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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report
February 9, 2000
CRI HOTEL INCOME PARTNERS, L.P.
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(Exact name of registrant as specified in its charter)
Delaware
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(State or other jurisdiction of incorporation)
33-11096 52-1500621
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(Commission File Number) (IRS Employer Identification No.)
11200 Rockville Pike, Rockville, Maryland 20852
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(Address of principal executive offices) (Zip Code)
(301) 468-9200
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(Issuer's telephone number, including area code)
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ITEM 5. OTHER EVENTS
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Information contained in this Form 8-K and Exhibit thereto may be
considered forward looking. Actual results may differ materially from those
described in the forward looking statements and will be affected by a variety of
factors including national and local economic conditions, the general level of
interest rates, governmental regulations affecting CRI Hotel Income Partners,
L.P. (CHIPS) and interpretation of those regulations, the competitive
environment in which CHIPS operates, and the availability of working capital.
On February 2, 2000, the Managing General Partner of CHIPS determined that
there was no cash available for distribution out of net cash flow produced from
hotel operations during the fourth quarter of 1999. Further, it is not expected
that there will be cash available for distribution out of net cash flow produced
from hotel operations during the first quarter of 2000.
Attached as Exhibit A is a copy of a letter to be sent on February 11, 2000
to all holders of Beneficial Assignee Certificates in CHIPS.
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SIGNATURE
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 hereunto duly authorized.
CRI HOTEL INCOME PARTNERS, L.P.
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(Registrant)
by: CRICO Hotel Associates I, L.P.
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General Partner
by: C.R.I., Inc.
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its General Partner
February 9, 2000 by: /s/ Michael J. Tuszka
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DATE Michael J. Tuszka
Vice President
and Chief Accounting Officer
(Principal Financial Officer
and Principal Accounting Officer)
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EXHIBIT A
February 11, 2000
Dear Investor:
CRICO Hotel Associates L.P., as general partner of CRI Hotel Income Partners
L.P. (CHIPS), regrets to announce that the partnership will not make a quarterly
distribution for the fourth quarter of 1999.
The 1998 and 1999 operations of the five Days Inn hotels in which CHIPS has
invested have been negatively impacted by increased competition in the mid-range
hotel industry. Reasonable interest rates and a booming economy over the past
several years have led to the construction of new hotels. CHIPS' Days Inn
hotels which, although well maintained and periodically refurbished, range from
14 to 32 years old, have found it more difficult to compete with new or
refurbished hotels in their marketplaces. As a result, the occupancy and room
rates of the CHIPS' hotels, in the aggregate, have decreased overall for the
last two years. These decreases, combined with the monthly debt service
payments as a result of the required 1997 refinancing, have resulted in
decreased net cash flow to CHIPS of approximately $200,000 in 1999 versus 1998.
Currently, CHIPS' cash flow is limited and its cash reserves are at a minimum.
The temporary suspension of distributions should allow CHIPS to replenish its
reserves. The general partner will continue to monitor and evaluate the first
and second quarter 2000 cash position to determine when it will be possible to
resume distributions.
The financial statements of CHIPS are currently undergoing their annual audit.
The financial statements and the related information will be mailed to you in
May 2000. In the meantime, if you have any questions, please call CRI
Investment Communications at 301-231-0384.
Very truly yours,
CRI HOTEL INCOME PARTNERS, L.P.
By: CRICO Hotel Associates I, L.P.
its General Partner
By: C.R.I., Inc.
its General Partner
William B. Dockser H. William Willoughby
Chairman of the Board President
