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 Jameson Inns Surviving Company 
after Merger with Signature Inns
Overview of the Two Brands
 
ATLANTA, May 10, 1999 -  Jameson Inns, Inc. (Nasdaq: JAMS) announced today that its merger with Signature Inns was approved by shareholders of both companies at meetings held Friday, May 7, 1999 and the merger has been completed. 

Jameson is the surviving company and the holders of the outstanding Signature common stock will receive one-half share of Jameson common stock and a cash payment of $1.22 in exchange for each share of Signature common stock.  A dividend of $.28 per share is also being paid today to the holders of the Signature common stock.  Holders of the outstanding shares of Signature $1.70 Cumulative Convertible Preferred Stock, Series A, will receive an equal number of shares of Jameson $1.70 Series S Cumulative Convertible Preferred Stock having substantially the same terms as the Signature Series A preferred, including an annual dividend right of $1.70 per share and a liquidation preference of $20.00 per share.  Upon conversion of each share of the Jameson preferred stock, holders will receive 1.04 shares of Jameson common stock and a cash payment of $3.125.
 
The merger increases from eight to thirteen the states in which Jameson currently has inns in operation or under development.  The combined company will have approximately 8,000  hotel rooms in operation by the end of the year.  Currently, the combined company has 110 inns and over 7,000 hotel rooms in operation.
 
Thomas W. Kitchin, Chairman and CEO of Jameson Inns, Inc., stated, "We are very pleased to have completed this transaction.  The merger accelerates our growth rate by taking us into five new states and increasing our room count by 73%.  Strategically, it is a very good fit for the company because neither brand is part of a franchised system.  This allows us to continue to be able to focus on providing our hotel guests with more consistent and predictable lodging than our competition.  We are excited about the opportunity to grow both brands."

Merger Highlights:

  • The company now owns all of the hotels of two unique brands.  Neither Jameson nor Signature is franchised.  All Jameson Inns and Signature Inns are operated by Jameson Hospitality, LLC, which has the same management team as the company.
  • The merger brings more geographic diversity to the company.  Jameson Inns are primarily located in Southeastern states and Signature Inns are primarily in Midwestern states.
  • Both brands share similar operating philosophies.  Jameson and Signature are both limited service brands that appeal to price and quality- conscious business and leisure travelers.  Limited service hotels generally have lower break-even points than full service hotels.
  • The merger is expected to be immediately accretive to funds from operation.  In 1998, the company's funds from operations per share was $1.24.  On a pro forma basis, assuming the merger took place on January 1, 1998, funds from operations would have been $1.59.
Overview of the Two Brands:
 
Jameson Inns
State
Inns
Rooms
Georgia 32 1,595
Alabama 18 860
South Carolina 13 600
North Carolina 13 560
Tennessee 6 300
Mississippi 3 180
85 4,095
 
Signature Inns
State
Inns
Rooms
Indiana 13 1,517
Ohio 4 479
Kentucky 3 367
Illinois 3 372
Iowa 1 119
Tennessee 1 124
25 2,977
 
Combined Company
110 7,072
 
1998 Brand Operating Statistics:
 
Jameson
Signature
Combined
Room nights available 1,216,998 1,085,395 2,302,393
Occupancy rate 61.7% 62.0% 61.8%
Average daily rate $50.60 $60.40 $55.24
REPAR $31.21 $37.46 $34.16
Rooms revenues $38,787,000 $42,404,000 $81,191,000
 

About Jameson Hospitality, LLC

Jameson Hospitality, the lessee for all Jameson Inns and Signature Inns, recently announced the opening of Jameson University, a formal training facility located at the home office in Atlanta.  Spearheaded by Director of Training and Development, Reggie Piercy, the university will offer three curriculums and ongoing training via video conferencing to all of its employees throughout the Southeast.
 
"A training and development strategy is vital to the growth of our company," stated Piercy.  "Investing in the skills and talents of our people will be a necessary and critical competitive advantage as we enter new marketplaces and compete with larger hotel companies."

New managers will be required to complete the four week university curriculum comprised of a two-week leadership and management course taught at the university, and two weeks of field training at the Jameson Inn in Carrollton, Georgia.  Each manager must be certified and tested in order to graduate.  All new and existing Signature Inn managers will required to attend the university.
 
"It gives us a wonderful forum to unite the two brands, both operationally and culturally," states CEO Tom Kitchin.  "In addition to having Signature Inn managers attend university classes in Atlanta, we plan to install video conferencing capabilities at Signature Inn properties as well."

###
 
Contact:
Jameson Inns, Inc.
8 Perimeter Center East
Suite 8050
Atlanta, GA 30346-1603
PH: (770) 901-9020
FAX: (770) 901-9550
http://www.jamesoninns.com 
 --
 
Also See: Jameson Inns, Inc. and Signature Inns, Inc. Agree to Merge / Jan 1999 
Jameson Inns Will Install InnQuest's roomMaster 99 PMS in 80+ Properties / April 1999 

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