       |                                          |                                              |         |                |         |              |         |              |         |       |         |    
|                                        |                                                     |                                                                                                                                                                |                                          | Income (loss) from operations of assets sold |         |                | (86     | )            |         |              |        |       |         |     | 558 | 
|                                        |                                                     |                                                                                                                                                                |                                          | Income tax benefit                           |         |                |        |              |         |              |        |       |         |     |    | 
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |         |                |         |              |         |              |         |      
|                                        |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations |                                              |         | (86            | )       |              |         |             |         |       |         | 558 |    
|                                        |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                          |                                              |        |                |         |              |        |              |         |       | (1,075  | )  
|                                        |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                          |                                              |        |                |         |              |        |              |         |       |        |    
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |         |                |         |              |         |              |         |      
|                                        |                                                     | Net income (loss)                                                                                                                                              |                                          |                                              | (12,641 | )              |         |              | (6,994  | )            |         |       | (18,050 | )  
|                                        |                                                     |                                                                                                                                                                |                                          |                                              |         |                |         |              |         |              |         |      





---



##### 



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



|                                        |                             |                                                     |                                                                                                                                                                |                                              |       |             |         |              |       |          |       |         |   |          |   |          |   |   |     |     |   |     |   |   |   |     |     | 
|--------------------------------------- | --------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------- | ----- | ----------- | ------- | ------------ | ----- | -------- | ----- | ------- | - | -------- | - | -------- | - | - | --- | --- | - | --- | - | - | - | --- | --- | 
|                                        |                             |                                                     |                                                                                                                                                                |                                              |       | MeriStar    |         | Non-         |       | MeriStar |       | AGH     |   | MeriStar |   | MeriStar
|                                        |                             |                                                     |                                                                                                                                                                |                                              |       | Hospitality |         | Guarantor    |       | Sub 7C,  |       | Upreit, |   | Sub 5N,  |   | Sub 8A, 
|                                        |                             |                                                     |                                                                                                                                                                |                                              |       | OP, L.P.    |         | Subsidiaries |       | LLC      |       | LLC     |   | LLC      |   | LLC     
|                                        |                             |                                                     |                                                                                                                                                                |                                              |       |             |         |              |       |          |       |         |   |          |   |         
|Revenue:                                |                             |                                                     |                                                                                                                                                                |                                              |       |             |         |              |       |          |       |         |   |          |   |          |   |   |     |     |   |     |   |  
|                                        | Participating lease revenue |                                                     |                                                                                                                                                                |                                             |       |             |         | 127,131      |       |          |       |        |   |          |   |         |   |   |     | 919 |   |     |   |  |  
|                                        |                             | Hotel operations:                                   |                                                                                                                                                                |                                              |       |             |         |              |       |          |       |         |   |          |   |          |   |   |     |     |   |     |   |   |   |    
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                              |       |            |         |              |       |         |       |         |   |         |   |          |   |  |     |     |   |     |   |   |   |    |    
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                              |       |            |         |              |       |         |       |         |   |         |   |          |   |  |     |     |   |     |   |   |   |    |    
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                              |       |            |         |              |       | (1,618   | )     |         |   |         |   |          |   |  |     |     |   |     |   |   |   |    |    
|                                        |                             | Office rental and other revenues                    |                                                                                                                                                                |                                              | 4,800 |             |         |              | 5,659 |          |       |         |  |          |   |          |  |   |     |     |   |     |   |   |  |    
|                                        |                             |                                                     |                                                                                                                                                                |                                              |       |             |         |              |       |          |       |         |   |          |   |          |   |   |     |     |   |     |   |   |  
|Total revenue                           |                             |                                                     | 4,800                                                                                                                                                          |                                              |       |             | 131,172 |              |       |          |      |         |   |          |  |          |   |   | 919 |     |   |     |  |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |       |             |         |              |       |          |       |         |   |          |   |          |   |   |     |     |   |     |   |   |  
|Hotel operating expenses by department: |                             |                                                     |                                                                                                                                                                |                                              |       |             |         |              |       |          |       |         |   |          |   |          |   |   |     |     |   |     |   |  
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                              |       |            |         |              |       |         |       |         |   |         |   |          |   |  |     |     |   |    |   |   |   |    |    
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                              |       |            |         |              |       |         |       |         |   |         |   |          |   |  |     |     |   |    |   |   |   |    |    
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                              |       |            |         |              |       |         |       |         |   |         |   |          |   |  |     |     |   |    |   |   |   |    |    
|                                        |                             | Office rental, parking and other operating expenses |                                                                                                                                                                |                                              |      |             |         |              | 1,575 |          |       |         |  |          |   |          |  |   |     |     |  |     |   |   |  |    
|Undistributed operating expenses:       |                             |                                                     |                                                                                                                                                                |                                              |       |             |         |              |       |          |       |         |   |          |   |          |   |   |     |     |   |     |   |  
|                                        |                             |                                                     | Administrative and general                                                                                                                                     |                                              |       | 5,504       |         |              |       | (435     | )     |         |   |         |   |          |   |  |     |     |   |    |   |   |   |    |    
|                                        |                             |                                                     | Property operating costs                                                                                                                                       |                                              |       |            |         |              |       |         |       |         |   |         |   |          |   |  |     |     |   |     |   |   |   |    |    
|                                        |                             |                                                     | Property taxes, insurance and other                                                                                                                            |                                              |       | 441         |         |              |       | 15,753   |       |         |   |         |   |          |   |  |     |     |   | 50  |   |   |   |    |    
|                                        |                             |                                                     | Depreciation and amortization                                                                                                                                  |                                              |       | 4,412       |         |              |       | 38,745   |       |         |   |         |   |          |   |  |     |     |   | 96  |   |   |   |    |    
|                                        |                             |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                              |       |            |         |              |       |          |       |         |   |          |   |          |   |   |     |     |   |     |   |   |   |     |    
|                                        |                             |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                              |       | 2,112       |         |              |       |         |       |         |   |         |   |          |   |  |     |     |   |    |   |   |   |    |    
|                                        |                             |                                                     | Swap termination fees                                                                                                                                          |                                              |       | 9,297       |         |              |       |         |       |         |   |         |   |          |   |  |     |     |   |    |   |   |   |    |    
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                              |       |            |         |              |       |         |       |         |   |         |   |          |   |  |     |     |   |    |   |   |   |    |    
|                                        |                             |                                                     | FelCor merger costs                                                                                                                                            |                                              |       | 5,817       |         |              |       |         |       |         |   |         |   |          |   |  |     |     |   |    |   |   |   |    |    
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality Corporation                                                                                                   |                                              |       | 1,315       |         |              |       |         |       |         |   |         |   |          |   |  |     |     |   |    |   |   |   |    |    
|                                        |                             |                                                     | Restructuring charge                                                                                                                                           |                                              |       | 1,080       |         |              |       |         |       |         |   |         |   |          |   |  |     |     |   |    |   |   |   |    |    
|                                        |                             |                                                     |                                                                                                                                                                |                                              |       |             |         |              |       |          |       |         |   |          |   |          |   |   |     |     |   |     |   |   |  
|                                        |                             |                                                     | Total operating expenses                                                                                                                                       |                                              |       | 29,978      |         |              |       | 55,638   |       |         |   |         |   |          |   |  |     |     |   | 146 |   |   |   |    |    
|                                        |                             |                                                     |                                                                                                                                                                |                                              |       |             |         |              |       |          |       |         |   |          |   |          |   |   |     |     |   |     |   |   |  
|                                        |                             |                                                     | Net operating income                                                                                                                                           |                                              |       | (25,178     | )       |              |       | 75,534   |       |         |   |         |   |          |   |  |     |     |   | 773 |   |   |   |    |    
|                                        |                             |                                                     | Interest expense, net                                                                                                                                          |                                              |       | 66,612      |         |              |       | 20,711   |       |         |   |         |   |          |   |  |     |     |   | (5  | ) |   |   |    |    
|                                        |                             |                                                     | Equity in income from consolidated entities                                                                                                                    |                                              |       | (116,073    | )       |              |       |         |       |         |   |         |   |          |   |  |     |     |   |    |   |   |   |    |    
|                                        |                             |                                                     |                                                                                                                                                                |                                              |       |             |         |              |       |          |       |         |   |          |   |          |   |   |     |     |   |     |   |   |  
|                                        |                             |                                                     | Income (loss) from continuing operations before minority interests, income
tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                              |       | 24,283      |         |              |       | 54,823   |       |         |   |         |   |          |   |  |     |     |   | 778 |   |   |   |    |    
|                                        |                             |                                                     | Minority interests                                                                                                                                             |                                              |       | (16         | )       |              |       |         |       |         |   |         |   |          |   |  |     |     |   |    |   |   |   |    |    
|                                        |                             |                                                     |                                                                                                                                                                |                                              |       |             |         |              |       |          |       |         |   |          |   |          |   |   |     |     |   |     |   |   |  
|                                        |                             |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                              |       | 24,299      |         |              |       | 54,823   |       |         |   |         |   |          |   |  |     |     |   | 778 |   |   |   |    |    
|                                        |                             |                                                     | Income tax benefit                                                                                                                                             |                                              |       | 721         |         |              |       |         |       |         |   |         |   |          |   |  |     |     |   |    |   |   |   |    |    
|                                        |                             |                                                     |                                                                                                                                                                |                                              |       |             |         |              |       |          |       |         |   |          |   |          |   |   |     |     |   |     |   |   |  
|                                        |                             |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                              |       | 23,578      |         |              |       | 54,823   |       |         |   |         |   |          |   |  |     |     |   | 778 |   |   |   |    |    
|                                        |                             |                                                     | Discontinued operations:                                                                                                                                       |                                              |       |             |         |              |       |          |       |         |   |          |   |          |   |   |     |     |   |     |   |   |   |     |    
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) from operations of assets sold |       |             |        |              |       |          | 1,350 |         |   |          |  |          |   |   |    |     |   |     |  |   |   |     | 923 | 
|                                        |                             |                                                     |                                                                                                                                                                | Income tax benefit                           |       |             |        |              |       |          |      |         |   |          |  |          |   |   |    |     |   |     |  |   |   |     |    | 
|                                        |                             |                                                     |                                                                                                                                                                |                                              |       |             |         |              |       |          |       |         |   |          |   |          |   |   |     |     |   |     |   |   |  
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations     |       |             |        |              |       |          | 1,350 |         |   |          |  |          |   |   |    |     |   |     |  |   |   |     | 923 | 
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                              |       |            |         |              |       |         |       |         |   |         |   |          |   |  |     |     |   |    |   |   |   |    |    
|                                        |                             |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                              |       | (1,226      | )       |              |       |         |       |         |   |         |   |          |   |  |     |     |   |    |   |   |   |    |    
|                                        |                             |                                                     |                                                                                                                                                                |                                              |       |             |         |              |       |          |       |         |   |          |   |          |   |   |     |     |   |     |   |   |  
|                                        |                             |                                                     | Net income (loss)                                                                                                                                              |                                              |       | 22,352      |         |              |       | 56,173   |       |         |   |         |   |          |   |  |     |     |   | 778 |   |   |   | 923 |    
|                                        |                             |                                                     |                                                                                                                                                                |                                              |       |             |         |              |       |          |       |         |   |          |   |          |   |   |     |     |   |     |   |   |  



---



##### 



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

|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |              |   |          |   |              |       |         |   |         |       |         |   |          |       |          |   |          |       |          |    |          |     |     |   |     |       |       |   |     |   | 
|--------------------------------------- | --------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------- | - | ------------ | - | -------- | - | ------------ | ----- | ------- | - | ------- | ----- | ------- | - | -------- | ----- | -------- | - | -------- | ----- | -------- | -- | -------- | --- | --- | - | --- | ----- | ----- | - | --- | - | 
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |              |   |          |   |              |       |         |   |         |       |         |   | MeriStar |       | MeriStar |   | MeriStar |       | MeriStar |    | MeriStar
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   | MeriStar     |   | MeriStar |   | MeriStar     |       | Sub 8B, |   | Sub 1C, |       | Sub 8E, |   | Sub 7F,  |       | Sub 5L, 
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   | Sub 8F, L.P. |   | 8G, LLC  |   | Sub 6H, L.P. |       | LLC     |   | L.P.    |       | LLC     |   | LLC      |       | LLC     
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |              |   |          |   |              |       |         |   |         |       |         |   |          |       |         
|Revenue:                                |                             |                                                     |                                                                                                                                                                |                                              |   |              |   |          |   |              |       |         |   |         |       |         |   |          |       |          |   |          |       |          |    |          |     |     |   |     |       |      
|                                        | Participating lease revenue |                                                     |                                                                                                                                                                | 2,311                                        |   |              |   |         |   |              |       | 1,057   |   |         |       | 6,817   |   |          |       | 1,195    |   |          |       | 1,544    |    |          |     | 845 |   |     |       | 1,052 |  
|                                        |                             | Hotel operations:                                   |                                                                                                                                                                |                                              |   |              |   |          |   |              |       |         |   |         |       |         |   |          |       |          |   |          |       |          |    |          |     |     |   |     |       |       |   |    
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                              |   |             |   |          |   |             |       |         |   |        |       |         |   |         |       |          |   |         |       |          |    |         |     |     |   |    |       |       |   |    |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                              |   |             |   |          |   |             |       |         |   |        |       |         |   |         |       |          |   |         |       |          |    |         |     |     |   |    |       |       |   |    |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                              |   |             |   |          |   |             |       |         |   |        |       |         |   |         |       |          |   |         |       |          |    |         |     |     |   |    |       |       |   |    |  
|                                        |                             | Office rental and other revenues                    |                                                                                                                                                                |                                              |  |              |   |          |  |              |       |         |  |         |       |         |  |          |       |          |  |          |       |          | 13 |          |     |     |  |     |       |       |  |    
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |              |   |          |   |              |       |         |   |         |       |         |   |          |       |          |   |          |       |          |    |          |     |     |   |     |       |       |  
|Total revenue                           |                             |                                                     | 2,311                                                                                                                                                          |                                              |   |              |  |          |   |              | 1,057 |         |   |         | 6,817 |         |   |          | 1,195 |          |   |          | 1,557 |          |    |          | 845 |     |   |     | 1,052 |      
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |              |   |          |   |              |       |         |   |         |       |         |   |          |       |          |   |          |       |          |    |          |     |     |   |     |       |       |  
|Hotel operating expenses by department: |                             |                                                     |                                                                                                                                                                |                                              |   |              |   |          |   |              |       |         |   |         |       |         |   |          |       |          |   |          |       |          |    |          |     |     |   |     |       |      
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                              |   |             |   |          |   |             |       |         |   |        |       |         |   |         |       |          |   |         |       |          |    |         |     |     |   |    |       |       |   |    |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                              |   |             |   |          |   |             |       |         |   |        |       |         |   |         |       |          |   |         |       |          |    |         |     |     |   |    |       |       |   |    |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                              |   |             |   |          |   |             |       |         |   |        |       |         |   |         |       |          |   |         |       |          |    |         |     |     |   |    |       |       |   |    |  
|                                        |                             | Office rental, parking and other operating expenses |                                                                                                                                                                |                                              |  |              |   |          |  |              |       |         |  |         |       |         |  |          |       |          |  |          |       |          |   |          |     |     |  |     |       |       |  |    
|Undistributed operating expenses:       |                             |                                                     |                                                                                                                                                                |                                              |   |              |   |          |   |              |       |         |   |         |       |         |   |          |       |          |   |          |       |          |    |          |     |     |   |     |       |      
|                                        |                             |                                                     | Administrative and general                                                                                                                                     |                                              |   | (7           | ) |          |   |             |       |         |   | (2      | )     |         |   | 1        |       |          |   | 1        |       |          |    | 1        |     |     |   | 1   |       |       |   | 1   |  
|                                        |                             |                                                     | Property operating costs                                                                                                                                       |                                              |   |             |   |          |   |             |       |         |   |        |       |         |   |         |       |          |   |         |       |          |    |         |     |     |   |    |       |       |   |    |  
|                                        |                             |                                                     | Property taxes, insurance and other                                                                                                                            |                                              |   | 442          |   |          |   |             |       |         |   | (9      | )     |         |   | 1,157    |       |          |   | 585      |       |          |    | 112      |     |     |   | 127 |       |       |   | 24  |  
|                                        |                             |                                                     | Depreciation and amortization                                                                                                                                  |                                              |   | 329          |   |          |   |             |       |         |   | 318     |       |         |   | 1,743    |       |          |   | 757      |       |          |    | 403      |     |     |   | 345 |       |       |   | 92  |  
|                                        |                             |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                              |   |              |   |          |   |              |       |         |   |         |       |         |   |          |       |          |   |          |       |          |    |          |     |     |   |     |       |       |   |     |  
|                                        |                             |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                              |   |             |   |          |   |             |       |         |   |        |       |         |   |         |       |          |   |         |       |          |    |         |     |     |   |    |       |       |   |    |  
|                                        |                             |                                                     | Swap termination fees                                                                                                                                          |                                              |   |             |   |          |   |             |       |         |   |        |       |         |   |         |       |          |   |         |       |          |    |         |     |     |   |    |       |       |   |    |  
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                              |   |             |   |          |   |             |       |         |   |        |       |         |   |         |       |          |   |         |       |          |    |         |     |     |   |    |       |       |   |    |  
|                                        |                             |                                                     | FelCor merger costs                                                                                                                                            |                                              |   |             |   |          |   |             |       |         |   |        |       |         |   |         |       |          |   |         |       |          |    |         |     |     |   |    |       |       |   |    |  
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality Corporation                                                                                                   |                                              |   |             |   |          |   |             |       |         |   |        |       |         |   |         |       |          |   |         |       |          |    |         |     |     |   |    |       |       |   |    |  
|                                        |                             |                                                     | Restructuring charge                                                                                                                                           |                                              |   |             |   |          |   |             |       |         |   |        |       |         |   |         |       |          |   |         |       |          |    |         |     |     |   |    |       |       |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |              |   |          |   |              |       |         |   |         |       |         |   |          |       |          |   |          |       |          |    |          |     |     |   |     |       |       |  
|                                        |                             |                                                     | Total operating expenses                                                                                                                                       |                                              |   | 764          |   |          |   |             |       |         |   | 307     |       |         |   | 2,901    |       |          |   | 1,343    |       |          |    | 516      |     |     |   | 473 |       |       |   | 117 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |              |   |          |   |              |       |         |   |         |       |         |   |          |       |          |   |          |       |          |    |          |     |     |   |     |       |       |  
|                                        |                             |                                                     | Net operating income                                                                                                                                           |                                              |   | 1,547        |   |          |   |             |       |         |   | 750     |       |         |   | 3,916    |       |          |   | (148     | )     |          |    | 1,041    |     |     |   | 372 |       |       |   | 935 |  
|                                        |                             |                                                     | Interest expense, net                                                                                                                                          |                                              |   | 11           |   |          |   |             |       |         |   | (3      | )     |         |   | (52      | )     |          |   | (18      | )     |          |    | (31      | )   |     |   | (9  | )     |       |   | (8  | )
|                                        |                             |                                                     | Equity in income from consolidated entities                                                                                                                    |                                              |   |             |   |          |   |             |       |         |   |        |       |         |   |         |       |          |   |         |       |          |    |         |     |     |   |    |       |       |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |              |   |          |   |              |       |         |   |         |       |         |   |          |       |          |   |          |       |          |    |          |     |     |   |     |       |       |  
|                                        |                             |                                                     | Income (loss) from continuing operations before minority interests, income
tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                              |   | 1,536        |   |          |   |             |       |         |   | 753     |       |         |   | 3,968    |       |          |   | (130     | )     |          |    | 1,072    |     |     |   | 381 |       |       |   | 943 |  
|                                        |                             |                                                     | Minority interests                                                                                                                                             |                                              |   |             |   |          |   |             |       |         |   |        |       |         |   |         |       |          |   |         |       |          |    |         |     |     |   |    |       |       |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |              |   |          |   |              |       |         |   |         |       |         |   |          |       |          |   |          |       |          |    |          |     |     |   |     |       |       |  
|                                        |                             |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                              |   | 1,536        |   |          |   |             |       |         |   | 753     |       |         |   | 3,968    |       |          |   | (130     | )     |          |    | 1,072    |     |     |   | 381 |       |       |   | 943 |  
|                                        |                             |                                                     | Income tax benefit                                                                                                                                             |                                              |   |             |   |          |   |             |       |         |   |        |       |         |   |         |       |          |   |         |       |          |    |         |     |     |   |    |       |       |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |              |   |          |   |              |       |         |   |         |       |         |   |          |       |          |   |          |       |          |    |          |     |     |   |     |       |       |  
|                                        |                             |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                              |   | 1,536        |   |          |   |             |       |         |   | 753     |       |         |   | 3,968    |       |          |   | (130     | )     |          |    | 1,072    |     |     |   | 381 |       |       |   | 943 |  
|                                        |                             |                                                     | Discontinued operations:                                                                                                                                       |                                              |   |              |   |          |   |              |       |         |   |         |       |         |   |          |       |          |   |          |       |          |    |          |     |     |   |     |       |       |   |     |  
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) from operations of assets sold |   |              |  |          |   |              |      |         |   |         |      |         |   |          |      |          |   |          |      |          |    |          |    |     |   |     |      |       |   |     |  | 
|                                        |                             |                                                     |                                                                                                                                                                | Income tax benefit                           |   |              |  |          |   |              |      |         |   |         |      |         |   |          |      |          |   |          |      |          |    |          |    |     |   |     |      |       |   |     |  | 
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |              |   |          |   |              |       |         |   |         |       |         |   |          |       |          |   |          |       |          |    |          |     |     |   |     |       |       |  
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations     |   |              |  |          |   |              |      |         |   |         |      |         |   |          |      |          |   |          |      |          |    |          |    |     |   |     |      |       |   |     |  | 
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                              |   |             |   |          |   |             |       |         |   |        |       |         |   |         |       |          |   |         |       |          |    |         |     |     |   |    |       |       |   |    |  
|                                        |                             |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                              |   |             |   |          |   |             |       |         |   |        |       |         |   |         |       |          |   |         |       |          |    |         |     |     |   |    |       |       |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |              |   |          |   |              |       |         |   |         |       |         |   |          |       |          |   |          |       |          |    |          |     |     |   |     |       |       |  
|                                        |                             |                                                     | Net income (loss)                                                                                                                                              |                                              |   | 1,536        |   |          |   |             |       |         |   | 753     |       |         |   | 3,968    |       |          |   | (130     | )     |          |    | 1,072    |     |     |   | 381 |       |       |   | 943 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |              |   |          |   |              |       |         |   |         |       |         |   |          |       |          |   |          |       |          |    |          |     |     |   |     |       |       |  





