FORMTable 10-Q of Contents

~~SECURITIES~~FORM ~~AND EXCHANGE COMMISSION~~10-Q

~~Washington,~~SECURITIES ~~D.C.~~AND ~~20549~~EXCHANGE COMMISSION

~~For Quarter Ended September 30~~Washington, ~~2001~~D.C. 20549

~~Commission~~For ~~File~~Quarter ~~no.~~Ended ~~2-64309~~June 30, 2003

~~GOLF~~Commission ~~HOST~~File ~~RESORTS, INC~~no. 2-64309

~~(Exact~~GOLF ~~name~~HOST ofRESORTS, ~~registrant as specified in its charter)~~INC.

Colorado		84-0631130
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

(Exact name of registrant as specified in its charter)

36750 US 19 N., Palm Harbor, Florida		34684
Colorado		84-0631130
(Address of principal executive offices)		(Zip Code)
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

36750 US 19 N., Palm Harbor, Florida 34684 (~~727~~Address of principal executive offices) ~~942-2000~~ (Zip Code)

(727) 942-2000 (Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports ~~required~~ required to Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding twelve months, and (2) has been subject to the filing requirements for the past 90 days. Yes [X] No [ ]

Issuer has no common stock subject to this report.

Page 1 of 2119

~~GOLF~~TABLE ~~HOST~~OF ~~RESORTS, INC. AND SUBSIDIARY (a wholly owned subsidiary of Golf Hosts, Inc.)~~ CONTENTS

CONSOLIDATED BALANCE SHEETS


PART I - FINANCIAL INFORMATION
	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
	Item 3. Quantitative and Qualitative Disclosures About Market Risk
	Item 4. Controls and Procedures
PART II — OTHER INFORMATION
	Item 1. Legal Proceedings
	Item 2. Changes in Securities and Use of Proceeds
	Item 3. Defaults Upon Senior Securities
	Item 4. Submission of Matters to a Vote of Security Holders
	Item 5. Other Information
	Item 6. Exhibits and Reports on Form 8-K
SIGNATURES
302 CEO Certification
Ex-31.2 302 CFO Certification
Ex-32.1 906 CEO Certification
Ex-32.2 906 CFO Certification

ASSETS (SubstantiallyTable allof pledged) Contents

			September 30,		December 31,
			2001		2000
			(unaudited)
CURRENT ASSETS:
	Cash		$	152,065	$	565,400
	Restricted cash			1,652,860		1,219,289
	Accounts receivable, net			2,234,894		4,865,607
	Other receivables			261,863		543,651
	Inventories and supplies			1,302,049		1,606,935
	Prepaid expenses and other assets			275,998		197,399
				5,879,729		8,998,281
	Assets held for sale			—		2,435,000
		Total current assets		5,879,729		11,433,281
INTANGIBLES, net				13,586,856		17,376,706
PROPERTY AND EQUIPMENT, net				40,099,298		41,768,369
OTHER ASSETS				509,042		483,788
			$	60,074,925	$	71,062,144

TABLE OF CONTENTS

The accompanying notes are an integral part of these consolidated financial statements.


PART I - FINANCIAL INFORMATION		2
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	17
Item 4.	Controls and Procedures	17
PART II - OTHER INFORMATION		18
Item 1.	Legal Proceedings	18
Item 2.	Changes in Securities and Use of Proceeds	18
Item 3.	Defaults Upon Senior Securities	18
Item 4.	Submission of Matters to a Vote of Security Holders	18
Item 5.	Other Information	18
Item 6.	Exhibits and Reports on Form 8-K	18
31.1	Section 302 CEO Certification
31.2	Section 302 Principal Financial Officer Certification
32.1	Section 906 CEO Certification
32.2	Section 906 Principal Financial Officer Certification
SIGNATURES		19

PageTable 2 of Contents

~~GOLF~~PART ~~HOST~~I ~~RESORTS,~~- ~~INC.~~FINANCIAL ~~AND SUBSIDIARY~~INFORMATION ~~(a wholly owned subsidiary of Golf Hosts, Inc.)~~

GOLF HOST RESORTS, INC. AND SUBSIDIARY (a wholly owned subsidiary of Golf Hosts, Inc.) CONSOLIDATED BALANCE SHEETS

~~LIABILITIES~~ASSETS (Substantially ~~AND~~all ~~SHAREHOLDER’S DEFICIT~~pledged)

			September 30,			December 31,
			June 30,			December 31,
			2001			2000
			2003			2002
			(unaudited)
CURRENT LIABILITIES:
CURRENT ASSETS:
	Accounts payable		$	8,791,478		$	8,614,179
	Cash		$	259,892		$	—
	Line of credit			—			667,141
	Restricted cash			2,740,377			2,520,849
	Accrued payroll costs			1,112,158			830,072
	Accounts receivable, net			1,635,328			2,069,962
	Accrued interest			866,197			817,047
	Other receivables			64,337			61,554
	Other payables and accrued expenses			2,758,159			3,076,854
	Inventories and supplies			1,144,731			1,157,792
	Deposits and prepaid fees			2,047,666			3,461,783
	Prepaid expenses and other assets			560,240			514,493
	Current notes payable			3,039,210			862,058
		Total current assets		6,404,905			6,324,650
	Due to related parties			4,867,519			3,572,690
INTANGIBLES, net				12,033,091			12,463,987
		Total current liabilities		23,482,387			21,901,824
PROPERTY AND EQUIPMENT, net				37,638,597			38,025,063
NOTES PAYABLE				79,318,481			82,239,239
OTHER ASSETS				5,382,243			5,701,950
OTHER LONG-TERM LIABILITIES				9,440,914			7,869,858
			$	61,458,836		$	62,515,650
DEFERRED INCOME TAXES				1,770,467			1,770,467
		Total liabilities		114,012,249			113,781,388
SHAREHOLDER’S DEFICIT
	Common stock, $1 par, 5,000 shares authorized, issued, and outstanding			5,000			5,000
	5.6% cumulative preferred stock, $1 par, 4,577,000 shares authorized, issued, and outstanding			4,577,000			4,577,000
	Paid-in capital			(13,557,000	)		(13,557,000	)
	Accumulated deficit			(44,962,324	)		(33,744,244	)
	Total shareholder’s deficit			(53,937,324	)		(42,719,244	)
	Total liabilities and shareholder’s deficit		$	60,074,925		$	71,062,144

The accompanying notes are an integral part of these consolidated financial statements.

Page 32

GOLFTable HOST RESORTS, INC. AND SUBSIDIARY (a wholly owned subsidiary of Golf Hosts, Inc.) Contents

~~CONSOLIDATED~~GOLF ~~STATEMENTS~~HOST OFRESORTS, ~~INCOME~~INC. AND SUBSIDIARY (a wholly owned subsidiary of Golf Hosts, Inc.) CONSOLIDATED BALANCE SHEETS

~~(unaudited)~~LIABILITIES AND SHAREHOLDER’S DEFICIT

			Quarters ended September 30,								Nine months ended September 30,
				June 30,				December 31,
			2001				2000				2001			2000
				2003				2002
REVENUES:
				(unaudited)
	Resort facilities		$	1,835,812			$	2,266,074			$	13,960,991		$	14,866,135
CURRENT LIABILITIES:
	Food and beverage			1,480,863				2,338,827				10,544,809			13,450,230
	Cash overdrafts			$	—			$	69,846
	Golf			1,754,794				1,992,873				10,794,265			11,365,151
	Debt due within one year				79,000,592				79,003,552
	Other			966,787				876,949				4,282,329			4,178,953
	Accounts payable				3,278,629				4,973,036
				6,038,256				7,474,723				39,582,394			43,860,469
	Accrued payroll costs				975,509				893,224
COST AND OPERATION EXPENSES:
	Accrued interest				19,130,230				14,538,319
	Resort facilities			1,932,180				2,017,739				9,879,706			10,547,843
	Other payables and accrued expenses				2,852,623				2,721,823
	Food and beverage			1,587,577				1,785,619				7,285,816			7,491,423
	Deposits and deferred revenues				1,549,147				2,003,938
	Golf			1,463,194				1,505,047				5,121,083			5,545,616
	Due to related parties				513,009				198,802
	Other			5,096,125				2,603,317				10,319,031			8,429,391
		Total current liabilities			107,299,739				104,402,540
	General and administrative			880,923				1,066,966				3,795,585			4,489,754
DEBT DUE AFTER ONE YEAR					95,115				—
	Depreciation and amortization			968,284				1,075,772				2,904,851			3,027,315
OTHER LONG-TERM LIABILITIES					10,265,009				10,265,009
				11,928,283				10,054,460				39,306,072			39,531,342
LONG TERM REFURBISHMENT					5,623,095				5,548,514
INCOME/(LOSS) BEFORE INCOME/(LOSS) ON ASSET HELD FOR SALE AND LEASED ASSET				(5,890,027	)			(2,579,737	)			276,322			4,329,127
DEFERRED INCOME TAXES					1,255,000				1,255,000
INCOME/(LOSS) ON ASSET HELD FOR SALE AND LEASED ASSET				162,371				253,432				(108,540	)		(1,004,020	)
		Total liabilities			124,537,958				121,471,063
OPERATING (LOSS)/INCOME				(5,727,656	)			(2,326,305	)			167,782			3,325,107
SHAREHOLDER’S DEFICIT
INTEREST, NET				2,353,139				2,476,561				7,265,296			7,335,918
	Common stock, $1 par, 5,000 shares authorized, issued, and outstanding				5,000				5,000
LOSS BEFORE DIVIDEND REQUIREMENTS ON PREFERRED STOCK				(8,080,795	)			(4,802,866	)			(7,097,514	)		(4,010,811	)
	5.6% cumulative preferred stock, $1 par, 4,577,000 shares authorized, issued, and outstanding				4,577,000				4,577,000
DIVIDEND REQUIREMENTS ON PREFERRED STOCK				64,077				64,077				192,231			192,231
	Paid-in capital				(8,487,323	)			(8,487,323	)
NET LOSS AVAILABLE TO COMMON SHAREHOLDER			$	(8,144,872	)		$	(4,866,943	)		$	(7,289,745	)	$	(4,203,042	)
	Shareholder receivable				(219,784	)			—
	Accumulated deficit				(58,954,015	)			(55,050,090	)
	Total shareholder’s deficit				(63,079,122	)			(58,955,413	)
	Total liabilities and shareholder’s deficit			$	61,458,836			$	62,515,650

The accompanying notes are an integral part of these consolidated financial statements.

