<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-QSB - Quarterly or Transitional Report
/X/ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1998
// TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from to
Commission File Number 33-11224-LA
Mission Valley Comfort Suites Ltd., A California Limited Partnership
(Exact name of small business issuer as specified in its charter)
California 33-0213497
(State or other jurisdiction of I.R.S. Employer
incorporation or organization) Identification Number)
1466 9th Avenue, San Diego, CA 92101
(Address of principal executive offices)
(619) 699-6100
(Issuer's telephone number)
(Former name, former address and former fiscal year, if changed since
last report)
Check whether the registrant (1) has filed all reports required to be filed by
Sections 13 or 15(d) of the Exchange Act during the last 12 months (or for such
shorter period that the issuer was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days.
Yes /x/ No / /
State the number of limited partnership interests outstanding as of the latest
practicable date: 5,900
<PAGE>
PART I. -- FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Incorporated herein is the following unaudited financial information:
Balance Sheet as of June 30, 1998 and December 31, 1997.
Statement of Operations for the three and six month periods ended June 30, 1998
and June 30, 1997.
Statement of Cash Flows for the three and six month periods ended June 30, 1998
and June 30, 1997.
Notes to Financial Statements.
<PAGE>
MISSION VALLEY COMFORT SUITES LTD.
A California Limited Partnership
Balance Sheet
June 30, 1998 and December 31, 1997
(Unaudited)
(Part 1 of 2)
<TABLE>
<CAPTION>
June 30, December 31,
ASSETS 1998 1997
-------------- ------------- ----------------
<S> <C> <C>
Current Assets:
Cash and cash equivalents $ 315,960 $ 146,672
Accounts receivable 19,677 14,255
Operating supplies 15,958 15,011
Prepaid expenses 20,716 36,150
----------- -----------
Total current assets 372,311 212,088
Investment property, at cost:
Building and improvements 4,633,720 4,617,037
Furniture, fixtures & equipment 1,253,298 1,225,209
------------ ------------
5,887,018 5,842,246
Less accumulated depreciation 2,458,947 2,357,571
------------ -------------
Total investment property, net
of accumulated depreciation 3,428,071 3,484,675
Franchise fees, net (note 2) 25,417 26,667
------------- --------------
$ 3,825,799 $ 3,723,430
============ ==============
</TABLE>
See accompanying notes to financial statements.
Page 1
<PAGE>
MISSION VALLEY COMFORT SUITES LTD.
A California Limited Partnership
Balance Sheet
June 30, 1998 and December 31, 1997
(Unaudited)
(Part 2 of 2)
<TABLE>
<CAPTION>
LIABILITIES AND June 30, 1998 December 31, 1997
PARTNER'S CAPITAL ACCOUNTS ----------------- -------------------
------------------------------ <C> <C>
<S>
Current liabilities:
Current portion on long-term debt $ 11,395 $ 9,891
Accounts payable and accrued expenses 79,240 67,510
Due to Affiliates (note 4) 35,983 28,629
---------- ----------
Total current liabilities 126,618 106,030
---------- ----------
Long-term debt, less current portion 177,570 197,190
Deferred rent liability (note 6) 1,439,082 1,453,917
----------- ------------
Total liabilities 1,743,270 1,757,137
------------ ------------
Partners' capital accounts:
General partners:
Capital contributions 31,210 31,210
Cumulative net earnings ( 87,162) (101,786)
Cumulative cash distributions (212,140) (209,140)
------------ -------------
(268,092) (279,716)
------------ -------------
Limited partners:
Capital contributions, net of offering costs 5,117,287 5,117,287
Cumulative net earnings (784,459) ( 916,070)
Cumulative cash distributions (1,982,207) (1,955,208)
------------- -------------
2,350,621 2,246,009
------------- -------------
Total partners' capital accounts 2,082,529 1,966,293
------------- -------------
$3,825,799 $3,723,430
============= =============
</TABLE>
See accompanying notes to financial statements.
