##### 









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549


Form 10-K


|           |  |                                                                                             
|---------- |  | --------------------------------------------------------------------------------------------
|(Mark One) |  |                                                                                             
|þ          |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934    
|          
|           |  | For the fiscal year ended December 31, 2005                                                 
|          
|or        
|          
|o          |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
|          
|           |  | For the transition period
    from           to                                             

Commission file number 001-11975


Boykin Lodging Company


(Exact Name of Registrant as Specified in Its Charter)


|                                                                               |  |                                         
|------------------------------------------------------------------------------ |  | ----------------------------------------
|Ohio                                                                           |  | 34-1824586                              
|(State or Other Jurisdiction of
    Incorporation or Organization)             |  | (I.R.S. Employer
    Identification No.)
|                                                                              
|Guildhall Building, Suite 1500, 45 W. Prospect
    Avenue,
    Cleveland, Ohio |  | 44115                                   
|(Address of Principal Executive Office)                                        |  | (Zip Code)                              

(216) 430-1200


(Registrants telephone number, including area code)


Securities registered pursuant to Section 12(b) of the
Act:


|                                                                                                                                                        |  |                                     
|------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------
|Title of Class                                                                                                                                          |  | Name of Exchange on Which Registered
|                                                                                                                                                        |  |                                     
|Common Shares, without Par Value                                                                                                                        |  | New York Stock Exchange             
|Depositary Shares, each
    representing1/10
    of a share of
    101/2%
    Class A Cumulative Preferred Shares, Series 2002-A,
    without par value |  | New York Stock Exchange             

Securities registered pursuant to Section 12(g) of the
Act:


None


o þ


o þ


þ o


o




o þ o


o þ






DOCUMENTS INCORPORATED BY REFERENCE:














---



##### 



FORWARD LOOKING STATEMENTS






| |   |                                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------
| |  | Leasing, management or performance of the hotels;                                                                                          
|
| |  | Our plans for expansion, conversion or renovation of the hotels;                                                                           
|
| |  | Adequacy of reserves for renovation and refurbishment;                                                                                     
|
| |  | Our financing plans;                                                                                                                       
|
| |  | Our continued qualification as a REIT under applicable tax laws;                                                                           
|
| |  | Our policies and activities regarding investments, acquisitions,
    dispositions, financings, conflicts of interest and other
    matters;
|
| |  | National and international economic, political or market
    conditions; and                                                               
|
| |  | Trends affecting us or any hotels financial condition or
    results of operations.                                                       







PART I




| |                 
| | ----------------
| | Item 1. Business



| |                                    
| | -----------------------------------
| | (a) General Development of Business



| |                             
| | ----------------------------
| | About Boykin Lodging Company





1



---



##### 







| |                                                  
| | -------------------------------------------------
| | (b) Financial Information About Industry Segments





| |                                      
| | -------------------------------------
| | (c) Narrative Description of Business



| |                         
| | ------------------------
| | Boykins Hotel Portfolio





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Four hotels in which we owned an interest were sold during 2005,
    generating gross proceeds of $147.25 million. These hotels
    included Hotel 71, French Lick Springs Resort & Spa, the
    Clarion Hotel and Conference Center and the Hampton Inn San
    Diego Airport/ Sea World.                                                                                                                                                                                                                                                                                                                                                                                                             
|
| |  | We have previously completed two condominium hotel projects at
    our Pink Shell Beach Resort & Spa. Our next condominium
    hotel project, the final component to the redevelopment of the
    Pink Shell, is Captiva Villas. The project, which commenced
    construction in late 2005, is scheduled for completion in the
    first quarter of 2007 at an estimated cost of $26 million.
    Once completed, the building will contain 43 beach-front units.
    Similar to our other condominium hotel projects, the units in
    the new building will be sold as condominiums, with the
    anticipation that the owners will put their unused room nights
    back to the resort by contract.
|
| |  | In January 2006, a joint venture in which we own a 50%
    interest purchased the Banana Bay Resort &
    Marina  Marathon, located in Marathon, Florida for
    $12.0 million. The resort, which comprises 65 guestrooms on
    ten acres, was acquired for potential redevelopment as a
    condo-hotel project.                                                                                                                                                                                                                                                                                                                                                                                    
|
| |  | Our two hotels in Melbourne, Florida, which have been closed
    since Hurricane Frances in September 2004, are not expected
    to resume normal operations until late in the second quarter of
    2006, subject to the availability of labor and materials.                                                                                                                                                                                                                                                                                                                                                                                                                                         



| |                                       
| | --------------------------------------
| | Competition and Other Economic Factors







| |            
| | -----------
| | Seasonality



2



---



##### 





| |               
| | --------------
| | Hotel Managers



|                                                                |  |           |    | 
|--------------------------------------------------------------- |  | --------- | -- | 
|                                                                |  | Number    |   
|Manager                                                         |  | of Hotels |   
|                                                                |  |           |   
|Boykin Management Company Limited Liability Company
    (BMC) |  |           | 20 | 
|Concord Hospitality Enterprises (Concord)                     |  |           | 1  | 
|                                                                |  |           |   
|                                                                |  |           | 21 | 
|                                                                |  |           |   

BMC.






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | BMCs owners have retained their equity interests in the
    Partnership;                                                                                                                                                                                                                                                                                                                                                                            
|
| |  | Our corporate charter documents require that our independent
    directors shall make all determinations to be made on behalf of
    Boykin Lodging Company with respect to the relationships or
    opportunities that represent a conflict of interest for any
    officer or director of Boykin Lodging Company;                                                                                                                                  
|
| |  | Any affiliate of the Boykin Group, including Robert W. Boykin
    and John E. Boykin, will conduct all hotel acquisition,
    development and ownership activities only through Boykin Lodging
    Company, other than the acquisition through inheritance of the
    Miami Hampton Inn by Robert W. Boykin and John E. Boykin, for
    which the initial development by William J. Boykin, their
    father, was approved by our Board of Directors;
|
| |  | BMC is entitled to receive incentive management fees with
    respect to certain hotels it manages for us if the hotel
    operating performance exceeds benchmarks set forth in the terms
    of each management agreement;                                                                                                                                                                                                                         
|
| |  | A portion of BMCs corporate-level senior executive
    teams compensation is based upon the performance of our
    hotels; and                                                                                                                                                                                                                                                                                                                     
|
| |  | BMC has a deferred compensation plan for its corporate-level
    senior executives under which the value of each award is based
    on, and fluctuates with, the value of our common shares.                                                                                                                                                                                                                                                         

Concord. ® ® ® ® ®




| |                                   
| | ----------------------------------
| | Terms of the Management Agreements







| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Duration/ Termination. As of December 31, 2005, the
    Management Agreements had remaining terms ranging from one to
    approximately eight years. We have the right to terminate 18 of
    the Management Agreements upon 90 days advance
    written notice without having to pay any damages or a
    termination fee or penalty. For the nineteenth hotel, if the
    management agreement is terminated by us prior to
    October 23,

3



---



##### 



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | 2006, the termination fee will be two times the actual
    management fees paid in calendar year 2005. If the management
    agreement is terminated by us after October 23, 2006, the
    termination fee will be equal to the management fees paid for
    the previous full calendar year.                                                                                                                                                                                                                                                                                                                                                                        
|
| |  | Management Fees. Most of the Management Agreements
    provide for base and incentive management fees. The Management
    Agreements have base fees which range from 1.5% to 3% of total
    revenues. All of the Management Agreements have incentive
    management fees payable to BMC based upon the applicable hotel
    reaching specified financial performance standards.                                                                                                                                                                                                                                                                                    
|
| |  | Operating and Other Expenses. All of the Management
    Agreements provide that we are responsible for all operating
    expenses associated with the hotels. In addition, we are
    responsible to either pay directly or reimburse the operator for
    all other expenses relating to the hotel including, without
    limitation, real estate taxes, insurance premiums and debt
    service.                                                                                                                                                                                                                                                                   
|
| |  | Indemnification. All of the Management Agreements provide
    that we will hold the operator harmless from and against all
    liabilities, losses, claims, damages, costs and expenses that
    arise from or in connection with (a) the performance of the
    operators services under the agreement, (b) any act
    or omission (whether or not willful, tortious, or negligent) by
    us or any third party, or (c) any other occurrence related
    to the hotel, except for events that result from (i) the fraud,
    willful misconduct or gross negligence of the operator or
    (ii) the breach by the operator of any provision of the
    agreement.
|
| |  | Events of Default. Events of default include
    (a) failure to make any payment required by the agreement,
    (b) failure to observe or perform any term or provision
    after 30 days notice to cure, and (c) failure of
    either party to perform in accordance with an applicable
    franchise agreement.                                                                                                                                                                                                                                                                                                                                                  



| |                                                
| | -----------------------------------------------
| | Joint Ventures with Third Party Hotel Operators



|                      |  |            |         |                  |            |  |              |            |  |  |                                 |   |  |                                            
|--------------------- |  | ---------- | ------- | ---------------- | ---------- |  | ------------ | ---------- |  |  | ------------------------------- | - |  | -------------------------------------------
|                      |  |            |         | Boykin Ownership |            |  | JV Ownership |            |  | 
|Name of Joint Venture |  | JV Partner |         |                  | Percentage |  |              | Percentage |  |  | Hotel Owned Under Joint Venture
|                      |  |            |         |                  |            |  |              |            |  |  |                                
|BoyCon, L.L.C.        |  |            | Concord |                  |            |  | 50           | %          |  |  | 50                              | % |  | Meadowlands-Lyndhurst Courtyard by Marriott



| |                                              
| | ---------------------------------------------
| | Compliance with Federal, State and Local Laws







| |          
| | ---------
| | Employees



4



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##### 





| |                                     
| | ------------------------------------
| | Executive Officers of the Registrant



|                    |  |     |    |  |          |                                                                      
|------------------- |  | --- | -- |  | -------- | ---------------------------------------------------------------------
|Name                |  | Age |    |  | Position
|                    |  |     |    |  |         
|Robert W. Boykin    |  |     | 56 |  |          | Chairman of the Board and Chief Executive Officer                    
|Richard C. Conti    |  |     | 55 |  |          | President and Chief Operating Officer                                
|Shereen P. Jones    |  |     | 44 |  |          | Executive Vice President,  Chief Financial and
    Investment Officer
|Russ C. Valentine   |  |     | 60 |  |          | Senior Vice President, Acquisitions                                  
|Andrew C. Alexander |  |     | 42 |  |          | Senior Vice President and General Counsel                            

















| |                     
| | --------------------
| | Corporate Governance





5



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##### 



www.boykinlodging.com




| |                                                 
| | ------------------------------------------------
| | (d) Financial Information About Geographic Areas





| |                          
| | -------------------------
| | (e) Available Information

www.boykinlodging.com 10-K, 10-Q, 8-K




| |                      
| | ---------------------
| | Item 1A. Risk Factors





| |                                    
| | -----------------------------------
| | Risks Related to the Hotel Industry

Public reaction to acts of terrorism or military action could
affect our cash flow.


Competition, economic conditions and similar factors
affecting us and the hotel industry generally could affect our
performance.




| |   |                                                                                                                                                                                                                                                                                                              
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Competition for guests from other hotels based upon brand
    affiliations, room rates offered including those via internet
    wholesalers and distributors, customer service, location and the
    condition and upkeep of each hotel in general and in relation to
    other hotels in their local market;
|
| |  | Adverse effects of general and local economic conditions;                                                                                                                                                                                                                                                    
|
| |  | Dependence on demand from business and leisure travelers, which
    may fluctuate and be seasonal;                                                                                                                                                                                                           
|
| |  | Increases in energy costs, airline fares, and other expenses
    related to travel, which may deter travel;                                                                                                                                                                                                  
|
| |  | Weather-related issues;                                                                                                                                                                                                                                                                                      
|
| |  | Impact of financial difficulties of the airline industry and
    potential reduction in airline service on the demand for our
    hotel rooms and the collectibility of our outstanding
    receivables from the airlines;                                                                                   
|
| |  | Increases in operating costs attributable to inflation and other
    factors, such as energy and labor costs at the hotels; and                                                                                                                                                                              
|
| |  | Overbuilding in the hotel industry, especially in individual
    markets.                                                                                                                                                                                                                                    

The need to make unexpected capital expenditures could
adversely affect our cash flow.


Hotel investments are generally illiquid, and we may not be
able to sell our hotels when it is economically advantageous to
do so.


6



---



##### 



Risks Related to Our
Operations


The profitability of our hotels depends on the performance of
the hotel management companies.


Our performance is dependent upon the performance of BMC


We are subject to conflicts of interest involving our
Chairman and Chief Executive Officer.


The covenants in our credit agreements may restrict our range
of operating activities, and we are subject to refinancing
risks.






We are subject to risks associated with development,
redevelopment and acquisitions of hotels.




| |   |                                                                           
| | - | --------------------------------------------------------------------------
| |  | the availability of acceptable financing;                                 
|
| |  | competition with other entities for investment opportunities;             
|
| |  | acquired properties failure to achieve anticipated
    operating results;
|
| |  | construction costs of a property exceeding original estimates;            

7



---



##### 





| |   |                                                                                                                     
| | - | --------------------------------------------------------------------------------------------------------------------
| |  | delays in construction and renovation projects;                                                                     
|
| |  | overruns with respect to the cost of improvements to bring
    acquired properties to the requisite standards; and  
|
| |  | the expenditure of funds on, and the devotion of management time
    to, transactions that may not come to fruition.

We are subject to the risks associated with investments
through our joint ventures.


Obligations imposed by our franchise agreements could affect
us adversely.


Our insurance may not be adequate to cover certain risks.


The costs of complying with laws and regulations could
adversely affect our cash flow.




8



---



##### 





We bear the risk of the timely completion of the Captiva
Villas project.


We may fail to qualify as a REIT and we may incur tax
liability as a result.




We may be subject to the adverse effect of REIT distribution
requirements.


Our ownership limit may discourage takeover attempts.




| |                                   
| | ----------------------------------
| | Item 1B. Unresolved Staff Comments



9



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##### 





| |                   
| | ------------------
| | Item 2. Properties



| |                     
| | --------------------
| | (a) Hotel Properties



|                                                                  |  |          |       |  |          |                     
|----------------------------------------------------------------- |  | -------- | ----- |  | -------- | --------------------
|                                                                  |  | Number   |       |  |         
|Property                                                          |  | of Rooms |       |  | Location
|                                                                  |  |          |       |  |         
|Doubletree Portland, Lloyd Center                                 |  |          | 476   |  |          | Portland, OR        
|Doubletree Sacramento                                             |  |          | 448   |  |          | Sacramento, CA      
|Doubletree Omaha Downtown                                         |  |          | 414   |  |          | Omaha, NE           
|Doubletree Hotel & Executive Meeting Center 
    Berkeley Marina |  |          | 369   |  |          | Berkeley, CA        
|Doubletree Boise Riverside                                        |  |          | 304   |  |          | Boise, ID           
|Doubletree Colorado Springs                                       |  |          | 299   |  |          | Colorado Springs, CO
|Doubletree San Antonio                                            |  |          | 290   |  |          | San Antonio, TX     
|Cleveland Airport Marriott                                        |  |          | 375   |  |          | Cleveland, OH       
|Buffalo Marriott                                                  |  |          | 356   |  |          | Buffalo, NY         
|Columbus North Marriott                                           |  |          | 300   |  |          | Columbus, OH        
|Meadowlands-Lyndhurst Courtyard by Marriott                       |  |          | 227   |  |          | Lyndhurst, NJ       
|High Point Radisson                                               |  |          | 251   |  |          | High Point, NC      
|Radisson Suite Beach Resort  Marco Island                        |  |          | 233   |  |          | Marco Island, FL    
|Radisson Hotel & Suites Kansas City 
    City Center             |  |          | 388   |  |          | Kansas City, MO     
|Holiday Inn Crabtree                                              |  |          | 176   |  |          | Raleigh, NC         
|Embassy Suites Southfield                                         |  |          | 239   |  |          | Southfield, MI      
|Melbourne Hilton Oceanfront                                       |  |          | 118   |  |          | Melbourne, FL       
|Best Western Fort Myers Island Gateway Hotel                      |  |          | 157   |  |          | Fort Myers, FL      
|Melbourne Suites Beach Resort                                     |  |          | 208   |  |          | Melbourne, FL       
|Pink Shell Beach Resort & Spa                                     |  |          | 178   |  |          | Fort Myers, FL      
|Banana Bay Resort & Marina  Marathon                             |  |          | 65    |  |          | Marathon, FL        
|                                                                  |  |          |       |  |         
|                                                                  |  |          | 5,871 |  |          |                     
|                                                                  |  |          |       |  |         



| |                 
| | ----------------
| | (b) Office Space





| |                          
| | -------------------------
| | Item 3. Legal Proceedings





Boykin Hotel Properties, L.P. vs.
Liberty Mutual Fire Insurance Company


10



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##### 











| |                                                                
| | ---------------------------------------------------------------
| | Item 4. Submission of Matters to a Vote of Security
    Holders



PART II




| |                                                                                                                             
| | ----------------------------------------------------------------------------------------------------------------------------
| | Item 5. Market for Registrants Common Equity,
    Related Shareholder Matters and Issuer Purchases of Equity
    Securities



| |                       
| | ----------------------
| | (a) Market Information



|                              |                |             |   |                    |  |                    |   |       |  |  |  |   | 
|----------------------------- | -------------- | ----------- | - | ------------------ |  | ------------------ | - | ----- |  |  |  | - | 
|                              |                | Price Range |   |                   
|                              |                |             |   | Cash Distributions
|                              |                | High        |   | Low                |  | Declared Per Share
|                              |                |             |   |                    |  |                   
|Year Ended December 31, 2004: |                |             |   |                    |  |                    |   |       |  |  |  |  
|                              | First Quarter  |             | $ | 9.86               |  |                    | $ | 9.03  |  |  |  |  | 
|                              | Second Quarter |             | $ | 9.52               |  |                    | $ | 7.00  |  |  |  |  | 
|                              | Third Quarter  |             | $ | 8.74               |  |                    | $ | 7.38  |  |  |  |  | 
|                              | Fourth Quarter |             | $ | 9.19               |  |                    | $ | 8.17  |  |  |  |  | 
|Year Ended December 31, 2005: |                |             |   |                    |  |                    |   |       |  |  |  |  
|                              | First Quarter  |             | $ | 9.76               |  |                    | $ | 8.83  |  |  |  |  | 
|                              | Second Quarter |             | $ | 14.10              |  |                    | $ | 9.36  |  |  |  |  | 
|                              | Third Quarter  |             | $ | 15.48              |  |                    | $ | 11.69 |  |  |  |  | 
|                              | Fourth Quarter |             | $ | 13.13              |  |                    | $ | 10.41 |  |  |  |  | 



| |                            
| | ---------------------------
| | (b) Shareholder Information







| |                                          
| | -----------------------------------------
| | (c) Dividend and Distribution Information



11



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##### 







| |                                                                           
| | --------------------------------------------------------------------------
| | (d) Securities Authorized for Issuance Under Equity
    Compensation Plans



|                                                           |       |                         |         |         |                      |                         |       |                         |  |  |         |         | 
|---------------------------------------------------------- | ----- | ----------------------- | ------- | ------- | -------------------- | ----------------------- | ----- | ----------------------- |  |  | ------- | ------- | 
|                                                           |       |                         |         |         |                      | Number of securities    |      
|                                                           |       |                         |         |         |                      | remaining available for |      
|                                                           |       |                         |         |         |                      | future issuance under   |      
|                                                           |       | Number of securities to |         |         | Weighted-average     |                         |       | equity compensation     | 
|                                                           |       | be issued upon exercise |         |         | exercise price of    |                         |       | plans (excluding        | 
|                                                           |       | of outstanding options, |         |         | outstanding options, |                         |       | securities reflected in | 
|                                                           |       | warrants and rights     |         |         | warrants and rights  |                         |       | column (a))             | 
|Plan category                                              |       | (a)                     |         |         | (b)                  |                         |       | (c)                     | 
|                                                           |       |                         |         |         |                      |                         |       |                         | 
|Equity compensation plans approved by security holders     |       |                         | 824,139 | *       |                      | $                       | 11.30 |                         |  |  | 492,149 |        
|Equity compensation plans not approved by security holders |       |                         | None    |         |                      |                         | None  |                         |  |  | None    |        
|                                                           |       |                         |         |         |                      |                         |       |                         | 
|                                                           | Total |                         |         | 824,139 |                      |                         | $     | 11.30                   |  |  |         | 492,149 | 
|                                                           |       |                         |         |         |                      |                         |       |                         | 






|  |                                                             
|- | ------------------------------------------------------------
|* | All 824,139 options are exercisable as of December 31, 2005.



| |                                     
| | ------------------------------------
| | (e) Sales of Unregistered Securities





| |                                                            
| | -----------------------------------------------------------
| | (f) Use of Proceeds from Sales of Registered
    Securities





| |                                                                               
| | ------------------------------------------------------------------------------
| | (g) Purchases of Equity Securities by the Issuer and
    Affiliated Purchasers





| |                                
| | -------------------------------
| | Item 6. Selected Financial Data





