SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED JUNE 19, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission File No. 0-15736
COURTYARD BY MARRIOTT LIMITED PARTNERSHIP
(Exact name of registrant as specified in its charter)
Delaware 52-1468081
- ----------------------------- -----------------------------------
(State of Organization) (I.R.S. Employer Identification Number)
10400 Fernwood Road,
Bethesda, MD 20817-1109
- ----------------------------- -------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (301) 380-2070
Securities registered pursuant to Section 12(b) of the Act:
Not Applicable
Securities registered pursuant to Section 12(g) of the Act:
Units of Limited Partnership Interest
(Title of Class)
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 ____ No ____ (Not Applicable). On August 25, 1992, the
Registrant filed an application for relief from the reporting requirements of
the Securities Exchange Act of 1934 pursuant to Section 12(h) thereof. Because
of the pendency of such application, the Registrant was not required to, and did
not make, any filings pursuant to the Securities Exchange Act of 1934 from
October 23, 1989 until the application was voluntarily withdrawn on January 27,
1998.
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<PAGE>
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COURTYARD BY MARRIOTT LIMITED PARTNERSHIP
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TABLE OF CONTENTS
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Statement of Operations
Twelve and Twenty-Four Weeks Ended June 19, 1998 and June 20, 1997...........1
Condensed Balance Sheet
June 19, 1998 and December 31, 1997..........................................2
Condensed Statement of Cash Flows
Twenty-Four Weeks Ended June 19, 1998 and June 20, 1997......................3
Notes to Condensed Financial Statements.......................................4
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.............................6
PART II - OTHER INFORMATION
Item 1. Legal Proceedings..................................................9
Item 6. Exhibits and Reports on Form 8-K..................................10
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
COURTYARD BY MARRIOTT LIMITED PARTNERSHIP
CONDENSED STATEMENT OF OPERATIONS
(Unaudited)
(in thousands except per Unit amounts)
<TABLE>
Twelve Weeks Ended Twenty-Four Weeks Ended
June 19, June 20, June 19, June 20,
1998 1997 1998 1997
------------- ------------ ------------ --------
<S> <C> <C> <C> <C>
REVENUES................................................$ 26,271 $ 24,502 $ 50,048 $ 46,190
------------- ------------ ------------ ------------
OPERATING COSTS AND EXPENSES
Depreciation......................................... 4,119 3,933 8,087 8,040
Base and Courtyard management fees................... 2,965 2,785 5,741 5,392
Incentive management fees............................ 2,565 4,512 4,800 4,512
Ground rent, taxes and other......................... 3,766 2,656 7,630 6,253
------------- ------------ ------------ ------------
Total Operating Costs and Expenses.............. 13,415 13,886 26,258 24,197
------------- ------------ ------------ ------------
OPERATING PROFIT........................................ 12,856 10,616 23,790 21,993
Interest expense..................................... (6,075) (6,113) (12,328) (11,693)
Interest income...................................... 246 276 370 360
------------- ------------ ------------ ------------
NET INCOME BEFORE EXTRAORDINARY ITEMS 7,027 4,779 11,832 10,660
EXTRAORDINARY ITEMS
Gain on forgiveness of deferred fees................. -- -- -- 14,896
Loss on extinguishment of debt....................... -- -- -- (2,423)
------------- ------------ ------------ ------------
-- -- -- 12,473
------------- ------------ ------------ ------------
NET INCOME..............................................$ 7,027 $ 4,779 $ 11,832 $ 23,133
============= ============ ============ ============
ALLOCATION OF NET INCOME
General Partner......................................$ 351 $ 239 $ 591 $ 1,157
Limited Partners..................................... 6,676 4,540 11,241 21,976
------------- ------------ ------------ ------------
$ 7,027 $ 4,779 $ 11,832 $ 23,133
============= ============ ============ ============
NET INCOME BEFORE EXTRAORDINARY ITEMS
PER LIMITED PARTNER UNIT (1,150 Units)...............$ 5,805 $ 3,948 $ 9,774 $ 8,806
============= ============ ============ ============
NET INCOME PER LIMITED PARTNER UNIT
(1,150 Units)........................................$ 5,805 $ 3,948 $ 9,774 $ 19,110
============= ============ ============ ============
See Notes to Condensed Financial Statements.