Page 43

GOLFTable HOSTof RESORTS, INC AND SUBSIDIARY Contents

GOLF HOST RESORTS, INC. AND SUBSIDIARY (a wholly owned subsidiary of Golf Hosts, Inc.) CONSOLIDATED STATEMENTS OF ~~SHAREHOLDER’S DEFICIT~~OPERATIONS (unaudited)

		$1 Par Value								5.6% Cumulative
			Quarters Ended June 30,								Six months ended June 30,
		Common Stock								Preferred Stock														Total
			2003				2002				2003				2002
																		Paid-In			Accumulated			Shareholder's
REVENUES:
		Shares				Amount				Shares				Amount				Capital			Deficit			Deficit
	Resort facilities		$	2,537,629			$	3,378,897			$	6,613,206			$	8,397,062
Balance, December 31, 1999			5,000			$	5,000				4,577,000			$	4,577,000			$	(13,557,000	)	$	(12,481,706	)	$	(21,456,706	)
	Food and beverage			2,871,574				3,806,922				6,297,775				7,400,352
Net loss available to common shareholder			—				—				—				—				—			(15,062,942	)		(15,062,942	)
	Golf			2,869,517				2,915,347				6,630,710				7,472,088
Distribution to shareholder			—				—				—				—				—			(6,199,596	)		(6,199,596	)
	Other			1,094,184				1,635,313				2,393,916				2,937,805
Balance, December 31, 2000			5,000				5,000				4,577,000				4,577,000				(13,557,000	)		(33,744,244	)		(42,719,244	)
				9,372,904				11,736,479				21,935,607				26,207,307
Net loss available to common shareholder			—				—				—				—				—			(7,289,745	)		(7,289,745	)
COST AND OPERATION EXPENSES:
Distribution to shareholder			—				—				—				—				—			(3,928,335	)		(3,928,335	)
	Resort facilities			2,146,932				2,785,709				5,243,711				6,126,672
Balance, September 30, 2001 (unaudited)			5,000			$	5,000				4,577,000			$	4,577,000			$	(13,557,000	)	$	(44,962,324	)	$	(53,937,324	)
	Food and beverage			2,041,635				2,374,933				4,301,900				4,767,309
	Golf			1,747,929				1,673,007				3,453,462				3,258,607
	Other			2,238,575				2,277,235				4,579,995				4,701,374
	General and administrative			970,086				1,108,359				2,069,621				2,325,537
	Depreciation and amortization			747,198				860,448				1,494,396				1,733,277
				9,892,355				11,079,691				21,143,085				22,912,776
OPERATING (LOSS)/INCOME				(519,451	)			656,788				792,522				3,294,531
INTEREST, NET				2,338,834				2,236,275				4,568,293				4,606,710
LOSS BEFORE PREFERRED STOCK DIVIDEND				(2,858,285	)			(1,579,487	)			(3,775,771	)			(1,312,179	)
DIVIDEND REQUIREMENTS ON PREFERRED STOCK				64,077				64,077				128,154				128,154
LOSS AVAILABLE TO COMMON SHAREHOLDER			$	(2,922,362	)		$	(1,643,564	)		$	(3,903,925	)		$	(1,440,333	)

The accompanying notes are an integral part of these consolidated financial statements.

Page 54

GOLFTable HOST RESORTS, INC. AND SUBSIDIARY (a wholly owned subsidiary of Golf Hosts, Inc.) Contents

~~STATEMENTS~~GOLF OFHOST ~~CASH~~RESORTS, ~~FLOWS FOR~~INC ~~THE~~AND ~~NINE~~SUBSIDIARY CONSOLIDATED ~~MONTHS~~STATEMENTS ~~ENDED~~OF ~~SEPTEMBER~~SHAREHOLDER’S ~~30,~~DEFICIT ~~(unaudited)~~

				2001				2000
		$1 Par Value								5.6% Cumulative										Total
CASH FLOWS FROM OPERATING ACTIVITIES:
		Common Stock								Preferred Stock				Paid-In			Retained			Shareholder’s
	Net loss before dividend requirements on preferred stock			$	(7,097,514	)		$	(4,010,811	)
		Shares				Amount				Shares		Amount		Capital			Deficit			Deficit
	Adjustments to reconcile net loss to net cash provided by operations:
Balance, December 31, 2002			5,000			$	5,000				4,577,000	$	4,577,000	$	(8,487,323	)	$	(55,050,090	)	$	(58,955,413	)
		Provision for bad debt			166,662				62,121
Shareholder receivable			—				—				—		—		—			(219,784	)		(219,784	)
		Depreciation and amortization			2,904,851				3,027,315
Loss available to common shareholder			—				—				—		—		—			(3,903,925	)		(3,903,925	)
		Provision for intangible impairment			3,000,000				—
Balance, June 30, 2003 (unaudited)			5,000			$	5,000				4,577,000	$	4,577,000	$	(8,487,323	)	$	(59,173,799	)	$	(63,079,122	)
		Gain on sale of asset held for sale			(1,164,911	)			—
		Changes in operating working capital			2,416,968				3,806,725
		Cash provided by operating activities			226,056				2,885,350
CASH FLOWS FROM INVESTING ACTIVITIES:
	Increase in other assets				(25,254	)			(191,385	)
	Purchases of property and equipment				(727,032	)			(504,166	)
	Proceeds from sale of assets held for sale				3,928,635				—
	Increase in assets held for sale				(47,624	)			—
		Cash provided by (used in) investing activities			3,128,725				(695,551	)
CASH FLOWS FROM FINANCING ACTIVITIES:
	Distribution to shareholder				(3,928,335	)			—
	Repayment of debt				(743,606	)			(1,464,238	)
	Repayment of line of credit				(667,141	)			(1,098,540	)
	Increases in other long-term liabilities				1,571,056				478,178
		Cash used in financing activities			(3,768,026	)			(2,084,600	)
NET (DECREASE) INCREASE IN CASH					(413,245	)			105,199
CASH, BEGINNING OF PERIOD					565,400				131,440
CASH, END OF PERIOD				$	152,155			$	236,639
NONCASH FINANCING AND INVESTING ACTIVITIES:
The Company satisfied its preferred stock dividend liability to GHI through the intercompany account				$	192,231			$	192,231
Transfer from fixed assets to assets held for sale				$	281,100			$	—
Settlement with previous owners				$	—			$	1,249,843
Dividend of Tamarron to Golf Hosts II, Inc.				$	—			$	6,199,596

The accompanying notes are an integral part of these consolidated financial statements.

Page 65

GOLFTable HOST RESORTS, INC. AND SUBSIDIARY (a wholly owned subsidiary of Golf Hosts, Inc.) Contents

~~NOTES~~GOLF TOHOST ~~CONSOLIDATED~~RESORTS, ~~FINANCIAL~~INC. AND SUBSIDIARY (a wholly owned subsidiary of Golf Hosts, Inc.) CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, (unaudited)

(1) Basis of preparation


			2003			2002

CASH FLOWS FROM OPERATING ACTIVITIES:
	(Loss)/income before dividend requirements on preferred stock		$	(3,775,771	)	$	(1,312,179	)
	Adjustments to reconcile net income to net cash provided by operations:
		Depreciation and amortization		1,494,396			1,733,277
		Provision for bad debts		(75,520	)		181,869
		Gain on disposal of capital lease		(27,739	)		(294,822	)
		Rental pool expense		390,919			203,508
		Changes in operating working capital		2,807,375			4,118,337

		Cash provided by operations		813,660			4,629,990

CASH FLOWS FROM INVESTING ACTIVITIES:
	Increase in other assets			3,369			(21,794	)
	Purchases of property and equipment			(627,492	)		(200,904	)

		Cash used in investing activities		(624,123	)		(222,698	)

CASH FLOWS FROM FINANCING ACTIVITIES:
	Contribution from owners			—			21,239
	Repayment of existing debt			(62,245	)		(91,970	)
	Additional borrowings on existing debt			132,600			—
	Decreases in other long-term liabilities			—			(3,190,194	)

		Cash used in financing activities		70,355			(3,260,925	)

NET INCREASE IN CASH				259,892			1,146,367
CASH, BEGINNING OF PERIOD				—			665,402

CASH, END OF PERIOD			$	259,892		$	1,811,769

NONCASH FINANCING AND INVESTING ACTIVITIES:
The Company satisfied its preferred stock dividend liability to GHI through the intercompany account			$	128,154		$	128,154

Master lease agreement refurbishment program			$	5,877,702		$	3,256,120

The ~~financial~~accompanying ~~statements for December 31, 2000 were prepared assuming the Company will continue as a going concern. As discussed in the~~ notes to consolidated financial statements on Form 10-K dated December 31, 2000, the Company has suffered recurring losses from operations, has negative working capital and has a shareholder’s deficit that raise substantial doubt about its ability to continue as a going concern. Management’s plans in regard to these matters are ~~also~~an ~~discussed~~integral inpart ~~the footnotes. Additionally, as described in Note 12~~ of ~~the~~these ~~notes to~~ consolidated financial statements ~~on Form 10-K, subsequent to December 31, 2000 the Company has defaulted under the terms of its debt agreement and is a defendant to a class action lawsuit~~. ~~These financial~~ ~~statements do not include any adjustments that might result from the outcome of~~ ~~the uncertainties.~~

~~These~~Page ~~financial statements and related notes are presented for interim periods~~6 ~~on a going concern basis in accordance with the requirements of Form 10-Q and,~~ ~~consequently, do not include all disclosures normally provided in the Company’s~~ Annual Report on Form 10-K. Accordingly, these financial statements and related notes should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2000.

TheTable accompanying balance sheet for September 30, 2001, and statements of operations and cash flows for the periods ended September 30, 2001 and 2000, are unaudited but reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented on a going concern basis. All such adjustments are of a normal recurring nature. Contents

~~The~~GOLF ~~Company’s~~HOST ~~business~~RESORTS, ~~is seasonal~~INC. ~~Therefore,~~AND ~~the results of operations for the~~SUBSIDIARY ~~interim~~(a ~~periods~~wholly ~~shown~~owned insubsidiary ~~this~~of ~~report~~Golf ~~are~~Hosts, ~~not necessarily indicative of results~~Inc.) toNOTES beTO ~~expected~~CONSOLIDATED ~~for~~FINANCIAL ~~the fiscal years.~~STATEMENTS

Certain prior year balances have been reclassified to conform with the current year presentation.