---



##### 



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



|                                                |                                     |                                                             |                                                                                                                                                                                |                                                      |   |          |   |          |   |          |     |          |   |          |       |          |    |       |       |       |   |       |       |       |   |       |   | 
|----------------------------------------------- | ----------------------------------- | ----------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------- | - | -------- | - | -------- | - | -------- | --- | -------- | - | -------- | ----- | -------- | -- | ----- | ----- | ----- | - | ----- | ----- | ----- | - | ----- | - | 
|                                                |                                     |                                                             |                                                                                                                                                                                |                                                      |   | MeriStar |   | MeriStar |   | MeriStar |     | MeriStar |   | MeriStar |       | MeriStar
|                                                |                                     |                                                             |                                                                                                                                                                                |                                                      |   | Sub 3C,  |   | Sub 5R,  |   | Sub 8A,  |     | Sub 6D,  |   | Sub 6E,  |       | Sub 4E, 
|                                                |                                     |                                                             |                                                                                                                                                                                |                                                      |   | LLC      |   | LLC      |   | LLC      |     | LLC      |   | LLC      |       | L.P.    
|                                                |                                     |                                                             |                                                                                                                                                                                |                                                      |   |          |   |          |   |          |     |          |   |          |       |         
|Revenue:                                        |                                     |                                                             |                                                                                                                                                                                |                                                      |   |          |   |          |   |          |     |          |   |          |       |          |    |       |       |       |   |       |       |      
|                                                | Participating
        lease revenue |                                                             |                                                                                                                                                                                | 1,474                                                |   |          |   |         |   |          |     | 377      |   |          |       | 1,733    |    |       |       | 4,556 |   |       |       | 1,298 |  
|                                                |                                     | Hotel operations:                                           |                                                                                                                                                                                |                                                      |   |          |   |          |   |          |     |          |   |          |       |          |    |       |       |       |   |       |       |       |   |      
|                                                |                                     |                                                             | Rooms                                                                                                                                                                          |                                                      |   |         |   |          |   |         |     |          |   |         |       |          |    |      |       |       |   |      |       |       |   |      |  
|                                                |                                     |                                                             | Food and
        beverage                                                                                                                                                      |                                                      |   |         |   |          |   |         |     |          |   |         |       |          |    |      |       |       |   |      |       |       |   |      |  
|                                                |                                     |                                                             | Other operating
        departments                                                                                                                                            |                                                      |   |         |   |          |   |         |     |          |   |         |       |          |    |      |       |       |   |      |       |       |   |      |  
|                                                |                                     | Office rental
        and other revenues                    |                                                                                                                                                                                |                                                      |  |          |   |          |  |          |     |          |  |          |       |          | 10 |       |       |       |  |       |       |       | 9 |      
|                                                |                                     |                                                             |                                                                                                                                                                                |                                                      |   |          |   |          |   |          |     |          |   |          |       |          |    |       |       |       |   |       |       |       |  
|Total revenue                                   |                                     |                                                             | 1,474                                                                                                                                                                          |                                                      |   |          |  |          |   |          | 377 |          |   |          | 1,743 |          |    |       | 4,556 |       |   |       | 1,307 |      
|                                                |                                     |                                                             |                                                                                                                                                                                |                                                      |   |          |   |          |   |          |     |          |   |          |       |          |    |       |       |       |   |       |       |       |  
|Hotel operating
        expenses by department: |                                     |                                                             |                                                                                                                                                                                |                                                      |   |          |   |          |   |          |     |          |   |          |       |          |    |       |       |       |   |       |       |      
|                                                |                                     |                                                             | Rooms                                                                                                                                                                          |                                                      |   |         |   |          |   |         |     |          |   |         |       |          |    |      |       |       |   |      |       |       |   |      |  
|                                                |                                     |                                                             | Food and
        beverage                                                                                                                                                      |                                                      |   |         |   |          |   |         |     |          |   |         |       |          |    |      |       |       |   |      |       |       |   |      |  
|                                                |                                     |                                                             | Other operating
        departments                                                                                                                                            |                                                      |   |         |   |          |   |         |     |          |   |         |       |          |    |      |       |       |   |      |       |       |   |      |  
|                                                |                                     | Office rental,
        parking and other operating expenses |                                                                                                                                                                                |                                                      |  |          |   |          |  |          |     |          |  |          |       |          |   |       |       |       |  |       |       |       |  |      
|Undistributed
        operating expenses:       |                                     |                                                             |                                                                                                                                                                                |                                                      |   |          |   |          |   |          |     |          |   |          |       |          |    |       |       |       |   |       |       |      
|                                                |                                     |                                                             | Administrative
        and general                                                                                                                                             |                                                      |   | 1        |   |          |   |         |     |          |   |         |       |          |    | 1     |       |       |   | 1     |       |       |   | 1     |  
|                                                |                                     |                                                             | Property
        operating costs                                                                                                                                               |                                                      |   |         |   |          |   |         |     |          |   |         |       |          |    |      |       |       |   |      |       |       |   |      |  
|                                                |                                     |                                                             | Property
        taxes, insurance and other                                                                                                                                    |                                                      |   | 362      |   |          |   |         |     |          |   | 54       |       |          |    | 227   |       |       |   | 479   |       |       |   | 346   |  
|                                                |                                     |                                                             | Depreciation
        and amortization                                                                                                                                          |                                                      |   | 514      |   |          |   |         |     |          |   | 89       |       |          |    | 380   |       |       |   | 1,249 |       |       |   | 684   |  
|                                                |                                     |                                                             | Expense
        for non-hedging derivatives                                                                                                                                    |                                                      |   |          |   |          |   |          |     |          |   |          |       |          |    |       |       |       |   |       |       |       |   |       |  
|                                                |                                     |                                                             | Write down
        of investment in STS Hotel Net                                                                                                                              |                                                      |   |         |   |          |   |         |     |          |   |         |       |          |    |      |       |       |   |      |       |       |   |      |  
|                                                |                                     |                                                             | Swap termination
        fees                                                                                                                                                  |                                                      |   |         |   |          |   |         |     |          |   |         |       |          |    |      |       |       |   |      |       |       |   |      |  
|                                                |                                     |                                                             | Loss on
        fair value of non-hedging derivatives                                                                                                                          |                                                      |   |         |   |          |   |         |     |          |   |         |       |          |    |      |       |       |   |      |       |       |   |      |  
|                                                |                                     |                                                             | FelCor merger
        costs                                                                                                                                                    |                                                      |   |         |   |          |   |         |     |          |   |         |       |          |    |      |       |       |   |      |       |       |   |      |  
|                                                |                                     |                                                             | Costs to
        terminate leases with Prime Hospitality Corporation                                                                                                           |                                                      |   |         |   |          |   |         |     |          |   |         |       |          |    |      |       |       |   |      |       |       |   |      |  
|                                                |                                     |                                                             | Restructuring
        charge                                                                                                                                                   |                                                      |   |         |   |          |   |         |     |          |   |         |       |          |    |      |       |       |   |      |       |       |   |      |  
|                                                |                                     |                                                             |                                                                                                                                                                                |                                                      |   |          |   |          |   |          |     |          |   |          |       |          |    |       |       |       |   |       |       |       |  
|                                                |                                     |                                                             | Total operating
        expenses                                                                                                                                               |                                                      |   | 877      |   |          |   |         |     |          |   | 143      |       |          |    | 608   |       |       |   | 1,729 |       |       |   | 1,031 |  
|                                                |                                     |                                                             |                                                                                                                                                                                |                                                      |   |          |   |          |   |          |     |          |   |          |       |          |    |       |       |       |   |       |       |       |  
|                                                |                                     |                                                             | Net operating
        income                                                                                                                                                   |                                                      |   | 597      |   |          |   |         |     |          |   | 234      |       |          |    | 1,135 |       |       |   | 2,827 |       |       |   | 276   |  
|                                                |                                     |                                                             | Interest
        expense, net                                                                                                                                                  |                                                      |   | (18      | ) |          |   |         |     |          |   | (5       | )     |          |    | (16   | )     |       |   | (34   | )     |       |   | (17   | )
|                                                |                                     |                                                             | Equity in
        income from consolidated entities                                                                                                                            |                                                      |   |         |   |          |   |         |     |          |   |         |       |          |    |      |       |       |   |      |       |       |   |      |  
|                                                |                                     |                                                             |                                                                                                                                                                                |                                                      |   |          |   |          |   |          |     |          |   |          |       |          |    |       |       |       |   |       |       |       |  
|                                                |                                     |                                                             | Income (loss) from
        continuing operations before minority interests, income tax benefit, discontinued
        operations, loss on sale of assets and extraordinary loss |                                                      |   | 615      |   |          |   |         |     |          |   | 239      |       |          |    | 1,151 |       |       |   | 2,861 |       |       |   | 293   |  
|                                                |                                     |                                                             | Minority
        interests                                                                                                                                                     |                                                      |   |         |   |          |   |         |     |          |   |         |       |          |    |      |       |       |   |      |       |       |   |      |  
|                                                |                                     |                                                             |                                                                                                                                                                                |                                                      |   |          |   |          |   |          |     |          |   |          |       |          |    |       |       |       |   |       |       |       |  
|                                                |                                     |                                                             | Income (loss) from
        continuing operating before income tax benefit, discontinued operations,
        loss on sale of assets and extraordinary loss                      |                                                      |   | 615      |   |          |   |         |     |          |   | 239      |       |          |    | 1,151 |       |       |   | 2,861 |       |       |   | 293   |  
|                                                |                                     |                                                             | Income tax
        benefit                                                                                                                                                     |                                                      |   |         |   |          |   |         |     |          |   |         |       |          |    |      |       |       |   |      |       |       |   |      |  
|                                                |                                     |                                                             |                                                                                                                                                                                |                                                      |   |          |   |          |   |          |     |          |   |          |       |          |    |       |       |       |   |       |       |       |  
|                                                |                                     |                                                             | Income (loss) from
        continuing operations before discontinued operations and loss on sale
        of assets                                                             |                                                      |   | 615      |   |          |   |         |     |          |   | 239      |       |          |    | 1,151 |       |       |   | 2,861 |       |       |   | 293   |  
|                                                |                                     |                                                             | Discontinued
        operations:                                                                                                                                               |                                                      |   |          |   |          |   |          |     |          |   |          |       |          |    |       |       |       |   |       |       |       |   |       |  
|                                                |                                     |                                                             |                                                                                                                                                                                | Income (loss) from
        operations of assets sold |   |          |  |          |   |          |    |          |   |          |      |          |    |       |      |       |   |       |      |       |   |       |  | 
|                                                |                                     |                                                             |                                                                                                                                                                                | Income tax
        benefit                           |   |          |  |          |   |          |    |          |   |          |      |          |    |       |      |       |   |       |      |       |   |       |  | 
|                                                |                                     |                                                             |                                                                                                                                                                                |                                                      |   |          |   |          |   |          |     |          |   |          |       |          |    |       |       |       |   |       |       |       |  
|                                                |                                     |                                                             |                                                                                                                                                                                | Income (loss) on
        discontinued operations     |   |          |  |          |   |          |    |          |   |          |      |          |    |       |      |       |   |       |      |       |   |       |  | 
|                                                |                                     |                                                             | Loss on
        sale of assets, net of tax effect                                                                                                                              |                                                      |   |         |   |          |   |         |     |          |   | (1,062   | )     |          |    |      |       |       |   |      |       |       |   |      |  
|                                                |                                     |                                                             | Extraordinary
        loss, net of tax                                                                                                                                         |                                                      |   |         |   |          |   |         |     |          |   |         |       |          |    |      |       |       |   |      |       |       |   |      |  
|                                                |                                     |                                                             |                                                                                                                                                                                |                                                      |   |          |   |          |   |          |     |          |   |          |       |          |    |       |       |       |   |       |       |       |  
|                                                |                                     |                                                             | Net income
        (loss)                                                                                                                                                      |                                                      |   | 615      |   |          |   |         |     |          |   | (823     | )     |          |    | 1,151 |       |       |   | 2,861 |       |       |   | 293   |  
|                                                |                                     |                                                             |                                                                                                                                                                                |                                                      |   |          |   |          |   |          |     |          |   |          |       |          |    |       |       |       |   |       |       |       |  



---



##### 



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

|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |       |          |   |          |       |          |   |          |       |          |   |          |   |   |   |     |     |     |   |      |       |       |   |     |   | 
|--------------------------------------- | --------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------- | - | -------- | ----- | -------- | - | -------- | ----- | -------- | - | -------- | ----- | -------- | - | -------- | - | - | - | --- | --- | --- | - | ---- | ----- | ----- | - | --- | - | 
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   | MeriStar |       | MeriStar |   | MeriStar |       | MeriStar |   | MeriStar |       | MeriStar |   | MeriStar
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   | Sub 1B,  |       | Sub 5F,  |   | Sub 6G,  |       | Sub 8C,  |   | Sub 4C,  |       | Sub 4H,  |   | Sub 7E, 
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   | LLC      |       | L.P.     |   | LLC      |       | LLC      |   | L.P.     |       | L.P.     |   | LLC     
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |       |          |   |          |       |          |   |          |       |          |   |         
|Revenue:                                |                             |                                                     |                                                                                                                                                                |                                              |   |          |       |          |   |          |       |          |   |          |       |          |   |          |   |   |   |     |     |     |   |      |       |      
|                                        | Participating lease revenue |                                                     |                                                                                                                                                                | 2,338                                        |   |          |       | 2,316    |   |          |       | 2,275    |   |          |       | 1,880    |   |          |   |  |   |     |     | 381 |   |      |       | 1,315 |  
|                                        |                             | Hotel operations:                                   |                                                                                                                                                                |                                              |   |          |       |          |   |          |       |          |   |          |       |          |   |          |   |   |   |     |     |     |   |      |       |       |   |    
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                              |   |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |    |     |     |   |     |       |       |   |    |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                              |   |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |    |     |     |   |     |       |       |   |    |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                              |   |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |    |     |     |   |     |       |       |   |    |  
|                                        |                             | Office rental and other revenues                    |                                                                                                                                                                |                                              |  |          |       |          |  |          |       |          |  |          |       |          | 2 |          |   |   |  |     |     |     |  |      |       |       |  |    
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |       |          |   |          |       |          |   |          |       |          |   |          |   |   |   |     |     |     |   |      |       |       |  
|Total revenue                           |                             |                                                     | 2,338                                                                                                                                                          |                                              |   |          | 2,316 |          |   |          | 2,275 |          |   |          | 1,882 |          |   |          |  |   |   |     | 381 |     |   |      | 1,315 |      
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |       |          |   |          |       |          |   |          |       |          |   |          |   |   |   |     |     |     |   |      |       |       |  
|Hotel operating expenses by department: |                             |                                                     |                                                                                                                                                                |                                              |   |          |       |          |   |          |       |          |   |          |       |          |   |          |   |   |   |     |     |     |   |      |       |      
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                              |   |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |    |     |     |   |     |       |       |   |    |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                              |   |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |    |     |     |   |     |       |       |   |    |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                              |   |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |    |     |     |   |     |       |       |   |    |  
|                                        |                             | Office rental, parking and other operating expenses |                                                                                                                                                                |                                              |  |          |       |          |  |          |       |          |  |          |       |          |  |          |   |   |  |     |     |     |  |      |       |       |  |    
|Undistributed operating expenses:       |                             |                                                     |                                                                                                                                                                |                                              |   |          |       |          |   |          |       |          |   |          |       |          |   |          |   |   |   |     |     |     |   |      |       |      
|                                        |                             |                                                     | Administrative and general                                                                                                                                     |                                              |   | 1        |       |          |   | 1        |       |          |   | 1        |       |          |   | 1        |   |   |   |    |     |     |   | 1    |       |       |   | 1   |  
|                                        |                             |                                                     | Property operating costs                                                                                                                                       |                                              |   |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |    |     |     |   |     |       |       |   |    |  
|                                        |                             |                                                     | Property taxes, insurance and other                                                                                                                            |                                              |   | 146      |       |          |   | 120      |       |          |   | 417      |       |          |   | 620      |   |   |   |    |     |     |   | 127  |       |       |   | 261 |  
|                                        |                             |                                                     | Depreciation and amortization                                                                                                                                  |                                              |   | 459      |       |          |   | 787      |       |          |   | 574      |       |          |   | 981      |   |   |   |    |     |     |   | 399  |       |       |   | 449 |  
|                                        |                             |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                              |   |          |       |          |   |          |       |          |   |          |       |          |   |          |   |   |   |     |     |     |   |      |       |       |   |     |  
|                                        |                             |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                              |   |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |    |     |     |   |     |       |       |   |    |  
|                                        |                             |                                                     | Swap termination fees                                                                                                                                          |                                              |   |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |    |     |     |   |     |       |       |   |    |  
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                              |   |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |    |     |     |   |     |       |       |   |    |  
|                                        |                             |                                                     | FelCor merger costs                                                                                                                                            |                                              |   |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |    |     |     |   |     |       |       |   |    |  
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality Corporation                                                                                                   |                                              |   |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |    |     |     |   |     |       |       |   |    |  
|                                        |                             |                                                     | Restructuring charge                                                                                                                                           |                                              |   |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |    |     |     |   |     |       |       |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |       |          |   |          |       |          |   |          |       |          |   |          |   |   |   |     |     |     |   |      |       |       |  
|                                        |                             |                                                     | Total operating expenses                                                                                                                                       |                                              |   | 606      |       |          |   | 908      |       |          |   | 992      |       |          |   | 1,602    |   |   |   |    |     |     |   | 527  |       |       |   | 711 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |       |          |   |          |       |          |   |          |       |          |   |          |   |   |   |     |     |     |   |      |       |       |  
|                                        |                             |                                                     | Net operating income                                                                                                                                           |                                              |   | 1,732    |       |          |   | 1,408    |       |          |   | 1,283    |       |          |   | 280      |   |   |   |    |     |     |   | (146 | )     |       |   | 604 |  
|                                        |                             |                                                     | Interest expense, net                                                                                                                                          |                                              |   | (29      | )     |          |   | (12      | )     |          |   | (64      | )     |          |   | (35      | ) |   |   |    |     |     |   | (9   | )     |       |   | (16 | )
|                                        |                             |                                                     | Equity in income from consolidated entities                                                                                                                    |                                              |   |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |    |     |     |   |     |       |       |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |       |          |   |          |       |          |   |          |       |          |   |          |   |   |   |     |     |     |   |      |       |       |  
|                                        |                             |                                                     | Income (loss) from continuing operations before minority interests, income
tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                              |   | 1,761    |       |          |   | 1,420    |       |          |   | 1,347    |       |          |   | 315      |   |   |   |    |     |     |   | (137 | )     |       |   | 620 |  
|                                        |                             |                                                     | Minority interests                                                                                                                                             |                                              |   |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |     |     |     |   |     |       |       |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |       |          |   |          |       |          |   |          |       |          |   |          |   |   |   |     |     |     |   |      |       |       |  
|                                        |                             |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                              |   | 1,761    |       |          |   | 1,420    |       |          |   | 1,347    |       |          |   | 315      |   |   |   |    |     |     |   | (137 | )     |       |   | 620 |  
|                                        |                             |                                                     | Income tax benefit                                                                                                                                             |                                              |   |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |    |     |     |   |     |       |       |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |       |          |   |          |       |          |   |          |       |          |   |          |   |   |   |     |     |     |   |      |       |       |  
|                                        |                             |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                              |   | 1,761    |       |          |   | 1,420    |       |          |   | 1,347    |       |          |   | 315      |   |   |   |    |     |     |   | (137 | )     |       |   | 620 |  
|                                        |                             |                                                     | Discontinued operations:                                                                                                                                       |                                              |   |          |       |          |   |          |       |          |   |          |       |          |   |          |   |   |   |     |     |     |   |      |       |       |   |     |  
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) from operations of assets sold |   |          |      |          |   |          |      |          |   |          |      |          |   |          |  |   |   |     | (61 | )   |   |      |      |       |   |     |  | 
|                                        |                             |                                                     |                                                                                                                                                                | Income tax benefit                           |   |          |      |          |   |          |      |          |   |          |      |          |   |          |  |   |   |     |    |     |   |      |      |       |   |     |  | 
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |       |          |   |          |       |          |   |          |       |          |   |          |   |   |   |     |     |     |   |      |       |       |  
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations     |   |          |      |          |   |          |      |          |   |          |      |          |   |          |  |   |   |     | (61 | )   |   |      |      |       |   |     |  | 
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                              |   |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |    |     |     |   |     |       |       |   |    |  
|                                        |                             |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                              |   |         |       |          |   |         |       |          |   |         |       |          |   |         |   |   |   |    |     |     |   |     |       |       |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |       |          |   |          |       |          |   |          |       |          |   |          |   |   |   |     |     |     |   |      |       |       |  
|                                        |                             |                                                     | Net income (loss)                                                                                                                                              |                                              |   | 1,761    |       |          |   | 1,420    |       |          |   | 1,347    |       |          |   | 315      |   |   |   | (61 | )   |     |   | (137 | )     |       |   | 620 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |       |          |   |          |       |          |   |          |       |          |   |          |   |   |   |     |     |     |   |      |       |       |  





---



##### 



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



|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |       |          |   |          |       |                 |   |          |       |          |   |          |       |       |   |       |     |     |   |      |     |     |   |     |   | 
|--------------------------------------- | --------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------- | - | -------- | ----- | -------- | - | -------- | ----- | --------------- | - | -------- | ----- | -------- | - | -------- | ----- | ----- | - | ----- | --- | --- | - | ---- | --- | --- | - | --- | - | 
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |       |          |   |          |       |                 |   |          |       |          |   |          |       |       |   |       |     |     |   |      |     |     |   |    
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   | MeriStar |       | MeriStar |   | MeriStar |       | MeriStar Sub 7A |   | MeriStar |       | MeriStar |   | MeriStar
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   | Sub 3D,  |       | Sub 1A,  |   | Sub 5E,  |       | Joint           |   | Sub 6K,  |       | Sub 2B,  |   | Sub 3A, 
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   | LLC      |       | LLC      |   | LLC      |       | Venture         |   | LLC      |       | LLC      |   | LLC     
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |       |          |   |          |       |                 |   |          |       |          |   |         
|Revenue:                                |                             |                                                     |                                                                                                                                                                |                                              |   |          |       |          |   |          |       |                 |   |          |       |          |   |          |       |       |   |       |     |     |   |      |     |    
|                                        | Participating lease revenue |                                                     |                                                                                                                                                                | 1,513                                        |   |          |       | 1,648    |   |          |       | 4,291           |   |          |       | 1,026    |   |          |       | 3,015 |   |       |     | 480 |   |      |     | 551 |  
|                                        |                             | Hotel operations:                                   |                                                                                                                                                                |                                              |   |          |       |          |   |          |       |                 |   |          |       |          |   |          |       |       |   |       |     |     |   |      |     |     |   |    
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                              |   |         |       |          |   |         |       |                 |   |         |       |          |   |         |       |       |   |      |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                              |   |         |       |          |   |         |       |                 |   |         |       |          |   |         |       |       |   |      |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                              |   |         |       |          |   |         |       |                 |   |         |       |          |   |         |       |       |   |      |     |     |   |     |     |     |   |    |  
|                                        |                             | Office rental and other revenues                    |                                                                                                                                                                |                                              |  |          |       |          |  |          |       |                 |  |          |       |          |  |          |       |       |  |       |     |     |  |      |     |     |  |    
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |       |          |   |          |       |                 |   |          |       |          |   |          |       |       |   |       |     |     |   |      |     |     |  
|Total revenue                           |                             |                                                     | 1,513                                                                                                                                                          |                                              |   |          | 1,648 |          |   |          | 4,291 |                 |   |          | 1,026 |          |   |          | 3,015 |       |   |       | 480 |     |   |      | 551 |    
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |       |          |   |          |       |                 |   |          |       |          |   |          |       |       |   |       |     |     |   |      |     |     |  
|Hotel operating expenses by department: |                             |                                                     |                                                                                                                                                                |                                              |   |          |       |          |   |          |       |                 |   |          |       |          |   |          |       |       |   |       |     |     |   |      |     |    
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                              |   |         |       |          |   |         |       |                 |   |         |       |          |   |         |       |       |   |      |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                              |   |         |       |          |   |         |       |                 |   |         |       |          |   |         |       |       |   |      |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                              |   |         |       |          |   |         |       |                 |   |         |       |          |   |         |       |       |   |      |     |     |   |     |     |     |   |    |  
|                                        |                             | Office rental, parking and other operating expenses |                                                                                                                                                                |                                              |  |          |       |          |  |          |       |                 |  |          |       |          |  |          |       |       |  |       |     |     |  |      |     |     |  |    
|Undistributed operating expenses:       |                             |                                                     |                                                                                                                                                                |                                              |   |          |       |          |   |          |       |                 |   |          |       |          |   |          |       |       |   |       |     |     |   |      |     |    
|                                        |                             |                                                     | Administrative and general                                                                                                                                     |                                              |   | 1        |       |          |   | 1        |       |                 |   | 9        |       |          |   | (42      | )     |       |   | 1     |     |     |   |     |     |     |   | 1   |  
|                                        |                             |                                                     | Property operating costs                                                                                                                                       |                                              |   |         |       |          |   |         |       |                 |   |         |       |          |   |         |       |       |   |      |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | Property taxes, insurance and other                                                                                                                            |                                              |   | 186      |       |          |   | 269      |       |                 |   | 412      |       |          |   | 79       |       |       |   | 497   |     |     |   | 136  |     |     |   | 46  |  
|                                        |                             |                                                     | Depreciation and amortization                                                                                                                                  |                                              |   | 692      |       |          |   | 353      |       |                 |   | 1,382    |       |          |   | 301      |       |       |   | 554   |     |     |   | 287  |     |     |   | 255 |  
|                                        |                             |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                              |   |          |       |          |   |          |       |                 |   |          |       |          |   |          |       |       |   |       |     |     |   |      |     |     |   |     |  
|                                        |                             |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                              |   |         |       |          |   |         |       |                 |   |         |       |          |   |         |       |       |   |      |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | Swap termination fees                                                                                                                                          |                                              |   |         |       |          |   |         |       |                 |   |         |       |          |   |         |       |       |   |      |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                              |   |         |       |          |   |         |       |                 |   |         |       |          |   |         |       |       |   |      |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | FelCor merger costs                                                                                                                                            |                                              |   |         |       |          |   |         |       |                 |   |         |       |          |   |         |       |       |   |      |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality Corporation                                                                                                   |                                              |   |         |       |          |   |         |       |                 |   |         |       |          |   |         |       |       |   |      |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | Restructuring charge                                                                                                                                           |                                              |   |         |       |          |   |         |       |                 |   |         |       |          |   |         |       |       |   |      |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |       |          |   |          |       |                 |   |          |       |          |   |          |       |       |   |       |     |     |   |      |     |     |  
|                                        |                             |                                                     | Total operating expenses                                                                                                                                       |                                              |   | 879      |       |          |   | 623      |       |                 |   | 1,803    |       |          |   | 338      |       |       |   | 1,052 |     |     |   | 423  |     |     |   | 302 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |       |          |   |          |       |                 |   |          |       |          |   |          |       |       |   |       |     |     |   |      |     |     |  
|                                        |                             |                                                     | Net operating income                                                                                                                                           |                                              |   | 634      |       |          |   | 1,025    |       |                 |   | 2,488    |       |          |   | 688      |       |       |   | 1,963 |     |     |   | 57   |     |     |   | 249 |  
|                                        |                             |                                                     | Interest expense, net                                                                                                                                          |                                              |   | (79      | )     |          |   | (16      | )     |                 |   | (90      | )     |          |   | (9       | )     |       |   | (22   | )   |     |   | 275  |     |     |   | (12 | )
|                                        |                             |                                                     | Equity in income from consolidated entities                                                                                                                    |                                              |   |         |       |          |   |         |       |                 |   |         |       |          |   |         |       |       |   |      |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |       |          |   |          |       |                 |   |          |       |          |   |          |       |       |   |       |     |     |   |      |     |     |  
|                                        |                             |                                                     | Income (loss) from continuing operations before minority interests, income
tax benefit, discontinued operations, loss on sale of assets and extraordinary loss |                                              |   | 713      |       |          |   | 1,041    |       |                 |   | 2,578    |       |          |   | 697      |       |       |   | 1,985 |     |     |   | (218 | )   |     |   | 261 |  
|                                        |                             |                                                     | Minority interests                                                                                                                                             |                                              |   |         |       |          |   |         |       |                 |   |         |       |          |   |         |       |       |   |      |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |       |          |   |          |       |                 |   |          |       |          |   |          |       |       |   |       |     |     |   |      |     |     |  
|                                        |                             |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                              |   | 713      |       |          |   | 1,041    |       |                 |   | 2,578    |       |          |   | 697      |       |       |   | 1,985 |     |     |   | (218 | )   |     |   | 261 |  
|                                        |                             |                                                     | Income tax benefit                                                                                                                                             |                                              |   |         |       |          |   |         |       |                 |   |         |       |          |   |         |       |       |   |      |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |       |          |   |          |       |                 |   |          |       |          |   |          |       |       |   |       |     |     |   |      |     |     |  
|                                        |                             |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                              |   | 713      |       |          |   | 1,041    |       |                 |   | 2,578    |       |          |   | 697      |       |       |   | 1,985 |     |     |   | (218 | )   |     |   | 261 |  
|                                        |                             |                                                     | Discontinued operations:                                                                                                                                       |                                              |   |          |       |          |   |          |       |                 |   |          |       |          |   |          |       |       |   |       |     |     |   |      |     |     |   |     |  
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) from operations of assets sold |   |          |      |          |   |          |      |                 |   |          |      |          |   |          |      |       |   |       |    |     |   |      |    |     |   |     |  | 
|                                        |                             |                                                     |                                                                                                                                                                | Income tax benefit                           |   |          |      |          |   |          |      |                 |   |          |      |          |   |          |      |       |   |       |    |     |   |      |    |     |   |     |  | 
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |       |          |   |          |       |                 |   |          |       |          |   |          |       |       |   |       |     |     |   |      |     |     |  
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations     |   |          |      |          |   |          |      |                 |   |          |      |          |   |          |      |       |   |       |    |     |   |      |    |     |   |     |  | 
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                              |   |         |       |          |   |         |       |                 |   |         |       |          |   |         |       |       |   |      |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                              |   |         |       |          |   |         |       |                 |   |         |       |          |   |         |       |       |   |      |     |     |   |     |     |     |   |    |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |       |          |   |          |       |                 |   |          |       |          |   |          |       |       |   |       |     |     |   |      |     |     |  
|                                        |                             |                                                     | Net income (loss)                                                                                                                                              |                                              |   | 713      |       |          |   | 1,041    |       |                 |   | 2,578    |       |          |   | 697      |       |       |   | 1,985 |     |     |   | (218 | )   |     |   | 261 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |       |          |   |          |       |                 |   |          |       |          |   |          |       |       |   |       |     |     |   |      |     |     |  