</TABLE>
<PAGE>
COURTYARD BY MARRIOTT LIMITED PARTNERSHIP
CONDENSED BALANCE SHEET
(in thousands)
<TABLE>
June 19, December 31,
1998 1997
(Unaudited)
<S> <C> <C>
ASSETS
Property and equipment, net............................................................$ 305,451 $ 305,156
Due from Courtyard Management Corporation............................................... 2,659 4,913
Other assets............................................................................ 10,747 7,923
Restricted cash......................................................................... 8,229 7,964
Cash and cash equivalents............................................................... 8,289 5,450
-------------- ---------------
$ 335,375 $ 331,406
============== ===============
LIABILITIES AND PARTNERS' CAPITAL ( DEFICIT)
LIABILITIES
Mortgage debt..........................................................................$ 316,801 $ 320,407
Due to Marriott International, Inc. and affiliates..................................... 19,509 19,616
Due to Host Marriott Corporation....................................................... 13,885 13,594
Incentive management fees due to Courtyard Management Corporation...................... 5,078 6,476
Accounts payable and accrued liabilities............................................... 2,275 2,898
-------------- ---------------
Total Liabilities.................................................................... 357,548 362,991
-------------- ---------------
PARTNERS' CAPITAL (DEFICIT)
General Partner........................................................................ 216 (254)
Limited Partners....................................................................... (22,389) (31,331)
--------------- ---------------
Total Partners' Capital (Deficit).................................................... (22,173) (31,585)
--------------- ---------------
$ 335,375 $ 331,406
============== ===============
See Notes to Condensed Financial Statements.
</TABLE>
<PAGE>
COURTYARD BY MARRIOTT LIMITED PARTNERSHIP
CONDENSED STATEMENT OF CASH FLOWS
(Unaudited)
(in thousands)
<TABLE>
Twenty-Four Weeks Ended
June 19, June 20,
1998 1997
-------------- ---------
<S> <C> <C>
OPERATING ACTIVITIES
Net income.........................................................................$ 11,832 $ 23,133
Extraordinary items................................................................ -- (12,473)
-------------- ---------------
Income before extraordinary items.................................................. 11,832 10,660
Noncash items...................................................................... 8,582 8,789
Changes in operating accounts...................................................... (229) (9,234)
--------------- ---------------
Cash provided by operating activities........................................... 20,185 10,215
-------------- ---------------
INVESTING ACTIVITIES
Additions to property and equipment, net........................................... (8,382) (7,747)
Change in property improvement fund................................................ (3,026) (3,752)
--------------- ---------------
Cash used in investing activities............................................... (11,408) (11,499)
--------------- ---------------
FINANCING ACTIVITIES
Repayments of mortgage debt ....................................................... (3,606) (290,101)
Capital distributions .................................................................. (2,420) (30,384)
Change in restricted cash.......................................................... 90 --
Payment of financing costs......................................................... (2) (5,889)
Proceeds from mortgage debt........................................................ -- 325,000
-------------- ---------------
Cash used in financing activities............................................... (5,938) (1,374)
--------------- ---------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS....................................... 2,839 (2,658)
CASH AND CASH EQUIVALENTS at beginning of period........................................ 5,450 12,709
-------------- ---------------
CASH AND CASH EQUIVALENTS at end of period..............................................$ 8,289 $ 10,051
============== ===============
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for mortgage and other interest..........................................$ 12,681 $ 11,945
============== ===============
See Notes to Condensed Financial Statements.
</TABLE>
<PAGE>
COURTYARD BY MARRIOTT LIMITED PARTNERSHIP
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
1. The accompanying condensed financial statements have been prepared by the
Courtyard By Marriott Limited Partnership (the "Partnership") without
audit. Certain information and footnote disclosures normally included in
financial statements presented in accordance with generally accepted
accounting principles have been condensed or omitted from the accompanying
statements. The Partnership believes the disclosures made are adequate to
make the information presented not misleading. However, the condensed
financial statements should be read in conjunction with the Partnership's
financial statements and notes thereto included in the Partnership's 10-K
for the fiscal year ended December 31, 1997.
In the opinion of the Partnership, the accompanying unaudited condensed
financial statements reflect all adjustments (which include only normal
recurring adjustments) necessary to present fairly the financial position
of the Partnership as of June 19, 1998, the results of operations for the
twelve and twenty-four weeks ended June 19, 1998 and June 20, 1997 and the
cash flows for the twenty-four weeks ended June 19, 1998 and June 20, 1997.