(1)		BASIS OF PRESENTATION

		The financial statements for December 31, 2002 were prepared assuming the Company will continue as a going concern. As discussed in the notes to consolidated financial statements on Form 10-K dated December 31, 2002, the Company has suffered recurring losses from operations, has negative working capital and has a shareholder’s deficit. These issues raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans in regard to these matters are also discussed in the footnotes. Additionally, as described in Note 6 of the notes to consolidated financial statements on Form 10-K, the Company has defaulted under the terms of its debt agreement and Golf Host, Inc. (the Company’s parent company) is a defendant to a class action lawsuit. These financial statements do not include any adjustments that might result from the outcome of the uncertainties.

		These financial statements and related notes are presented for interim periods in accordance with the requirements of Form 10-Q and, consequently, do not include all disclosures normally provided in the Company’s Annual Report on Form 10-K. Accordingly, these financial statements and related notes should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2002.

		The accompanying consolidated balance sheet for June 30, 2003, and consolidated statements of operations and cash flows for the periods ended June 30, 2003 and 2002, are unaudited but reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. All such adjustments are of a normal recurring nature.

		The Company’s business is seasonal. Therefore, the results of operations for the interim periods shown in this report are not necessarily indicative of results to be expected for the fiscal years.

2)		INTANGIBLE ASSETS

		The Company recorded at closing in 1997, a resort intangible asset of approximately $30,400,000. This intangible related to the purchase of the Innisbrook Resort, which contained an existing rental pool agreement and a recently executed management agreement with Westin Hotels. The intangible is being amortized over twenty years on a straight-line basis. Amortization expense for all intangible assets was approximately $431,000 and $383,000 for the six months ended June 30, 2003 and June 30, 2002, respectively.

~~(2) Asset~~Page ~~held for sale~~7

OnTable May 4, 2001, the Company sold the remaining land parcel at Innisbrook included in asset held for sale as of December 31, 2000 for $4,578,000. Net proceeds of $3,929,000 were distributed by the Company to its shareholder. Contents

GOLF HOST RESORTS, INC. AND SUBSIDIARY (3a wholly owned subsidiary of Golf Hosts, Inc.) ~~Intangible~~ NOTES ~~Assets~~TO CONSOLIDATED FINANCIAL STATEMENTS

The Company recorded at closing in 1997, a resort intangible of approximately $30,400,000. This intangible related to the purchase of the Innisbrook Resort, which contained an existing rental pool agreement and a recently executed management agreement with Westin Hotels. The intangible is being amortized over twenty years on as straight-line basis. Amortization expense for all intangible assets was approximately $1,157,000 and $1,158,000 for the nine months ended September 30, 2001 and September 30, 2000, respectively.

2)		INTANGIBLE ASSETS

		During 2002 and as of June 30, 2003, the Company reviewed the carrying value of the intangible asset and determined that further impairment had not occurred. Advance booking and rental pool participation have stabilized from a historical perspective, and pro-forma cash flows, based upon advance bookings indicate that no further deterioration in the carrying value needs to be recognized.

(3)		DEBT

		Debt consists of the following:

As noted in the Company’s 10-K for December 31, 2000, management had determined that due to declining demand in the resort business and reduced rental pool participation which led to declines in operating results, impairment had occurred. At December 31, 2000, an impairment charge of $7,441,000 was recorded.


	June 30,			December 31,
	2003			2002

Participating mortgage note at varying pay rates maturing in 2027 (in default)	$	69,975,000		$	69,975,000
$9,000,000 participating mortgage note credit facility maturing in 2007 (in default)		9,000,000			9,000,000
Capital leases ranging from 1.89% to 17.37%		120,707			28,552

		79,095,707			79,003,552
Less current maturities		(79,000,592	)		(79,003,552	)

	$	95,115		$	—

As(4) CONTINGENCIES Golf Hosts, Inc., the Company’s parent, was named as a ~~result~~defendant in a consolidated class action lawsuit whereby the plaintiffs allege breaches of contract, including breaches in connection with the ~~continuing~~Rental ~~decline~~Pool Master Lease Agreement. By order dated April 3, 2003, the Company was substituted in ~~destination~~ ~~golf~~place ~~resort~~of ~~business~~Golf ~~during~~Hosts, ~~2001~~Inc. as the defendant in the lawsuit. The plaintiffs are seeking unspecified damages and declaratory judgment stating that the ~~events~~plaintiffs are entitled to participate in the rental pool if one exists, a restriction of ~~September~~ 11golf course access to persons who are either condominium owners, ~~2001~~members, their accompanied guests, or guests of the ~~Company~~resort ~~has~~and ~~determined~~a ~~that~~restriction ~~further impairment~~of ~~has~~the ~~occurred~~total number of club memberships. Deposition of class members and ~~consequently~~others, ~~has~~including ~~recognized~~depositions anof prior executives of Golf Host Resorts, have been taken and additional $ discovery remains. The previously scheduled trial date of February 3,~~000,000~~ ~~impairment~~2003 ~~charge~~has ~~during~~been postponed by the ~~quarter~~Court; ~~ended~~a ~~September~~new ~~30, 2001.~~ trial

~~(4) Long-term~~Page ~~obligations~~8

Long-termTable obligations consist of the following: Contents

	September 30,			December 31,
	2001			2000
Participating mortgage note at varying pay rates maturing in 2027	$	69,975,000		$	69,975,000
$9,000,000 participation mortgage note credit facility		9,000,000			9,000,000
Mortgage note at 6.34%, maturing in 2002		2,668,000			3,167,921
Capital leases		714,691			958,376
		82,357,691			83,101,297
Less current maturities		(3,039,210	)		(862,058	)
	$	79,318,481		$	82,239,239

GOLF HOST RESORTS, INC. AND SUBSIDIARY
(a wholly owned subsidiary of Golf Hosts, Inc.)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Page 7

(4)		CONTINGENCIES (continued)

		date has not yet been set. In July 2003, the lawsuit class was de-certified leaving approximately 80 plaintiffs in the lawsuit. Plaintiffs have filed a notice of appeal regarding the de-certification decision. As this litigation is still in progress, the Company is not yet able to determine whether the resolution of this matter will have a material adverse effect on the Company’s financial condition or results of operations. The Company believes Golf Hosts, Inc. has successful defenses based upon consultations with legal counsel and intends to vigorously defend this action.

		The Company has recorded a liability and related asset in the approximate amount of $5,623,000, in recognition of the Master Lease Agreement refurbishment reimbursement program. The liability will be settled in accordance with the terms of the agreement and the asset will be amortized on a straight line basis beginning in 2002 and ending December 31, 2009. Amortization expense for the asset was approximately $391,000 and $204,000 for the periods ended June 30, 2003 and June 30, 2002, respectively.

		As noted in the Company's 10-K filed as of December 31, 2002, the Company has defaulted on its primary mortgage with Golf Trust of America ("GTA"). The Company is engaged in negotiations with "GTA" and is seeking a resolution to its current default status. As of the time of this publication, no definite or final agreement has been reached.

~~GOLF~~Page ~~HOST RESORTS, INC. AND SUBSIDIARY~~9 ~~(a wholly owned subsidiary of Golf Hosts, Inc.)~~

NOTESTable TOof CONSOLIDATED FINANCIAL STATEMENTS Contents

~~(4) Long-term~~RENTAL ~~obligations~~POOL ~~cont.~~LEASE OPERATION

OnThe ~~May 22,~~following ~~2001,~~unaudited ~~Golf~~financial ~~Trust~~statements of ~~America,~~the ~~Inc.~~Innisbrook ~~(“GTA”),~~Rental ~~the~~Pool ~~lender~~Lease Operation on (the ~~$78,975,000~~ ~~participating~~Rental ~~mortgage,~~Pool) ~~announced~~are ~~that its shareholders approved a plan~~ for ~~its~~the ~~liquidation.~~quarters ~~The~~ended ~~impact of GTA’s plan of its liquidation on the Company~~June 30, if2003 ~~any,~~and ~~is uncertain~~2002.

The operation of the Rental Pool is tied closely to that of Golf Host Resorts, Inc. (5the Company) ~~Contingencies~~, and provides for distribution of a percentage of the Company’s room revenues, as defined in the Rental Pool Master Lease Agreements, to participating condominium owners (Participants).

The ~~Company~~Innisbrook ~~has been named as a defendant in consolidated class action lawsuit whereby the plaintiffs allege breaches of contract, including breaches in connection with the~~ Rental Pool ~~Master~~Operation ~~Lease~~is ~~Agreement.~~party ~~The~~to ~~plaintiffs~~lease ~~are seeking~~agreements ~~unspecified~~with ~~damages~~an ~~and declaratory judgement declaring that the~~affiliated ~~plaintiffs~~entity, ~~are~~whose ~~entitled~~ability to ~~participate~~continue inas ~~the rental pool if one exits and~~ a ~~limitation~~ ofgoing ~~golf~~concern ~~course~~is ~~access~~in tosubstantial ~~persons who are either condominium owners,~~doubt. ~~members,~~The ~~their~~operation ~~accompanied guests, or guests~~ of the ~~resort.~~Rental ~~Deposition~~Pool ofis ~~class members~~more ~~and~~fully ~~others,~~discussed ~~including depositions of prior executives of Golf Host Resorts, have been taken and additional discovery remains. A court date of February 3, 2003 has been set. As this litigation is still~~ in ~~its early stages~~Form 10-K, ~~the~~for ~~Company is not yet able to determine whether~~ the ~~resolution of this matter will have a material~~ ~~adverse~~fiscal ~~effect~~year onended ~~the~~December 31, ~~Company’s~~2002 ~~financial~~(file ~~condition or results of operations although the Company believes it has successful defenses and intends to vigorously defend this action~~No. 2-64309).

