UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark one)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarter ended June 30, 1996
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Transition period from to __________
Commission File No. 1-9311
PRIME MOTOR INNS LIMITED PARTNERSHIP
(Exact name of registrant as specified in its charter)
Delaware 22-2754689
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
c/o WHI
4243 Hunt Road
Cincinnati, Ohio 45242
(Address of principal offices, including zip code)
(513) 891-2920
(Registrant's telephone number, including area code)
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 (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No ___
PRIME MOTOR INNS LIMITED PARTNERSHIP
AND SUBSIDIARY LIMITED PARTNERSHIP
INDEX
Page
Number
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements
Consolidated Balance Sheets -
June 30, 1996 and December 31, 1995 3
Consolidated Statements of Operations - Three
and Six Months Ended June 30, 1996 and 1995 5
Consolidated Statement of Partners' Deficit -
Six Months Ended June 30, 1996 6
Consolidated Statements of Cash Flows -
Six Months Ended June 30, 1996 and 1995 7
Notes to Consolidated Financial Statements 8
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 11
PART II. OTHER INFORMATION AND SIGNATURES:
Item 6. Exhibits and Reports on Form 8-K 15
PRIME MOTOR INNS LIMITED PARTNERSHIP
AND SUBSIDIARY LIMITED PARTNERSHIP
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
<TABLE>
<CAPTION>
June 30,
1996 December 31,
ASSETS (Unaudited) 1995
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 1,372 $ 792
Accounts receivable, net 1,061 661
Prepaid expenses 291 941
Other current assets 366 375
Total current assets 3,090 2,769
Property and equipment
net of accumulated depreciation
and amortization 50,356 52,146
Cash and cash equivalents restricted for:
Acquisition of property
and equipment 595 831
Interest and taxes 559 491
Total restricted cash and
cash equivalents 1,154 1,322
Other assets, net 653 764
$ 55,253 $ 57,001
</TABLE>
Continued
The accompanying notes are an integral part
of the consolidated financial statements.
PRIME MOTOR INNS LIMITED PARTNERSHIP
AND SUBSIDIARY LIMITED PARTNERSHIP
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
<TABLE>
<CAPTION>
June 30,
1996 December 31,
Liabilities and Partners' Deficit (Unaudited) 1995
<S> <C> <C>
Current liabilities:
Revolving credit facility $ 500 $ -
Trade accounts payable 456 568
Accrued payroll 612 688
Accrued payroll taxes 318 286
Accrued vacation 476 473
Accrued utilities 263 326
Sales tax payable 517 242
Other current liabilities 884 671
Total current liabilities 4,026 3,254
Long-term debt 65,668 65,645
Deferred interest 3,292 3,685
Other liabilities 150 150
Total long-term liabilities 69,110 69,480
Total liabilities 73,136 72,734
Commitments
Partners' deficit:
General partner ( 750) ( 729)
Limited partners ( 17,133) ( 15,004)
Total partners' deficit ( 17,883) ( 15,733)
$ 55,253 $ 57,001
</TABLE>
The accompanying notes are an integral part
of the consolidated financial statements.
PRIME MOTOR INNS LIMITED PARTNERSHIP
AND SUBSIDIARY LIMITED PARTNERSHIP
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in Thousands, except per Unit amounts)
Unaudited
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Revenues:
Lodging $ 11,096 $ 10,456 $ 17,829 $ 17,123
Food & beverage 2,559 2,565 4,553 4,517
Other income 93 100 190 194
Lease settlement proceeds - - - 1,025
Total revenues 13,748 13,121 22,572 22,859
Expenses:
Direct operating expenses
Lodging 2,492 2,364 4,375 4,214
Food and beverage 2,071 2,045 3,810 3,736
Marketing 904 867 1,656 1,614
Utilities 642 611 1,513 1,388
Repairs and maintenance 958 927 1,777 1,745
Rent 329 328 658 659
Insurance 183 193 366 386
Property taxes 369 383 738 766
Other 2,094 1,930 3,779 3,588
Other general and administrative 175 173 303 288
Depreciation and amortization 1,352 1,366 2,704 2,742
Interest expense 1,527 1,541 3,043 3,057
Total expenses 13,096 12,728 24,722 24,183
Net income (loss) 652 393 (2,150) (1,324)
Net income (loss) allocable to
general partner 7 4 (21) (13)
Net income (loss) allocable to
limited partners $ 645 $ 389 $(2,129) $(1,311)
Number of limited partner
units outstanding 4,000 4,000 4,000 4,000
Net income (loss) allocable to
limited partners per unit $ 0.16 $ 0.10 $ (0.53) $ (0.33)
</TABLE>
The accompanying notes are an integral part of the
consolidated financial statements.
