Jameson Plans to Convert From REIT

Jameson Inns Inc., Atlanta, has announced a strategic restructuring proposal under which it would terminate its status as a real estate investment trust and acquire the company that leases and operates its hotels.Jameson said it has agreed to buy Kitchin Hospitality LLC from Thomas W. Kitchin (Jameson's chairman and chief executive officer) and members of his family by issuing approximately 2.185 million shares of common stock and paying $1.3 million in cash. Kitchin would become Jameson's hotel operating division. Jameson said it expects to cease paying a dividend on its common stock for "the foreseeable future" as a result of converting from a REIT to a C corporation and will use the retained earnings for capital investments, debt repayments, and brand growth. "This restructuring is designed to strengthen Jameson's financial position, simplify its corporate structure, eliminate certain perceived conflicts of interest, and over the long term, enhance shareholder value," the hotel REIT said. Craig Kitchin, Jameson's president and chief financial officer, said the company believes it has "a significant opportunity" for growth, but that "our inability to retain earnings as a hotel REIT is keeping us from reaching our full potential." The company can be found online at http://www.jamesoninns.com.