12



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##### 



BOYKIN LODGING COMPANY






|                |                                                       |                                                                                                                                             |   |        |         |   |   |        |         |   |      |        |         |      |   |        |         |   |   |         |         |  
|--------------- | ----------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------- | - | ------ | ------- | - | - | ------ | ------- | - | ---- | ------ | ------- | ---- | - | ------ | ------- | - | - | ------- | ------- | -
|                |                                                       | Year Ended December 31,                                                                                                                     |  
|                |                                                       | 2005                                                                                                                                        |   |        | 2004    |   |   | 2003   |         |   | 2002 |        |         | 2001 |  
|                |                                                       |                                                                                                                                             |   |        |         |   |   |        |         |   |      |        |         |      |  
|OPERATING DATA: |                                                       |                                                                                                                                             |   |        |         |   |   |        |         |   |      |        |         |      |   |        |         |   |   |        
|                |                                                       | Hotel, lease and other operating revenue                                                                                                    |   | $      | 204,485 |   |   | $      | 196,360 |   |      | $      | 176,685 |      |   | $      | 185,360 |   |   | $       | 50,567  |  
|                |                                                       | Revenues from condominium development and unit sales                                                                                        |   |        |        |   |   |        | 7,541   |   |      |        | 36,883  |      |   |        | 8,715   |   |   |         |        |  
|                |                                                       |                                                                                                                                             |   |        |         |   |   |        |         |   |      |        |         |      |  
|                |                                                       | Total revenues                                                                                                                              |   |        | 204,485 |   |   |        | 203,901 |   |      |        | 213,568 |      |   |        | 194,075 |   |   |         | 50,567  |  
|                |                                                       |                                                                                                                                             |   |        |         |   |   |        |         |   |      |        |         |      |  
|                |                                                       | Property taxes, insurance, hotel operations, general
    and other                                                                          |   |        | 175,717 |   |   |        | 168,270 |   |      |        | 153,102 |      |   |        | 148,691 |   |   |         | 13,828  |  
|                |                                                       | Cost of condominium development and unit sales                                                                                              |   |        |        |   |   |        | 5,509   |   |      |        | 24,645  |      |   |        | 6,474   |   |   |         |        |  
|                |                                                       | Real estate related depreciation and amortization                                                                                           |   |        | 22,291  |   |   |        | 22,217  |   |      |        | 24,067  |      |   |        | 21,398  |   |   |         | 20,404  |  
|                |                                                       | Impairment of real estate                                                                                                                   |   |        | 5,500   |   |   |        |        |   |      |        |        |      |   |        |        |   |   |         | 10,500  |  
|                |                                                       | Costs associated with termination of leases                                                                                                 |   |        |        |   |   |        |        |   |      |        |        |      |   |        |        |   |   |         | 14,575  |  
|                |                                                       |                                                                                                                                             |   |        |         |   |   |        |         |   |      |        |         |      |  
|                |                                                       | Operating income (loss)                                                                                                                     |   |        | 977     |   |   |        | 7,905   |   |      |        | 11,754  |      |   |        | 17,512  |   |   |         | (8,740  | )
|                |                                                       | Other income                                                                                                                                |   |        | 2       |   |   |        | 8       |   |      |        | 28      |      |   |        | 52      |   |   |         | 3       |  
|                |                                                       | Interest income                                                                                                                             |   |        | 1,106   |   |   |        | 377     |   |      |        | 597     |      |   |        | 123     |   |   |         | 303     |  
|                |                                                       | Interest expense                                                                                                                            |   |        | (11,586 | ) |   |        | (13,629 | ) |      |        | (14,923 | )    |   |        | (18,068 | ) |   |         | (19,639 | )
|                |                                                       | Amortization of deferred financing costs                                                                                                    |   |        | (1,540  | ) |   |        | (1,367  | ) |      |        | (1,906  | )    |   |        | (2,105  | ) |   |         | (1,129  | )
|                |                                                       | Federal income taxes                                                                                                                        |   |        | (75     | ) |   |        |        |   |      |        |        |      |   |        |        |   |   |         |        |  
|                |                                                       | Minority interest in (earnings) loss of joint ventures and
    operating partnership                                                        |   |        | (582    | ) |   |        | 1,845   |   |      |        | 2,025   |      |   |        | 1,175   |   |   |         | 2,521   |  
|                |                                                       | Equity in income (loss) of unconsolidated joint ventures
    including gain on sale                                                         |   |        | 11,343  |   |   |        | (814    | ) |      |        | (870    | )    |   |        | (2,040  | ) |   |         | 589     |  
|                |                                                       |                                                                                                                                             |   |        |         |   |   |        |         |   |      |        |         |      |  
|                |                                                       | Loss before gain (loss) on sale/disposal of assets,
    discontinued operations and cumulative effect of change in
    accounting principle |   |        | (355    | ) |   |        | (5,675  | ) |      |        | (3,295  | )    |   |        | (3,351  | ) |   |         | (26,092 | )
|                |                                                       | Gain (loss) on sale/disposal of assets                                                                                                      |   |        | 11,387  |   |   |        | 3,175   |   |      |        | 954     |      |   |        | (16     | ) |   |         | 240     |  
|                |                                                       |                                                                                                                                             |   |        |         |   |   |        |         |   |      |        |         |      |  
|                |                                                       | Income (loss) before discontinued operations and cumulative
    effect of change in accounting principle                                    |   |        | 11,032  |   |   |        | (2,500  | ) |      |        | (2,341  | )    |   |        | (3,367  | ) |   |         | (25,852 | )
|                |                                                       | Discontinued operations, net of minority interest                                                                                           |   |        | 18,690  |   |   |        | 2,340   |   |      |        | (1,085  | )    |   |        | 2,996   |   |   |         | (3,345  | )
|                |                                                       |                                                                                                                                             |   |        |         |   |   |        |         |   |      |        |         |      |  
|                |                                                       | Income (loss) before cumulative effect of change in
    accounting principle                                                                |   |        | 29,722  |   |   |        | (160    | ) |      |        | (3,426  | )    |   |        | (371    | ) |   |         | (29,197 | )
|                |                                                       | Cumulative effect of change in accounting principle, net of
    minority interest                                                           |   |        |        |   |   |        |        |   |      |        |        |      |   |        |        |   |   |         | (373    | )
|                |                                                       |                                                                                                                                             |   |        |         |   |   |        |         |   |      |        |         |      |  
|                |                                                       | Net income (loss)                                                                                                                           |   |        | 29,722  |   |   |        | (160    | ) |      |        | (3,426  | )    |   |        | (371    | ) |   |         | (29,570 | )
|                |                                                       |                                                                                                                                             |   |        |         |   |   |        |         |   |      |        |         |      |  
|                |                                                       | Preferred dividends                                                                                                                         |   |        | (4,751  | ) |   |        | (4,751  | ) |      |        | (4,751  | )    |   |        | (1,109  | ) |   |         |        |  
|                |                                                       |                                                                                                                                             |   |        |         |   |   |        |         |   |      |        |         |      |  
|                | Net income (loss) attributable to common shareholders |                                                                                                                                             | $ | 24,971 |         |   | $ | (4,911 | )       |   | $    | (8,177 | )       |      | $ | (1,480 | )       |   | $ | (29,570 | )      
|                |                                                       |                                                                                                                                             |   |        |         |   |   |        |         |   |      |        |         |      |  

13



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##### 



|                               |                                                                                                                                                       |                         |   |         |        |  |   |          |        |   |      |         |        |      |   |         |        |   |   |         |        |  
|------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------- | - | ------- | ------ |  | - | -------- | ------ | - | ---- | ------- | ------ | ---- | - | ------- | ------ | - | - | ------- | ------ | -
|                               |                                                                                                                                                       | Year Ended December 31, |  
|                               |                                                                                                                                                       | 2005                    |   |         | 2004   |  |   | 2003     |        |   | 2002 |         |        | 2001 |  
|                               |                                                                                                                                                       |                         |   |         |        |  |   |          |        |   |      |         |        |      |  
|EARNINGS PER SHARE:            |                                                                                                                                                       |                         |   |         |        |  |   |          |        |   |      |         |        |      |   |         |        |   |   |        
|                               | Net income (loss) attributable to common shareholders
    before discontinued operations and cumulative effect of change
    in accounting principle: |                         |   |         |        |  |   |          |        |   |      |         |        |      |   |         |        |   |   |         |       
|                               |                                                                                                                                                       | Basic                   |   | $       | 0.36   |  |   | $        | (0.42  | ) |      | $       | (0.41  | )    |   | $       | (0.26  | ) |   | $       | (1.51  | )
|                               |                                                                                                                                                       | Diluted                 |   | $       | 0.35   |  |   | $        | (0.42  | ) |      | $       | (0.41  | )    |   | $       | (0.26  | ) |   | $       | (1.51  | )
|                               | Discontinued operations:                                                                                                                              |                         |   |         |        |  |   |          |        |   |      |         |        |      |   |         |        |   |   |         |       
|                               |                                                                                                                                                       | Basic                   |   | $       | 1.06   |  |   | $        | 0.13   |   |      | $       | (0.06  | )    |   | $       | 0.17   |   |   | $       | (0.19  | )
|                               |                                                                                                                                                       | Diluted                 |   | $       | 1.04   |  |   | $        | 0.13   |   |      | $       | (0.06  | )    |   | $       | 0.17   |   |   | $       | (0.19  | )
|                               | Net income (loss) attributable to common shareholders
    before cumulative effect of change in accounting principle:                                 |                         |   |         |        |  |   |          |        |   |      |         |        |      |   |         |        |   |   |         |       
|                               |                                                                                                                                                       | Basic                   |   | $       | 1.42   |  |   | $        | (0.28  | ) |      | $       | (0.47  | )    |   | $       | (0.09  | ) |   | $       | (1.70  | )
|                               |                                                                                                                                                       | Diluted                 |   | $       | 1.40   |  |   | $        | (0.28  | ) |      | $       | (0.47  | )    |   | $       | (0.09  | ) |   | $       | (1.70  | )
|                               | Net income (loss) attributable to common shareholders:                                                                                                |                         |   |         |        |  |   |          |        |   |      |         |        |      |   |         |        |   |   |         |       
|                               |                                                                                                                                                       | Basic                   |   | $       | 1.42   |  |   | $        | (0.28  | ) |      | $       | (0.47  | )    |   | $       | (0.09  | ) |   | $       | (1.72  | )
|                               |                                                                                                                                                       | Diluted                 |   | $       | 1.40   |  |   | $        | (0.28  | ) |      | $       | (0.47  | )    |   | $       | (0.09  | ) |   | $       | (1.72  | )
|                               | Weighted average number of common shares outstanding:                                                                                                 |                         |   |         |        |  |   |          |        |   |      |         |        |      |   |         |        |   |   |         |       
|                               |                                                                                                                                                       | Basic                   |   |         | 17,567 |  |   |          | 17,426 |   |      |         | 17,336 |      |   |         | 17,248 |   |   |         | 17,176 |  
|                               |                                                                                                                                                       | Diluted                 |   |         | 17,887 |  |   |          | 17,553 |   |      |         | 17,470 |      |   |         | 17,383 |   |   |         | 17,281 |  
|HISTORICAL BALANCE SHEET DATA: |                                                                                                                                                       |                         |   |         |        |  |   |          |        |   |      |         |        |      |   |         |        |   |   |        
|                               | Investment in hotel properties, net                                                                                                                   |                         | $ | 375,117 |        |  | $ | 383,360  |        |   | $    | 381,320 |        |      | $ | 346,445 |        |   | $ | 369,328 |       
|                               | Assets related to discontinued operations, net                                                                                                        |                         |   |        |        |  |   | 29,423   |        |   |      | 112,964 |        |      |   | 149,766 |        |   |   | 152,956 |       
|                               | Total assets                                                                                                                                          |                         |   | 447,805 |        |  |   | 477,380  |        |   |      | 591,292 |        |      |   | 575,531 |        |   |   | 559,218 |       
|                               | Total debt                                                                                                                                            |                         |   | 138,529 |        |  |   | 199,985  |        |   |      | 282,019 |        |      |   | 241,082 |        |   |   | 285,226 |       
|                               | Liabilities of discontinued operations                                                                                                                |                         |   |        |        |  |   | 2,369    |        |   |      | 22,682  |        |      |   | 43,697  |        |   |   | 38,037  |       
|                               | Minority interest                                                                                                                                     |                         |   | 14,723  |        |  |   | 10,038   |        |   |      | 11,495  |        |      |   | 14,202  |        |   |   | 15,821  |       
|                               | Shareholders equity                                                                                                                                  |                         |   | 254,550 |        |  |   | 227,448  |        |   |      | 231,541 |        |      |   | 240,291 |        |   |   | 202,646 |       
|OTHER DATA:                    |                                                                                                                                                       |                         |   |         |        |  |   |          |        |   |      |         |        |      |   |         |        |   |   |        
|                               | Net cash provided by operating activities                                                                                                             |                         | $ | 25,378  |        |  | $ | 40,297   |        |   | $    | 4,024   |        |      | $ | 43,257  |        |   | $ | 36,432  |       
|                               | Net cash provided by (used in) investing activities                                                                                                   |                         | $ | 46,879  |        |  | $ | 65,870   |        |   | $    | (25,634 | )      |      | $ | (16,054 | )      |   | $ | (17,187 | )     
|                               | Net cash provided by (used in) financing activities                                                                                                   |                         | $ | (69,488 | )      |  | $ | (106,659 | )      |   | $    | 10,170  |        |      | $ | (5,360  | )      |   | $ | (19,810 | )     
|                               | Cash dividends declared  common shares                                                                                                               |                         |   |        |        |  |   |         |        |   | $    | 3,174   |        |      | $ | 6,297   |        |   | $ | 19,030  |       
|                               | Weighted average number of common shares and units outstanding:                                                                                       |                         |   |         |        |  |   |          |        |   |      |         |        |      |   |         |        |   |   |         |       
|                               |                                                                                                                                                       | Basic                   |   |         | 20,285 |  |   |          | 20,144 |   |      |         | 20,055 |      |   |         | 19,966 |   |   |         | 18,467 |  
|                               |                                                                                                                                                       | Diluted                 |   |         | 20,605 |  |   |          | 20,271 |   |      |         | 20,188 |      |   |         | 20,101 |   |   |         | 18,572 |  

14



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##### 





| |                                                                                                  
| | -------------------------------------------------------------------------------------------------
| | Item 7. Managements Discussion and Analysis
    of Financial Condition and Results of Operations



| |         
| | --------
| | Overview









| |                             
| | ----------------------------
| | Critical Accounting Policies





| |   |                                                                                                                                                                                                                                                                                                                                 
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Investment in Hotel Properties  Hotel
    properties are stated at cost, net of any impairment charges,
    and are depreciated using the straight-line method over
    estimated useful lives ranging from ten to 35 years for
    buildings and improvements and three to 20 years for
    furniture, fixtures and equipment.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We review our hotel properties for impairment whenever events or
    changes in circumstances indicate the carrying value of the
    hotel properties may not be recoverable. Events or circumstances
    that may cause a review include, but are not limited to, adverse
    changes in the demand for lodging at the properties due to
    declining national or local economic conditions, new hotel
    construction in markets where the hotels are located or changes
    in the expected holding period of the property. When such
    conditions exist, management performs an analysis to determine
    if the estimated undiscounted future cash flows from operations
    and the proceeds from the ultimate disposition of a hotel
    property are equal to or exceed its carrying value. If the
    estimated undiscounted future cash flows are less than the
    carrying amount of the asset, an adjustment to reduce the
    carrying amount to the related hotel propertys estimated
    fair market value is recorded and an impairment loss recognized.                                                                                                                                                    
|
| | In 2005, we recorded an impairment charge of $5.5 million
    related to a property for which we reduced our intended holding
    period. In 2004 and 2003, we recorded impairment charges of
    $4.3 million and $2.8 million related to the Ramada
    Inn Bellevue Center and Holiday Inn Minneapolis West,
    respectively, as a result of changes in managements
    intended holding periods of the properties. Pursuant to the
    terms of the joint venture which owned the Holiday Inn
    Minneapolis West, over 40% of the charge was allocable to the
    joint ventures minority interest partner. As of
    December 31, 2005, we did not believe that there were any
    factors or circumstances indicating impairment of any other of
    our investments in hotel properties.                                                                                                                                                                                                                                                                                                                                                                                                                              
|
| | We estimate the fair market values of our properties through a
    combination of comparable property sales, replacement cost and
    cash flow analysis taking into account each propertys
    expected cash flow generated from operations, holding period and
    ultimate proceeds from disposition. In projecting the expected
    cash flows from operations of the asset, we base our estimates
    on future projected earnings before interest expense, income
    taxes, depreciation and amortization, or EBITDA, and deduct
    expected capital expenditure requirements. We then apply growth
    assumptions to project these amounts over the expected holding
    period of the asset. Our growth assumptions are based on
    estimated changes in room rates and expenses and the demand for
    lodging at our properties, as impacted by local and national
    economic conditions and estimated or known future new hotel
    supply. The estimated proceeds from disposition are judgmentally
    determined based on a combination of anticipated cash flow in
    the year of disposition, terminal capitalization rate, ratio of
    selling price to gross hotel revenues and selling price per room.
|
| | If actual conditions differ from those in our assumptions, the
    actual results of each assets future operations and fair
    market value could be significantly different from the estimated
    results and value used                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

15



---



##### 



| |                                                                                                                           
| | --------------------------------------------------------------------------------------------------------------------------
| | in our analysis. Our operating results are also subject to the
    risks set forth under Items 1A and 7 of this Form 10-K.



| |   |                    
| | - | -------------------
| |  | Revenue recognition



| |                                                                                                                                                                                                                                                                                                                                                       
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Hotel revenues Hotel revenues, including
    room, food, beverage and other hotel revenues, are recognized as
    the related services are delivered. Ongoing credit evaluations
    are performed and an allowance for potential credit losses is
    provided against the portion of accounts receivable that is
    estimated to be uncollectible.
|
| | Lease revenue Percentage lease revenue is
    based upon the room, food and beverage and other revenues of our
    hotels.                                                                                                                                                                                                                           
|
| | Hotel Condominium revenues                                                                                                                                                                                                                                                                                                                           



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Percentage of completion In 2003, we began
    recognizing revenue related to the White Sand Villas project
    under the percentage of completion method. Condominium project
    revenues and expenses are recognized on the percentage of
    completion method upon satisfaction of the following criteria:
    (a) construction is determined to be beyond a preliminary
    stage, (b) the buyer is not entitled to a refund except for
    nondelivery of the unit, (c) sufficient units are under
    binding contract to assure the entire property will not revert
    to rental property, (d) sales prices have been determined
    to be collectible, and (e) aggregate sales proceeds and
    costs can be reasonably estimated. In 2003 and 2004, revenue was
    recognized under percentage of completion accounting as the
    White Sand Villas project had satisfied the criteria outlined
    above. Percentage of completion accounting involves the use of
    estimates for the relation of revenues on sold units to total
    revenues of the project and for total cost of the project. The
    sales of all of the 91 available units closed in 2004, and the
    proceeds had been collected; therefore, all project revenues
    were recognized by December 31, 2004. White Sand Villas
    unit owners contract with the resort to allow their unused room
    nights to be rented out by the resort as hotel rooms. At
    December 31, 2005, the Captiva Villas project was in the
    preliminary stages.
|
| | Sales of condominium units  During 2001, we
    completed a renovation of a 60-unit tower at the Pink Shell
    Beach Resort. These renovated units were sold as Sanibel View
    Villas Condominiums; the revenue related to the sales was
    recorded upon closing of the sales. As of December 31,
    2003, we had closed on the sale of all 59 of the available units
    within the tower and all of the unit owners had contracted with
    us to allow their unused room nights to be rented out as hotel
    rooms.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|
| | The related gross rental income generated by the units put back
    to the resort by contract is recorded by the resort and included
    in hotel revenues within the consolidated financial statements.
    Under the terms of their contracts, a percentage of the gross
    rental income of each unit is to be remitted to the respective
    unit owner. The remitted amounts are recorded as expenses within
    the property taxes, insurance and other line of the consolidated
    financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Insurance Recoveries  Since 2003, we have had
    several significant open insurance claims for water infiltration
    remediation and hurricane damage.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|
| | We record insurance recoveries in an amount equal to the losses
    recorded by the property being covered as the losses are
    recognized until such time as those recoveries are deemed not
    probable or reasonably estimable. Amounts in excess of those
    losses are recognized to the extent that cash has been received
    or a settlement has been reached and the amount is not
    considered to be an advance on future losses. Business
    interruption recoveries are reflected as other hotel revenues
    within the consolidated financial statements. Property insurance
    recoveries are reflected as gain on sale/disposal of assets
    within the consolidated financial statements. Fees due to
    service providers in connection with property insurance
    recoveries are reflected as reductions in the gain recognized.
    Fees due related to business interruption insurance recoveries
    are reflected as corporate general and administrative expenses
    within the consolidated financial statements.
|
| | As other property insurance claims are filed for repair work
    done at the properties, we record estimated recoveries to offset
    the costs incurred, less appropriate deductibles.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              



| |   |                                                                                                                                                                                                                                                                                                                                     
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Income Tax Valuation Allowance. Upon the effective date
    of the establishment of Boykins taxable REIT subsidiaries
    (TRSs), the subsidiaries became subject to federal
    and state income taxes. Boykins TRSs account for income
    taxes in accordance with the provisions of SFAS No. 109,
    Accounting for Income

16



---



##### 



| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Taxes. As of December 31, 2005, Boykin had a deferred
    tax asset of approximately $14.3 million, prior to any
    valuation allowance, related to the assumption of the retained
    deficit of Westboy as well as the operating losses of the TRSs
    and their subsidiaries. Boykin has recorded a 100% valuation
    allowance against this asset due to the uncertainty of
    realization of the deferred tax asset thus no provision or
    benefit from income taxes is reflected in the accompanying
    consolidated statements of operations.





| |                    
| | -------------------
| | Financial Condition



| |                                                
| | -----------------------------------------------
| | December 31, 2005 Compared to December 31, 2004













| |                      
| | ---------------------
| | Results of Operations





| |                                                                        
| | -----------------------------------------------------------------------
| | Results of Operations Year Ended December 31, 2005
    Compared to 2004





| |   |                                                                                                                                  
| | - | ---------------------------------------------------------------------------------------------------------------------------------
| |  | Hotel revenues increased $8.3 million from
    $196.0 million in 2004 to $204.3 million in 2005 as a
    result of the following:



| |   |                                                                                                                                                                                                                                                                                                                                                                              
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | An approximate 6.8% increase in revenue per available room
    (RevPAR) from 2004 for the 17 consolidated hotels
    which were open and operated under the TRS structure for both
    full years of 2005 and 2004. The increase in RevPAR was the
    result of an increase in occupancy levels of 1.9 points combined
    with a 3.7% increase in the average daily rate;
|
| |  | An $8.0 million decrease in revenue contribution from the
    two Melbourne, Florida properties as a result of their closure
    after Hurricane Frances struck in early September, 2004; and                                                                                                                                                                                
|
| |  | The inclusion of approximately $6.7 million in 2005 versus
    $2.3 million in 2004 of business interruption insurance
    recoveries within other hotel revenues related to (a) a
    remediation project at a property which left rooms out of
    service during 2003, 2004 and 2005 and (b) the closure of
    the two Melbourne properties.                             

17



---



##### 





| |   |                                                                                                                                                                                                                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Revenues from condominium development and unit sales totaled
    $7.5 million in 2004 as a result of the completion of the
    White Sand Villas development project during 2004. There was no
    activity during 2005 which resulted in the recognition of
    revenue related to condominium development and unit sales.





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | In 2005, we incurred total hotel operating expenses, which
    include hotel departmental expenses, indirect expenses and
    management fees, of $147.4 million. The gross operating
    profit of these hotels for the periods owned and operated under
    a TRS totaled 27.9% in 2005 versus 26.0% for 2004. A significant
    component of the increased margin is the increase in the
    recognition of business interruption insurance recoveries during
    2004 within hotel revenues. Excluding the business interruption
    amounts from 2005 and 2004 and the operating results of the two
    Melbourne properties from 2004, hotel operating profit margins
    for the portfolio showed an increase to 26.1% from 25.1% in
    2004. Another contributor to the margin increase is the
    stabilization of the Pink Shell Beach Resort & Spa upon
    completion of the White Sand Villas condominium tower, as well
    as the contribution from the additional rooms generated by the
    development project.





