##### Table of Contents









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, 2004                                                 
|          
|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(Address of Principal Executive Office) |  | 44115(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:




þ o




þ o






DOCUMENTS INCORPORATED BY REFERENCE:












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TABLE OF CONTENTS



|                                                           |                                                                                                                      |  |  |  |  |  |  | 
|---------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------- |  |  |  |  |  |  | 
|PART I                                                    
|                                                           | Item 1. Business                                                                                                    
|                                                           | Item 3. Legal Proceedings                                                                                           
|                                                           | 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
|                                                           | Item 6. Selected Financial Data                                                                                     
|                                                           | Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations                       
|                                                           | Item 7A. Quantitative and Qualitative Disclosures About Market Risk                                                 
|                                                           | Item 8. Consolidated Financial Statements and Supplemental Data                                                     
|                                                           | Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                        
|                                                           | Item 9A. Controls and Procedures                                                                                    
|                                                           | Item 9B. Other Information                                                                                          
|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                                                                     
|PART IV                                                   
|                                                           | Item 15. Exhibits, Financial Statement Schedules                                                                    
|INDEX TO FINANCIAL STATEMENTS                             
|REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM   
|REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM   
|SIGNATURES                                                
|EXHIBIT INDEX                                             
|EX-10.22 HOTEL PURCHASE & SALE AGREEMENT                  
|EX-10.23 MODIFICATION LETTER                              
|EX-10.24 MODIFICATION OF EMPLOYMENT AGREEMENT             
|EX-12 COMPUTATION OF RATIOS                               
|EX-21 SUBSIDIARIES OF THE REGISTRANT                      
|EX-23.1 CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCT FIRM
|EX-23.2 CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCT FIRM
|EX-31.1 302 CERTIFICATION CEO                             
|EX-31.2 302 CERTIFICATION CFO                             
|EX-32.1 906 CERTIFICATION CEO                             
|EX-32.2 906 CERTIFICATION CFO                             



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##### Table of Contents



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



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##### Table of Contents





| |                             
| | ----------------------------
| | Business and Growth Strategy





| |   |                                                       
| | - | ------------------------------------------------------
| |  | Maximizing operating cash flows of our hotels through:



| |   |                                                                          
| | - | -------------------------------------------------------------------------
| |  | Aggressive asset management to maximize revenue and control
    expenses;
|
| |  | Reinvestment in our hotels; and                                          
|
| |  | Strategic brand positioning.                                             



| |   |                                                                                                        
| | - | -------------------------------------------------------------------------------------------------------
| |  | Identifying opportunities to enhance returns on our hotels by
    investing in new initiatives such as:



| |   |                                                                                                                                                                                                           
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Developing ancillary conference centers meeting International
    Association of Conference Centers (IACC) standards
    within certain of our existing hotels and in newly acquired
    properties; and
|
| |  | Expanding and redeveloping our properties to improve asset
    performance.                                                                                                                               



| |   |                                                                                                                                                          
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Managing our hotel portfolio mix to enhance its potential for
    growth in RevPAR, meaning room revenue per available room, and
    operating income by:



| |   |                                                                                                                                           
| | - | ------------------------------------------------------------------------------------------------------------------------------------------
| |  | Identifying key markets with high barriers to entry for future
    acquisitions;                                                          
|
| |  | Acquiring upscale commercial and resort hotels located in these
    key markets;                                                          
|
| |  | Acquiring assets with repositioning and rebranding
    opportunities; and                                                                 
|
| |  | Selling assets that we believe have lower long-term growth
    prospects because of their physical characteristics or market
    location.





| |                                             
| | --------------------------------------------
| | Highlights from 2004 and Recent Developments



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | We sold or otherwise divested of five hotels during 2004,
    generating gross proceeds of $86.4 million. These hotels
    included the Doubletree Portland Downtown, Marriotts Hunt
    Valley Inn, the Holiday Inn Minneapolis West, the Radisson Hotel
    Mount Laurel and the Ramada Inn Bellevue Center.                                                                                                                                                                                                                                                                                                                                                                                
|
| |  | In late March 2004, we held the grand opening of the White Sand
    Villas hotel condominium tower at our Pink Shell Beach Resort
    & Spa (the Pink Shell). The sales of all 91
    available units were closed by April. The profit realized from
    this development project was approximately $12.5 million.
    Additionally, all unit owners have entered into agreements with
    the resort to put their units back to the resort for use as
    hotel rooms.                                                                                                                                                                                                                      
|
| |  | Our next condominium hotel project is currently being marketed
    for sale. This project, Captiva Villas, is the final component
    to the redevelopment of the Pink Shell. It will contain 43
    beach-front units. Similar to White Sand Villas, 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. Zoning for the new building has
    been approved. Buildings previously located on the site were
    demolished in February 2005 and construction of the new building
    is set to commence once a sufficient level of pre-sales have
    been achieved.
|
| |  | In April 2004, we completed our third ancillary conference
    center project, located at our Doubletree Portland Lloyd Center
    hotel. The physical characteristics and the service standards
    within the facility were designed to meet criteria established
    by IACC. Upon completion of the project, the facilities were
    inspected by, and awarded membership to, IACC.                                                                                                                                                                                                                                                                                                        
|
| |  | In July 2004, the Indiana Gaming Commission (the
    Commission) selected Trump Hotels & Casino
    Resorts (Trump) to develop and operate a casino in
    French Lick, Indiana. In March 2005, the Commission announced
    that they would seek a replacement for the Trump group which is
    attempting to reorganize in bankruptcy court. The Commission has
    indicated that they intend to move quickly to                                                                                                                                                                                                                                                                        

2



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | reinstitute a selection process for a new operator. The other
    two final applicants to develop and operate the casino have each
    expressed their intent to make new proposals. The process to
    choose a new operator could take several months. Once a new
    operator is chosen, the development and opening of a casino
    remains subject to many items, including the operators
    ability to raise financing to fund construction of a casino.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| |  | Five of our hotels were impacted by hurricanes in Florida in
    August and September. Two hotels, the Best Western Fort Myers
    Island Gateway Hotel and the Radisson Suite Beach
    Resort  Marco Island, were evacuated for several
    days, suffered minimal damage and were reopened. The Pink Shell
    was evacuated for approximately one week. The hurricane damaged
    the 43 units in the Useppa and Captiva buildings, which
    were subsequently demolished to make way for the new Captiva
    Villas building, while the remainder of the resort reopened. At
    the beginning of September, Hurricane Frances hit the east coast
    of Florida, where the Melbourne Hilton Oceanfront and the
    Melbourne Quality Suites are located. Both hotels were evacuated
    prior to the storm and both hotels remain closed due to the
    damage from the storm. The hotels in Melbourne are not expected
    to resume normal operations until late 2005 or early 2006,
    subject to the availability of labor and materials. We expect
    that a substantial portion of the costs to repair the properties
    will be covered under our insurance policies. Additionally, we
    also maintain business interruption insurance to partially
    offset the effects of the closure on our operating results.
|
| |  | Boykin Chicago, L.L.C., a joint venture between AEW
    Partners III, L.P., and us, has entered into an agreement
    to sell Hotel 71 in Chicago, Illinois. The completion of
    the sale, which is subject to customary closing conditions, is
    expected to occur during the first quarter of 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              



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





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



| |                                         
| | ----------------------------------------
| | Boykin Lodging Companys Hotel Portfolio





| |                                   
| | ----------------------------------
| | Application of Business Strategies



| |                               
| | ------------------------------
| | Maximizing Operating Cash Flow



| |                            
| | ---------------------------
| | Aggressive Asset Management





| |                                 
| | --------------------------------
| | Reinvestment in Hotel Properties



3



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##### Table of Contents





| |                            
| | ---------------------------
| | Strategic Brand Positioning





| |   |                                                                          
| | - | -------------------------------------------------------------------------
| |  | Brand strengths and their current presence in the specific
    market;   
|
| |  | Expected contribution to revenues;                                       
|
| |  | Expected capital requirements and ongoing costs of the
    franchise; and
|
| |  | Strengthening strategic franchisor relationships.                        





| |                                         
| | ----------------------------------------
| | Initiatives to Enhance Returns on Hotels



| |                                  
| | ---------------------------------
| | IACC Ancillary Conference Centers











| |                                     
| | ------------------------------------
| | Property Redevelopment and Expansion





4



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##### Table of Contents







| |                                 
| | --------------------------------
| | Managing Our Hotel Portfolio Mix



| |                                                                  
| | -----------------------------------------------------------------
| | Acquiring Upscale Commercial and Resort Hotels in Key
    Markets







| |                                                                               
| | ------------------------------------------------------------------------------
| | Disposing of Assets to Provide Capital for Better Investment
    Opportunities







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





|                                                                |  |           |    | 
|--------------------------------------------------------------- |  | --------- | -- | 
|                                                                |  | Number    |   
|Manager                                                         |  | of Hotels |   
|                                                                |  |           |   
|Boykin Management Company Limited Liability Company
    (BMC) |  |           | 21 | 
|Concord Hospitality Enterprises (Concord)                     |  |           | 1  | 
|Chambers Group                                                  |  |           | 1  | 
|Outrigger Lodging Services (Outrigger)                        |  |           | 1  | 
|                                                                |  |           |   
|                                                                |  |           | 24 | 
|                                                                |  |           |   

BMC.




5



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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.


Chambers Group.


Outrigger.




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







| |   |                                                                                                                                                                                                                                                                                                                                                                                                  
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Duration/ Termination.As of December 31, 2004, the
    Management Agreements have remaining terms ranging from one to
    eight years. We have the right to terminate 19 of the BMC
    agreements upon 90 days advance written notice without
    having to pay any damages or a termination fee or penalty.                                                                                    
|
| |  | 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                                                    

6



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##### Table of Contents



| |  |                                                                                                                                                                                                                                                                                                                   
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | or not willful, tortious, or negligent) of 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
|                        |  |              |  |                  |    |   |              |  |    |                                
|Boykin San Diego, L.L.C |  | Outrigger(a) |  |                  | 91 | % |              |  | 9  | %                               |  | Hampton Inn San Diego Airport/ Sea World   
|BoyCon, L.L.C           |  | Concord      |  |                  | 50 | % |              |  | 50 | %                               |  | Meadowlands-Lyndhurst Courtyard by Marriott






|    |  |                                                      
|--- |  | -----------------------------------------------------
|(a) |  | Outrigger leases the property from the joint venture.



| |             
| | ------------
| | 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;                                                                                                                                                                                                  
|
| |  | Impact of financial difficulties of the airline industry and
    potential reduction in 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; and                                                                                                                                                                                                                            
|
| |  | Overbuilding in the hotel industry, especially in individual
    markets.                                                                                                                                                                                                                                    

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


7



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




| |                                
| | -------------------------------
| | 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.




8



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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;                                                      
|
| |  | 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 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.


9



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##### Table of Contents







We bear the risk factors common to real estate development as
a result of our projects at the Pink Shell Beach
Resort & Spa.




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





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



|                    |  |     |    |  |          |                                                                 
|------------------- |  | --- | -- |  | -------- | ----------------------------------------------------------------
|Name                |  | Age |    |  | Position
|                    |  |     |    |  |         
|Robert W. Boykin    |  |     | 55 |  |          | Chairman of the Board and Chief Executive Officer               
|Richard C. Conti    |  |     | 54 |  |          | President and Chief Operating Officer                           
|Shereen P. Jones    |  |     | 43 |  |          | Executive Vice President, Chief Financial and Investment Officer
|Russ C. Valentine   |  |     | 59 |  |          | Senior Vice President, Acquisitions                             
|Andrew C. Alexander |  |     | 41 |  |          | Senior Vice President and General Counsel                       









10



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





www.boykinlodging.com




| |                                                                                     
| | ------------------------------------------------------------------------------------
| | (d) Financial Information About Foreign and Domestic
    Operations and Export Sales





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

www.boykinlodging.com


11



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##### Table of Contents





| |                   
| | ------------------
| | 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 Kansas City                                            |  |          | 388   |  |          | Kansas City, MO     
|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    
|Holiday Inn Crabtree                                              |  |          | 176   |  |          | Raleigh, NC         
|Embassy Suites Southfield                                         |  |          | 239   |  |          | Southfield, MI      
|Hampton Inn San Diego Airport/ Sea World                          |  |          | 199   |  |          | San Diego, CA       
|Melbourne Hilton Oceanfront                                       |  |          | 118   |  |          | Melbourne, FL       
|Clarion Hotel & Conference Center                                 |  |          | 208   |  |          | Yakima, WA          
|Melbourne Quality Suites                                          |  |          | 208   |  |          | Melbourne, FL       
|French Lick Springs Resort and Spa                                |  |          | 485   |  |          | French Lick, IN     
|Hotel 71                                                          |  |          | 454   |  |          | Chicago, IL         
|Pink Shell Beach Resort & Spa                                     |  |          | 192   |  |          | Fort Myers, FL      
|Best Western Fort Myers Island Gateway Hotel                      |  |          | 157   |  |          | Fort Myers, FL      
|                                                                  |  |          |       |  |         
|                                                                  |  |          | 7,166 |  |          |                     
|                                                                  |  |          |       |  |         



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








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








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



12



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##### Table of Contents






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, 2003: |                |             |   |      |                    |  |   |                    |  |  |   |    
|                              | First Quarter  |             | $ | 9.42 |                    |  | $ | 6.65               |  |  | $ | .18 | 
|                              | Second Quarter |             | $ | 8.58 |                    |  | $ | 7.03               |  |  |   |    | 
|                              | Third Quarter  |             | $ | 8.47 |                    |  | $ | 7.44               |  |  |   |    | 
|                              | Fourth Quarter |             | $ | 9.53 |                    |  | $ | 7.82               |  |  |   |    | 
|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               |  |  |   |    | 



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







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





13



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##### Table of Contents





| |                                                                           
| | --------------------------------------------------------------------------
| | (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 plans | 
|                                                           |       | be issued upon exercise of |         |         | exercise price of    |                         |       | (excluding securities     | 
|                                                           |       | outstanding options,       |         |         | outstanding options, |                         |       | reflected in column (a))  | 
|                                                           |       | warrants and rights        |         |         | warrants and rights  |                         |       |                          
|Plan category                                              |       | (a)                        |         |         | (b)                  |                         |       | (c)                       | 
|                                                           |       |                            |         |         |                      |                         |       |                           | 
|Equity compensation plans approved by security holders     |       |                            | 839,139 | *       |                      | $                       | 11.24 | **                        |  |  | 196,149 |        
|Equity compensation plans not approved by security holders |       |                            | None    |         |                      |                         | None  |                           |  |  | None    |        
|                                                           |       |                            |         |         |                      |                         |       |                           | 
|                                                           | Total |                            |         | 839,139 |                      |                         | $     | 11.24                     |  |  |         | 196,149 | 
|                                                           |       |                            |         |         |                      |                         |       |                           | 






|   |  |                                                                                                              
|-- |  | -------------------------------------------------------------------------------------------------------------
|*  |  | Includes 613,006 options which are exercisable as of
    December 31, 2004.                                  
|  
|** |  | The weighted-average exercise price of the 613,006 exercisable
    options as of December 31, 2004 is $12.21.



| |                                     
| | ------------------------------------
| | (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





