COLUMBIA, MD Humphrey Hospitality, a REIT which currently owns 92 limited-service hotel properties in 19 Midwestern and Eastern states, has formed a committee of independent directors to evaluate information recently received from the lessee of its hotel properties, Humphrey Hospitality Management.
Humphrey Hospitality Management has incurred, and expects to incur, substantial losses from the leasing and operation of the REIT s hotels. For the year ended December 31, 2000, the lessee reported a net loss of approximately $2.4 million.
The new committee of directors will explore alternatives including engaging third-party management companies to manage the hotels, adding amendments to existing leases with Humphrey Hospitality Management to reduce the rent paid to the REIT, or the sale of certain hotels.
As a result of these problems, Humphrey Hospitality REIT does not expect to maintain its current monthly dividend rate beyond its previously announced $0.77 per share monthly dividend payable on April 30, 2001 to shareholders of record on March 30, 2001. (3/29/01)