Page 2
<PAGE>
MISSION VALLEY COMFORT SUITES LTD.,
A California Limited Partnership
Statement of Operations
Three Months and Six Months Ended
June 30, 1998 and June 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
June 30, June 30, June 30, June 30,
1998 1997 1998 1997
----------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
Revenues:
Room revenues $ 584,191 $ 492,526 $1,041,586 $950,081
Phone revenue 6,522 8,953 14,038 19,135
Interest income 598 244 1,514 315
Other income 8,411 9,178 34,075 16,793
---------- ---------- ---------- ----------
599,722 510,901 1,091,213 986,324
---------- ---------- ---------- ----------
Expenses:
Property operating expenses 207,421 173,018 367,910 327,354
Depreciation 50,683 48,434 101,376 96,722
General and administrative 47,401 49,226 104,694 101,573
REIT Proposal costs 0 9,092 0 9,092
Amortization 625 625 1,250 1,250
Management fees 36,059 30,639 64,342 59,165
Royalties and advertising 40,812 37,643 72,538 66,593
Real estate taxes 19,252 19,045 37,177 36,469
Interest expense 5,405 4,873 9,690 9,599
Lease expense 57,815 57,038 115,630 114,076
Marketing 10,985 11,066 28,090 30,192
Repairs & Maintenance 21,311 12,778 42,279 29,858
---------- ---------- ---------- ----------
497,769 453,477 944,976 881,943
---------- ---------- ---------- ----------
Net earnings $101,953 $ 57,424 $ 146,237 $ 104,381
========== ========== =========== ===========
Net earnings per limited
partnership interest $15.55 $ 8.76 $22.31 $15.92
======= ======= ======= =======
</TABLE>
See accompanying notes to financial statements.
Page 3
<PAGE>
MISSION VALLEY COMFORT SUITES LTD.,
A California Limited Partnership
Statement of Cash Flows
Three Months and Six Months Ended
June 30, 1998 and June 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
June 30, June 30,
1998 1997 1998 1997
------- ------- ------- --------
<S> <C> <C> <C> <C>
Cash flows from operating activities:
Net earnings (loss) $ 101,953 $ 57,424 $ 146,237 $104,381
Adjustments to reconcile net income to cash:
Depreciation and amortization 51,308 49,059 102,626 97,972
(Increase) decrease in:
Accounts receivable 29,420 13,161 (5,422) 26,899
Operating supplies 1,629 629 (947) 188
Prepaid expenses 22,109 (31,766) 15,434 (16,021)
Increase (decrease) in:
Accounts payable and
accrued expenses (219) 4,662 11,730 11,236
Due to/from Affiliates 25,267 (24,447) 7,354 (1,219)
Deferred rent liability (7,418) (7,418) (14,835) (14,836)
Net cash provided by ------------ ----------- ---------- ----------
(used in) operating
activities 224,047 61,302 262,175 208,600
------------ ----------- ---------- ----------
Cash flows from investing activities:
Investment property
expenditures 0 (8,079) (44,772) (10,394)
----------- ----------- ---------- ----------
Net cash used in
investing activities 0 (8,079) (44,772) (10,394)
----------- ----------- ----------- ---------
Cash flows from financing activities:
Proceeds/(Payments) of
notes payable (9,149) (8,447) (18,116) (12,421)
Cash distributions to partners (29,999) (65,000) (29,999) (65,000)
Net cash provided by (used ------------ ----------- ----------- ---------
in) financing activities (39,148) (73,447) (48,115) (77,421)
------------ ----------- ---------- ---------
Net increase in cash and
cash equivalents 184,899 (20,223) 169,288 120,785
Cash and cash equivalents,
beginning of period 131,061 216,550 146,672 75,541
----------- ----------- ---------- ----------
Cash and cash equivalents,
end of period 315,959 196,326 315,959 196,326
=========== =========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
Page 4
<PAGE>
MISSION VALLEY COMFORT SUITES LTD.,
A California Limited Partnership
Notes to Financial Statements
June 30, 1998
Readers of this quarterly report should refer to the partnership audited
financial statements and annual report Form 10-KSB (File No. 33-11224-LA) for
the period ended December 31, 1997, as certain footnote disclosures which
would substantially duplicate those contained in such financial reports have
been omitted from this report.