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Total expenses related to property taxes, insurance and other of
    $16.7 million recorded for 2005 increased $2.2 million
    over 2004. The increase is primarily due to increased
    contractual payments to owners of the condominiums at the Pink
    Shell for use of their units as hotel rooms as a result of the
    sales of the White Sand Villas tower in 2004. All unit owners in
    each building contractually put their units back to the resort
    for use as hotel rooms. Also contributing to this increase are
    increases in insurance costs due to rising insurance rates.





| |   |                                                                                                                                      
| | - | -------------------------------------------------------------------------------------------------------------------------------------
| |  | Total expenses recorded for 2005 were $11.7 million
    compared with 2004 expenses of $8.8 million as a result of
    the following:



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Approximately $1.6 million of increases in compensation
    expense which were the result of compensation plans and
    agreements which were contingent or valued based upon our common
    share price. Approximately $0.2 million of this increase
    was due to the Directors Deferred Compensation Plan as the
    common share price at December 31, 2005 was higher than the
    common share price at December 31, 2004, and approximately
    $1.4 million was due to the vesting and payment of share
    and option awards under an existing employment agreement as our
    common share price reached certain pre-established thresholds;
|
| |  | Our 2005 REIT taxable income was in excess of the dividends paid
    during 2005 including the preferred dividend paid during
    January 2006. We expect to designate additional 2006
    dividends as distributions made to meet our 2005 requirement and
    have recorded an excise tax of $0.4 million during 2005
    related to this anticipated timing; and                                                                                                                                                                                                                                                                                    
|
| |  | Increases in certain non-recurring professional fees and other
    general corporate expenses.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         





| |   |                                                                                                                                                                          
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Total expenses recorded for 2004 were $5.5 million. As the
    White Sand Villas project was completed during 2004, there were
    no similar costs recorded during 2005.





| |   |                                                                                                                                     
| | - | ------------------------------------------------------------------------------------------------------------------------------------
| |  | During 2005, we reduced the intended holding period for one of
    our properties resulting in a $5.5 million impairment
    charge.





| |   |                                                                                                                                                                                                            
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Interest income increased approximately $0.7 million from
    $0.4 million in 2004 to $1.1 million in 2005 as a
    result of higher amounts of cash and restricted cash on hand
    throughout the period.





| |   |                                                                                                                                                                                                                                                                                                                              
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Interest expense decreased approximately $2.0 million in
    2005 from 2004 primarily as a result of an approximate 31%
    decline in our weighted average outstanding debt during 2005.
    The decline was due to the application of proceeds from property
    sales to reduce borrowings, the scheduled repayment of the

18



---



##### 



| |  |                                                                                                                                                                                                                                                                           
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | original $108.0 million term loan as well as the scheduled
    amortization of the $130.0 million term loan. Partially
    offsetting the savings from lower debt levels are increases in
    the overall weighted average interest rate on variable debt
    instruments.





| |   |                                                                                                                                                                                                                                                 
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Equity in income increased to $11.3 million for 2005 versus
    equity in the losses of unconsolidated joint ventures of
    $0.8 million in 2004 primarily as a result of the
    recognition of our share of the gain on the sale of Hotel 71.





| |   |                                                                                                                                                                                                                                                                                          
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Gain on sale/disposal of assets increased to $11.4 million
    in 2005 from $3.2 million in 2004 primarily as a result of
    additional property insurance recoveries received in excess of
    the net book value of the disposed assets related to water
    infiltration remediation.





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Please refer to Note 4 of Boykin Lodging Companys
    Notes to Consolidated Financial Statements included within this
    Annual Report on Form 10-K for a summary of discontinued
    operations. Discontinued operations reflect the operations of
    the properties disposed of during 2005 prior to their
    sale/disposal. Included in 2005 discontinued operations is the
    net gain on sale/disposal of the three properties of
    $19.3 million.





| |                                                                        
| | -----------------------------------------------------------------------
| | Results of Operations Year Ended December 31, 2004
    Compared to 2003





| |   |                                                                                                                                   
| | - | ----------------------------------------------------------------------------------------------------------------------------------
| |  | Hotel revenues increased $19.6 million from
    $176.4 million in 2003 to $196.0 million in 2004 as a
    result of the following:



| |   |                                                                                                                                                                                                                                                                                                                                                                                        
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | An approximate 4.3% increase in RevPAR from 2003 for the 16
    consolidated hotels which were owned, open and operated under
    the TRS structure for both full years of 2004 and 2003 and owned
    as of December 31, 2005. The increase in RevPAR was the
    result of an increase in occupancy levels of 2.8 points combined
    with a 0.2% decrease in the average daily rate;
|
| |  | An increase of $10.8 million related to the inclusion of
    the hotel revenue of the Marco Island property for a full year
    in 2004 versus a partial year in 2003, as it was acquired in
    August 2003;                                                                                                                                                                          
|
| |  | A $3.3 million decrease in revenue contribution from the
    two Melbourne, Florida properties as a result of their closure
    after Hurricane Frances struck in early September; and                                                                                                                                                                                                 
|
| |  | The inclusion of approximately $2.3 million of business
    interruption insurance recoveries within other hotel revenues
    related to (a) a remediation project at a property which
    left rooms out of service during 2003 and 2004 and (b) the
    closure of the two Melbourne properties.                                                                                     



| |   |                                                                                                                                                                                                                                                                                             
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Revenues from condominium development and unit sales decreased
    to $7.5 million in 2004 versus $36.9 million in 2003
    as a result of the completion of the White Sand Villas
    development project in 2004 and the completion of sales of
    Sanibel View Villas units during 2003.





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | In 2004, we incurred total hotel operating expenses, which
    include hotel departmental expenses, indirect expenses and
    management fees, of $145.0 million. The gross operating
    profit of these hotels for the periods owned and operated under
    a TRS totaled 26.0% in 2004 versus 25.6% for 2003. The hotels
    experienced decreases in general and administrative expenses as
    a percentage of revenues, offset by increases in franchise fees.





| |   |                                                                                                                                                                                                                                                                                                                                                   
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Total expenses related to property taxes, insurance and other of
    $14.4 million recorded for 2004 increased $0.6 million
    over 2003. The increase is primarily due to increased
    contractual payments to owners of the condominiums at the Pink
    Shell for use of their units as hotel rooms as a result of the
    sellout of Sanibel

19



---



##### 



| |  |                                                                                                                                                                                                                                                                                                                                                                              
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | View Villas in 2003 and the completion and sales of the White
    Sand Villas tower in 2004. All unit owners in each building
    contractually put their units back to the resort for use as
    hotel rooms. In addition, a full year of tax and insurance
    expense related to the Marco Island property are recorded in
    2004, as opposed to a partial year in 2003.





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                     
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Total expenses recorded for 2004 were $8.8 million compared
    with 2003 expenses of $8.1 million primarily as a result of
    additional staffing and third party services in maintaining
    compliance with new federal laws and regulations addressing
    corporate governance issues, including the Sarbanes-Oxley Act of
    2002, and with the new listing requirements of the New York
    Stock Exchange.





| |   |                                                                                           
| | - | ------------------------------------------------------------------------------------------
| |  | Total expenses recorded for 2004 were $5.5 million compared
    with $24.6 million in 2003



| |   |                                                                                                                                                                          
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Amounts expensed under the percentage of completion method of
    accounting for the White Sand Villas totaled $5.5 million
    during 2004 versus $21.6 million in 2003.
|
| |  | 2003 costs include $3.0 million related to the sale of 19
    Sanibel View Villas units.                                                                                 





| |   |                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------
| |  | Depreciation and amortization decreased approximately
    $1.9 million in 2004 from 2003 as a result of:



| |   |                                                                                                                                                                                                            
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The inclusion of $3.4 million of accelerated depreciation
    related to pending demolition and removal of two existing
    buildings at the Pink Shell to make way for the new Captiva
    Villas in 2003,
|
| |  | An additional $0.5 million of depreciation in 2004 related
    to a full year of ownership of the Marco Island property, and                                                                               
|
| |  | Increases in depreciation related to recent capital expenditures.                                                                                                                                          





| |   |                                                                                            
| | - | -------------------------------------------------------------------------------------------
| |  | Interest expense decreased approximately $1.3 million in
    2004 from 2003 as a result of:



| |   |                                                                                                                                                                                                                                                                                          
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | A decrease in the weighted average interest rate due to the
    expiration of a previously existing swap in 2003 which fixed
    $83.0 million of our debt at 7.32% during the first six
    months of 2003; and                                                                         
|
| |  | An approximate 4% decline in our weighted average outstanding
    debt during 2004. The decline was due to the application of
    proceeds from property sales to reduce borrowings on the credit
    facility as well as the scheduled amortization of the
    $130.0 million term loan.





| |   |                                                                                                                                                                                                                                                                                                                                                                                    
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Amortization of deferred financing costs decreased approximately
    $0.5 million to $1.4 million in 2004 primarily as a
    result of the replacement of the previously existing credit
    facility and a $45.0 million term loan with a new credit
    facility in October 2003. The new facility had
    approximately $2.0 million less of deferred costs to be
    amortized.





| |   |                                                                                                                                                                                
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Gain on sale/disposal of assets increased to $3.2 million
    in 2004 from $1.0 million in 2003 primarily as a result of
    additional property insurance recoveries received.





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Please refer to Note 4 of Boykin Lodging Companys
    Notes to Consolidated Financial Statements included within this
    Annual Report on Form 10-K for a summary of discontinued
    operations. Discontinued operations reflect the operations of
    the properties disposed of during 2005 and 2004 prior to their
    sale/disposal. Included in 2004 discontinued operations is a
    $4.3 million impairment charge related to the Ramada Inn
    Bellevue Center and $2.1 million of minority interest
    expense related to the joint venture partner as a result of the
    sale of Marriotts Hunt Valley Inn. Also included in 2004
    discontinued operations is the net gain on sale/disposal of the
    five properties of $8.4 million.



20



---



##### 





| |                                
| | -------------------------------
| | Liquidity and Capital Resources





| |   |                                                                                                                                                                   
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Competition for guests from other hotels;                                                                                                                         
|
| |  | Adverse effects of general and local economic conditions;                                                                                                         
|
| |  | Dependence on demand from business and leisure travelers, which
    may be seasonal and which may be adversely impacted by health
    and safety-related concerns;
|
| |  | Increases in energy costs, airline fares, and other expenses
    related to travel, which may deter traveling;                                                    
|
| |  | Impact of the financial difficulties of the airline industry;                                                                                                     
|
| |  | Increases in operating costs related to inflation and other
    factors, including wages, benefits, insurance and energy;                                         
|
| |  | Weather-related issues;                                                                                                                                           
|
| |  | Overbuilding in the hotel industry, especially in particular
    markets; and                                                                                     
|
| |  | Actual or threatened acts of terrorism and actions taken against
    terrorists that cause public concern about travel safety.                                    





| |   |                                                               
| | - | --------------------------------------------------------------
| |  | Competition from other condominium projects;                  
|
| |  | Construction delays;                                          
|
| |  | Reliance on contractors and subcontractors;                   
|
| |  | Construction cost overruns; and                               
|
| |  | The ability of the condominium purchasers to secure financing.













21



---



##### 

















| |                               
| | ------------------------------
| | Off Balance Sheet Arrangements





| |           
| | ----------
| | Cash Flows



22



---



##### 





| |                                              
| | ---------------------------------------------
| | Tabular Disclosure of Contractual Obligations



|                                                                                       |  |                        |         |           |        |   |        |           |           |   |           |  |  |         |        |  |  |   |         | 
|-------------------------------------------------------------------------------------- |  | ---------------------- | ------- | --------- | ------ | - | ------ | --------- | --------- | - | --------- |  |  | ------- | ------ |  |  | - | ------- | 
|                                                                                       |  | Payments due by period |        
|                                                                                       |  |                        |         | Less than |        |   |        |           | More than |  
|Contractual Obligations                                                                |  | Total                  |         |           | 1 year |   |        | 1-3 years |           |   | 3-5 years |  |  | 5 years |       
|                                                                                       |  |                        |         |           |        |   |        |           |           |   |           |  |  |         |       
|Long-Term Debt Obligations                                                             |  | $                      | 98,529  |           |        | $ | 4,166  |           |           | $ | 9,236     |  |  | $       | 10,639 |  |  | $ | 74,488  | 
|Capital Lease Obligations                                                              |  | $                      | 0       |           |        | $ | 0      |           |           | $ | 0         |  |  | $       | 0      |  |  | $ | 0       | 
|Operating Lease Obligations                                                            |  | $                      | 29,025  |           |        | $ | 1,283  |           |           | $ | 1,542     |  |  | $       | 1,150  |  |  | $ | 25,050  | 
|Purchase Obligations                                                                   |  | $                      | 5,790   |           |        | $ | 5,070  |           |           | $ | 465       |  |  | $       | 198    |  |  | $ | 57      | 
|Other Long-Term Liabilities Reflected on the Registrants
    Balance Sheet under GAAP |  | $                      | 5,977   |           |        | $ | 117    |           |           | $ | 292       |  |  | $       | 383    |  |  | $ | 5,185   | 
|                                                                                       |  |                        |         |           |        |   |        |           |           |   |           |  |  |         |       
|Total                                                                                  |  | $                      | 139,321 |           |        | $ | 10,636 |           |           | $ | 11,535    |  |  | $       | 12,370 |  |  | $ | 104,780 | 
|                                                                                       |  |                        |         |           |        |   |        |           |           |   |           |  |  |         |       







| |          
| | ---------
| | Inflation







| |            
| | -----------
| | Seasonality





| |                                       
| | --------------------------------------
| | Competition and Other Economic Factors







23



---



##### 





| |                              
| | -----------------------------
| | New Accounting Pronouncements





|                                                                              |         |           |        |      |           |   |        |       |  
|----------------------------------------------------------------------------- | ------- | --------- | ------ | ---- | --------- | - | ------ | ----- | -
|Year Ended December 31,                                                       |        
|                                                                              |         | 2005      |        |      | 2004      |  
|                                                                              |         | Pro Forma |        |      | Pro Forma |  
|                                                                              |         |           |        |      |           |  
|Net income (loss) attributable to common shareholders                         |         | $         | 24,971 |      |           | $ | (4,911 | )    
|Stock-based employee compensation expense                                     |         |           |       |      |           |   | (126   | )    
|                                                                              |         |           |        |      |           |  
|Proforma net income (loss) attributable to
    common shareholders            |         | $         | 24,971 |      |           | $ | (5,037 | )    
|                                                                              |         |           |        |      |           |  
|Proforma net income (loss) attributable to common
    shareholders per share: |         |           |        |      |           |   |        |      
|                                                                              | Basic   |           | $      | 1.42 |           |   | $      | (0.29 | )
|                                                                              | Diluted |           | $      | 1.40 |           |   | $      | (0.29 | )





24



---



##### 



04-5).






| |                            
| | ---------------------------
| | Non-GAAP Financial Measures







| |    
| | ---
| | FFO





25



---



##### 





|                                                                                          |  |      |         |   |      |   |         |      |  |   |        |  
|----------------------------------------------------------------------------------------- |  | ---- | ------- | - | ---- | - | ------- | ---- |  | - | ------ | -
|                                                                                          |  | 2005 |         |   | 2004 |   |         | 2003 | 
|                                                                                          |  |      |         |   |      |   |         |      | 
|Net income (loss)                                                                         |  | $    | 29,722  |   |      | $ | (160    | )    |  | $ | (3,426 | )
|Minority interest                                                                         |  |      | 5,565   |   |      |   | 803     |      |  |   | (3,319 | )
|Real estate related depreciation and amortization                                         |  |      | 22,291  |   |      |   | 22,217  |      |  |   | 24,067 |  
|Real estate related depreciation and amortization included in
    discontinued operations |  |      | 745     |   |      |   | 4,402   |      |  |   | 7,650  |  
|Gain on sale/disposal of assets                                                           |  |      | (34,103 | ) |      |   | (13,083 | )    |  |   | (1,724 | )
|(Gain) loss on sale/disposal of individual assets included in
    discontinued operations |  |      | (366    | ) |      |   | 3       |      |  |   | (550   | )
|Equity in (income) loss of unconsolidated joint ventures
    including gain on sale       |  |      | (11,343 | ) |      |   | 814     |      |  |   | 870    |  
|FFO adjustment related to joint ventures                                                  |  |      | 55      |   |      |   | 1,016   |      |  |   | 2,324  |  
|Preferred dividends declared                                                              |  |      | (4,751  | ) |      |   | (4,751  | )    |  |   | (4,751 | )
|                                                                                          |  |      |         |   |      |   |         |      | 
|Funds from operations after preferred dividends                                           |  |      | 7,815   |   |      |   | 11,261  |      |  |   | 21,141 |  
|                                                                                          |  |      |         |   |      |   |         |      | 
|Less: Funds from operations related to minority interest                                  |  |      | 1,047   |   |      |   | 1,519   |      |  |   | 2,866  |  
|                                                                                          |  |      |         |   |      |   |         |      | 
|Funds from operations attributable to common shareholders                                 |  | $    | 6,768   |   |      | $ | 9,742   |      |  | $ | 18,275 |  
|                                                                                          |  |      |         |   |      |   |         |      | 





| |       
| | ------
| | EBITDA





|                 |                                                                |        |     |        |        |   |       |        |        |   |        |        |        | 
|---------------- | -------------------------------------------------------------- | ------ | --- | ------ | ------ | - | ----- | ------ | ------ | - | ------ | ------ | ------ | 
|                 |                                                                | 2005   |     |        | 2004   |   |       | 2003   |       
|                 |                                                                |        |     |        |        |   |       |        |       
|Operating income |                                                                | $      | 977 |        |        | $ | 7,905 |        |        | $ | 11,754 |       
|                 | Other income                                                   |        |     | 2      |        |   |       | 8      |        |   |        | 28     |       
|                 | Interest income                                                |        |     | 1,106  |        |   |       | 377    |        |   |        | 597    |       
|                 | Real estate related depreciation and amortization              |        |     | 22,291 |        |   |       | 22,217 |        |   |        | 24,067 |       
|                 | EBITDA attributable to discontinued operations                 |        |     | 1,336  |        |   |       | (228   | )      |   |        | 5,458  |       
|                 | Companys share of EBITDA of unconsolidated
    joint ventures |        |     | 1,226  |        |   |       | 2,713  |        |   |        | 2,667  |       
|                 | EBITDA applicable to joint venture minority interest           |        |     | (192   | )      |   |       | (185   | )      |   |        | 1,058  |       
|                 |                                                                |        |     |        |        |   |       |        |       
|                 |                                                                | EBITDA |     | $      | 26,746 |   |       | $      | 32,807 |   |        | $      | 45,629 | 
|                 |                                                                |        |     |        |        |   |       |        |       





| |                                                                        
| | -----------------------------------------------------------------------
| | Item 7A. Quantitative and Qualitative Disclosures
    About Market Risk



| |                   
| | ------------------
| | Interest Rate Risk



26



---



##### 















| |                                                                    
| | -------------------------------------------------------------------
| | Item 8. Consolidated Financial Statements and
    Supplemental Data





| |                                                                                                 
| | ------------------------------------------------------------------------------------------------
| | Item 9. Changes in and Disagreements with
    Accountants on Accounting and Financial Disclosure







27



---



##### 







| |                                 
| | --------------------------------
| | Item 9A. Controls and Procedures



| |                                                 
| | ------------------------------------------------
| | Evaluation of Disclosure Controls and Procedures





| |                                                                     
| | --------------------------------------------------------------------
| | Managements Report on Internal Control Over Financial
    Reporting

Internal Control 
Integrated Framework




| |                                                     
| | ----------------------------------------------------
| | Changes in Internal Control Over Financial Reporting





| |                           
| | --------------------------
| | Item 9B. Other Information



28



---



##### 



PART III




| |                                                                
| | ---------------------------------------------------------------
| | Item 10. Directors and Executive Officers of the
    Registrant





| |                                
| | -------------------------------
| | Item 11. Executive Compensation





| |                                                                            
| | ---------------------------------------------------------------------------
| | Item 12. Security Ownership of Certain Beneficial
    Owners and Management





| |                                                            
| | -----------------------------------------------------------
| | Item 13. Certain Relationships and Related
    Transactions





| |                                                
| | -----------------------------------------------
| | Item 14. Principal Accounting Fees and Services



29



---



##### 



PART IV




| |                                                 
| | ------------------------------------------------
| | Item 15. Exhibits, Financial Statement Schedules

(a) See
page F-1 for an index to financial statements and required
schedules.


|         |       |     |  |                                                                                                                                                                                         
|-------- | ----- | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibits |       |     | 
|         |       |     | 
|         | 3.1   | (a) |  | Amended and Restated Articles of Incorporation, as amended                                                                                                                              
|         | 3.2   | (b) |  | Code of Regulations                                                                                                                                                                     
|         | 4.1   | (b) |  | Specimen Share Certificate                                                                                                                                                              
|         | 4.2   | (a) |  | Dividend Reinvestment and Optional Share Purchase Plan                                                                                                                                  
|         | 4.3   | (e) |  | Shareholder Rights Agreement, dated as of May 25, 1999 between
    Boykin Lodging Company and National City Bank as rights agent                                                        
|         | 4.3a  | (f) |  | Amendment to Shareholder Rights Agreement, dated as of December
    31, 2001                                                                                                            
|         | 10.1  | (h) |  | Third Amended and Restated Agreement of Limited Partnership of
    Boykin Hotel Properties, L.P.                                                                                        
|         | 10.2  | (b) |  | Form of Registration Rights Agreement                                                                                                                                                   
|         | 10.3  | (b) |  | Long-Term Incentive Plan*                                                                                                                                                               
|         | 10.4  | (b) |  | Directors Deferred Compensation Plan*                                                                                                                                                  
|         | 10.5  | (b) |  | Employment Agreement between the Company and Robert W. Boykin*                                                                                                                          
|         | 10.6  | (b) |  | Form of Percentage Lease                                                                                                                                                                
|         | 10.7  | (b) |  | Intercompany Convertible Note                                                                                                                                                           
|         | 10.8  | (b) |  | Agreements with General Partners of the Contributed Partnerships                                                                                                                        
|         | 10.9  | (b) |  | Form of Noncompetition Agreement                                                                                                                                                        
|         | 10.10 | (b) |  | Alignment of Interests Agreement                                                                                                                                                        
|         | 10.11 | (c) |  | Description of Employment Arrangement between the Company and
    Richard C. Conti*                                                                                                     
|         | 10.12 | (d) |  | Limited Liability Company Agreement of Boykin/AEW LLC dated as
    of February 1, 1999                                                                                                  
|         | 10.13 | (d) |  | Stock Purchase Option Agreement by and among Boykin Lodging
    Company, Boykin Hotel Properties, L.P. and AEW Partners III,
    L.P. dated as of February 1, 1999                      
|         | 10.14 | (d) |  | Warrant to Purchase Class A Cumulative Preferred Stock, Series
    1999-A of Boykin Lodging Company dated as of
    February 1, 1999                                                    
|         | 10.15 | (d) |  | Registration Rights Agreement by and among Boykin Lodging
    Company and AEW Partners III, L.P. dated as of
    February 1, 1999                                                       
|         | 10.16 | (f) |  | Master Contribution Agreement between BMC, JABO LLC, the Company
    and the Partnership dated as of December 31, 2001                                                                  
|         | 10.17 | (f) |  | Form of Hotel Management Agreement*                                                                                                                                                     
|         | 10.18 | (f) |  | Registration Rights Agreement between the Company and JABO LLC
    dated January 1, 2002                                                                                                
|         | 10.19 | (i) |  | Description of Employment Arrangement between the Company and
    Shereen P. Jones*                                                                                                     
|         | 10.20 | (j) |  | Hotel Purchase and Sale Agreement; Hotel 71 Chicago, Illinois,
    By and Between Boykin Chicago L.L.C., as Seller and the Falor
    Companies, Inc., as Purchaser                      
|         | 10.21 | (j) |  | Modification Letter - Stock Purchase Option Agreement by and
    among Boykin Lodging Company, Boykin Hotel Properties, L.P. and
    AEW Partners III, L.P. dated as of February 1, 1999
|         | 10.22 | (j) |  | Modification of Employment Agreement between the Company and
    Robert W. Boykin*                                                                                                      
|         | 10.23 | (k) |  | Boykin Lodging Company 2005 Long-Term Incentive Plan*                                                                                                                                   
|         | 10.24 | (l) |  | Second Amendment to Employment Agreement between the Company and
    Robert W. Boykin*                                                                                                  
|         | 10.25 | (l) |  | Amended and Restated COO Severance Plan*                                                                                                                                                
|         | 10.26 | (l) |  | Amended and Restated CFO/CIO Severance Plan*                                                                                                                                            
|         | 10.27 | (l) |  | Amended and Restated Key Employee Severance Plan (Sr. Vice
    Presidents and Vice Presidents)*                                                                                         
|         | 12    |     |  | Statement re Computation of Ratios                                                                                                                                                      
|         | 16.1  | (g) |  | Letter of Deloitte & Touche LLP required by Item 304 of
    Regulation S-K                                                                                                              
|         | 21    |     |  | Subsidiaries of the Registrant                                                                                                                                                          
|         | 23.1  |     |  | Consent of Independent Registered Public Accounting Firm                                                                                                                                
|         | 23.2  |     |  | Consent of Independent Registered Public Accounting Firm                                                                                                                                
|         | 31.1  |     |  | Certification Pursuant to Rule 13a-14(a), in Accordance with
    Section 302 of the Sarbanes-Oxley Act of 2002                                                                          
|         | 31.2  |     |  | Certification Pursuant to Rule 13a-14(a), in Accordance with
    Section 302 of the Sarbanes-Oxley Act of 2002                                                                          
|         | 32.1  |     |  | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted
    Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                              
|         | 32.2  |     |  | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted
    Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                              




|    |  |                                                                                                                                                                                                                                                                     
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Incorporated by reference from Boykins Form 10-Q for
    the quarter ended June 30, 1999.                                                                                                                                                                          
|(b) |  | Incorporated by reference from Amendment No. 3 to
    Boykins Registration Statement on Form S-11
    (Registration No. 333-6341) (the
    Form S-11) filed on October 24, 1996. Each
    of the above exhibits has the same exhibit number in the
    Form S-11.
|(c) |  | Incorporated by reference from Boykins Form 10-Q for
    the quarter ended June 30, 1998.                                                                                                                                                                          