PRIME MOTOR INNS LIMITED PARTNERSHIP
AND SUBSIDIARY LIMITED PARTNERSHIP
CONSOLIDATED STATEMENT OF PARTNERS' DEFICIT
(Dollars in Thousands)
Unaudited
<TABLE>
<CAPTION>
Six Months Ended June 30, 1996
General Limited
Partner Partners Total
<S> <C> <C> <C>
Balance at January 1, 1996 $ (729) $ (15,004) $ (15,733)
Net loss for the six months
ended June 30, 1996 (21) (2,129) (2,150)
Balance at June 30, 1996 $ (750) $ (17,133) $ (17,883)
</TABLE>
The accompanying notes are an integral part
of the consolidated financial statements.
PRIME MOTOR INNS LIMITED PARTNERSHIP
AND SUBSIDIARY LIMITED PARTNERSHIP
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
Unaudited
<TABLE>
<CAPTION>
Six Months Ended
June 30,
1996 1995
<S> <C> <C>
Cash flows from operating activities:
Net loss $ (2,150) $ (1,324)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Depreciation and amortization of property
and equipment 2,593 2,568
Lease settlement proceeds - (1,025)
Amortization of other assets 111 174
Amortization of debt discount 23 22
Increase (decrease) from changes in:
Accounts receivable (400) 145
Prepaid expenses 650 683
Other current assets 9 9
Trade accounts payable (112) 73
Accrued payroll and payroll taxes (44) (52)
Accrued vacation 3 -
Accrued utilities (63) 19
Sales tax payable 275 253
Other current liabilities 213 216
Deferred interest (393) (364)
Net cash provided by operating activities 715 1,397
Cash flows from investing activities:
Additions to property and equipment (803) (856)
Decrease (increase) in restricted cash 168 (16)
Net cash used in investing activities (635) (872)
Cash flows from financing activities:
Borrowings under revolving credit facility 1,600 1,200
Repayments of revolving credit facility (1,100) (1,200)
Net cash provided by financing activities 500 -
Net increase in cash and cash equivalents 580 525
Cash and cash equivalents, beginning of period 792 1,368
Cash and cash equivalents, end of period $ 1,372 $ 1,893
Supplementary cash flow data:
Interest paid $ 3,413 $ 3,399
Noncash activities:
Lease settlement proceeds received
from former affiliate in the form
of stock used to reduce long-term debt $ - $ 1,025
</TABLE>
The accompanying notes are an integral part
of the consolidated financial statements.
PRIME MOTOR INNS LIMITED PARTNERSHIP
AND SUBSIDIARY LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION:
In the opinion of the General Partner, the accompanying interim unaudited
financial statements of Prime Motor Inns Limited Partnership (the "Partnership")
and its 99% owned subsidiary, AMI Operating Partners, L.P. ("Operating
Partners"), referred to collectively as the "Partnerships", contain all
adjustments, consisting only of normal recurring adjustments, necessary to
present fairly the financial position of the Partnerships as of June 30, 1996,
their results of operations for the three and six months ended June 30, 1996
and 1995, and their cash flows for the six months ended June 30, 1996
and 1995.
The results of operations for the six months ended June 30, 1996, are not
necessarily indicative of the results to be expected for the full year.
Unless cash flows from operations are sufficient to pay operating expenses
and debt service, and create required reserves, the Partnerships may not be
able to continue as going concerns.