1. THE PARTNERSHIP AND A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Mission Valley Comfort Suites Ltd., A California Limited Partnership (the
Partnership), (formerly Motels of America Series X), a California Limited
Partnership, was formed on September 18, 1987 pursuant to the California
Revised Uniform Limited Partnership Act. The purpose of the Partnership
is to construct, own, and operate a 122-room "suites only" motel under a
franchise agreement with Choice Hotels International, Inc. The motel was opened
in September 1988. As more fully discussed in Note 8, the motel was sold on
July 2, 1998. The following is a summary of the Partnership's significant
accounting policies:
Cash and Cash Equivalents
The Partnership considers all highly liquid instruments purchased with an
original maturity of three months or less to be cash equivalents.
Investment Property
Investment property is recorded at cost. Depreciation is computed using the
straight-line method based on estimated useful lives of 5 to 35 years.
Maintenance and repair costs are expensed as incurred, while significant
improvements, replacements, and major renovations are capitalized.
Franchise Fees
Franchise fees are amortized over the 20-year life of the franchise agreement.
Income Taxes
No provision for income taxes has been made as any liability for such taxes
would be that of the partners rather than the Partnership.
Net Income per Interest
Net income per interest is based upon the 90% allocated to limited partners
divided by 5,900 limited partner interests outstanding throughout the year.
(Continued)
Page 5
<PAGE>
MISSION VALLEY COMFORT SUITES LTD.,
A California Limited Partnership
Notes to Financial Statements (Continued)
2. PARTNERSHIP AGREEMENT
Net income or loss and cash distributions from operations of the Partnership are
allocated 90% to the limited partners and 10% to the general partner. Profits
from the sale or other disposition of Partnership property are to be
allocated to the general partner until its capital account equals zero;
thereafter, to the limited partners until their capital accounts equal their
capital contributions reduced by prior distributions of cash from sale or
refinancing plus an amount equal to a cumulative but not compounded annual
8% return thereon which cumulative return shall be reduced (but not below
zero) by the aggregate amount of prior distributions of cash available for
distribution; thereafter, gain shall be allocated 15% to the general partner and
85% to the limited partners. Loss from sale shall be allocated 1% to the
general partner and 99% to the limited partners.
3. FRANCHISE AGREEMENT
The Partnership has entered into a twenty-year franchise agreement with Choice
Hotels International, Inc. to provide the Partnership with consultation in
the areas of design, construction and operation of the motel. The agreement
required the payment of initial franchise fees of $50,000 and requires
ongoing royalty and chain-affiliated advertising fees based on a percentage
of gross room revenues.
After the sale of the motel on July 2, 1998 (see Note 8), the partnership
notified Choice Hotels International (Choice) that it was electing to
terminate the franchise agreement. Under the terms of the franchise
agreement, the partnership may be liable to Choice for certain fees and other
costs resulting from the sale of the motel and the election to terminate the
franchise agreement. The buyer is presently negotiating with Choice regard-
ing a possible new franchise agreement, and the buyer has agreed to indemnify
the partnership for any and all claims made by Choice related to the sale of
the motel and the election to terminate the franchise agreement.
4. RELATED PARTY TRANSACTIONS
The motel is operated pursuant to a management agreement with GHG Hospitality,
Inc. (GHG), the general partner. The agreement provides for the payment of
monthly management fees of 6% of gross revenues.
The Partnership has agreed to reimburse GHG for certain expenses related to
services performed in maintaining the books and administering the affairs of the
Partnership.
GHG and an affiliate, GMS Management Services, Inc. (GMS), formerly Grosvenor
Management Services, Inc., allocate to the Partnership certain marketing,
accounting, and maintenance salaries and certain other expenses directly
related to the operation of the Partnership.