14



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##### Table of Contents



BOYKIN LODGING COMPANY






|                |                                                       |                                                                                                                                                      |   |        |         |   |   |        |         |   |      |        |         |      |   |         |         |   |   |       |         |  
|--------------- | ----------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------- | - | ------ | ------- | - | - | ------ | ------- | - | ---- | ------ | ------- | ---- | - | ------- | ------- | - | - | ----- | ------- | -
|                |                                                       | Year Ended December 31,                                                                                                                              |  
|                |                                                       | 2004                                                                                                                                                 |   |        | 2003    |   |   | 2002   |         |   | 2001 |        |         | 2000 |  
|                |                                                       |                                                                                                                                                      |   |        |         |   |   |        |         |   |      |        |         |      |  
|OPERATING DATA: |                                                       |                                                                                                                                                      |   |        |         |   |   |        |         |   |      |        |         |      |   |         |         |   |   |      
|                |                                                       | Hotel, lease and other operating revenue                                                                                                             |   | $      | 212,843 |   |   | $      | 194,672 |   |      | $      | 205,037 |      |   | $       | 57,247  |   |   | $     | 67,857  |  
|                |                                                       | Revenues from condominium development and unit sales                                                                                                 |   |        | 7,541   |   |   |        | 36,883  |   |      |        | 8,715   |      |   |         |        |   |   |       |        |  
|                |                                                       |                                                                                                                                                      |   |        |         |   |   |        |         |   |      |        |         |      |  
|                |                                                       | Total revenues                                                                                                                                       |   |        | 220,384 |   |   |        | 231,555 |   |      |        | 213,752 |      |   |         | 57,247  |   |   |       | 67,857  |  
|                |                                                       |                                                                                                                                                      |   |        |         |   |   |        |         |   |      |        |         |      |  
|                |                                                       | Property taxes, insurance, hotel operations, general and other                                                                                       |   |        | 183,032 |   |   |        | 168,430 |   |      |        | 164,997 |      |   |         | 14,472  |   |   |       | 14,152  |  
|                |                                                       | Cost of condominium development and unit sales                                                                                                       |   |        | 5,509   |   |   |        | 24,645  |   |      |        | 6,474   |      |   |         |        |   |   |       |        |  
|                |                                                       | Real estate related depreciation and amortization                                                                                                    |   |        | 24,017  |   |   |        | 26,085  |   |      |        | 23,377  |      |   |         | 22,309  |   |   |       | 22,781  |  
|                |                                                       | Impairment of real estate                                                                                                                            |   |        |        |   |   |        |        |   |      |        |        |      |   |         | 13,613  |   |   |       | 3,600   |  
|                |                                                       | Costs associated with termination of leases                                                                                                          |   |        |        |   |   |        |        |   |      |        |        |      |   |         | 14,575  |   |   |       |        |  
|                |                                                       | Gain on property insurance recovery                                                                                                                  |   |        |        |   |   |        |        |   |      |        |        |      |   |         |        |   |   |       | (407    | )
|                |                                                       |                                                                                                                                                      |   |        |         |   |   |        |         |   |      |        |         |      |  
|                |                                                       | Operating income (loss)                                                                                                                              |   |        | 7,826   |   |   |        | 12,395  |   |      |        | 18,904  |      |   |         | (7,722  | ) |   |       | 27,731  |  
|                |                                                       |                                                                                                                                                      |   |        |         |   |   |        |         |   |      |        |         |      |  
|                |                                                       | Other income                                                                                                                                         |   |        | 8       |   |   |        | 39      |   |      |        | 80      |      |   |         | 137     |   |   |       | 410     |  
|                |                                                       | Interest income                                                                                                                                      |   |        | 387     |   |   |        | 602     |   |      |        | 126     |      |   |         | 312     |   |   |       | 315     |  
|                |                                                       | Interest expense                                                                                                                                     |   |        | (13,629 | ) |   |        | (14,923 | ) |      |        | (18,068 | )    |   |         | (19,639 | ) |   |       | (22,380 | )
|                |                                                       | Amortization of deferred financing costs                                                                                                             |   |        | (1,367  | ) |   |        | (1,906  | ) |      |        | (2,105  | )    |   |         | (1,129  | ) |   |       | (1,146  | )
|                |                                                       | Minority interest in (earnings) loss of joint ventures and
    operating partnership                                                                 |   |        | 1,738   |   |   |        | 1,813   |   |      |        | 847     |      |   |         | 2,291   |   |   |       | (220    | )
|                |                                                       | Equity in income (loss) of unconsolidated joint ventures                                                                                             |   |        | (814    | ) |   |        | (870    | ) |      |        | (2,040  | )    |   |         | 589     |   |   |       | 68      |  
|                |                                                       |                                                                                                                                                      |   |        |         |   |   |        |         |   |      |        |         |      |  
|                |                                                       | Income (loss) before gain (loss) on sale/disposal of assets,
    discontinued operations and cumulative effect of change in
    accounting principle |   |        | (5,851  | ) |   |        | (2,850  | ) |      |        | (2,256  | )    |   |         | (25,161 | ) |   |       | 4,778   |  
|                |                                                       | Gain (loss) on sale/disposal of assets                                                                                                               |   |        | 3,157   |   |   |        | 954     |   |      |        | (16     | )    |   |         | 240     |   |   |       |        |  
|                |                                                       |                                                                                                                                                      |   |        |         |   |   |        |         |   |      |        |         |      |  
|                |                                                       | Income (loss) before discontinued operations and cumulative
    effect of change in accounting principle                                             |   |        | (2,694  | ) |   |        | (1,896  | ) |      |        | (2,272  | )    |   |         | (24,921 | ) |   |       | 4,778   |  
|                |                                                       | Discontinued operations, net of minority interest                                                                                                    |   |        | 2,534   |   |   |        | (1,530  | ) |      |        | 1,901   |      |   |         | (4,276  | ) |   |       | 2,952   |  
|                |                                                       |                                                                                                                                                      |   |        |         |   |   |        |         |   |      |        |         |      |  
|                |                                                       | Income (loss) before cumulative effect of change in accounting
    principle                                                                         |   |        | (160    | ) |   |        | (3,426  | ) |      |        | (371    | )    |   |         | (29,197 | ) |   |       | 7,730   |  
|                |                                                       | Cumulative effect of change in accounting principle, net of
    minority interest                                                                    |   |        |        |   |   |        |        |   |      |        |        |      |   |         | (373    | ) |   |       |        |  
|                |                                                       |                                                                                                                                                      |   |        |         |   |   |        |         |   |      |        |         |      |  
|                |                                                       | Net income (loss)                                                                                                                                    |   |        | (160    | ) |   |        | (3,426  | ) |      |        | (371    | )    |   |         | (29,570 | ) |   |       | 7,730   |  
|                |                                                       |                                                                                                                                                      |   |        |         |   |   |        |         |   |      |        |         |      |  
|                |                                                       | Preferred dividends                                                                                                                                  |   |        | (4,751  | ) |   |        | (4,751  | ) |      |        | (1,109  | )    |   |         |        |   |   |       |        |  
|                |                                                       |                                                                                                                                                      |   |        |         |   |   |        |         |   |      |        |         |      |  
|                | Net income (loss) attributable to common shareholders |                                                                                                                                                      | $ | (4,911 | )       |   | $ | (8,177 | )       |   | $    | (1,480 | )       |      | $ | (29,570 | )       |   | $ | 7,730 |        
|                |                                                       |                                                                                                                                                      |   |        |         |   |   |        |         |   |      |        |         |      |  

15



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|                               |                                                                                                                                                       |                         |   |          |        |   |   |         |        |   |      |         |        |      |   |         |        |   |   |         |        | 
|------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------- | - | -------- | ------ | - | - | ------- | ------ | - | ---- | ------- | ------ | ---- | - | ------- | ------ | - | - | ------- | ------ | 
|                               |                                                                                                                                                       | Year Ended December 31, |  
|                               |                                                                                                                                                       | 2004                    |   |          | 2003   |   |   | 2002    |        |   | 2001 |         |        | 2000 |  
|                               |                                                                                                                                                       |                         |   |          |        |   |   |         |        |   |      |         |        |      |  
|EARNINGS PER SHARE:            |                                                                                                                                                       |                         |   |          |        |   |   |         |        |   |      |         |        |      |   |         |        |   |   |        
|                               | Net income (loss) attributable to common shareholders before
    discontinued operations and cumulative effect of change in
    accounting principle: |                         |   |          |        |   |   |         |        |   |      |         |        |      |   |         |        |   |   |         |       
|                               |                                                                                                                                                       | Basic                   |   | $        | (0.43  | ) |   | $       | (0.38  | ) |      | $       | (0.20  | )    |   | $       | (1.45  | ) |   | $       | 0.28   | 
|                               |                                                                                                                                                       | Diluted                 |   | $        | (0.43  | ) |   | $       | (0.38  | ) |      | $       | (0.20  | )    |   | $       | (1.45  | ) |   | $       | 0.28   | 
|                               | Discontinued operations:                                                                                                                              |                         |   |          |        |   |   |         |        |   |      |         |        |      |   |         |        |   |   |         |       
|                               |                                                                                                                                                       | Basic                   |   | $        | 0.15   |   |   | $       | (0.09  | ) |      | $       | 0.11   |      |   | $       | (0.25  | ) |   | $       | 0.17   | 
|                               |                                                                                                                                                       | Diluted                 |   | $        | 0.14   |   |   | $       | (0.09  | ) |      | $       | 0.11   |      |   | $       | (0.25  | ) |   | $       | 0.17   | 
|                               | Net income (loss) attributable to common shareholders before
    cumulative effect of change in accounting principle:                                 |                         |   |          |        |   |   |         |        |   |      |         |        |      |   |         |        |   |   |         |       
|                               |                                                                                                                                                       | Basic                   |   | $        | (0.28  | ) |   | $       | (0.47  | ) |      | $       | (0.09  | )    |   | $       | (1.70  | ) |   | $       | 0.45   | 
|                               |                                                                                                                                                       | Diluted                 |   | $        | (0.28  | ) |   | $       | (0.47  | ) |      | $       | (0.09  | )    |   | $       | (1.70  | ) |   | $       | 0.45   | 
|                               | Net income (loss) attributable to common shareholders:                                                                                                |                         |   |          |        |   |   |         |        |   |      |         |        |      |   |         |        |   |   |         |       
|                               |                                                                                                                                                       | Basic                   |   | $        | (0.28  | ) |   | $       | (0.47  | ) |      | $       | (0.09  | )    |   | $       | (1.72  | ) |   | $       | 0.45   | 
|                               |                                                                                                                                                       | Diluted                 |   | $        | (0.28  | ) |   | $       | (0.47  | ) |      | $       | (0.09  | )    |   | $       | (1.72  | ) |   | $       | 0.45   | 
|                               | Weighted average number of common shares outstanding:                                                                                                 |                         |   |          |        |   |   |         |        |   |      |         |        |      |   |         |        |   |   |         |       
|                               |                                                                                                                                                       | Basic                   |   |          | 17,426 |   |   |         | 17,336 |   |      |         | 17,248 |      |   |         | 17,176 |   |   |         | 17,137 | 
|                               |                                                                                                                                                       | Diluted                 |   |          | 17,553 |   |   |         | 17,470 |   |      |         | 17,383 |      |   |         | 17,281 |   |   |         | 17,305 | 
|HISTORICAL BALANCE SHEET DATA: |                                                                                                                                                       |                         |   |          |        |   |   |         |        |   |      |         |        |      |   |         |        |   |   |        
|                               | Investment in hotel properties, net                                                                                                                   |                         | $ | 410,795  |        |   | $ | 409,876 |        |   | $    | 376,003 |        |      | $ | 399,954 |        |   | $ | 432,037 |       
|                               | Assets of discontinued operations, net                                                                                                                |                         |   |         |        |   |   | 82,784  |        |   |      | 119,133 |        |      |   | 122,151 |        |   |   | 135,156 |       
|                               | Total assets                                                                                                                                          |                         |   | 477,380  |        |   |   | 591,292 |        |   |      | 575,531 |        |      |   | 559,218 |        |   |   | 600,593 |       
|                               | Total debt                                                                                                                                            |                         |   | 199,985  |        |   |   | 282,019 |        |   |      | 241,082 |        |      |   | 285,226 |        |   |   | 277,696 |       
|                               | Liabilities of discontinued operations                                                                                                                |                         |   |         |        |   |   | 19,772  |        |   |      | 40,725  |        |      |   | 36,413  |        |   |   | 37,086  |       
|                               | Minority interest                                                                                                                                     |                         |   | 10,989   |        |   |   | 12,462  |        |   |      | 15,176  |        |      |   | 16,933  |        |   |   | 14,709  |       
|                               | Shareholders equity                                                                                                                                  |                         |   | 227,448  |        |   |   | 231,541 |        |   |      | 240,291 |        |      |   | 202,646 |        |   |   | 253,266 |       
|OTHER DATA:                    |                                                                                                                                                       |                         |   |          |        |   |   |         |        |   |      |         |        |      |   |         |        |   |   |        
|                               | Funds from operations attributable to common shareholders
    (FFO)(a)(c)                                                                             |                         | $ | 9,742    |        |   | $ | 18,275  |        |   | $    | 25,391  |        |      | $ | (2,635  | )      |   | $ | 35,579  |       
|                               | Earnings before interest, taxes, depreciation and amortization
    (EBITDA)(b)(c)                                                                     |                         | $ | 32,807   |        |   | $ | 45,629  |        |   | $    | 54,099  |        |      | $ | 21,639  |        |   | $ | 65,837  |       
|                               | Net cash provided by operating activities                                                                                                             |                         | $ | 42,640   |        |   | $ | 2,173   |        |   | $    | 39,188  |        |      | $ | 34,043  |        |   | $ | 43,400  |       
|                               | Net cash provided by (used in) investing activities                                                                                                   |                         | $ | 63,527   |        |   | $ | (23,783 | )      |   | $    | (11,985 | )      |      | $ | (14,798 | )      |   | $ | (23,109 | )     
|                               | Net cash provided by (used in) financing activities                                                                                                   |                         | $ | (106,659 | )      |   | $ | 10,170  |        |   | $    | (5,360  | )      |      | $ | (19,810 | )      |   | $ | (20,087 | )     
|                               | Cash dividends declared  common shares                                                                                                               |                         |   |         |        |   | $ | 3,174   |        |   | $    | 6,297   |        |      | $ | 19,030  |        |   | $ | 28,889  |       
|                               | Weighted average number of common shares and units outstanding:                                                                                       |                         |   |          |        |   |   |         |        |   |      |         |        |      |   |         |        |   |   |         |       
|                               |                                                                                                                                                       | Basic                   |   |          | 20,144 |   |   |         | 20,055 |   |      |         | 19,966 |      |   |         | 18,467 |   |   |         | 18,428 | 
|                               |                                                                                                                                                       | Diluted                 |   |          | 20,271 |   |   |         | 20,188 |   |      |         | 20,101 |      |   |         | 18,572 |   |   |         | 18,596 | 






|    |  |                                                                                                                                                                                                               
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | The White Paper on Funds From Operations approved by the Board
    of Governors of the National Association of Real Estate
    Investment Trusts (NAREIT) in April 2002 defines FFO
    as net income (loss)

16



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##### Table of Contents



| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (computed in accordance with GAAP), excluding gains (or losses)
    from sales of properties, plus real estate related depreciation
    and amortization, and after comparable adjustments for our
    portion of these items related to unconsolidated entities and
    joint ventures. We believe that FFO is helpful as a measure of
    the performance of an equity REIT because it provides investors
    and management with another indication of the Companys
    performance prior to deduction of real estate related
    depreciation and amortization.                                                                                                                                                                                           
|
| |  | We compute FFO in accordance with our interpretation of
    standards established by NAREIT which may not be comparable to
    FFO reported by other REITs that do not define the term in
    accordance with the current NAREIT definition or that interpret
    the NAREIT definition differently than us. FFO does not
    represent cash generated from operating activities as determined
    by GAAP and should not be considered as an alternative to GAAP
    net income as an indication of our financial performance or to
    cash flow from operating activities as determined by GAAP as a
    measure of our liquidity, nor is it indicative of funds
    available to fund our cash needs, including our ability to make
    cash distributions.



|                                                                                          |  |      |         |   |      |   |        |      |  |   |        |   |  |      |         |   |  |   |        |  
|----------------------------------------------------------------------------------------- |  | ---- | ------- | - | ---- | - | ------ | ---- |  | - | ------ | - |  | ---- | ------- | - |  | - | ------ | -
|                                                                                          |  | 2004 |         |   | 2003 |   |        | 2002 |  |   | 2001   |   |  | 2000 |        
|                                                                                          |  |      |         |   |      |   |        |      |  |   |        |   |  |      |        
|Net income (loss)                                                                         |  | $    | (160    | ) |      | $ | (3,426 | )    |  | $ | (371   | ) |  | $    | (29,570 | ) |  | $ | 7,730  |  
|Minority interest                                                                         |  |      | 803     |   |      |   | (3,319 | )    |  |   | (507   | ) |  |      | (2,999  | ) |  |   | 860    |  
|Real estate related depreciation and amortization                                         |  |      | 24,017  |   |      |   | 26,085 |      |  |   | 23,377 |   |  |      | 22,309  |   |  |   | 22,781 |  
|Real estate related depreciation and amortization included in
    discontinued operations |  |      | 2,602   |   |      |   | 5,632  |      |  |   | 6,797  |   |  |      | 6,165   |   |  |   | 7,593  |  
|(Gain) loss on sale/disposal of assets                                                    |  |      | (13,065 | ) |      |   | (1,724 | )    |  |   | 16     |   |  |      | (240    | ) |  |   |       |  
|(Gain) loss on sale/disposal of assets included in discontinued
    operations            |  |      | (15     | ) |      |   | (550   | )    |  |   | 2      |   |  |      |        |   |  |   |       |  
|Cumulative effect of change in accounting principle                                       |  |      |        |   |      |   |       |      |  |   |       |   |  |      | 373     |   |  |   |       |  
|Gain on property insurance recovery                                                       |  |      |        |   |      |   |       |      |  |   |       |   |  |      |        |   |  |   | (407   | )
|Equity in (income) loss of unconsolidated joint ventures                                  |  |      | 814     |   |      |   | 870    |      |  |   | 2,040  |   |  |      | (589    | ) |  |   | (68    | )
|FFO adjustment related to joint ventures                                                  |  |      | 1,016   |   |      |   | 2,324  |      |  |   | (852   | ) |  |      | 1,718   |   |  |   | (229   | )
|Preferred dividends declared                                                              |  |      | (4,751  | ) |      |   | (4,751 | )    |  |   | (1,109 | ) |  |      |        |   |  |   |       |  
|                                                                                          |  |      |         |   |      |   |        |      |  |   |        |   |  |      |        
|Funds from operations after preferred dividends                                           |  |      | 11,261  |   |      |   | 21,141 |      |  |   | 29,393 |   |  |      | (2,833  | ) |  |   | 38,260 |  
|                                                                                          |  |      |         |   |      |   |        |      |  |   |        |   |  |      |        
|Less: Funds from operations related to minority interest                                  |  |      | 1,519   |   |      |   | 2,866  |      |  |   | 4,002  |   |  |      | (198    | ) |  |   | 2,681  |  
|                                                                                          |  |      |         |   |      |   |        |      |  |   |        |   |  |      |        
|Funds from operations attributable to common shareholders                                 |  | $    | 9,742   |   |      | $ | 18,275 |      |  | $ | 25,391 |   |  | $    | (2,635  | ) |  | $ | 35,579 |  
|                                                                                          |  |      |         |   |      |   |        |      |  |   |        |   |  |      |        






|    |  |                                                                                                                                                                                                                                                                                             
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) |  | We believe that EBITDA is helpful to investors and management as
    a measure of the performance of the Company because it provides
    an indication of the operating performance of the properties
    within the portfolio and is not impacted by the capital
    structure of the REIT.

17



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|                        |                                                            |        |       |        |        |   |        |        |        |   |        |        |        |      |        |        |        |   |        |        |        | 
|----------------------- | ---------------------------------------------------------- | ------ | ----- | ------ | ------ | - | ------ | ------ | ------ | - | ------ | ------ | ------ | ---- | ------ | ------ | ------ | - | ------ | ------ | ------ | 
|                        |                                                            | 2004   |       |        | 2003   |   |        | 2002   |        |   | 2001   |        |        | 2000 |       
|                        |                                                            |        |       |        |        |   |        |        |        |   |        |        |        |      |       
|Operating income (loss) |                                                            | $      | 7,826 |        |        | $ | 12,395 |        |        | $ | 18,904 |        |        | $    | (7,722 | )      |        | $ | 27,731 |       
|                        | Other income                                               |        |       | 8      |        |   |        | 39     |        |   |        | 80     |        |      |        | 137    |        |   |        | 410    |       
|                        | Interest income                                            |        |       | 387    |        |   |        | 602    |        |   |        | 126    |        |      |        | 312    |        |   |        | 315    |       
|                        | Real estate related depreciation and amortization          |        |       | 24,017 |        |   |        | 26,085 |        |   |        | 23,377 |        |      |        | 22,309 |        |   |        | 22,781 |       
|                        | EBITDA attributable to discontinued operations             |        |       | (1,959 | )      |   |        | 2,783  |        |   |        | 11,060 |        |      |        | 3,534  |        |   |        | 13,354 |       
|                        | Companys share of EBITDA of unconsolidated joint ventures |        |       | 2,713  |        |   |        | 2,667  |        |   |        | 724    |        |      |        | 2,784  |        |   |        | 1,428  |       
|                        | EBITDA applicable to joint venture minority interest       |        |       | (185   | )      |   |        | 1,058  |        |   |        | (172   | )      |      |        | 285    |        |   |        | (182   | )     
|                        |                                                            |        |       |        |        |   |        |        |        |   |        |        |        |      |       
|                        |                                                            | EBITDA |       | $      | 32,807 |   |        | $      | 45,629 |   |        | $      | 54,099 |      |        | $      | 21,639 |   |        | $      | 65,837 | 
|                        |                                                            |        |       |        |        |   |        |        |        |   |        |        |        |      |       






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(c) |  | Neither FFO nor EBITDA represent cash generated from operating
    activities as determined by GAAP and neither should be
    considered as an alternative to GAAP net income as an indication
    of the Companys financial performance or to cash flow from
    operating activities as determined by GAAP as a measure of
    liquidity, nor is either indicative of funds available to fund
    cash needs, including the ability to make cash distributions.
    FFO and EBITDA may include funds that may not be available for
    the Companys discretionary use due to functional
    requirements to conserve funds for capital expenditures and
    property acquisitions, and other commitments and uncertainties.

