COLUMBIA, MD— Humphrey Hospitality Trust, a real estate investment trust (REIT), has appointed Randy Whittemore as president and CEO of the REIT. Whittemore has served as a director of the REIT since November 1994. He most recently served as senior vice president of Anderson & Strudwick, a brokerage firm based in Richmond, VA, which served as underwriter of the REITs public stock offerings. The REIT expects to add additional personnel as its management team becomes responsible for the services currently provided by Humphrey Hospitality Management, the current lessee of the REITs hotels (“HHM”) under an administrative services agreement. In addition, the REIT also said it expects to complete its previously announced taxable REIT subsidiary (“TRS”) structuring by December 31, 2001. Under the TRS structure, the REIT will form a new taxable REIT subsidiary (100% owned by the REIT) that will become the new lessee for the REITs hotels. It is anticipated that the TRS will enter into management agreements with HHM. Subject to franchisor approval, the TRS expects to become the franchisee for the REITs hotels. Currently, HHM is the franchisee for all of the hotels. The timing of the franchise transfers will depend upon a number of factors, including the cost of transfers. In addition, the closing of the TRS structure is conditioned on approval by the REITs lenders. The TRS expects to enter into a new four-year management agreement with HHM to manage the hotels, and will realize any operating profit or loss after payment of hotel operating expenses, rent to the REIT under the leases, management fees to HHM and income taxes at the TRS level. The REIT had previously announced it implemented a new dividend policy of paying approximately 100% of annual REIT taxable income. As a result of the slowdown in travel activity following the events of Sept. 11, the REIT cannot forecast financial results for the foreseeable future. However, based on the dividends paid by the REIT in 2001 to date and the REITs current projections for the remainder of 2001, the REIT believes that it is unlikely that a quarterly dividend for the fourth quarter of 2001 will be paid, said company executives.