(Continued)
Page 6
<PAGE>
MISSION VALLEY COMFORT SUITES 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 and the six months ended June 30, 1998 and June 30,
1997 are as follows:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
6/30/98 6/30/97 6/30/98 6/30/97
--------- --------- --------- ----------
<S> <C> <C> <C> <C>
Management Fees $36,059 $30,639 $64,342 $59,165
Reimbursement for partnership
administration expenses $ 9,237 $ 9,387 $18,477 $18,774
Salaries and other
allocated expenses $17,118 $19,804 $34,822 $39,758
</TABLE>
In addition, all motel employees are paid by GMS. For the six months ended
June 30, 1998, the Partnership reimbursed GMS $221,046. for the wages of these
employees which includes a one percent processing fee.
At June 30, 1998, $35,983. was due to GHG and GMS relating to reimbursement for
these operating expenses.
5. LONG-TERM DEBT
The Partnership has a note payable which is due in monthly installments of
$2,175, including 8% interest, through April 2013. In March 1997, The
Partnership voluntarily began making monthly payments of $4,350 in order to
retire the note earlier that scheduled and reduce interest expense over the
term of the note. The note is secured by a trust deed on the Partnership's
motel. The balance outstanding was $188,965. as of June 30,1998 and $224,490.
as of June 30, 1997. The fair value of long-term debt approximates its
carrying amount based on borrowing rates currently available to the Partner-
ship for loans with similar terms.
(Continued)
Page 7
<PAGE>
MISSION VALLEY COMFORT SUITES LTD.,
A California Limited Partnership
Notes to Financial Statements (Continued)
LONG TERM DEBT (continued)
Principal payments on this note, based on the required monthly principal and
interest payments of $2,175, are due as follows:
<TABLE>
<CAPTION>
<S> <C>
7/1/98 - 12/31/98 $ 5,583
1999 11,858
2000 12,842
2001 13,908
2002 15,063
Thereafter 129,711
----------
$ 188,965
==========
</TABLE>
Long term debt was paid in full in connection with the sale of the motel on July
2, 1998 (see Note 8).
6. LEASE
The Partnership leases the land underlying its motel under an operating lease
which expires in 2046. Prior to April 1, 1993, rents were subject to annual
increases based on the greater of 2-1/2% or the increase in the Consumer Price
Index. The total minimum rentals over the life of the lease, including the
effects of the 2-1/2% minimum annual increases, were being recognized on
the straight-line basis as required by generally accepted accounting principles.
Effective April 1,1993, the lease was amended to lower the rent payment to
$20,000 per month. Rents are still subject to annual increases based on the
increase in the Consumer Price Index, but the maximum annual increase is 5%
and there is no minimum annual increase. The rent payment was $21,744.
per month as of June 30, 1998 As a result of the amendment to the lease
agreement, a deferred rent liability of $1,594,894, which was incurred prior
to April 1, 1993, is being credited to income on a straight-line basis over
the remaining term of the lease. The Partnership is required to pay
real estate taxes, insurance, and maintenance for the leased land and
improvements thereon.
Future minimum lease payments are due as follows:
<TABLE>
<CAPTION>
<S> <C>
1998 $ 260,928
1999 260,928
2000 260,928
2001 260,928
2002 260,928
Thereafter 11,580,751
-----------------
$12,764,068
=================
</TABLE>
The lease was assumed by the buyer in connection with the sale of the motel on
July 2, 1998 (see Note 8). (Continued)
Page 8
<PAGE>
MISSION VALLEY COMFORT SUITES LTD.,
A California Limited Partnership
Notes to Financial Statements (Continued)
7. ADJUSTMENTS
In the opinion of the general partner, all adjustments (consisting solely of
normal recurring adjustments) necessary for a fair presentation have been made
to the accompanying figures as of and for the six months ended June 30, 1998.
8. SUBSEQUENT EVENT
On July 2, 1998 after obtaining a majority approval of the limited partners
holding a majority of the Partnership's limited partner interests, the motel
was sold for $5,000,000. in cash. The sale resulted in a gain of $2,804,199.
for financial statement purposes. Net cash proceeds from the sale were
$4,647,699. after deducting the payment of the first trust deed on the motel
and closing costs. In July 1998, the Partnership paid a liquidating distri-
bution of $4,446,371.($753.62 per limited partner interest) and an operating
distribution of $115,301. ($17.59 per limited partner interest).