---



##### 



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

|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |     |          |   |          |     |          |   |             |       |          |   |          |     |     |   |     |       |       |   |     |       |       |   |       |   | 
|--------------------------------------- | --------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------- | - | -------- | --- | -------- | - | -------- | --- | -------- | - | ----------- | ----- | -------- | - | -------- | --- | --- | - | --- | ----- | ----- | - | --- | ----- | ----- | - | ----- | - | 
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   | MeriStar |     | MeriStar |   | MeriStar |     | MeriStar |   | MDV         |       | MeriStar |   | MeriStar
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   | Sub 4A,  |     | Sub 4D,  |   | Sub 2A,  |     | Sub 6L,  |   | Limited     |       | Sub 5C,  |   | Sub 6J, 
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   | LLC      |     | LLC      |   | LLC      |     | LLC      |   | Partnership |       | LLC      |   | LLC     
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |     |          |   |          |     |          |   |             |       |          |   |         
|Revenue:                                |                             |                                                     |                                                                                                                                                                |                                              |   |          |     |          |   |          |     |          |   |             |       |          |   |          |     |     |   |     |       |       |   |     |       |      
|                                        | Participating lease revenue |                                                     |                                                                                                                                                                | 965                                          |   |          |     | 472      |   |          |     | 547      |   |             |       | 1,388    |   |          |     | 467 |   |     |       | 1,067 |   |     |       | 1,890 |  
|                                        |                             | Hotel operations:                                   |                                                                                                                                                                |                                              |   |          |     |          |   |          |     |          |   |             |       |          |   |          |     |     |   |     |       |       |   |     |       |       |   |      
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                              |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                              |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                              |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             | Office rental and other revenues                    |                                                                                                                                                                |                                              |  |          |     |          | 3 |          |     |          |  |             |       |          |  |          |     |     |  |     |       |       |  |     |       |       |  |      
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |     |          |   |          |     |          |   |             |       |          |   |          |     |     |   |     |       |       |   |     |       |       |  
|Total revenue                           |                             |                                                     | 965                                                                                                                                                            |                                              |   |          | 475 |          |   |          | 547 |          |   |             | 1,388 |          |   |          | 467 |     |   |     | 1,067 |       |   |     | 1,890 |      
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |     |          |   |          |     |          |   |             |       |          |   |          |     |     |   |     |       |       |   |     |       |       |  
|Hotel operating expenses by department: |                             |                                                     |                                                                                                                                                                |                                              |   |          |     |          |   |          |     |          |   |             |       |          |   |          |     |     |   |     |       |       |   |     |       |      
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                              |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                              |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                              |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             | Office rental, parking and other operating expenses |                                                                                                                                                                |                                              |  |          |     |          |  |          |     |          |  |             |       |          |  |          |     |     |  |     |       |       |  |     |       |       |  |      
|Undistributed operating expenses:       |                             |                                                     |                                                                                                                                                                |                                              |   |          |     |          |   |          |     |          |   |             |       |          |   |          |     |     |   |     |       |       |   |     |       |      
|                                        |                             |                                                     | Administrative and general                                                                                                                                     |                                              |   | 5        |     |          |   | 1        |     |          |   |            |       |          |   | 1        |     |     |   | (7  | )     |       |   | 9   |       |       |   | 1     |  
|                                        |                             |                                                     | Property operating costs                                                                                                                                       |                                              |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             |                                                     | Property taxes, insurance and other                                                                                                                            |                                              |   | 235      |     |          |   | 111      |     |          |   | 144         |       |          |   | 163      |     |     |   | 103 |       |       |   | 81  |       |       |   | 122   |  
|                                        |                             |                                                     | Depreciation and amortization                                                                                                                                  |                                              |   |         |     |          |   | 220      |     |          |   | 238         |       |          |   | 659      |     |     |   | 91  |       |       |   | 434 |       |       |   | 450   |  
|                                        |                             |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                              |   |          |     |          |   |          |     |          |   |             |       |          |   |          |     |     |   |     |       |       |   |     |       |       |   |       |  
|                                        |                             |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                              |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             |                                                     | Swap termination fees                                                                                                                                          |                                              |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                              |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             |                                                     | FelCor merger costs                                                                                                                                            |                                              |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality Corporation                                                                                                   |                                              |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             |                                                     | Restructuring charge                                                                                                                                           |                                              |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |     |          |   |          |     |          |   |             |       |          |   |          |     |     |   |     |       |       |   |     |       |       |  
|                                        |                             |                                                     | Total operating expenses                                                                                                                                       |                                              |   | 240      |     |          |   | 332      |     |          |   | 382         |       |          |   | 823      |     |     |   | 187 |       |       |   | 524 |       |       |   | 573   |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |     |          |   |          |     |          |   |             |       |          |   |          |     |     |   |     |       |       |   |     |       |       |  
|                                        |                             |                                                     | Net operating income                                                                                                                                           |                                              |   | 725      |     |          |   | 143      |     |          |   | 165         |       |          |   | 565      |     |     |   | 280 |       |       |   | 543 |       |       |   | 1,317 |  
|                                        |                             |                                                     | Interest expense, net                                                                                                                                          |                                              |   | (25      | )   |          |   | (35      | )   |          |   | 517         |       |          |   | (19      | )   |     |   | (6  | )     |       |   | (29 | )     |       |   | (29   | )
|                                        |                             |                                                     | Equity in income from consolidated entities                                                                                                                    |                                              |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |     |          |   |          |     |          |   |             |       |          |   |          |     |     |   |     |       |       |   |     |       |       |  
|                                        |                             |                                                     | Income (loss) from continuing operations before minority interests, income
tax benefit, discontinued operations, loss on sale of assets and extraordinary loss |                                              |   | 750      |     |          |   | 178      |     |          |   | (352        | )     |          |   | 584      |     |     |   | 286 |       |       |   | 572 |       |       |   | 1,346 |  
|                                        |                             |                                                     | Minority interests                                                                                                                                             |                                              |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |     |          |   |          |     |          |   |             |       |          |   |          |     |     |   |     |       |       |   |     |       |       |  
|                                        |                             |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                              |   | 750      |     |          |   | 178      |     |          |   | (352        | )     |          |   | 584      |     |     |   | 286 |       |       |   | 572 |       |       |   | 1,346 |  
|                                        |                             |                                                     | Income tax benefit                                                                                                                                             |                                              |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |     |          |   |          |     |          |   |             |       |          |   |          |     |     |   |     |       |       |   |     |       |       |  
|                                        |                             |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                              |   | 750      |     |          |   | 178      |     |          |   | (352        | )     |          |   | 584      |     |     |   | 286 |       |       |   | 572 |       |       |   | 1,346 |  
|                                        |                             |                                                     | Discontinued operations:                                                                                                                                       |                                              |   |          |     |          |   |          |     |          |   |             |       |          |   |          |     |     |   |     |       |       |   |     |       |       |   |       |  
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) from operations of assets sold |   |          |    |          |   |          |    |          |   |             |      |          |   |          |    |     |   |     |      |       |   |     |      |       |   |       |  | 
|                                        |                             |                                                     |                                                                                                                                                                | Income tax benefit                           |   |          |    |          |   |          |    |          |   |             |      |          |   |          |    |     |   |     |      |       |   |     |      |       |   |       |  | 
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |     |          |   |          |     |          |   |             |       |          |   |          |     |     |   |     |       |       |   |     |       |       |  
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations     |   |          |    |          |   |          |    |          |   |             |      |          |   |          |    |     |   |     |      |       |   |     |      |       |   |       |  | 
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                              |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                              |   |         |     |          |   |         |     |          |   |            |       |          |   |         |     |     |   |    |       |       |   |    |       |       |   |      |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |     |          |   |          |     |          |   |             |       |          |   |          |     |     |   |     |       |       |   |     |       |       |  
|                                        |                             |                                                     | Net income (loss)                                                                                                                                              |                                              |   | 750      |     |          |   | 178      |     |          |   | (352        | )     |          |   | 584      |     |     |   | 286 |       |       |   | 572 |       |       |   | 1,346 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |     |          |   |          |     |          |   |             |       |          |   |          |     |     |   |     |       |       |   |     |       |       |  





---



##### 



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



|                                        |                             |                                                     |                                                                                                                                                                |                                              |     |          |       |          |   |          |       |          |     |          |     |              |   |         |     |          |   |     |    |    |   |      |       |       |   |        |   | 
|--------------------------------------- | --------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------- | --- | -------- | ----- | -------- | - | -------- | ----- | -------- | --- | -------- | --- | ------------ | - | ------- | --- | -------- | - | --- | -- | -- | - | ---- | ----- | ----- | - | ------ | - | 
|                                        |                             |                                                     |                                                                                                                                                                |                                              |     | MeriStar |       | MeriStar |   | MeriStar |       | MeriStar |     | MeriStar |     |              |   |         |     | MeriStar
|                                        |                             |                                                     |                                                                                                                                                                |                                              |     | Sub 1D,  |       | Sub 7B,  |   | Sub 7D,  |       | Sub 7G,  |     | Sub 6B,  |     | MeriStar     |   | Sub 5D,
|                                        |                             |                                                     |                                                                                                                                                                |                                              |     | L.P.     |       | L.P.     |   | LLC      |       | LLC      |     | LLC      |     | Sub 4I, L.P. |   | LLC    
|                                        |                             |                                                     |                                                                                                                                                                |                                              |     |          |       |          |   |          |       |          |     |          |     |              |   |        
|                                        | Revenue:                    |                                                     |                                                                                                                                                                |                                              |     |          |       |          |   |          |       |          |     |          |     |              |   |         |     |          |   |     |    |    |   |      |       |       |  
|                                        | Participating lease revenue |                                                     |                                                                                                                                                                | 4,977                                        |     |          |       | 1,149    |   |          |       | 5,213    |     |          |     | 648          |   |         |     | 872      |   |     |    | 68 |   |      |       | 1,450 |  
|                                        |                             | Hotel operations:                                   |                                                                                                                                                                |                                              |     |          |       |          |   |          |       |          |     |          |     |              |   |         |     |          |   |     |    |    |   |      |       |       |   |       
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                              |     |         |       |          |   |         |       |          |     |         |     |              |   |        |     |          |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                              |     |         |       |          |   |         |       |          |     |         |     |              |   |        |     |          |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                              |     |         |       |          |   |         |       |          |     |         |     |              |   |        |     |          |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             | Office rental and other revenues                    |                                                                                                                                                                |                                              | 285 |          |       |          |  |          |       |          | 991 |          |     |              |  |         |     |          |  |     |    |    | 8 |      |       |       | 3 |       
|                                        |                             |                                                     |                                                                                                                                                                |                                              |     |          |       |          |   |          |       |          |     |          |     |              |   |         |     |          |   |     |    |    |   |      |       |       |  
|Total revenue                           |                             |                                                     | 5,262                                                                                                                                                          |                                              |     |          | 1,149 |          |   |          | 6,204 |          |     |          | 648 |              |   |         | 872 |          |   |     | 76 |    |   |      | 1,453 |      
|                                        |                             |                                                     |                                                                                                                                                                |                                              |     |          |       |          |   |          |       |          |     |          |     |              |   |         |     |          |   |     |    |    |   |      |       |       |  
|Hotel operating expenses by department: |                             |                                                     |                                                                                                                                                                |                                              |     |          |       |          |   |          |       |          |     |          |     |              |   |         |     |          |   |     |    |    |   |      |       |      
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                              |     |         |       |          |   |         |       |          |     |         |     |              |   |        |     |          |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                              |     |         |       |          |   |         |       |          |     |         |     |              |   |        |     |          |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                              |     |         |       |          |   |         |       |          |     |         |     |              |   |        |     |          |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             | Office rental, parking and other operating expenses |                                                                                                                                                                |                                              | 89  |          |       |          |  |          |       |          | 368 |          |     |              |  |         |     |          |  |     |    |    |  |      |       |       |  |       
|Undistributed operating expenses:       |                             |                                                     |                                                                                                                                                                |                                              |     |          |       |          |   |          |       |          |     |          |     |              |   |         |     |          |   |     |    |    |   |      |       |      
|                                        |                             |                                                     | Administrative and general                                                                                                                                     |                                              |     | 14       |       |          |   | (100     | )     |          |     | 182      |     |              |   | 3       |     |          |   | 1   |    |    |   | 4    |       |       |   | 6      |  
|                                        |                             |                                                     | Property operating costs                                                                                                                                       |                                              |     |         |       |          |   |         |       |          |     |         |     |              |   |        |     |          |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             |                                                     | Property taxes, insurance and other                                                                                                                            |                                              |     | 804      |       |          |   | 807      |       |          |     | 1,874    |     |              |   | 173     |     |          |   | 192 |    |    |   | 265  |       |       |   | 332    |  
|                                        |                             |                                                     | Depreciation and amortization                                                                                                                                  |                                              |     | 1,628    |       |          |   | 657      |       |          |     | 1,189    |     |              |   | 544     |     |          |   | 338 |    |    |   | 638  |       |       |   | 1,058  |  
|                                        |                             |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                              |     |          |       |          |   |          |       |          |     |          |     |              |   |         |     |          |   |     |    |    |   |      |       |       |   |        |  
|                                        |                             |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                              |     |         |       |          |   |         |       |          |     |         |     |              |   |        |     |          |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             |                                                     | Swap termination fees                                                                                                                                          |                                              |     |         |       |          |   |         |       |          |     |         |     |              |   |        |     |          |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                              |     |         |       |          |   |         |       |          |     |         |     |              |   |        |     |          |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             |                                                     | FelCor merger costs                                                                                                                                            |                                              |     |         |       |          |   |         |       |          |     |         |     |              |   |        |     |          |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality Corporation                                                                                                   |                                              |     |         |       |          |   |         |       |          |     |         |     |              |   |        |     |          |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             |                                                     | Restructuring charge                                                                                                                                           |                                              |     |         |       |          |   |         |       |          |     |         |     |              |   |        |     |          |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |     |          |       |          |   |          |       |          |     |          |     |              |   |         |     |          |   |     |    |    |   |      |       |       |  
|                                        |                             |                                                     | Total operating expenses                                                                                                                                       |                                              |     | 2,535    |       |          |   | 1,364    |       |          |     | 3,613    |     |              |   | 720     |     |          |   | 531 |    |    |   | 907  |       |       |   | 1,396  |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |     |          |       |          |   |          |       |          |     |          |     |              |   |         |     |          |   |     |    |    |   |      |       |       |  
|                                        |                             |                                                     | Net operating income                                                                                                                                           |                                              |     | 2,727    |       |          |   | (215     | )     |          |     | 2,591    |     |              |   | (72     | )   |          |   | 341 |    |    |   | (831 | )     |       |   | 57     |  
|                                        |                             |                                                     | Interest expense, net                                                                                                                                          |                                              |     | (29      | )     |          |   | (56      | )     |          |     | (66      | )   |              |   | (50     | )   |          |   | (5  | )  |    |   | (11  | )     |       |   | 1,338  |  
|                                        |                             |                                                     | Equity in income from consolidated entities                                                                                                                    |                                              |     |         |       |          |   |         |       |          |     |         |     |              |   |        |     |          |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |     |          |       |          |   |          |       |          |     |          |     |              |   |         |     |          |   |     |    |    |   |      |       |       |  
|                                        |                             |                                                     | Income (loss) from continuing operations before minority interests, income
tax benefit, discontinued operations, loss on sale of assets and
extraordinary loss |                                              |     | 2,756    |       |          |   | (159     | )     |          |     | 2,657    |     |              |   | (22     | )   |          |   | 346 |    |    |   | (820 | )     |       |   | (1,281 | )
|                                        |                             |                                                     | Minority interests                                                                                                                                             |                                              |     |         |       |          |   |         |       |          |     |         |     |              |   |        |     |          |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |     |          |       |          |   |          |       |          |     |          |     |              |   |         |     |          |   |     |    |    |   |      |       |       |  
|                                        |                             |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                              |     | 2,756    |       |          |   | (159     | )     |          |     | 2,657    |     |              |   | (22     | )   |          |   | 346 |    |    |   | (820 | )     |       |   | (1,281 | )
|                                        |                             |                                                     | Income tax benefit                                                                                                                                             |                                              |     |         |       |          |   |         |       |          |     |         |     |              |   |        |     |          |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |     |          |       |          |   |          |       |          |     |          |     |              |   |         |     |          |   |     |    |    |   |      |       |       |  
|                                        |                             |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                              |     | 2,756    |       |          |   | (159     | )     |          |     | 2,657    |     |              |   | (22     | )   |          |   | 346 |    |    |   | (820 | )     |       |   | (1,281 | )
|                                        |                             |                                                     | Discontinued operations:                                                                                                                                       |                                              |     |          |       |          |   |          |       |          |     |          |     |              |   |         |     |          |   |     |    |    |   |      |       |       |   |        |  
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) from operations of assets sold |     |          |      |          |   |          |      |          |     |          |    |              |   |         |    |          |   |     |   |    |   |      |      |       |   |        |  | 
|                                        |                             |                                                     |                                                                                                                                                                | Income tax benefit                           |     |          |      |          |   |          |      |          |     |          |    |              |   |         |    |          |   |     |   |    |   |      |      |       |   |        |  | 
|                                        |                             |                                                     |                                                                                                                                                                |                                              |     |          |       |          |   |          |       |          |     |          |     |              |   |         |     |          |   |     |    |    |   |      |       |       |  
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations     |     |          |      |          |   |          |      |          |     |          |    |              |   |         |    |          |   |     |   |    |   |      |      |       |   |        |  | 
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                              |     |         |       |          |   |         |       |          |     |         |     |              |   |        |     |          |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                              |     |         |       |          |   |         |       |          |     |         |     |              |   |        |     |          |   |    |    |    |   |     |       |       |   |       |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |     |          |       |          |   |          |       |          |     |          |     |              |   |         |     |          |   |     |    |    |   |      |       |       |  
|                                        |                             |                                                     | Net income (loss)                                                                                                                                              |                                              |     | 2,756    |       |          |   | (159     | )     |          |     | 2,657    |     |              |   | (22     | )   |          |   | 346 |    |    |   | (820 | )     |       |   | (1,281 | )
|                                        |                             |                                                     |                                                                                                                                                                |                                              |     |          |       |          |   |          |       |          |     |          |     |              |   |         |     |          |   |     |    |    |   |      |       |       |  



---



##### 



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

|                                        |                             |                                                     |                                                                                                                                             |                                              |   |          |       |          |   |           |       |         |   |          |       |          |   |          |       |          |   |       |       |       |   |       |       |       |   |       |       | 
|--------------------------------------- | --------------------------- | --------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------- | - | -------- | ----- | -------- | - | --------- | ----- | ------- | - | -------- | ----- | -------- | - | -------- | ----- | -------- | - | ----- | ----- | ----- | - | ----- | ----- | ----- | - | ----- | ----- | 
|                                        |                             |                                                     |                                                                                                                                             |                                              |   | MeriStar |       | MeriStar |   |           |       |         |   | MeriStar |       | MeriStar |   | MeriStar |       | MeriStar
|                                        |                             |                                                     |                                                                                                                                             |                                              |   | Sub 5H,  |       | Sub 7H,  |   | AGH PSSI, |       | Sub 2D, |   | Sub 4F,  |       | Sub 5K,  |   | Sub 5M, 
|                                        |                             |                                                     |                                                                                                                                             |                                              |   | LLC      |       | LLC      |   | Inc.      |       | LLC     |   | L.P.     |       | LLC      |   | LLC     
|                                        |                             |                                                     |                                                                                                                                             |                                              |   |          |       |          |   |           |       |         |   |          |       |          |   |         
|                                        | Revenue:                    |                                                     |                                                                                                                                             |                                              |   |          |       |          |   |           |       |         |   |          |       |          |   |          |       |          |   |       |       |       |   |       |       |       |  
|                                        | Participating lease revenue |                                                     |                                                                                                                                             | 3,881                                        |   |          |       | 926      |   |           |       | 2,624   |   |          |       | 1,147    |   |          |       | 1,803    |   |       |       | 2,128 |   |       |       | 1,895 |  
|                                        |                             | Hotel operations:                                   |                                                                                                                                             |                                              |   |          |       |          |   |           |       |         |   |          |       |          |   |          |       |          |   |       |       |       |   |       |       |       |   |      
|                                        |                             |                                                     | Rooms                                                                                                                                       |                                              |   |         |       |          |   |          |       |         |   |         |       |          |   |         |       |          |   |      |       |       |   |      |       |       |   |      |      
|                                        |                             |                                                     | Food and beverage                                                                                                                           |                                              |   |         |       |          |   |          |       |         |   |         |       |          |   |         |       |          |   |      |       |       |   |      |       |       |   |      |      
|                                        |                             |                                                     | Other operating departments                                                                                                                 |                                              |   |         |       |          |   |          |       |         |   |         |       |          |   |         |       |          |   |      |       |       |   |      |       |       |   |      |      
|                                        |                             | Office rental and other revenues                    |                                                                                                                                             |                                              |  |          |       |          |  |           |       |         | 3 |          |       |          |  |          |       |          | 4 |       |       |       |  |       |       |       |  |      
|                                        |                             |                                                     |                                                                                                                                             |                                              |   |          |       |          |   |           |       |         |   |          |       |          |   |          |       |          |   |       |       |       |   |       |       |       |  
|Total revenue                           |                             |                                                     | 3,881                                                                                                                                       |                                              |   |          | 926   |          |   |           | 2,627 |         |   |          | 1,147 |          |   |          | 1,807 |          |   |       | 2,128 |       |   |       | 1,895 |      
|                                        |                             |                                                     |                                                                                                                                             |                                              |   |          |       |          |   |           |       |         |   |          |       |          |   |          |       |          |   |       |       |       |   |       |       |       |  
|Hotel operating expenses by department: |                             |                                                     |                                                                                                                                             |                                              |   |          |       |          |   |           |       |         |   |          |       |          |   |          |       |          |   |       |       |       |   |       |       |      
|                                        |                             |                                                     | Rooms                                                                                                                                       |                                              |   |         |       |          |   |          |       |         |   |         |       |          |   |         |       |          |   |      |       |       |   |      |       |       |   |      |      
|                                        |                             |                                                     | Food and beverage                                                                                                                           |                                              |   |         |       |          |   |          |       |         |   |         |       |          |   |         |       |          |   |      |       |       |   |      |       |       |   |      |      
|                                        |                             |                                                     | Other operating departments                                                                                                                 |                                              |   |         |       |          |   |          |       |         |   |         |       |          |   |         |       |          |   |      |       |       |   |      |       |       |   |      |      
|                                        |                             | Office rental, parking and other operating expenses |                                                                                                                                             |                                              |  |          |       |          |  |           |       |         |  |          |       |          |  |          |       |          |  |       |       |       |  |       |       |       |  |      
|Undistributed operating expenses:       |                             |                                                     |                                                                                                                                             |                                              |   |          |       |          |   |           |       |         |   |          |       |          |   |          |       |          |   |       |       |       |   |       |       |      
|                                        |                             |                                                     | Administrative and general                                                                                                                  |                                              |   | 1        |       |          |   | 1         |       |         |   | 2        |       |          |   |         |       |          |   | 16    |       |       |   | 1     |       |       |   | 1     |      
|                                        |                             |                                                     | Property operating costs                                                                                                                    |                                              |   |         |       |          |   |          |       |         |   |         |       |          |   |         |       |          |   |      |       |       |   |      |       |       |   |      |      
|                                        |                             |                                                     | Property taxes, insurance and other                                                                                                         |                                              |   | 352      |       |          |   | 214       |       |         |   | 342      |       |          |   | 298      |       |          |   | 352   |       |       |   | 238   |       |       |   | 134   |      
|                                        |                             |                                                     | Depreciation and amortization                                                                                                               |                                              |   | 1,459    |       |          |   | 520       |       |         |   |         |       |          |   | 347      |       |          |   | 812   |       |       |   | 886   |       |       |   | 330   |      
|                                        |                             |                                                     | Expense for non-hedging derivatives                                                                                                         |                                              |   |          |       |          |   |           |       |         |   |          |       |          |   |          |       |          |   |       |       |       |   |       |       |       |   |       |      
|                                        |                             |                                                     | Write down of investment in STS Hotel Net                                                                                                   |                                              |   |         |       |          |   |          |       |         |   |         |       |          |   |         |       |          |   |      |       |       |   |      |       |       |   |      |      
|                                        |                             |                                                     | Swap termination fees                                                                                                                       |                                              |   |         |       |          |   |          |       |         |   |         |       |          |   |         |       |          |   |      |       |       |   |      |       |       |   |      |      
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives                                                                                               |                                              |   |         |       |          |   |          |       |         |   |         |       |          |   |         |       |          |   |      |       |       |   |      |       |       |   |      |      
|                                        |                             |                                                     | FelCor merger costs                                                                                                                         |                                              |   |         |       |          |   |          |       |         |   |         |       |          |   |         |       |          |   |      |       |       |   |      |       |       |   |      |      
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality Corporation                                                                                |                                              |   |         |       |          |   |          |       |         |   |         |       |          |   |         |       |          |   |      |       |       |   |      |       |       |   |      |      
|                                        |                             |                                                     | Restructuring charge                                                                                                                        |                                              |   |         |       |          |   |          |       |         |   |         |       |          |   |         |       |          |   |      |       |       |   |      |       |       |   |      |      
|                                        |                             |                                                     |                                                                                                                                             |                                              |   |          |       |          |   |           |       |         |   |          |       |          |   |          |       |          |   |       |       |       |   |       |       |       |  
|                                        |                             |                                                     | Total operating expenses                                                                                                                    |                                              |   | 1,812    |       |          |   | 735       |       |         |   | 344      |       |          |   | 645      |       |          |   | 1,180 |       |       |   | 1,125 |       |       |   | 465   |      
|                                        |                             |                                                     |                                                                                                                                             |                                              |   |          |       |          |   |           |       |         |   |          |       |          |   |          |       |          |   |       |       |       |   |       |       |       |  
|                                        |                             |                                                     | Net operating income                                                                                                                        |                                              |   | 2,069    |       |          |   | 191       |       |         |   | 2,283    |       |          |   | 502      |       |          |   | 627   |       |       |   | 1,003 |       |       |   | 1,430 |      
|                                        |                             |                                                     | Interest expense, net                                                                                                                       |                                              |   | (26      | )     |          |   | (22       | )     |         |   | (6       | )     |          |   | 589      |       |          |   | (23   | )     |       |   | (22   | )     |       |   | (20   | )    
|                                        |                             |                                                     | Equity in income from consolidated entities                                                                                                 |                                              |   |         |       |          |   |          |       |         |   |         |       |          |   |         |       |          |   |      |       |       |   |      |       |       |   |      |      
|                                        |                             |                                                     |                                                                                                                                             |                                              |   |          |       |          |   |           |       |         |   |          |       |          |   |          |       |          |   |       |       |       |   |       |       |       |  
|                                        |                             |                                                     | Income (loss) from continuing operations before minority interests, income
tax benefit, discontinued operations, loss on sale of assets and |                                              |   |          |       |          |   |           |       |         |   |          |       |          |   |          |       |          |   |       |       |       |   |       |       |       |   |       |      
|                                        |                             |                                                     |                                                                                                                                             | extraordinary loss                           |   |          | 2,095 |          |   |           | 213   |         |   |          | 2,289 |          |   |          | (87   | )        |   |       | 650   |       |   |       | 1,025 |       |   |       | 1,450 | 
|                                        |                             |                                                     | Minority interests                                                                                                                          |                                              |   |         |       |          |   |          |       |         |   |         |       |          |   |         |       |          |   |      |       |       |   |      |       |       |   |      |      
|                                        |                             |                                                     |                                                                                                                                             |                                              |   |          |       |          |   |           |       |         |   |          |       |          |   |          |       |          |   |       |       |       |   |       |       |       |  
|                                        |                             |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss   |                                              |   | 2,095    |       |          |   | 213       |       |         |   | 2,289    |       |          |   | (87      | )     |          |   | 650   |       |       |   | 1,025 |       |       |   | 1,450 |      
|                                        |                             |                                                     | Income tax benefit                                                                                                                          |                                              |   |         |       |          |   |          |       |         |   |         |       |          |   |         |       |          |   |      |       |       |   |      |       |       |   |      |      
|                                        |                             |                                                     |                                                                                                                                             |                                              |   |          |       |          |   |           |       |         |   |          |       |          |   |          |       |          |   |       |       |       |   |       |       |       |  
|                                        |                             |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                          |                                              |   | 2,095    |       |          |   | 213       |       |         |   | 2,289    |       |          |   | (87      | )     |          |   | 650   |       |       |   | 1,025 |       |       |   | 1,450 |      
|                                        |                             |                                                     | Discontinued operations:                                                                                                                    |                                              |   |          |       |          |   |           |       |         |   |          |       |          |   |          |       |          |   |       |       |       |   |       |       |       |   |       |      
|                                        |                             |                                                     |                                                                                                                                             | Income (loss) from operations of assets sold |   |          |      |          |   |           |      |         |   |          |      |          |   |          |      |          |   |       |      |       |   |       |      |       |   |       |      | 
|                                        |                             |                                                     |                                                                                                                                             | Income tax benefit                           |   |          |      |          |   |           |      |         |   |          |      |          |   |          |      |          |   |       |      |       |   |       |      |       |   |       |      | 
|                                        |                             |                                                     |                                                                                                                                             |                                              |   |          |       |          |   |           |       |         |   |          |       |          |   |          |       |          |   |       |       |       |   |       |       |       |  
|                                        |                             |                                                     |                                                                                                                                             | Income (loss) on discontinued operations     |   |          |      |          |   |           |      |         |   |          |      |          |   |          |      |          |   |       |      |       |   |       |      |       |   |       |      | 
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect                                                                                                   |                                              |   |         |       |          |   |          |       |         |   | (1,075   | )     |          |   |         |       |          |   |      |       |       |   |      |       |       |   |      |      
|                                        |                             |                                                     | Extraordinary loss, net of tax                                                                                                              |                                              |   |         |       |          |   |          |       |         |   |         |       |          |   |         |       |          |   |      |       |       |   |      |       |       |   |      |      
|                                        |                             |                                                     |                                                                                                                                             |                                              |   |          |       |          |   |           |       |         |   |          |       |          |   |          |       |          |   |       |       |       |   |       |       |       |  
|                                        |                             |                                                     | Net income (loss)                                                                                                                           |                                              |   | 2,095    |       |          |   | 213       |       |         |   | 1,214    |       |          |   | (87      | )     |          |   | 650   |       |       |   | 1,025 |       |       |   | 1,450 |      
|                                        |                             |                                                     |                                                                                                                                             |                                              |   |          |       |          |   |           |       |         |   |          |       |          |   |          |       |          |   |       |       |       |   |       |       |       |  





