Jameson Inns Aims to Drop REIT Status

ATLANTA-Jameson Inns Inc., operating as a locally based real estate investment trust since 1994, has told the Securities and Exchange Commission it will be asking shareholders to approve a restructuring deal that would shed its REIT status and allow it to buy its leasing arm, Kitchin Hospitality LLC, for $1.3 million.

The company plans to use the proceeds to pay off taxes due from the transaction. As part of the deal, Jameson will issue 2.18 million shares of its common stock to Kitchin Hospitality owner Thomas W. Kitchin and members of his family. Kitchin is also chairman and CEO of Jameson.

The 120-hotel company, catering largely to business travelers in the Southeast, will lay out the deal to shareholders on Nov. 25. If approved, the transaction is scheduled to close Jan. 1, 2004. The company also has six Signature Inns operating in the Midwest.