30



---



##### 



|    |  |                                                                                                                        
|--- |  | -----------------------------------------------------------------------------------------------------------------------
|(d) |  | Incorporated by reference from Boykins Form 10-Q for
    the quarter ended March 31, 1999.                            
|(e) |  | Incorporated by reference as Exhibit 1 from Boykins
    Registration Statement on Form 8-A filed on June 10,
    1999.
|(f) |  | Incorporated by reference from Boykins Form 8-K filed
    on January 14, 2002.                                        
|(g) |  | Incorporated by reference from Boykins Form 8-K filed
    on April 20, 2004.                                          
|(h) |  | Incorporated by reference from Boykins Form 8-K filed
    on October 4, 2002.                                         
|(i) |  | Incorporated by reference from Boykins Form 10-K for
    the year ended December 31, 2002.                            
|(j) |  | Incorporated by reference from Boykins Form 10-K for
    the year ended December 31, 2004.                            
|(k) |  | Incorporated by reference from Boykins Form 8-K filed
    on May 26, 2005.                                            
|(l) |  | Incorporated by reference from Boykins Form 8-K filed
    on June 7, 2005.                                            
|*   |  | Management contract or compensatory plan or arrangement.                                                               

31



---



##### 










INDEX TO FINANCIAL STATEMENTS


|                                                                                                                                             |  |  |      | 
|-------------------------------------------------------------------------------------------------------------------------------------------- |  |  | ---- | 
|BOYKIN LODGING COMPANY:                                                                                                                      |  |  |      | 
|Reports of Independent Registered Public
    Accounting Firms                                                                                |  |  | F-2  | 
|Consolidated Balance Sheets as of
    December 31, 2005 and 2004                                                                             |  |  | F-5  | 
|Consolidated Statements of Operations for
    the Years Ended December 31, 2005, 2004 and 2003                                               |  |  | F-6  | 
|Consolidated Statements of
    Shareholders Equity and Comprehensive Income (Loss) for
    the Years Ended December 31, 2005, 2004 and 2003 |  |  | F-7  | 
|Consolidated Statements of Cash Flows for
    the Years Ended December 31, 2005, 2004 and 2003                                               |  |  | F-8  | 
|Notes to Consolidated Financial
    Statements                                                                                               |  |  | F-9  | 
|Schedule III  Real Estate
    and Accumulated Depreciation as of December 31, 2005                                                          |  |  | F-30 | 
|                                                                                                                                            
|BOYKIN/ AEW, LLC AND SUBSIDIARIES:                                                                                                           |  |  |      | 
|Reports of Independent Registered Public
    Accounting Firms                                                                                |  |  | F-32 | 
|Consolidated Balance Sheets as of
    December 31, 2005 and 2004                                                                             |  |  | F-34 | 
|Consolidated Statements of Operations for
    the Years Ended December 31, 2005, 2004 and 2003                                               |  |  | F-35 | 
|Consolidated Statements of Members
    Equity for the Years Ended December 31, 2005, 2004 and
    2003                                      |  |  | F-36 | 
|Consolidated Statements of Cash Flows for
    the Years Ended December 31, 2005, 2004 and 2003                                               |  |  | F-37 | 
|Notes to Consolidated Financial
    Statements                                                                                               |  |  | F-38 | 
|Schedule III  Real Estate
    and Accumulated Depreciation as of December 31, 2005                                                          |  |  | F-41 | 



F-1



---



##### 






REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


















Grant Thornton LLP






F-2



---



##### 



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
















Grant Thornton LLP






F-3



---



##### 



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM














Deloitte &
Touche LLP






F-4



---



##### 



BOYKIN LODGING COMPANY











|                                                                                                                               |                                                                                                                                                                                           |                            |         |          |         |   |         |          |         | 
|------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------- | ------- | -------- | ------- | - | ------- | -------- | ------- | 
|                                                                                                                               |                                                                                                                                                                                           | 2005                       |         |          | 2004    |  
|                                                                                                                               |                                                                                                                                                                                           |                            |         |          |         |  
|ASSETS                                                                                                                        
|Investment in hotel properties                                                                                                 |                                                                                                                                                                                           | $                          | 512,703 |          |         | $ | 503,802 |         
|                                                                                                                               | Accumulated depreciation                                                                                                                                                                  |                            |         | (137,586 | )       |   |         | (120,442 | )      
|                                                                                                                               |                                                                                                                                                                                           |                            |         |          |         |  
|Investment in hotel properties, net                                                                                            |                                                                                                                                                                                           |                            | 375,117 |          |         |   | 383,360 |         
|Cash and cash equivalents                                                                                                      |                                                                                                                                                                                           |                            | 16,290  |          |         |   | 13,521  |         
|Restricted cash                                                                                                                |                                                                                                                                                                                           |                            | 31,699  |          |         |   | 13,022  |         
|Accounts receivable, net of allowance for doubtful accounts of
    $356 and $85 as of December 31, 2005 and 2004, respectively |                                                                                                                                                                                           |                            | 7,307   |          |         |   | 11,690  |         
|Inventories                                                                                                                    |                                                                                                                                                                                           |                            | 1,297   |          |         |   | 1,278   |         
|Deferred financing costs and other, net                                                                                        |                                                                                                                                                                                           |                            | 1,946   |          |         |   | 1,990   |         
|Investment in unconsolidated joint ventures                                                                                    |                                                                                                                                                                                           |                            | 1,410   |          |         |   | 14,048  |         
|Other assets                                                                                                                   |                                                                                                                                                                                           |                            | 12,739  |          |         |   | 9,048   |         
|Assets related to discontinued operations, net                                                                                 |                                                                                                                                                                                           |                            |        |          |         |   | 29,423  |         
|                                                                                                                               |                                                                                                                                                                                           |                            |         |          |         |  
|                                                                                                                               |                                                                                                                                                                                           | $                          | 447,805 |          |         | $ | 477,380 |         
|                                                                                                                               |                                                                                                                                                                                           |                            |         |          |         |  
|                                                                                                                              
|LIABILITIES AND SHAREHOLDERS EQUITY                                                                                          
|Borrowings against credit facility                                                                                             |                                                                                                                                                                                           | $                          | 40,000  |          |         | $ | 6,446   |         
|Term notes payable                                                                                                             |                                                                                                                                                                                           |                            | 98,529  |          |         |   | 193,539 |         
|Accounts payable and accrued expenses                                                                                          |                                                                                                                                                                                           |                            | 37,670  |          |         |   | 35,282  |         
|Accounts payable to related party                                                                                              |                                                                                                                                                                                           |                            | 1,145   |          |         |   | 1,070   |         
|Dividends/distributions payable                                                                                                |                                                                                                                                                                                           |                            | 1,188   |          |         |   | 1,188   |         
|Minority interest in joint ventures                                                                                            |                                                                                                                                                                                           |                            | 777     |          |         |   | (24     | )       
|Minority interest in operating partnership                                                                                     |                                                                                                                                                                                           |                            | 13,946  |          |         |   | 10,062  |         
|Liabilities related to discontinued operations                                                                                 |                                                                                                                                                                                           |                            |        |          |         |   | 2,369   |         
|SHAREHOLDERS EQUITY:                                                                                                          |                                                                                                                                                                                           |                            |         |          |         |   |         |         
|                                                                                                                               | Preferred shares, without par value; 10,000,000 shares
    authorized; 181,000 shares issued and outstanding as of
    December 31, 2005 and 2004 (liquidation preference of
    $45,250) |                            |         |         |         |   |         |         |        
|                                                                                                                               | Common shares, without par value; 40,000,000 shares
    authorized; 17,594,081 and 17,450,314 shares outstanding at
    December 31, 2005 and 2004, respectively                          |                            |         |         |         |   |         |         |        
|                                                                                                                               | Additional paid-in capital                                                                                                                                                                |                            |         | 361,309  |         |   |         | 358,688  |        
|                                                                                                                               | Distributions in excess of income                                                                                                                                                         |                            |         | (104,261 | )       |   |         | (129,232 | )      
|                                                                                                                               | Unearned compensation  restricted shares                                                                                                                                                 |                            |         | (2,498   | )       |   |         | (2,008   | )      
|                                                                                                                               |                                                                                                                                                                                           |                            |         |          |         |  
|                                                                                                                               |                                                                                                                                                                                           | Total shareholders equity |         |          | 254,550 |   |         |          | 227,448 | 
|                                                                                                                               |                                                                                                                                                                                           |                            |         |          |         |  
|                                                                                                                               |                                                                                                                                                                                           | $                          | 447,805 |          |         | $ | 477,380 |         
|                                                                                                                               |                                                                                                                                                                                           |                            |         |          |         |  



F-5



---



##### 



BOYKIN LODGING COMPANY











|                                                                                                   |                                                                                                                                                                                                       |                                  |        |         |         |   |        |         |         |   |        |         |         | 
|-------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------- | ------ | ------- | ------- | - | ------ | ------- | ------- | - | ------ | ------- | ------- | 
|                                                                                                   |                                                                                                                                                                                                       | 2005                             |        |         | 2004    |   |        | 2003    |        
|                                                                                                   |                                                                                                                                                                                                       |                                  |        |         |         |   |        |         |        
|Revenues:                                                                                          |                                                                                                                                                                                                       |                                  |        |         |         |   |        |         |         |   |        |        
|                                                                                                   | Hotel revenues:                                                                                                                                                                                       |                                  |        |         |         |   |        |         |         |   |        |         |        
|                                                                                                   |                                                                                                                                                                                                       | Rooms                            |        | $       | 128,856 |   |        | $       | 127,506 |   |        | $       | 115,812 | 
|                                                                                                   |                                                                                                                                                                                                       | Food and beverage                |        |         | 59,968  |   |        |         | 57,790  |   |        |         | 53,342  | 
|                                                                                                   |                                                                                                                                                                                                       | Other                            |        |         | 15,463  |   |        |         | 10,684  |   |        |         | 7,220   | 
|                                                                                                   |                                                                                                                                                                                                       |                                  |        |         |         |   |        |         |        
|                                                                                                   | Total hotel revenues                                                                                                                                                                                  |                                  |        | 204,287 |         |   |        | 195,980 |         |   |        | 176,374 |        
|                                                                                                   | Other operating revenue                                                                                                                                                                               |                                  |        | 198     |         |   |        | 380     |         |   |        | 311     |        
|                                                                                                   | Revenues from condominium development and unit sales                                                                                                                                                  |                                  |        |        |         |   |        | 7,541   |         |   |        | 36,883  |        
|                                                                                                   |                                                                                                                                                                                                       |                                  |        |         |         |   |        |         |        
|                                                                                                   |                                                                                                                                                                                                       | Total revenues                   |        |         | 204,485 |   |        |         | 203,901 |   |        |         | 213,568 | 
|                                                                                                   |                                                                                                                                                                                                       |                                  |        |         |         |   |        |         |        
|Expenses:                                                                                          |                                                                                                                                                                                                       |                                  |        |         |         |   |        |         |         |   |        |        
|                                                                                                   | Hotel operating expenses:                                                                                                                                                                             |                                  |        |         |         |   |        |         |         |   |        |         |        
|                                                                                                   |                                                                                                                                                                                                       | Rooms                            |        |         | 32,296  |   |        |         | 32,061  |   |        |         | 28,981  | 
|                                                                                                   |                                                                                                                                                                                                       | Food and beverage                |        |         | 40,577  |   |        |         | 39,309  |   |        |         | 36,917  | 
|                                                                                                   |                                                                                                                                                                                                       | Other direct                     |        |         | 5,729   |   |        |         | 5,563   |   |        |         | 4,406   | 
|                                                                                                   |                                                                                                                                                                                                       | Indirect                         |        |         | 63,136  |   |        |         | 62,661  |   |        |         | 56,115  | 
|                                                                                                   |                                                                                                                                                                                                       | Management fees to related party |        |         | 5,635   |   |        |         | 5,455   |   |        |         | 3,976   | 
|                                                                                                   |                                                                                                                                                                                                       | Management fees  other          |        |         |        |   |        |         |        |   |        |         | 746     | 
|                                                                                                   |                                                                                                                                                                                                       |                                  |        |         |         |   |        |         |        
|                                                                                                   | Total hotel operating expenses                                                                                                                                                                        |                                  |        | 147,373 |         |   |        | 145,049 |         |   |        | 131,141 |        
|                                                                                                   | Property taxes, insurance and other                                                                                                                                                                   |                                  |        | 16,680  |         |   |        | 14,442  |         |   |        | 13,864  |        
|                                                                                                   | Cost of condominium development and unit sales                                                                                                                                                        |                                  |        |        |         |   |        | 5,509   |         |   |        | 24,645  |        
|                                                                                                   | Real estate related depreciation and amortization                                                                                                                                                     |                                  |        | 22,291  |         |   |        | 22,217  |         |   |        | 24,067  |        
|                                                                                                   | Corporate general and administrative                                                                                                                                                                  |                                  |        | 11,664  |         |   |        | 8,779   |         |   |        | 8,097   |        
|                                                                                                   | Impairment of real estate                                                                                                                                                                             |                                  |        | 5,500   |         |   |        |        |         |   |        |        |        
|                                                                                                   |                                                                                                                                                                                                       |                                  |        |         |         |   |        |         |        
|                                                                                                   |                                                                                                                                                                                                       | Total operating expenses         |        |         | 203,508 |   |        |         | 195,996 |   |        |         | 201,814 | 
|                                                                                                   |                                                                                                                                                                                                       |                                  |        |         |         |   |        |         |        
|                                                                                                   |                                                                                                                                                                                                       | Operating income                 |        |         | 977     |   |        |         | 7,905   |   |        |         | 11,754  | 
|                                                                                                   |                                                                                                                                                                                                       |                                  |        |         |         |   |        |         |        
|                                                                                                   | Interest income                                                                                                                                                                                       |                                  |        | 1,106   |         |   |        | 377     |         |   |        | 597     |        
|                                                                                                   | Other income                                                                                                                                                                                          |                                  |        | 2       |         |   |        | 8       |         |   |        | 28      |        
|                                                                                                   | Interest expense                                                                                                                                                                                      |                                  |        | (11,586 | )       |   |        | (13,629 | )       |   |        | (14,923 | )      
|                                                                                                   | Amortization of deferred financing costs                                                                                                                                                              |                                  |        | (1,540  | )       |   |        | (1,367  | )       |   |        | (1,906  | )      
|                                                                                                   | Federal income taxes                                                                                                                                                                                  |                                  |        | (75     | )       |   |        |        |         |   |        |        |        
|                                                                                                   | Minority interest in loss of joint ventures                                                                                                                                                           |                                  |        | 38      |         |   |        |        |         |   |        |        |        
|                                                                                                   | Minority interest in (income) loss of operating partnership                                                                                                                                           |                                  |        | (620    | )       |   |        | 1,845   |         |   |        | 2,025   |        
|                                                                                                   | Equity in income (loss) of unconsolidated joint ventures
    including gain on sale                                                                                                                   |                                  |        | 11,343  |         |   |        | (814    | )       |   |        | (870    | )      
|                                                                                                   |                                                                                                                                                                                                       |                                  |        |         |         |   |        |         |        
|Loss before gain on sale/disposal of assets and discontinued
    operations                        |                                                                                                                                                                                                       |                                  | (355   | )       |         |   | (5,675 | )       |         |   | (3,295 | )      
|                                                                                                   | Gain on sale/disposal of assets                                                                                                                                                                       |                                  |        | 11,387  |         |   |        | 3,175   |         |   |        | 954     |        
|                                                                                                   |                                                                                                                                                                                                       |                                  |        |         |         |   |        |         |        
|Income (loss) before discontinued operations                                                       |                                                                                                                                                                                                       |                                  | 11,032 |         |         |   | (2,500 | )       |         |   | (2,341 | )      
|                                                                                                   | Discontinued operations, net of operating partnership minority
    interest income (expense) of $(3,264), $(412) and $192, for
    the years ended December 31, 2005, 2004 and 2003,
    respectively |                                  |        | 18,690  |         |   |        | 2,340   |         |   |        | (1,085  | )      
|                                                                                                   |                                                                                                                                                                                                       |                                  |        |         |         |   |        |         |        
|Net income (loss)                                                                                  |                                                                                                                                                                                                       | $                                | 29,722 |         |         | $ | (160   | )       |         | $ | (3,426 | )      
|                                                                                                   |                                                                                                                                                                                                       |                                  |        |         |         |   |        |         |        
|                                                                                                   | Preferred dividends                                                                                                                                                                                   |                                  |        | (4,751  | )       |   |        | (4,751  | )       |   |        | (4,751  | )      
|                                                                                                   |                                                                                                                                                                                                       |                                  |        |         |         |   |        |         |        
|Net income (loss) attributable to common shareholders                                              |                                                                                                                                                                                                       | $                                | 24,971 |         |         | $ | (4,911 | )       |         | $ | (8,177 | )      
|                                                                                                   |                                                                                                                                                                                                       |                                  |        |         |         |   |        |         |        
|Net income (loss) per share attributable to common shareholders
    before discontinued operations |                                                                                                                                                                                                       |                                  |        |         |         |   |        |         |         |   |        |        
|                                                                                                   | Basic                                                                                                                                                                                                 |                                  | $      | 0.36    |         |   | $      | (0.42   | )       |   | $      | (0.41   | )      
|                                                                                                   | Diluted                                                                                                                                                                                               |                                  | $      | 0.35    |         |   | $      | (0.42   | )       |   | $      | (0.41   | )      
|Discontinued operations per share                                                                  |                                                                                                                                                                                                       |                                  |        |         |         |   |        |         |         |   |        |        
|                                                                                                   | Basic                                                                                                                                                                                                 |                                  | $      | 1.06    |         |   | $      | 0.13    |         |   | $      | (0.06   | )      
|                                                                                                   | Diluted                                                                                                                                                                                               |                                  | $      | 1.04    |         |   | $      | 0.13    |         |   | $      | (0.06   | )      
|Net income (loss) per share attributable to common
    shareholders(a)                             |                                                                                                                                                                                                       |                                  |        |         |         |   |        |         |         |   |        |        
|                                                                                                   | Basic                                                                                                                                                                                                 |                                  | $      | 1.42    |         |   | $      | (0.28   | )       |   | $      | (0.47   | )      
|                                                                                                   | Diluted                                                                                                                                                                                               |                                  | $      | 1.40    |         |   | $      | (0.28   | )       |   | $      | (0.47   | )      
|Weighted average number of common shares outstanding                                               |                                                                                                                                                                                                       |                                  |        |         |         |   |        |         |         |   |        |        
|                                                                                                   | Basic                                                                                                                                                                                                 |                                  |        | 17,567  |         |   |        | 17,426  |         |   |        | 17,336  |        
|                                                                                                   | Diluted                                                                                                                                                                                               |                                  |        | 17,887  |         |   |        | 17,553  |         |   |        | 17,470  |        






|    |  |                                              
|--- |  | ---------------------------------------------
|(a) |  | Per share amounts may not add due to rounding



