EX-99.(B) 7 file006.txt FINANCIAL STATEMENT SCHEDULES REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS TO THE PARTNERS OF FAIRFIELD INN BY MARRIOTT LIMITED PARTNERSHIP: We have audited in accordance with auditing standards generally accepted in the United States, the financial statements of Fairfield Inn by Marriott Limited Partnership (a Delaware limited partnership) included in this registration statement and have issued our report thereon dated April 5, 2001 (except with respect to the matter discussed in Note 9, as to which the date is September 20, 2001). Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The Schedule III - Real Estate and Accumulated Depreciation is the responsibility of the General Partner's management and is presented for purposes of complying with the Securities and Exchange Commission's rules and is not part of the basic financial statements. This schedule has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, fairly states, in all material respects, the financial data required to be set forth therein in relation to the basic financial statements taken as a whole. ARTHUR ANDERSEN LLP Vienna, Virginia April 5, 2001 SCHEDULE III Fairfield Inn By Marriott Limited Partnership Real Estate and Accumulated Depreciation As of December 31,2000 (in thousands)
Initial Costs ----------------------------------------- Leasehold, Buildings and Subsequent Buildings and Accumulated Description Encumbrances Land Improvements Costs Capitalized Land Improvements Total Depreciation ---------------------------------- ------------------------------------------------------------------------------------------- 50 Fairfield Inns $153,569 $14,873 $159,615 $ 9,839 $ 14,873 $ 169,454 $184,327 $73,375 Date of Completion of Date Depreciable Construction Acquired Life ------------- ------------------------ 50 Fairfield Inns 1987-1990 1989-1990 20-30 years Notes: (a) Reconciliation of Real Estate: 1998 1999 2000 --------- --------- --------- Balance at beginning of year $ 193,920 $ 191,024 $ 188,578 Capital Expenditures 6,601 6,153 3,876 Dispositions/Reclassifications -- (5,756) -- Impairment Loss (9,497) (2,843) (8,127) ---------------------------------------- Balance at end of year $ 191,024 $ 188,578 $ 184,327 ======================================== (b) Reconciliation of Accumulated Depreciation: Balance at beginning of year $ 47,607 $ 56,029 $ 64,740 Depreciation 8,422 8,711 8,635 ---------------------------------------- Balance at end of year $ 56,029 $ 64,740 $ 73,375 ======================================== (c) The aggregate cost of land, buildings and improvements for Federal income tax purposes is approximately $180.7 million at December 31,2000.