---



##### 



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



|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |    |       |       |       |    |       |       |       |    |       |   | 
|--------------------------------------- | --------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------- | - | -------- | --- | -------- | - | -------- | ----- | -------- | - | -------- | --- | -------- | - | -------- | ----- | ----- | -- | ----- | ----- | ----- | -- | ----- | ----- | ----- | -- | ----- | - | 
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   | MeriStar |     | MeriStar |   | MeriStar |       | MeriStar |   | MeriStar |     | MeriStar |   | MeriStar
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   | Sub 1E,  |     | Sub 5O,  |   | Sub 6M,  |       | Sub 4B,  |   | Sub 6C,  |     | Sub 2C,  |   | Sub 4G, 
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   | L.P.     |     | LLC      |   | Company  |       | L.P.     |   | LLC      |     | LLC      |   | L.P.    
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |     |          |   |          |       |          |   |          |     |          |   |         
|                                        | Revenue:                    |                                                     |                                                                                                                                                                |                                              |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |    |       |       |       |    |       |       |       |   
|                                        | Participating lease revenue |                                                     |                                                                                                                                                                | 1,389                                        |   |          |     | 734      |   |          |       | 3,760    |   |          |     | 165      |   |          |       | 2,394 |    |       |       | 1,468 |    |       |       | 2,457 |   
|                                        |                             | Hotel operations:                                   |                                                                                                                                                                |                                              |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |    |       |       |       |    |       |       |       |    |      
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                              |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                              |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                              |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             | Office rental and other revenues                    |                                                                                                                                                                |                                              |  |          |     |          |  |          |       |          |  |          |     |          |  |          |       |       | 10 |       |       |       | 42 |       |       |       | 12 |      
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |    |       |       |       |    |       |       |       |   
|Total revenue                           |                             |                                                     | 1,389                                                                                                                                                          |                                              |   |          | 734 |          |   |          | 3,760 |          |   |          | 165 |          |   |          | 2,404 |       |    |       | 1,510 |       |    |       | 2,469 |      
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |    |       |       |       |    |       |       |       |   
|Hotel operating expenses by department: |                             |                                                     |                                                                                                                                                                |                                              |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |    |       |       |       |    |       |       |      
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                              |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                              |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                              |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             | Office rental, parking and other operating expenses |                                                                                                                                                                |                                              |  |          |     |          |  |          |       |          |  |          |     |          |  |          |       |       |   |       |       |       |   |       |       |       |   |      
|Undistributed operating expenses:       |                             |                                                     |                                                                                                                                                                |                                              |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |    |       |       |       |    |       |       |      
|                                        |                             |                                                     | Administrative and general                                                                                                                                     |                                              |   | 1        |     |          |   | 1        |       |          |   | 1        |     |          |   | 1        |       |       |    | 1     |       |       |    |      |       |       |    | 12    |  
|                                        |                             |                                                     | Property operating costs                                                                                                                                       |                                              |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             |                                                     | Property taxes, insurance and other                                                                                                                            |                                              |   | 106      |     |          |   | 59       |       |          |   | 210      |     |          |   | 304      |       |       |    | 98    |       |       |    | 472   |       |       |    | 573   |  
|                                        |                             |                                                     | Depreciation and amortization                                                                                                                                  |                                              |   | 216      |     |          |   | 166      |       |          |   | 894      |     |          |   | 820      |       |       |    | 559   |       |       |    | 773   |       |       |    | 643   |  
|                                        |                             |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                              |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |    |       |       |       |    |       |       |       |    |       |  
|                                        |                             |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                              |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             |                                                     | Swap termination fees                                                                                                                                          |                                              |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                              |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             |                                                     | FelCor merger costs                                                                                                                                            |                                              |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality Corporation                                                                                                   |                                              |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             |                                                     | Restructuring charge                                                                                                                                           |                                              |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |    |       |       |       |    |       |       |       |   
|                                        |                             |                                                     | Total operating expenses                                                                                                                                       |                                              |   | 323      |     |          |   | 226      |       |          |   | 1,105    |     |          |   | 1,125    |       |       |    | 658   |       |       |    | 1,245 |       |       |    | 1,228 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |    |       |       |       |    |       |       |       |   
|                                        |                             |                                                     | Net operating income                                                                                                                                           |                                              |   | 1,066    |     |          |   | 508      |       |          |   | 2,655    |     |          |   | (960     | )     |       |    | 1,746 |       |       |    | 265   |       |       |    | 1,241 |  
|                                        |                             |                                                     | Interest expense, net                                                                                                                                          |                                              |   | (23      | )   |          |   | (4       | )     |          |   | (12      | )   |          |   | (57      | )     |       |    | (44   | )     |       |    | 1,014 |       |       |    | (35   | )
|                                        |                             |                                                     | Equity in income from consolidated entities                                                                                                                    |                                              |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |    |       |       |       |    |       |       |       |   
|                                        |                             |                                                     | Income (loss) from continuing operations before minority interests, income
tax benefit, discontinued operations, loss on sale of assets and extraordinary loss |                                              |   | 1,089    |     |          |   | 512      |       |          |   | 2,667    |     |          |   | (903     | )     |       |    | 1,790 |       |       |    | (749  | )     |       |    | 1,276 |  
|                                        |                             |                                                     | Minority interests                                                                                                                                             |                                              |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |    |       |       |       |    |       |       |       |   
|                                        |                             |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                              |   | 1,089    |     |          |   | 512      |       |          |   | 2,667    |     |          |   | (903     | )     |       |    | 1,790 |       |       |    | (749  | )     |       |    | 1,276 |  
|                                        |                             |                                                     | Income tax benefit                                                                                                                                             |                                              |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |    |       |       |       |    |       |       |       |   
|                                        |                             |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                              |   | 1,089    |     |          |   | 512      |       |          |   | 2,667    |     |          |   | (903     | )     |       |    | 1,790 |       |       |    | (749  | )     |       |    | 1,276 |  
|                                        |                             |                                                     | Discontinued operations:                                                                                                                                       |                                              |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |    |       |       |       |    |       |       |       |    |       |  
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) from operations of assets sold |   |          |    |          |   |          |      |          |   |          |    |          |   |          |      |       |    |       |      |       |    |       |      |       |    |       |  | 
|                                        |                             |                                                     |                                                                                                                                                                | Income tax benefit                           |   |          |    |          |   |          |      |          |   |          |    |          |   |          |      |       |    |       |      |       |    |       |      |       |    |       |  | 
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |    |       |       |       |    |       |       |       |   
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations     |   |          |    |          |   |          |      |          |   |          |    |          |   |          |      |       |    |       |      |       |    |       |      |       |    |       |  | 
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                              |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                              |   |         |     |          |   |         |       |          |   |         |     |          |   |         |       |       |    |      |       |       |    |      |       |       |    |      |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |    |       |       |       |    |       |       |       |   
|                                        |                             |                                                     | Net income (loss)                                                                                                                                              |                                              |   | 1,089    |     |          |   | 512      |       |          |   | 2,667    |     |          |   | (903     | )     |       |    | 1,790 |       |       |    | (749  | )     |       |    | 1,276 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |   |          |     |          |   |          |       |          |   |          |     |          |   |          |       |       |    |       |       |       |    |       |       |       |   





---



##### 



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



|                                        |                             |                                                     |                                                                                                                                                                |                                              |    |          |        |          |    |          |     |          |   |          |       |          |   |          |       |       |   |       |       |       |    |       |       |       |   |       |   | 
|--------------------------------------- | --------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------- | -- | -------- | ------ | -------- | -- | -------- | --- | -------- | - | -------- | ----- | -------- | - | -------- | ----- | ----- | - | ----- | ----- | ----- | -- | ----- | ----- | ----- | - | ----- | - | 
|                                        |                             |                                                     |                                                                                                                                                                |                                              |    | MeriStar |        | MeriStar |    | MeriStar |     | MeriStar |   | MeriStar |       | MeriStar |   | MeriStar
|                                        |                             |                                                     |                                                                                                                                                                |                                              |    | Sub 3B,  |        | Sub 5G,  |    | Sub 5P,  |     | Sub 5J,  |   | Sub 5Q,  |       | Sub 5A,  |   | Sub 8D, 
|                                        |                             |                                                     |                                                                                                                                                                |                                              |    | LLC      |        | L.P.     |    | LLC      |     | LLC      |   | LLC      |       | LLC      |   | LLC     
|                                        |                             |                                                     |                                                                                                                                                                |                                              |    |          |        |          |    |          |     |          |   |          |       |          |   |         
|                                        | Revenue:                    |                                                     |                                                                                                                                                                |                                              |    |          |        |          |    |          |     |          |   |          |       |          |   |          |       |       |   |       |       |       |    |       |       |       |  
|                                        | Participating lease revenue |                                                     |                                                                                                                                                                | 952                                          |    |          |        | 9,962    |    |          |     | 488      |   |          |       | 9,231    |   |          |       | 2,147 |   |       |       | 4,263 |    |       |       | 2,710 |  
|                                        |                             | Hotel operations:                                   |                                                                                                                                                                |                                              |    |          |        |          |    |          |     |          |   |          |       |          |   |          |       |       |   |       |       |       |    |       |       |       |   |      
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                              |    |         |        |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                              |    |         |        |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                              |    |         |        |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             | Office rental and other revenues                    |                                                                                                                                                                |                                              | 10 |          |        |          | 45 |          |     |          |  |          |       |          |  |          |       |       |  |       |       |       | 66 |       |       |       |  |      
|                                        |                             |                                                     |                                                                                                                                                                |                                              |    |          |        |          |    |          |     |          |   |          |       |          |   |          |       |       |   |       |       |       |    |       |       |       |  
|Total revenue                           |                             |                                                     | 962                                                                                                                                                            |                                              |    |          | 10,007 |          |    |          | 488 |          |   |          | 9,231 |          |   |          | 2,147 |       |   |       | 4,329 |       |    |       | 2,710 |      
|                                        |                             |                                                     |                                                                                                                                                                |                                              |    |          |        |          |    |          |     |          |   |          |       |          |   |          |       |       |   |       |       |       |    |       |       |       |  
|Hotel operating expenses by department: |                             |                                                     |                                                                                                                                                                |                                              |    |          |        |          |    |          |     |          |   |          |       |          |   |          |       |       |   |       |       |       |    |       |       |      
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                              |    |         |        |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                              |    |         |        |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                              |    |         |        |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             | Office rental, parking and other operating expenses |                                                                                                                                                                |                                              |   |          |        |          |   |          |     |          |  |          |       |          |  |          |       |       |  |       |       |       |   |       |       |       |  |      
|Undistributed operating expenses:       |                             |                                                     |                                                                                                                                                                |                                              |    |          |        |          |    |          |     |          |   |          |       |          |   |          |       |       |   |       |       |       |    |       |       |      
|                                        |                             |                                                     | Administrative and general                                                                                                                                     |                                              |    | 1        |        |          |    | 6        |     |          |   |         |       |          |   | 2        |       |       |   |      |       |       |    | 2     |       |       |   | 26    |  
|                                        |                             |                                                     | Property operating costs                                                                                                                                       |                                              |    |         |        |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             |                                                     | Property taxes, insurance and other                                                                                                                            |                                              |    | 243      |        |          |    | 1,183    |     |          |   | 10       |       |          |   | 611      |       |       |   |      |       |       |    | 403   |       |       |   | 254   |  
|                                        |                             |                                                     | Depreciation and amortization                                                                                                                                  |                                              |    | 661      |        |          |    | 4,620    |     |          |   |         |       |          |   | 2,522    |       |       |   | 307   |       |       |    | 1,248 |       |       |   | 934   |  
|                                        |                             |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                              |    |          |        |          |    |          |     |          |   |          |       |          |   |          |       |       |   |       |       |       |    |       |       |       |   |       |  
|                                        |                             |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                              |    |         |        |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             |                                                     | Swap termination fees                                                                                                                                          |                                              |    |         |        |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                              |    |         |        |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             |                                                     | FelCor merger costs                                                                                                                                            |                                              |    |         |        |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality Corporation                                                                                                   |                                              |    |         |        |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             |                                                     | Restructuring charge                                                                                                                                           |                                              |    |         |        |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |    |          |        |          |    |          |     |          |   |          |       |          |   |          |       |       |   |       |       |       |    |       |       |       |  
|                                        |                             |                                                     | Total operating expenses                                                                                                                                       |                                              |    | 905      |        |          |    | 5,809    |     |          |   | 10       |       |          |   | 3,135    |       |       |   | 307   |       |       |    | 1,653 |       |       |   | 1,214 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |    |          |        |          |    |          |     |          |   |          |       |          |   |          |       |       |   |       |       |       |    |       |       |       |  
|                                        |                             |                                                     | Net operating income                                                                                                                                           |                                              |    | 57       |        |          |    | 4,198    |     |          |   | 478      |       |          |   | 6,096    |       |       |   | 1,840 |       |       |    | 2,676 |       |       |   | 1,496 |  
|                                        |                             |                                                     | Interest expense, net                                                                                                                                          |                                              |    | (21      | )      |          |    | (29      | )   |          |   |         |       |          |   | (76      | )     |       |   | (80   | )     |       |    | 2,096 |       |       |   | (20   | )
|                                        |                             |                                                     | Equity in income from consolidated entities                                                                                                                    |                                              |    |         |        |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |    |          |        |          |    |          |     |          |   |          |       |          |   |          |       |       |   |       |       |       |    |       |       |       |  
|                                        |                             |                                                     | Income (loss) from continuing operations before minority interests, income
tax benefit, discontinued operations, loss on sale of assets and extraordinary loss |                                              |    | 78       |        |          |    | 4,227    |     |          |   | 478      |       |          |   | 6,172    |       |       |   | 1,920 |       |       |    | 580   |       |       |   | 1,516 |  
|                                        |                             |                                                     | Minority interests                                                                                                                                             |                                              |    |         |        |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |    |          |        |          |    |          |     |          |   |          |       |          |   |          |       |       |   |       |       |       |    |       |       |       |  
|                                        |                             |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                              |    | 78       |        |          |    | 4,227    |     |          |   | 478      |       |          |   | 6,172    |       |       |   | 1,920 |       |       |    | 580   |       |       |   | 1,516 |  
|                                        |                             |                                                     | Income tax benefit                                                                                                                                             |                                              |    |         |        |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |    |          |        |          |    |          |     |          |   |          |       |          |   |          |       |       |   |       |       |       |    |       |       |       |  
|                                        |                             |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                              |    | 78       |        |          |    | 4,227    |     |          |   | 478      |       |          |   | 6,172    |       |       |   | 1,920 |       |       |    | 580   |       |       |   | 1,516 |  
|                                        |                             |                                                     | Discontinued operations:                                                                                                                                       |                                              |    |          |        |          |    |          |     |          |   |          |       |          |   |          |       |       |   |       |       |       |    |       |       |       |   |       |  
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) from operations of assets sold |    |          |       |          |    |          |    |          |   |          |      |          |   |          |      |       |   |       |      |       |    |       |      |       |   |       |  | 
|                                        |                             |                                                     |                                                                                                                                                                | Income tax benefit                           |    |          |       |          |    |          |    |          |   |          |      |          |   |          |      |       |   |       |      |       |    |       |      |       |   |       |  | 
|                                        |                             |                                                     |                                                                                                                                                                |                                              |    |          |        |          |    |          |     |          |   |          |       |          |   |          |       |       |   |       |       |       |    |       |       |       |  
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations     |    |          |       |          |    |          |    |          |   |          |      |          |   |          |      |       |   |       |      |       |    |       |      |       |   |       |  | 
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                              |    |         |        |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                              |    |         |        |          |    |         |     |          |   |         |       |          |   |         |       |       |   |      |       |       |    |      |       |       |   |      |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |    |          |        |          |    |          |     |          |   |          |       |          |   |          |       |       |   |       |       |       |    |       |       |       |  
|                                        |                             |                                                     | Net income (loss)                                                                                                                                              |                                              |    | 78       |        |          |    | 4,227    |     |          |   | 478      |       |          |   | 6,172    |       |       |   | 1,920 |       |       |    | 580   |       |       |   | 1,516 |  
|                                        |                             |                                                     |                                                                                                                                                                |                                              |    |          |        |          |    |          |     |          |   |          |       |          |   |          |       |       |   |       |       |       |    |       |       |       |  



---



##### 



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

|                                        |                             |                                                     |                                                                                                                                                                |                                              |     |          |         |              |   |              |          |              |   |          |         |       |        |         |       | 
|--------------------------------------- | --------------------------- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------- | --- | -------- | ------- | ------------ | - | ------------ | -------- | ------------ | - | -------- | ------- | ----- | ------ | ------- | ----- | 
|                                        |                             |                                                     |                                                                                                                                                                |                                              |     | MeriStar |         | MeriStar     |   |              |          |              |   |          |         |      
|                                        |                             |                                                     |                                                                                                                                                                |                                              |     | Sub 4J,  |         | Hotel        |   |              |          |              |   | Total   
|                                        |                             |                                                     |                                                                                                                                                                |                                              |     | LLC      |         | Lessee, Inc. |   | Eliminations |          | Consolidated
|                                        |                             |                                                     |                                                                                                                                                                |                                              |     |          |         |              |   |              |          |             
|                                        | Revenue:                    |                                                     |                                                                                                                                                                |                                              |     |          |         |              |   |              |          |              |   |          |         |       |       
|                                        | Participating lease revenue |                                                     |                                                                                                                                                                | 2,146                                        |     |          |         |             |   |              |          | (247,035     | ) |          |         | 8,146 |       
|                                        |                             | Hotel operations:                                   |                                                                                                                                                                |                                              |     |          |         |              |   |              |          |              |   |          |         |       |        |        
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                              |     |         |         |              |   | 562,497      |          |              |   |         |         |       |        | 562,497 |      
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                              |     |         |         |              |   | 200,273      |          |              |   |         |         |       |        | 200,273 |      
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                              |     |         |         |              |   | 66,129       |          |              |   |         |         |       |        | 64,511  |      
|                                        |                             | Office rental and other revenues                    |                                                                                                                                                                |                                              | 208 |          |         |              |  |              |          |              |  |          |         |       | 12,183 |        
|                                        |                             |                                                     |                                                                                                                                                                |                                              |     |          |         |              |   |              |          |              |   |          |         |       |       
|Total revenue                           |                             |                                                     | 2,354                                                                                                                                                          |                                              |     |          | 828,899 |              |   |              | (247,035 | )            |   |          | 847,610 |      
|                                        |                             |                                                     |                                                                                                                                                                |                                              |     |          |         |              |   |              |          |              |   |          |         |       |       
|Hotel operating expenses by department: |                             |                                                     |                                                                                                                                                                |                                              |     |          |         |              |   |              |          |              |   |          |         |      
|                                        |                             |                                                     | Rooms                                                                                                                                                          |                                              |     |         |         |              |   | 134,225      |          |              |   |         |         |       |        | 134,225 |      
|                                        |                             |                                                     | Food and beverage                                                                                                                                              |                                              |     |         |         |              |   | 147,320      |          |              |   |         |         |       |        | 147,320 |      
|                                        |                             |                                                     | Other operating departments                                                                                                                                    |                                              |     |         |         |              |   | 33,845       |          |              |   |         |         |       |        | 33,845  |      
|                                        |                             | Office rental, parking and other operating expenses |                                                                                                                                                                |                                              | 412 |          |         |              |  |              |          |              |  |          |         |       | 2,444  |        
|Undistributed operating expenses:       |                             |                                                     |                                                                                                                                                                |                                              |     |          |         |              |   |              |          |              |   |          |         |      
|                                        |                             |                                                     | Administrative and general                                                                                                                                     |                                              |     | 5        |         |              |   | 121,527      |          |              |   |         |         |       |        | 126,774 |      
|                                        |                             |                                                     | Property operating costs                                                                                                                                       |                                              |     |         |         |              |   | 124,812      |          |              |   |         |         |       |        | 124,812 |      
|                                        |                             |                                                     | Property taxes, insurance and other                                                                                                                            |                                              |     | 131      |         |              |   | 268,734      |          |              |   | (247,035 | )       |       |        | 57,158  |      
|                                        |                             |                                                     | Depreciation and amortization                                                                                                                                  |                                              |     | 943      |         |              |   | 161          |          |              |   |         |         |       |        | 85,594  |      
|                                        |                             |                                                     | Expense for non-hedging derivatives                                                                                                                            |                                              |     |          |         |              |   |              |          |              |   |          |         |       |        |        |      
|                                        |                             |                                                     | Write down of investment in STS Hotel Net                                                                                                                      |                                              |     |         |         |              |   |             |          |              |   |         |         |       |        | 2,112   |      
|                                        |                             |                                                     | Swap termination fees                                                                                                                                          |                                              |     |         |         |              |   |             |          |              |   |         |         |       |        | 9,297   |      
|                                        |                             |                                                     | Loss on fair value of non-hedging derivatives                                                                                                                  |                                              |     |         |         |              |   |             |          |              |   |         |         |       |        |        |      
|                                        |                             |                                                     | FelCor merger costs                                                                                                                                            |                                              |     |         |         |              |   |             |          |              |   |         |         |       |        | 5,817   |      
|                                        |                             |                                                     | Costs to terminate leases with Prime Hospitality Corporation                                                                                                   |                                              |     |         |         |              |   |             |          |              |   |         |         |       |        | 1,315   |      
|                                        |                             |                                                     | Restructuring charge                                                                                                                                           |                                              |     |         |         |              |   |             |          |              |   |         |         |       |        | 1,080   |      
|                                        |                             |                                                     |                                                                                                                                                                |                                              |     |          |         |              |   |              |          |              |   |          |         |       |       
|                                        |                             |                                                     | Total operating expenses                                                                                                                                       |                                              |     | 1,491    |         |              |   | 830,624      |          |              |   | (247,035 | )       |       |        | 731,793 |      
|                                        |                             |                                                     |                                                                                                                                                                |                                              |     |          |         |              |   |              |          |              |   |          |         |       |       
|                                        |                             |                                                     | Net operating income                                                                                                                                           |                                              |     | 863      |         |              |   | (1,725       | )        |              |   |         |         |       |        | 115,817 |      
|                                        |                             |                                                     | Interest expense, net                                                                                                                                          |                                              |     | (66      | )       |              |   | 53           |          |              |   |         |         |       |        | 91,661  |      
|                                        |                             |                                                     | Equity in income from consolidated entities                                                                                                                    |                                              |     |         |         |              |   |             |          |              |   | 116,073  |         |       |        |        |      
|                                        |                             |                                                     |                                                                                                                                                                |                                              |     |          |         |              |   |              |          |              |   |          |         |       |       
|                                        |                             |                                                     | Income (loss) from continuing operations before minority interests, income
tax benefit, discontinued operations, loss on sale of assets and extraordinary loss |                                              |     | 929      |         |              |   | (1,778       | )        |              |   | (116,073 | )       |       |        | 24,156  |      
|                                        |                             |                                                     | Minority interests                                                                                                                                             |                                              |     |         |         |              |   |             |          |              |   |         |         |       |        | (16     | )    
|                                        |                             |                                                     |                                                                                                                                                                |                                              |     |          |         |              |   |              |          |              |   |          |         |       |       
|                                        |                             |                                                     | Income (loss) from continuing operating before income tax benefit,
discontinued operations, loss on sale of assets and extraordinary loss                      |                                              |     | 929      |         |              |   | (1,778       | )        |              |   | (116,073 | )       |       |        | 24,172  |      
|                                        |                             |                                                     | Income tax benefit                                                                                                                                             |                                              |     |         |         |              |   |             |          |              |   |         |         |       |        | 721     |      
|                                        |                             |                                                     |                                                                                                                                                                |                                              |     |          |         |              |   |              |          |              |   |          |         |       |       
|                                        |                             |                                                     | Income (loss) from continuing operations before discontinued operations
and loss on sale of assets                                                             |                                              |     | 929      |         |              |   | (1,778       | )        |              |   | (116,073 | )       |       |        | 23,451  |      
|                                        |                             |                                                     | Discontinued operations:                                                                                                                                       |                                              |     |          |         |              |   |              |          |              |   |          |         |       |        |         |      
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) from operations of assets sold |     |          |        |              |   |              | 52       |              |   |          |        |       |        |         | 2,264 | 
|                                        |                             |                                                     |                                                                                                                                                                | Income tax benefit                           |     |          |        |              |   |              |         |              |   |          |        |       |        |         |      | 
|                                        |                             |                                                     |                                                                                                                                                                |                                              |     |          |         |              |   |              |          |              |   |          |         |       |       
|                                        |                             |                                                     |                                                                                                                                                                | Income (loss) on discontinued operations     |     |          |        |              |   |              | 52       |              |   |          |        |       |        |         | 2,264 | 
|                                        |                             |                                                     | Loss on sale of assets, net of tax effect                                                                                                                      |                                              |     |         |         |              |   |             |          |              |   |         |         |       |        | (2,137  | )    
|                                        |                             |                                                     | Extraordinary loss, net of tax                                                                                                                                 |                                              |     |         |         |              |   |             |          |              |   |         |         |       |        | (1,226  | )    
|                                        |                             |                                                     |                                                                                                                                                                |                                              |     |          |         |              |   |              |          |              |   |          |         |       |       
|                                        |                             |                                                     | Net income (loss)                                                                                                                                              |                                              |     | 929      |         |              |   | (1,726       | )        |              |   | (116,073 | )       |       |        | 22,352  |      
|                                        |                             |                                                     |                                                                                                                                                                |                                              |     |          |         |              |   |              |          |              |   |          |         |       |       





