<PAGE>
 
================================================================================

                       Securities and Exchange Commission

                             Washington, D.C. 20549

                                    Form 10-Q

           
          [X]   Quarterly Report Pursuant to Section 13 or 15(d)
                     of the Securities Exchange Act of 1934

                    For the Quarter ended September 12, 1997

                                       OR

          [ ]   Transition Report Pursuant to Section 13 or 15(d)
                     of the Securities Exchange Act of 1934

                        Commission File Number: 033-20022

                   MARRIOTT RESIDENCE INN LIMITED PARTNERSHIP
                   ------------------------------------------
            (Exact name of registrant as specified in its charter)
 
            Delaware                                         52-1558094
 -------------------------------                     ---------------------------
 (State or other jurisdiction of                          (I.R.S. Employer 
  incorporation or organization)                         Identification No.)


                               10400 Fernwood Road
                               Bethesda, Maryland
                                      20817
 -------------------------------------------------------------------------------
                    (Address of principal executive offices)

        Registrant's telephone number, including area code: 301-380-2070


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months and (2) has been subject to such filing requirements for
the past 90 days. Yes ___  No ___  (Not Applicable. On August 25, 1992, the
Registrant filed an application for relief from the reporting requirements of
the Securities Exchange Act of 1934 pursuant to Section 12(h) thereof. Pursuant 
to a grant of the relief requested in such application, the Registrant was not 
required to, and did not make, any filings pursuant to the Securities Exchange 
Act of 1934 from October 23, 1989 until the application was voluntarily 
withdrawn on January 23, 1998.)
================================================================================

<PAGE>
 
--------------------------------------------------------------------------------
                   Marriott Residence Inn Limited Partnership
--------------------------------------------------------------------------------

                                TABLE OF CONTENTS
                                -----------------
                                                                        PAGE NO.
                                                                        --------
                         PART I - FINANCIAL INFORMATION


Item 1.    Financial Statements

           Condensed Statement of Operations
               Twelve and Thirty-Six Weeks Ended
                  September 12, 1997 and September 6, 1996................. 1

           Condensed Balance Sheet
               September 12, 1997 and December 31, 1996.................... 2

           Condensed Statement of Cash Flows
               Thirty-Six Weeks ended September 12, 1997 
                 and September 6, 1996..................................... 3

           Notes to Condensed Financial Statements......................... 4

Item 2.    Management's Discussion and Analysis of Financial
               Condition and Results of Operations......................... 5


                          PART II - OTHER INFORMATION

Item 1.    Legal Proceedings............................................... 7
<PAGE>
 
                         PART I. FINANCIAL INFORMATION

                         ITEM 1. FINANCIAL STATEMENTS

                  MARRIOTT RESIDENCE INN LIMITED PARTNERSHIP
                       CONDENSED STATEMENT OF OPERATIONS
                                  (Unaudited)
                    (in thousands, except per unit amounts)

<TABLE> 
<CAPTION> 
                                                              Twelve Weeks Ended                 Thirty-Six Weeks Ended
                                                         September 12,     September 6,       September 12,    September 6,
                                                             1997             1996               1997             1996
                                                        -------------     ------------       ------------     ------------
<S>                                                     <C>               <C>                <C>              <C>  

REVENUES............................................... $       8,551     $      8,799       $     23,225     $     22,825
                                                        -------------     ------------       ------------     ------------

OPERATING COSTS AND EXPENSES
   Depreciation........................................         1,142            1,376              3,680            4,127
   Incentive management fee............................           911              949              2,427            2,382
   Residence Inn system fee............................           598              601              1,669            1,629
   Property taxes......................................           568              542              1,634            1,633
   Base management fee.................................           314              315                877              854
   Equipment rent and other............................           227              280                847              840
                                                        -------------     ------------       ------------     ------------

                                                                3,760            4,063             11,134           11,465
                                                        -------------     ------------       ------------     ------------