18



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##### Table of Contents








| |                                                                                                  
| | -------------------------------------------------------------------------------------------------
| | 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 2004, we recorded a charge of $4.3 million for the
    impairment of real estate on the Ramada Inn Bellevue Center due
    to a change in the intended holding period of the property. In
    2003, we recorded a charge of $2.8 million for impairment of
    real estate on our Holiday Inn Minneapolis West, as a result of
    a change in managements intended holding period of the
    property. Pursuant to the terms of the joint venture which owned
    the property, over 40% of this charge was allocable to the joint
    ventures minority interest partner. There were no charges
    recorded for impairment of real estate in 2002. As of
    December 31, 2004, 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.

19



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##### Table of Contents





| |                                                                                                                                                                                                                                                                                                                                                              
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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 in our analysis. Our operating results
    are also subject to the risks set forth under Items 1(c) 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
    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 have been recognized
    as of 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.
|
| | 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 have 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  In 2003, we disposed of
    certain assets due to water infiltration remediation activities.
    Property insurance proceeds received in 2003 and 2004 in excess
    of the net book value of the disposed assets are recorded within
    the gain (loss) on sale/disposal of assets within the
    consolidated financial statements. Advances on our business
    interruption insurance claim related to the period in which the
    remediation activities occurred are recorded as other hotel
    revenues within the consolidated financial statements.                                                                 
|
| | Since September 2004, our two hotels located in Melbourne,
    Florida have been closed due to damage sustained from Hurricane
    Frances. We have recorded estimated business interruption
    insurance recoveries in the amount of the loss sustained by the
    hotels since the storm. These estimates are recorded as other
    hotel revenues within the consolidated financial statements.
    Estimated property insurance recoveries have been recorded as
    gain on sale/disposal of assets within the consolidated
    financial statements to the extent we experienced a loss on the
    writeoff of the damaged or destroyed assets.
|
| | 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

20



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##### Table of Contents



| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | account for income taxes in accordance with the provisions of
    SFAS No. 109, Accounting for Income Taxes. As
    of December 31, 2004, Boykins TRSs have a deferred
    tax asset of approximately $10.2 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s TRSs have 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, 2004 Compared to December 31, 2003









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





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





| |   |                                                                                                                                   
| | - | ----------------------------------------------------------------------------------------------------------------------------------
| |  | Hotel revenues increased $18.0 million from
    $192.4 million in 2003 to $210.4 million in 2004 as a
    result of the following:



| |   |                                                                                                                                                                                                                                                                                                                                                                              
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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;                                                                                                                                                                                           
|
| |  | 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; and                                                                       
|
| |  | An approximate 3.3% increase in revenue per available room
    (RevPAR) from 2003 for the 18 consolidated
    hotels which were open and operated under the TRS structure for
    both full years of 2004 and 2003. The increase in RevPAR was the
    result of an increase in occupancy levels of 1.9 points
    combined with a 0.1% increase in the average daily rate.

21



---



##### Table of Contents





| |   |                                                                                                                                                                                                                                                                                             
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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 $159.1 million. The gross operating
    profit of these hotels for the periods owned and operated under
    a TRS totaled 24.4% in 2004 versus 24.2% 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
    $15.1 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 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 taxes and
    insurance expenses 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
    $2.1 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.

22



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##### Table of Contents







| |   |                                                                                                                                                                                
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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 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.







| |                                                                        
| | -----------------------------------------------------------------------
| | Results of Operations Year Ended December 31, 2003
    Compared to 2002





| |   |                                                                                                                                   
| | - | ----------------------------------------------------------------------------------------------------------------------------------
| |  | Hotel revenues decreased $10.3 million from
    $202.7 million in 2002 to $192.4 million in 2003 as a
    result of the following:



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Increase of $2.7 million related to the inclusion of the
    hotel revenue of the Marco Island property subsequent to its
    acquisition in August 2003; offset by                                                                                                                                                                                                                                                        
|
| |  | An approximate 5.9% decrease in revenue per available room
    (RevPAR) from 2002 for the 20 consolidated hotels
    which were operated under the TRS structure for both full years
    of 2003 and 2002. Comprising the decline in RevPAR was a drop in
    occupancy levels of 2.8 points combined with a decrease in the
    average daily rate of approximately 1.6%, primarily as a result
    of the weak economy.



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Revenues from condominium development and unit sales increased
    to $36.9 million in 2003 versus $8.7 million in 2002
    as we started recognizing revenue under the percentage of
    completion method in 2003 related to the White Sand Villas
    project as certain thresholds regarding number of pre-sales and
    progress on construction were met. Total revenue recognized in
    2003 totaled $32.2 million. Additionally, 2003 revenues
    include $4.7 million related to the sales of the remaining
    19 Sanibel View Villas units whereas in 2002 there were revenues
    of approximately $8.7 million related to the sales of 40
    Sanibel View Villas units.





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | In 2003, we incurred total hotel operating expenses, which
    include hotel departmental expenses, indirect expenses and
    management fees, of $145.8 million. This is related to the
    costs associated with operating the 21 hotels under the TRS
    structure for the full year 2003 as well as the expenses related
    to the Marco Island property subsequent to acquisition. The
    gross operating profit of these hotels for the periods owned and
    operated under a TRS totaled 24.2% for 2003 versus 28.1% in
    2002. The main drivers for the loss of gross profit margins
    include increases in payroll and related employee costs and
    benefits, insurance, food and energy.





| |   |                                                                                                                                                                                                                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Total expenses related to property taxes, insurance and other of
    $14.5 million recorded for 2003 increased $1.6 million
    over 2002. The addition of Marco Island accounted for
    $0.3 million of this increase. Additionally, the portfolio
    experienced an increase in insurance costs.





| |   |                                                                                                                                                                                                                                                                                                   
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Total expenses recorded for 2003 were $8.1 million compared
    with 2002 expenses of $6.4 million as a result of increased
    legal and professional fees, costs related to the exchange of
    collateral for the $130.0 million loan and increased
    directors and officers insurance costs.

23



---



##### Table of Contents







| |   |                                                                                           
| | - | ------------------------------------------------------------------------------------------
| |  | Total expenses recorded for 2003 were $24.6 million
    compared with $6.5 million in 2002



| |   |                                                                                                                                                                                                                                 
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Due to progress made on the White Sand Villas, amounts expensed
    under the percentage of completion method of accounting totaled
    $21.6 million                                                                           
|
| |  | 2003 costs include $3.0 million related to the sale of
    19 Sanibel View Villas units where in 2002 costs totaled
    $6.5 million. The decline in cost per unit was due to
    depreciation taken on the units prior to sale.





| |   |                                                                                                                                                                                                                                                   
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Depreciation and amortization in 2003 of $26.1 million
    included $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.
|
| |  | Depreciation and amortization in 2002 of $23.4 million
    included $1.7 million of accelerated depreciation related
    to the demolition and removal of the cottages at the Pink Shell
    to make way for the new White Sand Villas building.  
|
| |  | Disregarding these events, the depreciation and amortization for
    2003 increased approximately $1.0 million as a result of
    recent capital expenditures and the acquisition of the Marco
    Island property in August 2003.                





| |   |                                                                                            
| | - | -------------------------------------------------------------------------------------------
| |  | Interest expense decreased approximately $3.1 million in
    2003 from 2002 as a result of:



| |   |                                                                                                                                                                                                                                                                                  
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | A significant decrease in the weighted average outstanding
    balance on our applicable secured credit facilities;                                                                                                                                                              
|
| |  | Approximately $42.0 million on the previously existing
    $45.0 million term note was outstanding for just over
    9 months during 2003 versus being outstanding at
    $45.0 million for the first nine months of 2002 and
    $42.0 million for the remaining months of 2002;
|
| |  | An average interest rate decline on the outstanding balance of
    our $108.0 million term loan of approximately 60 basis
    points; and                                                                                                                                        
|
| |  | A declining outstanding principal balance on our
    $130.0 million term loan as a result of the loans
    amortization schedule.                                                                                                                                               





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Our share of loss related to our unconsolidated joint ventures
    totaled $0.9 million in 2003 versus $2.0 million in
    2002 as both of the hotels we owned and accounted for as
    unconsolidated joint ventures were in their ramp up periods
    after major guestroom renovations. The primary driver behind
    this change relates to our share of the joint venture which owns
    Hotel 71. The hotel experienced a significant number of
    room nights out of service related to its renovation in 2002;
    subsequent to completion, these rooms were back in service and
    due to the upgrade of the hotel, the property experienced higher
    average daily room rates. Similarly, the total operating costs
    of the property increased as a result of the increased number of
    rooms occupied in 2003 compared with 2002. The depreciation
    related to Hotel 71 in 2003 increased significantly over
    2002 levels as the costs related to the renovation, which were
    in excess of $20.0 million, began depreciating in late 2002
    in conjunction with the completion of the renovation.





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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 2003 and 2004 prior to their
    sale. Included in 2003 discontinued operations is the
    $2.8 million impairment charge related to the Holiday Inn
    Minneapolis West and the offsetting $1.2 million of the
    charge that was allocated to the joint venture partner. Also
    included in 2003 discontinued operations is the net gain on sale
    of the five properties of $0.7 million.





| |   |                                                                                                                                                                                                                        
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Approximately $4.8 million of dividends related to the
    outstanding preferred depositary shares were declared in 2003;
    those dividends reduced net income attributable to common
    shareholders. The preferred

24



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| |  |                                                                                                                                   
| |  | ----------------------------------------------------------------------------------------------------------------------------------
| |  | shares were issued during the fourth quarter of 2002 and there
    was approximately one quarter of this amount declared for 2002.







| |                                
| | -------------------------------
| | 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;                                         
|
| |  | 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.











25



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##### Table of Contents

















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



26



---



##### Table of Contents





| |                                              
| | ---------------------------------------------
| | 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                                                             |  | $                      | 193,539 |           |        | $ | 95,010 |           |           | $ | 8,614     |  |  | $       | 9,922  |  |  | $ | 79,993  | 
|Capital Lease Obligations                                                              |  | $                      | 0       |           |        | $ | 0      |           |           | $ | 0         |  |  | $       | 0      |  |  | $ | 0       | 
|Operating Lease Obligations                                                            |  | $                      | 27,080  |           |        | $ | 1,793  |           |           | $ | 1,639     |  |  | $       | 1,060  |  |  | $ | 22,588  | 
|Purchase Obligations                                                                   |  | $                      | 2,763   |           |        | $ | 2,206  |           |           | $ | 368       |  |  | $       | 100    |  |  | $ | 89      | 
|Other Long-Term Liabilities Reflected on the Registrants
    Balance Sheet under GAAP |  | $                      | 6,235   |           |        | $ | 258    |           |           | $ | 253       |  |  | $       | 335    |  |  | $ | 5,389   | 
|                                                                                       |  |                        |         |           |        |   |        |           |           |   |           |  |  |         |       
|Total                                                                                  |  | $                      | 229,617 |           |        | $ | 99,267 |           |           | $ | 10,874    |  |  | $       | 11,417 |  |  | $ | 108,059 | 
|                                                                                       |  |                        |         |           |        |   |        |           |           |   |           |  |  |         |       







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







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





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









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



27



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28



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##### Table of Contents





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










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



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







29



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##### Table of Contents












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








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














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



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





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

Internal Control  Integrated Framework


30



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##### Table of Contents







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








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






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



31



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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   | (d) |  | Shareholder Rights Agreement, dated as of May 25, 1999
    between Boykin Lodging Company and National City Bank as rights
    agent                                                    
|         | 4.3a  | (g) |  | Amendment to Shareholder Rights Agreement, dated as of
    December 31, 2001                                                                                                            
|         | 10.1  | (i) |  | 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 | (e) |  | 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 | (e) |  | Warrant to Purchase Class A Cumulative Preferred Stock,
    Series 1999-A of Boykin Lodging Company dated as of
    February 1, 1999                                                    
|         | 10.15 | (e) |  | Registration Rights Agreement by and among Boykin Lodging
    Company and AEW Partners III, L.P. dated as of February 1,
    1999                                                       
|         | 10.16 | (f) |  | Key Employee Severance Plan*                                                                                                                                                            
|         | 10.17 | (f) |  | Form of Severance Agreement*                                                                                                                                                            
|         | 10.18 | (g) |  | Master Contribution Agreement between BMC, JABO LLC, the Company
    and the Partnership dated as of December 31, 2001                                                                  
|         | 10.19 | (g) |  | Form of Hotel Management Agreement*                                                                                                                                                     
|         | 10.20 | (g) |  | Registration Rights Agreement between the Company and JABO LLC
    dated January 1, 2002                                                                                                
|         | 10.21 | (j) |  | Description of Employment Arrangement between the Company and
    Shereen P. Jones*                                                                                                     
|         | 10.22 |     |  | 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                      
|         | 10.23 |     |  | 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
|         | 10.24 |     |  | Modification of Employment Agreement between the Company and
    Robert W. Boykin*                                                                                                      
|         | 12    |     |  | Statement re Computation of Ratios                                                                                                                                                      
|         | 16.1  | (h) |  | 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 from Boykins Form 10-Q for
    the quarter ended March 31, 1999.                                                                                                                                                                         
|   
|(f) |  | Incorporated by reference from Boykins Form 10-K for
    the year ended December 31, 1999.                                                                                                                                                                         

32



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##### Table of Contents





|    |  |                                                                                            
|--- |  | -------------------------------------------------------------------------------------------
|(g) |  | Incorporated by reference from Boykins Form 8-K filed
    on January 14, 2002.            
|   
|(h) |  | Incorporated by reference from Boykins Form 8-K filed
    on April 20, 2004.              
|   
|(i) |  | Incorporated by reference from Boykins Form 8-K filed
    on October 4, 2002.             
|   
|(j) |  | Incorporated by reference from Boykins Form 10-K for
    the year ended December 31, 2002.
|   
|*   |  | Management contract or compensatory plan or arrangement.                                   

33



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##### Table of Contents






INDEX TO FINANCIAL STATEMENTS


|                                                                                                                                             |  |  |      | 
|-------------------------------------------------------------------------------------------------------------------------------------------- |  |  | ---- | 
|BOYKIN LODGING COMPANY:                                                                                                                      |  |  |      | 
|Reports of Independent Registered Public Accounting Firms                                                                                    |  |  | F-2  | 
|Consolidated Balance Sheets as of December 31, 2004 and 2003                                                                                 |  |  | F-5  | 
|Consolidated Statements of Operations for the Years Ended
    December 31, 2004, 2003 and 2002                                               |  |  | F-6  | 
|Consolidated Statements of Shareholders Equity and
    Comprehensive Income (Loss) for the Years Ended
    December 31, 2004, 2003 and 2002 |  |  | F-7  | 
|Consolidated Statements of Cash Flows for the Years Ended
    December 31, 2004, 2003 and 2002                                               |  |  | F-8  | 
|Notes to Consolidated Financial Statements                                                                                                   |  |  | F-9  | 
|Schedule III  Real Estate and Accumulated
    Depreciation as of December 31, 2004                                                          |  |  | F-30 | 
|                                                                                                                                            
|BOYKIN/ AEW, LLC AND SUBSIDIARIES:                                                                                                           |  |  |      | 
|Reports of Independent Registered Public Accounting Firms                                                                                    |  |  | F-32 | 
|Consolidated Balance Sheets as of December 31, 2004 and 2003                                                                                 |  |  | F-34 | 
|Consolidated Statements of Operations for the Years Ended
    December 31, 2004, 2003 and 2002                                               |  |  | F-35 | 
|Consolidated Statements of Members Equity for the Years
    Ended December 31, 2004, 2003 and 2002                                          |  |  | F-36 | 
|Consolidated Statements of Cash Flows for the Years Ended
    December 31, 2004, 2003 and 2002                                               |  |  | F-37 | 
|Notes to Consolidated Financial Statements                                                                                                   |  |  | F-38 | 
|Schedule III  Real Estate and Accumulated
    Depreciation as of December 31, 2004                                                          |  |  | F-42 | 