~~(6) Tamarron’s~~Page ~~results of operations~~10

TheTable Company assumes responsibility for the net income (loss) of Tamarron under the terms of the lease agreement between the Company and Golf Host II, Inc. entered into during 2000. The net income (loss) is as follows and is included in loss on assets held for sale and leased asset in the statements of income. Contents

		Nine months ended			For the 111 days ended
		September 30,			September 30,
		2001			2000
Revenue:
	Hotel	$	2,605,035		$	1,841,337
	Food and beverage		1,679,854			1,005,602
	Golf		1,582,319			986,329
	Other		1,591,104			645,577
			7,458,312			4,478,845
Costs & operating expense:
	Hotel		932,994			578,751
	Food and beverage		1,204,816			763,279
	Golf		692,247			384,262
	Other		2,473,893			1,316,383
	General and administrative		3,344,082			1,291,287
	Interest expense		83,731			15,817
			8,731,763			4,349,779
Net loss		$	(1,273,451	)	$	129,066

INNISBROOK RENTAL POOL LEASE OPERATION
BALANCE SHEETS

~~Page~~DISTRIBUTION 8FUND

GOLF HOST RESORTS, INC. AND SUBSIDIARY (a wholly owned subsidiary of Golf Hosts, Inc.)


			June 30,
			2003		December 31,
			(unaudited)		2002

	ASSETS
LIFE SAFETY RECEIVABLE FROM PARTICIPANTS			$	66,407	$	—
RECEIVABLE FROM GOLF HOST RESORTS, INC. FOR DISTRIBUTION				846,233		1,790,798
INTEREST RECEIVABLE FROM MAINTENANCE ESCROW FUND				14,068		15,856

			$	926,708	$	1,806,654

	LIABILITIES AND PARTICIPANTS’ FUND BALANCES
DUE TO PARTICIPANTS FOR DISTRIBUTION			$	622,555	$	1,480,977
DUE TO MAINTENANCE ESCROW FUND				237,746		325,677
LIFE SAFETY SETTLEMENT LIABILITY				66,407		—

			$	926,708	$	1,806,654


MAINTENANCE ESCROW FUND

	ASSETS
CASH AND CASH EQUIVALENTS			$	3,486,445	$	4,991,956
RECEIVABLE FROM DISTRIBUTION FUND				237,746		325,677
CONSTRUCTION WORK IN PROGRESS				—		7,284
CARPET CARE RECEIVABLE				12,110		23,576
INTEREST RECEIVABLE				16,944		9,012

			$	3,753,245	$	5,357,505

		LIABILITIES AND PARTICIPANTS’ FUND BALANCES
ACCOUNTS PAYABLE			$	659,190	$	2,820
INTEREST PAYABLE TO DISTRIBUTION FUND				14,068		15,856
PARTICIPANTS’ FUND BALANCES - ESCROW A				1,634,853		1,366,611
PARTICIPANTS’ FUND BALANCES - ESCROW B				1,445,134		3,972,218

			$	3,753,245	$	5,357,505

~~NOTES~~These TOstatements ~~CONSOLIDATED~~were ~~FINANCIAL~~prepared ~~STATEMENTS~~from the books and records of the Rental Pool without audit and, in the opinion of the Rental Pool Operators, include all adjustments which are necessary for a fair presentation.

~~(7) Subsequent~~Page ~~events~~11

TheTable Company was informed by GTA on November 29, 2001 that the Company is in default on the $78,975,000 participating mortgage with GTA arising from the Company’s failure to pay the October 2001 interest payment. GTA has asserted its right to accelerate payment of the total outstanding principal amounts. Contents

AsSTATEMENTS aOF ~~result of the default, Wells Fargo Business Credit, Inc. has elected to~~OPERATIONS ~~terminate~~FOR ~~their~~THE ~~credit~~QUARTERS ~~line~~ENDED ~~with~~JUNE ~~the Company effective May 23~~30, ~~2002.~~2003 ~~The~~AND ~~Company~~2002 ~~expects to develop a replacement facility upon reaching a resolution with GTA.~~

AsDISTRIBUTION ~~of July 2002, the Company is seeking to negotiate a Settlement Agreement with~~FUND GTA. In connection with the proposed Settlement Agreement, The Company would transfer to GTA the resort property, three condo- minium properties located at the Innisbrook Resort, the Company’s GTA stock interests, and all rights, title, and interests of the Company under existing contracts and agreements. In addition, the Company would provide a limited indemnity to defend and hold harmless GTA (~~and its affiliates~~Unaudited) ~~from and against any and all costs,~~ ~~liabilities, claims, losses, judgements or damages arising out of or in~~ ~~connection with the Class Action Lawsuit, as well as liabilities accruing on or~~ before the closing date relating to employee benefits and liabilities for contracts or agreements not disclosed by the Company to GTA. In return, it is anticipated that GTA would deliver to the Company a duly executed release. No Settlement Agreement has yet been signed and no terms are definite. Neither GTA nor any of its affiliates is under any obligation to continue to negotiate with the Company or to execute the Settlement Agreement and could initiate foreclosure proceedings and pursue its other remedies at any time.

On November 19, 2001, GH II, an affiliated company and lessor of Tamarron, sold Tamarron for $9,500,000. A portion of the proceeds were contributed to the Company as a capital contribution and were used to settle the remaining balance due under the mortgage note from the previous owners.


		Current quarter						Year-to-Date

		2003			2002			2003			2002


GROSS REVENUES		$	2,485,774		$	3,325,678		$	6,498,035		$	8,253,420

DEDUCTIONS:
	Agents’ commissions		82,033			178,326			260,468			373,116
	Credit card fees		58,723			79,187			153,920			195,506
	Audit fees		5,387			3,813			10,774			8,375
	Uncollectable room rents		—			8,239			2,119			24,371
	Linen replacements		21,290			66,107			74,197			109,028
	Rental pool complimentary fees		654			1,025			1,629			1,820

			168,087			336,697			503,107			712,216

ADJUSTED GROSS REVENUES			2,317,687			2,988,981			5,994,928			7,541,204
MANAGEMENT FEE			(1,390,231	)		(1,791,923	)		(3,595,979	)		(4,520,854	)

GROSS INCOME DISTRIBUTION			927,456			1,197,058			2,398,949			3,020,350
ADJUSTMENTS TO GROSS INCOME DISTRIBUTION:
	Management fee		(223	)		(876	)		(575	)		(2,288	)
	Marketing fee		(121	)		(478	)		(313	)		(1,248	)
	General pooled expense		—			(12,355	)		—			(12,355	)
	Miscellaneous pooled expense		(21	)		(77	)		(45	)		(169	)
	Corporate complimentary occupancy fees		5,040			4,899			7,802			8,717
	Interest (Paragraph 3.1 (3))		(3,183	)		(3,183	)		(6,366	)		(6,366	)
	Gtd MLA guaranteed payment		—			—			1,592			—
	Occupancy fees		(264,162	)		(329,087	)		(571,531	)		(690,951	)
	Advisory Committee expenses		(54,143	)		(48,314	)		(101,537	)		(103,765	)
	Life-safety reimbursement		(46,284	)		—			(134,827	)		—

NET INCOME DISTRIBUTION			564,359			807,587			1,593,149			2,211,925
ADJUSTMENTS TO NET INCOME DISTRIBUTION:
	Occupancy fees		264,162			329,087			571,531			690,951
	Hospitality suite fees		2,424			1,157			3,864			3,019
	Westin Associate room fees		15,288			16,709			39,444			39,445
	Interest		—			—			2,890			—

AMOUNT AVAILABLE FOR DISTRIBUTION TO PARTICIPANTS		$	846,233		$	1,154,540		$	2,210,878		$	2,945,340

Average daily distribution		$	15.85		$	21.76		$	21.00		$	28.38
Average room rate		$	119.74		$	125.61		$	143.32		$	148.33
Occupied room nights			20,760			26,476			45,339			55,642
Available room nights			53,379			53,068			105,286			103,775
Occupancy percentage			38.9	%		49.9	%		43.1	%		53.6	%
Average number of available units			587			583			582			573

AThese ~~revised~~statements ~~Master~~were ~~Lease~~prepared ~~Agreement (“Revised MLA”) has been presented to the rental pool participants, effective January 1, 2002, resulting~~ from the ~~expiration~~ ofbooks ~~the existing Master Lease Agreement (“MLA”) between the Company~~ and ~~rental~~records pool participants under the existing Master Lease Agreement on December 31, 2001. On an annual basis, beginning in 2002 each condominium owner will elect to participate in either the Revised MLA or the Guaranteed Master Lease Agreement (“GMLA”). As of ~~December 26, 2001, 605 rental units had elected participation in~~ the ~~Revised~~Rental ~~MLA~~Pool ~~and~~without 13audit ~~in the GMLA. The Revised MLA provides for Adjusted Gross Revenues, as defined, to be divided 40% to the Innisbrook rental pool participants~~ and ~~60% to the Company. In addition~~, ~~the Company has agreed as part of the Revised MLA, to reimburse participants~~ in the ~~Revised~~opinion ~~MLA for up to 50%~~ of ~~actual unit refurbishment costs. If~~ the ~~Company proves~~ ~~unsuccessful~~Rental inPool ~~its defenses in the class-action lawsuit (Note 4)~~Operators, ~~any~~include ~~rental pool~~all ~~participant~~adjustments ~~who~~which ~~elects,~~are ~~subject~~necessary ~~to the Revised MLA, will forego reimbursement by the Company~~ for ~~renovations~~a orfair ~~offset against future quarterly distributions equal to their pro-rata amount of the class-action settlement proceeds~~presentation.

OnPage ~~October 3,~~12 ~~2001, the FASB issued FASB Statement No. 144 (“FAS 144”),~~ ~~Accounting for the Impairment or Disposal of Long-Lived Assets. FAS 144 excludes~~ goodwill from its scope and, therefore, eliminates the requirement to allocate goodwill to long-lived assets to be tested for impairment. The provisions of FAS 144 will be effective for fiscal years beginning after December 15, 2001. The Company has not completed the process of evaluating the impact that will result from adopting FAS 144.

