Boykin Lodging Announces Second Quarter Financial Results

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. October 14, 2008

OHIO, August 8, 2005. Boykin Lodging Company , a hotel real estate investment trust, today announced financial results for the second quarter and six months ended June 30, 2005.

Financial Highlights:

Revenue per available room (RevPAR) for the second quarter for hotels owned and operating as of June 30, 2005 increased 13.5% to $73.34 from last year's $64.62. The increase in RevPAR was the result of a 3.1% increase in average daily room rate to $101.25 and a 6.6 point increase in occupancy to 72.4%.

The Company's net income attributable to common shareholders for the second quarter of 2005 totaled $6.0 million, or $0.34 per fully-diluted share, compared with the same period last year when the net loss totaled $0.4 million, or $0.02 per share.

Funds from operations attributable to common shareholders (FFO) for the second quarter totaled $4.1 million, or $0.23 per fully diluted share, a decrease from second-quarter 2004 FFO of $5.8 million, or $0.33 per share. Primary contributors to the decrease in FFO included the loss of $0.6 million of contribution from condominium development and unit sales and a $1.5 million increase in corporate general and administrative expenses, both net of minority interest. Approximately $1.2 million of the corporate general and administrative expense increase is attributable to non-recurring increases in compensation expense, resulting from pre-existing compensation agreements, and non-recurring professional fees. These charges were partially offset by interest savings and increases in interest income. The FFO contribution from hotel operations was virtually unchanged from the second quarter of 2004 to 2005 because, while the earnings before interest, taxes, depreciation and amortization (EBITDA) of properties owned for both periods increased 16.4%, this was offset by the loss of EBITDA from properties sold.

The Company's EBITDA for the second quarter, including the Company's share of EBITDA from unconsolidated joint venture subsidiaries, totaled $9.4 million, down from last year's second quarter EBITDA of $12.2 million, primarily due to the reasons stated above; losses of contributions from condominium development and unit sales of $0.7 million combined with $1.8 million of increases in corporate general and administrative expenses, approximately $1.4 million of which is non-recurring. The EBITDA change, however, is not impacted by minority interest. FFO and EBITDA are non-GAAP financial measures that should not be considered as alternatives to any measures of operating results under GAAP. A reconciliation of these non-GAAP measures to GAAP measures is included in the financial tables accompanying this release.

The operating results of the properties sold during 2004 and the French Lick Springs Resort and Spa and the Clarion Hotel & Conference Center sold during the second quarter of 2005 are reflected in the financial statements as discontinued operations for all periods presented.

Details of Second Quarter Results:

Revenues from continuing operations for the quarter ended June 30, 2005, were $54.8 million, compared with revenues of $52.5 million for the same period last year. Hotel revenues for the three months ended June 30, 2005 were $54.5 million, a 7.1% increase from $50.9 million for the same period in 2004. Included in other hotel revenues is $1.3 million related to business interruption insurance recoveries for the two closed Melbourne properties. For comparative purposes, 2004 hotel revenues included approximately $3.0 million related to the two Melbourne properties, which were open during that period. Offsetting the increases in hotel revenue is the decrease in condominium development and unit sales due to the completion of the White Sand Villas project in 2004.

For the comparable properties, consisting of the 17 consolidated properties owned and operated under a Taxable REIT Subsidiary (TRS) structure as of June 30, 2005 and excluding hotels closed due to hurricane damage, RevPAR increased 12.8% to $72.06 in 2005 from $63.90 in 2004. Contributing to the RevPAR increase was a 3.1% increase in average daily room rate to $100.70 from $97.63, combined with a 6.1 point increase in occupancy to 71.6% from 65.5%.

Hotel profit margins, defined as hotel operating profit (hotel revenues less hotel operating expenses) as a percentage of hotel revenues, of the consolidated hotels operated under the TRS structure for the second quarter were 30.3%, an increase from the 27.7% hotel operating profit margin for the second quarter of 2004. A portion of the increased margin is the result of the recognition of the business interruption insurance recoveries during the second quarter of 2005 within hotel revenues. Excluding the business interruption amounts from 2005 and the two Melbourne properties from the 2004 results, hotel operating profit margins for the portfolio increased 220 basis points to 29.4% from 27.2% in 2004.

As a result of the property sales in 2005, the Company has been able to reduce its outstanding debt from $200.0 million at December 31, 2004 to $140.5 million as of June 30, 2005.