F-1



---



##### Table of Contents






REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


















Grant Thornton LLP






F-2



---



##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
















Grant Thornton LLP






F-3



---



##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM














Deloitte & Touche
LLP






F-4



---



##### Table of Contents



BOYKIN LODGING COMPANY








|                                                                                                                               |                                                                                                                                                                                           |                            |         |          |         |   |         |          |         | 
|------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------- | ------- | -------- | ------- | - | ------- | -------- | ------- | 
|                                                                                                                               |                                                                                                                                                                                           | 2004                       |         |          | 2003    |  
|                                                                                                                               |                                                                                                                                                                                           |                            |         |          |         |  
|ASSETS                                                                                                                         |                                                                                                                                                                                           |                            |         |          |         |   |         |         
|Investment in hotel properties                                                                                                 |                                                                                                                                                                                           | $                          | 545,142 |          |         | $ | 534,475 |         
|                                                                                                                               | Accumulated depreciation                                                                                                                                                                  |                            |         | (134,347 | )       |   |         | (124,599 | )      
|                                                                                                                               |                                                                                                                                                                                           |                            |         |          |         |  
|Investment in hotel properties, net                                                                                            |                                                                                                                                                                                           |                            | 410,795 |          |         |   | 409,876 |         
|Cash and cash equivalents                                                                                                      |                                                                                                                                                                                           |                            | 13,521  |          |         |   | 14,013  |         
|Restricted cash                                                                                                                |                                                                                                                                                                                           |                            | 13,022  |          |         |   | 15,365  |         
|Accounts receivable, net of allowance for doubtful accounts of
    $87 and $144 as of December 31, 2004 and 2003, respectively |                                                                                                                                                                                           |                            | 12,170  |          |         |   | 39,988  |         
|Receivables from lessee                                                                                                        |                                                                                                                                                                                           |                            | 10      |          |         |   | 254     |         
|Inventories                                                                                                                    |                                                                                                                                                                                           |                            | 1,709   |          |         |   | 1,591   |         
|Deferred financing costs and other, net                                                                                        |                                                                                                                                                                                           |                            | 2,014   |          |         |   | 2,948   |         
|Investment in unconsolidated joint ventures                                                                                    |                                                                                                                                                                                           |                            | 14,048  |          |         |   | 16,158  |         
|Other assets                                                                                                                   |                                                                                                                                                                                           |                            | 10,091  |          |         |   | 8,315   |         
|Assets related to discontinued operations, net                                                                                 |                                                                                                                                                                                           |                            |        |          |         |   | 82,784  |         
|                                                                                                                               |                                                                                                                                                                                           |                            |         |          |         |  
|                                                                                                                               |                                                                                                                                                                                           | $                          | 477,380 |          |         | $ | 591,292 |         
|                                                                                                                               |                                                                                                                                                                                           |                            |         |          |         |  
|LIABILITIES AND SHAREHOLDERS EQUITY                                                                                           |                                                                                                                                                                                           |                            |         |          |         |   |         |         
|Borrowings against credit facility                                                                                             |                                                                                                                                                                                           | $                          | 6,446   |          |         | $ | 71,945  |         
|Term notes payable                                                                                                             |                                                                                                                                                                                           |                            | 193,539 |          |         |   | 210,074 |         
|Accounts payable and accrued expenses                                                                                          |                                                                                                                                                                                           |                            | 36,707  |          |         |   | 43,273  |         
|Accounts payable to related party                                                                                              |                                                                                                                                                                                           |                            | 1,063   |          |         |   | 873     |         
|Dividends/distributions payable                                                                                                |                                                                                                                                                                                           |                            | 1,188   |          |         |   | 1,188   |         
|Due to lessees                                                                                                                 |                                                                                                                                                                                           |                            |        |          |         |   | 164     |         
|Minority interest in joint ventures                                                                                            |                                                                                                                                                                                           |                            | 927     |          |         |   | 967     |         
|Minority interest in operating partnership                                                                                     |                                                                                                                                                                                           |                            | 10,062  |          |         |   | 11,495  |         
|Liabilities related to discontinued operations                                                                                 |                                                                                                                                                                                           |                            |        |          |         |   | 19,772  |         
|SHAREHOLDERS EQUITY:                                                                                                          |                                                                                                                                                                                           |                            |         |          |         |   |         |         
|                                                                                                                               | Preferred shares, without par value; 10,000,000 shares
    authorized; 181,000 shares issued and outstanding as of
    December 31, 2004 and 2003 (liquidation preference of
    $45,250) |                            |         |         |         |   |         |         |        
|                                                                                                                               | Common shares, without par value; 40,000,000 shares authorized;
    17,450,314 and 17,344,380 shares outstanding at
    December 31, 2004 and 2003, respectively                          |                            |         |         |         |   |         |         |        
|                                                                                                                               | Additional paid-in capital                                                                                                                                                                |                            |         | 358,688  |         |   |         | 357,290  |        
|                                                                                                                               | Distributions in excess of income                                                                                                                                                         |                            |         | (129,232 | )       |   |         | (124,321 | )      
|                                                                                                                               | Unearned compensation  restricted shares                                                                                                                                                 |                            |         | (2,008   | )       |   |         | (1,428   | )      
|                                                                                                                               |                                                                                                                                                                                           |                            |         |          |         |  
|                                                                                                                               |                                                                                                                                                                                           | Total shareholders equity |         |          | 227,448 |   |         |          | 231,541 | 
|                                                                                                                               |                                                                                                                                                                                           |                            |         |          |         |  
|                                                                                                                               |                                                                                                                                                                                           | $                          | 477,380 |          |         | $ | 591,292 |         
|                                                                                                                               |                                                                                                                                                                                           |                            |         |          |         |  



F-5



---



##### Table of Contents



BOYKIN LODGING COMPANY








|                                                                                          |                                                                                                                                                                                                                                  |                                  |        |         |         |   |        |         |         |   |        |         |         | 
|----------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------- | ------ | ------- | ------- | - | ------ | ------- | ------- | - | ------ | ------- | ------- | 
|                                                                                          |                                                                                                                                                                                                                                  | 2004                             |        |         | 2003    |   |        | 2002    |        
|                                                                                          |                                                                                                                                                                                                                                  |                                  |        |         |         |   |        |         |        
|Revenues:                                                                                 |                                                                                                                                                                                                                                  |                                  |        |         |         |   |        |         |         |   |        |        
|                                                                                          | Hotel revenues:                                                                                                                                                                                                                  |                                  |        |         |         |   |        |         |         |   |        |         |        
|                                                                                          |                                                                                                                                                                                                                                  | Rooms                            |        | $       | 133,597 |   |        | $       | 122,821 |   |        | $       | 129,341 | 
|                                                                                          |                                                                                                                                                                                                                                  | Food and beverage                |        |         | 62,407  |   |        |         | 58,268  |   |        |         | 61,728  | 
|                                                                                          |                                                                                                                                                                                                                                  | Other                            |        |         | 14,414  |   |        |         | 11,314  |   |        |         | 11,632  | 
|                                                                                          |                                                                                                                                                                                                                                  |                                  |        |         |         |   |        |         |        
|                                                                                          | Total hotel revenues                                                                                                                                                                                                             |                                  |        | 210,418 |         |   |        | 192,403 |         |   |        | 202,701 |        
|                                                                                          | Other lease revenue                                                                                                                                                                                                              |                                  |        | 2,045   |         |   |        | 1,958   |         |   |        | 1,885   |        
|                                                                                          | Other operating revenue                                                                                                                                                                                                          |                                  |        | 380     |         |   |        | 311     |         |   |        | 451     |        
|                                                                                          | Revenues from condominium development and unit sales                                                                                                                                                                             |                                  |        | 7,541   |         |   |        | 36,883  |         |   |        | 8,715   |        
|                                                                                          |                                                                                                                                                                                                                                  |                                  |        |         |         |   |        |         |        
|                                                                                          |                                                                                                                                                                                                                                  | Total revenues                   |        |         | 220,384 |   |        |         | 231,555 |   |        |         | 213,752 | 
|                                                                                          |                                                                                                                                                                                                                                  |                                  |        |         |         |   |        |         |        
|Expenses:                                                                                 |                                                                                                                                                                                                                                  |                                  |        |         |         |   |        |         |         |   |        |        
|                                                                                          | Hotel operating expenses:                                                                                                                                                                                                        |                                  |        |         |         |   |        |         |         |   |        |         |        
|                                                                                          |                                                                                                                                                                                                                                  | Rooms                            |        |         | 33,772  |   |        |         | 30,850  |   |        |         | 31,432  | 
|                                                                                          |                                                                                                                                                                                                                                  | Food and beverage                |        |         | 43,045  |   |        |         | 40,877  |   |        |         | 42,984  | 
|                                                                                          |                                                                                                                                                                                                                                  | Other direct                     |        |         | 8,181   |   |        |         | 7,142   |   |        |         | 7,342   | 
|                                                                                          |                                                                                                                                                                                                                                  | Indirect                         |        |         | 68,256  |   |        |         | 61,672  |   |        |         | 57,912  | 
|                                                                                          |                                                                                                                                                                                                                                  | Management fees to related party |        |         | 5,801   |   |        |         | 4,339   |   |        |         | 3,741   | 
|                                                                                          |                                                                                                                                                                                                                                  | Management fees  other          |        |         | 59      |   |        |         | 882     |   |        |         | 2,261   | 
|                                                                                          |                                                                                                                                                                                                                                  |                                  |        |         |         |   |        |         |        
|                                                                                          | Total hotel operating expenses                                                                                                                                                                                                   |                                  |        | 159,114 |         |   |        | 145,762 |         |   |        | 145,672 |        
|                                                                                          | Property taxes, insurance and other                                                                                                                                                                                              |                                  |        | 15,117  |         |   |        | 14,530  |         |   |        | 12,921  |        
|                                                                                          | Cost of condominium development and unit sales                                                                                                                                                                                   |                                  |        | 5,509   |         |   |        | 24,645  |         |   |        | 6,474   |        
|                                                                                          | Real estate related depreciation and amortization                                                                                                                                                                                |                                  |        | 24,017  |         |   |        | 26,085  |         |   |        | 23,377  |        
|                                                                                          | Corporate general and administrative                                                                                                                                                                                             |                                  |        | 8,801   |         |   |        | 8,138   |         |   |        | 6,404   |        
|                                                                                          |                                                                                                                                                                                                                                  |                                  |        |         |         |   |        |         |        
|                                                                                          |                                                                                                                                                                                                                                  | Total operating expenses         |        |         | 212,558 |   |        |         | 219,160 |   |        |         | 194,848 | 
|                                                                                          |                                                                                                                                                                                                                                  |                                  |        |         |         |   |        |         |        
|                                                                                          |                                                                                                                                                                                                                                  | Operating income                 |        |         | 7,826   |   |        |         | 12,395  |   |        |         | 18,904  | 
|                                                                                          |                                                                                                                                                                                                                                  |                                  |        |         |         |   |        |         |        
|                                                                                          | Interest income                                                                                                                                                                                                                  |                                  |        | 387     |         |   |        | 602     |         |   |        | 126     |        
|                                                                                          | Other income                                                                                                                                                                                                                     |                                  |        | 8       |         |   |        | 39      |         |   |        | 80      |        
|                                                                                          | Interest expense                                                                                                                                                                                                                 |                                  |        | (13,629 | )       |   |        | (14,923 | )       |   |        | (18,068 | )      
|                                                                                          | Amortization of deferred financing costs                                                                                                                                                                                         |                                  |        | (1,367  | )       |   |        | (1,906  | )       |   |        | (2,105  | )      
|                                                                                          | Minority interest in earnings of joint ventures                                                                                                                                                                                  |                                  |        | (141    | )       |   |        | (133    | )       |   |        | (133    | )      
|                                                                                          | Minority interest in loss of operating partnership                                                                                                                                                                               |                                  |        | 1,879   |         |   |        | 1,946   |         |   |        | 980     |        
|                                                                                          | Equity in loss of unconsolidated joint ventures                                                                                                                                                                                  |                                  |        | (814    | )       |   |        | (870    | )       |   |        | (2,040  | )      
|                                                                                          |                                                                                                                                                                                                                                  |                                  |        |         |         |   |        |         |        
|Loss before gain (loss) on sale/disposal of assets and
    discontinued operations        |                                                                                                                                                                                                                                  |                                  | (5,851 | )       |         |   | (2,850 | )       |         |   | (2,256 | )      
|                                                                                          | Gain (loss) on sale/disposal of assets                                                                                                                                                                                           |                                  |        | 3,157   |         |   |        | 954     |         |   |        | (16     | )      
|                                                                                          |                                                                                                                                                                                                                                  |                                  |        |         |         |   |        |         |        
|Loss before discontinued operations                                                       |                                                                                                                                                                                                                                  |                                  | (2,694 | )       |         |   | (1,896 | )       |         |   | (2,272 | )      
|                                                                                          | Discontinued operations:                                                                                                                                                                                                         |                                  |        |         |         |   |        |         |         |   |        |         |        
|                                                                                          | Operating income (loss) from discontinued operations, net
    of operating partnership minority interest income
    (expense) of $1,038, $387 and $(340), for the years ended
    December 31, 2004, 2003 and 2002, respectively |                                  |        | (5,890  | )       |   |        | (2,184  | )       |   |        | 1,901   |        
|                                                                                          | Gain on sale of assets, net of operating partnership minority
    interest expense of $1,484 and $116 for the years ended
    December 31, 2004 and 2003, respectively                                                           |                                  |        | 8,424   |         |   |        | 654     |         |   |        |        |        
|                                                                                          |                                                                                                                                                                                                                                  |                                  |        |         |         |   |        |         |        
|Net loss                                                                                  |                                                                                                                                                                                                                                  | $                                | (160   | )       |         | $ | (3,426 | )       |         | $ | (371   | )      
|                                                                                          |                                                                                                                                                                                                                                  |                                  |        |         |         |   |        |         |        
|                                                                                          | Preferred dividends                                                                                                                                                                                                              |                                  |        | (4,751  | )       |   |        | (4,751  | )       |   |        | (1,109  | )      
|                                                                                          |                                                                                                                                                                                                                                  |                                  |        |         |         |   |        |         |        
|Net loss attributable to common shareholders                                              |                                                                                                                                                                                                                                  | $                                | (4,911 | )       |         | $ | (8,177 | )       |         | $ | (1,480 | )      
|                                                                                          |                                                                                                                                                                                                                                  |                                  |        |         |         |   |        |         |        
|Net loss per share attributable to common shareholders before
    discontinued operations |                                                                                                                                                                                                                                  |                                  |        |         |         |   |        |         |         |   |        |        
|                                                                                          | Basic                                                                                                                                                                                                                            |                                  | $      | (0.43   | )       |   | $      | (0.38   | )       |   | $      | (0.20   | )      
|                                                                                          | Diluted                                                                                                                                                                                                                          |                                  | $      | (0.43   | )       |   | $      | (0.38   | )       |   | $      | (0.20   | )      
|Discontinued operations per share                                                         |                                                                                                                                                                                                                                  |                                  |        |         |         |   |        |         |         |   |        |        
|                                                                                          | Basic                                                                                                                                                                                                                            |                                  | $      | 0.15    |         |   | $      | (0.09   | )       |   | $      | 0.11    |        
|                                                                                          | Diluted                                                                                                                                                                                                                          |                                  | $      | 0.14    |         |   | $      | (0.09   | )       |   | $      | 0.11    |        
|Net loss per share attributable to common
    shareholders(a)                             |                                                                                                                                                                                                                                  |                                  |        |         |         |   |        |         |         |   |        |        
|                                                                                          | Basic                                                                                                                                                                                                                            |                                  | $      | (0.28   | )       |   | $      | (0.47   | )       |   | $      | (0.09   | )      
|                                                                                          | Diluted                                                                                                                                                                                                                          |                                  | $      | (0.28   | )       |   | $      | (0.47   | )       |   | $      | (0.09   | )      
|Weighted average number of common shares outstanding                                      |                                                                                                                                                                                                                                  |                                  |        |         |         |   |        |         |         |   |        |        
|                                                                                          | Basic                                                                                                                                                                                                                            |                                  |        | 17,426  |         |   |        | 17,336  |         |   |        | 17,248  |        
|                                                                                          | Diluted                                                                                                                                                                                                                          |                                  |        | 17,553  |         |   |        | 17,470  |         |   |        | 17,383  |        






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



F-6



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##### Table of Contents



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, 2002   |                                                                  |                                             |        |         |        |            | 17,191,954 |         |               | $ | 312,171      |        |   | $             | (105,193 | )      |              | $ | (2,838 | )     |       | $ | (1,494 | )      |   | $ | 202,646 |       
|                             | Issuance of common shares, net of offering expenses of $3        |                                             |         |        |        |            |            | 104,461 |               |   |              | 1,126  |   |               |          |       |              |   |        |      |       |   |        | (692   | ) |   |         | 434    |       
|                             | Issuance of preferred shares, net of offering expenses of $2,016 |                                             |         | 181,000 |        |            |            |        |               |   |              | 43,234 |   |               |          |       |              |   |        |      |       |   |        |       |   |   |         | 43,234 |       
|                             | Common share purchases for treasury                              |                                             |         |        |        |            |            | (20,008 | )             |   |              | (303   | ) |               |          |       |              |   |        |      |       |   |        |       |   |   |         | (303   | )     
|                             | Dividends declared                                               |                                             |         |         |        |            |            |         |               |   |              |        |   |               |          |        |              |   |        |       |       |   |        |        |   |   |         |        |       
|                             |                                                                  |  $0.36 per common share                    |         |         |       |            |            |         |              |   |              |        |  |               |          |        | (6,297       | ) |        |       |      |   |        |        |  |   |         |        | (6,297 | )
|                             |                                                                  |  $6.125 per Class A preferred share        |         |         |       |            |            |         |              |   |              |        |  |               |          |        | (1,109       | ) |        |       |      |   |        |        |  |   |         |        | (1,109 | )
|                             | Amortization of unearned compensation                            |                                             |         |        |        |            |            |        |               |   |              |       |   |               |          |       |              |   |        |      |       |   |        | 992    |   |   |         | 992    |       
|                             | Net loss                                                         |                                             |         |        |        |            |            |        |               |   |              |       |   |               |          | (371   | )            |   |        |      |       |   |        |       |   |   |         | (371   | )     
|                             |                                                                  | Other comprehensive income                  |         |         |        |            |            |         |               |   |              |        |   |               |          |        |              |   |        |       |       |   |        |        |   |   |         |        |        |  
|                             |                                                                  |  net unrealized gain on interest rate swap |         |         |       |            |            |         |              |   |              |        |  |               |          |        |             |   |        |       | 1,065 |   |        |        |  |   |         |        | 1,065  |  
|                             |                                                                  |                                             |         |         |        |            |            |         |               |   |              |        |   |               |          |        |              |   |        |       |      
|                             | Total comprehensive income                                       |                                             |         |        |        |            |            |        |               |   |              |       |   |               |          |       |              |   |        |      |       |   |        |       |   |   |         | 694    |       
|                             |                                                                  |                                             |         |         |        |            |            |         |               |   |              |        |   |               |          |        |              |   |        |       |      
|Balance at December 31, 2002 |                                                                  |                                             | 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 |       
|                             | Issuance of common shares                                        |                                             |         |        |        |            |            | 128,745 |               |   |              |       |   |               |          |       |              |   |        |      |       |   |        |       |   |   |         |       |       
|                             | 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 |       
|                             |                                                                  |                                             |         |         |        |            |            |         |               |   |              |        |   |               |          |        |              |   |        |       |      