PageTable 9 of Contents

~~GOLF~~INNISBROOK ~~HOST~~RENTAL ~~RESORTS~~POOL LEASE OPERATION STATEMENTS OF CHANGES IN PARTICIPANTS’ FUND BALANCES FOR THE QUARTERS ENDED JUNE 30, ~~INC.~~2003 AND 2002

~~MANAGEMENT’S~~DISTRIBUTION ~~DISCUSSION AND ANALYSIS~~FUND ~~OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS~~(Unaudited)

Results of Operations


		Current Quarter						Year-to-date
		2003			2002			2003			2002


BALANCE, beginning of period		$	—		$	—		$	—		$	—
ADDITIONS:
	Amount available for distribution		846,233			1,154,542			2,210,878			2,945,340
	Interest received or receivable from Maintenance Escrow Fund		14,068			21,862			25,040			37,718
REDUCTIONS:
	Amounts withheld for Maintenance Escrow Fund		(237,746	)		(296,179	)		(514,698	)		(621,856	)
	Amounts accrued or paid to participants		(622,555	)		(880,225	)		(1,721,220	)		(2,361,202	)

BALANCE, end of period		$	—		$	—			—		$	—


MAINTENANCE ESCROW FUND

BALANCE, beginning of period		$	4,568,662		$	5,338,829		$	3,444,280		$	2,726,458
ADDITIONS:
	Amounts withheld from occupancy fees		237,746			296,179			514,698			621,856
	Interest earned		14,068			21,862			25,040			37,718
	Charges to participants to establish or restore escrow balances		249,203			314,934			1,788,251			4,491,168
REDUCTIONS:
	Maintenance charges		(188,829	)		(115,573	)		(438,815	)		(288,311	)
	Refurbishment Phase II		(1,611,768	)		(818,942	)		(2,012,025	)		(1,971,409	)
	Carpet care reserve deposit		(13,208	)		(16,455	)		(28,576	)		(30,930	)
	Interest accrued or paid to Distribution Fund		(14,068	)		(21,862	)		(25,040	)		(37,718	)
	Refunds to participants as prescribed by the master lease agreements		(161,819	)		(55,136	)		(188,096	)		(604,996	)

BALANCE, end of period		$	3,079,987		$	4,943,836		$	3,079,717		$	4,943,836

~~Quarter~~These ~~Ended~~statements ~~September 30~~were prepared from the books and records of the Rental Pool without audit and, ~~2001~~ in the opinion of the Rental Pool Operators, include all adjustments which are necessary for a fair presentation.

~~During~~Page ~~the~~13 ~~third quarter of 2001, the Company has continued to experience~~ ~~reduced occupancy and overall resort revenue. This downturn was in large part~~ the result of the decline in travel in the United States prior to and following the September 11, 2001 attacks in New York and Washington, DC, as several large groups cancelled plans to utilize the Innisbrook facilities during late September.

TotalTable room nights for the quarter were down 2,985 as compared to the prior year third quarter of 22,123, or 13.5%. Total revenue per room night increased for the quarter from $337.87 to $339.13, or less than a percent. The reduction in room nights, offset by the improvement in spending levels, resulted in a net decrease in gross revenue of $984,452, or 13.2%, as compared to 2000. In response to and in anticipation of this further decline in operating revenue, management continues its focus on establishing the most effective utilization of its resources. Operating expenses, were also reduced from $10,054,460 in 2000 to $8,928,283, or a 11.2% savings (before intangible impairment). The operating loss for the quarter of $5,890,027 was greater than the same period last year. Contents

~~Interest~~GOLF ~~expense~~HOST ~~was $123~~RESORTS,~~422~~ ~~less in the current quarter as compared to last year~~INC. ~~This decrease is attributed to reductions in the utilization~~ ~~of the Accounts Receivable credit line and interest expense on the note~~ ~~due to the prior shareholders partially offset by an increase in the~~ ~~Golf Trust mortgage contractual interest of approximately $108,000.~~

~~Year~~Item 2. toManagement’s ~~Date~~Discussion ~~September 30,~~and ~~2001~~Analysis of Financial Condition and Results of Operations

~~During~~Quarter ~~the nine months~~ ended ~~September~~June 30, ~~2001,~~ ~~the Company continued to experience a reduction in overall~~2003 ~~occupancy and resort revenue and reflects the general downturn in the~~ hotel golf resort industry prior to and following the September 11, 2001 terrorist attacks. Gross revenues declined from the comparable 2000 numbers by $4,278,075, or 9.8%. Room nights were down by 8.5%, or 8,310. Room night sales for 2001 and 2000, respectively, were 89,604 and 97,914.

~~Operating~~During ~~expense~~the ~~(before~~second ~~intangible~~quarter ~~impairment)~~of ~~for~~2003, The Company’s results of operations continued to reflect the ~~nine~~downward ~~months~~trend ~~were~~in ~~reduced~~the byhospitality 8industry and the destination golf resort segment of that industry.~~2%,~~ orOccupancy ~~$3,225,270~~percentages ~~from~~at the Innisbrook resort were 21.6% less than the same three-month period for the prior year. InTotal ~~total~~room nights were down 5,716 ~~operating~~for ~~expenses~~the ~~(before~~period ~~intangible~~ended June 30, ~~impairment)~~2003 inand ~~2000~~compared to the three months ended June 30, 2002. Group room nights were ~~$39~~down 6,~~531~~064 while transient rooms increased by 348 room nights,~~342,~~ as ~~compared~~ compared to ~~$36,306,072~~the insame ~~2001~~period last year. ~~With~~Total ~~the~~revenue ~~reduction~~per inroom ~~gross~~night ~~revenues~~increased ofby 12.1% or $~~4,278,075,~~67.07 ~~partially~~over ~~offset~~the byprior ~~the~~year. ~~reduction~~Gross inrevenue ~~operating~~per ~~expenses~~room ofnight for the three $3months ended June 30,~~225,270,~~ ~~the~~2003 ~~Company~~was ~~has~~$623.20 aas ~~reduction~~compared ofto $~~1,052,805~~556.13 infor ~~operating~~the three ~~income~~months ~~(before~~ended ~~intangible impairment)~~June 30, ~~or 24~~2002.3% ~~for~~These net reductions in room nights coupled with the ~~nine~~increase ~~month~~in ~~comparative~~room ~~period~~night spending levels produced a net decrease in gross revenue of approximately $2,364,000 or 20.1%.

~~Interest~~All ~~expense~~expenses ~~for~~have ~~2001~~been ~~was~~managed ~~less~~to respond ~~than~~to the ~~2000 amount~~reduced bydemand ~~$70,622.~~in ~~This~~the ~~net~~market ~~decrease~~place, isexcluding ~~due~~ the day-to-day ~~the~~maintenance ~~reductions~~costs ~~in the utilization~~ of the ~~Accounts~~four ~~Receivable~~golf ~~revolving~~courses. ~~credit line and reduced~~Operating ~~interest~~expenses, ~~expense~~exclusive onof ~~the~~depreciation ~~note~~and ~~payable~~amortization, ~~to the prior shareholders~~decreased ~~partially~~approximately ~~offset~~$1,074,000 byor ~~the~~11%. ~~contractual~~Depreciation ~~increase~~and inamortization ~~the Golf Trust of~~also ~~America's~~decreased ~~mortgage~~by inapproximately ~~the~~$113,000 ~~aggregate~~or ~~of $324~~13.~~000~~2%.

~~During~~The ~~the~~decrease ~~nine~~in ~~months~~revenue ~~ended~~combined ~~September 30,~~with ~~2001,~~ the ~~Company~~decreases ~~set~~in ~~aside~~operating ~~capital~~expenses and ~~reserves~~depreciation inand ~~the~~amortization ~~amount~~noted ~~of approximately $1~~above,~~733,000.~~ ~~Actual~~produced ~~capital~~a ~~expenditures~~net reduction ~~during~~in the ~~period~~comparative ~~amounted~~three tomonth operating income of approximately $~~926~~1,176,000. ~~These funds were utilized~~ toOperating ~~finalize the Highlands Clubhouse renovation~~income, ~~repair~~before ~~the~~interest ~~Island~~expense ~~Clubhouse roof~~ and ~~water~~preferred ~~heater,~~dividend ~~replace the Innisbrook property water softener~~requirements, ~~fund the~~ ~~property’s~~was ~~golf~~a ~~cart~~loss ~~and~~of ~~golf~~approximately ~~course equipment leases~~$519,000 ~~replace~~versus ~~trees~~income ~~lost~~of toapproximately ~~the~~$657,000 ~~Southern~~for ~~Pine~~the ~~Beetle~~three ~~and~~months ~~upgrade~~ended ~~the~~June 30, ~~computer~~2003 ~~systems~~ and ~~software~~June 30, 2002, respectively.

~~Page~~Interest 10expense, net of interest income, reflects the continued accrual of the Company’s GTA interest obligations. Total interest expense increased by approximately $103,000 or 4.6%. This increase was the result of effective interest rate changes.

~~Financial~~Capital ~~Condition~~expenditure reserves in the amount of approximately $603,000 were set-aside during the quarter ended June 30, 2003. Of this amount, approximately $101,000 was used to fund capital lease payments on operating assets such as golf carts, golf grounds equipment and ~~Liquidity~~computer equipment while $73,000 was used to replace and repair the conference center and clubhouse HVAC, roofing systems and miscellaneous deferred maintenance projects. The balance is being held in reserve to fund the new telephone switch and golf course equipment, both of which will be installed and or delivered before the end of the year 2003.

~~The~~Six ~~Company’s~~months ~~working~~ended ~~capital position (exclusive of Asset Held for Sale) has decreased to a deficit of approximately $17,603,000. This $4,699,000 reduction in working capital from the December~~June 3130, ~~2000 deficit of approximately~~2003 ~~$12,904,000 is primarily the result of net losses after interest of $1,192,663~~ (excluding depreciation and amortization) in addition to the reclassification of the prior shareholders note of $2,668,000 as a current liability. This obligation was subsequently relieved through the utilization of the proceeds on the sale of the Tamarron property on November 18, 2001.