Information included in the consolidated balance sheet as of December 31, 1995
has been derived from the audited balance sheet in the Partnership's Annual
Report on Form 10-K for the year ended December 31, 1995 filed with the
Securities and Exchange Commission (the "1995 Form 10-K"). These interim
unaudited financial statements should be read in conjunction with the audited
consolidated financial statements and other information included in the 1995
Form 10-K.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
The Preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the dates of the financial statements and
reported amounts of revenues and expenses during the reporting periods. Actual
results could differ from those estimates.
Principles of Consolidation
The consolidated financial statements include the accounts of the Partnership
and Operating Partners. Operating Partners operates under a 52/53 week fiscal
year (1995 was a fifty two week year and 1996 is a fifty three week year).
Operating costs of the Partnership are reflected in the consolidated statements
of operations as other general and administrative expenses. All material
intercompany accounts and transactions have been eliminated.
Cash Equivalents
Cash equivalents are highly liquid investments with a maturity of three months
or less when acquired.
Property and Equipment
Property and equipment are stated at the lower of cost or fair market value.
Expenditures for improvements and major renewals are capitalized. Expenditures
for maintenance and repairs, which do not extend the useful life of the asset,
are expensed as incurred. For financial statement purposes, provision is made
for depreciation and amortization using the straight-line method over the lesser
of the estimated useful lives of the assets or the terms of the related leases.
For federal income tax purposes, accelerated methods are used in calculating
depreciation.
Impairment of Long Lived Assets
In March, 1995, the Financial Accounting Standards Board issued SFAS No. 121,
"Accounting for the Impairment of Long Lived Assets", which is effective for
years beginning after December 15, 1995, with earlier adoption encouraged.
The Partnership elected early adoption of SFAS No. 121 in 1995. In accordance
with this new pronouncement, the Partnerships review for impairment and
recoverability of, primarily, property and equipment whenever events or changes
in circumstances indicate that the carrying amount of an asset may not be
recoverable.
Other Assets
Franchise fees, deferred lease costs and deferred debt acquisition costs are
amortized on a straight-line basis over the estimated lives of the assets or
the specific term of the related agreement, lease or mortgage loan.
Net Loss Per Unit
Net loss per Unit is calculated based on net loss allocable to limited
partners divided by the 4,000,000 Units outstanding.
Reclassifications
Certain amounts in the 1995 financial statements have been reclassified to
conform to the 1996 presentation.
3. OPERATIONS OF THE INNS:
Winegardner & Hammons, Inc. ("W&H") manages the operations of the Inns (the
"Inns") pursuant to a management agreement with Operating Partners. At June
30, 1996 and December 31, 1995, the Partnerships had approximately $80,000
and $61,000, respectively, in receivables from an entity controlled by W&H
which manages certain of the Inns' lounges.
4. OTHER ASSETS:
The components of other assets are as follows (dollar amounts in thousands):
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
<S> <C> <C>
Deferred lease costs $ 21 $ 21
Debt acquisition costs 2,839 2,839
Franchise fees 820 820
Other 4 4
3,684 3,684
Less accumulated
amortization 3,031 2,920
$ 653 $ 764
</TABLE>
Amortization of debt acquisition costs charged to expense was $81,000 and
$104,000 in the six months ended June 30, 1996 and 1995, respectively.
Amortization of franchise acquisition costs charged to expense was $30,000
and $70,000 in the six months ended June 30, 1996 and 1995, respectively.
5. DEBT:
The Tranche A portion of the Priming Loan was fully drawn in July, 1994.
Therefore, no additional debt for capital improvements has been incurred by
Operating Partners. All capital improvements and refurbishments made during
the six months ended June 30, 1996 were funded from cash restricted for
acquisition of property and equipment (the "FF&E Reserve").
During the first quarter of 1996, Operating Partners borrowed $1,600,000 from
the revolving credit portion of the Priming Loan, defined as the Tranche B Loan.
This borrowing funded operating expenses that could not be paid from operating
revenues during the first quarter. Operating Partners repaid $1,100,000 of
the Tranche B Loan from excess working capital in the second quarter of 1996,
as required under the Priming Loan.