F-6



---



##### 



BOYKIN LODGING COMPANY













|                             |                                                           |                                             |         |   |        |            |            |         |               |   |              |       |   |               |          |        |              |   |        |       |       |   |        |        |   |   |         |        |        |  
|---------------------------- | --------------------------------------------------------- | ------------------------------------------- | ------- | - | ------ | ---------- | ---------- | ------- | ------------- | - | ------------ | ----- | - | ------------- | -------- | ------ | ------------ | - | ------ | ----- | ----- | - | ------ | ------ | - | - | ------- | ------ | ------ | -
|                             |                                                           |                                             |         |   |        | Additional |            |         | Distributions |   |              | Other |   |               |          |        |             
|                             |                                                           | Preferred                                   |         |   | Common |            |            | Paid-In |               |   | In Excess of |       |   | Comprehensive |          |        | Unearned     |   |        |      
|                             |                                                           | Shares                                      |         |   | Shares |            |            | Capital |               |   | Income       |       |   | Gain/(Loss)   |          |        | Compensation |   |        | Total |      
|                             |                                                           |                                             |         |   |        |            |            |         |               |   |              |       |   |               |          |        |              |   |        |       |      
|Balance at January 1, 2003   |                                                           |                                             | 181,000 |   |        |            | 17,276,407 |         |               | $ | 356,228      |       |   | $             | (112,970 | )      |              | $ | (1,773 | )     |       | $ | (1,194 | )      |   | $ | 240,291 |       
|                             | Issuance of common shares, net of offering expenses of $4 |                                             |         |  |        |            |            | 77,528  |               |   |              | 1,143 |   |               |          |       |              |   |        |      |       |   |        | (990   | ) |   |         | 153    |       
|                             | Common share purchases for treasury                       |                                             |         |  |        |            |            | (9,555  | )             |   |              | (81   | ) |               |          |       |              |   |        |      |       |   |        |       |   |   |         | (81    | )     
|                             | Dividends declared                                        |                                             |         |   |        |            |            |         |               |   |              |       |   |               |          |        |              |   |        |       |       |   |        |        |   |   |         |        |       
|                             |                                                           |  $0.18 per common share                    |         |   |       |            |            |         |              |   |              |       |  |               |          |        | (3,174       | ) |        |       |      |   |        |        |  |   |         |        | (3,174 | )
|                             |                                                           |  $26.25 per Class A preferred share        |         |   |       |            |            |         |              |   |              |       |  |               |          |        | (4,751       | ) |        |       |      |   |        |        |  |   |         |        | (4,751 | )
|                             | Amortization of unearned compensation                     |                                             |         |  |        |            |            |        |               |   |              |      |   |               |          |       |              |   |        |      |       |   |        | 756    |   |   |         | 756    |       
|                             | Net loss                                                  |                                             |         |  |        |            |            |        |               |   |              |      |   |               |          | (3,426 | )            |   |        |      |       |   |        |       |   |   |         | (3,426 | )     
|                             | Other comprehensive income                                |                                             |         |   |        |            |            |         |               |   |              |       |   |               |          |        |              |   |        |       |       |   |        |        |   |   |         |        |       
|                             |                                                           |  net unrealized gain on interest rate swap |         |   |       |            |            |         |              |   |              |       |  |               |          |        |             |   |        |       | 1,773 |   |        |        |  |   |         |        | 1,773  |  
|                             |                                                           |                                             |         |   |        |            |            |         |               |   |              |       |   |               |          |        |              |   |        |       |      
|                             | Total comprehensive loss                                  |                                             |         |  |        |            |            |        |               |   |              |      |   |               |          |       |              |   |        |      |       |   |        |       |   |   |         | (1,653 | )     
|                             |                                                           |                                             |         |   |        |            |            |         |               |   |              |       |   |               |          |        |              |   |        |       |      
|Balance at December 31, 2003 |                                                           |                                             | 181,000 |   |        |            | 17,344,380 |         |               |   | 357,290      |       |   |               | (124,321 | )      |              |   |       |       |       |   | (1,428 | )      |   |   | 231,541 |       
|                             | Vesting of restricted common share grants                 |                                             |         |  |        |            |            | 128,745 |               |   |              |      |   |               |          |       |              |   |        |      |       |   |        |       |   |   |         |       |       
|                             | Issuance of restricted common share grants                |                                             |         |  |        |            |            |        |               |   |              | 1,589 |   |               |          |       |              |   |        |      |       |   |        | (1,589 | ) |   |         |       |       
|                             | Common share purchases for treasury                       |                                             |         |  |        |            |            | (22,811 | )             |   |              | (191  | ) |               |          |       |              |   |        |      |       |   |        |       |   |   |         | (191   | )     
|                             | Dividends declared                                        |                                             |         |   |        |            |            |         |               |   |              |       |   |               |          |        |              |   |        |       |       |   |        |        |   |   |         |        |       
|                             |                                                           |  $26.25 per Class A preferred share        |         |   |       |            |            |         |              |   |              |       |  |               |          |        | (4,751       | ) |        |       |      |   |        |        |  |   |         |        | (4,751 | )
|                             | Amortization of unearned compensation                     |                                             |         |  |        |            |            |        |               |   |              |      |   |               |          |       |              |   |        |      |       |   |        | 1,009  |   |   |         | 1,009  |       
|                             | Net loss                                                  |                                             |         |  |        |            |            |        |               |   |              |      |   |               |          | (160   | )            |   |        |      |       |   |        |       |   |   |         | (160   | )     
|                             |                                                           |                                             |         |   |        |            |            |         |               |   |              |       |   |               |          |        |              |   |        |       |      
|Balance at December 31, 2004 |                                                           |                                             | 181,000 |   |        |            | 17,450,314 |         |               |   | 358,688      |       |   |               | (129,232 | )      |              |   |       |       |       |   | (2,008 | )      |   |   | 227,448 |       
|                             | Vesting of restricted common share grants                 |                                             |         |  |        |            |            | 144,357 |               |   |              |      |   |               |          |       |              |   |        |      |       |   |        |       |   |   |         |       |       
|                             | Issuance of restricted common share grants                |                                             |         |  |        |            |            |        |               |   |              | 2,028 |   |               |          |       |              |   |        |      |       |   |        | (2,028 | ) |   |         |       |       
|                             | Common share purchases for treasury                       |                                             |         |  |        |            |            | (15,590 | )             |   |              | (142  | ) |               |          |       |              |   |        |      |       |   |        |       |   |   |         | (142   | )     
|                             | Exercise of stock options                                 |                                             |         |  |        |            |            | 15,000  |               |   |              | 118   |   |               |          |       |              |   |        |      |       |   |        |       |   |   |         | 118    |       
|                             | Vesting of variable stock options                         |                                             |         |  |        |            |            |        |               |   |              | 617   |   |               |          |       |              |   |        |      |       |   |        |       |   |   |         | 617    |       
|                             | Dividends declared                                        |                                             |         |   |        |            |            |         |               |   |              |       |   |               |          |        |              |   |        |       |       |   |        |        |   |   |         |        |       
|                             |                                                           |  $26.25 per Class A preferred share        |         |   |       |            |            |         |              |   |              |       |  |               |          |        | (4,751       | ) |        |       |      |   |        |        |  |   |         |        | (4,751 | )
|                             | Amortization of unearned compensation                     |                                             |         |  |        |            |            |        |               |   |              |      |   |               |          |       |              |   |        |      |       |   |        | 1,538  |   |   |         | 1,538  |       
|                             | Net income                                                |                                             |         |  |        |            |            |        |               |   |              |      |   |               |          | 29,722 |              |   |        |      |       |   |        |       |   |   |         | 29,722 |       
|                             |                                                           |                                             |         |   |        |            |            |         |               |   |              |       |   |               |          |        |              |   |        |       |      
|Balance at December 31, 2005 |                                                           |                                             | 181,000 |   |        |            | 17,594,081 |         |               | $ | 361,309      |       |   | $             | (104,261 | )      |              | $ |       |       |       | $ | (2,498 | )      |   | $ | 254,550 |       
|                             |                                                           |                                             |         |   |        |            |            |         |               |   |              |       |   |               |          |        |              |   |        |       |      



F-7



---



##### 



BOYKIN LODGING COMPANY











|                                                         |                                                                                                    |                                                                              |                                       |         |         |        |          |         |         |        |         |         |         |       |  
|-------------------------------------------------------- | -------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------- | ------------------------------------- | ------- | ------- | ------ | -------- | ------- | ------- | ------ | ------- | ------- | ------- | ----- | -
|                                                         |                                                                                                    | 2005                                                                         |                                       |         | 2004    |        |          | 2003    |        
|                                                         |                                                                                                    |                                                                              |                                       |         |         |        |          |         |        
|Cash flows from operating activities:                    |                                                                                                    |                                                                              |                                       |         |         |        |          |         |         |        |         |        
|                                                         | Net income (loss)                                                                                  |                                                                              | $                                     | 29,722  |         |        | $        | (160    | )       |        | $       | (3,426  | )      
|                                                         | Adjustments to reconcile net income (loss) to net cash flow
    provided by operating activities  |                                                                              |                                       |         |         |        |          |         |         |        |         |         |        
|                                                         |                                                                                                    | Gain on sale/disposal of assets                                              |                                       |         | (34,469 | )      |          |         | (13,080 | )      |         |         | (2,274  | )    
|                                                         |                                                                                                    | Impairment of real estate                                                    |                                       |         | 5,500   |        |          |         | 4,300   |        |         |         | 2,800   |      
|                                                         |                                                                                                    | Depreciation and amortization                                                |                                       |         | 24,585  |        |          |         | 28,073  |        |         |         | 33,822  |      
|                                                         |                                                                                                    | Charges related to equity based compensation                                 |                                       |         | 2,155   |        |          |         | 1,009   |        |         |         | 756     |      
|                                                         |                                                                                                    | Equity in (income) loss of unconsolidated joint ventures                     |                                       |         | (11,343 | )      |          |         | 814     |        |         |         | 870     |      
|                                                         |                                                                                                    | Minority interests                                                           |                                       |         | 5,565   |        |          |         | 803     |        |         |         | (3,319  | )    
|                                                         |                                                                                                    | Changes in assets and liabilities  
    Accounts receivable and inventories |                                       |         | 5,351   |        |          |         | 28,808  |        |         |         | (31,083 | )    
|                                                         |                                                                                                    |                                                                              | Accounts payable and accrued expenses |         |         | 1,045  |          |         |         | (9,118 | )       |         |         | 1,902 |  
|                                                         |                                                                                                    |                                                                              | Amounts due to/from lessees           |         |         | 10     |          |         |         | 80     |         |         |         | (217  | )
|                                                         |                                                                                                    |                                                                              | Other                                 |         |         | (2,743 | )        |         |         | (1,232 | )       |         |         | 4,193 |  
|                                                         |                                                                                                    |                                                                              |                                       |         |         |        |          |         |        
|Net cash flow provided by operating activities           |                                                                                                    |                                                                              | 25,378                                |         |         |        | 40,297   |         |         |        | 4,024   |        
|                                                         |                                                                                                    |                                                                              |                                       |         |         |        |          |         |        
|                                                        
|Cash flows from investing activities:                    |                                                                                                    |                                                                              |                                       |         |         |        |          |         |         |        |         |        
|                                                         | Investment in unconsolidated joint ventures                                                        |                                                                              |                                       |        |         |        |          | (438    | )       |        |         | (481    | )      
|                                                         | Distributions received from unconsolidated joint ventures                                          |                                                                              |                                       | 23,972  |         |        |          | 1,698   |         |        |         | 572     |        
|                                                         | Changes in restricted cash                                                                         |                                                                              |                                       | (18,677 | )       |        |          | 2,343   |         |        |         | (1,851  | )      
|                                                         | Improvements and additions to hotel properties, net                                                |                                                                              |                                       | (21,120 | )       |        |          | (30,834 | )       |        |         | (54,210 | )      
|                                                         | Net proceeds from sale of assets                                                                   |                                                                              |                                       | 62,704  |         |        |          | 93,101  |         |        |         | 30,336  |        
|                                                         |                                                                                                    |                                                                              |                                       |         |         |        |          |         |        
|Net cash flow provided by (used in) investing activities |                                                                                                    |                                                                              | 46,879                                |         |         |        | 65,870   |         |         |        | (25,634 | )      
|                                                         |                                                                                                    |                                                                              |                                       |         |         |        |          |         |        
|                                                        
|Cash flows from financing activities:                    |                                                                                                    |                                                                              |                                       |         |         |        |          |         |         |        |         |        
|                                                         | Payments of dividends and distributions                                                            |                                                                              |                                       | (4,751  | )       |        |          | (4,751  | )       |        |         | (11,485 | )      
|                                                         | Net borrowings (repayments) against credit facilities                                              |                                                                              |                                       | 33,554  |         |        |          | (65,500 | )       |        |         | 71,946  |        
|                                                         | Term note borrowings                                                                               |                                                                              |                                       |        |         |        |          | 14,133  |         |        |         | 13,222  |        
|                                                         | Repayment of term notes                                                                            |                                                                              |                                       | (95,010 | )       |        |          | (47,537 | )       |        |         | (61,106 | )      
|                                                         | Payment of deferred financing costs                                                                |                                                                              |                                       | (1,426  | )       |        |          | (327    | )       |        |         | (2,339  | )      
|                                                         | Net proceeds from issuance of common shares                                                        |                                                                              |                                       | 118     |         |        |          |        |         |        |         | 153     |        
|                                                         | Cash payment for common share purchases                                                            |                                                                              |                                       | (142    | )       |        |          | (191    | )       |        |         | (81     | )      
|                                                         | Distributions to joint venture minority interest partners, net                                     |                                                                              |                                       | (1,831  | )       |        |          | (2,486  | )       |        |         | (140    | )      
|                                                         |                                                                                                    |                                                                              |                                       |         |         |        |          |         |        
|Net cash flow provided by (used in) financing activities |                                                                                                    |                                                                              | (69,488                               | )       |         |        | (106,659 | )       |         |        | 10,170  |        
|                                                         |                                                                                                    |                                                                              |                                       |         |         |        |          |         |        
|Net change in cash and cash equivalents                  |                                                                                                    | $                                                                            | 2,769                                 |         |         | $      | (492     | )       |         | $      | (11,440 | )      
|Cash and cash equivalents, beginning of year             |                                                                                                    |                                                                              | 13,521                                |         |         |        | 14,013   |         |         |        | 25,453  |        
|                                                         |                                                                                                    |                                                                              |                                       |         |         |        |          |         |        
|Cash and cash equivalents, end of year                   |                                                                                                    | $                                                                            | 16,290                                |         |         | $      | 13,521   |         |         | $      | 14,013  |        
|                                                         |                                                                                                    |                                                                              |                                       |         |         |        |          |         |        



F-8



---



##### 



BOYKIN LODGING COMPANY













| |               
| | --------------
| | 1. Background:

® ® ® ®






| |          
| | ---------
| | Formation

40-year








| |                            
| | ---------------------------
| | Consolidated Joint Ventures



|                       |  |                               |  |            |     |  |            |  |    |                                 |  |                                             |  |  |               |  |  |  |               | 
|---------------------- |  | ----------------------------- |  | ---------- | --- |  | ---------- |  | -- | ------------------------------- |  | ------------------------------------------- |  |  | ------------- |  |  |  | ------------- | 
|                       |  |                               |  | Boykin     |     |  | JV         |  |    |                                 |  |                                             |  | 
|                       |  |                               |  | Ownership  |     |  | Ownership  |  |    |                                 |  | Hotel                                       |  |  | Date of Hotel | 
|Name of Joint Venture  |  | JV Partner                    |  | Percentage |     |  | Percentage |  |    | Hotel Owned Under Joint Venture |  | Manager                                     |  |  | Sale          | 
|                       |  |                               |  |            |     |  |            |  |    |                                 |  |                                             |  |  |               | 
|BoyStar Ventures, L.P. |  | Interstate Hotels and Resorts |  |            | 91% |  |            |  | 9% |                                 |  | Holiday Inn Minneapolis West                |  |  | BMC           |  |  |  | August 2004   | 
|Shawan Road Hotel L.P. |  | Davidson Hotel Company        |  |            | 91% |  |            |  | 9% |                                 |  | Marriotts Hunt Valley Inn                  |  |  | Davidson      |  |  |  | July 2004     | 
|Boykin San Diego LLC   |  | Outrigger Lodging Services    |  |            | 91% |  |            |  | 9% |                                 |  | Hampton Inn
    San Diego Airport/Sea World |  |  | Outrigger     |  |  |  | November 2005 | 



F-9



---



##### 







| |                              
| | -----------------------------
| | Unconsolidated Joint Ventures











|                                                    |  |              |       |  |                |   |        |      |  |   |        |  |  |   |        | 
|--------------------------------------------------- |  | ------------ | ----- |  | -------------- | - | ------ | ---- |  | - | ------ |  |  | - | ------ | 
|                                                    |  | Boykin/AEW   |       |  | Boykin/Concord |  
|                                                    |  | December 31, |       |  | December 31,   |  
|                                                    |  |              |       |  |                |  
|                                                    |  | 2005         |       |  | 2004           |   |        | 2005 |  |   | 2004   | 
|                                                    |  |              |       |  |                |   |        |      |  |   |        | 
|Total assets                                        |  | $            | 2,828 |  |                | $ | 65,975 |      |  | $ | 20,499 |  |  | $ | 21,069 | 
|                                                    |  |              |       |  |                |   |        |      |  |   |        | 
|Accrued expenses                                    |  |              | 1,934 |  |                |   | 2,593  |      |  |   | 578    |  |  |   | 485    | 
|Outstanding debt                                    |  |              |      |  |                |   | 36,116 |      |  |   | 18,078 |  |  |   | 18,398 | 
|                                                    |  |              |       |  |                |   |        |      |  |   |        | 
|Total liabilities                                   |  |              | 1,934 |  |                |   | 38,709 |      |  |   | 18,656 |  |  |   | 18,883 | 
|Minority interest                                   |  |              | 224   |  |                |   | 6,781  |      |  |   |       |  |  |   |       | 
|Equity                                              |  |              | 670   |  |                |   | 20,485 |      |  |   | 1,843  |  |  |   | 2,186  | 
|Boykins share of equity and minority interest      |  |              | 488   |  |                |   | 11,999 |      |  |   | 922    |  |  |   | 1,093  | 
|Boykins additional basis in Boykin Chicago, L.L.C. |  |              |      |  |                |   | 956    |      |  |   |       |  |  |   |       | 
|                                                    |  |              |       |  |                |   |        |      |  |   |        | 
|Investment in unconsolidated joint venture          |  | $            | 488   |  |                | $ | 12,955 |      |  | $ | 922    |  |  | $ | 1,093  | 
|                                                    |  |              |       |  |                |   |        |      |  |   |        | 

F-10



---



##### 



|                                                        |  |              |        |   |                |   |         |      |  |   |        |   |  |      |        |   |      |   |        |   |  |   |        |  
|------------------------------------------------------- |  | ------------ | ------ | - | -------------- | - | ------- | ---- |  | - | ------ | - |  | ---- | ------ | - | ---- | - | ------ | - |  | - | ------ | -
|                                                        |  | Boykin/AEW   |        |   | Boykin/Concord |  
|                                                        |  | December 31, |        |   | December 31,   |  
|                                                        |  |              |        |   |                |  
|                                                        |  | 2005         |        |   | 2004           |   |         | 2003 |  |   | 2005   |   |  | 2004 |        |   | 2003 |  
|                                                        |  |              |        |   |                |   |         |      |  |   |        |   |  |      |        |   |      |  
|Revenues                                                |  | $            | 2,009  |   |                | $ | 16,093  |      |  | $ | 14,942 |   |  | $    | 8,305  |   |      | $ | 7,437  |   |  | $ | 6,709  |  
|Hotel operating expenses                                |  |              | (2,275 | ) |                |   | (10,698 | )    |  |   | (9,836 | ) |  |      | (4,724 | ) |      |   | (4,297 | ) |  |   | (3,856 | )
|Management fees to related party                        |  |              | (60    | ) |                |   | (483    | )    |  |   | (446   | ) |  |      |       |   |      |   |       |   |  |   |       |  
|Real estate related depreciation                        |  |              | (772   | ) |                |   | (3,102  | )    |  |   | (3,099 | ) |  |      | (1,124 | ) |      |   | (1,114 | ) |  |   | (1,139 | )
|Property taxes, insurance and other                     |  |              | (434   | ) |                |   | (1,710  | )    |  |   | (1,245 | ) |  |      | (521   | ) |      |   | (554   | ) |  |   | (537   | )
|                                                        |  |              |        |   |                |   |         |      |  |   |        |   |  |      |        |   |      |  
|Operating income (loss)                                 |  |              | (1,532 | ) |                |   | 100     |      |  |   | 316    |   |  |      | 1,936  |   |      |   | 1,472  |   |  |   | 1,177  |  
|Interest and other income                               |  |              | 57     |   |                |   | 35      |      |  |   | 14     |   |  |      | 6      |   |      |   | 5      |   |  |   | 13     |  
|Amortization                                            |  |              | (133   | ) |                |   | (289    | )    |  |   | (282   | ) |  |      | (44    | ) |      |   | (151   | ) |  |   | (88    | )
|Interest expense                                        |  |              | (512   | ) |                |   | (1,760  | )    |  |   | (1,716 | ) |  |      | (1,107 | ) |      |   | (926   | ) |  |   | (792   | )
|Gain on sale/disposal of assets                         |  |              | 29,518 |   |                |   |        |      |  |   |       |   |  |      |       |   |      |   |       |   |  |   |       |  
|Other                                                   |  |              | (126   | ) |                |   | (1      | )    |  |   | (5     | ) |  |      | (134   | ) |      |   | (156   | ) |  |   | (578   | )
|                                                        |  |              |        |   |                |   |         |      |  |   |        |   |  |      |        |   |      |  
|Net income (loss) before minority interest              |  |              | 27,272 |   |                |   | (1,915  | )    |  |   | (1,673 | ) |  |      | 657    |   |      |   | 244    |   |  |   | (268   | )
|Boykins share of net income (loss)                     |  |              | 11,961 |   |                |   | (936    | )    |  |   | (736   | ) |  |      | 329    |   |      |   | 122    |   |  |   | (134   | )
|Reduction of additional basis in Boykin Chicago, L.L.C. |  |              | (947   | ) |                |   |        |      |  |   |       |   |  |      |       |   |      |   |       |   |  |   |       |  
|                                                        |  |              |        |   |                |   |         |      |  |   |        |   |  |      |        |   |      |  
|                                                        |  | $            | 11,014 |   |                | $ | (936    | )    |  | $ | (736   | ) |  | $    | 329    |   |      | $ | 122    |   |  | $ | (134   | )
|                                                        |  |              |        |   |                |   |         |      |  |   |        |   |  |      |        |   |      |  



| |                                     
| | ------------------------------------
| | Taxable REIT Subsidiary Transactions

















| |                              
| | -----------------------------
| | Hilton Modification Agreement



F-11



---



##### 









| |                                               
| | ----------------------------------------------
| | 2. Summary of Significant Accounting Policies:



| |                      
| | ---------------------
| | Basis of Presentation





| |                               
| | ------------------------------
| | Investment in Hotel Properties





|                                |  |      |          |   |      |   |          |  
|------------------------------- |  | ---- | -------- | - | ---- | - | -------- | -
|                                |  | 2005 |          |   | 2004 |  
|                                |  |      |          |   |      |  
|Land                            |  | $    | 47,423   |   |      | $ | 50,873   |  
|Buildings and improvements      |  |      | 389,622  |   |      |   | 387,453  |  
|Furniture and equipment         |  |      | 60,797   |   |      |   | 60,800   |  
|Construction in progress        |  |      | 14,861   |   |      |   | 4,676    |  
|                                |  |      |          |   |      |  
|                                |  |      | 512,703  |   |      |   | 503,802  |  
|Less  Accumulated depreciation |  |      | (137,586 | ) |      |   | (120,442 | )
|                                |  |      |          |   |      |  
|                                |  | $    | 375,117  |   |      | $ | 383,360  |  
|                                |  |      |          |   |      |  