Summarized pro forma balance sheet information (unaudited) for the Partnership
before and after the sale and cash distributions to partners, as if these
transactions had occurred on June 30, 1998, is as follows:
<TABLE>
<CAPTION>
Effects of
Sale
As and Cash Pro
Reported Distributions Forma
--------------- ---------------- -----------
<S> <C> <C> <C>
Cash $ 315,960 $ 86,027 $ 401,987
Other current assets 56,351 (15,895) 40,456
Investment property, net 3,428,071 (3,428,071) -
Franchise fees, net 25,417 (25,417) -
-------------- ---------------- ------------
Total assets $ 3,825,799 $ (3,383,356) $ 442,443
============== ================ ==========
Current liabilities $ 126,618 $ (9,231) $ 117,387
Long-term debt, less current portion 177,570 (177,570) -
Deferred rent liability 1,439,082 (1,439,082) -
Partners' capital 2,082,529 (1,757,473) 325,056
-------------- ----------------- -----------
Total liabilities and
partners' capital $ 3,825,799 $ (3,383,356) $ 442,443
============== ================= ===========
</TABLE>
A final liquidating distribution will be paid after management has determined
that all liabilities and potential claims, including the costs to administer
the affairs of the partnership through the date of final liquidation and dis-
solution, have been paid at which time the Partnership will be dissolved.
(Continued)
Page 9
<PAGE>
MISSION VALLEY COMFORT SUITES LTD.,
A California Limited Partnership
Notes to Financial Statements (Continued)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Financial Condition:
On February 6, 1987, the Partnership commenced its public offering pursuant to
its Prospectus. On March 21, 1988, the Partnership completed the public
offering. The Partnership received $5,117,287 (net of offering costs of
$782,713) from the sale of limited partnership interests. These funds were
available for investment in property, to pay legal fees and other costs related
to the investments, to pay operating expenses, and for working capital. The
majority of the proceeds were used to acquire and construct the property
identified in Item 2 above.
As a result of cost overruns related to the acquisition and construction of the
motel, the Partnership borrowed $200,000 from the party that is the lessor under
its land lease. In 1993, the note was amended to add accrued interest of
$60,000 to the principal balance so that the new balance was $260,000. The note
is payable in monthly installments of $2,175, including interest at 8%, over
a 20-year period. The note is secured by a trust deed on the Partnership's
motel. In March 1997, the Partnership voluntarily began making monthly pay-
ments of $4,350 in order to retire the note earlier than scheduled and reduce
interest expense over the term of the note. The balance outstanding on the
note was $188,965. as of June 30, 1998.
An independent appraisal valued the Partnership's investment property at
$4,000,000 as of July 23, 1997. The carrying amount of investment property on
the Partnership's financial statements was $3,428,071. as of June 30, 1998.
The deferred rent liability represents amounts accrued under the Partnership's
land lease prior to April 1, 1993. Under the original land lease, annual rent
increases were based on the greater of 2-1/2% or the increase in the Consumer
Price Index. The Partnership was required by generally accepted accounting
principles to record rent expense and a deferred rent liability based on
projecting the 2-1/2% minimum annual rent increase over the 60-year term of
the lease. Effective April 1, 1993, the land lease was amended. Under the
amended land lease, annual rent increases are based on the lesser of the
increase in the Consumer Price Index or 5%, and there is no minium annual
increase. Consequently, rent expense is now being recognized based on the
amount due each month rather than on the straight-line basis. In addition,
the deferred rent liability accrued prior to April 1, 1993, is being credited
to income on a straight-line basis over the remaining term of the lease.