OPERATING PROFIT.......................................         4,791            4,736             12,091           11,360
   Interest expense....................................        (2,919)          (3,074)            (9,008)          (9,251)
   Interest income.....................................            91              103                216              251
                                                        -------------     ------------       ------------     ------------

NET INCOME............................................. $       1,963     $      1,765       $      3,299     $      2,360
                                                        =============     ============       ============     ============

ALLOCATION OF NET INCOME
   General Partner..................................... $          20     $         18       $         33     $         24
   Limited Partner.....................................         1,943            1,747              3,266            2,336
                                                        -------------     ------------       ------------     ------------

                                                        $       1,963     $      1,765       $      3,299     $      2,360
                                                        =============     ============       ============     ============


NET INCOME PER LIMITED PARTNER UNIT
   (65,600 Units)...................................... $          30     $         27       $         50     $         36
                                                        =============     ============       ============     ============
</TABLE> 



                 See Notes to Condensed Financial Statements.

                                       1
<PAGE>
 
                  MARRIOTT RESIDENCE INN LIMITED PARTNERSHIP
                            CONDENSED BALANCE SHEET
                                (In thousands)

<TABLE> 
<CAPTION> 
                                                                                        September 12,        December 31,
                                                                                             1997                1996
                                                                                        -------------        ------------
                                                                                          (Unaudited)
                                              ASSETS
<S>                                                                                     <C>                 <C> 
Property and equipment, net............................................................ $   139,781         $   140,272
Due from Residence Inn by Marriott, Inc................................................       2,041               2,462
Deferred financing costs, net..........................................................       2,396               2,728
Property improvement fund..............................................................       2,224               2,767
Cash and cash equivalents..............................................................       5,482               3,429
                                                                                        -----------         -----------

                                                                                        $   151,924         $   151,658
                                                                                        ===========         ===========
<CAPTION> 

                       LIABILITIES AND PARTNERS' CAPITAL

LIABILITIES
  Mortgage note payable................................................................ $   121,360         $   123,519
  Management fees due to Residence Inn by Marriott, Inc................................      22,252              20,825
  Accounts payable and accrued interest................................................       1,303               1,993
                                                                                        -----------         -----------

     Total Liabilities.................................................................     144,915             146,337
                                                                                        -----------         -----------

PARTNERS' CAPITAL
  General Partner......................................................................         146                 129
  Limited Partners.....................................................................       6,863               5,192
                                                                                        -----------         -----------

     Total Partners' Capital...........................................................       7,009               5,321
                                                                                        -----------         -----------

                                                                                        $   151,924         $   151,658
                                                                                        ===========         ===========
</TABLE> 
                 See Notes to Condensed Financial Statements.

                                       2
<PAGE>
 
                   MARRIOTT RESIDENCE INN LIMITED PARTNERSHIP
                        CONDENSED STATEMENT OF CASH FLOWS
                                   (Unaudited)

<TABLE> 
<CAPTION> 
                                                                                          Thirty-Six Weeks Ended
                                                                                       September 12,    September 6,
                                                                                           1997            1996
                                                                                        -----------     ----------
                                                                                               (in thousands)
<S>                                                                                     <C>             <C> 
OPERATING ACTIVITIES
     Net income ....................................................................... $     3,299     $    2,360
     Noncash items.....................................................................       6,434          6,822
     Change in operating accounts......................................................      (1,269)        (2,793)
                                                                                        -----------     ----------

        Cash provided by operations....................................................       8,464          6,389
                                                                                        -----------     ----------

INVESTING ACTIVITIES
     Additions to property and equipment...............................................      (3,189)        (2,767)
     Change in property improvement fund...............................................         543            521
                                                                                        -----------     ----------

        Cash used in investing activities..............................................      (2,646)        (2,246)
                                                                                        -----------     ----------

FINANCING ACTIVITIES
     Capital distributions ............................................................      (1,611)        (3,313)
     Principal repayment on mortgage debt..............................................      (2,159)        (1,655)
     Financing costs...................................................................           5            (69)
                                                                                        -----------     ----------

