<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the Quarter Ended June 30, 1995
--------------
Commission file number 33-11096
--------------
CRI HOTEL INCOME PARTNERS, L.P.
- -------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Delaware 52-1500621
- ---------------------------------------- ----------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
11200 Rockville Pike, Rockville, Maryland 20852
- ----------------------------------------- ---------------------------
(Address of principal executive officer) (Zip Code)
(301) 468-9200
- -------------------------------------------------------------------------
(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 and (2) has been subject to such filing
requirements for the past 90 days. Yes [X] No [ ]
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
Class Outstanding at June 30, 1995
- --------------------------------- --------------------------------------
(Not applicable) (Not applicable)
<PAGE>
CRI HOTEL INCOME PARTNERS, L.P.
INDEX TO FORM 10-Q
FOR THE QUARTER ENDED JUNE 30, 1995
Page
PART I. Financial Information (Unaudited)
Item 1. Financial Statements
Balance Sheets - June 30, 1995
and December 31, 1994 . . . . . . . . . . . . 1
Statements of Income - for the three and six
months ended June 30, 1995 and 1994 . . . . . 3
Statement of Changes in Partners' Capital (Deficit)
- for the six months ended June 30, 1995 . . 5
Statements of Cash Flows - for the six months
ended June 30, 1995 and 1994 . . . . . . . . 6
Notes to Financial Statements . . . . . . . . . 8
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations . . . . . 11
PART II. Other Information
Item 6. Exhibits and Reports on Form 8-K . . . . . . . 15
Signature . . . . . . . . . . . . . . . . . . . . . . . 16
<PAGE>
PART I. FINANCIAL INFORMATION
---------------------
ITEM 1. FINANCIAL STATEMENTS
--------------------
<TABLE>
<CAPTION>
CRI HOTEL INCOME PARTNERS, L.P.
BALANCE SHEETS
ASSETS
June 30, December 31,
1995 1994
------------ ------------
(Unaudited)
<S> <C> <C>
Property and equipment - at cost
Land $ 1,574,490 $ 1,574,490
Buildings and site improvements 13,112,968 13,112,968
Furniture, fixtures and equipment 4,367,259 4,194,226
Leasehold improvements 1,382,000 1,382,000
------------ ------------
20,436,717 20,263,684
Less: accumulated depreciation
and amortization (7,291,723) (6,891,531)
------------ ------------
13,144,994 13,372,153
Asset held for sale 1,135,556 1,135,556
Cash and cash equivalents 682,789 537,352
Working capital reserve 73,000 150,000
Receivables, reserve for replacements
and other assets 703,811 727,480
Acquisition fees, principally paid to
related parties, net of accumulated
amortization of $252,925 and $235,923,
respectively 767,179 784,181
Property purchase costs, net of
accumulated amortization of $44,842
and $41,804, respectively 137,425 140,463
------------ ------------
Total assets $ 16,644,754 $ 16,847,185
============ ============
</TABLE>
The accompanying notes are an integral part
of these financial statements.
-1-
<PAGE>
PART I. FINANCIAL INFORMATION
---------------------
ITEM 1. FINANCIAL STATEMENTS
--------------------
<TABLE>
<CAPTION>
CRI HOTEL INCOME PARTNERS, L.P.
BALANCE SHEETS
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
June 30, December 31,
1995 1994
------------ ------------
(Unaudited)
<S> <C> <C>
Distributions payable $ 478,650 $ 452,059
Accounts payable and accrued expenses 215,474 184,953
Hotel trade payables 265,934 390,541
Accrued salaries and wages 68,722 76,435
Building lease payable 66,657 91,608
Sales tax payable 76,973 66,763
Accrued management fees 31,196 95,797
Accrued property taxes 105,126 65,722
------------ ------------
1,308,732 1,423,878
------------ ------------
Notes payable 7,180,284 6,865,486
------------ ------------
Total liabilities 8,489,016 8,289,364
------------ ------------
Commitments and contingencies
Partners' capital (deficit):
General Partner (226,715) (218,674)
Beneficial Assignee Certificates (BACs)
Series A; 868,662 BACs issued and
outstanding 8,382,453 8,776,495
------------ ------------
Total partners' capital 8,155,738 8,557,821
------------ ------------
Total liabilities and partners'
capital $ 16,644,754 $ 16,847,185
============ ============
</TABLE>
The accompanying notes are an integral part
of these financial statements.