---



##### 



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



|                                               |                                                                                                    |                                                                       |                                                          |          |                 |         |               |         |              |         |             |   |              |   |              |   |              |   |   |     |    |      |   |     |     |        |   |        |     |        |  
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------- | -------------------------------------------------------- | -------- | --------------- | ------- | ------------- | ------- | ------------ | ------- | ----------- | - | ------------ | - | ------------ | - | ------------ | - | - | --- | -- | ---- | - | --- | --- | ------ | - | ------ | --- | ------ | -
|                                               |                                                                                                    |                                                                       |                                                          |          | MeriStar        |         |               |         |              |         |             |   |              |   |              |   |              |   |   |     |    |      |   |     |     |        |   |        |    
|                                               |                                                                                                    |                                                                       |                                                          |          | Hospitality OP, |         | Non-Guarantor |         | MeriStar Sub |         | AGH Upreit, |   | MeriStar Sub |   | MeriStar Sub |   | MeriStar    
|                                               |                                                                                                    |                                                                       |                                                          |          | L.P.            |         | Subsidiaries  |         | 7C, LLC      |         | LLC         |   | 5N, LLC      |   | 8A, LLC      |   | Sub 8F, L.P.
|                                               |                                                                                                    |                                                                       |                                                          |          |                 |         |               |         |              |         |             |   |              |   |              |   |             
|Cash flows from operating activities:          |                                                                                                    |                                                                       |                                                          |          |                 |         |               |         |              |         |             |   |              |   |              |   |              |   |   |     |    |      |   |     |     |        |   |       
|                                               | Net income (loss)                                                                                  |                                                                       |                                                          | 22,352   |                 |         |               | 56,173  |              |         |             |  |              |   |              |  |              |   |   | 778 |    |      |   | 923 |     |        |   | 1,536  |    
|                                               | Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities: |                                                                       |                                                          |          |                 |         |               |        |              |         |             |   |              |   |              |   |              |   |   |     |    |      |   |     |     |        |   |        |    
|                                               |                                                                                                    | Depreciation and amortization                                         |                                                          |          | 4,412           |         |               |         | 39,040       |         |             |   |             |   |              |   |             |   |   |     | 96 |      |   |     | 218 |        |   |        | 329 |       
|                                               |                                                                                                    | Equity in earnings                                                    |                                                          |          | (116,073        | )       |               |         |              |         |             |   |              |   |              |   |              |   |   |     |    |      |   |     |     |        |   |        |     |       
|                                               |                                                                                                    | Loss on sale of assets, net of tax                                    |                                                          |          |                |         |               |         |             |         |             |   |             |   |              |   |             |   |   |     |   |      |   |     |    |        |   |        |    |       
|                                               |                                                                                                    | Write down of investment in STS Hotel Net                             |                                                          |          | 2,112           |         |               |         |             |         |             |   |             |   |              |   |             |   |   |     |   |      |   |     |    |        |   |        |    |       
|                                               |                                                                                                    | Extraordinary loss on early extinguishment of debt, before tax effect |                                                          |          | 1,243           |         |               |         |             |         |             |   |             |   |              |   |             |   |   |     |   |      |   |     |    |        |   |        |    |       
|                                               |                                                                                                    | Minority interests                                                    |                                                          |          | (16             | )       |               |         |             |         |             |   |             |   |              |   |             |   |   |     |   |      |   |     |    |        |   |        |    |       
|                                               |                                                                                                    | Amortization of unearned stock based compensation                     |                                                          |          | 2,628           |         |               |         |             |         |             |   |             |   |              |   |             |   |   |     |   |      |   |     |    |        |   |        |    |       
|                                               |                                                                                                    | Interest rate swaps marked to fair value                              |                                                          |          |                |         |               |         |             |         |             |   |             |   |              |   |             |   |   |     |   |      |   |     |    |        |   |        |    |       
|                                               |                                                                                                    | Deferred income taxes                                                 |                                                          |          | (359            | )       |               |         |             |         |             |   |             |   |              |   |             |   |   |     |   |      |   |     |    |        |   |        |    |       
|                                               |                                                                                                    | Changes in operating assets and liabilities:                          |                                                          |          |                 |         |               |         |              |         |             |   |              |   |              |   |              |   |   |     |    |      |   |     |     |        |   |        |     |       
|                                               |                                                                                                    |                                                                       | Accounts receivable, net                                 |          |                 | 442     |               |         |              | 192     |             |   |              |  |              |   |              |  |   |     |    |     |   |     |     |       |   |        |     | 150    |  
|                                               |                                                                                                    |                                                                       | Prepaid expenses and other                               |          |                 | (5,727  | )             |         |              | (212    | )           |   |              |  |              |   |              |  |   |     |    |     |   |     |     |       |   |        |     | (6     | )
|                                               |                                                                                                    |                                                                       | Due from/to MeriStar Hotels                              |          |                 | 417     |               |         |              | 2,165   |             |   |              |  |              |   |              |  |   |     |    | 14   |   |     |     |       |   |        |     |       |  
|                                               |                                                                                                    |                                                                       | Accounts payable, accrued expenses and other liabilities |          |                 | (6,346  | )             |         |              | (5,216  | )           |   |              |  |              |   |              |  |   |     |    | 34   |   |     |     | (10    | ) |        |     | 9      |  
|                                               |                                                                                                    |                                                                       | Accrued interest                                         |          |                 | 3,488   |               |         |              | (469    | )           |   |              |  |              |   |              |  |   |     |    |     |   |     |     |       |   |        |     | (14    | )
|                                               |                                                                                                    |                                                                       | Due from subsidiaries                                    |          |                 | 162,230 |               |         |              | (71,816 | )           |   |              |  |              |   |              |  |   |     |    | (873 | ) |     |     | (1,059 | ) |        |     | 1,626  |  
|                                               |                                                                                                    |                                                                       | Income taxes payable                                     |          |                 | 233     |               |         |              |        |             |   |              |  |              |   |              |  |   |     |    |     |   |     |     |       |   |        |     |       |  
|                                               |                                                                                                    |                                                                       |                                                          |          |                 |         |               |         |              |         |             |   |              |   |              |   |              |   |   |     |    |      |   |     |     |        |   |        |    
|                                               |                                                                                                    |                                                                       | Net cash provided by (used in) operating activities      |          |                 | 71,036  |               |         |              | 19,857  |             |   |              |  |              |   |              |  |   |     |    | 49   |   |     |     | 72     |   |        |     | 3,630  |  
|                                               |                                                                                                    |                                                                       |                                                          |          |                 |         |               |         |              |         |             |   |              |   |              |   |              |   |   |     |    |      |   |     |     |        |   |        |    
|Cash flows from investing activities:          |                                                                                                    |                                                                       |                                                          |          |                 |         |               |         |              |         |             |   |              |   |              |   |              |   |   |     |    |      |   |     |     |        |   |       
|                                               | Investment in hotel properties, net                                                                |                                                                       |                                                          | (3,465   | )               |         |               | (14,229 | )            |         |             |  |              |   |              |  |              |   |   | (49 | )  |      |   | (72 | )   |        |   | (139   | )  
|                                               | Proceeds from disposition of assets                                                                |                                                                       |                                                          |         |                 |         |               |        |              |         |             |  |              |   |              |  |              |   |   |    |    |      |   |    |     |        |   |       |    
|                                               | Hotel operating cash received in connection with lease conversions                                 |                                                                       |                                                          |          |                 |         |               |         |              |         |             |   |              |   |              |   |              |   |   |     |    |      |   |     |     |        |   |        |    
|                                               | Note receivable to MeriStar Hotels                                                                 |                                                                       |                                                          | (36,000  | )               |         |               |        |              |         |             |  |              |   |              |  |              |   |   |    |    |      |   |    |     |        |   |       |    
|                                               | Change in restricted cash                                                                          |                                                                       |                                                          | (908     | )               |         |               | (2,321  | )            |         |             |  |              |   |              |  |              |   |   |    |    |      |   |    |     |        |   | 488    |    
|                                               |                                                                                                    |                                                                       |                                                          |          |                 |         |               |         |              |         |             |   |              |   |              |   |              |   |   |     |    |      |   |     |     |        |   |        |    
|                                               |                                                                                                    |                                                                       | Net cash provided by (used in) investing activities      |          |                 | (40,393 | )             |         |              | (16,550 | )           |   |              |  |              |   |              |  |   |     |    | (49  | ) |     |     | (72    | ) |        |     | 349    |  
|                                               |                                                                                                    |                                                                       |                                                          |          |                 |         |               |         |              |         |             |   |              |   |              |   |              |   |   |     |    |      |   |     |     |        |   |        |    
|Cash flows from financing activities:          |                                                                                                    |                                                                       |                                                          |          |                 |         |               |         |              |         |             |   |              |   |              |   |              |   |   |     |    |      |   |     |     |        |   |       
|                                               | Deferred financing costs                                                                           |                                                                       |                                                          | (11,072  | )               |         |               |        |              |         |             |  |              |   |              |  |              |   |   |    |    |      |   |    |     |        |   |       |    
|                                               | Proceeds from issuances of mortgages and notes payable                                             |                                                                       |                                                          | 684,710  |                 |         |               |        |              |         |             |  |              |   |              |  |              |   |   |    |    |      |   |    |     |        |   |       |    
|                                               | Principal payments on mortgages and notes payable                                                  |                                                                       |                                                          | (600,863 | )               |         |               | (3,307  | )            |         |             |  |              |   |              |  |              |   |   |    |    |      |   |    |     |        |   | (3,979 | )  
|                                               | Repurchase of units                                                                                |                                                                       |                                                          | (4,028   | )               |         |               |        |              |         |             |  |              |   |              |  |              |   |   |    |    |      |   |    |     |        |   |       |    
|                                               | Contributions from partners                                                                        |                                                                       |                                                          | 2,157    |                 |         |               |        |              |         |             |  |              |   |              |  |              |   |   |    |    |      |   |    |     |        |   |       |    
|                                               | Distributions paid to partners                                                                     |                                                                       |                                                          | (75,950  | )               |         |               |        |              |         |             |  |              |   |              |  |              |   |   |    |    |      |   |    |     |        |   |       |    
|                                               |                                                                                                    |                                                                       |                                                          |          |                 |         |               |         |              |         |             |   |              |   |              |   |              |   |   |     |    |      |   |     |     |        |   |        |    
|                                               |                                                                                                    |                                                                       | Net cash used in financing activities                    |          |                 | (5,046  | )             |         |              | (3,307  | )           |   |              |  |              |   |              |  |   |     |    |     |   |     |     |       |   |        |     | (3,979 | )
|                                               |                                                                                                    |                                                                       |                                                          |          |                 |         |               |         |              |         |             |   |              |   |              |   |              |   |   |     |    |      |   |     |     |        |   |        |    
|Effect of exchange rate changes on cash        |                                                                                                    |                                                                       | 245                                                      |          |                 |         |              |         |              |         |            |   |              |   |             |   |              |   |  |     |    |      |  |     |     |        |  |       
|                                               |                                                                                                    |                                                                       |                                                          |          |                 |         |               |         |              |         |             |   |              |   |              |   |              |   |   |     |    |      |   |     |     |        |   |        |    
|Net change in cash                             |                                                                                                    |                                                                       | 25,862                                                   |          |                 |         |              |         |              |         |            |   |              |   |             |   |              |   |  |     |    |      |  |     |     |        |  |       
|Cash and cash equivalents, beginning of period |                                                                                                    |                                                                       | 242                                                      |          |                 |         |              |         |              |         |            |   |              |   |             |   |              |   |  |     |    |      |  |     |     |        |  |       
|                                               |                                                                                                    |                                                                       |                                                          |          |                 |         |               |         |              |         |             |   |              |   |              |   |              |   |   |     |    |      |   |     |     |        |   |        |    
|Cash and cash equivalents, end of period       |                                                                                                    |                                                                       | 26,104                                                   |          |                 |         |              |         |              |         |            |   |              |   |             |   |              |   |  |     |    |      |  |     |     |        |  |       
|                                               |                                                                                                    |                                                                       |                                                          |          |                 |         |               |         |              |         |             |   |              |   |              |   |              |   |   |     |    |      |   |     |     |        |   |        |    





---



##### 



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



|                                               |                                                                                                    |                                                                       |                                                          |   |          |   |              |     |              |        |              |       |              |        |              |      |              |      |   |       |     |        |   |     |     |      |   |      |    |      |  
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------- | -------------------------------------------------------- | - | -------- | - | ------------ | --- | ------------ | ------ | ------------ | ----- | ------------ | ------ | ------------ | ---- | ------------ | ---- | - | ----- | --- | ------ | - | --- | --- | ---- | - | ---- | -- | ---- | -
|                                               |                                                                                                    |                                                                       |                                                          |   | MeriStar |   | MeriStar Sub |     | MeriStar Sub |        | MeriStar Sub |       | MeriStar Sub |        | MeriStar Sub |      | MeriStar Sub
|                                               |                                                                                                    |                                                                       |                                                          |   | 8G, LLC  |   | 6H, L.P.     |     | 8B, LLC      |        | 1C, L.P.     |       | 8E, LLC      |        | 7F, LLC      |      | 5L, LLC     
|                                               |                                                                                                    |                                                                       |                                                          |   |          |   |              |     |              |        |              |       |              |        |              |      |             
|Cash flows from operating activities:          |                                                                                                    |                                                                       |                                                          |   |          |   |              |     |              |        |              |       |              |        |              |      |              |      |   |       |     |        |   |     |     |      |   |     
|                                               | Net income (loss)                                                                                  |                                                                       |                                                          |  |          |   |              | 753 |              |        |              | 3,968 |              |        |              | (130 | )            |      |   | 1,072 |     |        |   | 381 |     |      |   | 943  |   
|                                               | Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities: |                                                                       |                                                          |   |          |   |              |     |              |        |              |       |              |        |              |      |              |      |   |       |     |        |   |     |     |      |   |      |   
|                                               |                                                                                                    | Depreciation and amortization                                         |                                                          |   |         |   |              |     | 318          |        |              |       | 1,743        |        |              |      | 757          |      |   |       | 403 |        |   |     | 345 |      |   |      | 92 |     
|                                               |                                                                                                    | Equity in earnings                                                    |                                                          |   |          |   |              |     |              |        |              |       |              |        |              |      |              |      |   |       |     |        |   |     |     |      |   |      |    |     
|                                               |                                                                                                    | Loss on sale of assets, net of tax                                    |                                                          |   |         |   |              |     |             |        |              |       |             |        |              |      |             |      |   |       |    |        |   |     |    |      |   |      |   |     
|                                               |                                                                                                    | Write down of investment in STS Hotel Net                             |                                                          |   |         |   |              |     |             |        |              |       |             |        |              |      |             |      |   |       |    |        |   |     |    |      |   |      |   |     
|                                               |                                                                                                    | Extraordinary loss on early extinguishment of debt, before tax effect |                                                          |   |         |   |              |     |             |        |              |       |             |        |              |      |             |      |   |       |    |        |   |     |    |      |   |      |   |     
|                                               |                                                                                                    | Minority interests                                                    |                                                          |   |         |   |              |     |             |        |              |       |             |        |              |      |             |      |   |       |    |        |   |     |    |      |   |      |   |     
|                                               |                                                                                                    | Amortization of unearned stock based compensation                     |                                                          |   |         |   |              |     |             |        |              |       |             |        |              |      |             |      |   |       |    |        |   |     |    |      |   |      |   |     
|                                               |                                                                                                    | Interest rate swaps marked to fair value                              |                                                          |   |         |   |              |     |             |        |              |       |             |        |              |      |             |      |   |       |    |        |   |     |    |      |   |      |   |     
|                                               |                                                                                                    | Deferred income taxes                                                 |                                                          |   |         |   |              |     |             |        |              |       |             |        |              |      |             |      |   |       |    |        |   |     |    |      |   |      |   |     
|                                               |                                                                                                    | Changes in operating assets and liabilities:                          |                                                          |   |          |   |              |     |              |        |              |       |              |        |              |      |              |      |   |       |     |        |   |     |     |      |   |      |    |     
|                                               |                                                                                                    |                                                                       | Accounts receivable, net                                 |   |          |  |              |     |              | (7     | )            |       |              | 184    |              |      |              | (4   | ) |       |     | 62     |   |     |     | (26  | ) |      |    |     |  
|                                               |                                                                                                    |                                                                       | Prepaid expenses and other                               |   |          |  |              |     |              |       |              |       |              | (11    | )            |      |              |     |   |       |     |       |   |     |     |     |   |      |    |     |  
|                                               |                                                                                                    |                                                                       | Due from/to MeriStar Hotels                              |   |          |  |              |     |              |       |              |       |              | 120    |              |      |              | 1    |   |       |     |       |   |     |     | (2   | ) |      |    | 32   |  
|                                               |                                                                                                    |                                                                       | Accounts payable, accrued expenses and other liabilities |   |          |  |              |     |              | (20    | )            |       |              | 106    |              |      |              | 31   |   |       |     | (66    | ) |     |     | 64   |   |      |    | 14   |  
|                                               |                                                                                                    |                                                                       | Accrued interest                                         |   |          |  |              |     |              |       |              |       |              |       |              |      |              |     |   |       |     |       |   |     |     |     |   |      |    |     |  
|                                               |                                                                                                    |                                                                       | Due from subsidiaries                                    |   |          |  |              |     |              | (1,025 | )            |       |              | (5,715 | )            |      |              | (302 | ) |       |     | (1,367 | ) |     |     | (664 | ) |      |    | (975 | )
|                                               |                                                                                                    |                                                                       | Income taxes payable                                     |   |          |  |              |     |              |       |              |       |              |       |              |      |              |     |   |       |     |       |   |     |     |     |   |      |    |     |  
|                                               |                                                                                                    |                                                                       |                                                          |   |          |   |              |     |              |        |              |       |              |        |              |      |              |      |   |       |     |        |   |     |     |      |   |      |   
|                                               |                                                                                                    |                                                                       | Net cash provided by (used in) operating activities      |   |          |  |              |     |              | 19     |              |       |              | 395    |              |      |              | 353  |   |       |     | 104    |   |     |     | 98   |   |      |    | 106  |  
|                                               |                                                                                                    |                                                                       |                                                          |   |          |   |              |     |              |        |              |       |              |        |              |      |              |      |   |       |     |        |   |     |     |      |   |      |   
|Cash flows from investing activities:          |                                                                                                    |                                                                       |                                                          |   |          |   |              |     |              |        |              |       |              |        |              |      |              |      |   |       |     |        |   |     |     |      |   |     
|                                               | Investment in hotel properties, net                                                                |                                                                       |                                                          |  |          |   |              | (19 | )            |        |              | (395  | )            |        |              | (353 | )            |      |   | (104  | )   |        |   | (98 | )   |      |   | (106 | ) 
|                                               | Proceeds from disposition of assets                                                                |                                                                       |                                                          |  |          |   |              |    |              |        |              |      |              |        |              |     |              |      |   |      |     |        |   |    |     |      |   |     |   
|                                               | Hotel operating cash received in connection with lease conversions                                 |                                                                       |                                                          |   |          |   |              |     |              |        |              |       |              |        |              |      |              |      |   |       |     |        |   |     |     |      |   |      |   
|                                               | Note receivable to MeriStar Hotels                                                                 |                                                                       |                                                          |  |          |   |              |    |              |        |              |      |              |        |              |     |              |      |   |      |     |        |   |    |     |      |   |     |   
|                                               | Change in restricted cash                                                                          |                                                                       |                                                          |  |          |   |              |    |              |        |              |      |              |        |              |     |              |      |   |      |     |        |   |    |     |      |   |     |   
|                                               |                                                                                                    |                                                                       |                                                          |   |          |   |              |     |              |        |              |       |              |        |              |      |              |      |   |       |     |        |   |     |     |      |   |      |   
|                                               |                                                                                                    |                                                                       | Net cash provided by (used in) investing activities      |   |          |  |              |     |              | (19    | )            |       |              | (395   | )            |      |              | (353 | ) |       |     | (104   | ) |     |     | (98  | ) |      |    | (106 | )
|                                               |                                                                                                    |                                                                       |                                                          |   |          |   |              |     |              |        |              |       |              |        |              |      |              |      |   |       |     |        |   |     |     |      |   |      |   
|Cash flows from financing activities:          |                                                                                                    |                                                                       |                                                          |   |          |   |              |     |              |        |              |       |              |        |              |      |              |      |   |       |     |        |   |     |     |      |   |     
|                                               | Deferred financing costs                                                                           |                                                                       |                                                          |  |          |   |              |    |              |        |              |      |              |        |              |     |              |      |   |      |     |        |   |    |     |      |   |     |   
|                                               | Proceeds from issuances of mortgages and notes payable                                             |                                                                       |                                                          |  |          |   |              |    |              |        |              |      |              |        |              |     |              |      |   |      |     |        |   |    |     |      |   |     |   
|                                               | Principal payments on mortgages and notes payable                                                  |                                                                       |                                                          |  |          |   |              |    |              |        |              |      |              |        |              |     |              |      |   |      |     |        |   |    |     |      |   |     |   
|                                               | Repurchase of units                                                                                |                                                                       |                                                          |  |          |   |              |    |              |        |              |      |              |        |              |     |              |      |   |      |     |        |   |    |     |      |   |     |   
|                                               | Contributions from partners                                                                        |                                                                       |                                                          |  |          |   |              |    |              |        |              |      |              |        |              |     |              |      |   |      |     |        |   |    |     |      |   |     |   
|                                               | Distributions paid to partners                                                                     |                                                                       |                                                          |  |          |   |              |    |              |        |              |      |              |        |              |     |              |      |   |      |     |        |   |    |     |      |   |     |   
|                                               |                                                                                                    |                                                                       |                                                          |   |          |   |              |     |              |        |              |       |              |        |              |      |              |      |   |       |     |        |   |     |     |      |   |      |   
|                                               |                                                                                                    |                                                                       | Net cash used in financing activities                    |   |          |  |              |     |              |       |              |       |              |       |              |      |              |     |   |       |     |       |   |     |     |     |   |      |    |     |  
|                                               |                                                                                                    |                                                                       |                                                          |   |          |   |              |     |              |        |              |       |              |        |              |      |              |      |   |       |     |        |   |     |     |      |   |      |   
|Effect of exchange rate changes on cash        |                                                                                                    |                                                                       |                                                         |   |          |   |             |     |              |        |             |       |              |        |             |      |              |      |  |       |     |        |  |     |     |      |  |     
|                                               |                                                                                                    |                                                                       |                                                          |   |          |   |              |     |              |        |              |       |              |        |              |      |              |      |   |       |     |        |   |     |     |      |   |      |   
|Net change in cash                             |                                                                                                    |                                                                       |                                                         |   |          |   |             |     |              |        |             |       |              |        |             |      |              |      |  |       |     |        |  |     |     |      |  |     
|Cash and cash equivalents, beginning of period |                                                                                                    |                                                                       |                                                         |   |          |   |             |     |              |        |             |       |              |        |             |      |              |      |  |       |     |        |  |     |     |      |  |     
|                                               |                                                                                                    |                                                                       |                                                          |   |          |   |              |     |              |        |              |       |              |        |              |      |              |      |   |       |     |        |   |     |     |      |   |      |   
|Cash and cash equivalents, end of period       |                                                                                                    |                                                                       |                                                         |   |          |   |             |     |              |        |             |       |              |        |             |      |              |      |  |       |     |        |  |     |     |      |  |     
|                                               |                                                                                                    |                                                                       |                                                          |   |          |   |              |     |              |        |              |       |              |        |              |      |              |      |   |       |     |        |   |     |     |      |   |      |   



---



##### 



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

|                                               |                                                                                                    |                                                                       |                                                          |      |              |      |              |   |              |   |              |       |              |        |              |       |     |        |   |       |       |        |   |      |     |      |  
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------- | -------------------------------------------------------- | ---- | ------------ | ---- | ------------ | - | ------------ | - | ------------ | ----- | ------------ | ------ | ------------ | ----- | --- | ------ | - | ----- | ----- | ------ | - | ---- | --- | ---- | -
|                                               |                                                                                                    |                                                                       |                                                          |      | MeriStar Sub |      | MeriStar Sub |   | MeriStar Sub |   | MeriStar Sub |       | MeriStar Sub |        | MeriStar Sub
|                                               |                                                                                                    |                                                                       |                                                          |      | 3C, LLC      |      | 5R, LLC      |   | 8A, LLC      |   | 6D, LLC      |       | 6E, LLC      |        | 4E, L.P.    
|                                               |                                                                                                    |                                                                       |                                                          |      |              |      |              |   |              |   |              |       |              |        |             
|Cash flows from operating activities:          |                                                                                                    |                                                                       |                                                          |      |              |      |              |   |              |   |              |       |              |        |              |       |     |        |   |       |       |        |   |     
|                                               | Net income (loss)                                                                                  |                                                                       |                                                          | 615  |              |      |              |  |              |   |              | (823  | )            |        |              | 1,151 |     |        |   | 2,861 |       |        |   | 293  |    
|                                               | Adjustments to reconcile net income (loss) to
net cash provided by (used in) operating
activities: |                                                                       |                                                          |      |              |      |              |   |              |   |              |       |              |        |              |       |     |        |   |       |       |        |   |      |    
|                                               |                                                                                                    | Depreciation and amortization                                         |                                                          |      | 514          |      |              |   |             |   |              |       | 89           |        |              |       | 380 |        |   |       | 1,249 |        |   |      | 684 |     
|                                               |                                                                                                    | Equity in earnings                                                    |                                                          |      |              |      |              |   |              |   |              |       |              |        |              |       |     |        |   |       |       |        |   |      |     |     
|                                               |                                                                                                    | Loss on sale of assets, net of tax                                    |                                                          |      |             |      |              |   |             |   |              |       | 1,081        |        |              |       |    |        |   |       |      |        |   |      |    |     
|                                               |                                                                                                    | Write down of investment in STS
Hotel Net                             |                                                          |      |             |      |              |   |             |   |              |       |             |        |              |       |    |        |   |       |      |        |   |      |    |     
|                                               |                                                                                                    | Extraordinary loss on early
extinguishment of debt, before tax
effect |                                                          |      |             |      |              |   |             |   |              |       |             |        |              |       |    |        |   |       |      |        |   |      |    |     
|                                               |                                                                                                    | Minority interests                                                    |                                                          |      |             |      |              |   |             |   |              |       |             |        |              |       |    |        |   |       |      |        |   |      |    |     
|                                               |                                                                                                    | Amortization of unearned stock
based compensation                     |                                                          |      |             |      |              |   |             |   |              |       |             |        |              |       |    |        |   |       |      |        |   |      |    |     
|                                               |                                                                                                    | Interest rate swaps marked to fair
value                              |                                                          |      |             |      |              |   |             |   |              |       |             |        |              |       |    |        |   |       |      |        |   |      |    |     
|                                               |                                                                                                    | Deferred income taxes                                                 |                                                          |      |             |      |              |   |             |   |              |       |             |        |              |       |    |        |   |       |      |        |   |      |    |     
|                                               |                                                                                                    | Changes in operating assets and
liabilities:                          |                                                          |      |              |      |              |   |              |   |              |       |              |        |              |       |     |        |   |       |       |        |   |      |     |     
|                                               |                                                                                                    |                                                                       | Accounts
receivable, net                                 |      |              | (32  | )            |   |              |  |              |       |              | (31    | )            |       |     | (297   | ) |       |       | 34     |   |      |     | (19  | )
|                                               |                                                                                                    |                                                                       | Prepaid expenses
and other                               |      |              | (3   | )            |   |              |  |              |       |              |       |              |       |     | (5     | ) |       |       |       |   |      |     |     |  
|                                               |                                                                                                    |                                                                       | Due from/to
MeriStar Hotels                              |      |              |     |              |   |              |  |              |       |              |       |              |       |     | 123    |   |       |       | 0      |   |      |     | (75  | )
|                                               |                                                                                                    |                                                                       | Accounts payable,
accrued expenses
and other
liabilities |      |              | 131  |              |   |              |  |              |       |              | 58     |              |       |     | 6      |   |       |       | (108   | ) |      |     | (70  | )
|                                               |                                                                                                    |                                                                       | Accrued interest                                         |      |              |     |              |   |              |  |              |       |              |       |              |       |     |       |   |       |       |       |   |      |     |     |  
|                                               |                                                                                                    |                                                                       | Due from
subsidiaries                                    |      |              | (998 | )            |   |              |  |              |       |              | (8,823 | )            |       |     | (1,051 | ) |       |       | (3,318 | ) |      |     | (646 | )
|                                               |                                                                                                    |                                                                       | Income taxes payable                                     |      |              |     |              |   |              |  |              |       |              |       |              |       |     |       |   |       |       |       |   |      |     |     |  
|                                               |                                                                                                    |                                                                       |                                                          |      |              |      |              |   |              |   |              |       |              |        |              |       |     |        |   |       |       |        |   |      |    
|                                               |                                                                                                    |                                                                       | Net cash provided
by (used in)
operating
activities      |      |              | 227  |              |   |              |  |              |       |              | (8,449 | )            |       |     | 307    |   |       |       | 718    |   |      |     | 167  |  
|                                               |                                                                                                    |                                                                       |                                                          |      |              |      |              |   |              |   |              |       |              |        |              |       |     |        |   |       |       |        |   |      |    
|Cash flows from investing activities:          |                                                                                                    |                                                                       |                                                          |      |              |      |              |   |              |   |              |       |              |        |              |       |     |        |   |       |       |        |   |     
|                                               | Investment in hotel properties, net                                                                |                                                                       |                                                          | (227 | )            |      |              |  |              |   |              | 1,175 |              |        |              | (307  | )   |        |   | (718  | )     |        |   | (167 | )  
|                                               | Proceeds from disposition of assets                                                                |                                                                       |                                                          |     |              |      |              |  |              |   |              | 7,274 |              |        |              |      |     |        |   |      |       |        |   |     |    
|                                               | Hotel operating cash received in connection with
lease conversions                                 |                                                                       |                                                          |      |              |      |              |   |              |   |              |       |              |        |              |       |     |        |   |       |       |        |   |      |    
|                                               | Note receivable to MeriStar Hotels                                                                 |                                                                       |                                                          |     |              |      |              |  |              |   |              |      |              |        |              |      |     |        |   |      |       |        |   |     |    
|                                               | Change in restricted cash                                                                          |                                                                       |                                                          |     |              |      |              |  |              |   |              |      |              |        |              |      |     |        |   |      |       |        |   |     |    
|                                               |                                                                                                    |                                                                       |                                                          |      |              |      |              |   |              |   |              |       |              |        |              |       |     |        |   |       |       |        |   |      |    
|                                               |                                                                                                    |                                                                       | Net cash provided
by (used in)
investing
activities      |      |              | (227 | )            |   |              |  |              |       |              | 8,449  |              |       |     | (307   | ) |       |       | (718   | ) |      |     | (167 | )
|                                               |                                                                                                    |                                                                       |                                                          |      |              |      |              |   |              |   |              |       |              |        |              |       |     |        |   |       |       |        |   |      |    
|Cash flows from financing activities:          |                                                                                                    |                                                                       |                                                          |      |              |      |              |   |              |   |              |       |              |        |              |       |     |        |   |       |       |        |   |     
|                                               | Deferred financing costs                                                                           |                                                                       |                                                          |     |              |      |              |  |              |   |              |      |              |        |              |      |     |        |   |      |       |        |   |     |    
|                                               | Proceeds from issuances of mortgages and notes
payable                                             |                                                                       |                                                          |     |              |      |              |  |              |   |              |      |              |        |              |      |     |        |   |      |       |        |   |     |    
|                                               | Principal payments on mortgages and notes payable                                                  |                                                                       |                                                          |     |              |      |              |  |              |   |              |      |              |        |              |      |     |        |   |      |       |        |   |     |    
|                                               | Repurchase of units                                                                                |                                                                       |                                                          |     |              |      |              |  |              |   |              |      |              |        |              |      |     |        |   |      |       |        |   |     |    
|                                               | Contributions from partners                                                                        |                                                                       |                                                          |     |              |      |              |  |              |   |              |      |              |        |              |      |     |        |   |      |       |        |   |     |    
|                                               | Distributions paid to partners                                                                     |                                                                       |                                                          |     |              |      |              |  |              |   |              |      |              |        |              |      |     |        |   |      |       |        |   |     |    
|                                               |                                                                                                    |                                                                       |                                                          |      |              |      |              |   |              |   |              |       |              |        |              |       |     |        |   |       |       |        |   |      |    
|                                               |                                                                                                    |                                                                       | Net cash used in
financing
activities                    |      |              |     |              |   |              |  |              |       |              |       |              |       |     |       |   |       |       |       |   |      |     |     |  
|                                               |                                                                                                    |                                                                       |                                                          |      |              |      |              |   |              |   |              |       |              |        |              |       |     |        |   |       |       |        |   |      |    
|Effect of exchange rate changes on cash        |                                                                                                    |                                                                       |                                                         |      |              |      |             |   |              |   |             |       |              |        |             |       |     |        |  |       |       |        |  |     
|                                               |                                                                                                    |                                                                       |                                                          |      |              |      |              |   |              |   |              |       |              |        |              |       |     |        |   |       |       |        |   |      |    
|Net change in cash                             |                                                                                                    |                                                                       |                                                         |      |              |      |             |   |              |   |             |       |              |        |             |       |     |        |  |       |       |        |  |     
|Cash and cash equivalents, beginning of period |                                                                                                    |                                                                       |                                                         |      |              |      |             |   |              |   |             |       |              |        |             |       |     |        |  |       |       |        |  |     
|                                               |                                                                                                    |                                                                       |                                                          |      |              |      |              |   |              |   |              |       |              |        |              |       |     |        |   |       |       |        |   |      |    
|Cash and cash equivalents, end of period       |                                                                                                    |                                                                       |                                                         |      |              |      |             |   |              |   |             |       |              |        |             |       |     |        |  |       |       |        |  |     
|                                               |                                                                                                    |                                                                       |                                                          |      |              |      |              |   |              |   |              |       |              |        |              |       |     |        |   |       |       |        |   |      |    