Based on an informal survey of a sample of limited partners conducted by the
general partner, now that the partnership is nearing its 10th year, the
majority of the limited partners surveyed wanted the motel to be sold and the
partnership dissolved. Consequently, the hotel brokerage firm of Hotel
Partners International was engaged by the partnership to market the hotel
for sale to qualified buyers at the highest and best selling price. The initial
listing price was $5,000,000. Marketing packages were sent out to hundreds of
potential buyers and the level of interest was high. (Continued)
Page 10
<PAGE>
MISSION VALLEY COMFORT SUITES LTD.,
A California Limited Partnership
Notes to Financial Statements (Continued)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
In June 1998 the Partnership entered into a Hotel Purchase and Sale Agreement
with Piyal, LLC whereby Piyal would purchase the motel from the Partnership for
$5,000,000. (the purchase price). The Purchase Price was payable in cash at
Closing. The Purchase was subjected to a downward adjustment of $3,333. per
day if the limited partners' approval was not received by July 2, 1998. On
July 2, 1998 after receiving a majority approval of the limited partners the
motel was sold to Piyal, LLC (an entity controlled by Tarsadia Hotels) for
$5,000,000. Since the investors promptly returned their votes approving the
sale prior to the deadline, there was no reduction in the selling price. This
selling price exceeded the last appraised value of the motel ($4 million) as
well as the hotel broker's opinion of value ($4.4 to $4.6 million).
The proceeds of sale were used to pay: the loan owed to the ground lessor;
broker's commissions; closing costs; and room taxes for June 1998. The net
proceeds less a reserve of $300,000. were disbursed on 7/24/98 in the amount of
$753.62 per unit, totaling $4,446,371. In addition an operating distribution
of $115,301. was paid.
The partnership will remain in existence through the remainder of the year and
will be required to continue to file quarterly reports with the SEC. Once any
contingent and unexpected claims have been satisfied the partnership can be
dissolved. The general partner hopes to accomplish this dissolution by the
end of March, 1999 when the partnership will be mailing the final K-1's
reporting the sale but there is no guaranty this will occur by this date. At
the time of the dissolution the partnership will pay the second and final
liquidating distribution of any remaining funds held.
Results of Operations:
For the three months ended June 30, 1998, room revenues were $584,191. the
occupancy rate was 79.6% and the average daily rate was $66.09. This compares
to the three months ended June 30, 1997 when room revenues were $492,526., the
occupancy rate was 72.6% and the average daily rate was $61.06.
And for the six months ended June 30, 1998, room revenues were $1,041,586. the
occupancy rate was 71.7% and the average daily rate was $65.81. This compares
to the six months ended June 30, 1997 when room revenues were $950,081., the
occupancy rate was 72.9% and the average daily rate was $59.00.
(Continued)
Page 11
<PAGE>
MISSION VALLEY COMFORT SUITES LTD.,
A California Limited Partnership
Notes to Financial Statements (Continued)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (continued)
The effect of current operations on liquidity was net cash provided by operating
activities of $262,175. for the six months ended June 30, 1998, and $208,600.
for the six months ended June 30, 1997.
Seasonality:
The motel business is seasonal with the third quarter being the strongest due to
the tourist business and the last half of the fourth quarter and the first half
of the first quarter being the weakest. It is not unusual for the motel
operations to have a negative cash flow during this weak period.
Page 12
<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 Valley Comfort Suites Ltd.,
A California Limited Partnership
By: GHG Hospitality, Inc.
Corporate General Partner
By:(SIGNATURE) /s/ Stephen D. Burchett
(NAME AND TITLE) Stephen D. Burchett, Vice President
(DATE) August 12, 1998
By:(SIGNATURE) /s/ Sylvia Mellor Clark
(NAME AND TITLE) Sylvia Mellor Clark, Controller
(DATE) August 12, 1998
Page 12
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<CASH> 196,326
<SECURITIES> 0
<RECEIVABLES> 11,896
<ALLOWANCES> 0
<INVENTORY> 15,352
<CURRENT-ASSETS> 262,017
<PP&E> 5,825,455
<DEPRECIATION> 2,259,819
<TOTAL-ASSETS> 3,855,570
<CURRENT-LIABILITIES> 80,051
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 3,855,570
<SALES> 0
<TOTAL-REVENUES> 986,324
<CGS> 0
<TOTAL-COSTS> 872,344
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 9,599
<INCOME-PRETAX> 104,381
<INCOME-TAX> 0
<INCOME-CONTINUING> 104,381
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 104,381
<EPS-PRIMARY> 15.92
<EPS-DILUTED> 15.92
</TABLE>