F-12



---



##### 











| |                          
| | -------------------------
| | Cash and Cash Equivalents





| |                
| | ---------------
| | Restricted Cash







| |                    
| | -------------------
| | Accounts Receivable





| |            
| | -----------
| | Inventories

first-in,




| |                                        
| | ---------------------------------------
| | Deferred Financing Costs and Other, net



|                         |  |      |        |   |      |   |        |  
|------------------------ |  | ---- | ------ | - | ---- | - | ------ | -
|                         |  | 2005 |        |   | 2004 |  
|                         |  |      |        |   |      |  
|Financing costs          |  | $    | 4,476  |   |      | $ | 5,269  |  
|Franchise fees           |  |      | 427    |   |      |   | 327    |  
|                         |  |      |        |   |      |  
|                         |  |      | 4,903  |   |      |   | 5,596  |  
|Accumulated amortization |  |      | (2,957 | ) |      |   | (3,606 | )
|                         |  |      |        |   |      |  
|                         |  | $    | 1,946  |   |      | $ | 1,990  |  
|                         |  |      |        |   |      |  



F-13



---



##### 









| |                        
| | -----------------------
| | Officers Life Insurance





| |                            
| | ---------------------------
| | Deferred Compensation Plans





| |          
| | ---------
| | Dividends



1 2




| |                    
| | -------------------
| | Revenue Recognition

Hotel revenues


Lease revenue


F-14



---



##### 



Percentage of Completion




| |                  
| | -----------------
| | Condominium Units





| |                  
| | -----------------
| | White Sand Villas

92-unit








| |                    
| | -------------------
| | Sanibel View Villas

60-unit






| |               
| | --------------
| | Captiva Villas

43-unit


F-15



---



##### 





| |                     
| | --------------------
| | Insurance Recoveries

















| |                   
| | ------------------
| | Minority Interests







| |             
| | ------------
| | Income Taxes





F-16



---



##### 











|              |  |                   |       |   |       |  |       |  
|------------- |  | ----------------- | ----- | - | ----- |  | ----- | -
|Common Shares | 
|              | 
|Year          |  | Return of Capital |       |   | Total | 
|              |  |                   |       |   |       | 
|2005          |  |                   |      |   |       |  |      |  
|2004          |  |                   |      |   |       |  |      |  
|2003          |  |                   | 100.0 | % |       |  | 100.0 | %

|                 |  |                 |      |   |           |  |     |                   |  |  |                  |   |  |                   |      |   |       |  |      |   |  |  |       |  
|---------------- |  | --------------- | ---- | - | --------- |  | --- | ----------------- |  |  | ---------------- | - |  | ----------------- | ---- | - | ----- |  | ---- | - |  |  | ----- | -
|Preferred Shares | 
|                 | 
|Year             |  | Ordinary Income |      |   | Qualified |  |     | Return of Capital |  |  | 15% Capital Gain |   |  | Section 1250 Gain |      |   | Total | 
|                 |  |                 |      |   |           |  |     |                   |  |  |                  |   |  |                   |      |   |       | 
|2005             |  |                 | 53.0 | % |           |  |    |                   |  |  |                 |   |  |                   | 23.9 | % |       |  | 23.1 | % |  |  | 100.0 | %
|2004             |  |                 | 89.9 | % |           |  | 8.1 | %                 |  |  | 2.0              | % |  |                   |     |   |       |  |     |   |  |  | 100.0 | %
|2003             |  |                 | 92.9 | % |           |  |    |                   |  |  | 7.1              | % |  |                   |     |   |       |  |     |   |  |  | 100.0 | %



| |                   
| | ------------------
| | Earnings Per Share



|                               |                         |                         |            |         |      |  |            |        |  |  |            |         | 
|------------------------------ | ----------------------- | ----------------------- | ---------- | ------- | ---- |  | ---------- | ------ |  |  | ---------- | ------- | 
|                               |                         | Year Ended December 31, |           
|                               |                         | 2005                    |            |         | 2004 |  |            | 2003   | 
|                               |                         |                         |            |         |      |  |            |        | 
|Basic                          |                         |                         | 17,566,725 |         |      |  | 17,426,458 |        |  |  | 17,336,258 |        
|Effect of dilutive securities: |                         |                         |            |         |      |  |            |        |  |  |            |        
|                               | Common stock options    |                         |            | 144,340 |      |  |            | 28,213 |  |  |            | 18,332  | 
|                               | Restricted share grants |                         |            | 176,233 |      |  |            | 98,530 |  |  |            | 115,062 | 
|                               |                         |                         |            |         |      |  |            |        | 
|Diluted                        |                         |                         | 17,887,298 |         |      |  | 17,553,201 |        |  |  | 17,469,652 |        



F-17



---



##### 





| |                                      
| | -------------------------------------
| | Partnership Units/ Minority Interests





| |                                    
| | -----------------------------------
| | Fair Value of Financial Instruments













| |                     
| | --------------------
| | Comprehensive Income





| |                              
| | -----------------------------
| | New Accounting Pronouncements



F-18



---



##### 





|                                                                              |         |                         |        |      |           |   |        |           |   |   |        |       |  
|----------------------------------------------------------------------------- | ------- | ----------------------- | ------ | ---- | --------- | - | ------ | --------- | - | - | ------ | ----- | -
|                                                                              |         | Year Ended December 31, |       
|                                                                              |         | 2005                    |        |      | 2004      |   |        | 2003      |  
|                                                                              |         | Pro Forma               |        |      | Pro Forma |   |        | Pro Forma |  
|                                                                              |         |                         |        |      |           |   |        |           |  
|Net income (loss) attributable to common shareholders                         |         | $                       | 24,971 |      |           | $ | (4,911 | )         |   | $ | (8,177 | )    
|Stock-based employee compensation expense                                     |         |                         |       |      |           |   | (126   | )         |   |   | (126   | )    
|                                                                              |         |                         |        |      |           |   |        |           |  
|Proforma net income (loss) attributable to common shareholders                |         | $                       | 24,971 |      |           | $ | (5,037 | )         |   | $ | (8,303 | )    
|                                                                              |         |                         |        |      |           |   |        |           |  
|Proforma net income (loss) attributable to common shareholders
    per share: |         |                         |        |      |           |   |        |           |   |   |        |      
|                                                                              | Basic   |                         | $      | 1.42 |           |   | $      | (0.29     | ) |   | $      | (0.48 | )
|                                                                              | Diluted |                         | $      | 1.40 |           |   | $      | (0.29     | ) |   | $      | (0.48 | )





04-5). 04-5 04-5 04-5. 04-5 04-5


year-to


F-19



---



##### 





| |                 
| | ----------------
| | Use of Estimates





| |                  
| | -----------------
| | Reclassifications





| |                       
| | ----------------------
| | 3. Hotel Transactions:



|                                         |  |                  |  |                  |  |           |  |            |        |            |             |        |         |                           
|---------------------------------------- |  | ---------------- |  | ---------------- |  | --------- |  | ---------- | ------ | ---------- | ----------- | ------ | ------- | --------------------------
|                                         |  |                  |  |                  |  |           |  |            |        | Percentage |             |       
|                                         |  |                  |  | Acquisition/     |  | Number of |  | Purchase/  |        |            | owned by    |        |        
|Hotel                                    |  | Location         |  | Disposition Date |  | Rooms     |  | Sale Price |        |            | Partnership |        | Manager
|                                         |  |                  |  |                  |  |           |  |            |        |            |             |        |        
|Acquisition:                             |  |                  |  |                  |  |           |  |            |        |            |             |        |         |                           
|Radisson Suite Beach Resort              |  | Marco Island, FL |  | August 2003      |  | 233       |  | $          | 27,250 |            |             | 100%   |         | BMC                       
|Dispositions:                            |  |                  |  |                  |  |           |  |            |        |            |             |        |         |                           
|Hampton Inn San Diego Airport/ Sea World |  | San Diego, CA    |  | November 2005    |  | 199       |  | $          | 23,000 |            |             | 91%    |         | Outrigger Lodging Services
|Clarion Hotel & Conference Center        |  | Yakima, WA       |  | June 2005        |  | 208       |  | $          | 4,200  |            |             | 100%   |         | Chambers Group            
|French Lick Springs Resort & Spa         |  | French Lick, IN  |  | April 2005       |  | 485       |  | $          | 25,000 |            |             | 100%   |         | BMC                       
|Hotel 71                                 |  | Chicago, IL      |  | March 2005       |  | 454       |  | $          | 95,050 |            |             | 43.75% |         | BMC                       
|Ramada Inn Bellevue Center               |  | Bellevue, WA     |  | November 2004    |  | 208       |  | $          | 9,800  |            |             | 100%   |         | BMC                       
|Radisson Hotel Mount Laurel              |  | Mount Laurel, NJ |  | September 2004   |  | 283       |  | $          | 14,250 |            |             | 100%   |         | BMC                       
|Holiday Inn Minneapolis West             |  | Minneapolis, MN  |  | August 2004      |  | 196       |  | $          | 9,325  |            |             | 91%    |         | BMC                       
|Marriotts Hunt Valley Inn               |  | Hunt Valley, MD  |  | July 2004        |  | 392       |  | $          | 31,000 |            |             | 91%    |         | Davidson                  
|Doubletree Portland Downtown             |  | Portland, OR     |  | March 2004       |  | 235       |  | $          | 22,000 |            |             | 100%   |         | BMC                       
|Doubletree Spokane Valley                |  | Spokane, WA      |  | August 2003      |  | 237       |  | $          | 5,400  |            |             | 100%   |         | Hilton                    
|Springfield                              |  | Springfield, OR  |  | July 2003        |  | 234       |  | $          | 6,500  |            |             | 100%   |         | Hilton                    
|Holiday Inn Lake Norman                  |  | Charlotte, NC    |  | June 2003        |  | 119       |  | $          | 2,550  |            |             | 100%   |         | BMC                       
|Hampton Inn Lake Norman                  |  | Charlotte, NC    |  | February 2003    |  | 117       |  | $          | 3,700  |            |             | 100%   |         | BMC                       
|Knoxville Hilton                         |  | Knoxville, TN    |  | February 2003    |  | 317       |  | $          | 11,500 |            |             | 100%   |         | BMC                       





| |                            
| | ---------------------------
| | 4. Discontinued Operations:







F-20



---



##### 











|                                                       |                                            |                         |        |        |      |   |         |       |  |   |         |        |  
|------------------------------------------------------ | ------------------------------------------ | ----------------------- | ------ | ------ | ---- | - | ------- | ----- |  | - | ------- | ------ | -
|                                                       |                                            | Year Ended December 31, |       
|                                                       |                                            | 2005                    |        |        | 2004 |   |         | 2003  | 
|                                                       |                                            |                         |        |        |      |   |         |       | 
|Lease revenue                                          |                                            | $                       | 2,547  |        |      | $ | 2,045   |       |  | $ | 1,958   |       
|Hotel revenues                                         |                                            |                         | 2,933  |        |      |   | 34,607  |       |  |   | 60,774  |       
|Hotel operating expenses                               |                                            |                         | (3,817 | )      |      |   | (29,941 | )     |  |   | (49,544 | )     
|Management fees to related party                       |                                            |                         | (56    | )      |      |   | (607    | )     |  |   | (782    | )     
|Management fees  other                                |                                            |                         | (19    | )      |      |   | (252    | )     |  |   | (808    | )     
|Property taxes, insurance and other                    |                                            |                         | (250   | )      |      |   | (1,751  | )     |  |   | (3,340  | )     
|Other expenses                                         |                                            |                         | (19    | )      |      |   | (93     | )     |  |   | (76     | )     
|Interest income                                        |                                            |                         | 17     |        |      |   | 24      |       |  |   | 23      |       
|Other income                                           |                                            |                         |       |        |      |   | 40      |       |  |   | 53      |       
|Interest expense                                       |                                            |                         |       |        |      |   | (200    | )     |  |   | (1,307  | )     
|Real estate related depreciation and amortization      |                                            |                         | (745   | )      |      |   | (4,402  | )     |  |   | (7,650  | )     
|Impairment of real estate                              |                                            |                         |       |        |      |   | (4,300  | )     |  |   | (2,800  | )     
|Amortization of deferred financing costs               |                                            |                         |       |        |      |   | (87     | )     |  |   | (200    | )     
|Minority interest in (earnings) loss of joint ventures |                                            |                         | (1,719 | )      |      |   | (2,236  | )     |  |   | 1,102   |       
|Gain (loss) on sale of individual assets               |                                            |                         | 366    |        |      |   | (3      | )     |  |   | 550     |       
|Gain (loss) on sale of property                        |                                            |                         | 22,716 |        |      |   | 9,908   |       |  |   | 770     |       
|                                                       |                                            |                         |        |        |      |   |         |       | 
|                                                       | Income (loss) from discontinued operations |                         | $      | 21,954 |      |   | $       | 2,752 |  |   | $       | (1,277 | )
|                                                       |                                            |                         |        |        |      |   |         |       | 

|                                        |                   |              |        |        | 
|--------------------------------------- | ----------------- | ------------ | ------ | ------ | 
|                                        |                   | December 31, |       
|                                        |                   | 2004         |       
|                                        |                   |              |       
|Accounts receivable, net                |                   | $            | 480    |       
|Receivables from lessee                 |                   |              | 10     |       
|Inventories                             |                   |              | 431    |       
|Other assets                            |                   |              | 1,043  |       
|Deferred financing costs and other, net |                   |              | 24     |       
|Investment in hotel properties, net     |                   |              | 27,435 |       
|                                        |                   |              |       
|                                        | Total assets      |              | $      | 29,423 | 
|                                        |                   |              |       
|Accounts payable and accrued expenses   |                   | $            | 1,425  |       
|Accounts payable to related party       |                   |              | (7     | )     
|Minority interest                       |                   |              | 951    |       
|                                        |                   |              |       
|                                        | Total liabilities |              | $      | 2,369  | 
|                                        |                   |              |       

F-21



---



##### 





| |                    
| | -------------------
| | 5. Credit Facility:

loan-to






| |                       
| | ----------------------
| | 6. Term Notes Payable:

25-year








F-22



---



##### 





|                    |  |   |        | 
|------------------- |  | - | ------ | 
|2006                |  | $ | 4,166  | 
|2007                |  |   | 4,448  | 
|2008                |  |   | 4,788  | 
|2009                |  |   | 5,134  | 
|2010                |  |   | 5,505  | 
|2011 and thereafter |  |   | 74,488 | 
|                    |  |   |       
|                    |  | $ | 98,529 | 
|                    |  |   |       



| |                                  
| | ---------------------------------
| | 7. Description of Capital Shares:



| |              
| | -------------
| | Common Shares

winding-up




| |                 
| | ----------------
| | Preferred Shares



1 2 2002-A,




| |                                  
| | ---------------------------------
| | 8. Limited Partnership Interests:







| |                           
| | --------------------------
| | 9. Joint Venture with AEW:



F-23



---



##### 











| |                                 
| | --------------------------------
| | 10. Percentage Lease Agreements:







| |                              
| | -----------------------------
| | 11. Share Compensation Plans:





| |                  
| | -----------------
| | Share Option Plan



|                                 |                                          |                   |         |                      |                      |   |       |      | 
|-------------------------------- | ---------------------------------------- | ----------------- | ------- | -------------------- | -------------------- | - | ----- | ---- | 
|                                 |                                          |                   |         | Weighted Average Per |                     
|                                 |                                          | Number of Options |         |                      | Share Exercise Price |  
|                                 |                                          |                   |         |                      |                      |  
|Outstanding at January 1, 2003   |                                          |                   | 839,139 |                      |                      | $ | 11.24 |     
|                                 | Options granted (officers and employees) |                   |         |                     |                      |   |       |     | 
|                                 | Options exercised/forfeited/expired      |                   |         |                     |                      |   |       |     | 
|                                 |                                          |                   |         |                      |                      |  
|Outstanding at December 31, 2003 |                                          |                   | 839,139 |                      |                      | $ | 11.24 |     
|                                 | Options granted                          |                   |         |                     |                      |   |       |     | 
|                                 | Options exercised/forfeited/expired      |                   |         |                     |                      |   |       |     | 
|                                 |                                          |                   |         |                      |                      |  
|Outstanding at December 31, 2004 |                                          |                   | 839,139 |                      |                      | $ | 11.24 |     
|                                 | Options granted                          |                   |         |                     |                      |   |       |     | 
|                                 | Options exercised/forfeited/expired      |                   |         | (15,000              | )                    |   | $     | 7.85 | 
|                                 |                                          |                   |         |                      |                      |  
|Outstanding at December 31, 2005 |                                          |                   | 824,139 |                      |                      | $ | 11.30 |     

F-24



---



##### 



|     |  |         |   |                  |                 |                     |   |                     |  |                      |                      |  |  |   |       | 
|---- |  | ------- | - | ---------------- | --------------- | ------------------- | - | ------------------- |  | -------------------- | -------------------- |  |  | - | ----- | 
|     |  |         |   |                  |                 | Exercisable Options |  
|     |  |         |   | Weighted Average |                 |                     |   |                    
|     |  | Options |   |                  | Fair Value of   |                     |   |                     |  | Weighted Average Per |                     
|Year |  | Granted |   |                  | Options Granted |                     |   | Options Outstanding |  |                      | Share Exercise Price | 
|     |  |         |   |                  |                 |                     |   |                     |  |                      |                      | 
|2005 |  |         |  |                  |                 |                     |  |                     |  |                      | 824,139              |  |  | $ | 11.30 | 
|2004 |  |         |  |                  |                 |                     |  |                     |  |                      | 613,006              |  |  | $ | 12.21 | 
|2003 |  |         |  |                  |                 |                     |  |                     |  |                      | 518,539              |  |  | $ | 12.87 | 



|                 |  |                            |         |                  |                |   |                  |                  |  |  |           | 
|---------------- |  | -------------------------- | ------- | ---------------- | -------------- | - | ---------------- | ---------------- |  |  | --------- | 
|                 |  | Total/ Exercisable Options |        
|                 |  |                            |        
|                 |  |                            |         | Weighted Average |                |   | Weighted Average |                 
|Range of         |  | Options                    |         |                  | Per Share      |   |                  | Remaining        | 
|Exercise Prices  |  | Outstanding                |         |                  | Exercise Price |   |                  | Contractual Life | 
|                 |  |                            |         |                  |                |   |                  |                  | 
|$7.295  $8.40   |  |                            | 464,000 |                  |                | $ | 8.00             |                  |  |  | 6.0 years | 
|$10.938  $13.75 |  |                            | 235,139 |                  |                | $ | 12.36            |                  |  |  | 3.5 years | 
|$20.00  $25.626 |  |                            | 125,000 |                  |                | $ | 21.52            |                  |  |  | 1.1 years | 
|                 |  |                            |         |                  |                |   |                  |                  | 
|                 |  |                            | 824,139 |                  |                | $ | 11.30            |                  |  |  | 4.6 years | 
|                 |  |                            |         |                  |                |   |                  |                  | 







| |                            
| | ---------------------------
| | Restricted Share Grant Plan



|                                                  |  |      |          |   |      |  |          |  
|------------------------------------------------- |  | ---- | -------- | - | ---- |  | -------- | -
|                                                  |  | 2005 |          |   | 2004 | 
|                                                  |  |      |          |   |      | 
|Restricted shares outstanding  beginning of year |  |      | 334,784  |   |      |  | 288,740  |  
|New share grants                                  |  |      | 204,000  |   |      |  | 174,789  |  
|Shares cancelled                                  |  |      |         |   |      |  |         |  
|Shares vested                                     |  |      | (144,357 | ) |      |  | (128,745 | )
|                                                  |  |      |          |   |      | 
|Restricted shares outstanding  end of year       |  |      | 394,427  |   |      |  | 334,784  |  
|                                                  |  |      |          |   |      | 





| |                            
| | ---------------------------
| | 12. Employee Benefit Plans:



F-25



---



##### 





| |                 
| | ----------------
| | 13. Commitments:









|                    |  |   |        | 
|------------------- |  | - | ------ | 
|2006                |  | $ | 6,353  | 
|2007                |  |   | 1,178  | 
|2008                |  |   | 829    | 
|2009                |  |   | 697    | 
|2010                |  |   | 651    | 
|2011 and thereafter |  |   | 25,107 | 
|                    |  |   |       
|                    |  | $ | 34,815 | 
|                    |  |   |       





F-26



---



##### 



91-10,






| |                                
| | -------------------------------
| | 14. Related Party Transactions:















F-27



---



##### 









| |                                                            
| | -----------------------------------------------------------
| | 15. Statements of Cash Flows, Supplemental
    Disclosures:









| |                                             
| | --------------------------------------------
| | 16. Quarterly Operating Results (Unaudited):



|                                                                                                |         |                            |        |        |         |   |        |              |   |   |             |        |   |   |        |        |  
|----------------------------------------------------------------------------------------------- | ------- | -------------------------- | ------ | ------ | ------- | - | ------ | ------------ | - | - | ----------- | ------ | - | - | ------ | ------ | -
|                                                                                                |         | For the 2005 Quarter Ended |       
|                                                                                                |         | March 31                   |        |        | June 30 |   |        | September 30 |   |   | December 31 |       
|                                                                                                |         |                            |        |        |         |   |        |              |   |   |             |       
|Total revenues                                                                                  |         | $                          | 53,346 |        |         | $ | 54,494 |              |   | $ | 51,128      |        |   | $ | 45,517 |       
|Income (loss) attributable to common shareholders before
    discontinued operations            |         |                            | 15,650 |        |         |   | (895   | )            |   |   | (2,832      | )      |   |   | (5,642 | )     
|Discontinued operations, net of minority interest                                               |         |                            | (945   | )      |         |   | 6,934  |              |   |   | 755         |        |   |   | 11,946 |       
|                                                                                                |         |                            |        |        |         |   |        |              |   |   |             |       
|Net income (loss) attributable to common shareholders                                           |         |                            | 14,705 |        |         |   | 6,039  |              |   |   | (2,077      | )      |   |   | 6,304  |       
|Income (loss) attributable to common shareholders before
    discontinued operations per share: |         |                            |        |        |         |   |        |              |   |   |             |        |   |   |        |       
|                                                                                                | Basic   |                            |        | 0.89   |         |   |        | (0.05        | ) |   |             | (0.16  | ) |   |        | (0.32  | )
|                                                                                                | Diluted |                            |        | 0.89   |         |   |        | (0.05        | ) |   |             | (0.16  | ) |   |        | (0.32  | )
|Net income (loss) attributable to common shareholders per share:                                |         |                            |        |        |         |   |        |              |   |   |             |        |   |   |        |       
|                                                                                                | Basic   |                            |        | 0.84   |         |   |        | 0.34         |   |   |             | (0.12  | ) |   |        | 0.36   |  
|                                                                                                | Diluted |                            |        | 0.83   |         |   |        | 0.34         |   |   |             | (0.12  | ) |   |        | 0.35   |  
|Weighted average number of common shares outstanding (in
    thousands):                        |         |                            |        |        |         |   |        |              |   |   |             |        |   |   |        |       
|                                                                                                | Basic   |                            |        | 17,534 |         |   |        | 17,544       |   |   |             | 17,594 |   |   |        | 17,594 |  
|                                                                                                | Diluted |                            |        | 17,650 |         |   |        | 17,789       |   |   |             | 17,993 |   |   |        | 17,943 |  

