Boykin Lodging Suspends Q4 Dividend

CLEVELAND-Boykin Lodging Co. says its board of directors has voted to suspend the quarterly cash dividend payment for the fourth quarter. For the first three quarters of 2001, Boykin declared dividends of $0.365, or a total of $1.095 per share.

The company has met the minimum distribution requirements for 2001 REIT qualification purposes, officials say. Robert W. Boykin, chairman and chief executive officer, blames the Sept. 11 terrorist attacks for the cancellation.

“As we indicated last month, the events of Sept. 11 have had a material effect on lodging demand, and therefore our cash flow,” Boykin says. “We intend to resume the dividend at an appropriate level when the outlook turns positive and when we can see trends of tangible improvement in revenues and cash flow. The board will next address our dividend policy again in March 2002.”

The company is a real estate investment trust that focuses on the ownership of full-service, upscale commercial and resort hotels, with 33 hotels containing a total of 9,249 rooms located in 19 states, and operating under such internationally known brands as Doubletree, Marriott, Hilton, Radisson and Embassy Suites, among others.