Long-term debt consists of the following:
<TABLE>
<CAPTION>
June 30, 1996 December 31, 1995
<S> <C> <C>
Mortgage Notes, net of
unamortized discount $ 54,168,000 $ 54,145,000
Priming Loan 12,000,000 11,500,000
66,168,000 65,645,000
Less revolving credit portion of
of Priming Loan, due currently 500,000 -
$ 65,668,000 $ 65,645,000
</TABLE>
Unamortized discount on the Mortgage Notes was $181,000 and $204,000 at June 30,
1996 and December 31, 1995, respectively.
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Financial Condition
The Partnership derives its income from its interest in Operating Partners,
whose income currently is derived from the operations of the Inns. As part
of its 1992 plan of reorganization, Operating Partners restructured its
Mortgage Notes under the Restated Loan Agreement and arranged a Priming Loan
to fund necessary capital improvements and to finance operating deficiencies.
The ability of the Partnership to pay operating expenses and debt service,
and to create required reserves, depends upon the ability of Operating
Partners to increase future cash flows from operations. Unless cash flows
from operations are sufficient, the Partnerships may not be able to continue
as going concerns. It is the intention of the Partnerships to continue to
operate the Inns as going concerns. However, as stated in the 1995 Form 10-K,
it is the present intention of Operating Partners to sell the Moravia Inn.
The Partnerships' investment in the Inns continues to be subject to the risks
generally incident to the ownership of real estate, including those relating
to the uncertainty of cash flow to meet fixed obligations, adverse changes in
national economic conditions, adverse changes in local market conditions,
construction of new hotels and/or the franchising by Holiday Inn of competitor
hotels, changes in interest rates, the availability of financing for operating
or capital needs, changes in real estate tax rates and other operating
expenses, adverse changes in governmental rules and fiscal policies, acts of
God (which may result in uninsured losses), condemnation and other factors
that are beyond the control of the General Partner, the Partnership, Operating
Partners or W&H.
Results of Operations
Operations in the second quarter of 1996 generated net income of $652,000,
compared to $393,000 of net income generated during the second quarter of 1995.
Net loss for the six months ended June 30, 1996 was $2,150,000, as compared
to a net loss of $1,324,000 in the first six months of 1995. Excluding the
lease settlement proceeds of $1,025,000 recognized in the first quarter of
1995, the net loss from operations decreased by $199,000 in the first six
months of 1996, from $2,349,000 in the first six months of 1995 to $2,150,000
in the first six months of 1996.
Total revenues for the three months ended June 30, 1996 increased to
$13,748,000 from $13,121,000 in the corresponding quarter of 1995. Excluding
the $1,025,000 in lease settlement proceeds recognized in the first quarter
of 1995, and the other income, recognized in the first half of each year,
total revenues from operations in the six months ended June 30, 1996 rose
$742,000, to $22,382,000, compared to $21,640,000 in the first six months
of 1995. The increase in revenues is primarily due to the increase in
lodging revenues from the achievement of higher average daily rates (ADR)
at the Inns.
The following table compares lodging revenues, occupancy percentage levels and
ADR, for the periods indicated:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Lodging Revenues $11,096,000 $10,456,000 $17,829,000 $17,123,000
Occupancy 68.7% 69.4% 57.0% 58.6%
ADR $69.50 $64.74 $67.22 $62.74
</TABLE>
The ADR increased 7.4%, or $4.76, from a $64.74 ADR in the second quarter of
1995 to a $69.50 ADR in the second quarter of 1996. For the six months ended
June 30, 1996, the ADR increased 7.1%, or $4.48, from $62.74 in the first six
months of 1995 to $67.22 in the first six months of 1996. This has been
accomplished because the Inns have become less dependent upon higher volume,
lower ADR guests and have continued to attract market segments that are willing
to pay higher room rates. Operating Partners has been able to attract and
maintain the higher rated market segments because of the continued upgrades and
maintenance at the Inns, along with conducting effective internal marketing and
sales promotions. While the Partnerships anticipate that the Inns can continue
to improve their mix of market segments, and thereby increase ADR and improve
profit margins, there can be no assurance as to whether this will be realized,
due to, among other things, competitive pressures in the marketplace.