Interim results are not necessarily indicative of fiscal year performance
because of seasonal and short-term variations.
For financial reporting purposes, the net income of the Partnership is
allocated 95% to the Limited Partners and 5% to the General Partner.
Significant differences exist between the net income for financial
reporting purposes and the net income reported for Federal income tax
purposes. These differences are due primarily to the use for income tax
purposes of accelerated depreciation methods, shorter depreciable lives for
the assets, difference in the timing of recognition of certain fees and
straight-line rent adjustments.
2. Certain reclassifications were made to the prior year financial
statements to conform to the 1998 presentation.
3. Revenues represent house profit of the Partnership hotels since the
Partnership has delegated substantially all of the operating decisions
related to the generation of house profit of the hotels to Courtyard by
Marriott Limited Partnership (the "Manager"). House profit reflects the net
revenues flowing to the Partnership as property owner and represents hotel
operating results less property-level expenses, excluding depreciation,
base, Courtyard and incentive management fees, property taxes, equipment
rent and certain other costs, which are disclosed separately in the
accompanying condensed statement of operations.
On November 20, 1997, the Emerging Issues Task Force ("EITF") of the
Financial Accounting Standards Board reached a consensus of EITF 97-2
"Application of FASB Statement No. 94 and APB Opinion No. 16 to Physician
Practice Management Entities and Certain Other Entities with Contractual
Management Arrangements." EITF 97-2 addresses the circumstances in which a
management entity may include the revenues and expenses of a managed entity
in its financial statements.
The Partnership is assessing the impact of EITF 97-2 on its policy of
excluding property-level revenues and operating expenses of the Hotel
from its statements of operations. If the Partnership concludes that
EITF 97-2 should be applied to the Hotels, it would include operating
results of this managed operation in its financial statements.
Application of EITF 97-2 to financial statements as of and for the
twelve and twenty-four weeks ended June 19, 1998, would have increased
both revenues and operating expenses by approximately $23 million and
$46 million, respectively, and would have had no impact on net income.
<PAGE>
Revenues consist of the following hotel operating results for 1998 and 1997
(in thousands):
<TABLE>
Twelve Weeks Ended Twenty-Four Weeks Ended
June 19, June 20, June 19, June 20,
1998 1997 1998 1997
<S> <C> <C> <C> <C>
HOTEL SALES
Rooms............................................$ 44,681 $ 41,793 $ 86,475 $ 80,694
Food and beverage................................ 3,166 3,055 6,153 6,078
Other............................................ 1,562 1,576 3,053 3,100
------------- ------------- ------------- -------------
49,409 46,424 95,681 89,872
------------- ------------- ------------- -------------
HOTEL EXPENSES
Departmental direct costs
Rooms.......................................... 9,220 8,704 18,049 16,958
Food and beverage.............................. 2,569 2,614 5,125 5,114
Other............................................ 11,349 10,604 22,459 21,610
------------- ------------- ------------- -------------
23,138 21,922 45,633 43,682
------------- ------------- ------------- -------------
REVENUES...........................................$ 26,271 $ 24,502 $ 50,048 $ 46,190
</TABLE>
4. As previously reported, Host Marriott Corporation, on behalf of the
General Partner, CBM One Corporation, filed a preliminary
Prospectus/Consent Solicitation Statement with the Securities and
Exchange Commission in December 1997, which proposed the consolidation
(the "Consolidation") of this Partnership and five other limited
partnerships into a publicly traded real estate investment trust
("REIT").
In addition, we reported to you that there are existing REIT's which
are active in the moderate price and extended stay hotel segment that
have expressed an interest in acquiring the hotels owned by the six
limited partnerships. Although the General Partner has had preliminary
discussions with some of these companies, no agreements have yet been
reached. The General Partner has retained Merrill Lynch to advise the
Partnership with respect to the Partnership's strategic alternatives.