---



##### 



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

|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |       |              |        |              |      |     |      |   |      |     |      |   |      |     |      |  
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------- | -------------------------------------------------------- | ----- | ------------ | ------ | ------------ | ----- | ------------ | ------ | ------------ | ----- | ------------ | ------ | ------------ | ---- | --- | ---- | - | ---- | --- | ---- | - | ---- | --- | ---- | -
|                                               |                                                                                                    |                                                                       |                                                          |       | MeriStar Sub |        | MeriStar Sub |       | MeriStar Sub |        | MeriStar Sub |       | MeriStar Sub |        | MeriStar Sub
|                                               |                                                                                                    |                                                                       |                                                          |       | 1B, LLC      |        | 5F, L.P.     |       | 6G, LLC      |        | 8C, LLC      |       | 4C, L.P.     |        | 4H, L.P.    
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |       |              |        |             
|Cash flows from operating activities:          |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |       |              |        |              |      |     |      |   |      |     |      |   |     
|                                               | Net income (loss)                                                                                  |                                                                       |                                                          | 1,761 |              |        |              | 1,420 |              |        |              | 1,347 |              |        |              | 315  |     |      |   | (61  | )   |      |   | (137 | )  
|                                               | Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities: |                                                                       |                                                          |       |              |        |              |       |              |        |              |       |              |        |              |      |     |      |   |      |     |      |   |      |    
|                                               |                                                                                                    | Depreciation and amortization                                         |                                                          |       | 459          |        |              |       | 787          |        |              |       | 574          |        |              |      | 981 |      |   |      | 532 |      |   |      | 399 |     
|                                               |                                                                                                    | Equity in earnings                                                    |                                                          |       |              |        |              |       |              |        |              |       |              |        |              |      |     |      |   |      |     |      |   |      |     |     
|                                               |                                                                                                    | Loss on sale of assets, net of tax                                    |                                                          |       |             |        |              |       |             |        |              |       |             |        |              |      |    |      |   |      |    |      |   |      |    |     
|                                               |                                                                                                    | Write down of investment in STS Hotel Net                             |                                                          |       |             |        |              |       |             |        |              |       |             |        |              |      |    |      |   |      |    |      |   |      |    |     
|                                               |                                                                                                    | Extraordinary loss on early extinguishment of debt, before tax effect |                                                          |       |             |        |              |       |             |        |              |       |             |        |              |      |    |      |   |      |    |      |   |      |    |     
|                                               |                                                                                                    | Minority interests                                                    |                                                          |       |             |        |              |       |             |        |              |       |             |        |              |      |    |      |   |      |    |      |   |      |    |     
|                                               |                                                                                                    | Amortization of unearned stock based compensation                     |                                                          |       |             |        |              |       |             |        |              |       |             |        |              |      |    |      |   |      |    |      |   |      |    |     
|                                               |                                                                                                    | Interest rate swaps marked to fair value                              |                                                          |       |             |        |              |       |             |        |              |       |             |        |              |      |    |      |   |      |    |      |   |      |    |     
|                                               |                                                                                                    | Deferred income taxes                                                 |                                                          |       |             |        |              |       |             |        |              |       |             |        |              |      |    |      |   |      |    |      |   |      |    |     
|                                               |                                                                                                    | Changes in operating assets and liabilities:                          |                                                          |       |              |        |              |       |              |        |              |       |              |        |              |      |     |      |   |      |     |      |   |      |     |     
|                                               |                                                                                                    |                                                                       | Accounts receivable, net                                 |       |              | 16     |              |       |              | (25    | )            |       |              | 36     |              |      |     | 8    |   |      |     | (47  | ) |      |     |     |  
|                                               |                                                                                                    |                                                                       | Prepaid expenses and other                               |       |              | (13    | )            |       |              | (11    | )            |       |              | (6     | )            |      |     |     |   |      |     | (6   | ) |      |     | (2   | )
|                                               |                                                                                                    |                                                                       | Due from/to MeriStar Hotels                              |       |              | (0     | )            |       |              |       |              |       |              | (5     | )            |      |     |     |   |      |     |     |   |      |     |     |  
|                                               |                                                                                                    |                                                                       | Accounts payable, accrued expenses and other liabilities |       |              | 57     |              |       |              | 80     |              |       |              | 98     |              |      |     | (82  | ) |      |     | 134  |   |      |     | (25  | )
|                                               |                                                                                                    |                                                                       | Accrued interest                                         |       |              |       |              |       |              |       |              |       |              |       |              |      |     |     |   |      |     |     |   |      |     |     |  
|                                               |                                                                                                    |                                                                       | Due from subsidiaries                                    |       |              | (2,194 | )            |       |              | (1,950 | )            |       |              | (1,823 | )            |      |     | (928 | ) |      |     | (184 | ) |      |     | (141 | )
|                                               |                                                                                                    |                                                                       | Income taxes payable                                     |       |              |       |              |       |              |       |              |       |              |       |              |      |     |     |   |      |     |     |   |      |     |     |  
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |       |              |        |              |      |     |      |   |      |     |      |   |      |    
|                                               |                                                                                                    |                                                                       | Net cash provided by (used in) operating activities      |       |              | 86     |              |       |              | 301    |              |       |              | 221    |              |      |     | 294  |   |      |     | 368  |   |      |     | 94   |  
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |       |              |        |              |      |     |      |   |      |     |      |   |      |    
|Cash flows from investing activities:          |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |       |              |        |              |      |     |      |   |      |     |      |   |     
|                                               | Investment in hotel properties, net                                                                |                                                                       |                                                          | (86   | )            |        |              | (301  | )            |        |              | (221  | )            |        |              | (294 | )   |      |   | (368 | )   |      |   | (94  | )  
|                                               | Proceeds from disposition of assets                                                                |                                                                       |                                                          |      |              |        |              |      |              |        |              |      |              |        |              |     |     |      |   |     |     |      |   |     |    
|                                               | Hotel operating cash received in connection with lease conversions                                 |                                                                       |                                                          |       |              |        |              |       |              |        |              |       |              |        |              |      |     |      |   |      |     |      |   |      |    
|                                               | Note receivable to MeriStar Hotels                                                                 |                                                                       |                                                          |      |              |        |              |      |              |        |              |      |              |        |              |     |     |      |   |     |     |      |   |     |    
|                                               | Change in restricted cash                                                                          |                                                                       |                                                          |      |              |        |              |      |              |        |              |      |              |        |              |     |     |      |   |     |     |      |   |     |    
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |       |              |        |              |      |     |      |   |      |     |      |   |      |    
|                                               |                                                                                                    |                                                                       | Net cash provided by (used in) investing activities      |       |              | (86    | )            |       |              | (301   | )            |       |              | (221   | )            |      |     | (294 | ) |      |     | (368 | ) |      |     | (94  | )
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |       |              |        |              |      |     |      |   |      |     |      |   |      |    
|Cash flows from financing activities:          |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |       |              |        |              |      |     |      |   |      |     |      |   |     
|                                               | Deferred financing costs                                                                           |                                                                       |                                                          |      |              |        |              |      |              |        |              |      |              |        |              |     |     |      |   |     |     |      |   |     |    
|                                               | Proceeds from issuances of mortgages and notes payable                                             |                                                                       |                                                          |      |              |        |              |      |              |        |              |      |              |        |              |     |     |      |   |     |     |      |   |     |    
|                                               | Principal payments on mortgages and notes payable                                                  |                                                                       |                                                          |      |              |        |              |      |              |        |              |      |              |        |              |     |     |      |   |     |     |      |   |     |    
|                                               | Repurchase of units                                                                                |                                                                       |                                                          |      |              |        |              |      |              |        |              |      |              |        |              |     |     |      |   |     |     |      |   |     |    
|                                               | Contributions from partners                                                                        |                                                                       |                                                          |      |              |        |              |      |              |        |              |      |              |        |              |     |     |      |   |     |     |      |   |     |    
|                                               | Distributions paid to partners                                                                     |                                                                       |                                                          |      |              |        |              |      |              |        |              |      |              |        |              |     |     |      |   |     |     |      |   |     |    
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |       |              |        |              |      |     |      |   |      |     |      |   |      |    
|                                               |                                                                                                    |                                                                       | Net cash used in financing activities                    |       |              |       |              |       |              |       |              |       |              |       |              |      |     |     |   |      |     |     |   |      |     |     |  
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |       |              |        |              |      |     |      |   |      |     |      |   |      |    
|Effect of exchange rate changes on cash        |                                                                                                    |                                                                       |                                                         |       |              |        |             |       |              |        |             |       |              |        |             |      |     |      |  |      |     |      |  |     
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |       |              |        |              |      |     |      |   |      |     |      |   |      |    
|Net change in cash                             |                                                                                                    |                                                                       |                                                         |       |              |        |             |       |              |        |             |       |              |        |             |      |     |      |  |      |     |      |  |     
|Cash and cash equivalents, beginning of period |                                                                                                    |                                                                       |                                                         |       |              |        |             |       |              |        |             |       |              |        |             |      |     |      |  |      |     |      |  |     
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |       |              |        |              |      |     |      |   |      |     |      |   |      |    
|Cash and cash equivalents, end of period       |                                                                                                    |                                                                       |                                                         |       |              |        |             |       |              |        |             |       |              |        |             |      |     |      |  |      |     |      |  |     
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |       |              |        |              |      |     |      |   |      |     |      |   |      |    





---



##### 



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



|                                               |                                                                                                    |                                                                       |                                                          |      |              |      |              |      |              |        |              |       |                 |        |              |       |              |        |   |      |     |      |   |       |     |        |   |      |     |      |  
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------- | -------------------------------------------------------- | ---- | ------------ | ---- | ------------ | ---- | ------------ | ------ | ------------ | ----- | --------------- | ------ | ------------ | ----- | ------------ | ------ | - | ---- | --- | ---- | - | ----- | --- | ------ | - | ---- | --- | ---- | -
|                                               |                                                                                                    |                                                                       |                                                          |      | MeriStar Sub |      | MeriStar Sub |      | MeriStar Sub |        | MeriStar Sub |       | MeriStar Sub 7A |        | MeriStar Sub |       | MeriStar Sub
|                                               |                                                                                                    |                                                                       |                                                          |      | 7E, LLC      |      | 3D, LLC      |      | 1A, LLC      |        | 5E, LLC      |       | Joint Venture   |        | 6K, LLC      |       | 2B, LLC     
|                                               |                                                                                                    |                                                                       |                                                          |      |              |      |              |      |              |        |              |       |                 |        |              |       |             
|Cash flows from operating activities:          |                                                                                                    |                                                                       |                                                          |      |              |      |              |      |              |        |              |       |                 |        |              |       |              |        |   |      |     |      |   |       |     |        |   |     
|                                               | Net income (loss)                                                                                  |                                                                       |                                                          | 620  |              |      |              | 713  |              |        |              | 1,041 |                 |        |              | 2,578 |              |        |   | 697  |     |      |   | 1,985 |     |        |   | (218 | )  
|                                               | Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities: |                                                                       |                                                          |      |              |      |              |      |              |        |              |       |                 |        |              |       |              |        |   |      |     |      |   |       |     |        |   |      |    
|                                               |                                                                                                    | Depreciation and amortization                                         |                                                          |      | 449          |      |              |      | 692          |        |              |       | 353             |        |              |       | 1,382        |        |   |      | 301 |      |   |       | 554 |        |   |      | 287 |     
|                                               |                                                                                                    | Equity in earnings                                                    |                                                          |      |              |      |              |      |              |        |              |       |                 |        |              |       |              |        |   |      |     |      |   |       |     |        |   |      |     |     
|                                               |                                                                                                    | Loss on sale of assets, net of tax                                    |                                                          |      |             |      |              |      |             |        |              |       |                |        |              |       |             |        |   |      |    |      |   |       |    |        |   |      |    |     
|                                               |                                                                                                    | Write down of investment in STS Hotel Net                             |                                                          |      |             |      |              |      |             |        |              |       |                |        |              |       |             |        |   |      |    |      |   |       |    |        |   |      |    |     
|                                               |                                                                                                    | Extraordinary loss on early extinguishment of debt, before tax effect |                                                          |      |             |      |              |      |             |        |              |       |                |        |              |       |             |        |   |      |    |      |   |       |    |        |   |      |    |     
|                                               |                                                                                                    | Minority interests                                                    |                                                          |      |             |      |              |      |             |        |              |       |                |        |              |       |             |        |   |      |    |      |   |       |    |        |   |      |    |     
|                                               |                                                                                                    | Amortization of unearned stock based compensation                     |                                                          |      |             |      |              |      |             |        |              |       |                |        |              |       |             |        |   |      |    |      |   |       |    |        |   |      |    |     
|                                               |                                                                                                    | Interest rate swaps marked to fair value                              |                                                          |      |             |      |              |      |             |        |              |       |                |        |              |       |             |        |   |      |    |      |   |       |    |        |   |      |    |     
|                                               |                                                                                                    | Deferred income taxes                                                 |                                                          |      |             |      |              |      |             |        |              |       |                |        |              |       |             |        |   |      |    |      |   |       |    |        |   |      |    |     
|                                               |                                                                                                    | Changes in operating assets and liabilities:                          |                                                          |      |              |      |              |      |              |        |              |       |                 |        |              |       |              |        |   |      |     |      |   |       |     |        |   |      |     |     
|                                               |                                                                                                    |                                                                       | Accounts receivable, net                                 |      |              | 53   |              |      |              | (19    | )            |       |                 | 40     |              |       |              | 18     |   |      |     | (13  | ) |       |     | (18    | ) |      |     |     |  
|                                               |                                                                                                    |                                                                       | Prepaid expenses and other                               |      |              | 44   |              |      |              |       |              |       |                 |       |              |       |              | (15    | ) |      |     | (4   | ) |       |     | (1     | ) |      |     |     |  
|                                               |                                                                                                    |                                                                       | Due from/to MeriStar Hotels                              |      |              |     |              |      |              |       |              |       |                 |       |              |       |              | (11    | ) |      |     |     |   |       |     |       |   |      |     | 389  |  
|                                               |                                                                                                    |                                                                       | Accounts payable, accrued expenses and other liabilities |      |              | 13   |              |      |              | 160    |              |       |                 | (54    | )            |       |              | 554    |   |      |     | (193 | ) |       |     | 176    |   |      |     |     |  
|                                               |                                                                                                    |                                                                       | Accrued interest                                         |      |              |     |              |      |              |       |              |       |                 |       |              |       |              |       |   |      |     |     |   |       |     |       |   |      |     |     |  
|                                               |                                                                                                    |                                                                       | Due from subsidiaries                                    |      |              | (956 | )            |      |              | (1,139 | )            |       |                 | (1,186 | )            |       |              | (4,098 | ) |      |     | (514 | ) |       |     | (2,386 | ) |      |     | (756 | )
|                                               |                                                                                                    |                                                                       | Income taxes payable                                     |      |              |     |              |      |              |       |              |       |                 |       |              |       |              |       |   |      |     |     |   |       |     |       |   |      |     |     |  
|                                               |                                                                                                    |                                                                       |                                                          |      |              |      |              |      |              |        |              |       |                 |        |              |       |              |        |   |      |     |      |   |       |     |        |   |      |    
|                                               |                                                                                                    |                                                                       | Net cash provided by (used in) operating activities      |      |              | 224  |              |      |              | 406    |              |       |                 | 195    |              |       |              | 408    |   |      |     | 274  |   |       |     | 310    |   |      |     | (298 | )
|                                               |                                                                                                    |                                                                       |                                                          |      |              |      |              |      |              |        |              |       |                 |        |              |       |              |        |   |      |     |      |   |       |     |        |   |      |    
|Cash flows from investing activities:          |                                                                                                    |                                                                       |                                                          |      |              |      |              |      |              |        |              |       |                 |        |              |       |              |        |   |      |     |      |   |       |     |        |   |     
|                                               | Investment in hotel properties, net                                                                |                                                                       |                                                          | (224 | )            |      |              | (406 | )            |        |              | (195  | )               |        |              | (408  | )            |        |   | (274 | )   |      |   | (310  | )   |        |   | 298  |    
|                                               | Proceeds from disposition of assets                                                                |                                                                       |                                                          |     |              |      |              |     |              |        |              |      |                 |        |              |      |              |        |   |     |     |      |   |      |     |        |   |     |    
|                                               | Hotel operating cash received in connection with lease conversions                                 |                                                                       |                                                          |      |              |      |              |      |              |        |              |       |                 |        |              |       |              |        |   |      |     |      |   |       |     |        |   |      |    
|                                               | Note receivable to MeriStar Hotels                                                                 |                                                                       |                                                          |     |              |      |              |     |              |        |              |      |                 |        |              |      |              |        |   |     |     |      |   |      |     |        |   |     |    
|                                               | Change in restricted cash                                                                          |                                                                       |                                                          |     |              |      |              |     |              |        |              |      |                 |        |              |      |              |        |   |     |     |      |   |      |     |        |   |     |    
|                                               |                                                                                                    |                                                                       |                                                          |      |              |      |              |      |              |        |              |       |                 |        |              |       |              |        |   |      |     |      |   |       |     |        |   |      |    
|                                               |                                                                                                    |                                                                       | Net cash provided by (used in) investing activities      |      |              | (224 | )            |      |              | (406   | )            |       |                 | (195   | )            |       |              | (408   | ) |      |     | (274 | ) |       |     | (310   | ) |      |     | 298  |  
|                                               |                                                                                                    |                                                                       |                                                          |      |              |      |              |      |              |        |              |       |                 |        |              |       |              |        |   |      |     |      |   |       |     |        |   |      |    
|Cash flows from financing activities:          |                                                                                                    |                                                                       |                                                          |      |              |      |              |      |              |        |              |       |                 |        |              |       |              |        |   |      |     |      |   |       |     |        |   |     
|                                               | Deferred financing costs                                                                           |                                                                       |                                                          |     |              |      |              |     |              |        |              |      |                 |        |              |      |              |        |   |     |     |      |   |      |     |        |   |     |    
|                                               | Proceeds from issuances of mortgages and notes payable                                             |                                                                       |                                                          |     |              |      |              |     |              |        |              |      |                 |        |              |      |              |        |   |     |     |      |   |      |     |        |   |     |    
|                                               | Principal payments on mortgages and notes payable                                                  |                                                                       |                                                          |     |              |      |              |     |              |        |              |      |                 |        |              |      |              |        |   |     |     |      |   |      |     |        |   |     |    
|                                               | Repurchase of units                                                                                |                                                                       |                                                          |     |              |      |              |     |              |        |              |      |                 |        |              |      |              |        |   |     |     |      |   |      |     |        |   |     |    
|                                               | Contributions from partners                                                                        |                                                                       |                                                          |     |              |      |              |     |              |        |              |      |                 |        |              |      |              |        |   |     |     |      |   |      |     |        |   |     |    
|                                               | Distributions paid to partners                                                                     |                                                                       |                                                          |     |              |      |              |     |              |        |              |      |                 |        |              |      |              |        |   |     |     |      |   |      |     |        |   |     |    
|                                               |                                                                                                    |                                                                       |                                                          |      |              |      |              |      |              |        |              |       |                 |        |              |       |              |        |   |      |     |      |   |       |     |        |   |      |    
|                                               |                                                                                                    |                                                                       | Net cash used in financing activities                    |      |              |     |              |      |              |       |              |       |                 |       |              |       |              |       |   |      |     |     |   |       |     |       |   |      |     |     |  
|                                               |                                                                                                    |                                                                       |                                                          |      |              |      |              |      |              |        |              |       |                 |        |              |       |              |        |   |      |     |      |   |       |     |        |   |      |    
|Effect of exchange rate changes on cash        |                                                                                                    |                                                                       |                                                         |      |              |      |             |      |              |        |             |       |                 |        |             |       |              |        |  |      |     |      |  |       |     |        |  |     
|                                               |                                                                                                    |                                                                       |                                                          |      |              |      |              |      |              |        |              |       |                 |        |              |       |              |        |   |      |     |      |   |       |     |        |   |      |    
|Net change in cash                             |                                                                                                    |                                                                       |                                                         |      |              |      |             |      |              |        |             |       |                 |        |             |       |              |        |  |      |     |      |  |       |     |        |  |     
|Cash and cash equivalents, beginning of period |                                                                                                    |                                                                       |                                                         |      |              |      |             |      |              |        |             |       |                 |        |             |       |              |        |  |      |     |      |  |       |     |        |  |     
|                                               |                                                                                                    |                                                                       |                                                          |      |              |      |              |      |              |        |              |       |                 |        |              |       |              |        |   |      |     |      |   |       |     |        |   |      |    
|Cash and cash equivalents, end of period       |                                                                                                    |                                                                       |                                                         |      |              |      |             |      |              |        |             |       |                 |        |             |       |              |        |  |      |     |      |  |       |     |        |  |     
|                                               |                                                                                                    |                                                                       |                                                          |      |              |      |              |      |              |        |              |       |                 |        |              |       |              |        |   |      |     |      |   |       |     |        |   |      |    



---



##### 



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

|                                               |                                                                                                    |                                                                       |                                                          |     |              |      |              |      |              |      |              |      |              |      |             |      |              |      |   |      |     |        |   |     |    |      |   |      |     |      |  
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------- | -------------------------------------------------------- | --- | ------------ | ---- | ------------ | ---- | ------------ | ---- | ------------ | ---- | ------------ | ---- | ----------- | ---- | ------------ | ---- | - | ---- | --- | ------ | - | --- | -- | ---- | - | ---- | --- | ---- | -
|                                               |                                                                                                    |                                                                       |                                                          |     | MeriStar Sub |      | MeriStar Sub |      | MeriStar Sub |      | MeriStar Sub |      | MeriStar Sub |      | MDV Limited |      | MeriStar Sub
|                                               |                                                                                                    |                                                                       |                                                          |     | 3A, LLC      |      | 4A, LLC      |      | 4D, LLC      |      | 2A, LLC      |      | 6L, LLC      |      | Partnership |      | 5C, LLC     
|                                               |                                                                                                    |                                                                       |                                                          |     |              |      |              |      |              |      |              |      |              |      |             |      |             
|Cash flows from operating activities:          |                                                                                                    |                                                                       |                                                          |     |              |      |              |      |              |      |              |      |              |      |             |      |              |      |   |      |     |        |   |     |    |      |   |     
|                                               | Net income (loss)                                                                                  |                                                                       |                                                          | 261 |              |      |              | 750  |              |      |              | 178  |              |      |             | (352 | )            |      |   | 584  |     |        |   | 286 |    |      |   | 572  |    
|                                               | Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities: |                                                                       |                                                          |     |              |      |              |      |              |      |              |      |              |      |             |      |              |      |   |      |     |        |   |     |    |      |   |      |    
|                                               |                                                                                                    | Depreciation and amortization                                         |                                                          |     | 255          |      |              |      |             |      |              |      | 220          |      |             |      | 238          |      |   |      | 659 |        |   |     | 91 |      |   |      | 434 |     
|                                               |                                                                                                    | Equity in earnings                                                    |                                                          |     |              |      |              |      |              |      |              |      |              |      |             |      |              |      |   |      |     |        |   |     |    |      |   |      |     |     
|                                               |                                                                                                    | Loss on sale of assets, net of tax                                    |                                                          |     |             |      |              |      |             |      |              |      |             |      |             |      |             |      |   |      |    |        |   |     |   |      |   |      |    |     
|                                               |                                                                                                    | Write down of investment in STS Hotel Net                             |                                                          |     |             |      |              |      |             |      |              |      |             |      |             |      |             |      |   |      |    |        |   |     |   |      |   |      |    |     
|                                               |                                                                                                    | Extraordinary loss on early extinguishment of debt, before tax effect |                                                          |     |             |      |              |      |             |      |              |      |             |      |             |      |             |      |   |      |    |        |   |     |   |      |   |      |    |     
|                                               |                                                                                                    | Minority interests                                                    |                                                          |     |             |      |              |      |             |      |              |      |             |      |             |      |             |      |   |      |    |        |   |     |   |      |   |      |    |     
|                                               |                                                                                                    | Amortization of unearned stock based compensation                     |                                                          |     |             |      |              |      |             |      |              |      |             |      |             |      |             |      |   |      |    |        |   |     |   |      |   |      |    |     
|                                               |                                                                                                    | Interest rate swaps marked to fair value                              |                                                          |     |             |      |              |      |             |      |              |      |             |      |             |      |             |      |   |      |    |        |   |     |   |      |   |      |    |     
|                                               |                                                                                                    | Deferred income taxes                                                 |                                                          |     |             |      |              |      |             |      |              |      |             |      |             |      |             |      |   |      |    |        |   |     |   |      |   |      |    |     
|                                               |                                                                                                    | Changes in operating assets and liabilities:                          |                                                          |     |              |      |              |      |              |      |              |      |              |      |             |      |              |      |   |      |     |        |   |     |    |      |   |      |     |     
|                                               |                                                                                                    |                                                                       | Accounts receivable, net                                 |     |              | (35  | )            |      |              | (4   | )            |      |              | (7   | )           |      |              |     |   |      |     | 26     |   |     |    | 26   |   |      |     | (16  | )
|                                               |                                                                                                    |                                                                       | Prepaid expenses and other                               |     |              |     |              |      |              |     |              |      |              |     |             |      |              | (1   | ) |      |     | 1      |   |     |    | 1    |   |      |     | (18  | )
|                                               |                                                                                                    |                                                                       | Due from/to MeriStar Hotels                              |     |              | (1   | )            |      |              | (2   | )            |      |              | (0   | )           |      |              | (154 | ) |      |     |       |   |     |    |     |   |      |     |     |  
|                                               |                                                                                                    |                                                                       | Accounts payable, accrued expenses and other liabilities |     |              | (67  | )            |      |              | (30  | )            |      |              | 115  |             |      |              | (20  | ) |      |     | 8      |   |     |    | 8    |   |      |     | (33  | )
|                                               |                                                                                                    |                                                                       | Accrued interest                                         |     |              |     |              |      |              |     |              |      |              |     |             |      |              |     |   |      |     |       |   |     |    |     |   |      |     |     |  
|                                               |                                                                                                    |                                                                       | Due from subsidiaries                                    |     |              | (370 | )            |      |              | (444 | )            |      |              | (153 | )           |      |              | 56   |   |      |     | (1,171 | ) |     |    | (350 | ) |      |     | (559 | )
|                                               |                                                                                                    |                                                                       | Income taxes payable                                     |     |              |     |              |      |              |     |              |      |              |     |             |      |              |     |   |      |     |       |   |     |    |     |   |      |     |     |  
|                                               |                                                                                                    |                                                                       |                                                          |     |              |      |              |      |              |      |              |      |              |      |             |      |              |      |   |      |     |        |   |     |    |      |   |      |    
|                                               |                                                                                                    |                                                                       | Net cash provided by (used in) operating activities      |     |              | 43   |              |      |              | 270  |              |      |              | 353  |             |      |              | (233 | ) |      |     | 107    |   |     |    | 62   |   |      |     | 380  |  
|                                               |                                                                                                    |                                                                       |                                                          |     |              |      |              |      |              |      |              |      |              |      |             |      |              |      |   |      |     |        |   |     |    |      |   |      |    
|Cash flows from investing activities:          |                                                                                                    |                                                                       |                                                          |     |              |      |              |      |              |      |              |      |              |      |             |      |              |      |   |      |     |        |   |     |    |      |   |     
|                                               | Investment in hotel properties, net                                                                |                                                                       |                                                          | (43 | )            |      |              | (270 | )            |      |              | (353 | )            |      |             | 233  |              |      |   | (107 | )   |        |   | (62 | )  |      |   | (380 | )  
|                                               | Proceeds from disposition of assets                                                                |                                                                       |                                                          |    |              |      |              |     |              |      |              |     |              |      |             |     |              |      |   |     |     |        |   |    |    |      |   |     |    
|                                               | Hotel operating cash received in connection with lease conversions                                 |                                                                       |                                                          |     |              |      |              |      |              |      |              |      |              |      |             |      |              |      |   |      |     |        |   |     |    |      |   |      |    
|                                               | Note receivable to MeriStar Hotels                                                                 |                                                                       |                                                          |    |              |      |              |     |              |      |              |     |              |      |             |     |              |      |   |     |     |        |   |    |    |      |   |     |    
|                                               | Change in restricted cash                                                                          |                                                                       |                                                          |    |              |      |              |     |              |      |              |     |              |      |             |     |              |      |   |     |     |        |   |    |    |      |   |     |    
|                                               |                                                                                                    |                                                                       |                                                          |     |              |      |              |      |              |      |              |      |              |      |             |      |              |      |   |      |     |        |   |     |    |      |   |      |    
|                                               |                                                                                                    |                                                                       | Net cash used in investing activities                    |     |              | (43  | )            |      |              | (270 | )            |      |              | (353 | )           |      |              | 233  |   |      |     | (107   | ) |     |    | (62  | ) |      |     | (380 | )
|                                               |                                                                                                    |                                                                       |                                                          |     |              |      |              |      |              |      |              |      |              |      |             |      |              |      |   |      |     |        |   |     |    |      |   |      |    
|Cash flows from financing activities:          |                                                                                                    |                                                                       |                                                          |     |              |      |              |      |              |      |              |      |              |      |             |      |              |      |   |      |     |        |   |     |    |      |   |     
|                                               | Deferred financing costs                                                                           |                                                                       |                                                          |    |              |      |              |     |              |      |              |     |              |      |             |     |              |      |   |     |     |        |   |    |    |      |   |     |    
|                                               | Proceeds from issuances of mortgages and notes payable                                             |                                                                       |                                                          |    |              |      |              |     |              |      |              |     |              |      |             |     |              |      |   |     |     |        |   |    |    |      |   |     |    
|                                               | Principal payments on mortgages and notes payable                                                  |                                                                       |                                                          |    |              |      |              |     |              |      |              |     |              |      |             |     |              |      |   |     |     |        |   |    |    |      |   |     |    
|                                               | Repurchase of units                                                                                |                                                                       |                                                          |    |              |      |              |     |              |      |              |     |              |      |             |     |              |      |   |     |     |        |   |    |    |      |   |     |    
|                                               | Contributions from partners                                                                        |                                                                       |                                                          |    |              |      |              |     |              |      |              |     |              |      |             |     |              |      |   |     |     |        |   |    |    |      |   |     |    
|                                               | Distributions paid to partners                                                                     |                                                                       |                                                          |    |              |      |              |     |              |      |              |     |              |      |             |     |              |      |   |     |     |        |   |    |    |      |   |     |    
|                                               |                                                                                                    |                                                                       |                                                          |     |              |      |              |      |              |      |              |      |              |      |             |      |              |      |   |      |     |        |   |     |    |      |   |      |    
|                                               |                                                                                                    |                                                                       | Net cash used in financing activities                    |     |              |     |              |      |              |     |              |      |              |     |             |      |              |     |   |      |     |       |   |     |    |     |   |      |     |     |  
|                                               |                                                                                                    |                                                                       |                                                          |     |              |      |              |      |              |      |              |      |              |      |             |      |              |      |   |      |     |        |   |     |    |      |   |      |    
|Effect of exchange rate changes on cash        |                                                                                                    |                                                                       |                                                         |     |              |      |             |      |              |      |             |      |              |      |            |      |              |      |  |      |     |        |  |     |    |      |  |     
|                                               |                                                                                                    |                                                                       |                                                          |     |              |      |              |      |              |      |              |      |              |      |             |      |              |      |   |      |     |        |   |     |    |      |   |      |    
|Net change in cash                             |                                                                                                    |                                                                       |                                                         |     |              |      |             |      |              |      |             |      |              |      |            |      |              |      |  |      |     |        |  |     |    |      |  |     
|Cash and cash equivalents, beginning of period |                                                                                                    |                                                                       |                                                         |     |              |      |             |      |              |      |             |      |              |      |            |      |              |      |  |      |     |        |  |     |    |      |  |     
|                                               |                                                                                                    |                                                                       |                                                          |     |              |      |              |      |              |      |              |      |              |      |             |      |              |      |   |      |     |        |   |     |    |      |   |      |    
|Cash and cash equivalents, end of period       |                                                                                                    |                                                                       |                                                         |     |              |      |             |      |              |      |             |      |              |      |            |      |              |      |  |      |     |        |  |     |    |      |  |     
|                                               |                                                                                                    |                                                                       |                                                          |     |              |      |              |      |              |      |              |      |              |      |             |      |              |      |   |      |     |        |   |     |    |      |   |      |    