F-7



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##### Table of Contents



BOYKIN LODGING COMPANY








|                                                         |                                                                                           |                                                 |                                       |         |         |        |         |         |        |         |         |         |        |        |  
|-------------------------------------------------------- | ----------------------------------------------------------------------------------------- | ----------------------------------------------- | ------------------------------------- | ------- | ------- | ------ | ------- | ------- | ------ | ------- | ------- | ------- | ------ | ------ | -
|                                                         |                                                                                           | 2004                                            |                                       |         | 2003    |        |         | 2002    |       
|                                                         |                                                                                           |                                                 |                                       |         |         |        |         |         |       
|Cash flows from operating activities:                    |                                                                                           |                                                 |                                       |         |         |        |         |         |        |         |         |        
|                                                         | Net loss                                                                                  |                                                 | $                                     | (160    | )       |        | $       | (3,426  | )      |         | $       | (371    | )     
|                                                         | Adjustments to reconcile net loss to net cash flow provided by
    operating activities  |                                                 |                                       |         |         |        |         |         |        |         |         |         |       
|                                                         |                                                                                           | (Gain) loss on sale/disposal of assets          |                                       |         | (13,080 | )      |         |         | (2,274 | )       |         |         | 18     |       
|                                                         |                                                                                           | Impairment of real estate                       |                                       |         | 4,300   |        |         |         | 2,800  |         |         |         |       |       
|                                                         |                                                                                           | Depreciation and amortization                   |                                       |         | 28,073  |        |         |         | 33,822 |         |         |         | 32,356 |       
|                                                         |                                                                                           | Amortization of unearned compensation           |                                       |         | 1,009   |        |         |         | 756    |         |         |         | 992    |       
|                                                         |                                                                                           | Equity in loss of unconsolidated joint ventures |                                       |         | 814     |        |         |         | 870    |         |         |         | 2,040  |       
|                                                         |                                                                                           | Minority interests                              |                                       |         | 803     |        |         |         | (3,319 | )       |         |         | (507   | )     
|                                                         |                                                                                           | Changes in assets and liabilities              |                                       |         |         |        |         |         |        |         |         |         |        |       
|                                                         |                                                                                           |                                                 | Accounts receivable and inventories   |         |         | 28,808 |         |         |        | (31,083 | )       |         |        | 266    |  
|                                                         |                                                                                           |                                                 | Restricted cash                       |         |         | 2,343  |         |         |        | (1,851  | )       |         |        | (4,069 | )
|                                                         |                                                                                           |                                                 | Accounts payable and accrued expenses |         |         | (9,118 | )       |         |        | 1,902   |         |         |        | 1,321  |  
|                                                         |                                                                                           |                                                 | Amounts due to/from lessees           |         |         | 80     |         |         |        | (217    | )       |         |        | 3,092  |  
|                                                         |                                                                                           |                                                 | Other                                 |         |         | (1,232 | )       |         |        | 4,193   |         |         |        | 4,050  |  
|                                                         |                                                                                           |                                                 |                                       |         |         |        |         |         |       
|Net cash flow provided by operating activities           |                                                                                           |                                                 | 42,640                                |         |         |        | 2,173   |         |        |         | 39,188  |        
|                                                         |                                                                                           |                                                 |                                       |         |         |        |         |         |       
|                                                        
|Cash flows from investing activities:                    |                                                                                           |                                                 |                                       |         |         |        |         |         |        |         |         |        
|                                                         | Cash assumed in connection with termination of leases                                     |                                                 |                                       |        |         |        |         |        |        |         |         | 5,765   |       
|                                                         | Investment in unconsolidated joint ventures                                               |                                                 |                                       | (438    | )       |        |         | (481    | )      |         |         | (4,408  | )     
|                                                         | Distributions received from unconsolidated joint ventures                                 |                                                 |                                       | 1,698   |         |        |         | 572     |        |         |         | 148     |       
|                                                         | Improvements and additions to hotel properties, net                                       |                                                 |                                       | (30,834 | )       |        |         | (54,210 | )      |         |         | (13,490 | )     
|                                                         | Net proceeds from sale of assets                                                          |                                                 |                                       | 93,101  |         |        |         | 30,336  |        |         |         |        |       
|                                                         |                                                                                           |                                                 |                                       |         |         |        |         |         |       
|Net cash flow provided by (used in) investing activities |                                                                                           |                                                 | 63,527                                |         |         |        | (23,783 | )       |        |         | (11,985 | )      
|                                                         |                                                                                           |                                                 |                                       |         |         |        |         |         |       
|                                                        
|Cash flows from financing activities:                    |                                                                                           |                                                 |                                       |         |         |        |         |         |        |         |         |        
|                                                         | Payments of dividends and distributions                                                   |                                                 |                                       | (4,751  | )       |        |         | (11,485 | )      |         |         | (3,638  | )     
|                                                         | Net borrowings (repayments) against credit facilities                                     |                                                 |                                       | (65,500 | )       |        |         | 71,946  |        |         |         | (39,000 | )     
|                                                         | Term note borrowings                                                                      |                                                 |                                       | 14,133  |         |        |         | 13,222  |        |         |         |        |       
|                                                         | Repayment of term notes                                                                   |                                                 |                                       | (47,537 | )       |        |         | (61,106 | )      |         |         | (5,144  | )     
|                                                         | Payment of deferred financing costs                                                       |                                                 |                                       | (327    | )       |        |         | (2,339  | )      |         |         | (830    | )     
|                                                         | Net proceeds from issuance of preferred shares                                            |                                                 |                                       |        |         |        |         |        |        |         |         | 43,234  |       
|                                                         | Net proceeds from issuance of common shares                                               |                                                 |                                       |        |         |        |         | 153     |        |         |         | 434     |       
|                                                         | Cash payment for common share purchases                                                   |                                                 |                                       | (191    | )       |        |         | (81     | )      |         |         | (172    | )     
|                                                         | Distributions to joint venture minority interest partners, net                            |                                                 |                                       | (2,486  | )       |        |         | (140    | )      |         |         | (244    | )     
|                                                         |                                                                                           |                                                 |                                       |         |         |        |         |         |       
|Net cash flow provided by (used in) financing activities |                                                                                           |                                                 | (106,659                              | )       |         |        | 10,170  |         |        |         | (5,360  | )      
|                                                         |                                                                                           |                                                 |                                       |         |         |        |         |         |       
|Net change in cash and cash equivalents                  |                                                                                           | $                                               | (492                                  | )       |         | $      | (11,440 | )       |        | $       | 21,843  |        
|Cash and cash equivalents, beginning of year             |                                                                                           |                                                 | 14,013                                |         |         |        | 25,453  |         |        |         | 3,610   |        
|                                                         |                                                                                           |                                                 |                                       |         |         |        |         |         |       
|Cash and cash equivalents, end of year                   |                                                                                           | $                                               | 13,521                                |         |         | $      | 14,013  |         |        | $       | 25,453  |        
|                                                         |                                                                                           |                                                 |                                       |         |         |        |         |         |       



F-8



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##### Table of Contents



BOYKIN LODGING COMPANY










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







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









| |                            
| | ---------------------------
| | 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 DiegoAirport/Sea World |  |  | Outrigger     |  |  |  | N/A         | 



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



F-9



---



##### Table of Contents











|                                                    |  |              |        |  |                |   |        |      |  |   |        |  |  |   |        | 
|--------------------------------------------------- |  | ------------ | ------ |  | -------------- | - | ------ | ---- |  | - | ------ |  |  | - | ------ | 
|                                                    |  | Boykin/AEW   |        |  | Boykin/Concord |  
|                                                    |  | December 31, |        |  | December 31,   |  
|                                                    |  |              |        |  |                |  
|                                                    |  | 2004         |        |  | 2003           |   |        | 2004 |  |   | 2003   | 
|                                                    |  |              |        |  |                |   |        |      |  |   |        | 
|Total assets                                        |  | $            | 65,975 |  |                | $ | 68,601 |      |  | $ | 21,069 |  |  | $ | 22,272 | 
|                                                    |  |              |        |  |                |   |        |      |  |   |        | 
|Accrued expenses                                    |  |              | 2,593  |  |                |   | 2,884  |      |  |   | 485    |  |  |   | 469    | 
|Outstanding debt                                    |  |              | 36,116 |  |                |   | 37,236 |      |  |   | 18,398 |  |  |   | 16,728 | 
|                                                    |  |              |        |  |                |   |        |      |  |   |        | 
|Total liabilities                                   |  |              | 38,709 |  |                |   | 40,120 |      |  |   | 18,883 |  |  |   | 17,197 | 
|Minority interest                                   |  |              | 6,781  |  |                |   | 7,081  |      |  |   |       |  |  |   |       | 
|Equity                                              |  |              | 20,485 |  |                |   | 21,400 |      |  |   | 2,186  |  |  |   | 5,075  | 
|Boykins share of equity and minority interest      |  |              | 11,999 |  |                |   | 12,627 |      |  |   | 1,093  |  |  |   | 2,537  | 
|Boykins additional basis in Boykin Chicago, L.L.C. |  |              | 956    |  |                |   | 994    |      |  |   |       |  |  |   |       | 
|                                                    |  |              |        |  |                |   |        |      |  |   |        | 
|Investment in unconsolidated joint venture          |  | $            | 12,955 |  |                | $ | 13,621 |      |  | $ | 1,093  |  |  | $ | 2,537  | 
|                                                    |  |              |        |  |                |   |        |      |  |   |        | 

|                                           |  |              |         |   |                |   |        |      |  |   |        |   |  |      |        |   |      |   |        |   |  |   |        |  
|------------------------------------------ |  | ------------ | ------- | - | -------------- | - | ------ | ---- |  | - | ------ | - |  | ---- | ------ | - | ---- | - | ------ | - |  | - | ------ | -
|                                           |  | Boykin/AEW   |         |   | Boykin/Concord |  
|                                           |  | December 31, |         |   | December 31,   |  
|                                           |  |              |         |   |                |  
|                                           |  | 2004         |         |   | 2003           |   |        | 2002 |  |   | 2004   |   |  | 2003 |        |   | 2002 |  
|                                           |  |              |         |   |                |   |        |      |  |   |        |   |  |      |        |   |      |  
|Revenues                                   |  | $            | 16,093  |   |                | $ | 14,942 |      |  | $ | 10,049 |   |  | $    | 7,437  |   |      | $ | 6,709  |   |  | $ | 5,529  |  
|Hotel operating expenses                   |  |              | (10,698 | ) |                |   | (9,836 | )    |  |   | (8,752 | ) |  |      | (4,297 | ) |      |   | (3,856 | ) |  |   | (3,495 | )
|Management fees  related parties          |  |              | (483    | ) |                |   | (446   | )    |  |   | (75    | ) |  |      |       |   |      |   |       |   |  |   |       |  
|Real estate related depreciation           |  |              | (3,102  | ) |                |   | (3,099 | )    |  |   | (1,938 | ) |  |      | (1,114 | ) |      |   | (1,139 | ) |  |   | (1,011 | )
|Property taxes, insurance and other        |  |              | (1,710  | ) |                |   | (1,245 | )    |  |   | (1,360 | ) |  |      | (554   | ) |      |   | (537   | ) |  |   | (493   | )
|                                           |  |              |         |   |                |   |        |      |  |   |        |   |  |      |        |   |      |  
|Operating income (loss)                    |  |              | 100     |   |                |   | 316    |      |  |   | (2,076 | ) |  |      | 1,472  |   |      |   | 1,177  |   |  |   | 530    |  
|Interest and other income                  |  |              | 35      |   |                |   | 14     |      |  |   | 26     |   |  |      | 5      |   |      |   | 13     |   |  |   | 2      |  
|Amortization                               |  |              | (289    | ) |                |   | (282   | )    |  |   | (334   | ) |  |      | (151   | ) |      |   | (88    | ) |  |   | (87    | )
|Interest expense                           |  |              | (1,760  | ) |                |   | (1,716 | )    |  |   | (1,648 | ) |  |      | (926   | ) |      |   | (792   | ) |  |   | (799   | )
|Other                                      |  |              | (1      | ) |                |   | (5     | )    |  |   | (107   | ) |  |      | (156   | ) |      |   | (578   | ) |  |   | (94    | )
|                                           |  |              |         |   |                |   |        |      |  |   |        |   |  |      |        |   |      |  
|Net income (loss) before minority interest |  |              | (1,915  | ) |                |   | (1,673 | )    |  |   | (4,139 | ) |  |      | 244    |   |      |   | (268   | ) |  |   | (448   | )
|Boykins share of net income (loss)        |  |              | (936    | ) |                |   | (736   | )    |  |   | (1,816 | ) |  |      | 122    |   |      |   | (134   | ) |  |   | (224   | )



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





F-10



---



##### Table of Contents













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







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



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





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



F-11



---



##### Table of Contents





|                                |  |      |          |   |      |   |          |  
|------------------------------- |  | ---- | -------- | - | ---- | - | -------- | -
|                                |  | 2004 |          |   | 2003 |  
|                                |  |      |          |   |      |  
|Land                            |  | $    | 55,009   |   |      | $ | 55,009   |  
|Buildings and improvements      |  |      | 416,563  |   |      |   | 409,393  |  
|Furniture and equipment         |  |      | 68,893   |   |      |   | 64,659   |  
|Construction in progress        |  |      | 4,677    |   |      |   | 5,414    |  
|                                |  |      |          |   |      |  
|                                |  |      | 545,142  |   |      |   | 534,475  |  
|Less  Accumulated depreciation |  |      | (134,347 | ) |      |   | (124,599 | )
|                                |  |      |          |   |      |  
|                                |  | $    | 410,795  |   |      | $ | 409,876  |  
|                                |  |      |          |   |      |  













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





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



F-12



---



##### Table of Contents







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





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





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



|                         |  |      |        |   |      |   |        |  
|------------------------ |  | ---- | ------ | - | ---- | - | ------ | -
|                         |  | 2004 |        |   | 2003 |  
|                         |  |      |        |   |      |  
|Financing costs          |  | $    | 5,269  |   |      | $ | 5,092  |  
|Franchise fees           |  |      | 352    |   |      |   | 272    |  
|                         |  |      |        |   |      |  
|                         |  |      | 5,621  |   |      |   | 5,364  |  
|Accumulated amortization |  |      | (3,607 | ) |      |   | (2,416 | )
|                         |  |      |        |   |      |  
|                         |  | $    | 2,014  |   |      | $ | 2,948  |  
|                         |  |      |        |   |      |  







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





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



F-13



---



##### Table of Contents







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



1 2




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

Hotel revenues


Lease revenue


Percentage of Completion




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





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







F-14



---



##### Table of Contents













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









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





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





F-15



---



##### Table of Contents







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







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







|              |  |                 |      |   |                   |  |       |                  |  |  |       |   |  |  |        | 
|------------- |  | --------------- | ---- | - | ----------------- |  | ----- | ---------------- |  |  | ----- | - |  |  | ------ | 
|Common Shares | 
|              | 
|Year          |  | Ordinary Income |      |   | Return of Capital |  |       | 20% Capital Gain |  |  | Total |  
|              |  |                 |      |   |                   |  |       |                  |  |  |       |  
|2004          |  |                 | N/A  |   |                   |  | N/A   |                  |  |  | N/A   |   |  |  | N/A    | 
|2003          |  |                 |     |   |                   |  | 100.0 | %                |  |  |      |   |  |  | 100.0% | 
|2002          |  |                 | 90.8 | % |                   |  |      |                  |  |  | 9.2   | % |  |  | 100.0% | 

|                 |  |                 |       |  |           |  |     |                   |  |  |                  |   |  |       |     |   |  |  |       |  
|---------------- |  | --------------- | ----- |  | --------- |  | --- | ----------------- |  |  | ---------------- | - |  | ----- | --- | - |  |  | ----- | -
|Preferred Shares | 
|                 | 
|Year             |  | Ordinary Income |       |  | Qualified |  |     | Return of Capital |  |  | 20% Capital Gain |   |  | Total |    
|                 |  |                 |       |  |           |  |     |                   |  |  |                  |   |  |       |    
|2004             |  |                 | 89.9% |  |           |  | 8.1 | %                 |  |  | 2.0              | % |  |       |    |   |  |  | 100.0 | %
|2003             |  |                 | 92.9% |  |           |  |    |                   |  |  | 7.1              | % |  |       |    |   |  |  | 100.0 | %
|2002             |  |                 | 90.8% |  |           |  |    |                   |  |  |                 |   |  |       | 9.2 | % |  |  | 100.0 | %



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



F-16



---



##### Table of Contents





|                               |                         |                         |            |        |      |  |            |         |  |  |            |        | 
|------------------------------ | ----------------------- | ----------------------- | ---------- | ------ | ---- |  | ---------- | ------- |  |  | ---------- | ------ | 
|                               |                         | Year Ended December 31, |           
|                               |                         | 2004                    |            |        | 2003 |  |            | 2002    | 
|                               |                         |                         |            |        |      |  |            |         | 
|Basic                          |                         |                         | 17,426,458 |        |      |  | 17,336,258 |         |  |  | 17,248,173 |       
|Effect of dilutive securities: |                         |                         |            |        |      |  |            |         |  |  |            |       
|                               | Common stock options    |                         |            | 28,213 |      |  |            | 18,332  |  |  |            | 51,523 | 
|                               | Restricted share grants |                         |            | 98,530 |      |  |            | 115,062 |  |  |            | 83,063 | 
|                               |                         |                         |            |        |      |  |            |         | 
|Diluted                        |                         |                         | 17,553,201 |        |      |  | 17,469,652 |         |  |  | 17,382,759 |       





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





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















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



F-17



---



##### Table of Contents





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











F-18



---



##### Table of Contents







|                                                                 |         |                         |        |       |           |   |        |           |   |   |        |       |  
|---------------------------------------------------------------- | ------- | ----------------------- | ------ | ----- | --------- | - | ------ | --------- | - | - | ------ | ----- | -
|                                                                 |         | Year Ended December 31, |       
|                                                                 |         | 2004                    |        |       | 2003      |   |        | 2002      |  
|                                                                 |         | Pro Forma               |        |       | Pro Forma |   |        | Pro Forma |  
|                                                                 |         |                         |        |       |           |   |        |           |  
|Net loss attributable to common shareholders                     |         | $                       | (4,911 | )     |           | $ | (8,177 | )         |   | $ | (1,480 | )    
|Stock-based employee compensation expense                        |         |                         | (126   | )     |           |   | (126   | )         |   |   | (151   | )    
|                                                                 |         |                         |        |       |           |   |        |           |  
|Proforma net loss attributable to common shareholders            |         | $                       | (5,037 | )     |           | $ | (8,303 | )         |   | $ | (1,631 | )    
|                                                                 |         |                         |        |       |           |   |        |           |  
|Proforma net loss attributable to common shareholders per share: |         |                         |        |       |           |   |        |           |   |   |        |      
|                                                                 | Basic   |                         | $      | (0.29 | )         |   | $      | (0.48     | ) |   | $      | (0.09 | )
|                                                                 | Diluted |                         | $      | (0.29 | )         |   | $      | (0.48     | ) |   | $      | (0.09 | )