-2-
<PAGE>
PART I. FINANCIAL INFORMATION
---------------------
ITEM 1. FINANCIAL STATEMENTS
--------------------
<TABLE>
<CAPTION>
CRI HOTEL INCOME PARTNERS, L.P.
STATEMENTS OF INCOME
(Unaudited)
For the three months ended For the six months ended
June 30, June 30,
-------------------------- -------------------------
1995 1994 1995 1994
----------- ------------- ------------ ------------
<S> <C> <C> <C> <C>
Revenue:
Rooms $ 2,399,635 $ 2,359,926 $ 4,981,482 $ 4,826,833
Rental and other 110,043 112,390 219,113 211,606
Telephone 112,751 104,410 217,600 229,189
Food 18,721 21,519 32,514 32,947
Interest and
other income 6,819 9,354 12,556 10,686
----------- ----------- ----------- -----------
Total revenue 2,647,969 2,607,599 5,463,265 5,311,261
----------- ----------- ----------- -----------
Expenses:
Rooms 706,363 679,465 1,392,389 1,297,997
General and
administrative 271,559 278,025 578,714 603,124
Marketing 232,086 266,785 479,764 504,364
Depreciation and
amortization 215,152 233,984 428,141 500,675
Property operations
and maintenance 163,711 156,640 315,677 294,823
Energy 113,128 117,700 257,937 267,051
Management fees 91,806 90,455 189,738 184,454
Property taxes 172,874 78,840 323,242 219,888
Building lease
expense 149,255 153,397 378,732 381,196
Rental and other 35,822 56,962 72,076 104,379
Telephone 43,427 51,559 78,511 102,396
Base asset
management fee,
paid to related
parties 26,250 26,250 52,500 52,500
Food and beverage 19,393 18,836 33,491 31,224
Miscellaneous,
net 12,284 10,914 24,009 20,667
Professional fees 12,426 7,601 22,790 22,560
----------- ----------- ----------- -----------
</TABLE>
The accompanying notes are an integral part
of these financial statements.
-3-
<PAGE>
PART I. FINANCIAL INFORMATION
---------------------
ITEM 1. FINANCIAL STATEMENTS
--------------------
<TABLE>
<CAPTION>
CRI HOTEL INCOME PARTNERS, L.P.
STATEMENTS OF INCOME - Continued
(Unaudited)
For the three months ended For the six months ended
June 30, June 30,
-------------------------- -------------------------
1995 1994 1995 1994
----------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Total operating
costs and
expenses 2,265,536 2,227,413 4,627,711 4,587,298
----------- ----------- ----------- -----------
Operating income 382,433 380,186 835,554 723,963
----------- ----------- ----------- -----------
Other income
(expenses):
Interest
expense (159,163) (145,513) (314,798) (287,800)
Cash flow
guarantees/
(recoveries) -- -- 7,870 5,057
----------- ----------- ----------- -----------
Total other
expenses (159,163) (145,513) (306,928) (282,743)
----------- ----------- ----------- -----------
Net income $ 223,270 $ 234,673 $ 528,626 $ 441,220
=========== =========== =========== ===========
Net income allocated
to General
Partner (2%) $ 4,466 $ 4,693 $ 10,573 $ 8,824
=========== =========== =========== ===========
Net income allocated
to BAC
Holders (98%) $ 218,804 $ 229,980 $ 518,053 $ 432,396
=========== =========== =========== ===========
Net income per BAC
based on
868,662 BACs
outstanding $ 0.26 $ 0.27 $ 0.60 $ 0.50
=========== =========== =========== ===========
</TABLE>
The accompanying notes are an integral part
of these financial statements.
-4-
<PAGE>
PART I. FINANCIAL INFORMATION
---------------------
ITEM 1. FINANCIAL STATEMENTS
--------------------
<TABLE>
<CAPTION>
CRI HOTEL INCOME PARTNERS, L.P.