        Cash used in financing activities..............................................      (3,765)        (5,037)
                                                                                        -----------     ----------

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS.......................................       2,053           (894)

CASH AND CASH EQUIVALENTS at beginning of period.......................................       3,429          7,271
                                                                                        -----------     ----------

CASH AND CASH EQUIVALENTS at end of period............................................. $     5,482     $    6,377
                                                                                        ===========     ==========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
     Cash paid for interest............................................................ $     9,314     $    9,818
                                                                                        ===========     ==========
</TABLE> 

                                       3
<PAGE>
 
                   MARRIOTT RESIDENCE INN LIMITED PARTNERSHIP
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (Unaudited)

1.   The accompanying condensed financial statements have been prepared by
     Marriott Residence Inn Limited Partnership (the "Partnership") without
     audit. Certain information and footnote disclosures normally included in
     financial statements presented in accordance with generally accepted
     accounting principles have been condensed or omitted from the accompanying
     statements. The Partnership believes the disclosures made are adequate to
     make the information presented not misleading. However, the condensed
     financial statements should be read in conjunction with the Partnership's
     financial statements and notes thereto included in the Partnership's Form
     10-K for the fiscal year ended December 31, 1996.

     In the opinion of the Partnership, the accompanying unaudited condensed
     financial statements reflect all adjustments (which include only normal
     recurring adjustments) necessary to present fairly the financial position
     of the Partnership as of September 12, 1997 and December 31, 1996, and the
     results of operations for the twelve and thirty-six weeks ended September
     12, 1997 and September 6, 1996. Interim results are not necessarily
     indicative of fiscal year performance because of seasonal and short-term
     variations.

     The net income of the Partnership is allocated 99% to the limited partners
     and 1% to RIBM One Corporation (the "General Partner").  Significant 
     differences exist between the net income for financial reporting purposes
     and the net income for Federal income tax purposes.  These differences are
     due primarily to the use, for income tax purposes, of accelerated 
     depreciation methods and shorter depreciable lives of the assets, and 
     differences in the timing of the recognition of incentive management fee 
     expense.

2.   Revenues represent house profit of the Partnership Inns since the
     Partnership had delegated substantially all of the operating decisions
     related to the generation of house profit of the Inns to Residence Inn by
     Marriott, Inc. (the "Manager"). House profit reflects the net revenues
     flowing to the Partnership as property owner and represents Inn operating
     results less property-level expenses, excluding depreciation and
     amortization, base, Residence Inn system and incentive management fees,
     property taxes, equipment rent and certain other costs, which are disclosed
     separately in the condensed statement of operations.

     In the first quarter of 1996, the Partnership adopted Statement of
     Financial Accounting Standards ("SFAS") No. 121 "Accounting For The
     Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed
     of." Adoption of SFAS No. 121 did not have a material effect on its
     condensed financial statements.

     Revenues consist of Inn operating results for the twelve and thirty-six
     weeks ended (in thousands):

<TABLE> 
<CAPTION> 

                                                               Twelve Weeks Ended                Thirty-Six Weeks Ended
                                                           September 12,    September 6,       September 12,   September 6,
                                                                1997            1996               1997            1996
                                                           ------------    -------------      -------------    ------------
     <S>                                                   <C>             <C>                <C>              <C> 
     INN SALES
         Suites........................................... $     14,972    $      15,015      $      41,738    $     40,725
         Other operating departments......................          758              696              2,118           1,954
                                                           ------------    -------------      -------------    ------------
                                                                 15,730           15,711             43,856          42,679
                                                           ------------    -------------      -------------    ------------
     INN EXPENSES
         Departmental direct costs
             Suites.......................................        2,993            2,915              8,569           8,110
             Other operating departments..................          287              239                810             744
         Other Inn operating expenses.....................        3,899            3,758             11,252          11,000
                                                           ------------    -------------      -------------    ------------
                                                                  7,179            6,912             20,631          19,854
                                                           ------------    -------------      -------------    ------------

