Delaware (State of Incorporation)

52-2095412 (I.R.S. Employer Identification No.)

6903 Rockledge Dr., Suite 1500, Bethesda, Maryland		20817
(Address of Principal Executive Offices)		(Zip Code)

				Page No.
Item 1.		Financial Statements (Unaudited):
		Condensed Consolidated Balance Sheets—September 6, 2002 and December 31, 2001		3
		Condensed Consolidated Statements of Operations—Twelve Weeks and Thirty-six Weeks Ended September 6, 2002 and September 7, 2001		4
		Condensed Consolidated Statements of Cash Flows—Thirty-six Weeks Ended September 6, 2002 and September 7, 2001		6
		Notes to Condensed Consolidated Financial Statements		8
Item 2.		Management’s Discussion and Analysis of Results of Operations and Financial Condition		21
Item 3.		Quantitative and Qualitative Disclosures about Market Risk		35
Item 4.		Controls and Procedures		36
PART II.    OTHER INFORMATION AND SIGNATURE
Item 1.		Legal Proceedings		36
Item 2.		Changes in Securities and Use of Proceeds		37
Item 6.		Exhibits and Reports on Form 8-K		37

		September 6, 2002				December 31, 2001
		(unaudited)
ASSETS
Property and equipment, net		$	7,102			$	6,999
Notes and other receivables (including amounts due from affiliates of $6 million and $6 million, respectively)			54				54
Due from Managers			62				141
Investments in affiliates			139				142
Other assets			519				532
Restricted cash			120				114
Cash and cash equivalents			394				352
		$	8,390			$	8,334
LIABILITIES AND PARTNERS’ CAPITAL
Debt
Senior notes		$	3,246			$	3,235
Mortgage debt			2,304				2,261
Convertible debt obligation to Host Marriott Corporation			492				492
Other			103				106
			6,145				6,094
Accounts payable and accrued expenses			155				121
Other liabilities			248				320
Total liabilities			6,548				6,535
Minority interest			107				108
Limited partnership interests of third parties at redemption value (representing 27.9 million units and 21.6 million units at September 6, 2002 and December 31, 2001, respectively)			279				194
Partners’ capital
General partner			1				1
Cumulative redeemable preferred limited partner			339				339
Limited partner			1,117				1,162
Accumulated other comprehensive loss			(1	)			(5	)
Total partners’ capital			1,456				1,497
		$	8,390			$	8,334

		Twelve Weeks Ended								Thirty-six Weeks Ended
		September 6,				September 7,				September 6,				September 7,
		2002				2001				2002				2001
REVENUES
Rooms		$	481			$	528			$	1,489			$	1,640
Food and beverage			224				234				756				782
Other			64				67				184				204
Total hotel sales			769				829				2,429				2,626
Rental income			20				19				70				89
Total revenues			789				848				2,499				2,715
OPERATING COSTS AND EXPENSES
Rooms			125				133				365				389
Food and beverage			182				188				562				587
Hotel departmental costs and deductions			225				229				646				669
Management fees			30				37				110				143
Taxes, insurance, and other property-level expenses			69				69				203				209
Depreciation and amortization			86				86				254				263
Corporate expenses			8				7				28				24
Other expenses			3				2				12				9
Lease repurchase expense			—				—				—				5
OPERATING PROFIT			61				97				319				417
Minority interest expense			—				(2	)			(9	)			(14	)
Interest income			7				5				14				25
Interest expense			(115	)			(111	)			(341	)			(333	)
Net gains on property transactions			1				3				3				4
Equity in earnings (losses) of affiliates			(3	)			(1	)			(6	)			3
INCOME (LOSS) BEFORE INCOME TAXES			(49	)			(9	)			(20	)			102
Benefit from (provision for) income taxes			7				—				(8	)			(15	)
INCOME (LOSS) FROM CONTINUING OPERATIONS			(42	)			(9	)			(28	)			87
DISCONTINUED OPERATIONS
Income (loss) from operations			—				—				7				(1	)
INCOME (LOSS) BEFORE EXTRAORDINARY ITEMS			(42	)			(9	)			(21	)			86
Extraordinary gain (loss) on the extinguishment of debt			—				(1	)			6				(1	)
NET INCOME (LOSS)		$	(42	)		$	(10	)		$	(15	)		$	85
Less: Distributions on preferred units			(9	)			(9	)			(27	)			(23	)
NET INCOME (LOSS) AVAILABLE TO COMMON UNITHOLDERS		$	(51	)		$	(19	)		$	(42	)		$	62