~~The~~During ~~Company~~the ~~continues~~six tomonths ~~experience~~ended ~~seasonal~~June 30, ~~fluctuations~~2003, ~~with~~The ~~net~~Company’s ~~working capital~~results ~~position.~~of ~~These~~operations continued ~~fluctuations~~to ~~have~~reflect ~~been~~the ~~managed~~downward ~~through~~trend in the ~~utilization of~~hospitality anindustry ~~Accounts~~and ~~Receivable~~the destination ~~revolving~~golf ~~credit~~resort ~~line~~segment inof ~~the~~that ~~amount~~industry ofas ~~$3,000,000~~noted ~~with~~above. Occupancy ~~Wells~~percentages ~~Fargo~~at ~~Business~~the ~~Credit,~~Innisbrook ~~Inc.~~resort Aswere ~~described~~18.5% ~~below,~~less than the ~~Company~~same ~~has defaulted~~six-month onperiod ~~its~~for ~~mortgage~~the ~~obligation~~prior toyear. ~~Golf~~Total ~~Trust~~room ofnights ~~America.~~were Asdown a10,303 ~~result~~for ofthe ~~that~~period ~~default~~ended June 30, ~~Wells~~2003 ~~Fargo~~as ~~Business~~compared ~~Credit~~to the six months ended June 30, ~~Inc~~2002. ~~has~~Group and ~~elected~~transient toroom ~~terminate~~nights ~~their~~were ~~credit line~~down ~~with~~8,911 ~~Golf~~and ~~Host~~1,392 ~~Resorts~~room ~~effective~~nights ~~May 23~~respectively, as ~~2002.~~compared ~~While~~to the ~~Company~~same ~~has~~period last year. Total revenue per room night ~~utilized~~increased ~~this~~by ~~credit~~$37.97 ~~line~~or to6.1% ~~facilitate~~over ~~short~~the ~~term~~prior ~~cash~~year. ~~needs~~Gross inrevenue ~~past~~per ~~years,~~room ~~its~~night ~~utilization~~for ~~during~~the ~~2001~~six ~~has~~months ~~been~~ended ~~limited.~~June 30, ~~The~~2003 ~~Company~~was ~~expects~~$659.14 as compared to ~~develop~~$621.17 afor ~~replacement~~the ~~facility~~six ~~upon~~months ~~completion~~ended ofJune 30, ~~the~~2002. ~~loan~~These ~~settlement agreement.~~reductions ~~Management~~in ~~believes~~room ~~that~~nights coupled with the ~~Company~~increase ~~will~~in ~~have~~room ~~to restructure~~night ~~the~~spending ~~GTA~~levels ~~loan~~produced ~~for~~a ~~the~~net ~~economic~~decrease ~~viability~~in gross revenue of ~~the~~approximately ~~Resort~~$4,272,000 or 16.3%.

~~The~~Page ~~Company~~14 ~~was informed by GTA on November 29, 2001 that the company is in~~ ~~default on the $78,975,000 participating mortgage with GTA arising from the~~ ~~Company’s failure to pay the October 2001 interest payment. GTA has asserted its right to accelerate payment of the total outstanding principal amounts.~~

AsTable of July 2002, the Company is seeking to negotiate a Settlement Agreement with GTA. In connection with the proposed Settlement Agreement, the Company would transfer to GTA the resort property, three condominium properties located at the Innisbrook Resort, the Company’s GTA stock interests, and all rights, title and interests of the Company under existing contracts and agreements. In addition, the Company would provide a limited indemnity to defend and hold harmless GTA (and its affiliates) from and against any and all costs, liabilities, claims, losses, judgments or damages arising out of or in connection with the Class Action Lawsuit, as well as liabilities accruing on or before the closing date relating to employee benefits and liabilities for contracts or agreements not disclosed by the Company to GTA. In return, it is anticipated that GTA would deliver to the Company a duly executed release. No Settlement Agreement has yet been signed and no terms are definite. Neither GTA nor any of its affiliates is under any obligation to continue negotiating with the Company or to execute the Settlement Agreement and could initiate foreclosure proceedings and pursue its other remedies at any time. Contents

~~Page~~GOLF 11HOST RESORTS, INC.

~~PART~~Item II2. —Management’s ~~OTHER~~Discussion ~~INFORMATION~~ and Analysis of Financial Condition and Results of Operations (Continued)

~~Item~~ Due to managements reducing operating expenses in response to reduced demand, operating expenses, exclusive of depreciation and amortization, decreased approximately $1,531,000 or 7.2%. ~~Legal~~Depreciation ~~Proceedings~~and amortization also declined by approximately $239,000 or 13.8%.

The ~~Company~~decrease ~~has been named as a defendant~~ in ~~consolidated~~revenue ~~class~~combined ~~action~~with ~~lawsuit whereby~~ the ~~plaintiffs~~decreases ~~allege breaches of contract, including breaches~~ in ~~connection~~ ~~with~~operating ~~the~~expenses ~~Rental Pool Master Lease Agreement. The plaintiffs are~~and ~~seeking~~depreciation ~~unspecified damages~~ and ~~declaratory~~amortization ~~judgement~~noted ~~declaring~~above, ~~that~~produced ~~the plaintiffs~~a ~~are~~net ~~entitled to participate~~ reduction in the ~~rental~~comparative ~~pool~~six ifmonth ~~one~~operating ~~exits~~income ~~and a limitation~~ of ~~golf~~approximately ~~course access to persons who are either condominium owners~~$2, ~~members~~502, ~~their accompanied guests, or guests of the resort~~000. ~~Deposition of class~~Operating ~~members and others~~income, ~~including~~before ~~depositions~~interest ofexpense ~~prior~~and ~~executives~~preferred ofdividend ~~Golf~~requirements, ~~Host~~was ~~Resorts~~approximately $793,000 ~~have~~versus ~~been~~income ~~taken and additional discovery remains. A court date~~ of ~~February~~approximately $3, ~~2003 has been set. As this litigation is still in its early stages~~295,000 ~~the~~for ~~Company is not yet able to determine whether~~ the ~~resolution of this matter will have a material~~six ~~adverse~~months ~~effect~~ended onJune 30, ~~the~~2003 ~~Company’s financial condition or results of operations although the Company believes it has successful defenses~~ and ~~intends~~June 30, ~~to vigorously~~2002, ~~defend this action~~respectively.

~~Item 2.~~Interest ~~Changes~~expense, net of interest income, reflects change in ~~Securities~~the effective interest rates related to the GTA interest obligations. Total interest expense decreased by approximately $38,000 or 0.8%.

~~Not~~Capital ~~applicable~~expenditure reserves in the amount of approximately $1,212,000 were set-aside during the six months ended June 30, 2003. Of this amount, approximately $479,000 was used to fund capital lease payments on operating assets such as golf carts, golf grounds equipment and computer equipment while $200,000 was used to replace and repair the conference center and clubhouse HVAC, roofing systems and miscellaneous deferred maintenance projects. The balance is being held in reserve to fund the new telephone switch and golf course equipment, both of which will be installed and or delivered before the end of the year 2003.

~~Item~~The following information may contain forward-looking statements within the meaning of Section 327A of the Securities Act, and Section 21E of the Exchange Act. ~~Defaults~~Such ~~Upon~~statements ~~Senior~~may ~~Securities~~be identified by the inclusion of terms such as “believe,” “expect,” “hope” or “may.” Although the Company believes that such forward-looking statements are based upon sound and reasonable assumptions, given the circumstances in which the statements are made, the actual results could differ significantly from those described in the forward-looking statements.

~~Not~~Certain ~~applicable~~factors that might cause such a difference include the following: changes in general economic conditions that may influence group conferences and guests’ vacations plans; changes in travel patterns; changes in consumer tastes in destinations or accommodations for group conferences and vacations; changes in rental pool participation by the current condominium owners; reaching a settlement agreement with the Company’s primary lender; settlement of the Class Action Lawsuit; the ability of the Company to continue to operate the Innisbrook property under its management contracts; and the resale of condominiums to owners who elect neither to participate in the rental pool nor to become Club members. Given these uncertainties, readers are cautioned not to put undue reliance on such statements.

~~Item 4.~~Page ~~Submission~~15 ~~of matters to a Vote of Security Holders~~

NotTable applicable. of Contents

~~Item 5.~~GOLF ~~Other~~HOST ~~Information~~RESORTS, INC.

~~Pursuant~~Item to2. anManagement’s ~~agreement~~Discussion ~~with~~and ~~the~~Analysis ~~SEC staff, included in this 10-Q filing are unaudited financial statements~~ of ~~the~~Financial ~~Innisbrook~~Condition ~~Rental Pool Lease Operation~~ and ~~the~~ ~~Tamarron~~Results ~~Rental~~of ~~Pool~~Operations ~~Lease Operation for the quarter ended September 30, 2001 and 2000.~~ (Continued)

~~Page~~Liquidity 12and Capital Resources

~~RENTAL~~The ~~POOL~~Company’s ~~LEASE~~working ~~OPERATIONS~~capital position has decreased to a deficit of approximately $107,300,000. This is a reduction of approximately $9,222,000 in working capital from the December 31, 2002 deficit of approximately $98,078,000.

The ~~following~~Company ~~unaudited~~continues ~~financial~~to ~~statements~~experience ofseasonal ~~the~~fluctuations ~~Innisbrook~~in ~~Rental~~its ~~Pool~~net ~~Lease~~working ~~Operation~~capital ~~and~~position. ~~the~~These ~~Tamarron~~fluctuations ~~Rental~~have ~~Pool~~been ~~Lease~~managed ~~Operation~~in (the ~~Rental~~past ~~Pools)~~through ~~are~~the ~~for~~utilization ~~the~~of ~~quarters~~an ~~and~~accounts ~~nine~~receivable ~~months~~revolving ~~ended~~credit ~~September~~line. Effective May 3023, 2002, ~~2001~~the ~~and~~revolving ~~2000~~credit line with Wells Fargo Business Credit was terminated by Wells Fargo as a result of the Company’s default on the participating mortgage with Golf Trust of America (GTA).

The ~~operations~~Company ofwas ~~the~~informed ~~Rental~~by ~~Pools~~GTA ~~are~~on ~~tied~~November 29, ~~closely~~2001 to that ofthe ~~Golf~~Company ~~Host~~is in ~~Resorts,~~default ~~Inc.~~on (the ~~Company)~~$78,975,000 mortgage and ~~provide~~accrued ~~for~~interest, ~~distribution~~arising offrom ~~a percentage of~~ the Company’s ~~room~~failure ~~revenues,~~to aspay ~~defined~~the inOctober ~~the~~2001 ~~Rental~~interest ~~Pool~~and ~~Master~~all ~~Lease~~subsequent ~~Agreements,~~monthly installments. GTA has asserted its right to ~~participating~~accelerate ~~condominium~~payment ~~owners~~of ~~(Participants)~~the total outstanding principal and interest amounts.