---



##### 



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



|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |      |              |      |              |       |              |        |   |      |     |      |   |     |     |      |   |      |     |     |  
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------- | -------------------------------------------------------- | ----- | ------------ | ------ | ------------ | ----- | ------------ | ------ | ------------ | ---- | ------------ | ---- | ------------ | ----- | ------------ | ------ | - | ---- | --- | ---- | - | --- | --- | ---- | - | ---- | --- | --- | -
|                                               |                                                                                                    |                                                                       |                                                          |       | MeriStar Sub |        | MeriStar Sub |       | MeriStar Sub |        | MeriStar Sub |      | MeriStar Sub |      | MeriStar Sub |       | MeriStar Sub
|                                               |                                                                                                    |                                                                       |                                                          |       | 6J, LLC      |        | 1D, L.P.     |       | 7B, L.P.     |        | 7D, LLC      |      | 7G, LLC      |      | 6B, LLC      |       | 4I, L.P.    
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |      |              |      |              |       |             
|Cash flows from operating activities:          |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |      |              |      |              |       |              |        |   |      |     |      |   |     |     |      |   |     
|                                               | Net income (loss)                                                                                  |                                                                       |                                                          | 1,346 |              |        |              | 2,756 |              |        |              | (159 | )            |      |              | 2,657 |              |        |   | (22  | )   |      |   | 346 |     |      |   | (820 | )  
|                                               | Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities: |                                                                       |                                                          |       |              |        |              |       |              |        |              |      |              |      |              |       |              |        |   |      |     |      |   |     |     |      |   |      |    
|                                               |                                                                                                    | Depreciation and amortization                                         |                                                          |       | 450          |        |              |       | 1,628        |        |              |      | 657          |      |              |       | 1,189        |        |   |      | 544 |      |   |     | 338 |      |   |      | 638 |    
|                                               |                                                                                                    | Equity in earnings                                                    |                                                          |       |              |        |              |       |              |        |              |      |              |      |              |       |              |        |   |      |     |      |   |     |     |      |   |      |     |    
|                                               |                                                                                                    | Loss on sale of assets, net of tax                                    |                                                          |       |             |        |              |       |             |        |              |      |             |      |              |       |             |        |   |      |    |      |   |     |    |      |   |      |    |    
|                                               |                                                                                                    | Write down of investment in STS Hotel Net                             |                                                          |       |             |        |              |       |             |        |              |      |             |      |              |       |             |        |   |      |    |      |   |     |    |      |   |      |    |    
|                                               |                                                                                                    | Extraordinary loss on early extinguishment of debt, before tax effect |                                                          |       |             |        |              |       |             |        |              |      |             |      |              |       |             |        |   |      |    |      |   |     |    |      |   |      |    |    
|                                               |                                                                                                    | Minority interests                                                    |                                                          |       |             |        |              |       |             |        |              |      |             |      |              |       |             |        |   |      |    |      |   |     |    |      |   |      |    |    
|                                               |                                                                                                    | Amortization of unearned stock based compensation                     |                                                          |       |             |        |              |       |             |        |              |      |             |      |              |       |             |        |   |      |    |      |   |     |    |      |   |      |    |    
|                                               |                                                                                                    | Interest rate swaps marked to fair value                              |                                                          |       |             |        |              |       |             |        |              |      |             |      |              |       |             |        |   |      |    |      |   |     |    |      |   |      |    |    
|                                               |                                                                                                    | Deferred income taxes                                                 |                                                          |       |             |        |              |       |             |        |              |      |             |      |              |       |             |        |   |      |    |      |   |     |    |      |   |      |    |    
|                                               |                                                                                                    | Changes in operating assets and liabilities:                          |                                                          |       |              |        |              |       |              |        |              |      |              |      |              |       |              |        |   |      |     |      |   |     |     |      |   |      |     |    
|                                               |                                                                                                    |                                                                       | Accounts receivable, net                                 |       |              | 19     |              |       |              | 30     |              |      |              | (13  | )            |       |              | 844    |   |      |     |     |   |     |     |     |   |      |     |    |  
|                                               |                                                                                                    |                                                                       | Prepaid expenses and other                               |       |              | (6     | )            |       |              | (20    | )            |      |              |     |              |       |              |       |   |      |     | (4   | ) |     |     | (1   | ) |      |     | (7  | )
|                                               |                                                                                                    |                                                                       | Due from/to MeriStar Hotels                              |       |              | (1     | )            |       |              | (32    | )            |      |              | (1   | )            |       |              | (204   | ) |      |     |     |   |     |     |     |   |      |     |    |  
|                                               |                                                                                                    |                                                                       | Accounts payable, accrued expenses and other liabilities |       |              | (90    | )            |       |              | 199    |              |      |              | 394  |              |       |              | 989    |   |      |     | (93  | ) |     |     | (4   | ) |      |     | (20 | )
|                                               |                                                                                                    |                                                                       | Accrued interest                                         |       |              |       |              |       |              | 43     |              |      |              |     |              |       |              |       |   |      |     |     |   |     |     |     |   |      |     |    |  
|                                               |                                                                                                    |                                                                       | Due from subsidiaries                                    |       |              | (1,402 | )            |       |              | (3,926 | )            |      |              | (641 | )            |       |              | (4,627 | ) |      |     | (122 | ) |     |     | (618 | ) |      |     | 254 |  
|                                               |                                                                                                    |                                                                       | Income taxes payable                                     |       |              |       |              |       |              |       |              |      |              |     |              |       |              |       |   |      |     |     |   |     |     |     |   |      |     |    |  
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |      |              |      |              |       |              |        |   |      |     |      |   |     |     |      |   |      |    
|                                               |                                                                                                    |                                                                       | Net cash provided by (used in) operating activities      |       |              | 316    |              |       |              | 678    |              |      |              | 237  |              |       |              | 848    |   |      |     | 303  |   |     |     | 61   |   |      |     | 45  |  
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |      |              |      |              |       |              |        |   |      |     |      |   |     |     |      |   |      |    
|Cash flows from investing activities:          |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |      |              |      |              |       |              |        |   |      |     |      |   |     |     |      |   |     
|                                               | Investment in hotel properties, net                                                                |                                                                       |                                                          | (316  | )            |        |              | (678  | )            |        |              | (237 | )            |      |              | (848  | )            |        |   | (303 | )   |      |   | (61 | )   |      |   | (45  | )  
|                                               | Proceeds from disposition of assets                                                                |                                                                       |                                                          |      |              |        |              |      |              |        |              |     |              |      |              |      |              |        |   |     |     |      |   |    |     |      |   |     |    
|                                               | Hotel operating cash received in connection with lease conversions                                 |                                                                       |                                                          |       |              |        |              |       |              |        |              |      |              |      |              |       |              |        |   |      |     |      |   |     |     |      |   |      |    
|                                               | Note receivable to MeriStar Hotels                                                                 |                                                                       |                                                          |      |              |        |              |      |              |        |              |     |              |      |              |      |              |        |   |     |     |      |   |    |     |      |   |     |    
|                                               | Change in restricted cash                                                                          |                                                                       |                                                          |      |              |        |              |      |              |        |              |     |              |      |              |      |              |        |   |     |     |      |   |    |     |      |   |     |    
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |      |              |      |              |       |              |        |   |      |     |      |   |     |     |      |   |      |    
|                                               |                                                                                                    |                                                                       | Net cash used in investing activities                    |       |              | (316   | )            |       |              | (678   | )            |      |              | (237 | )            |       |              | (848   | ) |      |     | (303 | ) |     |     | (61  | ) |      |     | (45 | )
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |      |              |      |              |       |              |        |   |      |     |      |   |     |     |      |   |      |    
|Cash flows from financing activities:          |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |      |              |      |              |       |              |        |   |      |     |      |   |     |     |      |   |     
|                                               | Deferred financing costs                                                                           |                                                                       |                                                          |      |              |        |              |      |              |        |              |     |              |      |              |      |              |        |   |     |     |      |   |    |     |      |   |     |    
|                                               | Proceeds from issuances of mortgages and notes payable                                             |                                                                       |                                                          |      |              |        |              |      |              |        |              |     |              |      |              |      |              |        |   |     |     |      |   |    |     |      |   |     |    
|                                               | Principal payments on mortgages and notes payable                                                  |                                                                       |                                                          |      |              |        |              |      |              |        |              |     |              |      |              |      |              |        |   |     |     |      |   |    |     |      |   |     |    
|                                               | Repurchase of units                                                                                |                                                                       |                                                          |      |              |        |              |      |              |        |              |     |              |      |              |      |              |        |   |     |     |      |   |    |     |      |   |     |    
|                                               | Contributions from partners                                                                        |                                                                       |                                                          |      |              |        |              |      |              |        |              |     |              |      |              |      |              |        |   |     |     |      |   |    |     |      |   |     |    
|                                               | Distributions paid to partners                                                                     |                                                                       |                                                          |      |              |        |              |      |              |        |              |     |              |      |              |      |              |        |   |     |     |      |   |    |     |      |   |     |    
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |      |              |      |              |       |              |        |   |      |     |      |   |     |     |      |   |      |    
|                                               |                                                                                                    |                                                                       | Net cash used in financing activities                    |       |              |       |              |       |              |       |              |      |              |     |              |       |              |       |   |      |     |     |   |     |     |     |   |      |     |    |  
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |      |              |      |              |       |              |        |   |      |     |      |   |     |     |      |   |      |    
|Effect of exchange rate changes on cash        |                                                                                                    |                                                                       |                                                         |       |              |        |             |       |              |        |             |      |              |      |             |       |              |        |  |      |     |      |  |     |     |      |  |     
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |      |              |      |              |       |              |        |   |      |     |      |   |     |     |      |   |      |    
|Net change in cash                             |                                                                                                    |                                                                       |                                                         |       |              |        |             |       |              |        |             |      |              |      |             |       |              |        |  |      |     |      |  |     |     |      |  |     
|Cash and cash equivalents, beginning of period |                                                                                                    |                                                                       |                                                         |       |              |        |             |       |              |        |             |      |              |      |             |       |              |        |  |      |     |      |  |     |     |      |  |     
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |      |              |      |              |       |              |        |   |      |     |      |   |     |     |      |   |      |    
|Cash and cash equivalents, end of period       |                                                                                                    |                                                                       |                                                         |       |              |        |             |       |              |        |             |      |              |      |             |       |              |        |  |      |     |      |  |     |     |      |  |     
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |      |              |      |              |       |              |        |   |      |     |      |   |     |     |      |   |      |    



---



##### 



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

|                                               |                                                                                                    |                                                                       |                                                          |        |              |        |              |       |              |        |            |      |              |      |              |       |              |        |   |     |     |        |   |      |     |        |   |       |     |        |  
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------- | -------------------------------------------------------- | ------ | ------------ | ------ | ------------ | ----- | ------------ | ------ | ---------- | ---- | ------------ | ---- | ------------ | ----- | ------------ | ------ | - | --- | --- | ------ | - | ---- | --- | ------ | - | ----- | --- | ------ | -
|                                               |                                                                                                    |                                                                       |                                                          |        | MeriStar Sub |        | MeriStar Sub |       | MeriStar Sub |        | AGH PSS I, |      | MeriStar Sub |      | MeriStar Sub |       | MeriStar Sub
|                                               |                                                                                                    |                                                                       |                                                          |        | 5D, LLC      |        | 5H, LLC      |       | 7H, LLC      |        | Inc.       |      | 2D, LLC      |      | 4F, L.P.     |       | 5K, LLC     
|                                               |                                                                                                    |                                                                       |                                                          |        |              |        |              |       |              |        |            |      |              |      |              |       |             
|Cash flows from operating activities:          |                                                                                                    |                                                                       |                                                          |        |              |        |              |       |              |        |            |      |              |      |              |       |              |        |   |     |     |        |   |      |     |        |   |      
|                                               | Net income (loss)                                                                                  |                                                                       |                                                          | (1,281 | )            |        |              | 2,095 |              |        |            | 213  |              |      |              | 1,214 |              |        |   | (87 | )   |        |   | 650  |     |        |   | 1,025 |    
|                                               | Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities: |                                                                       |                                                          |        |              |        |              |       |              |        |            |      |              |      |              |       |              |        |   |     |     |        |   |      |     |        |   |       |    
|                                               |                                                                                                    | Depreciation and amortization                                         |                                                          |        | 1,058        |        |              |       | 1,459        |        |            |      | 520          |      |              |       |             |        |   |     | 347 |        |   |      | 812 |        |   |       | 886 |       
|                                               |                                                                                                    | Equity in earnings                                                    |                                                          |        |              |        |              |       |              |        |            |      |              |      |              |       |              |        |   |     |     |        |   |      |     |        |   |       |     |       
|                                               |                                                                                                    | Loss on sale of assets, net of tax                                    |                                                          |        |             |        |              |       |             |        |            |      |             |      |              |       | 1,095        |        |   |     |    |        |   |      |    |        |   |       |    |       
|                                               |                                                                                                    | Write down of investment in STS Hotel Net                             |                                                          |        |             |        |              |       |             |        |            |      |             |      |              |       |             |        |   |     |    |        |   |      |    |        |   |       |    |       
|                                               |                                                                                                    | Extraordinary loss on early extinguishment of debt, before tax effect |                                                          |        |             |        |              |       |             |        |            |      |             |      |              |       |             |        |   |     |    |        |   |      |    |        |   |       |    |       
|                                               |                                                                                                    | Minority interests                                                    |                                                          |        |             |        |              |       |             |        |            |      |             |      |              |       |             |        |   |     |    |        |   |      |    |        |   |       |    |       
|                                               |                                                                                                    | Amortization of unearned stock based compensation                     |                                                          |        |             |        |              |       |             |        |            |      |             |      |              |       |             |        |   |     |    |        |   |      |    |        |   |       |    |       
|                                               |                                                                                                    | Interest rate swaps marked to fair value                              |                                                          |        |             |        |              |       |             |        |            |      |             |      |              |       |             |        |   |     |    |        |   |      |    |        |   |       |    |       
|                                               |                                                                                                    | Deferred income taxes                                                 |                                                          |        |             |        |              |       |             |        |            |      |             |      |              |       |             |        |   |     |    |        |   |      |    |        |   |       |    |       
|                                               |                                                                                                    | Changes in operating assets and liabilities:                          |                                                          |        |              |        |              |       |              |        |            |      |              |      |              |       |              |        |   |     |     |        |   |      |     |        |   |       |     |       
|                                               |                                                                                                    |                                                                       | Accounts receivable, net                                 |        |              | (24    | )            |       |              |       |            |      |              | (39  | )            |       |              | (908   | ) |     |     |       |   |      |     | (4     | ) |       |     |       |  
|                                               |                                                                                                    |                                                                       | Prepaid expenses and other                               |        |              | (53    | )            |       |              |       |            |      |              |     |              |       |              | (10    | ) |     |     |       |   |      |     |       |   |       |     |       |  
|                                               |                                                                                                    |                                                                       | Due from/to MeriStar Hotels                              |        |              | 1,544  |              |       |              | 27     |            |      |              |     |              |       |              |       |   |     |     | 1,226  |   |      |     |       |   |       |     | 132    |  
|                                               |                                                                                                    |                                                                       | Accounts payable, accrued expenses and other liabilities |        |              | 505    |              |       |              | 208    |            |      |              | 41   |              |       |              | 292    |   |     |     | (44    | ) |      |     | (14    | ) |       |     | (2,273 | )
|                                               |                                                                                                    |                                                                       | Accrued interest                                         |        |              |       |              |       |              |       |            |      |              |     |              |       |              |       |   |     |     |       |   |      |     |       |   |       |     |       |  
|                                               |                                                                                                    |                                                                       | Due from subsidiaries                                    |        |              | (1,568 | )            |       |              | (3,597 | )          |      |              | (558 | )            |       |              | (5,437 | ) |     |     | (2,072 | ) |      |     | (1,315 | ) |       |     | 794    |  
|                                               |                                                                                                    |                                                                       | Income taxes payable                                     |        |              |       |              |       |              |       |            |      |              |     |              |       |              |       |   |     |     |       |   |      |     |       |   |       |     |       |  
|                                               |                                                                                                    |                                                                       |                                                          |        |              |        |              |       |              |        |            |      |              |      |              |       |              |        |   |     |     |        |   |      |     |        |   |       |    
|                                               |                                                                                                    |                                                                       | Net cash provided by (used in) operating activities      |        |              | 181    |              |       |              | 192    |            |      |              | 177  |              |       |              | (3,754 | ) |     |     | (630   | ) |      |     | 129    |   |       |     | 564    |  
|                                               |                                                                                                    |                                                                       |                                                          |        |              |        |              |       |              |        |            |      |              |      |              |       |              |        |   |     |     |        |   |      |     |        |   |       |    
|Cash flows from investing activities:          |                                                                                                    |                                                                       |                                                          |        |              |        |              |       |              |        |            |      |              |      |              |       |              |        |   |     |     |        |   |      |     |        |   |      
|                                               | Investment in hotel properties, net                                                                |                                                                       |                                                          | (181   | )            |        |              | (192  | )            |        |            | (177 | )            |      |              | 1,313 |              |        |   | 630 |     |        |   | (129 | )   |        |   | (564  | )  
|                                               | Proceeds from disposition of assets                                                                |                                                                       |                                                          |       |              |        |              |      |              |        |            |     |              |      |              | 2,441 |              |        |   |    |     |        |   |     |     |        |   |      |    
|                                               | Hotel operating cash received in connection with lease conversions                                 |                                                                       |                                                          |        |              |        |              |       |              |        |            |      |              |      |              |       |              |        |   |     |     |        |   |      |     |        |   |       |    
|                                               | Note receivable to MeriStar Hotels                                                                 |                                                                       |                                                          |       |              |        |              |      |              |        |            |     |              |      |              |      |              |        |   |    |     |        |   |     |     |        |   |      |    
|                                               | Change in restricted cash                                                                          |                                                                       |                                                          |       |              |        |              |      |              |        |            |     |              |      |              |      |              |        |   |    |     |        |   |     |     |        |   |      |    
|                                               |                                                                                                    |                                                                       |                                                          |        |              |        |              |       |              |        |            |      |              |      |              |       |              |        |   |     |     |        |   |      |     |        |   |       |    
|                                               |                                                                                                    |                                                                       | Net cash provided by (used in) investing activities      |        |              | (181   | )            |       |              | (192   | )          |      |              | (177 | )            |       |              | 3,754  |   |     |     | 630    |   |      |     | (129   | ) |       |     | (564   | )
|                                               |                                                                                                    |                                                                       |                                                          |        |              |        |              |       |              |        |            |      |              |      |              |       |              |        |   |     |     |        |   |      |     |        |   |       |    
|Cash flows from financing activities:          |                                                                                                    |                                                                       |                                                          |        |              |        |              |       |              |        |            |      |              |      |              |       |              |        |   |     |     |        |   |      |     |        |   |      
|                                               | Deferred financing costs                                                                           |                                                                       |                                                          |       |              |        |              |      |              |        |            |     |              |      |              |      |              |        |   |    |     |        |   |     |     |        |   |      |    
|                                               | Proceeds from issuances of mortgages and notes payable                                             |                                                                       |                                                          |       |              |        |              |      |              |        |            |     |              |      |              |      |              |        |   |    |     |        |   |     |     |        |   |      |    
|                                               | Principal payments on mortgages and notes payable                                                  |                                                                       |                                                          |       |              |        |              |      |              |        |            |     |              |      |              |      |              |        |   |    |     |        |   |     |     |        |   |      |    
|                                               | Repurchase of units                                                                                |                                                                       |                                                          |       |              |        |              |      |              |        |            |     |              |      |              |      |              |        |   |    |     |        |   |     |     |        |   |      |    
|                                               | Contributions from partners                                                                        |                                                                       |                                                          |       |              |        |              |      |              |        |            |     |              |      |              |      |              |        |   |    |     |        |   |     |     |        |   |      |    
|                                               | Distributions paid to partners                                                                     |                                                                       |                                                          |       |              |        |              |      |              |        |            |     |              |      |              |      |              |        |   |    |     |        |   |     |     |        |   |      |    
|                                               |                                                                                                    |                                                                       |                                                          |        |              |        |              |       |              |        |            |      |              |      |              |       |              |        |   |     |     |        |   |      |     |        |   |       |    
|                                               |                                                                                                    |                                                                       | Net cash used in financing activities                    |        |              |       |              |       |              |       |            |      |              |     |              |       |              |       |   |     |     |       |   |      |     |       |   |       |     |       |  
|                                               |                                                                                                    |                                                                       |                                                          |        |              |        |              |       |              |        |            |      |              |      |              |       |              |        |   |     |     |        |   |      |     |        |   |       |    
|Effect of exchange rate changes on cash        |                                                                                                    |                                                                       |                                                         |        |              |        |             |       |              |        |           |      |              |      |             |       |              |        |  |     |     |        |  |      |     |        |  |      
|                                               |                                                                                                    |                                                                       |                                                          |        |              |        |              |       |              |        |            |      |              |      |              |       |              |        |   |     |     |        |   |      |     |        |   |       |    
|Net change in cash                             |                                                                                                    |                                                                       |                                                         |        |              |        |             |       |              |        |           |      |              |      |             |       |              |        |  |     |     |        |  |      |     |        |  |      
|Cash and cash equivalents, beginning of period |                                                                                                    |                                                                       |                                                         |        |              |        |             |       |              |        |           |      |              |      |             |       |              |        |  |     |     |        |  |      |     |        |  |      
|                                               |                                                                                                    |                                                                       |                                                          |        |              |        |              |       |              |        |            |      |              |      |              |       |              |        |   |     |     |        |   |      |     |        |   |       |    
|Cash and cash equivalents, end of period       |                                                                                                    |                                                                       |                                                         |        |              |        |             |       |              |        |           |      |              |      |             |       |              |        |  |     |     |        |  |      |     |        |  |      
|                                               |                                                                                                    |                                                                       |                                                          |        |              |        |              |       |              |        |            |      |              |      |              |       |              |        |   |     |     |        |   |      |     |        |   |       |    