Occupancies decreased 1.6 percentage points, to 57.0% in the first six months of
1996, as compared to 58.6% during the first six months of 1995. The decline
in occupancy is attributable to two main factors. First, occupancies decreased
2.5 percentage points in the first quarter of 1996 due primarily to the harsh
winter weather in the first quarter of 1996, as compared to the previous year.
Second, the Inns have been removing the higher volume, lower rated ADR market
segments (such as airline crews and tour groups) to provide available rooms
during higher demand periods for the market segments with higher ADR.
Operating Partners believes it will continue to be difficult to significantly
increase the occupancy levels of the Inns due to the lack of increases in
demand where the Inns are located. Contributing to current and
future competition are certain competitor changes, which include conversions of
competitor hotels to be Holiday Inns and the opening of new hotels in certain
markets where the Inns are located.
Food and beverage revenues for the three months ended June 30, 1996, decreased
slightly, to $2,559,000, from $2,565,000 in the second quarter of 1995. The
decline during the quarter is associated with the decline in occupancies
during the second quarter of 1996 as compared to the same quarter of 1995.
During the first six months of 1996, food and beverage revenues have increased
to $4,553,000 from $4,517,000 in the first six months of 1995. The increase
is attributable to increases in food revenues, primarily from increased dinner
and banquet sales, and increases in revenues from meeting room facilities and
amenities during the first quarter or 1996. Increases in these revenues are
associated with the increased sales in the corporate individual and group
business segments, along with increases in food and beverage pricing and
the severe winter weather which stranded guests at the Inns during the first
quarter of 1996.
Direct operating expenses increased $394,000 for the quarter ended June 30,
1996, to $10,042,000, from $9,648,000 during the corresponding quarter of 1995.
A portion of this increase is in lodging expenses, such as room amenities,
travel agent commissions and guest supplies, which are incurred in servicing
the higher rated market segments. In addition, other lodging and food and
beverage expenses increased during the second quarter of 1996 over the same
quarter of 1995, representing inflationary increases in labor and
food costs. Increased marketing costs during the second quarter of 1996
reflect increases in marketing and sales efforts. Utility cost increases are
a result of consumption increases, primarily in the first quarter of
1996, as a result of more severe weather conditions in the current year.
Other direct operating costs increased, principally because certain costs,
such as credit card commissions, Inn management fees and franchise fees are
based upon and increase with revenues. Depreciation and amortization decreased
in the second quarter of 1996 from the second quarter of 1995, due to the
original debt acquisition costs having been fully amortized in the first
quarter of 1995, and certain of the Inn's original franchise acquisition fees
also becoming fully amortized at the end of 1995.
Liquidity and Capital Resources
The following table represents the changes in cash and cash equivalents for the
six months ended June 30, 1996:
<TABLE>
<CAPTION>
<S> <C>
Net cash provided by operating activities $ 715,000
Net cash used in investing activities (635,000)
Net cash provided by financing activities 500,000
Net increase in cash and cash equivalents $ 580,000
</TABLE>
The Inns have historically experienced negative cash flow from operations in the
first quarter of each year and increased cash flows from operations beginning in
the second quarter of each year. As a result of the increase in revenues in
the quarter and six months ended June 30, 1996, compared to the same periods
in 1995, and the improved margins during the second quarter of 1996, the
Partnerships reflected positive cash flows from operations.
Net cash used in investing activities totaled $635,000 for the six months ended
June 30, 1996, resulting from cash utilized for capital improvements and
refurbishments of $803,000, less the net increase in restricted cash of
$168,000. The net increase in restricted cash included a reduction in the
FF&E Reserve of $236,000 (the capital expenditures of $1,252,000 which were
funded from the FF&E Reserve exceeded the $1,016,000 funded to the FF&E
Reserve at 5% of revenues, plus interest earned on the account) net of
an increase of $68,000 in the interest reserve and tax escrow accounts.
Cash provided by financing activities totaled $500,000 for the first six months
of 1996. Operating Partners borrowed $1,600,000 under the Tranche B portion of
the Priming Loan for operating cash deficiencies during the first quarter of
1996 and repaid $1,100,000 of the Tranche B Loan from excess working capital
during the second quarter of 1996.