The General Partner intends to continue to explore these alternatives
and determine which path to pursue, obviously subject to appropriate
partner approval.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
FORWARD-LOOKING STATEMENTS
Certain matters discussed herein are forward-looking statements and as such may
involve known and unknown risks, uncertainties, and other factors which may
cause the actual results, performance or achievements of the Partnership to be
different from any future results, performance or achievements expressed or
implied by such forward-looking statements. Although the Partnership believes
the expectations reflected in such forward-looking statements are based upon
reasonable assumptions, it can give no assurance that its expectations will be
attained. These risks are detailed from time to time in the Partnership's
filings with the Securities and Exchange Commission. The Partnership undertakes
no obligation to publicly release the result of any revisions to these
forward-looking statements that may be made to reflect any future events or
circumstances.
RESULTS OF OPERATIONS
First Two Quarters of 1998 Compared to the First Two Quarters of 1997
Revenues. Revenues (hotel sales less direct hotel operating costs and expenses)
for the first two quarters of 1998 increased $3.9 million to $50 million, an 8%
increase when compared to the first two quarters of 1997. The Partnership's
revenues and operating profit were impacted by improved lodging results. The
increase was driven primarily by growth in revenue per available room
("REVPAR"). REVPAR is a commonly used indicator of market performance for hotels
which represents the combination of daily room charged and the average daily
occupancy achieved (although it is not a GAAP, or generally accepted accounting
principles, measure of revenue). REVPAR does not include food and beverage or
other ancillary revenues generated by the property. For the first two quarters
of 1998, room sales increased $5.8 million to $86.5 million, a 7% increase
compared to the first two quarters of 1997.
REVPAR increased 6% to $71 for the first two quarters of 1998 when compared to
the first two quarters of 1997, primarily due to the increase in combined
average room rate of $7, or 9%, to $88 offset by a one percentage point decrease
in average occupancy to approximately 81%.
Operating Costs and Expenses. The Partnership's operating costs and expenses
increased $2.1 million, or 9% from $24.2 million for the first two quarters of
1997 to $26.3 million for the first two quarters of 1998 primarily due to an
increase in base, Courtyard and incentive management fees, as well as ground
rent, taxes and other expenses. As a percentage of hotel revenues, hotel
operating costs and expenses remained stable at 52% of revenues for the first
two quarters of 1998 compared to the first two quarters of 1997.
Operating Profit. As a result of changes in revenues and operating costs and
expenses discussed above, operating profit increased $1.8 million, or 8% from
$22 million for the first two quarters of 1997 to $23.8 million, or 48% of
revenues for the first two quarters of 1998.
Interest Expense. Interest expense increased 5% to $12.3 million for
the first two quarters of 1998 due to the refinancing of the mortgage
debt at a higher fixed rate and an increase in the loan balance from
$280.8 million to $325 million.
Income before Extraordinary Items. Income before extraordinary items increased
by $1.1 million, or 11% to $11.8 million for the first two quarters of 1998 when
compared to the first two quarters of 1997, primarily due to the $1.8 million
increase in operating profit offset by the increase in interest expense
discussed above.
Extraordinary Items. The Partnership recognized a net
extraordinary gain in the first two quarters of 1997 of $12.5 million
representing the forgiveness of deferred management fees by Courtyard Management
Corporation partially offset by an extraordinary loss on the early
extinguishment of debt.
Net Income. Net income for the first two quarters of 1998 decreased $11.3
million to $11.8 million, or 24% of revenues when compared to net income of
$23.1 million, for the first two quarters of 1997 as a result of the items
discussed above.
Second Quarter 1998 Compared to Second Quarter 1997
Revenues. Revenues increased $1.8 million to $26.3 million for second quarter
1998, a 7% increase when compared to second quarter 1997, due to the increase in
REVPAR as described below.
REVPAR for second quarter 1998 increased 5% to $74 when compared to second
quarter 1997 primarily due to the increase in combined average room rate of $7
to $89 for second quarter 1998, offset by a one percentage point decrease in the
combined average occupancy to approximately 83% over the same period in 1997.
Operating Costs and Expenses. The Partnership's operating costs and expenses
decreased 3% to $13.4 million for second quarter 1998 when compared to the same
period in 1997 primarily due to a decrease in incentive management fee expense
offset by an increase in ground rent, taxes and other costs and expenses.
Incentive management fee expense for second quarter 1998 was higher as it
included an adjustment for first quarter 1998 incentive management fees.
Operating Profit. As a result of changes in revenues and operating costs and
expenses discussed above, operating profit increased for second quarter 1998 by
$2.3 million, or 21%, to $12.9 million, when compared to the same period in
1997.
