<PAGE>
MISSION BAY SUPER 8 LTD.
A California Limited Partnership
Balance Sheet
(Unaudited)
(Part 1)
<TABLE>
<CAPTION>
June 30, December 31,
1995 1994
<S> <C> <C>
ASSETS
Current Assets:
Cash and cash equivalents $ 105,975 $ 43,260
Accounts receivable 18,464 15,428
Operating Supplies 19,660 19,204
Prepaid expenses 34,179 9,884
Due from affiliates (Note 4) 31,362 27,431
---------- ----------
Total Current Assets $ 209,640 $ 115,207
---------- ----------
Investment property, at cost:
Land 1,212,000 1,212,000
Building and improvements (Note 5) 2,024,033 2,024,033
Furniture, fixtures and equipment 719,211 702,412
---------- ----------
3,955,244 3,938,445
Less accumulated depreciation 1,170,547 1,128,445
---------- ----------
Investment property, net of
accumulated depreciation 2,784,697 2,810,000
Deferred organization costs and
franchise fee, net (Note 3) 12,329 12,829
Construction in Progress 0 0
---------- ----------
$3,006,666 $2,938,036
---------- ----------
---------- ----------
</TABLE>
3 <PAGE>
<PAGE>
MISSION BAY SUPER 8 LTD.
A California Limited Partnership
Balance Sheet
(Unaudited)
(Part 2)
<TABLE>
<CAPTION>
June 30, December 31,
1995 1994
<S> <C> <C>
LIABILITIES AND
PARTNER'S CAPITAL ACCOUNTS
Current liabilities:
Accounts payable $ 18,440 $ 20,782
Accrued expenses 6,823 11,264
Due to affiliates (Note 5) 0 0
---------- ----------
Total current liabilities 25,263 32,046
---------- ----------
Partners' capital accounts (deficit):
General Partners:
Cumulative net earnings 15,494 7,953
Cumulative cash distributions (286,197) (286,197)
---------- ----------
(270,703) (278,244)
Limited partners:
Capital contributions,
net of offering costs 5,761,115 5,761,115
Cumulative net earnings 139,437 71,565
Cumulative cash distributions (2,648,446) (2,648,446)
---------- ----------
3,252,106 3,184,234
---------- ----------
Total partners' capital accounts 2,981,403 2,905,990
---------- ----------
$3,006,666 $2,938,036
---------- ----------
---------- ----------
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
MISSION BAY SUPER 8 LTD.,
A California Limited Partnership
Statement of Operations
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
---------------------------- -----------------------------
1995 1994 1995 1994
---------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
Revenues:
Room revenues $ 287,034 $ 236,189 $ 478,410 $ 430,714
Phone revenues 8,306 9,338 16,596 18,987
Interest income 76 97 182 201
Other income 9,327 4,985 13,871 6,804
---------- ---------- ---------- ----------
304,743 250,609 509,059 456,706
---------- ---------- ---------- ----------
Expenses:
Property operating expenses 96,293 91,312 180,587 172,461
Depreciation 21,051 18,554 42,102 37,109
General and Administrative 41,194 36,689 72,840 70,572
Amortization 250 250 500 500
Management fees 18,250 15,030 30,454 27,390
Royalties 11,495 9,448 19,121 17,235
Repairs and Maintenance 13,859 13,301 25,984 27,514
Real estate taxes 10,963 12,947 22,726 25,344
Marketing 16,866 14,869 27,665 29,685
Property and liability insurance 5,833 7,921 11,667 12,571
---------- ---------- ---------- ----------
236,054 220,321 433,646 420,381
---------- ---------- ---------- ----------
Net earnings $ 68,689 $ 30,288 $ 75,413 $ 36,325
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Net earnings per limited
partnership interest $ 9.37 $ 4.13 $ 10.28 $ 4.95
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
MISSION BAY SUPER 8 LTD.,
A California Limited Partnership
Notes to Financial Statements, Continued
4. RELATED PARTY TRANSACTIONS (Continued)
Fees and reimbursements for partnership administration expenses
paid to GHG and GMS for the three months ended June 30, 1995 and
June 30, 1994 and for the six months ended June 30, 1995 and June
30, 1994 are as follows:
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
------------------ ------------------
6/30/95 6/30/94 6/30/95 6/30/94
------- ------- ------- -------
<S> <C> <C> <C> <C>
Management Fees $12,204 $12,360 $30,454 $27,390
Reimbursement for
partnership admini-
stration expenses $10,105 $10,620 $20,211 $21,240
</TABLE>
In addition, all motel employees are paid by GMS. The
Partnership reimbursed GMS $54,568 for the wages of these
employees plus a one percent processing fee.
During 1994, the Partnership transferred carpeting to GMS at the
Partnership's cost of $23,500 and recorded a receivable from GMS.
At June 30, 1995, $31,362 was due from GHG and GMS relating to
reimbursement for these operating expenses.
5. PROPOSED EXCHANGE OF INVESTMENT PROPERTY AND WRITEDOWN TO
APPRAISED VALUE
Management is presently considering the possibility of exchanging
substantially all of the Partnership's investment property for
common stock in a real estate investment trust (REIT). Under
this proposal, the common stock in the REIT would be distributed
to the limited partners and the Partnership would be dissolved.
The proposed transaction is contingent upon management reaching a
satisfactory agreement with the REIT and is subject to the
approval of the limited partners.
In connection with this proposed transaction, an independent
appraiser valued the Partnership's investment property at
$2,810,000 as of August 1, 1994. Because of the significant
decrease in the market value of investment property, and the
proposed exchange of investment property for common stock in a
REIT, management has elected to writedown the Partnership's
investment property to its appraised value of $2,810,000 as of
December 31, 1994.
(Continued)
9
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
(REGISTRANT) MISSION BAY SUPER 8 LTD.,
A California Limited Partnership
By: GHG Hospitality, Inc.
Corporate General Partner
BY (SIGNATURE) /s/ J. Mark Grosvenor
(NAME AND TITLE) J. Mark Grosvenor, President and Director
(DATE) October 27, 1995
BY (SIGNATURE) /s/ Sylvia Mellor Clark
(NAME AND TITLE) Controller and Director
(DATE) October 27, 1995
