For the three months that ended September 30, 2001, funds fromoperations were $9.5 million, or $0.51 per share, versus $14.2million, or $0.76 per share, for the same period the year before.Total revenues for the third quarter were $19.4 million, down 19.5%from the same period in 2000. Percentage lease revenue for thethird quarter was $17.4 million this year, down 20.1% from a yearago.

On a same-unit basis, third-quarter room revenue per availableroom (REVPAR)decreased 14.5% to $60.14. Occupancy during the thirdquarter of 2001 decreased to 65.5% from 73.9%, while the averagedaily rate decreased 3.5% to $91.80. Net income for the 2001 thirdquarter was $1.3 million, or $0.08 per diluted share, down 58% fromthe same period in 2000.

"As I said when we announced our third-quarter dividend onOctober 4, the reaction to the Sept. 11 terrorist attacksundermined an already weak hotel operating environment caused bythe slowing economy," says Robert W. Boykin, chairman and CEO."Under such circumstances, our board of directors will probablysuspend the fourth-quarter dividend. We have already paid outenough in dividends this year to maintain our tax status as a REIT.Even if the dividend is suspended in the fourth quarter, it will beresumed at an appropriate level when the outlook turns positive andwhen we can see trends of tangible improvement in revenues and cashflow."

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