F-28



---



##### 



|                                                                                       |         |                            |        |        |         |   |        |              |   |   |             |        |   |   |        |        |  
|-------------------------------------------------------------------------------------- | ------- | -------------------------- | ------ | ------ | ------- | - | ------ | ------------ | - | - | ----------- | ------ | - | - | ------ | ------ | -
|                                                                                       |         | For the 2004 Quarter Ended |       
|                                                                                       |         | March 31                   |        |        | June 30 |   |        | September 30 |   |   | December 31 |       
|                                                                                       |         |                            |        |        |         |   |        |              |   |   |             |       
|Total revenues                                                                         |         | $                          | 51,729 |        |         | $ | 52,159 |              |   | $ | 53,458      |        |   | $ | 46,555 |       
|Loss attributable to common shareholders before discontinued
    operations            |         |                            | (952   | )      |         |   | (823   | )            |   |   | (782        | )      |   |   | (4,694 | )     
|Discontinued operations, net of minority interest                                      |         |                            | (3,558 | )      |         |   | 456    |              |   |   | 5,503       |        |   |   | (61    | )     
|                                                                                       |         |                            |        |        |         |   |        |              |   |   |             |       
|Net income (loss) attributable to common shareholders                                  |         |                            | (4,510 | )      |         |   | (367   | )            |   |   | 4,721       |        |   |   | (4,755 | )     
|Loss attributable to common shareholders before discontinued
    operations per share: |         |                            |        |        |         |   |        |              |   |   |             |        |   |   |        |       
|                                                                                       | Basic   |                            |        | (0.05  | )       |   |        | (0.05        | ) |   |             | (0.04  | ) |   |        | (0.27  | )
|                                                                                       | Diluted |                            |        | (0.05  | )       |   |        | (0.05        | ) |   |             | (0.04  | ) |   |        | (0.27  | )
|Net income (loss) attributable to common shareholders per share:                       |         |                            |        |        |         |   |        |              |   |   |             |        |   |   |        |       
|                                                                                       | Basic   |                            |        | (0.26  | )       |   |        | (0.02        | ) |   |             | 0.27   |   |   |        | (0.27  | )
|                                                                                       | Diluted |                            |        | (0.26  | )       |   |        | (0.02        | ) |   |             | 0.27   |   |   |        | (0.27  | )
|Weighted average number of common shares outstanding (in
    thousands):               |         |                            |        |        |         |   |        |              |   |   |             |        |   |   |        |       
|                                                                                       | Basic   |                            |        | 17,397 |         |   |        | 17,412       |   |   |             | 17,447 |   |   |        | 17,450 |  
|                                                                                       | Diluted |                            |        | 17,574 |         |   |        | 17,446       |   |   |             | 17,529 |   |   |        | 17,587 |  



| |                       
| | ----------------------
| | 17. Subsequent Events:





F-29



---



##### 



BOYKIN LODGING COMPANY











|                                                                                |       |              |   |              |      |                   |                           |              |                        |                            |              |         |              |              |        |                |      |   |         |               |               |   |                 |               |  |                 |         |         |              |         |        |              |               |   |             |         |  |          |        |         |  |  |         |  |  |  |      |  |  |  |          |  | 
|------------------------------------------------------------------------------- | ----- | ------------ | - | ------------ | ---- | ----------------- | ------------------------- | ------------ | ---------------------- | -------------------------- | ------------ | ------- | ------------ | ------------ | ------ | -------------- | ---- | - | ------- | ------------- | ------------- | - | --------------- | ------------- |  | --------------- | ------- | ------- | ------------ | ------- | ------ | ------------ | ------------- | - | ----------- | ------- |  | -------- | ------ | ------- |  |  | ------- |  |  |  | ---- |  |  |  | -------- |  | 
|                                                                                |       |              |   |              |      | Costs Capitalized |                           |              | Gross Amounts at Which |                            |              |         |              |              |        |                |      |   |         | Life on Which |              
|                                                                                |       |              |   | Initial Cost |      |                   | Subsequent to Acquisition |              |                        | Carried at Close of Period |              |         | Accumulated  |              |        | Net Book       |      |   |         |               |               |   | Depreciation in |              
|                                                                                |       |              |   |              |      |                   |                           |              |                        |                            |              |         | Depreciation |              |        | Value Land and |      |   |         |               |               |   | Statement of    |              
|                                                                                |       |              |   |              |      | Buildings and     |                           |              |                        |                            | Building and |         |              |              |        | Building and   |      |   |         |               | Buildings and |   |                 | Buildings and |  |                 | Date of |         |              | Date of |        |              | Operations is |  
|Description                                                                     |       | Encumbrances |   |              | Land |                   |                           | Improvements |                        |                            | Land         |         |              | Improvements |        |                | Land |   |         | Improvements  |               |   | Total(e)(f)     |               |  | Improvements(g) |         |         | Improvements |         |        | Construction |               |   | Acquisition |         |  | Computed |       
|                                                                                |       |              |   |              |      |                   |                           |              |                        |                            |              |         |              |              |        |                |      |   |         |               |               |   |                 |               |  |                 |         |         |              |         |        |              |               |   |             |         |  |          |       
|Corporate Offices
    Cleveland, Ohio                                           |       |              |   |              |      | $                 |                          |              |                        | $                          |             |         |              | $            |       |                |      | $ | 35      |               |               | $ |                |               |  | $               | 35      |         |              | $       | 35     |              |               | $ | 27          |         |  | $        | 8      |         |  |  |         |  |  |  | 1998 |  |  |  | 10 years | 
|Doubletree Berkeley Marina
    Berkeley, California                             |       |              |   |              |      |                   |                          |              |                        |                            | 10,807       |         |              |              |       |                |      |   | 16,336  |               |               |   |                |               |  |                 | 27,143  |         |              |         | 27,143 |              |               |   | 7,446       |         |  |          | 19,697 |         |  |  | 1972    |  |  |  | 1996 |  |  |  | 20 years | 
|Buffalo Marriott
    Buffalo, New York                                          |       |              |  | (a)          |      |                   | 1,164                     |              |                        |                            | 15,174       |         |              |              |       |                |      |   | 4,729   |               |               |   | 1,164           |               |  |                 | 19,903  |         |              |         | 21,067 |              |               |   | 6,223       |         |  |          | 14,844 |         |  |  | 1981    |  |  |  | 1996 |  |  |  | 25 years | 
|Cleveland Airport Marriott
    Cleveland, Ohio                                  |       |              |  | (a)          |      |                   | 1,175                     |              |                        |                            | 11,441       |         |              |              |       |                |      |   | 9,239   |               |               |   | 1,175           |               |  |                 | 20,680  |         |              |         | 21,855 |              |               |   | 8,664       |         |  |          | 13,191 |         |  |  | 1970    |  |  |  | 1996 |  |  |  | 20 years | 
|Columbus North Marriott
    Columbus, Ohio                                      |       |              |  | (a)          |      |                   | 1,635                     |              |                        |                            | 12,873       |         |              |              |       |                |      |   | 2,834   |               |               |   | 1,635           |               |  |                 | 15,707  |         |              |         | 17,342 |              |               |   | 5,470       |         |  |          | 11,872 |         |  |  | 1981    |  |  |  | 1996 |  |  |  | 25 years | 
|Melbourne Suites Beach Resort
    Melbourne, Florida                            |       |              |  | (a)          |      |                   | 3,092                     |              |                        |                            | 7,819        |         |              |              |       |                |      |   | (2,007  | )             |               |   | 3,092           |               |  |                 | 5,812   |         |              |         | 8,904  |              |               |   | 1,781       |         |  |          | 7,123  |         |  |  | 1986    |  |  |  | 1996 |  |  |  | 30 years | 
|Best Western Fort Myers Island Gateway Hotel
    Ft. Myers, Florida             |       |              |  | (a)          |      |                   | 718                       |              |                        |                            | 2,686        |         |              |              |       |                |      |   | 1,079   |               |               |   | 718             |               |  |                 | 3,765   |         |              |         | 4,483  |              |               |   | 986         |         |  |          | 3,497  |         |  |  | 1986    |  |  |  | 1996 |  |  |  | 30 years | 
|Holiday Inn Crabtree
    Raleigh, North Carolina                                |       |              |  | (a)          |      |                   | 725                       |              |                        |                            | 6,542        |         |              |              |       |                |      |   | 1,523   |               |               |   | 725             |               |  |                 | 8,065   |         |              |         | 8,790  |              |               |   | 2,438       |         |  |          | 6,352  |         |  |  | 1974    |  |  |  | 1997 |  |  |  | 30 years | 
|Melbourne Hilton Oceanfront
    Melbourne, Florida                              |       |              |  | (a)          |      |                   | 852                       |              |                        |                            | 7,699        |         |              |              |       |                |      |   | (2,044  | )             |               |   | 852             |               |  |                 | 5,655   |         |              |         | 6,507  |              |               |   | 1,413       |         |  |          | 5,094  |         |  |  | 1986    |  |  |  | 1997 |  |  |  | 35 years | 
|Radisson Hotel & Suites Kansas City  City
    Center
    Kansas City, Missouri |       |              |  | (c)          |      |                   | 1,500                     |              |                        |                            | 20,958       |         |              |              | 3,664  |                |      |   | (5,313  | )             |               |   | 5,164           |               |  |                 | 15,645  |         |              |         | 20,809 |              |               |   | 5,499       |         |  |          | 15,310 |         |  |  | 1969    |  |  |  | 1997 |  |  |  | 30 years | 
|High Point Radisson
    High Point, North Carolina                              |       |              |  | (a)          |      |                   | 450                       |              |                        |                            | 25,057       |         |              |              |       |                |      |   | (1,781  | )             |               |   | 450             |               |  |                 | 23,276  |         |              |         | 23,726 |              |               |   | 6,294       |         |  |          | 17,432 |         |  |  | 1982    |  |  |  | 1998 |  |  |  | 30 years | 
|Pink Shell Beach Resort & Spa
    Ft. Myers, Florida                            |       |              |  | (d)          |      |                   | 6,000                     |              |                        |                            | 13,445       |         |              |              | (5,249 | )              |      |   | (10,889 | )             |               |   | 751             |               |  |                 | 2,556   |         |              |         | 3,307  |              |               |   | 1,244       |         |  |          | 2,063  |         |  |  | 1989    |  |  |  | 1998 |  |  |  | 30 years | 
|Radisson Suite Beach Resort
    Marco Island, Florida                           |       |              |   |              |      |                   | 14,570                    |              |                        |                            | 12,605       |         |              |              |       |                |      |   | 82      |               |               |   | 14,570          |               |  |                 | 12,687  |         |              |         | 27,257 |              |               |   | 983         |         |  |          | 26,274 |         |  |  | 1986    |  |  |  | 2003 |  |  |  | 30 years | 
|Doubletree Sacramento
    Sacramento, California                                |       |              |  | (b)          |      |                   | 4,400                     |              |                        |                            | 41,884       |         |              |              |       |                |      |   | 4,964   |               |               |   | 4,400           |               |  |                 | 46,848  |         |              |         | 51,248 |              |               |   | 11,376      |         |  |          | 39,872 |         |  |  | 1974    |  |  |  | 1998 |  |  |  | 30 years | 
|Doubletree Colorado Springs
    Colorado Springs, Colorado                      |       |              |  | (b)          |      |                   | 3,340                     |              |                        |                            | 31,296       |         |              |              |       |                |      |   | 1,870   |               |               |   | 3,340           |               |  |                 | 33,166  |         |              |         | 36,506 |              |               |   | 8,281       |         |  |          | 28,225 |         |  |  | 1986    |  |  |  | 1998 |  |  |  | 30 years | 
|Doubletree Boise
    Boise, Idaho                                               |       |              |  | (b)          |      |                   | 2,470                     |              |                        |                            | 23,998       |         |              |              |       |                |      |   | 4,489   |               |               |   | 2,470           |               |  |                 | 28,487  |         |              |         | 30,957 |              |               |   | 6,673       |         |  |          | 24,284 |         |  |  | 1968    |  |  |  | 1998 |  |  |  | 30 years | 
|Doubletree Omaha
    Omaha, Nebraska                                            |       |              |  | (b)          |      |                   | 1,100                     |              |                        |                            | 19,690       |         |              |              |       |                |      |   | 10,017  |               |               |   | 1,100           |               |  |                 | 29,707  |         |              |         | 30,807 |              |               |   | 6,389       |         |  |          | 24,418 |         |  |  | 1970/81 |  |  |  | 1998 |  |  |  | 30 years | 
|Doubletree Portland, Lloyd Center
    Portland, Oregon                          |       |              |  | (b)          |      |                   | 3,900                     |              |                        |                            | 61,633       |         |              |              |       |                |      |   | 5,783   |               |               |   | 3,900           |               |  |                 | 67,416  |         |              |         | 71,316 |              |               |   | 16,266      |         |  |          | 55,050 |         |  |  | 1964/81 |  |  |  | 1998 |  |  |  | 30 years | 
|Embassy Suites Southfield
    Southfield, Michigan                              |       |              |  | (a)          |      |                   | 777                       |              |                        |                            | 7,639        |         |              |              |       |                |      |   | 3,452   |               |               |   | 777             |               |  |                 | 11,091  |         |              |         | 11,868 |              |               |   | 1,830       |         |  |          | 10,038 |         |  |  | 1978    |  |  |  | 2000 |  |  |  | 30 years | 
|Doubletree Hotel San Antonio
    San Antonio, Texas                             |       |              |  | (b)          |      |                   | 1,140                     |              |                        |                            | 11,203       |         |              |              |       |                |      |   | 775     |               |               |   | 1,140           |               |  |                 | 11,978  |         |              |         | 13,118 |              |               |   | 2,100       |         |  |          | 11,018 |         |  |  | 1987    |  |  |  | 2000 |  |  |  | 30 years | 
|                                                                                |       |              |   |              |      |                   |                           |              |                        |                            |              |         |              |              |        |                |      |   |         |               |               |   |                 |               |  |                 |         |         |              |         |        |              |               |   |             |         |  |          |       
|                                                                                | Total |              |   |              |      |                   | $                         | 49,008       |                        |                            | $            | 344,449 |              |              | $      | (1,585         | )    |   | $       | 45,173        |               |   | $               | 47,423        |  |                 | $       | 389,622 |              |         | $      | 437,045      |               |   | $           | 101,383 |  |          | $      | 335,662 |  |  |         |  |  |  |      |  |  |  |          |  | 
|                                                                                |       |              |   |              |      |                   |                           |              |                        |                            |              |         |              |              |        |                |      |   |         |               |               |   |                 |               |  |                 |         |         |              |         |        |              |               |   |             |         |  |          |       






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | These hotels are collateral for the line of credit                                                                                                                                                                                                                                                                                                                                                                                             
|   
|(b) |  | These hotels are collateral for the $130,000 term note payable.                                                                                                                                                                                                                                                                                                                                                                                
|   
|(c) |  | Effective November 30, 2001, Interstate assigned their 20%
    minority interest in the joint venture which owns the hotel to
    the Partnership. The elimination of the minority interest in the
    hotel ($5,129) was accounted for as a reduction in the value of
    the building as of November 30, 2001. The hotel serves as
    collateral for certain obligations of Boykin Kansas City LLC
    related to a tax increment financing.

F-30



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##### 





|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(d) |  | This activity includes the reclassification of the net book
    value of the Sanbiel View Villas to other assets for their
    eventual sales, the disposal of cottages at the Pink Shell Beach
    Resort to make way for the construction of White Sand Villas,
    both of which occurred in 2002, and the 2003 transfer of certain
    land underlying the Captiva and Useppa buildings at the Pink
    Shell to other assets as the land will eventually be sold with
    the new Captiva Villas condominium units.
|   
|(e) |  | Aggregate cost for federal income tax reporting purposes at
    December 31, 2005 is as follows:                                                                                                                                                                                                                                                                                                                                                                                                                        

|                           |  |   |         | 
|-------------------------- |  | - | ------- | 
|Land                       |  | $ | 42,882  | 
|Buildings and improvements |  |   | 425,419 | 
|                           |  |   |        
|                           |  | $ | 468,301 | 
|                           |  |   |        



|    |  |                                                                        
|--- |  | -----------------------------------------------------------------------
|(f) |  | Reconciliation of Gross Amounts of Land, Buildings and
    Improvements

|                                 |  |   |         |  
|-------------------------------- |  | - | ------- | -
|Balance as of December 31, 2004  |  | $ | 471,572 |  
|Disposals                        |  |   | (34,580 | )
|Improvements and other additions |  |   | 53      |  
|                                 |  |   |        
|Balance as of December 31, 2005  |  | $ | 437,045 |  
|                                 |  |   |        



|    |  |                                                                             
|--- |  | ----------------------------------------------------------------------------
|(g) |  | Reconciliation of Accumulated Depreciation of Buildings and
    Improvements

|                             |  |   |         |  
|---------------------------- |  | - | ------- | -
|Balance at December 31, 2004 |  | $ | 94,664  |  
|Disposals                    |  |   | (8,486  | )
|Depreciation expense         |  |   | 15,205  |  
|                             |  |   |        
|Balance at December 31, 2005 |  | $ | 101,383 |  
|                             |  |   |        

F-31



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##### 






REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM














Grant Thornton LLP






F-32



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##### 



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM












Deloitte &
Touche LLP






F-33



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##### 



BOYKIN/ AEW, LLC AND SUBSIDIARIES











|                                      |                          |      |         |   |      |   |        |         |  
|------------------------------------- | ------------------------ | ---- | ------- | - | ---- | - | ------ | ------- | -
|                                      |                          | 2005 |         |   | 2004 |  
|                                      |                          |      |         |   |      |  
|ASSETS                                |                          |      |         |   |      |   |        |        
|Investment in hotel property          |                          | $    |        |   |      | $ | 75,160 |        
|                                      | Accumulated depreciation |      |         |  |      |   |        | (11,489 | )
|                                      |                          |      |         |   |      |  
|Investment in hotel property  net    |                          |      |        |   |      |   | 63,671 |        
|Cash and cash equivalents             |                          |      | 284     |   |      |   | 1,646  |        
|Restricted cash                       |                          |      | 2,523   |   |      |   |       |        
|Accounts receivable                   |                          |      | 21      |   |      |   | 404    |        
|Deferred expenses  net               |                          |      |        |   |      |   | 33     |        
|Other assets                          |                          |      |        |   |      |   | 221    |        
|                                      |                          |      |         |   |      |  
|                                      |                          | $    | 2,828   |   |      | $ | 65,975 |        
|                                      |                          |      |         |   |      |  
|LIABILITIES AND MEMBERS EQUITY       |                          |      |         |   |      |   |        |        
|Mortgage note payable                 |                          | $    |        |   |      | $ | 36,116 |        
|Accounts payable and accrued expenses |                          |      | 1,934   |   |      |   | 2,593  |        
|Minority interest in joint venture    |                          |      | 224     |   |      |   | 6,781  |        
|MEMBERS EQUITY                       |                          |      |         |   |      |   |        |        
|Contributed capital                   |                          |      | 29,476  |   |      |   | 29,476 |        
|Distributions in excess of income     |                          |      | (28,806 | ) |      |   | (8,991 | )      
|                                      |                          |      |         |   |      |  
|Total members equity                 |                          |      | 670     |   |      |   | 20,485 |        
|                                      |                          |      |         |   |      |  
|                                      |                          | $    | 2,828   |   |      | $ | 65,975 |        
|                                      |                          |      |         |   |      |  



F-34



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##### 



BOYKIN/ AEW, LLC AND SUBSIDIARIES











|                                                   |                                                     |                                 |        |        |        |   |        |        |        |   |        |        |        | 
|-------------------------------------------------- | --------------------------------------------------- | ------------------------------- | ------ | ------ | ------ | - | ------ | ------ | ------ | - | ------ | ------ | ------ | 
|                                                   |                                                     | 2005                            |        |        | 2004   |   |        | 2003   |       
|                                                   |                                                     |                                 |        |        |        |   |        |        |       
|Revenues:                                          |                                                     |                                 |        |        |        |   |        |        |        |   |        |       
|                                                   | Hotel revenues:                                     |                                 |        |        |        |   |        |        |        |   |        |        |       
|                                                   |                                                     | Rooms                           |        | $      | 1,842  |   |        | $      | 14,131 |   |        | $      | 12,929 | 
|                                                   |                                                     | Food and beverage               |        |        | 56     |   |        |        | 973    |   |        |        | 1,301  | 
|                                                   |                                                     | Other                           |        |        | 111    |   |        |        | 989    |   |        |        | 712    | 
|                                                   |                                                     |                                 |        |        |        |   |        |        |       
|                                                   | Total revenues                                      |                                 |        | 2,009  |        |   |        | 16,093 |        |   |        | 14,942 |       
|                                                   |                                                     |                                 |        |        |        |   |        |        |       
|Expenses:                                          |                                                     |                                 |        |        |        |   |        |        |        |   |        |       
|                                                   | Hotel operating expenses:                           |                                 |        |        |        |   |        |        |        |   |        |        |       
|                                                   |                                                     | Rooms                           |        |        | 906    |   |        |        | 4,129  |   |        |        | 3,475  | 
|                                                   |                                                     | Food and beverage               |        |        | 149    |   |        |        | 894    |   |        |        | 1,378  | 
|                                                   |                                                     | Other                           |        |        | 92     |   |        |        | 387    |   |        |        | 338    | 
|                                                   |                                                     | General and administrative      |        |        | 512    |   |        |        | 1,783  |   |        |        | 1,258  | 
|                                                   |                                                     | Marketing and franchise         |        |        | 205    |   |        |        | 1,785  |   |        |        | 1,862  | 
|                                                   |                                                     | Utilities and maintenance       |        |        | 411    |   |        |        | 1,720  |   |        |        | 1,525  | 
|                                                   |                                                     | Management fees  related party |        |        | 60     |   |        |        | 483    |   |        |        | 446    | 
|                                                   |                                                     |                                 |        |        |        |   |        |        |       
|                                                   | Total hotel operating expenses                      |                                 |        | 2,335  |        |   |        | 11,181 |        |   |        | 10,282 |       
|                                                   | Property taxes and insurance and other              |                                 |        | 385    |        |   |        | 1,514  |        |   |        | 1,054  |       
|                                                   | Real estate related depreciation and amortization   |                                 |        | 772    |        |   |        | 3,102  |        |   |        | 3,099  |       
|                                                   | Asset management fees                               |                                 |        | 49     |        |   |        | 196    |        |   |        | 191    |       
|                                                   |                                                     |                                 |        |        |        |   |        |        |       
|                                                   |                                                     | Total operating expenses        |        |        | 3,541  |   |        |        | 15,993 |   |        |        | 14,626 | 
|                                                   |                                                     |                                 |        |        |        |   |        |        |       
|                                                   |                                                     | Operating income (loss)         |        |        | (1,532 | ) |        |        | 100    |   |        |        | 316    | 
|                                                   | Investment income and other                         |                                 |        | 57     |        |   |        | 35     |        |   |        | 14     |       
|                                                   | Interest expense                                    |                                 |        | (512   | )      |   |        | (1,760 | )      |   |        | (1,716 | )     
|                                                   | Amortization of deferred financing costs            |                                 |        | (133   | )      |   |        | (167   | )      |   |        | (277   | )     
|                                                   | Other amortization                                  |                                 |        |       |        |   |        | (122   | )      |   |        | (5     | )     
|                                                   | Income taxes                                        |                                 |        | (126   | )      |   |        |       |        |   |        |       |       
|                                                   | Minority interest in (income) loss of joint venture |                                 |        | (6,857 | )      |   |        | 475    |        |   |        | 414    |       
|                                                   |                                                     |                                 |        |        |        |   |        |        |       
|Loss before gain (loss) on sale/disposal of assets |                                                     |                                 | (9,103 | )      |        |   | (1,439 | )      |        |   | (1,254 | )     
|                                                   |                                                     |                                 |        |        |        |   |        |        |       
|                                                   | Gain (loss) on sale/disposal of assets              |                                 |        | 29,518 |        |   |        | (1     | )      |   |        | (5     | )     
|                                                   |                                                     |                                 |        |        |        |   |        |        |       
|Net income (loss)                                  |                                                     | $                               | 20,415 |        |        | $ | (1,440 | )      |        | $ | (1,259 | )     
|                                                   |                                                     |                                 |        |        |        |   |        |        |       