The Partnerships anticipate that their future earnings, together with the
advances under the Priming Loan, will enable the Partnerships to pay all
operating expenses, service debt, create required reserves and satisfy the
current requirements under the HII franchise agreements. However, while the
Partnerships' budgets and capital plans reflect their present best estimates
of future events, those events are beyond the control of the Partnerships,
the General Partner and W&H, and no assurances can be given that the
Partnerships will have the liquidity to meet future operating and capital
commitments. Further, the "Holiday Inns" franchise of ten of the Inns will
expire on June 30, 1997 and the franchises of two additional Inns will expire
on December 31, 1997. Before the expiration of the franchise for any "Holiday
Inn" property, the property is inspected by HII and that inspection forms the
basis for a Property Improvement Plan ("PIP"), the completion of which is a
condition to the renewal of the franchise for the property. Prior to
December 31, 1995, HII had inspected and prepared PIP's for ten of
the Inns, whose franchises expire in 1997. During the second quarter of 1996,
HII inspected and prepared PIP's for the remaining two hotels whose franchises
expire in 1997, (though HII had previously indicated that it might not renew
those franchises and, accordingly, had not prepared PIP's for those Inns).
Operating Partners' current estimate of the cost of the capital expenditures
of the PIP's for the twelve Inns, could be in the range of $15,000,000,
although Operating Partners believes that the scope of work and related costs
are subject to negotiation. Accordingly, Operating Partners is evaluating,
for each Inn, the relative benefits and costs of renewing the "Holiday Inn"
franchise for the Inn, operating the Inn under other franchises that may be
available, and operating the Inn without a franchise affiliation. In addition,
Operating Partners is evaluating the improvements and expenditures included
in each PIP in order to identify those items that Operating Partners believes
will enhance the Inn's ability to compete in its market and will add
value to the Inn, and those improvements or expenditures that Operating
Partners believes to be less necessary or to add little value. Operating
Partners will then negotiate with HII the scope of work included in each PIP
and the length of time that will be required to complete such improvements.
Generally, in connection with the renewal of the franchise for an Inn,
Operating Partners will have one year, which may be negotiable, from the
franchise expiration date to complete the capital improvements included in
the PIP. It is anticipated that those capital improvements will be financed
partially from the FF&E Reserve and from additional financing, if available.
However, there can be no assurance that additional financing will be available,
or that the Partnerships can obtain financing. Further, the Priming Loan and
Restated Loan Agreements require prior approval by the Lenders of any franchise
changes, capital expenditures or additional financing.
PART II. OTHER INFORMATION AND SIGNATURES
Item 6. Exhibits and Reports on Form 8-K
(b) Reports on Form 8-K
No reports on Form 8-K have been filed during the quarter for
which this report is filed.
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.
PRIME MOTOR INNS LIMITED PARTNERSHIP
(REGISTRANT)
By: Prime-American Realty Corp.
General Partner
Date: August 12, 1996 By: /s/ S. Leonard Okin
S. Leonard Okin
Vice President
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<CURRENCY> U.S. DOLLARS
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 6-MOS
<FISCAL-YEAR-END> DEC-31-1996 DEC-31-1996
<PERIOD-END> JUN-30-1996 JUN-30-1996
<EXCHANGE-RATE> 1 1
<CASH> 0 1372
<SECURITIES> 0 0
<RECEIVABLES> 0 1061
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 366
<PP&E> 0 50356
<DEPRECIATION> 0 0
<TOTAL-ASSETS> 0 55253
<CURRENT-LIABILITIES> 0 4026
<BONDS> 0 0
<COMMON> 0 0
0 0
0 0
<OTHER-SE> 0 (17883)
<TOTAL-LIABILITY-AND-EQUITY> 0 55253
<SALES> 13655 22382
<TOTAL-REVENUES> 13748 22572
<CGS> 4563 8185
<TOTAL-COSTS> 10042 18672
<OTHER-EXPENSES> 1527 3007
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 1527 3043
<INCOME-PRETAX> 652 (2150)
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 0 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 652 (2150)
<EPS-PRIMARY> .16 (.53)
<EPS-DILUTED> .16 (.53)
</TABLE>
