Host Funding acquires limited-service and full-service hotels and currently trades on the American Stock Exchange, albeit tenuously. The company owns 11 limited service properties in six states, as well as minority interest in four Mexico hotel properties with a group that owns 34 other properties in that country.

Carnegie is a diversified communications company that provides telephone systems, communications software and support services to hotels and hotel properties. It trades on the over-the-counter bulletin board and currently has pending a $2.1 billion lawsuit against Grant Thornton LLC, its former accounting firm, which it accuses of fraud, negligence and defamation. A court date has been scheduled for Oct. 16 in the Circuit Court of Baltimore City.

At last count, Host Funding had two employees and Carnegie had 106. The merger is scheduled to close April 16, following negotiation of definitive contracts, corporate filing requirements and completion of due diligence. Carnegie is expected end up with 80% to 90% of the combined company. There is still uncertainty about where the new public company will be traded, however.