CAPITAL RESOURCES AND LIQUIDITY
The Partnership's financing needs have historically been funded through loan
agreements with various lenders and Host Marriott Corporation ("Host Marriott").
The General Partner believes that the Partnership will have sufficient capital
resources and liquidity to continue to conduct its business in the ordinary
course.
Principal Sources and Uses of Cash
Cash provided by operating activities was $20.2 million and $10.2 million for
the first two quarters 1998 and the first two quarters 1997, respectively. Cash
provided by operations was higher in second quarter 1998 primarily due to the
payment of $4.2 million of deferred management fees in connection with the
refinancing in 1997 as well as a decrease in the rent receivable due from the
Manager.
Cash used in investing activities was $11.4 million and $11.5 million for the
first two quarters 1998 and the first two quarters 1997, respectively. The
Partnership's investing activities consist primarily of contributions to the
property improvement fund and capital expenditures for improvements to hotels.
As part of the debt refinancing, contributions to the property improvement fund
will remain at 5% of gross hotel sales through 1998 and may be increased by
Courtyard Management Corporation to 6% in 1999 and 2000 and 7% thereafter if the
current contribution of 5% of gross hotel sales is insufficient to make the
replacements, renewals and repairs to maintain the hotels in accordance with the
Manager's standards for Courtyard by Marriott hotels.
<PAGE>
Cash used in financing activities was $5.9 million and $1.4 million for the
first two quarters 1998 and the first two quarters 1997, respectively. The
Partnership's financing activities consist primarily of capital distributions to
its partners and repayment of debt. During the first two quarters of 1998, the
Partnership distributed $2.4 million to the partners. This distribution
represented the final distribution from 1997 operations, bringing the total
distribution from 1997 operations to $10,000 per limited partner unit. In the
first quarter 1997, the Partnership received refinancing proceeds in excess of
repayments of the mortgage debt. This provided cash to the Partnership which was
used to pay refinancing costs and provided funds for a partial return of capital
distribution to the partners. This distribution was paid in second quarter 1997.
On July 27, 1998, the Partnership distributed $6.9 million, or $6,000 per
limited partner unit, from first and second quarter 1998 operating results. We
anticipate total cash distributions for 1998 of approximately $10,000 per
limited partner unit. However, actual distributions may be higher or lower
depending on actual Hotel operating results for the remainder of the year. We
expect to make a distribution from 1998 third quarter operating cash flow in
November 1998 and a final distribution for 1998 operations in April 1999.
<PAGE>
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Marvin Schick and Jack Hirsch, the plaintiffs in a class action lawsuit
styled Marvin Schick, et al. v. Host Marriott Corporation, et al., Civil Action
No. 15991, filed their complaint on October 16, 1997 in Delaware Chancery Court
against the General Partner, the Manager and certain of their respective
affiliates, officers and directors. The plaintiff's claim that General Partner
agreed to decrease the owner's priority under the terms of the Management
Agreement for the benefit of the Manager without obtaining the consent of the
limited partners. The lawsuit includes claims against Host Marriott and the
General Partner for breach of contract and breach of fiduciary duty, and against
Marriott International, Inc. and the Manager for interference with contract and
aiding and abetting in the breach of fiduciary duties. The General Partner
believes that the change in the Management Agreement did not require limited
partner approval, because, among other things, it did not result in an increase
in compensation to the Manager. The defendants filed an answer to the
plaintiffs' complaint and asserted a number of defenses. The General Partner
intends to vigorously defend this lawsuit and expects to prevail on the merits.
On February 11, 1998, four individual limited partners in partnerships
sponsored by Host Marriott, filed a class action lawsuit, styled Ruben, et al.