---



##### 



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



|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |     |              |      |              |       |              |        |   |        |     |        |   |       |     |        |   |      |     |        |  
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------- | -------------------------------------------------------- | ----- | ------------ | ------ | ------------ | ----- | ------------ | ------ | ------------ | --- | ------------ | ---- | ------------ | ----- | ------------ | ------ | - | ------ | --- | ------ | - | ----- | --- | ------ | - | ---- | --- | ------ | -
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |     |              |      |              |       |              |        |   |        |     |        |   |       |     |        |   |      |    
|                                               |                                                                                                    |                                                                       |                                                          |       | MeriStar Sub |        | MeriStar Sub |       | MeriStar Sub |        | MeriStar Sub |     | MeriStar Sub |      | MeriStar Sub |       | MeriStar Sub
|                                               |                                                                                                    |                                                                       |                                                          |       | 5M, LLC      |        | 1E, L.P.     |       | 5O, LLC      |        | 6M Company   |     | 4B, L.P.     |      | 6C, LLC      |       | 2C, LLC     
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |     |              |      |              |       |             
|Cash flows from operating activities:          |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |     |              |      |              |       |              |        |   |        |     |        |   |       |     |        |   |     
|                                               | Net income (loss)                                                                                  |                                                                       |                                                          | 1,450 |              |        |              | 1,089 |              |        |              | 512 |              |      |              | 2,667 |              |        |   | (903   | )   |        |   | 1,790 |     |        |   | (749 | )  
|                                               | Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities: |                                                                       |                                                          |       |              |        |              |       |              |        |              |     |              |      |              |       |              |        |   |        |     |        |   |       |     |        |   |      |    
|                                               |                                                                                                    | Depreciation and amortization                                         |                                                          |       | 330          |        |              |       | 216          |        |              |     | 166          |      |              |       | 894          |        |   |        | 820 |        |   |       | 559 |        |   |      | 773 |       
|                                               |                                                                                                    | Equity in earnings                                                    |                                                          |       |              |        |              |       |              |        |              |     |              |      |              |       |              |        |   |        |     |        |   |       |     |        |   |      |     |       
|                                               |                                                                                                    | Loss on sale of assets, net of tax                                    |                                                          |       |             |        |              |       |             |        |              |     |             |      |              |       |             |        |   |        |    |        |   |       |    |        |   |      |    |       
|                                               |                                                                                                    | Write down of investment in STS Hotel Net                             |                                                          |       |             |        |              |       |             |        |              |     |             |      |              |       |             |        |   |        |    |        |   |       |    |        |   |      |    |       
|                                               |                                                                                                    | Extraordinary loss on early extinguishment of debt, before tax effect |                                                          |       |             |        |              |       |             |        |              |     |             |      |              |       |             |        |   |        |    |        |   |       |    |        |   |      |    |       
|                                               |                                                                                                    | Minority interests                                                    |                                                          |       |             |        |              |       |             |        |              |     |             |      |              |       |             |        |   |        |    |        |   |       |    |        |   |      |    |       
|                                               |                                                                                                    | Amortization of unearned stock based compensation                     |                                                          |       |             |        |              |       |             |        |              |     |             |      |              |       |             |        |   |        |    |        |   |       |    |        |   |      |    |       
|                                               |                                                                                                    | Interest rate swaps marked to fair value                              |                                                          |       |             |        |              |       |             |        |              |     |             |      |              |       |             |        |   |        |    |        |   |       |    |        |   |      |    |       
|                                               |                                                                                                    | Deferred income taxes                                                 |                                                          |       |             |        |              |       |             |        |              |     |             |      |              |       |             |        |   |        |    |        |   |       |    |        |   |      |    |       
|                                               |                                                                                                    | Changes in operating assets and liabilities:                          |                                                          |       |              |        |              |       |              |        |              |     |              |      |              |       |              |        |   |        |     |        |   |       |     |        |   |      |     |       
|                                               |                                                                                                    |                                                                       | Accounts receivable, net                                 |       |              |       |              |       |              | 35     |              |     |              |     |              |       |              | 72     |   |        |     |       |   |       |     | 56     |   |      |     |       |  
|                                               |                                                                                                    |                                                                       | Prepaid expenses and other                               |       |              |       |              |       |              |       |              |     |              |     |              |       |              | (62    | ) |        |     | (6     | ) |       |     | 98     |   |      |     |       |  
|                                               |                                                                                                    |                                                                       | Due from/to MeriStar Hotels                              |       |              | 59     |              |       |              | (1     | )            |     |              | 3    |              |       |              |       |   |        |     |       |   |       |     |       |   |      |     | 3,278  |  
|                                               |                                                                                                    |                                                                       | Accounts payable, accrued expenses and other liabilities |       |              | 95     |              |       |              | 19     |              |     |              | 37   |              |       |              | (87    | ) |        |     | (26    | ) |       |     | (2     | ) |      |     | 3      |  
|                                               |                                                                                                    |                                                                       | Accrued interest                                         |       |              |       |              |       |              |       |              |     |              |     |              |       |              |       |   |        |     |       |   |       |     |       |   |      |     |       |  
|                                               |                                                                                                    |                                                                       | Due from subsidiaries                                    |       |              | (1,748 | )            |       |              | (1,203 | )            |     |              | (670 | )            |       |              | (3,315 | ) |        |     | 1,900  |   |       |     | (2,213 | ) |      |     | (4,283 | )
|                                               |                                                                                                    |                                                                       | Income taxes payable                                     |       |              |       |              |       |              |       |              |     |              |     |              |       |              |       |   |        |     |       |   |       |     |       |   |      |     |       |  
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |     |              |      |              |       |              |        |   |        |     |        |   |       |     |        |   |      |    
|                                               |                                                                                                    |                                                                       | Net cash provided by (used in) operating activities      |       |              | 186    |              |       |              | 155    |              |     |              | 48   |              |       |              | 169    |   |        |     | 1,785  |   |       |     | 288    |   |      |     | (978   | )
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |     |              |      |              |       |              |        |   |        |     |        |   |       |     |        |   |      |    
|Cash flows from investing activities:          |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |     |              |      |              |       |              |        |   |        |     |        |   |       |     |        |   |     
|                                               | Investment in hotel properties, net                                                                |                                                                       |                                                          | (186  | )            |        |              | (155  | )            |        |              | (48 | )            |      |              | (169  | )            |        |   | (1,785 | )   |        |   | (288  | )   |        |   | 978  |    
|                                               | Proceeds from disposition of assets                                                                |                                                                       |                                                          |      |              |        |              |      |              |        |              |    |              |      |              |      |              |        |   |       |     |        |   |      |     |        |   |     |    
|                                               | Hotel operating cash received in connection with lease conversions                                 |                                                                       |                                                          |       |              |        |              |       |              |        |              |     |              |      |              |       |              |        |   |        |     |        |   |       |     |        |   |      |    
|                                               | Note receivable to MeriStar Hotels                                                                 |                                                                       |                                                          |      |              |        |              |      |              |        |              |    |              |      |              |      |              |        |   |       |     |        |   |      |     |        |   |     |    
|                                               | Change in restricted cash                                                                          |                                                                       |                                                          |      |              |        |              |      |              |        |              |    |              |      |              |      |              |        |   |       |     |        |   |      |     |        |   |     |    
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |     |              |      |              |       |              |        |   |        |     |        |   |       |     |        |   |      |    
|                                               |                                                                                                    |                                                                       | Net cash provided by (used in) investing activities      |       |              | (186   | )            |       |              | (155   | )            |     |              | (48  | )            |       |              | (169   | ) |        |     | (1,785 | ) |       |     | (288   | ) |      |     | 978    |  
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |     |              |      |              |       |              |        |   |        |     |        |   |       |     |        |   |      |    
|Cash flows from financing activities:          |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |     |              |      |              |       |              |        |   |        |     |        |   |       |     |        |   |     
|                                               | Deferred financing costs                                                                           |                                                                       |                                                          |      |              |        |              |      |              |        |              |    |              |      |              |      |              |        |   |       |     |        |   |      |     |        |   |     |    
|                                               | Proceeds from issuances of mortgages and notes payable                                             |                                                                       |                                                          |      |              |        |              |      |              |        |              |    |              |      |              |      |              |        |   |       |     |        |   |      |     |        |   |     |    
|                                               | Principal payments on mortgages and notes payable                                                  |                                                                       |                                                          |      |              |        |              |      |              |        |              |    |              |      |              |      |              |        |   |       |     |        |   |      |     |        |   |     |    
|                                               | Repurchase of units                                                                                |                                                                       |                                                          |      |              |        |              |      |              |        |              |    |              |      |              |      |              |        |   |       |     |        |   |      |     |        |   |     |    
|                                               | Contributions from partners                                                                        |                                                                       |                                                          |      |              |        |              |      |              |        |              |    |              |      |              |      |              |        |   |       |     |        |   |      |     |        |   |     |    
|                                               | Distributions paid to partners                                                                     |                                                                       |                                                          |      |              |        |              |      |              |        |              |    |              |      |              |      |              |        |   |       |     |        |   |      |     |        |   |     |    
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |     |              |      |              |       |              |        |   |        |     |        |   |       |     |        |   |      |    
|                                               |                                                                                                    |                                                                       | Net cash used in financing activities                    |       |              |       |              |       |              |       |              |     |              |     |              |       |              |       |   |        |     |       |   |       |     |       |   |      |     |       |  
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |     |              |      |              |       |              |        |   |        |     |        |   |       |     |        |   |      |    
|Effect of exchange rate changes on cash        |                                                                                                    |                                                                       |                                                         |       |              |        |             |       |              |        |             |     |              |      |             |       |              |        |  |        |     |        |  |       |     |        |  |     
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |     |              |      |              |       |              |        |   |        |     |        |   |       |     |        |   |      |    
|Net change in cash                             |                                                                                                    |                                                                       |                                                         |       |              |        |             |       |              |        |             |     |              |      |             |       |              |        |  |        |     |        |  |       |     |        |  |     
|Cash and cash equivalents, beginning of period |                                                                                                    |                                                                       |                                                         |       |              |        |             |       |              |        |             |     |              |      |             |       |              |        |  |        |     |        |  |       |     |        |  |     
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |     |              |      |              |       |              |        |   |        |     |        |   |       |     |        |   |      |    
|Cash and cash equivalents, end of period       |                                                                                                    |                                                                       |                                                         |       |              |        |             |       |              |        |             |     |              |      |             |       |              |        |  |        |     |        |  |       |     |        |  |     
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |       |              |        |              |     |              |      |              |       |              |        |   |        |     |        |   |       |     |        |   |      |    



---



##### 



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

|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |      |              |      |              |       |              |        |              |     |              |      |   |        |       |        |   |       |     |        |   |      |       |        |  
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------- | -------------------------------------------------------- | ----- | ------------ | ------ | ------------ | ---- | ------------ | ---- | ------------ | ----- | ------------ | ------ | ------------ | --- | ------------ | ---- | - | ------ | ----- | ------ | - | ----- | --- | ------ | - | ---- | ----- | ------ | -
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |      |              |      |              |       |              |        |              |     |              |      |   |        |       |        |   |       |     |        |   |      |      
|                                               |                                                                                                    |                                                                       |                                                          |       | MeriStar Sub |        | MeriStar Sub |      | MeriStar Sub |      | MeriStar Sub |       | MeriStar Sub |        | MeriStar Sub |     | MeriStar Sub
|                                               |                                                                                                    |                                                                       |                                                          |       | 4G, L.P.     |        | 3B, LLC      |      | 5G, L.P.     |      | 5P, LLC      |       | 5J, LLC      |        | 5Q, LLC      |     | 5A, LLC     
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |      |              |      |              |       |              |        |              |     |             
|Cash flows from operating activities:          |                                                                                                    |                                                                       |                                                          |       |              |        |              |      |              |      |              |       |              |        |              |     |              |      |   |        |       |        |   |       |     |        |   |     
|                                               | Net income (loss)                                                                                  |                                                                       |                                                          | 1,276 |              |        |              | 78   |              |      |              | 4,227 |              |        |              | 478 |              |      |   | 6,172  |       |        |   | 1,920 |     |        |   | 580  |      
|                                               | Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities: |                                                                       |                                                          |       |              |        |              |      |              |      |              |       |              |        |              |     |              |      |   |        |       |        |   |       |     |        |   |      |      
|                                               |                                                                                                    | Depreciation and amortization                                         |                                                          |       | 643          |        |              |      | 661          |      |              |       | 4,620        |        |              |     |             |      |   |        | 2,522 |        |   |       | 307 |        |   |      | 1,248 |       
|                                               |                                                                                                    | Equity in earnings                                                    |                                                          |       |              |        |              |      |              |      |              |       |              |        |              |     |              |      |   |        |       |        |   |       |     |        |   |      |       |       
|                                               |                                                                                                    | Loss on sale of assets, net of tax                                    |                                                          |       |             |        |              |      |             |      |              |       |             |        |              |     |             |      |   |        |      |        |   |       |    |        |   |      |      |       
|                                               |                                                                                                    | Write down of investment in STS Hotel Net                             |                                                          |       |             |        |              |      |             |      |              |       |             |        |              |     |             |      |   |        |      |        |   |       |    |        |   |      |      |       
|                                               |                                                                                                    | Extraordinary loss on early extinguishment of debt, before tax effect |                                                          |       |             |        |              |      |             |      |              |       |             |        |              |     |             |      |   |        |      |        |   |       |    |        |   |      |      |       
|                                               |                                                                                                    | Minority interests                                                    |                                                          |       |             |        |              |      |             |      |              |       |             |        |              |     |             |      |   |        |      |        |   |       |    |        |   |      |      |       
|                                               |                                                                                                    | Amortization of unearned stock based compensation                     |                                                          |       |             |        |              |      |             |      |              |       |             |        |              |     |             |      |   |        |      |        |   |       |    |        |   |      |      |       
|                                               |                                                                                                    | Interest rate swaps marked to fair value                              |                                                          |       |             |        |              |      |             |      |              |       |             |        |              |     |             |      |   |        |      |        |   |       |    |        |   |      |      |       
|                                               |                                                                                                    | Deferred income taxes                                                 |                                                          |       |             |        |              |      |             |      |              |       |             |        |              |     |             |      |   |        |      |        |   |       |    |        |   |      |      |       
|                                               |                                                                                                    | Changes in operating assets and liabilities:                          |                                                          |       |              |        |              |      |              |      |              |       |              |        |              |     |              |      |   |        |       |        |   |       |     |        |   |      |       |       
|                                               |                                                                                                    |                                                                       | Accounts receivable, net                                 |       |              | 67     |              |      |              | 8    |              |       |              | 383    |              |     |              | (83  | ) |        |       |       |   |       |     |       |   |      |       | (87    | )
|                                               |                                                                                                    |                                                                       | Prepaid expenses and other                               |       |              |       |              |      |              | (7   | )            |       |              | (14    | )            |     |              |     |   |        |       |       |   |       |     |       |   |      |       | (11    | )
|                                               |                                                                                                    |                                                                       | Due from/to MeriStar Hotels                              |       |              | (1     | )            |      |              | (1   | )            |       |              | (1     | )            |     |              | 42   |   |        |       | 2,004  |   |       |     | (86    | ) |      |       | (1     | )
|                                               |                                                                                                    |                                                                       | Accounts payable, accrued expenses and other liabilities |       |              | 58     |              |      |              | 53   |              |       |              | 892    |              |     |              | 7    |   |        |       | 47     |   |       |     | (263   | ) |      |       | 430    |  
|                                               |                                                                                                    |                                                                       | Accrued interest                                         |       |              |       |              |      |              |     |              |       |              |       |              |     |              |     |   |        |       |       |   |       |     |       |   |      |       |       |  
|                                               |                                                                                                    |                                                                       | Due from subsidiaries                                    |       |              | (1,801 | )            |      |              | (660 | )            |       |              | (9,699 | )            |     |              | (444 | ) |        |       | (9,253 | ) |       |     | (1,500 | ) |      |       | (1,535 | )
|                                               |                                                                                                    |                                                                       | Income taxes payable                                     |       |              |       |              |      |              |     |              |       |              |       |              |     |              |     |   |        |       |       |   |       |     |       |   |      |       |       |  
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |      |              |      |              |       |              |        |              |     |              |      |   |        |       |        |   |       |     |        |   |      |      
|                                               |                                                                                                    |                                                                       | Net cash provided by (used in) operating activities      |       |              | 242    |              |      |              | 132  |              |       |              | 408    |              |     |              |     |   |        |       | 1,492  |   |       |     | 378    |   |      |       | 624    |  
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |      |              |      |              |       |              |        |              |     |              |      |   |        |       |        |   |       |     |        |   |      |      
|Cash flows from investing activities:          |                                                                                                    |                                                                       |                                                          |       |              |        |              |      |              |      |              |       |              |        |              |     |              |      |   |        |       |        |   |       |     |        |   |     
|                                               | Investment in hotel properties, net                                                                |                                                                       |                                                          | (242  | )            |        |              | (132 | )            |      |              | (408  | )            |        |              |    |              |      |   | (1,492 | )     |        |   | (378  | )   |        |   | (624 | )    
|                                               | Proceeds from disposition of assets                                                                |                                                                       |                                                          |      |              |        |              |     |              |      |              |      |              |        |              |    |              |      |   |       |       |        |   |      |     |        |   |     |      
|                                               | Hotel operating cash received in connection with lease conversions                                 |                                                                       |                                                          |       |              |        |              |      |              |      |              |       |              |        |              |     |              |      |   |        |       |        |   |       |     |        |   |      |      
|                                               | Note receivable to MeriStar Hotels                                                                 |                                                                       |                                                          |      |              |        |              |     |              |      |              |      |              |        |              |    |              |      |   |       |       |        |   |      |     |        |   |     |      
|                                               | Change in restricted cash                                                                          |                                                                       |                                                          |      |              |        |              |     |              |      |              |      |              |        |              |    |              |      |   |       |       |        |   |      |     |        |   |     |      
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |      |              |      |              |       |              |        |              |     |              |      |   |        |       |        |   |       |     |        |   |      |      
|                                               |                                                                                                    |                                                                       | Net cash provided by (used in) investing activities      |       |              | (242   | )            |      |              | (132 | )            |       |              | (408   | )            |     |              |     |   |        |       | (1,492 | ) |       |     | (378   | ) |      |       | (624   | )
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |      |              |      |              |       |              |        |              |     |              |      |   |        |       |        |   |       |     |        |   |      |      
|Cash flows from financing activities:          |                                                                                                    |                                                                       |                                                          |       |              |        |              |      |              |      |              |       |              |        |              |     |              |      |   |        |       |        |   |       |     |        |   |     
|                                               | Deferred financing costs                                                                           |                                                                       |                                                          |      |              |        |              |     |              |      |              |      |              |        |              |    |              |      |   |       |       |        |   |      |     |        |   |     |      
|                                               | Proceeds from issuances of mortgages and notes payable                                             |                                                                       |                                                          |      |              |        |              |     |              |      |              |      |              |        |              |    |              |      |   |       |       |        |   |      |     |        |   |     |      
|                                               | Principal payments on mortgages and notes payable                                                  |                                                                       |                                                          |      |              |        |              |     |              |      |              |      |              |        |              |    |              |      |   |       |       |        |   |      |     |        |   |     |      
|                                               | Repurchase of units                                                                                |                                                                       |                                                          |      |              |        |              |     |              |      |              |      |              |        |              |    |              |      |   |       |       |        |   |      |     |        |   |     |      
|                                               | Contributions from partners                                                                        |                                                                       |                                                          |      |              |        |              |     |              |      |              |      |              |        |              |    |              |      |   |       |       |        |   |      |     |        |   |     |      
|                                               | Distributions paid to partners                                                                     |                                                                       |                                                          |      |              |        |              |     |              |      |              |      |              |        |              |    |              |      |   |       |       |        |   |      |     |        |   |     |      
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |      |              |      |              |       |              |        |              |     |              |      |   |        |       |        |   |       |     |        |   |      |      
|                                               |                                                                                                    |                                                                       | Net cash used in financing activities                    |       |              |       |              |      |              |     |              |       |              |       |              |     |              |     |   |        |       |       |   |       |     |       |   |      |       |       |  
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |      |              |      |              |       |              |        |              |     |              |      |   |        |       |        |   |       |     |        |   |      |      
|Effect of exchange rate changes on cash        |                                                                                                    |                                                                       |                                                         |       |              |        |             |      |              |      |             |       |              |        |             |     |              |      |  |        |       |        |  |       |     |        |  |     
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |      |              |      |              |       |              |        |              |     |              |      |   |        |       |        |   |       |     |        |   |      |      
|Net change in cash                             |                                                                                                    |                                                                       |                                                         |       |              |        |             |      |              |      |             |       |              |        |             |     |              |      |  |        |       |        |  |       |     |        |  |     
|Cash and cash equivalents, beginning of period |                                                                                                    |                                                                       |                                                         |       |              |        |             |      |              |      |             |       |              |        |             |     |              |      |  |        |       |        |  |       |     |        |  |     
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |      |              |      |              |       |              |        |              |     |              |      |   |        |       |        |   |       |     |        |   |      |      
|Cash and cash equivalents, end of period       |                                                                                                    |                                                                       |                                                         |       |              |        |             |      |              |      |             |       |              |        |             |     |              |      |  |        |       |        |  |       |     |        |  |     
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |              |      |              |      |              |       |              |        |              |     |              |      |   |        |       |        |   |       |     |        |   |      |      





---



##### 



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

|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |          |      |               |        |              |        |              |        |       |          |         |   |        |          |        |         |  
|---------------------------------------------- | -------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------- | -------------------------------------------------------- | ----- | ------------ | ------ | -------- | ---- | ------------- | ------ | ------------ | ------ | ------------ | ------ | ----- | -------- | ------- | - | ------ | -------- | ------ | ------- | -
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |          |      |               |        |              |        | MeriStar     |        |       |          |         |   |        |          |       
|                                               |                                                                                                    |                                                                       |                                                          |       | MeriStar Sub |        | MeriStar |      | Hotel Lessee, |        |              |        |              |        | Total
|                                               |                                                                                                    |                                                                       |                                                          |       | 8D, LLC      |        | 4J, LLC  |      | Inc.          |        | Eliminations |        | Consolidated
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |          |      |               |        |              |        |             
|Cash flows from operating activities:          |                                                                                                    |                                                                       |                                                          |       |              |        |          |      |               |        |              |        |              |        |       |          |         |   |        |         
|                                               | Net income (loss)                                                                                  |                                                                       |                                                          | 1,516 |              |        |          | 929  |               |        |              | (1,726 | )            |        |       | (116,073 | )       |   |        | 22,352   |       
|                                               | Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities: |                                                                       |                                                          |       |              |        |          |      |               |        |              |        |              |        |       |          |         |   |        |          |       
|                                               |                                                                                                    | Depreciation and amortization                                         |                                                          |       | 934          |        |          |      | 943           |        |              |        | 161          |        |       |          |        |   |        |          | 86,639 |        
|                                               |                                                                                                    | Equity in earnings                                                    |                                                          |       |              |        |          |      |               |        |              |        |              |        |       |          | 116,073 |   |        |          |       |        
|                                               |                                                                                                    | Loss on sale of assets, net of tax                                    |                                                          |       |             |        |          |      |              |        |              |        |             |        |       |          |        |   |        |          | 2,176  |        
|                                               |                                                                                                    | Write down of investment in STS Hotel Net                             |                                                          |       |             |        |          |      |              |        |              |        |             |        |       |          |        |   |        |          | 2,112  |        
|                                               |                                                                                                    | Extraordinary loss on early extinguishment of debt, before tax effect |                                                          |       |             |        |          |      |              |        |              |        |             |        |       |          |        |   |        |          | 1,243  |        
|                                               |                                                                                                    | Minority interests                                                    |                                                          |       |             |        |          |      |              |        |              |        |             |        |       |          |        |   |        |          | (16    | )      
|                                               |                                                                                                    | Amortization of unearned stock based compensation                     |                                                          |       |             |        |          |      |              |        |              |        |             |        |       |          |        |   |        |          | 2,628  |        
|                                               |                                                                                                    | Interest rate swaps marked to fair value                              |                                                          |       |             |        |          |      |              |        |              |        |             |        |       |          |        |   |        |          |       |        
|                                               |                                                                                                    | Deferred income taxes                                                 |                                                          |       |             |        |          |      |              |        |              |        |             |        |       |          |        |   |        |          | (359   | )      
|                                               |                                                                                                    | Changes in operating assets and liabilities:                          |                                                          |       |              |        |          |      |               |        |              |        |              |        |       |          |         |   |        |          |        |        
|                                               |                                                                                                    |                                                                       | Accounts receivable, net                                 |       |              | 119    |          |      |               | 40     |              |        |              | 10,054 |       |          |         |  |        |          |        | 11,256  |  
|                                               |                                                                                                    |                                                                       | Prepaid expenses and other                               |       |              | 8      |          |      |               |       |              |        |              | (45    | )     |          |         |  |        |          |        | (6,135  | )
|                                               |                                                                                                    |                                                                       | Due from/to MeriStar Hotels                              |       |              |       |          |      |               |       |              |        |              | (1,845 | )     |          |         |  |        |          |        | 9,152   |  
|                                               |                                                                                                    |                                                                       | Accounts payable, accrued expenses and other liabilities |       |              | (30    | )        |      |               | (105   | )            |        |              | (8,769 | )     |          |         |  |        |          |        | (18,035 | )
|                                               |                                                                                                    |                                                                       | Accrued interest                                         |       |              |       |          |      |               |       |              |        |              | 32     |       |          |         |  |        |          |        | 3,080   |  
|                                               |                                                                                                    |                                                                       | Due from subsidiaries                                    |       |              | (2,493 | )        |      |               | (1,370 | )            |        |              | 21,143 |       |          |         |  |        |          |        |        |  
|                                               |                                                                                                    |                                                                       | Income taxes payable                                     |       |              |       |          |      |               |       |              |        |              |       |       |          |         |  |        |          |        | 233     |  
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |          |      |               |        |              |        |              |        |       |          |         |   |        |          |       
|                                               |                                                                                                    |                                                                       | Net cash provided by (used in) operating activities      |       |              | 54     |          |      |               | 437    |              |        |              | 19,005 |       |          |         |  |        |          |        | 116,326 |  
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |          |      |               |        |              |        |              |        |       |          |         |   |        |          |       
|Cash flows from investing activities:          |                                                                                                    |                                                                       |                                                          |       |              |        |          |      |               |        |              |        |              |        |       |          |         |   |        |         
|                                               | Investment in hotel properties, net                                                                |                                                                       |                                                          | (54   | )            |        |          | (437 | )             |        |              | (720   | )            |        |       |         |         |   |        | (31,066  | )     
|                                               | Proceeds from disposition of assets                                                                |                                                                       |                                                          |      |              |        |          |     |               |        |              |       |              |        |       |         |         |   |        | 9,715    |       
|                                               | Hotel operating cash received in connection with lease conversions                                 |                                                                       |                                                          |       |              |        |          |      |               |        |              | 3,257  |              |        |       |          |         |   |        | 3,257    |       
|                                               | Note receivable to MeriStar Hotels                                                                 |                                                                       |                                                          |      |              |        |          |     |               |        |              |       |              |        |       |         |         |   |        | (36,000  | )     
|                                               | Change in restricted cash                                                                          |                                                                       |                                                          |      |              |        |          |     |               |        |              |       |              |        |       |         |         |   |        | (2,741   | )     
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |          |      |               |        |              |        |              |        |       |          |         |   |        |          |       
|                                               |                                                                                                    |                                                                       | Net cash provided by (used in) investing activities      |       |              | (54    | )        |      |               | (437   | )            |        |              | 2,537  |       |          |         |  |        |          |        | (56,835 | )
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |          |      |               |        |              |        |              |        |       |          |         |   |        |          |       
|Cash flows from financing activities:          |                                                                                                    |                                                                       |                                                          |       |              |        |          |      |               |        |              |        |              |        |       |          |         |   |        |         
|                                               | Deferred financing costs                                                                           |                                                                       |                                                          |      |              |        |          |     |               |        |              |       |              |        |       |         |         |   |        | (11,072  | )     
|                                               | Proceeds from issuances of mortgages and notes payable                                             |                                                                       |                                                          |      |              |        |          |     |               |        |              |       |              |        |       |         |         |   |        | 684,710  |       
|                                               | Principal payments on mortgages and notes payable                                                  |                                                                       |                                                          |      |              |        |          |     |               |        |              |       |              |        |       |         |         |   |        | (608,149 | )     
|                                               | Repurchase of units                                                                                |                                                                       |                                                          |      |              |        |          |     |               |        |              |       |              |        |       |         |         |   |        | (4,028   | )     
|                                               | Contributions from partners                                                                        |                                                                       |                                                          |      |              |        |          |     |               |        |              |       |              |        |       |         |         |   |        | 2,157    |       
|                                               | Distributions paid to partners                                                                     |                                                                       |                                                          |      |              |        |          |     |               |        |              |       |              |        |       |         |         |   |        | (75,950  | )     
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |          |      |               |        |              |        |              |        |       |          |         |   |        |          |       
|                                               |                                                                                                    |                                                                       | Net cash used in financing activities                    |       |              |       |          |      |               |       |              |        |              |       |       |          |         |  |        |          |        | (12,332 | )
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |          |      |               |        |              |        |              |        |       |          |         |   |        |          |       
|Effect of exchange rate changes on cash        |                                                                                                    |                                                                       |                                                         |       |              |        |         |      |               |        |             |        |              |        |      |          |         |   | 245    |         
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |          |      |               |        |              |        |              |        |       |          |         |   |        |          |       
|Net change in cash                             |                                                                                                    |                                                                       |                                                         |       |              |        |         |      |               |        | 21,542       |        |              |        |      |          |         |   | 47,404 |         
|Cash and cash equivalents, beginning of period |                                                                                                    |                                                                       |                                                         |       |              |        |         |      |               |        |             |        |              |        |      |          |         |   | 242    |         
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |          |      |               |        |              |        |              |        |       |          |         |   |        |          |       
|Cash and cash equivalents, end of period       |                                                                                                    |                                                                       |                                                         |       |              |        |         |      |               |        | 21,542       |        |              |        |      |          |         |   | 47,646 |         
|                                               |                                                                                                    |                                                                       |                                                          |       |              |        |          |      |               |        |              |        |              |        |       |          |         |   |        |          |