STATEMENT OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
For the six months ended June 30, 1995
(Unaudited)
Beneficial
Assignee
General Certificate
Partner Holders Total
--------- ------------ ------------
<S> <C> <C> <C>
Balance, December 31, 1994 $(218,674) $ 8,776,495 $ 8,557,821
Distributions paid or accrued
of $1.05 per BAC (18,614) (912,095) (930,709)
Net income 10,573 518,053 528,626
--------- ------------ ------------
Balance, June 30, 1995 $(226,715) $ 8,382,453 $ 8,155,738
========= ============ ============
</TABLE>
The accompanying notes are an integral part
of these financial statements.
-5-
<PAGE>
PART I. FINANCIAL INFORMATION
---------------------
ITEM 1. FINANCIAL STATEMENTS
--------------------
<TABLE>
<CAPTION>
CRI HOTEL INCOME PARTNERS, L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)
For the six months ended
June 30,
------------------------------
1995 1994
------------ ------------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 528,626 $ 441,220
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 428,141 500,675
Accrued interest on notes payable 314,798 287,800
Changes in assets and liabilities:
Increase in receivables
and other assets, net (4,970) (108,518)
Increase in accounts payable and
accrued expenses 30,521 135,006
Decrease in hotel trade payables (124,607) (103,246)
Decrease in accrued salaries and
wages (7,713) (24,618)
Decrease in building lease payable (24,951) (325,185)
Increase in sales tax payable 10,210 18,150
Increase in accrued property taxes 39,404 4,246
Decrease in accrued management fees (64,601) --
------------ ------------
Net cash provided by operating
activities 1,124,858 825,530
------------ ------------
Cash flows from investing activities:
Purchase of property and equipment (173,033) (107,192)
Net withdrawals from reserve for
replacements 20,730 --
Decrease in working capital reserves 77,000 --
------------ ------------
Net cash used in investing
activities (75,303) (107,192)
------------ ------------
</TABLE>
The accompanying notes are an integral part
of these financial statements.
-6-
<PAGE>
PART I. FINANCIAL INFORMATION
---------------------
ITEM 1. FINANCIAL STATEMENTS
--------------------
<TABLE>
<CAPTION>
CRI HOTEL INCOME PARTNERS, L.P.
STATEMENTS OF CASH FLOWS - Continued
(Unaudited)
For the six months ended
June 30,
----------------------------
1995 1994
------------ ------------
<S> <C> <C>
Cash flows from financing activities:
Distributions paid to BAC Holders and
General Partner (904,118) (596,900)
------------ ------------
Net increase in cash and cash equivalents 145,437 121,438
Cash and cash equivalents, beginning of
period 537,352 715,947
------------ ------------
Cash and cash equivalents, end of period $ 682,789 $ 837,385
============ ============
</TABLE>
The accompanying notes are an integral part
of these financial statements.
-7-
<PAGE>
CRI HOTEL INCOME PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. BASIS OF PRESENTATION
In the opinion of CRICO Hotel Associates I, L.P. (the General Partner), the
accompanying unaudited financial statements of CRI Hotel Income Partners, L.P.
(the Partnership) contain all adjustments of a normal recurring nature necessary
to present fairly the Partnership's financial position as of June 30, 1995 and
December 31, 1994, and the results of its operations for the three and six
months ended June 30, 1995 and 1994 and its cash flows for the six months ended
June 30, 1995 and 1994.
These unaudited financial statements have been prepared pursuant to the
rules and regulations of the Securities and Exchange Commission. Certain
information and note disclosures normally included in financial statements
prepared in accordance with generally accepted accounting principles have been
condensed or omitted. While the General Partner believes that the disclosures
presented are adequate to make the information not misleading, it is suggested
that these financial statements be read in conjunction with the financial
statements and the notes included in the Partnership's Annual Report filed on
Form 10-K for the year ended December 31, 1994.
2. COMMITMENTS
a. Hotel operations management agreements
--------------------------------------
The Partnership entered into management agreements with Buckhead Hotel
Management Company, Inc. (Buckhead) in connection with operations of the
hotels. Each agreement was for an initial term of ten years, with a
five-year renewal option. The agreements called for a base management fee
of 2.5% of gross revenue from operations, a marketing fee of 1.5% of net
room revenues, and a reservation fee of 2.3% of gross revenues from rental
of hotel guest rooms. The agreements also called for incentive management
fees generally equal to 25% of net cash flow available after payment of a
preferred cash flow return to the Partnership equal to 11% of the aggregate
purchase price for the hotels owned by the Partnership.
