CLEVELAND— Hotel owner Boykin Lodging Co. said it will suspend its cash dividend in the fourth quarter, in a move widely expected following the steep drop in hotel business since Sept. 11. The move by Cleveland-based Boykin makes it the third hotel owner in the last two days to suspend its dividend payment. Earlier this week, Host Marriott Corp., one of the nations biggest hotel owners, said in a filing it will temporarily suspend the dividend on its common stock. Equity Inns made a similar announcement this week. The wave of temporary dividend suspensions was widely expected as hotel owners moved to conserve cash amid one of the most abrupt downturns ever for the industry during the travel crisis sparked by the Sept. 11 air attacks on the World Trade Center and Pentagon. “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,” said Robert Boykin, Boykins president/CEO. For the first three quarters of 2001, the company declared dividends of just under $0.37 per share, or a total of about $1.10 per share. Boykin said it has met minimum distribution requirements for 2001 qualification purposes as a real estate investment trust (REIT), and that its board will next address dividend policy in March 2002.
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