v. Host Marriott Corporation, et al., Civil Action No. 16186, in Delaware State
Chancery Court against Host Marriott and the general partners of Courtyard by
Marriott Limited Partnership, Courtyard by Marriott II Limited Partnership,
Marriott Residence Inn Limited Partnership, Marriott Residence Inn II Limited
Partnership, and Fairfield Inn by Marriott Limited Partnership (collectively,
the "Five Partnerships"). The plaintiffs allege that the merger of the Five
Partnerships (the "Merger") into an umbrella partnership real estate investment
trust proposed by CRF Lodging Company, L.P. in a preliminary registration
statement filed with the Securities and Exchange Commission, dated December 22,
1997, constitutes a breach of the fiduciary duties owed to the limited partners
of the Five Partnerships by Host Marriott and the general partners of the Five
Partnerships. In addition, the plaintiffs allege that the Merger breaches
various agreements relating to the Five Partnerships. The plaintiffs are
seeking, among other things, the following: certification of a class; injunctive
relief to block consummation of the Merger or, in the alternative, rescission of
the Merger; and damages. Host Marriott and the general partners of the
Partnership believe that these allegations are totally devoid of merit and they
intend to vigorously defend against them. The defendants also maintain that this
lawsuit is premature because the Merger has not been, and may not be,
consummated as proposed in the SEC filings. Accordingly, they have filed a
motion to dismiss the lawsuit.
On March 16, 1998, limited partners in several partnerships sponsored by
Host Marriott filed a lawsuit, styled Robert M. Haas, Sr. and Irwin Randolph
Joint Tenants, et al. v. Marriott International, Inc., et al., Case No.
98-CI-04092, in the 57th Judicial District Court of Bexar County, Texas against
Marriott International, Inc. ("Marriott International"), Host Marriott, various
of their subsidiaries, J.W. Marriott, Jr., Stephen Rushmore, and Hospitality
Valuation Services, Inc. (collectively, the "Defendants"). The lawsuit relates
to the following limited partnerships: Courtyard by Marriott Limited
Partnership, Courtyard by Marriott II Limited Partnership, Marriott Residence
Inn Limited Partnership, Marriott Residence Inn II Limited Partnership,
Fairfield Inn by Marriott Limited Partnership, Desert Springs Marriott Limited
Partnership, and Atlanta Marriott Marquis Limited Partnership (collectively, the
"Seven Partnerships"). The plaintiffs allege, amoung other things, that the
Defendants conspired to sell hotels to the Seven Partnerships for inflated
prices and that they charged the Seven Partnerships excessive management fees to
operate the Seven Partnerships' hotels. The plaintiffs further allege that the
Defendants committed fraud, breached fiduciary duties, and violated the
provisions of various contracts. The plaintiffs are seeking unspecified damages.
The Defendants, which do not include the Seven Partnerships, believe that there
is no truth to the plaintiffs' allegations and that the lawsuit is totally
devoid of merit. The Defendants intend to vigorously defend against the claims
asserted in the lawsuit. They have filed an answer to the plaintiffs' petition
and asserted a number of defenses. Although the Seven Partnerships have not been
named as Defendants in the lawsuit, the partnership agreements relating to the
Seven Partnerships include an indemnity provision which requires the Seven
Partnerships, under certain circumstances, to indemnify the general partners
against losses, judgments, expenses and fees.
The Partnership and the Hotels are involved in routine litigation and
administrative proceedings arising in the ordinary course of business, some of
which are expected to be covered by liability insurance and which collectively
are not expected to have a material adverse effect on the business, financial
condition or results of operations of the Partnership.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a. Exhibits:
None.
b. Reports on Form 8-K:
May 6, 1998 -- Letter from the general partner to the limited partners
regarding status of proposed consolidation.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this Form 10-Q to be signed on its behalf by the
undersigned, thereunto duly authorized.
COURTYARD BY MARRIOTT
LIMITED PARTNERSHIP
By: CBM ONE CORPORATION
General Partner
July 31, 1998 By: Earla L. Stowe
Vice President and Chief Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
QUARTERLY REPORT 10-Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000813807
<NAME> COURTYARD BY MARRIOTT LIMITED PARTNERSHIP
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLAR
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-19-1998
<EXCHANGE-RATE> 1.00
<CASH> 8,289
<SECURITIES> 0
<RECEIVABLES> 2,659
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 18,976
<PP&E> 540,975
<DEPRECIATION> (235,524)
<TOTAL-ASSETS> 335,375
<CURRENT-LIABILITIES> 40,747
<BONDS> 316,801
0
0
<COMMON> 0
<OTHER-SE> (22,173)
<TOTAL-LIABILITY-AND-EQUITY> 335,375
<SALES> 0
<TOTAL-REVENUES> 50,048
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 25,888
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 12,328
<INCOME-PRETAX> 11,832
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 11,832
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