On January 1, 1993, the management agreements between the Partnership
and Buckhead were amended to extend the existing term of each agreement for
an additional two to five years and increase the base management fee from
2.5% to 3.5% of gross revenue. The Partnership accepted these
modifications to the management agreements in lieu of having the agreements
terminated by Buckhead in its Chapter 11 Bankruptcy case (filed in 1991).
Had the Partnership contracted with another management agent, costs (which
would have included franchise fees currently not payable because of
Buckhead's management of the hotels) were expected to exceed the increase
in management fees. The amendments for the Clearwater Days Inn and the
Scottsdale Days Inn included a modification to the method of calculating
the incentive management fee. No incentive management fees were earned or
paid for the first or second quarters of 1995 or 1994.
-8-
<PAGE>
CRI HOTEL INCOME PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
2. COMMITMENTS - Continued
b. Ground lease agreement
----------------------
The Partnership entered into a lease with Vicorp Restaurants, Inc.
(Vicorp) effective January 1991, for a portion of the Minneapolis Days Inn
property to operate a restaurant (Baker's Square). Gross rental income
pursuant to the lease agreement, which is included in rental and other
revenue on the accompanying statements of income, was $12,193 and $24,385
for the three and six months ended June 30, 1995, respectively, and $11,780
and $23,560 for the three and six months ended June 30, 1994, respectively.
3. DISTRIBUTIONS TO BAC HOLDERS
The following distributions were paid or accrued to BAC Holders of record
during the first and second quarters of 1995 and 1994:
<TABLE>
<CAPTION>
1995 1994
Distributions to Distributions to
BAC Holders BAC Holders
------------------- -----------------
<S> <C> <C> <C> <C>
Quarter Ended Total Per BAC Total Per BAC
------------- --------- ------- --------- -------
March 31, $ 443,018 $ 0.51 $ 349,550 $ 0.40
June 30, 469,077 0.54 443,969 0.51
--------- ------- --------- -------
Total $ 912,095 $ 1.05 $ 793,519 $ 0.91
========= ======= ========= =======
</TABLE>
The distribution for the quarter ended June 30, 1995 is expected to be made
on August 29, 1995. The General Partner anticipates the distribution for the
quarter ended September 30, 1995 to range from $0.49 to $0.57 per BAC. Due to
the expiration of the remaining cash flow guarantees during 1993, distributions
are dependent on the net cash flow produced from hotel operations, net of
Partnership expenses. The cash flow from certain hotels may be materially
affected by changing market conditions and by seasonality.
4. RELATED PARTY TRANSACTIONS
The Partnership, in accordance with the terms of the Partnership Agreement,
is obligated to reimburse the General Partner or its affiliates for their direct
expenses in connection with managing the Partnership. The Partnership paid or
accrued $14,606 and $26,141 for the three and six months ended June 30, 1995,
respectively, and $15,248 and $28,401 for the three and six months ended June
30, 1994, respectively, to the General Partner or its affiliates as direct
reimbursement of expenses incurred on behalf of the Partnership. Such
reimbursements are included in general and administrative expense on the
-9-
<PAGE>
CRI HOTEL INCOME PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
4. RELATED PARTY TRANSACTIONS - Continued
statements of income.
The amount of the base asset management fee earned by the General Partner
or its affiliates is equal to 0.50% of the weighted average balance of the
adjusted partnership investment during the period, as defined in the Partnership
Agreement. During the three and six months period ended June 30, 1995 and 1994,
the Partnership paid or accrued a base asset management fee of $26,250 and
$52,500, respectively.