~~The~~As ~~Innisbrook~~of ~~Rental~~August ~~Pool~~2003, ~~Operation~~the Company is ~~party~~seeking to ~~lease~~negotiate ~~agreements~~a Settlement Agreement with anGTA. In connection with the proposed Settlement Agreement, the Company ~~affiliated~~would ~~entity~~transfer to GTA the Innisbrook resort property, ~~whose~~three ~~ability~~condominium units located at the resort, the Company’s ownership interests in GTA stock, and all rights, title and interests of the Company under existing contracts and agreements. In addition, the Company would provide limited indemnity to ~~continue~~defend and hold harmless GTA (and its affiliates) from and against any and all costs, liabilities, claims, losses, judgments or damages arising out of or in connection with the Class Action Lawsuit, as awell ~~going~~as ~~concern~~liabilities accruing on or before the closing date relating to employee benefits and liabilities for contracts or agreements not disclosed by the Company to GTA. In return, it is anticipated inthat GTA would deliver to the Company a duly executed release. No ~~substantial~~Settlement ~~doubt~~Agreement has yet been signed and no terms are definite. Neither GTA nor any of its affiliates are under any obligation to execute the Settlement Agreement and GTA could initiate foreclosure proceedings or pursue any other legal remedies available to it at any time.

~~The~~As ~~operations~~described in Note 4 of the ~~Rental~~notes ~~Pools~~to ~~are~~consolidated ~~more~~financial ~~fully~~statements ~~discussed~~on inthe Company’s Form 10-K, for December 31, 2002, management had determined that due to declining demand in the ~~fiscal~~hotel ~~year~~golf ~~ended~~resort business and related rental pool participation, which led to declines in operating results, impairment of the intangible asset had occurred. At December 31, ~~1999~~2000, ~~(file~~an Noimpairment charge of $7,441,000 was recorded. As a result of the continued decline in destination golf resort business during 2001 and the events of September ~~2-64309)~~11, 2001, the Company had determined that further impairment had occurred and consequently recorded an additional $3,000,000 impairment charge during the quarter ended September 30, 2001. No further impairment has been recognized subsequent to the period ended September 30, 2001.

Page 1316

INNISBROOKTable RENTALof POOL LEASE OPERATION Contents

~~BALANCE~~GOLF ~~SHEETS~~HOST RESORTS, INC.

		September 30,			December 31,
Item 3.	Quantitative and Qualitative Disclosures About Market Risk
		2001			2000
	The Registrant does not have significant market risk with respect to foreign currency exchanges or other market rates. The Registrant’s debt has a fixed contractual interest rate through the year 2027 and, accordingly, fluctuations in interest rates are not expected to affect financial results.
		(unaudited)
Item 4.	Controls and Procedures
DISTRIBUTION FUND
	Within the 90 days prior to the date of this report, the Registrant’s management, including the Chief Executive Officer, the Principal Financial Officer and the Registrant’s agent (Westin North American Management Company), carried out an evaluation of the effectiveness of the design and operation of the disclosure controls and procedures pursuant to Exchange Act Rule 13a-14. Based upon the evaluation, the Registrant’s Chief Executive Officer and the Principal Financial Officer concluded that the Registrant’s disclosure controls and procedures are effective in timely alerting them to material information to be included in the Registrant’s periodic SEC filings.
ASSETS
	There have been no significant changes in the Registrant’s internal controls or in other factors that could significantly affect internal controls subsequent to the date the Chief Executive Officer and the Principal Financial Officer carried out this evaluation.
RECEIVABLE FROM GOLF HOST RESORTS, INC. FOR DISTRIBUTION		$	772,363		$	1,579,097
INTEREST RECEIVABLE FROM MAINTENANCE ESCROW FUND			20,911			45,643
		$	793,274		$	1,624,740
LIABILITIES AND PARTICIPANTS’ FUND BALANCES
DUE TO PARTICIPANTS FOR DISTRIBUTION		$	565,481		$	1,285,558
DUE TO MAINTENANCE ESCROW FUND			227,793			339,182
		$	793,274		$	1,624,740
MAINTENANCE ESCROW FUND
ASSETS
CASH AND CASH EQUIVALENTS		$	2,404,549		$	2,517,396
RECEIVABLE FROM DISTRIBUTION FUND			227,793			339,182
CONSTRUCTION WORK IN PROGRESS			—			11,484
INTEREST RECEIVABLE			9,879			27,301
		$	2,642,221		$	2,895,363
LIABILITIES AND PARTICIPANTS’ FUND BALANCES
ACCOUNTS PAYABLE		$	(3,502	)	$	760,544
CONSTRUCTION RETAINAGE			—			154,419
INTEREST PAYABLE TO DISTRIBUTION FUND			20,911			45,643
CARPET CARE RESERVE			(26,884	)		4,856
PARTICIPANTS’ FUND BALANCES			2,651,696			1,929,901
		$	2,642,221		$	2,895,363

~~These~~Page ~~statements~~17 ~~were prepared from the books and records of the Rental Pool~~ ~~without audit and, in the opinion of management, include all adjustments which~~ ~~are necessary for a fair presentation.~~

PageTable 14 of Contents

~~INNISBROOK~~PART ~~RENTAL~~II ~~POOL~~- ~~LEASE~~OTHER ~~OPERATION~~INFORMATION

~~STATEMENTS~~Item OF1. ~~OPERATIONS FOR~~Legal ~~THE~~Proceedings ~~QUARTERS~~Golf ~~AND~~Hosts, ~~NINE~~Inc., ~~MONTHS~~the ~~ENDED~~Company’s ~~SEPTEMBER~~parent, 30was named as a defendant in a consolidated class action lawsuit whereby the plaintiffs allege breaches of contract, ~~2001~~including ~~AND~~breaches ~~2000 (unaudited)~~ in connection with the Rental Pool Lease Agreement. By order dated April 3, 2003, the Company was substituted in place of Golf Hosts, Inc. as the defendant in the lawsuit. The plaintiffs are seeking unspecified damages and declaratory judgment stating that the plaintiffs are entitled to participate in the rental pool if one exists, a limitation of golf course access to persons who are either condominium owners, members, their accompanied guest, or guests of the resort and a limitation of the total number of Club memberships. Deposition of class members and others, including depositions of prior executives of Golf Host Resorts, have been taken and additional discovery remains. The previously scheduled trial date of February 3, 2003 has been postponed by the Court; a new trial date has not yet been set. In July 2003, the lawsuit was de-certified leaving approximately 80 plaintiffs in the lawsuit. Plaintiffs have filed a notice of appeal regarding the de-certification decision. As this litigation is still in progress, the Company is not yet able to determine whether the resolution of this matter will have a material adverse effect on the Company’s financial condition or results of operations although the Company believes Golf Hosts, Inc. has successful defenses based upon consultations with legal counsel and intends to vigorously defend this action.

~~DISTRIBUTION~~Item ~~FUND~~ 2. Changes in Securities and Use of Proceeds Not applicable.

			Current Quarter						Year-to-Date
			2001			2000			2001			2000
GROSS REVENUES			$	2,045,547		$	2,215,469		$	13,272,026		$	14,602,974
DEDUCTIONS:
		Agents’ commissions		100,056			130,790			554,439			751,708
		Credit Card fees		45,440			17,382			127,233			105,816
		Audit fees		3,625			3,250			10,875			9,751
				149,121			151,422			692,547			867,275
ADJUSTED GROSS REVENUES				1,896,426			2,064,047			12,579,479			13,735,699
MANAGEMENT FEE				(945,022	)		(1,028,043	)		(6,269,449	)		(6,844,636	)
GROSS INCOME DISTRIBUTION				951,404			1,036,004			6,310,030			6,891,063
ADJUSTMENTS TO GROSS INCOME
	DISTRIBUTION:
		Management fee		(106,342	)		(114,082	)		(691,108	)		(758,447	)
		Marketing fee		(58,005	)		(62,226	)		(376,969	)		(413,698	)
		Miscellaneous pooled expense		(11,081	)		(12,721	)		(51,881	)		(56,301	)
		Corporate complimentary occupancy fees		12,361			13,820			33,607			37,675
		Westin Associate room fees		25,039			23,891			76,979			63,566
		Occupancy fees		(255,493	)		(289,366	)		(1,155,586	)		(1,247,776	)
		Advisory Committee expenses		(42,524	)		(8,759	)		(130,773	)		(24,945	)
NET INCOME DISTRIBUTION				515,359			586,561			4,014,299			4,491,137
ADJUSTMENTS TO NET INCOME DISTRIBUTION:
		Occupancy fees		255,493			289,366			1,155,586			1,247,776
		Hospitality suite fees		—			—			—			135
		Greens fees		851			1,182			6,702			6,881
		Additional participation credit		660			720			2,070			2,190
AMOUNT AVAILABLE FOR DISTRIBUTION TO PARTICIPANTS			$	772,363		$	877,829		$	5,178,657		$	5,748,119
Average daily distribution			$	12.48		$	14.11		$	28.84		$	31.73
Average room rate			$	106.88		$	100.14		$	148.12		$	149.14
Occupied room nights				19,136			22,123			89,604			97,914
Available room nights				61,867			62,234			179,587			181,163
Occupancy percentage				30.9	%		35.5	%		49.9	%		54.0	%
Average number of available units				672			676			658			664

Item 3.		Defaults Upon Senior Securities

		Not applicable

~~These~~Item ~~statements~~4. ~~were~~Submission ~~prepared from the books and records~~ of ~~the~~Matters ~~Rental~~to ~~Pool without~~a ~~audit~~Vote ~~and, in the opinion~~ of ~~management,~~Security ~~include~~Holders ~~all~~Not ~~adjustments which are necessary for a fair presentation.~~ applicable

~~Page~~Item 15 5. Other Information Pursuant to an agreement with the SEC staff, included in the 10-Q filing are unaudited financial statements of the Innisbrook Rental Pool Lease Operation for the quarters ended March 31, 2003 and 2002.

~~INNISBROOK~~Item ~~RENTAL~~6. ~~POOL~~Exhibits ~~LEASE~~and ~~OPERATION~~ Reports on Form 8-K (a) The following exhibits are included in this Form 10-Q:

~~STATEMENTS~~31.1 OFPresident ~~CHANGES~~Certification INpursuant ~~PARTICIPANTS’~~to ~~FUND~~Section ~~BALANCES FOR~~302 ~~THE~~of ~~QUARTERS~~Sarbanes-Oxley ~~AND~~Act ~~NINE~~of ~~MONTHS~~2002. ~~ENDED~~31.2 ~~SEPTEMBER~~Principal ~~30,~~Financial ~~2001~~Officer ~~AND~~Certification ~~2000~~ pursuant to Section 302 of Sarbanes-Oxley Act of 2002. 32.1 President Certification pursuant to Section 906 of Sarbanes-Oxley Act of 2002. 32.2 Principal Financial Officer Certification pursuant to Section 906 of Sarbanes-Oxley Act of 2002. (~~unaudited~~b) The Registrant did not file Form 8-K during the three months ended March 31, 2003.