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





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



F-19



---



##### Table of Contents





| |                       
| | ----------------------
| | 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:                |  |                  |  |                  |  |           |  |            |        |            |             |      |         |         
|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



---



##### Table of Contents





|                                                       |                                            |                         |         |        |      |   |         |        |   |   |         |       | 
|------------------------------------------------------ | ------------------------------------------ | ----------------------- | ------- | ------ | ---- | - | ------- | ------ | - | - | ------- | ----- | 
|                                                       |                                            | Year Ended December 31, |        
|                                                       |                                            | 2004                    |         |        | 2003 |   |         | 2002   |  
|                                                       |                                            |                         |         |        |      |   |         |        |  
|Lease revenue                                          |                                            | $                       |        |        |      | $ |        |        |   | $ | 2,845   |      
|Hotel revenues                                         |                                            |                         | 20,169  |        |      |   | 44,745  |        |   |   | 50,258  |      
|Hotel operating expenses                               |                                            |                         | (16,281 | )      |      |   | (35,422 | )      |   |   | (38,153 | )    
|Management fees to related party                       |                                            |                         | (261    | )      |      |   | (419    | )      |   |   | (598    | )    
|Management fees  other                                |                                            |                         | (193    | )      |      |   | (672    | )      |   |   | (798    | )    
|Property taxes, insurance and other                    |                                            |                         | (1,076  | )      |      |   | (2,674  | )      |   |   | (2,979  | )    
|Other expenses                                         |                                            |                         | (71     | )      |      |   | (35     | )      |   |   | (96     | )    
|Interest income                                        |                                            |                         | 14      |        |      |   | 18      |        |   |   | 17      |      
|Other income                                           |                                            |                         | 40      |        |      |   | 42      |        |   |   | 564     |      
|Interest expense                                       |                                            |                         | (200    | )      |      |   | (1,307  | )      |   |   | (1,943  | )    
|Real estate related depreciation and amortization      |                                            |                         | (2,602  | )      |      |   | (5,632  | )      |   |   | (6,797  | )    
|Impairment of real estate                              |                                            |                         | (4,300  | )      |      |   | (2,800  | )      |   |   |        |      
|Amortization of deferred financing costs               |                                            |                         | (87     | )      |      |   | (200    | )      |   |   | (77     | )    
|Minority interest in (earnings) loss of joint ventures |                                            |                         | (2,095  | )      |      |   | 1,235   |        |   |   |        |      
|Gain (loss) on sale of individual assets               |                                            |                         | 15      |        |      |   | 550     |        |   |   | (2      | )    
|                                                       |                                            |                         |         |        |      |   |         |        |  
|                                                       | Income (loss) from discontinued operations |                         | $       | (6,928 | )    |   | $       | (2,571 | ) |   | $       | 2,241 | 
|                                                       |                                            |                         |         |        |      |   |         |        |  

|                                      |                   |              |        |        | 
|------------------------------------- | ----------------- | ------------ | ------ | ------ | 
|                                      |                   | December 31, |       
|                                      |                   | 2003         |       
|                                      |                   |              |       
|Accounts receivable, net              |                   | $            | 879    |       
|Inventories                           |                   |              | 229    |       
|Other assets                          |                   |              | 669    |       
|Deferred financing costs, net         |                   |              | 158    |       
|Investment in hotel properties, net   |                   |              | 80,849 |       
|                                      |                   |              |       
|                                      | Total assets      |              | $      | 82,784 | 
|                                      |                   |              |       
|Accounts payable and accrued expenses |                   | $            | 2,574  |       
|Accounts payable to related party     |                   |              | 118    |       
|Term notes payable                    |                   |              | 16,870 |       
|Minority interest                     |                   |              | 210    |       
|                                      |                   |              |       
|                                      | Total liabilities |              | $      | 19,772 | 
|                                      |                   |              |       



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





F-21



---



##### Table of Contents





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













F-22



---



##### Table of Contents





|                    |  |   |         | 
|------------------- |  | - | ------- | 
|2005                |  | $ | 95,010  | 
|2006                |  |   | 4,166   | 
|2007                |  |   | 4,448   | 
|2008                |  |   | 4,788   | 
|2009                |  |   | 5,134   | 
|2010 and thereafter |  |   | 79,993  | 
|                    |  |   |        
|                    |  | $ | 193,539 | 
|                    |  |   |        



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



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





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



1 2




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







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



F-23



---



##### Table of Contents









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





|     |  |   |       | 
|---- |  | - | ----- | 
|2005 |  | $ | 1,418 | 
|2006 |  |   | 1,418 | 
|2007 |  |   | 1,209 | 
|     |  |   |      
|     |  | $ | 4,045 | 
|     |  |   |      



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



F-24



---



##### Table of Contents





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



|                                 |                                          |                   |         |                      |                      |   |       |       | 
|-------------------------------- | ---------------------------------------- | ----------------- | ------- | -------------------- | -------------------- | - | ----- | ----- | 
|                                 |                                          |                   |         | Weighted Average Per |                     
|                                 |                                          | Number of Options |         |                      | Share Exercise Price |  
|                                 |                                          |                   |         |                      |                      |  
|Outstanding at January 1, 2002   |                                          |                   | 594,139 |                      |                      | $ | 12.84 |      
|                                 | Options granted (officers and employees) |                   |         | 353,000              |                      |   | $     | 8.30  | 
|                                 | Options exercised/ forfeited/expired     |                   |         | (108,000             | )                    |   | $     | 10.48 | 
|                                 |                                          |                   |         |                      |                      |  
|Outstanding at December 31, 2002 |                                          |                   | 839,139 |                      |                      | $ | 11.24 |      
|                                 | Options granted                          |                   |         |                     |                      |   |       |      | 
|                                 | 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 |      

|     |  |         |         |                  |                 |                     |      |                     |  |                      |                      |  |  |   |       | 
|---- |  | ------- | ------- | ---------------- | --------------- | ------------------- | ---- | ------------------- |  | -------------------- | -------------------- |  |  | - | ----- | 
|     |  |         |         |                  |                 | Exercisable Options |     
|     |  |         |         | Weighted Average |                 |                     |      |                    
|     |  | Options |         |                  | Fair Value of   |                     |      |                     |  | Weighted Average Per |                     
|Year |  | Granted |         |                  | Options Granted |                     |      | Options Outstanding |  |                      | Share Exercise Price | 
|     |  |         |         |                  |                 |                     |      |                     |  |                      |                      | 
|2004 |  |         |        |                  |                 |                     |     |                     |  |                      | 613,006              |  |  | $ | 12.21 | 
|2003 |  |         |        |                  |                 |                     |     |                     |  |                      | 518,539              |  |  | $ | 12.87 | 
|2002 |  |         | 353,000 |                  |                 | $                   | 1.05 |                     |  |                      | 422,405              |  |  | $ | 13.72 | 



|                 |  |               |         |                  |                     |   |                  |                  |  |  |             |                  |  |                |         |  |  |   |       | 
|---------------- |  | ------------- | ------- | ---------------- | ------------------- | - | ---------------- | ---------------- |  |  | ----------- | ---------------- |  | -------------- | ------- |  |  | - | ----- | 
|                 |  | Total Options |         |                  | Exercisable Options |  
|                 |  |               |         |                  |                     |  
|                 |  |               |         | Weighted Average |                     |   | Weighted Average |                  |  |  |             | Weighted Average | 
|Range of         |  | Options       |         |                  | Per Share           |   |                  | Remaining        |  |  | Options     |                  |  | Per Share      |        
|Exercise Prices  |  | Outstanding   |         |                  | Exercise Price      |   |                  | Contractual Life |  |  | Outstanding |                  |  | Exercise Price |        
|                 |  |               |         |                  |                     |   |                  |                  |  |  |             |                  |  |                |        
|$7.295  $8.40   |  |               | 479,000 |                  |                     | $ | 8.00             |                  |  |  | 7.0 years   |                  |  |                | 272,667 |  |  | $ | 7.72  | 
|$10.938  $13.75 |  |               | 235,139 |                  |                     | $ | 12.36            |                  |  |  | 4.5 years   |                  |  |                | 215,339 |  |  | $ | 12.49 | 
|$20.00  $25.626 |  |               | 125,000 |                  |                     | $ | 21.52            |                  |  |  | 2.1 years   |                  |  |                | 125,000 |  |  | $ | 21.52 | 
|                 |  |               |         |                  |                     |   |                  |                  |  |  |             |                  |  |                |        
|                 |  |               | 839,139 |                  |                     | $ | 11.24            |                  |  |  | 5.6 years   |                  |  |                | 613,006 |  |  | $ | 12.21 | 
|                 |  |               |         |                  |                     |   |                  |                  |  |  |             |                  |  |                |        





|                        |  |                    |   |  |      |  |   |      |  |  |            | 
|----------------------- |  | ------------------ | - |  | ---- |  | - | ---- |  |  | ---------- | 
|                        |  | Options Issued In: |  
|                        |  | 2004               |   |  | 2003 |  |   | 2002 | 
|                        |  |                    |   |  |      |  |   |      | 
|Dividend yield          |  |                    |  |  |      |  |  |      |  |  | 10.00%     | 
|Expected volatility     |  |                    |  |  |      |  |  |      |  |  | 34.30%     | 
|Risk-free interest rate |  |                    |  |  |      |  |  |      |  |  | 4.40%      | 
|Expected holding period |  |                    |  |  |      |  |  |      |  |  | 5.0  years | 

F-25



---



##### Table of Contents





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



|                                                  |  |      |          |   |      |  |         |  
|------------------------------------------------- |  | ---- | -------- | - | ---- |  | ------- | -
|                                                  |  | 2004 |          |   | 2003 | 
|                                                  |  |      |          |   |      | 
|Restricted shares outstanding  beginning of year |  |      | 288,740  |   |      |  | 219,352 |  
|New share grants                                  |  |      | 174,789  |   |      |  | 132,000 |  
|Shares cancelled                                  |  |      |         |   |      |  | (3,481  | )
|Shares vested                                     |  |      | (128,745 | ) |      |  | (59,131 | )
|                                                  |  |      |          |   |      | 
|Restricted shares outstanding  end of year       |  |      | 334,784  |   |      |  | 288,740 |  
|                                                  |  |      |          |   |      | 





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





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









|                    |  |   |        | 
|------------------- |  | - | ------ | 
|2005                |  | $ | 3,999  | 
|2006                |  |   | 1,075  | 
|2007                |  |   | 932    | 
|2008                |  |   | 624    | 
|2009                |  |   | 536    | 
|2010 and thereafter |  |   | 22,677 | 
|                    |  |   |       
|                    |  | $ | 29,843 | 
|                    |  |   |       

F-26



---



##### Table of Contents











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







F-27



---



##### Table of Contents

















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







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



|                                                                                       |         |                            |        |        |         |   |        |              |   |   |             |        |   |   |        |        |  
|-------------------------------------------------------------------------------------- | ------- | -------------------------- | ------ | ------ | ------- | - | ------ | ------------ | - | - | ----------- | ------ | - | - | ------ | ------ | -
|                                                                                       |         | For the 2004 Quarter Ended |       
|                                                                                       |         | March 31                   |        |        | June 30 |   |        | September 30 |   |   | December 31 |       
|                                                                                       |         |                            |        |        |         |   |        |              |   |   |             |       
|Total revenues                                                                         |         | $                          | 54,627 |        |         | $ | 56,563 |              |   | $ | 58,902      |        |   | $ | 50,292 |       
|Loss attributable to common shareholders before discontinued
    operations            |         |                            | (1,546 | )      |         |   | (910   | )            |   |   | (191        | )      |   |   | (4,798 | )     
|Discontinued operations, net of minority interest                                      |         |                            | (2,964 | )      |         |   | 543    |              |   |   | 4,912       |        |   |   | 43     |       
|                                                                                       |         |                            |        |        |         |   |        |              |   |   |             |       
|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   |                            |        | (0.09  | )       |   |        | (0.05        | ) |   |             | (0.01  | ) |   |        | (0.28  | )
|                                                                                       | Diluted |                            |        | (0.09  | )       |   |        | (0.05        | ) |   |             | (0.01  | ) |   |        | (0.28  | )
|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 |  

F-28



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##### Table of Contents



|                                                                                       |         |                            |        |        |         |   |        |              |   |   |             |        |   |   |        |        |  
|-------------------------------------------------------------------------------------- | ------- | -------------------------- | ------ | ------ | ------- | - | ------ | ------------ | - | - | ----------- | ------ | - | - | ------ | ------ | -
|                                                                                       |         | For the 2003 Quarter Ended |       
|                                                                                       |         | March 31                   |        |        | June 30 |   |        | September 30 |   |   | December 31 |       
|                                                                                       |         |                            |        |        |         |   |        |              |   |   |             |       
|Total revenues                                                                         |         | $                          | 55,638 |        |         | $ | 58,940 |              |   | $ | 61,721      |        |   | $ | 55,256 |       
|Loss attributable to common shareholders before discontinued
    operations            |         |                            | (2,260 | )      |         |   | (1,975 | )            |   |   | (156        | )      |   |   | (2,256 | )     
|Discontinued operations, net of minority interest                                      |         |                            | (466   | )      |         |   | 345    |              |   |   | (21         | )      |   |   | (1,388 | )     
|                                                                                       |         |                            |        |        |         |   |        |              |   |   |             |       
|Net loss attributable to common shareholders                                           |         |                            | (2,726 | )      |         |   | (1,630 | )            |   |   | (177        | )      |   |   | (3,644 | )     
|Loss attributable to common shareholders before discontinued
    operations per share: |         |                            |        |        |         |   |        |              |   |   |             |        |   |   |        |       
|                                                                                       | Basic   |                            |        | (0.13  | )       |   |        | (0.11        | ) |   |             | (0.01  | ) |   |        | (0.13  | )
|                                                                                       | Diluted |                            |        | (0.13  | )       |   |        | (0.11        | ) |   |             | (0.01  | ) |   |        | (0.13  | )
|Net loss attributable to common shareholders per share:                                |         |                            |        |        |         |   |        |              |   |   |             |        |   |   |        |       
|                                                                                       | Basic   |                            |        | (0.16  | )       |   |        | (0.09        | ) |   |             | (0.01  | ) |   |        | (0.21  | )
|                                                                                       | Diluted |                            |        | (0.16  | )       |   |        | (0.09        | ) |   |             | (0.01  | ) |   |        | (0.21  | )
|Weighted average number of common shares outstanding
    (in thousands):               |         |                            |        |        |         |   |        |              |   |   |             |        |   |   |        |       
|                                                                                       | Basic   |                            |        | 17,317 |         |   |        | 17,339       |   |   |             | 17,344 |   |   |        | 17,344 |  
|                                                                                       | Diluted |                            |        | 17,413 |         |   |        | 17,420       |   |   |             | 17,445 |   |   |        | 17,509 |  



| |                      
| | ---------------------
| | 17. Subsequent Event:



F-29



---



##### Table of Contents



BOYKIN LODGING COMPANY








|                                                                    |       |              |   |              |      |                   |                           |              |                        |                            |              |         |  |              |        |              |      |   |        |              |  |   |             |        |  |   |        |         |  |   |        |         | 
|------------------------------------------------------------------- | ----- | ------------ | - | ------------ | ---- | ----------------- | ------------------------- | ------------ | ---------------------- | -------------------------- | ------------ | ------- |  | ------------ | ------ | ------------ | ---- | - | ------ | ------------ |  | - | ----------- | ------ |  | - | ------ | ------- |  | - | ------ | ------- | 
|                                                                    |       |              |   |              |      | Costs Capitalized |                           |              | Gross Amounts at Which |                           
|                                                                    |       |              |   | Initial Cost |      |                   | Subsequent to Acquisition |              |                        | Carried at Close of Period |             
|                                                                    |       |              |   |              |      |                   |                           |              |                        |                            |             
|                                                                    |       |              |   |              |      | Buildings and     |                           |              |                        |                            | Building and |         |  |              |        | Building and |      |   |       
|Description                                                         |       | Encumbrances |   |              | Land |                   |                           | Improvements |                        |                            | Land         |         |  | Improvements |        |              | Land |   |        | Improvements |  |   | Total(f)(g) |       
|                                                                    |       |              |   |              |      |                   |                           |              |                        |                            |              |         |  |              |        |              |      |   |        |              |  |   |             |       
|Corporate Offices
    Cleveland, Ohio                               |       |              |  |              |      | $                 |                          |              |                        | $                          |             |         |  | $            |       |              |      | $ | 35     |              |  | $ |            |        |  | $ | 35     |         |  | $ | 35     |        
|Doubletree Berkeley Marina
    Berkeley, California                 |       |              |  | (c)          |      |                   |                          |              |                        |                            | 10,807       |         |  |              |       |              |      |   | 15,408 |              |  |   |            |        |  |   | 26,215 |         |  |   | 26,215 |        
|Buffalo Marriott
    Buffalo, New York                              |       |              |  | (c)          |      |                   | 1,164                     |              |                        |                            | 15,174       |         |  |              |       |              |      |   | 4,002  |              |  |   | 1,164       |        |  |   | 19,176 |         |  |   | 20,340 |        
|Cleveland Airport Marriott
    Cleveland, Ohio                      |       |              |  | (c)          |      |                   | 1,175                     |              |                        |                            | 11,441       |         |  |              |       |              |      |   | 9,136  |              |  |   | 1,175       |        |  |   | 20,577 |         |  |   | 21,752 |        
|Columbus North Marriott
    Columbus, Ohio                          |       |              |  | (a)          |      |                   | 1,635                     |              |                        |                            | 12,873       |         |  |              |       |              |      |   | 2,920  |              |  |   | 1,635       |        |  |   | 15,793 |         |  |   | 17,428 |        
|Melbourne Quality Suites
    Melbourne, Florida                     |       |              |  | (a)          |      |                   | 3,092                     |              |                        |                            | 7,819        |         |  |              |       |              |      |   | (1,866 | )            |  |   | 3,092       |        |  |   | 5,953  |         |  |   | 9,045  |        
|Best Western Fort Myers Island Gateway Hotel
    Ft. Myers, Florida |       |              |  | (c)          |      |                   | 718                       |              |                        |                            | 2,686        |         |  |              |       |              |      |   | 886    |              |  |   | 718         |        |  |   | 3,572  |         |  |   | 4,290  |        
|Holiday Inn Crabtree
    Raleigh, North Carolina                    |       |              |  | (c)          |      |                   | 725                       |              |                        |                            | 6,542        |         |  |              |       |              |      |   | 1,484  |              |  |   | 725         |        |  |   | 8,026  |         |  |   | 8,751  |        
|Melbourne Hilton Oceanfront
    Melbourne, Florida                  |       |              |  | (a)          |      |                   | 852                       |              |                        |                            | 7,699        |         |  |              |       |              |      |   | (2,040 | )            |  |   | 852         |        |  |   | 5,659  |         |  |   | 6,511  |        
|French Lick Springs Resort and Spa
    French Lick, Indiana         |       |              |  |              |      |                   | 2,000                     |              |                        |                            | 16,000       |         |  |              | (3     | )            |      |   | 1,843  |              |  |   | 1,997       |        |  |   | 17,843 |         |  |   | 19,840 |        
|Hampton Inn San Diego Airport/Sea World
    San Diego, California   |       |              |  | (c)          |      |                   | 1,000                     |              |                        |                            | 7,400        |         |  |              |       |              |      |   | 702    |              |  |   | 1,000       |        |  |   | 8,102  |         |  |   | 9,102  |        
|Doubletree Kansas City
    Kansas City, Missouri                    |       |              |  | (d)          |      |                   | 1,500                     |              |                        |                            | 20,958       |         |  |              | 3,664  |              |      |   | (5,717 | )            |  |   | 5,164       |        |  |   | 15,241 |         |  |   | 20,405 |        
|High Point Radisson
    High Point, North Carolina                  |       |              |  | (a)          |      |                   | 450                       |              |                        |                            | 25,057       |         |  |              |       |              |      |   | (1,944 | )            |  |   | 450         |        |  |   | 23,113 |         |  |   | 23,563 |        
|Pink Shell Beach Resort & Spa
    Ft. Myers, Florida                |       |              |  | (e)          |      |                   | 6,000                     |              |                        |                            | 13,445       |         |  |              | (1,800 | )            |      |   | (9,596 | )            |  |   | 4,200       |        |  |   | 3,849  |         |  |   | 8,049  |        
|Radisson Suite Beach Resort
    Marco Island, Florida               |       |              |  |              |      |                   | 14,570                    |              |                        |                            | 12,605       |         |  |              |       |              |      |   | 33     |              |  |   | 14,570      |        |  |   | 12,638 |         |  |   | 27,208 |        
|Doubletree Sacramento
    Sacramento, California                    |       |              |  | (b)          |      |                   | 4,400                     |              |                        |                            | 41,884       |         |  |              |       |              |      |   | 4,952  |              |  |   | 4,400       |        |  |   | 46,836 |         |  |   | 51,236 |        
|Doubletree Colorado Springs
    Colorado Springs, Colorado          |       |              |  | (b)          |      |                   | 3,340                     |              |                        |                            | 31,296       |         |  |              |       |              |      |   | 1,831  |              |  |   | 3,340       |        |  |   | 33,127 |         |  |   | 36,467 |        
|Doubletree Boise
    Boise, Idaho                                   |       |              |  | (b)          |      |                   | 2,470                     |              |                        |                            | 23,998       |         |  |              |       |              |      |   | 4,292  |              |  |   | 2,470       |        |  |   | 28,290 |         |  |   | 30,760 |        
|Doubletree Omaha
    Omaha, Nebraska                                |       |              |  | (b)          |      |                   | 1,100                     |              |                        |                            | 19,690       |         |  |              |       |              |      |   | 9,571  |              |  |   | 1,100       |        |  |   | 29,261 |         |  |   | 30,361 |        
|Doubletree Portland, Lloyd Center
    Portland, Oregon              |       |              |  | (b)          |      |                   | 3,900                     |              |                        |                            | 61,633       |         |  |              |       |              |      |   | 5,673  |              |  |   | 3,900       |        |  |   | 67,306 |         |  |   | 71,206 |        
|Clarion Hotel & Conference Center
    Yakima, Washington            |       |              |  |              |      |                   | 1,140                     |              |                        |                            | 6,188        |         |  |              |       |              |      |   | (3,023 | )            |  |   | 1,140       |        |  |   | 3,165  |         |  |   | 4,305  |        
|Embassy Suites Southfield
    Southfield, Michigan                  |       |              |  | (a)          |      |                   | 777                       |              |                        |                            | 7,639        |         |  |              |       |              |      |   | 3,374  |              |  |   | 777         |        |  |   | 11,013 |         |  |   | 11,790 |        
|Doubletree Hotel San Antonio
    San Antonio, Texas                 |       |              |  | (b)          |      |                   | 1,140                     |              |                        |                            | 11,203       |         |  |              |       |              |      |   | 570    |              |  |   | 1,140       |        |  |   | 11,773 |         |  |   | 12,913 |        
|                                                                    |       |              |   |              |      |                   |                           |              |                        |                            |              |         |  |              |        |              |      |   |        |              |  |   |             |       
|                                                                    | Total |              |   |              |      |                   | $                         | 53,148       |                        |                            | $            | 374,037 |  |              | $      | 1,861        |      |   | $      | 42,526       |  |   | $           | 55,009 |  |   | $      | 416,563 |  |   | $      | 471,572 | 
|                                                                    |       |              |   |              |      |                   |                           |              |                        |                            |              |         |  |              |        |              |      |   |        |              |  |   |             |       

[Additional columns below]

[Continued from above table, first column(s) repeated]

|                                                                    |       |                 |        |        |                |   |        |              |  |               |             |                 |  |               |      |  |  |  |          |  | 
|------------------------------------------------------------------- | ----- | --------------- | ------ | ------ | -------------- | - | ------ | ------------ |  | ------------- | ----------- | --------------- |  | ------------- | ---- |  |  |  | -------- |  | 
|                                                                    |       |                 |        |        |                |   |        |              |  | Life on Which |            
|                                                                    |       | Accumulated     |        |        | Net Book       |   |        |              |  |               |             | Depreciation in | 
|                                                                    |       | Depreciation    |        |        | Value Land and |   |        |              |  |               |             | Statement of    | 
|                                                                    |       | Buildings and   |        |        | Buildings and  |   |        | Date of      |  |               | Date of     |                 |  | Operations is |     
|Description                                                         |       | Improvements(h) |        |        | Improvements   |   |        | Construction |  |               | Acquisition |                 |  | Computed      |     
|                                                                    |       |                 |        |        |                |   |        |              |  |               |             |                 |  |               |     
|Corporate Offices
    Cleveland, Ohio                               |       | $               | 24     |        |                | $ | 11     |              |  |               |             |                 |  |               | 1998 |  |  |  | 10 years | 
|Doubletree Berkeley Marina
    Berkeley, California                 |       |                 | 6,434  |        |                |   | 19,781 |              |  |               | 1972        |                 |  |               | 1996 |  |  |  | 20 years | 
|Buffalo Marriott
    Buffalo, New York                              |       |                 | 5,510  |        |                |   | 14,830 |              |  |               | 1981        |                 |  |               | 1996 |  |  |  | 25 years | 
|Cleveland Airport Marriott
    Cleveland, Ohio                      |       |                 | 7,691  |        |                |   | 14,061 |              |  |               | 1970        |                 |  |               | 1996 |  |  |  | 20 years | 
|Columbus North Marriott
    Columbus, Ohio                          |       |                 | 4,850  |        |                |   | 12,578 |              |  |               | 1981        |                 |  |               | 1996 |  |  |  | 25 years | 
|Melbourne Quality Suites
    Melbourne, Florida                     |       |                 | 1,592  |        |                |   | 7,453  |              |  |               | 1986        |                 |  |               | 1996 |  |  |  | 30 years | 
|Best Western Fort Myers Island Gateway Hotel
    Ft. Myers, Florida |       |                 | 865    |        |                |   | 3,425  |              |  |               | 1986        |                 |  |               | 1996 |  |  |  | 30 years | 
|Holiday Inn Crabtree
    Raleigh, North Carolina                    |       |                 | 2,190  |        |                |   | 6,561  |              |  |               | 1974        |                 |  |               | 1997 |  |  |  | 30 years | 
|Melbourne Hilton Oceanfront
    Melbourne, Florida                  |       |                 | 1,251  |        |                |   | 5,260  |              |  |               | 1986        |                 |  |               | 1997 |  |  |  | 35 years | 
|French Lick Springs Resort and Spa
    French Lick, Indiana         |       |                 | 4,669  |        |                |   | 15,171 |              |  |               | 1903        |                 |  |               | 1997 |  |  |  | 30 years | 
|Hampton Inn San Diego Airport/Sea World
    San Diego, California   |       |                 | 1,844  |        |                |   | 7,258  |              |  |               | 1989        |                 |  |               | 1997 |  |  |  | 30 years | 
|Doubletree Kansas City
    Kansas City, Missouri                    |       |                 | 4,920  |        |                |   | 15,485 |              |  |               | 1969        |                 |  |               | 1997 |  |  |  | 30 years | 
|High Point Radisson
    High Point, North Carolina                  |       |                 | 5,531  |        |                |   | 18,032 |              |  |               | 1982        |                 |  |               | 1998 |  |  |  | 30 years | 
|Pink Shell Beach Resort & Spa
    Ft. Myers, Florida                |       |                 | 576    |        |                |   | 7,473  |              |  |               | 1989        |                 |  |               | 1998 |  |  |  | 30 years | 
|Radisson Suite Beach Resort
    Marco Island, Florida               |       |                 | 561    |        |                |   | 26,647 |              |  |               | 1986        |                 |  |               | 2003 |  |  |  | 30 years | 
|Doubletree Sacramento
    Sacramento, California                    |       |                 | 9,757  |        |                |   | 41,479 |              |  |               | 1974        |                 |  |               | 1998 |  |  |  | 30 years | 
|Doubletree Colorado Springs
    Colorado Springs, Colorado          |       |                 | 7,151  |        |                |   | 29,316 |              |  |               | 1986        |                 |  |               | 1998 |  |  |  | 30 years | 
|Doubletree Boise
    Boise, Idaho                                   |       |                 | 5,674  |        |                |   | 25,086 |              |  |               | 1968        |                 |  |               | 1998 |  |  |  | 30 years | 
|Doubletree Omaha
    Omaha, Nebraska                                |       |                 | 5,336  |        |                |   | 25,025 |              |  |               | 1970/81     |                 |  |               | 1998 |  |  |  | 30 years | 
|Doubletree Portland, Lloyd Center
    Portland, Oregon              |       |                 | 13,999 |        |                |   | 57,207 |              |  |               | 1964/81     |                 |  |               | 1998 |  |  |  | 30 years | 
|Clarion Hotel & Conference Center
    Yakima, Washington            |       |                 | 1,088  |        |                |   | 3,217  |              |  |               | 1968        |                 |  |               | 1998 |  |  |  | 30 years | 
|Embassy Suites Southfield
    Southfield, Michigan                  |       |                 | 1,458  |        |                |   | 10,332 |              |  |               | 1978        |                 |  |               | 2000 |  |  |  | 30 years | 
|Doubletree Hotel San Antonio
    San Antonio, Texas                 |       |                 | 1,693  |        |                |   | 11,220 |              |  |               | 1987        |                 |  |               | 2000 |  |  |  | 30 years | 
|                                                                    |       |                 |        |        |                |   |        |              |  |               |             |                 |  |               |     
|                                                                    | Total |                 | $      | 94,664 |                |   | $      | 376,908      |  |               |             |                 |  |               |      |  |  |  |          |  | 
|                                                                    |       |                 |        |        |                |   |        |              |  |               |             |                 |  |               |     






|    |  |                                                                
|--- |  | ---------------------------------------------------------------
|(a) |  | These hotels are collateral for the line of credit.            
|   
|(b) |  | These hotels are collateral for the $130,000 term note payable.

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|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(c) |  | These hotels are collateral for the $108,000 term note payable.                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   
|(d) |  | 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.                                                                         
|   
|(e) |  | This activity includes the reclassification of the net book
    value of the Sanibel 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.
|   
|(f) |  | Aggregate cost for federal income tax reporting purposes at
    December 31, 2004 is as follows:                                                                                                                                                                                                                                                                                                                                                                                                                        

|                           |  |   |         | 
|-------------------------- |  | - | ------- | 
|Land                       |  | $ | 51,763  | 
|Buildings and improvements |  |   | 441,746 | 
|                           |  |   |        
|                           |  | $ | 493,509 | 
|                           |  |   |        



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

|                                 |  |   |          |  
|-------------------------------- |  | - | -------- | -
|Balance as of December 31, 2003  |  | $ | 558,036  |  
|Disposals                        |  |   | (107,926 | )
|Improvements and other additions |  |   | 21,462   |  
|                                 |  |   |         
|Balance as of December 31, 2004  |  | $ | 471,572  |  
|                                 |  |   |         



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

|                             |  |   |         |  
|---------------------------- |  | - | ------- | -
|Balance at December 31, 2003 |  | $ | 102,915 |  
|Disposals                    |  |   | (24,790 | )
|Depreciation expense         |  |   | 16,539  |  
|                             |  |   |        
|Balance at December 31, 2004 |  | $ | 94,664  |  
|                             |  |   |        

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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






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BOYKIN/ AEW, LLC AND SUBSIDIARIES








|                                                                         |                          |      |        |         |      |   |        |        |  
|------------------------------------------------------------------------ | ------------------------ | ---- | ------ | ------- | ---- | - | ------ | ------ | -
|                                                                         |                          | 2004 |        |         | 2003 |  
|                                                                         |                          |      |        |         |      |  
|ASSETS                                                                   |                          |      |        |         |      |   |        |       
|Investment in hotel property                                             |                          | $    | 75,160 |         |      | $ | 75,042 |       
|                                                                         | Accumulated depreciation |      |        | (11,489 | )    |   |        | (8,882 | )
|                                                                         |                          |      |        |         |      |  
|Investment in hotel property  net                                       |                          |      | 63,671 |         |      |   | 66,160 |       
|Cash and cash equivalents                                                |                          |      | 1,646  |         |      |   | 1,145  |       
|Accounts receivable, net of allowance of $13 as of
    December 31, 2003 |                          |      | 404    |         |      |   | 882    |       
|Deferred expenses  net                                                  |                          |      | 33     |         |      |   | 69     |       
|Other assets                                                             |                          |      | 221    |         |      |   | 345    |       
|                                                                         |                          |      |        |         |      |  
|                                                                         |                          | $    | 65,975 |         |      | $ | 68,601 |       
|                                                                         |                          |      |        |         |      |  
|LIABILITIES AND MEMBERS EQUITY                                          |                          |      |        |         |      |   |        |       
|Mortgage note payable                                                    |                          | $    | 36,116 |         |      | $ | 37,236 |       
|Accounts payable and accrued expenses                                    |                          |      | 2,593  |         |      |   | 2,884  |       
|Minority interest in joint venture                                       |                          |      | 6,781  |         |      |   | 7,081  |       
|                                                                        
|MEMBERS EQUITY                                                          |                          |      |        |         |      |   |        |       
|Contributed capital                                                      |                          |      | 29,476 |         |      |   | 28,726 |       
|Distributions in excess of income                                        |                          |      | (8,991 | )       |      |   | (7,326 | )     
|                                                                         |                          |      |        |         |      |  
|Total members equity                                                    |                          |      | 20,485 |         |      |   | 21,400 |       
|                                                                         |                          |      |        |         |      |  
|                                                                         |                          | $    | 65,975 |         |      | $ | 68,601 |       
|                                                                         |                          |      |        |         |      |  