5. HOTELS OWNED BY THE PARTNERSHIP
On October 20, 1994, a contract for the sale of the Kankakee hotel was
signed. The sale was completed on July 19, 1995. Accordingly, the assets of
this hotel are classified as an asset held for sale on the balance sheets as of
June 30, 1995 and December 31, 1994. The sales price of the property of $1.2
million generated sufficient proceeds to the Partnership to retire the purchase
money note obligation of the Partnership with respect to such property. The
sale will result in a net financial statement loss and a net tax loss of
approximately $70,000, and $670,000, respectively. Reserves for loss on the
sale of the Kankakee hotel of $200,000 and $400,000 were recognized for
financial statement purposes in 1993 and 1994, respectively.
On February 21, 1995 and May 10, 1995, the Partnership advanced $35,000 and
$42,000, respectively, from the working capital reserves to the Kankakee hotel
to fund the hotel's short-term working capital needs. These advances were
repaid on July 19, 1995 from sales proceeds of the Kankakee hotel, as discussed
above.
-10-
<PAGE>
PART I. FINANCIAL INFORMATION
---------------------
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
-------------------------------------------------
CONDITION AND RESULTS OF OPERATIONS
-----------------------------------
Financial Condition/Liquidity
------------------------------
CRI Hotel Income Partners, L.P. (the Partnership) expects that the hotels
in the aggregate will generate sufficient cash to achieve a positive cash flow
after operating expenses. Other than the periodic replacement of fixed assets,
which are funded from the replacement reserves, there are no material
commitments for capital expenditures.
Due to the expiration of all remaining cash flow guarantees in 1993, the
Partnership's liquidity and future results of operations are primarily dependent
upon the performance of the underlying hotels. Hotel operations may be
materially affected by changing market conditions and by seasonality caused by
variables such as vacations, holidays and climate. The Partnership closely
monitors its cash flow position in an effort to ensure that sufficient cash is
available for operating requirements and distributions to BAC Holders. The
Partnership's net cash provided by operating activities for the six months ended
June 30, 1995, was adequate to support operating, investing and financing
requirements and the distributions to BAC Holders and the General Partners. The
Partnership estimates that existing cash and cash equivalents along with future
cash flows from the hotels' operations, in the aggregate, will be sufficient to
pay operating expenses and short term commitments, fund replacement reserves,
and make distributions to BAC Holders. Short-term commitments of $1,308,732
decreased from December 31, 1994.
The Partnership's notes payable, including accrued interest, are scheduled
to mature in 1997 and 1998. The Kankakee note payable of $434,925 plus accrued
interest of $440,746 was paid off on July 19, 1995 in connection with the sale
of the hotel, as discussed below. The Managing General Partner is currently
investigating refinancing options for the remaining notes. There is no
assurance that a refinancing or refinancings will be completed.
On October 20, 1994, a contract for the sale of the Kankakee hotel was
signed. The sale was completed on July 19, 1995. Accordingly, the assets of
this hotel are classified as an asset held for sale on the balance sheets as of
June 30, 1995 and December 31, 1994. The sales price of the property of $1.2
million generated sufficient proceeds to the Partnership to retire the purchase
money note obligation of the Partnership with respect to such property. The
sale will result in a net financial statement loss and a net tax loss of
approximately $70,000, and $670,000, respectively. Reserves for loss on the
sale of the Kankakee hotel of $200,000 and $400,000 were recognized for
financial statement purposes in 1993 and 1994, respectively. The sale of the
Kankakee hotel is not expected to have a negative effect on the net income or
cash flow of the Partnership.
On February 21, 1995 and May 10, 1995, the Partnership advanced $35,000 and
$42,000, respectively, from the working capital reserves to the Kankakee hotel
to fund the hotel's short-term working capital needs. These advances were
repaid on July 19, 1995 from sales proceeds of the Kankakee hotel, as discussed
above.
-11-
<PAGE>
PART I. FINANCIAL INFORMATION
---------------------
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
-------------------------------------------------
CONDITION AND RESULTS OF OPERATIONS - Continued
-----------------------------------
The following distributions were paid or accrued to BAC Holders of record
during the first and second quarters of 1995 and 1994:
<TABLE>
<CAPTION>
1995 1994
Distributions to Distributions to
BAC Holders BAC Holders
------------------- -----------------
<S> <C> <C> <C> <C>
Quarter Ended Total Per BAC Total Per BAC
------------- --------- ------- --------- -------
March 31, $ 443,018 $ 0.51 $ 349,550 $ 0.40
June 30, 469,077 0.54 443,969 0.51
--------- ------- --------- -------
Total $ 912,095 $ 1.05 $ 793,519 $ 0.91
========= ======= ========= =======
</TABLE>
The distribution for the quarter ended June 30, 1995 is expected to be made
on August 29, 1995. The General Partner anticipates the distribution for the
quarter ended September 30, 1995 to range from $0.49 to $0.57 per BAC. Due to
the expiration of the remaining cash flow guarantees during 1993, distributions
are dependent on the net cash flow produced from hotel operations, net of
Partnership expenses. The cash flow from certain hotels may be materially
affected by changing market conditions and by seasonality.