		Current Quarter						Year-to-date
		2001			2000			2001			2000
DISTRIBUTION FUND
BALANCE, beginning of period		$	—		$	—		$	—		$	—
ADDITIONS:
	Amount available for distribution		772,363			877,829			5,178,657			5,748,119
	Interest received or receivable from Maintenance Escrow Fund		20,911			49,269			70,227			161,962
REDUCTIONS:
	Amounts withheld for Maintenance Escrow Fund		(227,793	)		(256,959	)		(1,030,691	)		(1,111,261	)
	Amounts accrued or paid to participants		(565,481	)		(670,139	)		(4,218,193	)		(4,798,820	)
BALANCE, end of period		$	—		$	—		$	—		$	—
MAINTENANCE ESCROW FUND
BALANCE, beginning of period		$	2,625,147		$	7,249,762		$	2,002,330		$	7,021,346
ADDITIONS:
	Amounts withheld from occupancy fees		227,793			256,959			1,030,691			1,111,261
	Interest earned		20,911			49,269			70,227			161,961
	Receivable from Innisbrook		—			—			397,412			—
	Charges to participants to establish or restore escrow balances		8,511			159,191			254,128			324,412
REDUCTIONS:
	Maintenance charges		(109,782	)		(188,038	)		(380,674	)		(414,824	)
	Carpet care reserve deposit		(25,550	)		(13,312	)		(70,556	)		(54,792	)
	Interest accrued or paid to Distribution Fund		(20,911	)		(49,269	)		(70,227	)		(161,961	)
	Refunds to participants as prescribed by the master lease agreements		(74,423	)		(158,034	)		(581,635	)		(680,875	)
BALANCE, end of period		$	2,651,696		$	7,306,528		$	2,651,696		$	7,306,528

Page 18

TheseTable statements were prepared from the books and records of the Rental Pool without audit and, in the opinion of management, include all adjustments which are necessary for a fair presentation. Contents

~~Page 16~~SIGNATURES

~~TAMARRON~~Pursuant ~~RENTAL~~to ~~POOL~~the ~~LEASE~~requirements ~~OPERATION~~ 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.

~~BALANCE~~GOLF ~~SHEETS~~HOST RESORTS, INC.

			September 30,		December 31,
Date: August 14, 2003		By: /s/ Merrick Kleeman
			2001		2000
		Merrick Kleeman
			(unaudited)
		President
DISTRIBUTION FUND
Date: August 14, 2003		By: /s/ R. Keith Wilt
ASSETS
		R. Keith Wilt
CASH			$	1,000	$	1,000
		Vice President and Treasurer
RECEIVABLE FROM GOLF HOST RESORTS, INC. FOR DISTRIBUTION				552,251		181,539
		(Principal Financial Officer)
INTEREST RECEIVABLE FROM MAINTENANCE ESCROW FUND				812		1,549
			$	554,063	$	184,088
LIABILITIES AND PARTICIPANTS’ FUND BALANCES
DUE TO PARTICIPANTS FOR DISTRIBUTION			$	459,019	$	152,957
DUE TO MAINTENANCE ESCROW FUND				95,044		31,131
			$	554,063	$	184,088
MAINTENANCE ESCROW FUND
ASSETS
CASH AND CASH EQUIVALENTS			$	61,942	$	129,635
DUE FROM DISTRIBUTION FUND				95,044		31,131
INVENTORY:
	Linen			69,981		16,496
	Materials and supplies			13,451		7,306
DEPOSITS				4,467		6,292
			$	244,885	$	190,860
LIABILITIES AND PARTICIPANTS’ FUND BALANCES
ACCOUNTS PAYABLE			$	2,326	$	14,597
INTEREST PAYABLE TO DISTRIBUTION FUND				811		1,549
PARTICIPANTS’ FUND BALANCES				241,748		174,714
			$	244,885	$	190,860

~~These~~Page ~~statements~~19 ~~were prepared from the books and records of the Rental Pool~~ ~~without audit and, in the opinion of management, include all adjustments which~~ ~~are necessary for a fair presentation.~~

Page 17

TAMARRON RENTAL POOL LEASE OPERATION

STATEMENTS OF OPERATIONS FOR THE QUARTERS AND NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000 (unaudited)

DISTRIBUTION FUND

				Current Quarter						Year-to-date
				2001			2000			2001			2000
GROSS REVENUES				$	1,288,614		$	1,556,860		$	2,413,899		$	2,695,881
DEDUCTIONS:
	Agents’ commissions				14,635			33,665			61,441			74,163
	Sales and marketing expenses				96,646			116,764			181,042			202,191
	Audit fees				3,255			3,255			9,765			9,765
					114,536			153,684			252,248			286,119
ADJUSTED GROSS REVENUES					1,174,078			1,403,176			2,161,651			2,409,762
MANAGEMENT FEE					(622,747	)		(737,172	)		(1,146,533	)		(1,276,048	)
GROSS INCOME DISTRIBUTION					551,331			666,004			1,015,118			1,133,714
ADJUSTMENTS TO GROSS INCOME
		DISTRIBUTION:
			Corporate complimentary occupancy fees		1,565			1,673			3,209			2,795
			Occupancy fees		(138,101	)		(128,717	)		(308,216	)		(261,708	)
			Designated items		(24,993	)		(9,232	)		(56,727	)		(39,772	)
			Advisory Committee expenses		(645	)		(1,374	)		(8,664	)		(4,014	)
POOLED INCOME					389,157			528,354			644,720			831,015
ADJUSTMENTS TO POOLED INCOME:
			Occupancy fees		138,101			128,717			308,216			261,708
NET INCOME DISTRIBUTION				$	527,258		$	657,071		$	952,936		$	1,092,723
	Average daily distribution			$	25.59		$	30.94		$	15.01		$	15.86
	Average room rate			$	126.00		$	120.38		$	104.80		$	101.58
	Room nights				10,227			12,933			23,032			26,441
	Available Rooms				20,491			21,320			63,247			68,937
	Occupancy percentage				49.6	%		60.9	%		36.3	%		38.4	%
	Average number of available units				224			230			232			251

These statements were prepared from the books and records of the Rental Pool without audit and, in the opinion of management, include all adjustments which are necessary for a fair presentation.

Page 18

TAMARRON RENTAL POOL LEASE OPERATION

STATEMENTS OF CHANGES IN PARTICIPANTS’ FUND BALANCES FOR THE QUARTERS AND NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000 (unaudited)

		Current Quarter						Year-to-date
		2001			2000			2001			2000
DISTRIBUTION FUND
BALANCE, beginning of period		$	—		$	—		$	—		$	—
ADDITIONS:
	Amounts available for distribution		527,258			657,071			952,935			1,092,724
	Interest received or receivable from Maintenance Escrow Fund		811			1,442			2,856			2,816
REDUCTIONS:
	Amounts withheld for Maintenance Escrow Fund		(69,050	)		(64,360	)		(154,608	)		(130,859	)
	Amounts accrued or paid to participants		(459,019	)		(594,153	)		(801,183	)		(964,681	)
BALANCE, end of period		$	—		$	—		$	—		$	—
MAINTENANCE ESCROW FUND
BALANCE, beginning of period		$	210,260		$	215,616		$	174,714		$	188,338
ADDITIONS:
	Amounts withheld from occupancy fees		69,050			64,360			154,608			130,859
	Interest earned		811			1,442			2,856			2,816
	Reimbursement of designated items		24,993			9,232			56,728			39,772
	Charges to participants to establish or restore escrow balances		57,741			99,699			99,350			201,557
REDUCTIONS:
	Maintenance and inventory charges		(72,616	)		(127,923	)		(159,125	)		(251,972	)
	Refurbishing charges		—			—			—			—
	Interest accrued or paid to Distribution Fund		(811	)		(1,442	)		(2,856	)		(2,816	)
	Designated items		(24,993	)		(9,232	)		(56,727	)		(39,772	)
	Refunds to participants as prescribed by Master Lease Agreement		(22,687	)		(3,845	)		(27,800	)		(20,875	)
BALANCE, end of period		$	241,748		$	247,907		$	241,748		$	247,907

These statements were prepared from the books and records of the Rental Pool without audit and, in the opinion of management, include all adjustments which are necessary for a fair presentation.

Page 19

Item 6. Exhibits and Reports on Form 8-K

(a) Exhibits

99.1	President Certification required under Section 906 of Sarbanes-Oxley Act of 2002.
99.2	Principal Financial Officer Certification required under Section 906 of Sarbanes-Oxley Act 2002.

(b) Reports on Form 8-K

None

Page 20

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.

GOLF HOST RESORTS, INC. For the quarter ended September 30, 2001

Date: September 20, 2002		By:		/s/ Merrick Kleeman Merrick Kleeman President
Date: September 20, 2002		By:		/s/ R. Keith Wilt R. Keith Wilt Vice President and Treasurer (Principal Financial Officer)

Page 21

TABLE OF CONTENTS

SIGNATURES SECTION 302 CERTIFICATION SECTION 302 CERTIFICATION CEO Certification CFO Certification

SECTION 302 CERTIFICATION

CERTIFICATION

I, Merrick Kleeman, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Golf Host Resorts, Inc; 2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; 3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in the quarterly report; 4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure control procedures (as defined in Exchange Act Rules 13a – 14 and 15d – 14) for the registrant and have:

a. designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; b. evaluated the effectiveness of the registrant’s disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the “Evaluation Date”); and c. presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of’ the Evaluation Date;

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):

a. all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant’s ability to record, process, summarize and report financial data and have identified for the registrant’s auditors any material weaknesses in internal controls; and b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls; and

6. The registrant’s other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our more recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

Date: October 30, 2002		/s/ Merrick Kleeman
		Name: Title:		Merrick Kleeman President

SECTION 302 CERTIFICATION

CERTIFICATION

I, R. Keith Wilt, certify that:

Date: October 29, 2002		/s/ R. Keith Wilt
		Name: Title:		R. Keith Wilt Vice President & Treasurer (Principal Financial Officer)

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