     REVENUES............................................. $      8,551    $       8,799      $      23,225    $     22,825
                                                           ============    =============      =============    ============
</TABLE> 


3.   The General Partner has undertaken, on behalf of the Partnership, to
     pursue, subject to further approval of the partners, a potential
     transaction (the "Consolidation") in which (i) subsidiaries of CRF Lodging
     Company, L.P. (the "Company"), a newly formed Delaware limited partnership,
     would merge with and into the Partnership and up to five other limited
     partnerships, with the Partnership and the other limited partnerships being
     the surviving entities (each, a "Merger" and collectively, the "Mergers"),
     subject to the satisfaction or waiver of certain conditions, (ii) CRF
     Lodging Trust ("CRFLT"), a Maryland real estate investment trust, the sole
     general partner of the Company, would offer its common shares of beneficial
     interest, par value $0.01 per share (the "Common Shares") to investors in
     an underwritten public offering and would invest the proceeds of such
     offering in the Company in exchange for units of limited partnership
     interests in the Company ("Units") and (iii) the Partnership would enter
     into a Lease for the operation of its Hotels pursuant to which a Lessee
     would pay rent to the Partnership based upon the greater of a fixed dollar
     amount of base rent or specified percentages of gross sales, as specified
     in the Lease. If the partners approve the transaction and other conditions
     are satisfied, the partners of the Partnership would receive Units in the
     Merger in exchange for their interests in the Partnership.

     A preliminary Prospectus/Consent Solicitation was filed as part of a
     Registration Statement on Form S-4 with the Securities and Exchange
     Commission and which describes the potential transaction in greater detail.
     Any offer of Units in connection with the Consolidation will be made solely
     by a final Prospectus/Consent Solicitation.


                                       4
<PAGE>
 
ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS

FORWARD-LOOKING STATEMENTS

Certain matters discussed herein are forward-looking statements within the
meaning of the Private Litigation Reform Act of 1995 and as such may involve
known and unknown risks, uncertainties, and other factors which may cause the
actual results, performance or achievements of the Partnership to be different
from any future results, performance or achievements expressed or implied by
such forward-looking statements. Although the Partnership believes the
expectations reflected in such forward-looking statements are based upon
reasonable assumptions, it can give no assurance that its expectations will be
attained. These risks are detailed from time to time in the Partnership's
filings with the Securities and Exchange Commission. The Partnership undertakes
no obligation to publicly release the result of any revisions to these
forward-looking statements that may be made to reflect any future events or
circumstances.


RESULTS OF OPERATIONS

First Three Quarters 1997 Compared To First Three Quarters 1996

Revenues. Revenues for the first three quarters of 1997 increased $400,000, or
2%, to $23.2 million. Revenues and operating profit were impacted primarily by
growth in revenue per available room ("REVPAR") of 3%. REVPAR is a commonly used
indicator of market performance for hotels which represents the combination of
daily room rate charged and the average daily occupancy achieved (although it is
not GAAP). REVPAR does not include food and beverage or other ancillary revenues
generated by the property. Inn sales increased $1.2 million, or 3%, to $43.9
million in the first three quarters of 1997 also reflecting the improvement in
REVPAR for the period. REVPAR increased for the first three quarters of 1997 due
primarily to an increase in average room rates of 4%, while average occupancy
decreased just over one percentage point. Due to the high occupancy of these
properties, the Partnership expects future increases in REVPAR to be driven by
room rate increases, rather than occupancy increases. However, there can be no
assurance that REVPAR will continue to increase in the future.

Operating Costs and Expenses. Operating costs and expenses decreased $331,000 to
$11.1 million for the first three quarters of 1997. As a percentage of revenues,
Inn operating costs and expenses were 48% and 50% of revenues for the first
three quarters of 1997 and the first three quarters of 1996, respectively.

Operating Profit. As a result of the changes in revenues and operating costs and
expenses discussed above, operating profit increased by $731,000 to $12.1
million, or 52% of revenues, for the first three quarters of 1997 from $11.4
million, or 50% of revenues, for the first three quarters of 1996.