Results of Operations
---------------------
The Partnership's net income, which consists principally of revenues from
hotel operations, did not change significantly during the three months ended
June 30, 1995 from the comparable period in 1994.
The Partnership's net income increased during the six months ended June 30,
1995 from the comparable period in 1994 primarily due to a 3.2% increase in room
revenue. Room revenue increased in 1995 primarily due to an increase in average
occupancy at three of the six hotels, as well as an increase in average room
rates at certain hotels. Contributing to the increase in net income was a
decrease in depreciation and amortization expense as a result of the
reclassification of the Kankakee hotel as an asset held for sale. Partially
offsetting the increase in net income was an increase in room expenses,
resulting from the increase in occupancy, as discussed herein, as well as an
increase in property taxes due to a one-time refund of real estate taxes for one
property in 1994 due to a successful petition to lower the assessment.
-12-
<PAGE>
PART I. FINANCIAL INFORMATION
---------------------
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
-------------------------------------------------
CONDITION AND RESULTS OF OPERATIONS - Continued
-----------------------------------
Hotels' Results of Operations
-----------------------------
The hotels' results of operations are affected by changing market
conditions and by seasonality caused by variables such as vacations, holidays
and climate. Based on the hotels' operating budgets, the following months
should provide the highest gross operating income and net cash flow:
<TABLE>
<CAPTION>
Hotel Location Peak Months
-------------- ---------------------
<C> <C>
Clearwater, FL October through April
Kankakee, IL May through October
Minneapolis, MN May through October
Plymouth, MN June through October
Roseville, MN May through October
Scottsdale, AZ January through May
</TABLE>
The Statements of Operations include operating results for each of the
hotels as outlined below. Gross Operating Income represents total revenue less
departmental expenses. Net Cash Flow (Deficit) represents cash flow after
operating expenses. The operating results and average occupancy for the hotels
for the three and six months ended June 30, 1995 and 1994 are as follows:
<TABLE>
<CAPTION>
Gross Operating Income Gross Operating Income
For the three months ended For the six months ended
June 30, June 30, June 30, June 30,
Hotel Location 1995 1994 1995 1994
- -------------- ----------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
Clearwater, FL $ 300,935 $ 262,856 $ 663,392 $ 608,596
Kankakee,IL 76,921 148,824 115,128 247,923
Minneapolis, MN 415,510 376,667 771,157 692,689
Plymouth, MN 216,777 207,906 388,640 331,733
Roseville, MN 246,157 227,330 438,770 404,495
Scottsdale, AZ 567,935 562,833 1,473,323 1,468,725
----------- ----------- ---------- ----------
Total $ 1,824,235 $ 1,786,416 $3,850,410 $3,754,161
=========== =========== ========== ==========
</TABLE>
-13-
<PAGE>
PART I. FINANCIAL INFORMATION
---------------------
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
-------------------------------------------------
CONDITION AND RESULTS OF OPERATIONS - Continued
-----------------------------------
<TABLE>
<CAPTION>
Net Cash Flow (Deficit) Net Cash Flow (Deficit)
For the three months ended For the six months ended
June 30, June 30, June 30, June 30,
Hotel Location 1995 1994 1995 1994
- -------------- ----------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
Clearwater, FL $ 128,651 $ 98,990 $ 326,582 $ 272,468
Kankakee,IL (54,535) 33,931 (120,494) 26,262
Minneapolis, MN 197,584 159,113 319,508 255,233
Plymouth, MN 71,749 101,691 90,482 82,455
Roseville, MN 93,398 64,292 115,524 69,342
Scottsdale, AZ 133,626 99,604 467,047 444,387
----------- ----------- ---------- ----------
Total $ 570,473 $ 557,621 $1,198,649 $1,150,147
=========== =========== ========== ==========
Average Occupancy Average Occupancy
For the three months ended For the six months ended
June 30, June 30, June 30, June 30,
Hotel Location 1995 1994 1995 1994
- -------------- ----------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
Clearwater, FL 84% 79% 85% 84%
Kankakee, IL 33% 59% 29% 50%
Minneapolis, MN 91% 93% 87% 89%
Plymouth, MN 84% 86% 78% 71%
Roseville, MN 93% 90% 89% 84%
Scottsdale, AZ 96% 97% 97% 98%
----------- ----------- ---------- ----------
Total(1) 82% 84% 80% 79%
=========== =========== ========== ==========
</TABLE>
(1) The totals for average occupancy are based on a weighted average taking
into consideration the number of rooms at each location.