F-35



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##### 



BOYKIN/ AEW, LLC AND SUBSIDIARIES











|                             |                               |             |        |               |              |   |         |         |   |   |        |         |  
|---------------------------- | ----------------------------- | ----------- | ------ | ------------- | ------------ | - | ------- | ------- | - | - | ------ | ------- | -
|                             |                               |             |        | Distributions |              |   |        
|                             |                               | Contributed |        |               | in Excess of |   |         |        
|                             |                               | Capital     |        |               | Income       |   |         | Total   |  
|                             |                               |             |        |               |              |   |         |         |  
|Balance at January 1, 2003   |                               | $           | 27,901 |               |              | $ | (5,880  | )       |   | $ | 22,021 |        
|                             | Capital contributions         |             |        | 825           |              |   |         |        |   |   |        | 825     |  
|                             | Distributions paid to members |             |        |              |              |   |         | (187    | ) |   |        | (187    | )
|                             | Net loss                      |             |        |              |              |   |         | (1,259  | ) |   |        | (1,259  | )
|                             |                               |             |        |               |              |   |         |         |  
|Balance at December 31, 2003 |                               |             | 28,726 |               |              |   | (7,326  | )       |   |   | 21,400 |        
|                             |                               |             |        |               |              |   |         |         |  
|                             | Capital contributions         |             |        | 750           |              |   |         |        |   |   |        | 750     |  
|                             | Distributions paid to members |             |        |              |              |   |         | (225    | ) |   |        | (225    | )
|                             | Net loss                      |             |        |              |              |   |         | (1,440  | ) |   |        | (1,440  | )
|                             |                               |             |        |               |              |   |         |         |  
|Balance at December 31, 2004 |                               |             | 29,476 |               |              |   | (8,991  | )       |   |   | 20,485 |        
|                             | Distributions paid to members |             |        |              |              |   |         | (40,230 | ) |   |        | (40,230 | )
|                             | Net income                    |             |        |              |              |   |         | 20,415  |   |   |        | 20,415  |  
|                             |                               |             |        |               |              |   |         |         |  
|Balance at December 31, 2005 |                               | $           | 29,476 |               |              | $ | (28,806 | )       |   | $ | 670    |        
|                             |                               |             |        |               |              |   |         |         |  



F-36



---



##### 



BOYKIN/AEW, LLC AND SUBSIDIARIES











|                                                         |                                                                                                             |                                               |                                       |         |         |        |       |        |       |      |        |        |       |      |  
|-------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------- | --------------------------------------------- | ------------------------------------- | ------- | ------- | ------ | ----- | ------ | ----- | ---- | ------ | ------ | ----- | ---- | -
|                                                         |                                                                                                             | 2005                                          |                                       |         | 2004    |        |       | 2003   |      
|                                                         |                                                                                                             |                                               |                                       |         |         |        |       |        |      
|Cash flows from operating activities:                    |                                                                                                             |                                               |                                       |         |         |        |       |        |       |      |        |       
|                                                         | Net income (loss)                                                                                           |                                               | $                                     | 20,415  |         |        | $     | (1,440 | )     |      | $      | (1,259 | )    
|                                                         | Adjustments to reconcile net income (loss) to net cash flow
    provided by (used in) operating activities: |                                               |                                       |         |         |        |       |        |       |      |        |        |      
|                                                         |                                                                                                             | Depreciation and amortization                 |                                       |         | 905     |        |       |        | 3,391 |      |        |        | 3,381 |     
|                                                         |                                                                                                             | (Gain) loss on sale/disposal of assets        |                                       |         | (29,518 | )      |       |        | 1     |      |        |        | 5     |     
|                                                         |                                                                                                             | Minority interest                             |                                       |         | 6,857   |        |       |        | (475  | )    |        |        | (414  | )   
|                                                         |                                                                                                             | Changes in operating assets and liabilities - |                                       |         |         |        |       |        |       |      |        |        |       |     
|                                                         |                                                                                                             |                                               | Accounts receivable                   |         |         | 383    |       |        |       | 478  |        |        |       | (59  | )
|                                                         |                                                                                                             |                                               | Accounts payable and accrued expenses |         |         | (2,239 | )     |        |       | (291 | )      |        |       | (401 | )
|                                                         |                                                                                                             |                                               | Other                                 |         |         | 221    |       |        |       | 2    |        |        |       | 21   |  
|                                                         |                                                                                                             |                                               |                                       |         |         |        |       |        |      
|Net cash flow provided by (used in) operating activities |                                                                                                             |                                               | (2,976                                | )       |         |        | 1,666 |        |       |      | 1,274  |       
|                                                         |                                                                                                             |                                               |                                       |         |         |        |       |        |      
|Cash flows from investing activities:                    |                                                                                                             |                                               |                                       |         |         |        |       |        |       |      |        |       
|                                                         | Changes in restricted cash                                                                                  |                                               |                                       | (2,523  | )       |        |       |       |       |      |        |       |      
|                                                         | Improvements and additions to hotel property, net                                                           |                                               |                                       | (23     | )       |        |       | (614   | )     |      |        | (1,946 | )    
|                                                         | Net proceeds from sale of assets                                                                            |                                               |                                       | 94,020  |         |        |       |       |       |      |        |       |      
|                                                         |                                                                                                             |                                               |                                       |         |         |        |       |        |      
|Net cash flow provided by (used in) investing activities |                                                                                                             |                                               | 91,474                                |         |         |        | (614  | )      |       |      | (1,946 | )     
|                                                         |                                                                                                             |                                               |                                       |         |         |        |       |        |      
|Cash flows from financing activities:                    |                                                                                                             |                                               |                                       |         |         |        |       |        |       |      |        |       
|                                                         | Distributions to members                                                                                    |                                               |                                       | (40,230 | )       |        |       | (225   | )     |      |        | (187   | )    
|                                                         | Borrowings of term note                                                                                     |                                               |                                       |        |         |        |       |       |       |      |        | 1,344  |      
|                                                         | Payment of term note                                                                                        |                                               |                                       | (36,116 | )       |        |       | (1,120 | )     |      |        | (764   | )    
|                                                         | Payment of deferred financing costs                                                                         |                                               |                                       | (100    | )       |        |       | (131   | )     |      |        |       |      
|                                                         | Net contributions from (distributions to) joint venture partner                                             |                                               |                                       | (13,414 | )       |        |       | 175    |       |      |        | 212    |      
|                                                         | Capital contributions                                                                                       |                                               |                                       |        |         |        |       | 750    |       |      |        | 825    |      
|                                                         |                                                                                                             |                                               |                                       |         |         |        |       |        |      
|Net cash flow provided by (used in) financing activities |                                                                                                             |                                               | (89,860                               | )       |         |        | (551  | )      |       |      | 1,430  |       
|                                                         |                                                                                                             |                                               |                                       |         |         |        |       |        |      
|Net change in cash and cash equivalents                  |                                                                                                             |                                               | (1,362                                | )       |         |        | 501   |        |       |      | 758    |       
|Cash and cash equivalents, beginning of year             |                                                                                                             |                                               | 1,646                                 |         |         |        | 1,145 |        |       |      | 387    |       
|                                                         |                                                                                                             |                                               |                                       |         |         |        |       |        |      
|Cash and cash equivalents, end of year                   |                                                                                                             | $                                             | 284                                   |         |         | $      | 1,646 |        |       | $    | 1,145  |       
|                                                         |                                                                                                             |                                               |                                       |         |         |        |       |        |      



F-37



---



##### 



BOYKIN/AEW, LLC AND SUBSIDIARIES













| |               
| | --------------
| | 1. Background:













| |                                               
| | ----------------------------------------------
| | 2. Summary of Significant Accounting Policies:

Principles of Consolidation


Investment in Hotel Property




|                              |  |      |         |  
|----------------------------- |  | ---- | ------- | -
|                              |  | 2004 |        
|                              |  |      |        
|Land                          |  | $    | 9,100   |  
|Buildings and improvements    |  |      | 58,387  |  
|Furniture and equipment       |  |      | 7,423   |  
|Construction in progress      |  |      | 250     |  
|                              |  |      |        
|                              |  |      | 75,160  |  
|Less accumulated depreciation |  |      | (11,489 | )
|                              |  |      |        
|Total                         |  | $    | 63,671  |  
|                              |  |      |        

F-38



---



##### 



Cash and Cash Equivalents


Restricted Cash


Inventories first-in,


Accounts Receivable


Deferred Expenses  Net


|                         |  |      |     |  
|------------------------ |  | ---- | --- | -
|                         |  | 2004 |    
|                         |  |      |    
|Financing costs          |  | $    | 130 |  
|Accumulated amortization |  |      | (97 | )
|                         |  |      |    
|Total                    |  | $    | 33  |  
|                         |  |      |    



Minority Interest


Hotel Revenues


Fair Value of Financial Instruments


Income Taxes Accounting
for Income Taxes


New Accounting Pronouncements


Use of Estimates




| |                          
| | -------------------------
| | 3. Mortgage Note Payable:



F-39



---



##### 







| |                                
| | -------------------------------
| | 4. Percentage Lease Agreements:











| |                               
| | ------------------------------
| | 5. Related Party Transactions:









| |                                                           
| | ----------------------------------------------------------
| | 6. Statements of Cash Flows, Supplemental
    Disclosures:



F-40



---



##### 





BOYKIN/ AEW, LLC





SCHEDULE III  REAL ESTATE AND ACCUMULATED
DEPRECIATION


AS OF DECEMBER 31, 2005




|                            |  |              |   |              |      |               |              |                    |      |               |              |                |      |              |              |       |     |                 |     |               |              |         |              |  |         |             |   |               |          |   |   |  |  |   |   |  |  |   |   |  |  |  |  |  |  |  |  |  |  |  |  | 
|--------------------------- |  | ------------ | - | ------------ | ---- | ------------- | ------------ | ------------------ | ---- | ------------- | ------------ | -------------- | ---- | ------------ | ------------ | ----- | --- | --------------- | --- | ------------- | ------------ | ------- | ------------ |  | ------- | ----------- | - | ------------- | -------- | - | - |  |  | - | - |  |  | - | - |  |  |  |  |  |  |  |  |  |  |  |  | 
|                            |  |              |   |              |      |               |              | Costs Capitalized  |      | Gross Amounts |              |                |      |              |              |       |     |                 |     |              
|                            |  |              |   |              |      | Subsequent to |              | at Which Carried   |      | Accumulated   |              |                |      |              |              |       |     | Life on Which   |    
|                            |  |              |   | Initial Cost |      | Acquisition   |              | at Close of Period |      | Depreciation  |              | Net Book       |      |              |              |       |     | Depreciation in |    
|                            |  |              |   |              |      |               |              |                    |      | Buildings and |              | Value Land and |      |              |              |       |     | Statement of    |    
|                            |  |              |   |              |      | Buildings and |              |                    |      | Building and  |              |                |      | Building and |              | Total |     | Improvements    |     | Buildings and |              | Date of |              |  | Date of |             |   | Operations is |         
|Description                 |  | Encumbrances |   |              | Land |               | Improvements |                    | Land |               | Improvements |                | Land |              | Improvements |       | (a) |                 | (b) |               | Improvements |         | Construction |  |         | Acquisition |   |               | Computed |  
|                            |  |              |   |              |      |               |              |                    |      |               |              |                |      |              |              |       |     |                 |     |               |              |         |              |  |         |             |   |               |          |  
|Hotel 71, Chicago, Illinois |  |              |  |              |      | $             |             |                    |      | $             |             |                |      | $            |             |       |     | $               |    |               |              | $       |             |  |         | $           |  |               |          | $ |  |  |  | $ |  |  |  | $ |  |  |  |  |  |  |  |  |  |  |  |  |  | 






|    |  |                                                                        
|--- |  | -----------------------------------------------------------------------
|(a) |  | Reconciliation of Gross Amounts of Land, Buildings and
    Improvements

|                                 |  |   |         |  
|-------------------------------- |  | - | ------- | -
|Balance as of December 31, 2004  |  | $ | 67,487  |  
|Disposals                        |  |   | (67,497 | )
|Improvements and other additions |  |   | 10      |  
|                                 |  |   |        
|Balance as of December 31, 2005  |  | $ |        |  
|                                 |  |   |        



|    |  |                                                                             
|--- |  | ----------------------------------------------------------------------------
|(b) |  | Reconciliation of Accumulated Depreciation of Buildings and
    Improvements

|                             |  |   |        |  
|---------------------------- |  | - | ------ | -
|Balance at December 31, 2004 |  | $ | 8,779  |  
|Disposals                    |  |   | (9,295 | )
|Depreciation expense         |  |   | 516    |  
|                             |  |   |       
|Balance at December 31, 2005 |  | $ |       |  
|                             |  |   |       

F-41



---



##### 



SIGNATURES


Pursuant to the requirements of Section 13 or 15(d) of
the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.




| |                       
| | ----------------------
| | BOYKIN LODGING COMPANY



| |     |                     
| | --- | --------------------
| | By: | /s/ Robert W. Boykin

| |                          
| | -------------------------
| |                          
| | Robert W. Boykin         
| | Chairman of the Board and
| | Chief Executive Officer  

Pursuant to the requirements of the Securities Exchange Act
of 1934, this report has been signed below by the following
persons on behalf of the registrant and in the capacities and on
the dates indicated.


|               |  |                                                                                                                                                 
|-------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------
|              
|March 15, 2006 |  | /s/ Robert W. BoykinRobert W. Boykin
    Chairman of the Board and
    Chief Executive Officer
    (Principal Executive Officer)                
|              
|March 15, 2006 |  | /s/ Shereen P. JonesShereen P. Jones
    Executive Vice President, Chief Financial
    and Investment Officer
    (Principal Accounting Officer)
|              
|March 15, 2006 |  | /s/ Ivan J. WinfieldIvan J. Winfield
    Director                                                                                               
|              
|March 15, 2006 |  | /s/ Lee C. Howley, Jr.Lee C. Howley, Jr.
    Director                                                                                           
|              
|March 15, 2006 |  | /s/ William H. SchecterWilliam H. Schecter
    Director                                                                                         
|              
|March 15, 2006 |  | /s/ Albert T. AdamsAlbert T. Adams
    Director                                                                                                 
|              
|March 15, 2006 |  | /s/ James B. MeatheJames B. Meathe
    Director                                                                                                 
|              
|March 15, 2006 |  | /s/ Mark J. NascaMark J. Nasca
    Director                                                                                                     



---



##### 



EXHIBIT INDEX


| |       |     |  |                                                                                                                                                                                             
| | ----- | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 3.1   | (a) |  | Amended and Restated Articles of Incorporation, as amended                                                                                                                                  
| | 3.2   | (b) |  | Code of Regulations                                                                                                                                                                         
| | 4.1   | (b) |  | Specimen Share Certificate                                                                                                                                                                  
| | 4.2   | (a) |  | Dividend Reinvestment and Optional Share Purchase Plan                                                                                                                                      
| | 4.3   | (e) |  | Shareholder Rights Agreement, dated as of May 25, 1999
    between Boykin Lodging Company and National City Bank as rights
    agent                                                        
| | 4.3a  | (f) |  | Amendment to Shareholder Rights Agreement, dated as of
    December 31, 2001                                                                                                                
| | 10.1  | (h) |  | Third Amended and Restated Agreement of Limited Partnership of
    Boykin Hotel Properties, L.P.                                                                                            
| | 10.2  | (b) |  | Form of Registration Rights Agreement                                                                                                                                                       
| | 10.3  | (b) |  | Long-Term Incentive Plan*                                                                                                                                                                   
| | 10.4  | (b) |  | Directors Deferred Compensation Plan*                                                                                                                                                      
| | 10.5  | (b) |  | Employment Agreement between the Company and Robert W. Boykin*                                                                                                                              
| | 10.6  | (b) |  | Form of Percentage Lease                                                                                                                                                                    
| | 10.7  | (b) |  | Intercompany Convertible Note                                                                                                                                                               
| | 10.8  | (b) |  | Agreements with General Partners of the Contributed Partnerships                                                                                                                            
| | 10.9  | (b) |  | Form of Noncompetition Agreement                                                                                                                                                            
| | 10.10 | (b) |  | Alignment of Interests Agreement                                                                                                                                                            
| | 10.11 | (c) |  | Description of Employment Arrangement between the Company and
    Richard C. Conti*                                                                                                         
| | 10.12 | (d) |  | Limited Liability Company Agreement of Boykin/ AEW LLC dated as
    of February 1, 1999                                                                                                     
| | 10.13 | (d) |  | Stock Purchase Option Agreement by and among Boykin Lodging
    Company, Boykin Hotel Properties, L.P. and AEW
    Partners III, L.P. dated as of February 1, 1999                          
| | 10.14 | (d) |  | Warrant to Purchase Class A Cumulative Preferred Stock,
    Series 1999-A of Boykin Lodging Company dated as of
    February 1, 1999                                                        
| | 10.15 | (d) |  | Registration Rights Agreement by and among Boykin Lodging
    Company and AEW Partners III, L.P. dated as of
    February 1, 1999                                                           
| | 10.16 | (f) |  | Master Contribution Agreement between BMC, JABO LLC, the Company
    and the Partnership dated as of December 31, 2001                                                                      
| | 10.17 | (f) |  | Form of Hotel Management Agreement*                                                                                                                                                         
| | 10.18 | (f) |  | Registration Rights Agreement between the Company and JABO LLC
    dated January 1, 2002                                                                                                    
| | 10.19 | (i) |  | Description of Employment Arrangement between the Company and
    Shereen P. Jones*                                                                                                         
| | 10.20 | (j) |  | Hotel Purchase and Sale Agreement; Hotel 71 Chicago, Illinois,
    By and Between Boykin Chicago L.L.C., as Seller and the Falor
    Companies, Inc., as Purchaser                          
| | 10.21 | (j) |  | Modification Letter  Stock Purchase Option Agreement
    by and among Boykin Lodging Company, Boykin Hotel Properties,
    L.P. and AEW Partners III, L.P. dated as of
    February 1, 1999
| | 10.22 | (j) |  | Modification of Employment Agreement between the Company and
    Robert W. Boykin*                                                                                                          
| | 10.23 | (k) |  | Boykin Lodging Company 2005 Long-Term Incentive Plan*                                                                                                                                       
| | 10.24 | (l) |  | Second Amendment to Employment Agreement between the Company and
    Robert W. Boykin*                                                                                                      
| | 10.25 | (l) |  | Amended and Restated COO Severance Plan*                                                                                                                                                    
| | 10.26 | (l) |  | Amended and Restated CFO/ CIO Severance Plan*                                                                                                                                               
| | 10.27 | (l) |  | Amended and Restated Key Employee Severance Plan (Sr. Vice
    Presidents and Vice Presidents)*                                                                                             
| | 12    |     |  | Statement re Computation of Ratios                                                                                                                                                          
| | 16.1  | (g) |  | Letter of Deloitte & Touche LLP required by
    Item 304 of Regulation S-K                                                                                                                  
| | 21    |     |  | Subsidiaries of the Registrant                                                                                                                                                              
| | 23.1  |     |  | Consent of Independent Registered Public Accounting Firm                                                                                                                                    
| | 23.2  |     |  | Consent of Independent Registered Public Accounting Firm                                                                                                                                    
| | 31.1  |     |  | Certification Pursuant to Rule 13a-14(a), in Accordance
    with Section 302 of the Sarbanes-Oxley Act of 2002                                                                              
| | 31.2  |     |  | Certification Pursuant to Rule 13a-14(a), in Accordance
    with Section 302 of the Sarbanes-Oxley Act of 2002                                                                              
| | 32.1  |     |  | Certification Pursuant to 18 U.S.C. Section 1350, as
    Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act
    of 2002                                                              
| | 32.2  |     |  | Certification Pursuant to 18 U.S.C. Section 1350, as
    Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act
    of 2002                                                              






|    |  |                                                                                                                                                                                                                                                                                 
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Incorporated by reference from Boykins
    Form 10-Q for the
    quarter ended June 30, 1999.                                                                                                                                                                                  
|   
|(b) |  | Incorporated by reference from Amendment No. 3 to
    Boykins Registration Statement on
    Form S-11
    (Registration
    No. 333-6341) (the
    Form S-11)
    filed on October 24, 1996. Each of the above exhibits has
    the same exhibit number in the
    Form S-11.
|   
|(c) |  | Incorporated by reference from Boykins
    Form 10-Q for the
    quarter ended June 30, 1998.                                                                                                                                                                                  
|   
|(d) |  | Incorporated by reference from Boykins
    Form 10-Q for the
    quarter ended March 31, 1999.                                                                                                                                                                                 
|   
|(e) |  | Incorporated by reference as Exhibit 1 from Boykins
    Registration Statement on Form 8-A filed on June 10,
    1999.                                                                                                                                                         
|   
|(f) |  | Incorporated by reference from Boykins
    Form 8-K filed on
    January 14, 2002.                                                                                                                                                                                             
|   
|(g) |  | Incorporated by reference from Boykins
    Form 8-K filed on
    April 20, 2004.                                                                                                                                                                                               
|   
|(h) |  | Incorporated by reference from Boykins
    Form 8-K filed on
    October 4, 2002.                                                                                                                                                                                              
|   
|(i) |  | Incorporated by reference from Boykins
    Form 10-K for the
    year ended December 31, 2002.                                                                                                                                                                                 
|   
|(j) |  | Incorporated by reference from Boykins
    Form 10-K for the
    year ended December 31, 2004.                                                                                                                                                                                 
|   
|(k) |  | Incorporated by reference from Boykins
    Form 8-K filed on
    May 26, 2005.                                                                                                                                                                                                 
|   
|(l) |  | Incorporated by reference from Boykins
    Form 8-K filed on
    June 7, 2005.                                                                                                                                                                                                 
|   
|*   |  | Management contract or compensatory plan or arrangement.