Interest Expense. Interest expense decreased $243,000 to $9.0 million for the
first three quarters of 1997 as a result of principal amortization on the
Partnership's debt.

Net Income. Net income for the first three quarters of 1997 increased $939,000
to $3.3 million, or 14% of revenues, compared to net income of $2.4 million, or
10% of revenues, for the first three quarters of 1996.

                                       5
<PAGE>
 
Third Quarter 1997 Compared To Third Quarter 1996

Revenues. Revenues for Third Quarter 1997 decreased $248,000, or 3%, to $8.6
million. Inn sales remained stable at $15.7 million in Third Quarter 1997.
REVPAR increased for Third Quarter 1997 due primarily to an increase in average
room rates of 4% and an increase in average occupancy of just under one
percentage point. Due to the high occupancy of these properties, the Partnership
expects future increases in REVPAR to be driven by room rate increases, rather
than occupancy increases. However, there can be no assurance that REVPAR will
continue to increase in the future.

Operating Costs and Expenses. Operating costs and expenses decreased $303,000 to
$3.8 million for Third Quarter 1997. As a percentage of revenues, Inn operating
costs and expenses were 44% and 46% of revenues for Third Quarter 1997 and Third
Quarter 1996, respectively.

Operating Profit. As a result of the changes in revenues and operating costs and
expenses discussed above, operating profit increased by $55,000 to $4.8 million,
or 56% of revenues, in Third Quarter 1997 from $4.7 million, or 54% of revenues,
for Third Quarter 1996.

Interest Expense. Interest expense decreased $155,000 to $2.9 million for Third
Quarter 1997 as a result of principal amortization on the Partnership's debt.

Net Income. Net income for Third Quarter 1997 increased $198,000 to $2.0
million, or 23% of revenues, compared to net income of $1.8 million, or 20% of
revenues, for Third Quarter 1996.

LIQUIDITY AND CAPITAL RESOURCES

Cash provided by operations was $8.5 million and $6.4 million for the first
three quarters of 1997 and the first three quarters of 1996, respectively. The
improved cash from operations was a result of improved Inn lodging results and
collections of rent receivable from the Manager.

Cash used in investing activities was $2.6 million and $2.2 million for the
first three quarters of 1997 and the first three quarters of 1996, respectively.
The Partnership's cash investing activities consist primarily of contributions
to the property improvement fund and capital expenditures for improvements to
existing Inns.

The Partnership's cash used in financing activities was $3.8 million and $5.0
million for the first three quarters of 1997 and the first three quarters of
1996, respectively. Cash financing activities primarily consist of capital
distributions to partners, repayment of debt and payment of financing costs. The
Partnership distributed $1.7 million to the partners in the first quarter of
1997 from 1996 operations. In the first quarter of 1996, the Partnership
distributed $3.3 million to the partners from 1995 operations. Based on cash
available from Partnership operations from September 1, 1996 to August 31, 1997,
$2 million of additional amortization is required on the $130 million Senior
Mortgage, which occured on October 1, 1997.

                                       6
<PAGE>
 
                           PART II. OTHER INFORMATION

                            ITEM 1. LEGAL PROCEEDINGS


The Partnership and the Inns are involved in routine litigation and
administrative proceedings arising in the ordinary course of business, some of
which are expected to be covered by liability insurance and which collectively
are not expected to have a material adverse effect on the business, financial
condition or results of operations of the Partnership.

                                       7
<PAGE>
 
                                    SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this Form 10-Q to be signed on its behalf by the
undersigned, thereunto duly authorized.



                                          MARRIOTT RESIDENCE INN
                                          LIMITED PARTNERSHIP

                                          By:     RIBM ONE CORPORATION
                                                  General Partner



                   January 16, 1998    By: /s/ Patricia K. Brady
                                           -------------------------
                                           Patricia K. Brady
                                           Vice President and Chief 
                                           Accounting Officer

                                       8