-14-
<PAGE>
PART I. FINANCIAL INFORMATION
---------------------
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
-------------------------------------------------
CONDITION AND RESULTS OF OPERATIONS - Continued
-----------------------------------
Gross operating income and net cash flow for the Clearwater hotel for the
three and six months ended June 30, 1995 increased from the same periods in 1994
primarily due to an increase in average room rates and management's
implementation of cost-control strategies. Gross operating income and net cash
flow for the Kankakee hotel for the three and six months ended June 30, 1995
decreased from the same periods in 1994 primarily due to the re-opening of a
nearby competitor, as well as the opening of a new competitor in 1994. Gross
operating income and net cash flow for the Minneapolis hotel for the three and
six months ended June 30, 1995 increased from the same periods in 1994 primarily
due to an increase in room rates resulting from management's marketing programs.
Gross operating income for the Plymouth hotel for the three and six months ended
June 30, 1995 increased from the same periods in 1994 primarily due to an
increase in room rates resulting from increased group volume. Net cash flow for
the Plymouth hotel for the three months ended June 30, 1995 decreased for the
same period in 1994 primarily due to a one-time refund of real estate taxes in
1994 resulting from a successful petition to lower the assessment. Net cash
flow for the Plymouth hotel for the six months ended June 30, 1995 increased
from the same period in 1994 primarily due to the hotel's ability to replace
certain contract business with higher rated business through direct sales
efforts. Gross operating income and net cash flow for the Roseville hotel for
the three and six months ended June 30, 1995 increased from the same periods in
1994 primarily due to an increase in occupancy resulting from increased room
demand in the Roseville area. Gross operating income and net cash flow for the
Scottsdale hotel for the three and six months ended June 30, 1995 increased from
the same periods in 1994 primarily due to increased cost control efforts.
PART II. OTHER INFORMATION
-----------------
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
--------------------------------
No reports on Form 8-K were filed with the Commission during the quarter
ended June 30, 1995.
All other items are not applicable.
-15-
<PAGE>
SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, Registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
CRI HOTEL INCOME PARTNERS, L.P.
By: CRICO Hotel Associates I, L.P.
General Partner
By: CRI, Inc.
General Partner
August 11, 1995 By:/s/ Richard J. Palmer
- --------------------- -------------------------------------
Date Richard J. Palmer
Senior Vice President/Finance
Signing on behalf of the Registrant
and as Principal Accounting Officer
-16-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE SECOND QUARTER 10-Q AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH 10-Q.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 682,789
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 20,436,717
<DEPRECIATION> 7,291,723
<TOTAL-ASSETS> 16,644,754
<CURRENT-LIABILITIES> 1,308,732
<BONDS> 7,180,284
<COMMON> 0
0
0
<OTHER-SE> 8,155,738
<TOTAL-LIABILITY-AND-EQUITY> 16,644,754
<SALES> 0
<TOTAL-REVENUES> 5,463,265
<CGS> 0
<TOTAL-COSTS> 4,627,711
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 314,798
<INCOME-PRETAX> 528,626
<INCOME-TAX> 0
<INCOME-CONTINUING> 528,626
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 528,626
<EPS-PRIMARY> 0.60
<EPS-DILUTED> 0.60
</TABLE>
