Jameson posted FFO of $2.58 million or 22 cents per diluted share of common stock versus $1.5 million or 13 cents in the comparable 2001 period.

"In light of the continuing difficult economy, we are pleased with the company's performance for the quarter," says Jameson CEO Tom Kitchin. "Although revenues were up only 2%, we grew funds from operations by 72%."

Combined Q4 revenue per available room for all of the company's properties was $26.83, up four cents or 0.1% from Q4 2001, largely due to a 1% increase in the average daily rate. At the same time, occupancy decreased to 44.7% from 45.1%. Jameson Inns Inc. owns/operates 96 Jameson Inns and 25 Signature Inns in 14 states.

Net loss before dividends to preferred shareholders improved to a loss of $567,000 from a loss of $2.86 million in Q4. The net loss attributable to common stockholders was $2.23 million or 20 cents per share compared to a loss of $4.52 million or a loss of 40 cents per share in the same 2001 quarter.

Kitchin says "the adjustable rate nature of most of our debt has served as a natural hedge to a sluggish economy." Interest expense for the quarter was 10 cents per share, "lower than four the fourth quarter last year," the Jameson chief says.

The weighted average interest rate on all debt was 6.1%, compared to 8.3% in 2001, a reduction of 170 basis points. Jameson Inns Inc. anticipates full year 2003 required principal loan repayments of about $10.1 million.Lease revenue earned from Kitchin Hospitality LLC, which leases and operates the inns, increased by $232,000 for the quarter. Lease revenue earned from the Jameson Inns was up by $377,000, due primarily to an increase in Revpar compared to the same 2001 period, Kitchin says. But lease revenue earned from Signature Inns dropped by $135,000 due to the sale of one Signature Inn and a decrease of 9,108 room nights available in 2002 compared to 2001.