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BOYKIN/ AEW, LLC AND SUBSIDIARIES








|                                       |                                                   |                                 |        |        |        |   |        |        |        |   |        |        |        |  
|-------------------------------------- | ------------------------------------------------- | ------------------------------- | ------ | ------ | ------ | - | ------ | ------ | ------ | - | ------ | ------ | ------ | -
|                                       |                                                   | 2004                            |        |        | 2003   |   |        | 2002   |       
|                                       |                                                   |                                 |        |        |        |   |        |        |       
|Revenues:                              |                                                   |                                 |        |        |        |   |        |        |        |   |        |       
|                                       | Hotel revenues:                                   |                                 |        |        |        |   |        |        |        |   |        |        |       
|                                       |                                                   | Rooms                           |        | $      | 14,131 |   |        | $      | 12,929 |   |        | $      | 8,629  |  
|                                       |                                                   | Food and beverage               |        |        | 973    |   |        |        | 1,301  |   |        |        | 1,167  |  
|                                       |                                                   | Other                           |        |        | 989    |   |        |        | 712    |   |        |        | 253    |  
|                                       |                                                   |                                 |        |        |        |   |        |        |       
|                                       | Total revenues                                    |                                 |        | 16,093 |        |   |        | 14,942 |        |   |        | 10,049 |       
|                                       |                                                   |                                 |        |        |        |   |        |        |       
|Expenses:                              |                                                   |                                 |        |        |        |   |        |        |        |   |        |       
|                                       | Hotel operating expenses:                         |                                 |        |        |        |   |        |        |        |   |        |        |       
|                                       |                                                   | Rooms                           |        |        | 4,129  |   |        |        | 3,475  |   |        |        | 2,562  |  
|                                       |                                                   | Food and beverage               |        |        | 894    |   |        |        | 1,378  |   |        |        | 1,329  |  
|                                       |                                                   | Other                           |        |        | 387    |   |        |        | 338    |   |        |        | 213    |  
|                                       |                                                   | General and administrative      |        |        | 1,783  |   |        |        | 1,258  |   |        |        | 1,240  |  
|                                       |                                                   | Marketing and franchise         |        |        | 1,785  |   |        |        | 1,862  |   |        |        | 1,945  |  
|                                       |                                                   | Utilities and maintenance       |        |        | 1,720  |   |        |        | 1,525  |   |        |        | 1,463  |  
|                                       |                                                   | Management fees  related party |        |        | 483    |   |        |        | 446    |   |        |        | 75     |  
|                                       |                                                   |                                 |        |        |        |   |        |        |       
|                                       | Total hotel operating expenses                    |                                 |        | 11,181 |        |   |        | 10,282 |        |   |        | 8,827  |       
|                                       | Property taxes and insurance and other            |                                 |        | 1,514  |        |   |        | 1,054  |        |   |        | 1,188  |       
|                                       | Real estate related depreciation and amortization |                                 |        | 3,102  |        |   |        | 3,099  |        |   |        | 1,938  |       
|                                       | Asset management fees                             |                                 |        | 196    |        |   |        | 191    |        |   |        | 172    |       
|                                       |                                                   |                                 |        |        |        |   |        |        |       
|                                       |                                                   | Total operating expenses        |        |        | 15,993 |   |        |        | 14,626 |   |        |        | 12,125 |  
|                                       |                                                   |                                 |        |        |        |   |        |        |       
|                                       |                                                   | Operating income (loss)         |        |        | 100    |   |        |        | 316    |   |        |        | (2,076 | )
|                                       | Investment income and other                       |                                 |        | 35     |        |   |        | 14     |        |   |        | 26     |       
|                                       | Interest expense                                  |                                 |        | (1,760 | )      |   |        | (1,716 | )      |   |        | (1,648 | )     
|                                       | Amortization of deferred financing costs          |                                 |        | (167   | )      |   |        | (277   | )      |   |        | (334   | )     
|                                       | Other amortization                                |                                 |        | (122   | )      |   |        | (5     | )      |   |        |       |       
|                                       | Minority interest in loss of joint venture        |                                 |        | 475    |        |   |        | 414    |        |   |        | 1,031  |       
|                                       |                                                   |                                 |        |        |        |   |        |        |       
|Loss before loss on disposal of assets |                                                   |                                 | (1,439 | )      |        |   | (1,254 | )      |        |   | (3,001 | )     
|                                       |                                                   |                                 |        |        |        |   |        |        |       
|                                       | Loss on disposal of assets                        |                                 |        | (1     | )      |   |        | (5     | )      |   |        | (107   | )     
|                                       |                                                   |                                 |        |        |        |   |        |        |       
|Net loss                               |                                                   | $                               | (1,440 | )      |        | $ | (1,259 | )      |        | $ | (3,108 | )     
|                                       |                                                   |                                 |        |        |        |   |        |        |       



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|                             |                               |             |        |               |           |   |        |        |   |   |        |        |  
|---------------------------- | ----------------------------- | ----------- | ------ | ------------- | --------- | - | ------ | ------ | - | - | ------ | ------ | -
|                             |                               |             |        | Distributions |           |   |       
|                             |                               | Contributed |        |               | in Excess |   |        |       
|                             |                               | Capital     |        |               | of Income |   |        | Total  |  
|                             |                               |             |        |               |           |   |        |        |  
|Balance at January 1, 2002   |                               | $           | 20,390 |               |           | $ | (2,526 | )      |   | $ | 17,864 |       
|                             | Capital contributions         |             |        | 7,511         |           |   |        |       |   |   |        | 7,511  |  
|                             | Distributions paid to members |             |        |              |           |   |        | (246   | ) |   |        | (246   | )
|                             | Net loss                      |             |        |              |           |   |        | (3,108 | ) |   |        | (3,108 | )
|                             |                               |             |        |               |           |   |        |        |  
|Balance at December 31, 2002 |                               |             | 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 |       
|                             |                               |             |        |               |           |   |        |        |  



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BOYKIN/AEW, LLC AND SUBSIDIARIES








|                                                         |                                                                                                    |                                               |                                       |        |       |      |        |        |       |      |         |         |        |      |  
|-------------------------------------------------------- | -------------------------------------------------------------------------------------------------- | --------------------------------------------- | ------------------------------------- | ------ | ----- | ---- | ------ | ------ | ----- | ---- | ------- | ------- | ------ | ---- | -
|                                                         |                                                                                                    | 2004                                          |                                       |        | 2003  |      |        | 2002   |      
|                                                         |                                                                                                    |                                               |                                       |        |       |      |        |        |      
|Cash flows from operating activities:                    |                                                                                                    |                                               |                                       |        |       |      |        |        |       |      |         |        
|                                                         | Net loss                                                                                           |                                               | $                                     | (1,440 | )     |      | $      | (1,259 | )     |      | $       | (3,108  | )     
|                                                         | Adjustments to reconcile net loss to net cash flow provided by
    (used in) operating activities: |                                               |                                       |        |       |      |        |        |       |      |         |         |       
|                                                         |                                                                                                    | Depreciation and amortization                 |                                       |        | 3,391 |      |        |        | 3,381 |      |         |         | 2,272  |     
|                                                         |                                                                                                    | Loss on disposal of assets                    |                                       |        | 1     |      |        |        | 5     |      |         |         | 107    |     
|                                                         |                                                                                                    | Minority interest                             |                                       |        | (475  | )    |        |        | (414  | )    |         |         | (1,031 | )   
|                                                         |                                                                                                    | Changes in operating assets and liabilities - |                                       |        |       |      |        |        |       |      |         |         |        |     
|                                                         |                                                                                                    |                                               | Accounts receivable                   |        |       | 478  |        |        |       | (59  | )       |         |        | (168 | )
|                                                         |                                                                                                    |                                               | Accounts payable and accrued expenses |        |       | (291 | )      |        |       | (401 | )       |         |        | 273  |  
|                                                         |                                                                                                    |                                               | Other                                 |        |       | 2    |        |        |       | 21   |         |         |        | (298 | )
|                                                         |                                                                                                    |                                               |                                       |        |       |      |        |        |      
|Net cash flow provided by (used in) operating activities |                                                                                                    |                                               | 1,666                                 |        |       |      | 1,274  |        |       |      | (1,953  | )      
|                                                         |                                                                                                    |                                               |                                       |        |       |      |        |        |      
|Cash flows from investing activities:                    |                                                                                                    |                                               |                                       |        |       |      |        |        |       |      |         |        
|                                                         | Improvements and additions to hotel property, net                                                  |                                               |                                       | (614   | )     |      |        | (1,946 | )     |      |         | (16,828 | )     
|                                                         |                                                                                                    |                                               |                                       |        |       |      |        |        |      
|Net cash flow used in investing activities               |                                                                                                    |                                               | (614                                  | )      |       |      | (1,946 | )      |       |      | (16,828 | )      
|                                                         |                                                                                                    |                                               |                                       |        |       |      |        |        |      
|Cash flows from financing activities:                    |                                                                                                    |                                               |                                       |        |       |      |        |        |       |      |         |        
|                                                         | Distributions to members                                                                           |                                               |                                       | (225   | )     |      |        | (187   | )     |      |         | (246    | )     
|                                                         | Borrowings of term note                                                                            |                                               |                                       |       |       |      |        | 1,344  |       |      |         | 6,656   |       
|                                                         | Payment of term note                                                                               |                                               |                                       | (1,120 | )     |      |        | (764   | )     |      |         |        |       
|                                                         | Payment of deferred financing costs                                                                |                                               |                                       | (131   | )     |      |        |       |       |      |         | (100    | )     
|                                                         | Net contributions from joint venture partner                                                       |                                               |                                       | 175    |       |      |        | 212    |       |      |         | 2,432   |       
|                                                         | Capital contributions                                                                              |                                               |                                       | 750    |       |      |        | 825    |       |      |         | 7,511   |       
|                                                         |                                                                                                    |                                               |                                       |        |       |      |        |        |      
|Net cash flow provided by financing activities           |                                                                                                    |                                               | (551                                  | )      |       |      | 1,430  |        |       |      | 16,253  |        
|                                                         |                                                                                                    |                                               |                                       |        |       |      |        |        |      
|Net change in cash and cash equivalents                  |                                                                                                    |                                               | 501                                   |        |       |      | 758    |        |       |      | (2,528  | )      
|Cash and cash equivalents, beginning of year             |                                                                                                    |                                               | 1,145                                 |        |       |      | 387    |        |       |      | 2,915   |        
|                                                         |                                                                                                    |                                               |                                       |        |       |      |        |        |      
|Cash and cash equivalents, end of year                   |                                                                                                    | $                                             | 1,646                                 |        |       | $    | 1,145  |        |       | $    | 387     |        
|                                                         |                                                                                                    |                                               |                                       |        |       |      |        |        |      



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BOYKIN/ AEW, LLC AND SUBSIDIARIES










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















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

Principles of Consolidation


Investment in Hotel Property




|                              |  |      |         |   |      |   |        |  
|----------------------------- |  | ---- | ------- | - | ---- | - | ------ | -
|                              |  | 2004 |         |   | 2003 |  
|                              |  |      |         |   |      |  
|Land                          |  | $    | 9,100   |   |      | $ | 9,100  |  
|Buildings and improvements    |  |      | 58,387  |   |      |   | 57,813 |  
|Furniture and equipment       |  |      | 7,423   |   |      |   | 7,863  |  
|Construction in progress      |  |      | 250     |   |      |   | 266    |  
|                              |  |      |         |   |      |  
|                              |  |      | 75,160  |   |      |   | 75,042 |  
|Less accumulated depreciation |  |      | (11,489 | ) |      |   | (8,882 | )
|                              |  |      |         |   |      |  
|Total                         |  | $    | 63,671  |   |      | $ | 66,160 |  
|                              |  |      |         |   |      |  

F-38



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##### Table of Contents





Cash and Cash Equivalents


Inventories


Accounts Receivable


Deferred Expenses  Net


|                         |  |      |     |   |      |   |      |  
|------------------------ |  | ---- | --- | - | ---- | - | ---- | -
|                         |  | 2004 |     |   | 2003 |  
|                         |  |      |     |   |      |  
|Financing costs          |  | $    | 130 |   |      | $ | 986  |  
|Accumulated amortization |  |      | (97 | ) |      |   | (917 | )
|                         |  |      |     |   |      |  
|Total                    |  | $    | 33  |   |      | $ | 69   |  
|                         |  |      |     |   |      |  



Minority Interest


Hotel Revenues


Fair Value of Financial Instruments


Income Taxes Accounting for Income
Taxes


New Accounting Pronouncements


F-39



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##### Table of Contents









Use of Estimates




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







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



F-40



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##### Table of Contents













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









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



F-41



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##### Table of Contents



BOYKIN/ AEW, LLC


SCHEDULE III  REAL ESTATE AND ACCUMULATED
DEPRECIATION


AS OF DECEMBER 31, 2004




|                            |  |              |     |              |      |               |             |                   |                  |                    |               |  |              |   |   |              |  |   |              |  |  |        |       |  |  |   |        |  |  |   |        | 
|--------------------------- |  | ------------ | --- | ------------ | ---- | ------------- | ----------- | ----------------- | ---------------- | ------------------ | ------------- |  | ------------ | - | - | ------------ |  | - | ------------ |  |  | ------ | ----- |  |  | - | ------ |  |  | - | ------ | 
|                            |  |              |     |              |      |               |             | Costs Capitalized |                  |                    | Gross Amounts | 
|                            |  |              |     |              |      | Subsequent to |             |                   | at Which Carried |                   
|                            |  |              |     | Initial Cost |      |               | Acquisition |                   |                  | at Close of Period |              
|                            |  |              |     |              |      |               |             |                   |                  |                    |              
|                            |  |              |     |              |      | Buildings and |             |                   |                  |                    | Building and  |  |              |   |   | Building and |  |   | Total        | 
|Description                 |  | Encumbrances |     |              | Land |               |             | Improvements      |                  |                    | Land          |  | Improvements |   |   | Land         |  |   | Improvements |  |  | (b)(c) |      
|                            |  |              |     |              |      |               |             |                   |                  |                    |               |  |              |   |   |              |  |   |              |  |  |        |      
|Hotel 71, Chicago, Illinois |  |              | (a) |              |      | $             | 9,100       |                   |                  | $                  | 40,392        |  |              | $ |  |              |  | $ | 17,995       |  |  | $      | 9,100 |  |  | $ | 58,387 |  |  | $ | 67,487 | 

[Additional columns below]

[Continued from above table, first column(s) repeated]

|                            |  |               |       |  |                |   |        |              |  |  |               |                 |  |             |      |  |  |  |          | 
|--------------------------- |  | ------------- | ----- |  | -------------- | - | ------ | ------------ |  |  | ------------- | --------------- |  | ----------- | ---- |  |  |  | -------- | 
|                            |  | Accumulated   |       |  |                |   |        |              |  |  | Life on Which |                
|                            |  | Depreciation  |       |  | Net Book       |   |        |              |  |  |               | Depreciation in | 
|                            |  | Buildings and |       |  | Value Land and |   |        |              |  |  |               | Statement of    | 
|                            |  | Improvements  |       |  | Buildings and  |   |        | Date of      |  |  | Date of       |                 |  | Operations  |     
|Description                 |  | (d)           |       |  | Improvements   |   |        | Construction |  |  | Acquisition   |                 |  | is Computed |     
|                            |  |               |       |  |                |   |        |              |  |  |               |                 |  |             |     
|Hotel 71, Chicago, Illinois |  | $             | 8,779 |  |                | $ | 58,708 |              |  |  | 1958          |                 |  |             | 1999 |  |  |  | 30 years | 






|    |  |                                                                                                 
|--- |  | ------------------------------------------------------------------------------------------------
|(a) |  | This hotel is collateral for the $38,000 mortgage note payable.                                 
|   
|(b) |  | Aggregate cost for federal income tax reporting purposes at
    December 31, 2004 is as follows:

|                           |  |   |        | 
|-------------------------- |  | - | ------ | 
|Land                       |  | $ | 9,100  | 
|Buildings and improvements |  |   | 58,198 | 
|                           |  |   |       
|                           |  | $ | 67,298 | 
|                           |  |   |       



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

|                                 |  |   |        | 
|-------------------------------- |  | - | ------ | 
|Balance as of December 31, 2003  |  | $ | 66,913 | 
|Disposals                        |  |   |       | 
|Improvements and other additions |  |   | 574    | 
|                                 |  |   |       
|Balance as of December 31, 2004  |  | $ | 67,487 | 
|                                 |  |   |       



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

|                             |  |   |       | 
|---------------------------- |  | - | ----- | 
|Balance at December 31, 2003 |  | $ | 6,723 | 
|Disposals                    |  |   |      | 
|Depreciation expense         |  |   | 2,056 | 
|                             |  |   |      
|Balance at December 31, 2004 |  | $ | 8,779 | 
|                             |  |   |      

F-42



---



##### Table of Contents






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, 2005 |  | /s/ Robert W. Boykin
    -----------------------------------------------
    Robert W. Boykin
    Chairman of the Board and
    Chief Executive Officer
    (Principal Executive Officer)                
|              
|March 15, 2005 |  | /s/ Shereen P. Jones
    -----------------------------------------------
    Shereen P. Jones
    Executive Vice President, Chief Financial
    and Investment Officer
    (Principal Accounting Officer)
|              
|March 15, 2005 |  | /s/ Ivan J. Winfield
    -----------------------------------------------
    Ivan J. Winfield
    Director                                                                                               
|              
|March 15, 2005 |  | /s/ Lee C. Howley, Jr.
    -----------------------------------------------
    Lee C. Howley, Jr.
    Director                                                                                           
|              
|March 15, 2005 |  | /s/ William H. Schecter
    -----------------------------------------------
    William H. Schecter
    Director                                                                                         
|              
|March 15, 2005 |  | /s/ Albert T. Adams
    -----------------------------------------------
    Albert T. Adams
    Director                                                                                                 
|              
|March 15, 2005 |  | /s/ James B. Meathe
    -----------------------------------------------
    James B. Meathe
    Director                                                                                                 
|              
|March 15, 2005 |  | /s/ Mark J. Nasca
    -----------------------------------------------
    Mark J. Nasca
    Director                                                                                                     



---



##### Table of Contents






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   | (d) |  | Shareholder Rights Agreement, dated as of May 25, 1999
    between Boykin Lodging Company and National City Bank as rights
    agent                                                    
| | 4.3a  | (g) |  | Amendment to Shareholder Rights Agreement, dated as of
    December 31, 2001                                                                                                            
| | 10.1  | (i) |  | 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 | (e) |  | 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 | (e) |  | Warrant to Purchase Class A Cumulative Preferred Stock,
    Series 1999-A of Boykin Lodging Company dated as of
    February 1, 1999                                                    
| | 10.15 | (e) |  | Registration Rights Agreement by and among Boykin Lodging
    Company and AEW Partners III, L.P. dated as of February 1,
    1999                                                       
| | 10.16 | (f) |  | Key Employee Severance Plan*                                                                                                                                                            
| | 10.17 | (f) |  | Form of Severance Agreement*                                                                                                                                                            
| | 10.18 | (g) |  | Master Contribution Agreement between BMC, JABO LLC, the Company
    and the Partnership dated as of December 31, 2001                                                                  
| | 10.19 | (g) |  | Form of Hotel Management Agreement*                                                                                                                                                     
| | 10.20 | (g) |  | Registration Rights Agreement between the Company and JABO LLC
    dated January 1, 2002                                                                                                
| | 10.21 | (j) |  | Description of Employment Arrangement between the Company and
    Shereen P. Jones*                                                                                                     
| | 10.22 |     |  | 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                      
| | 10.23 |     |  | 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
| | 10.24 |     |  | Modification of Employment Agreement between the Company and
    Robert W. Boykin*                                                                                                      
| | 12    |     |  | Statement re Computation of Ratios                                                                                                                                                      
| | 16.1  | (h) |  | 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 from Boykins Form 10-Q for
    the quarter ended March 31, 1999.                                                                                                                                                                         
|   
|(f) |  | Incorporated by reference from Boykins Form 10-K for
    the year ended December 31, 1999.                                                                                                                                                                         
|   
|(g) |  | Incorporated by reference from Boykins Form 8-K filed
    on January 14, 2002.                                                                                                                                                                                     
|   
|(h) |  | Incorporated by reference from Boykins Form 8-K filed
    on April 20, 2004.                                                                                                                                                                                       
|   
|(i) |  | Incorporated by reference from Boykins Form 8-K filed
    on October 4, 2002.                                                                                                                                                                                      
|   
|(j) |  | Incorporated by reference from Boykins Form 10-K for
    the year ended December 31, 2002.                                                                                                                                                                         
|   
|*   |  | Management contract or compensatory plan or arrangement.