Jameson Inns, Inc. Reports Fourth Quarter and Year-End Results

For the year, the Company reported net income attributable to common stockholders of $1,095,000 or $0.10 cents per share basic and diluted, versus $5,383,000, or $0.51 cents per share basic and diluted respectively, for 1999.

Jameson Inns derives its revenues from lease rentals paid by Jameson Hospitality, LLC, the company that operates all of the Jameson and Signature Inns. The lease revenue is primarily based on gross room revenues generated by the Inns. Lease revenues for the year increased 24.7% to $43,232,000, a $8,563,000 increase over 1999 lease revenues, due to the acquisition of Signature Inns, Inc. and the opening of additional Jameson Inns. On December 31, 2000, there were 105 operating Jameson Inns and 26 operating Signature Inns, compared to 88 operating Jameson Inns and 26 operating Signature Inns at December 31, 1999. The Signature Inns were acquired through a merger which was completed on May 7, 1999.

2000 Overview

Combined Same Inns Revenue per available room (REVPAR) for both brands of the Company was $29.53 for the fourth quarter of 2000, down $.91, or 3.0% from the fourth quarter of 1999, resulting from a 1.6% increase in average daily rate offset by a decline in occupancy to 50.1% from 52.5%.

Same Inns REVPAR at the Jameson Inns was $29.40 for the fourth quarter of 2000 compared to $29.09 for the fourth quarter of 1999, resulting from a 2.0% increase in average daily rates offset by a decline in occupancy to 53.4% from 53.9%. Pro forma REVPAR at the Signature Inns was $29.70, due to a 2.1% increase in average daily rates offset by a decline in occupancy to 45.5% from 50.5%.

"In light of the effect of interest rate increases during the last year which resulted in additional interest expense, we are proud of the accomplishments achieved during 2000. The recent interest rate decreases announced by the Federal Reserve will be helpful to the 2001 funds from operations," said Tom Kitchin, Chief Executive Officer.

"We opened 17 new Jameson Inns with a total of 1,079 rooms and completed the expansion of one existing Jameson Inn during 2000. This increased our rooms in operation to 8,351 at December 31, 2000 compared to 7,300 at December 31, 1999," continued Kitchin.

New Developments

President and Chief Financial Officer Craig Kitchin stated, "Because of the difficult capital environment facing hotel and real estate companies, we are pleased to be in a position to continue growing our Jameson brand in the southeast. We have five new interior corridor Jameson Inns and nine expansions of existing Jameson Inns, either under construction or under development, which will open in 2001."

"We are excited about our new interior corridor product and another year of growing and strengthening our brand loyalty and awareness throughout the southeast."

During the fourth quarter, the Company declared a quarterly dividend of $.245 per common share. The dividend is payable on February 20, 2001, to shareholders of record on December 29, 2000.

The Company will hold a fourth quarter earnings conference call at 10:00 a.m. eastern standard time today, February 8, 2001. A rebroadcast of the call can be heard until 12 midnight on Sunday, February 11th by dialing 1-800-428-6051 and using the pass code 159483.

Jameson Inns, Inc. is a real estate investment trust that develops and owns the Jameson Inn and Signature Inn brands. The Jameson Inns are colonial- style, limited service hotel properties in the Southeast. Signature Inns are larger, limited service hotel properties primarily in the Midwest. For more information, visit www.jamesoninns.com .

                          Three Months Ended         Twelve Months Ended
                                 December 31                 December 31

                              2000          1999         2000          1999

    Lease Revenue      $10,221,039    $9,092,264  $43,231,727   $34,668,532
    Property and Other
      Taxes             $1,008,864      $967,239   $3,670,841    $2,634,056
    Insurance Expense     $230,086       $77,188     $869,601      $566,351
    Depreciation        $4,093,027    $3,165,908  $14,619,521   $10,396,468
    Amortization of
      Offering Costs      $176,281       $99,724     $176,281       $99,724
    General and
      Administrative
      Expenses            $412,135      $371,831   $1,405,343    $1,116,520
    Gain (Loss) on Sale of
      Land and
      Real Estate         $320,575      $274,970     $357,892      $755,214
    Interest Expense,
      Net of Capitalized
      Amounts           $4,415,092    $2,807,656  $14,942,749    $8,429,007
    Income Before
      Extraordinary Item  $231,523    $1,347,617   $7,878,734   $10,770,567
    Extraordinary Loss
      from Early
      Extinguishment
      of Debt              $18,587          $---      $87,816          $
    Net Income            $212,936    $1,347,617   $7,790,918   $10,770,567
    Cumulative Preferred
      Stock Dividends   $1,667,183    $1,694,595   $6,696,144    $5,387,248
    Net Income (Loss)
      Attributable
      to Common
      Shareholders     ($1,454,247)    ($346,978)  $1,094,774    $5,383,319
    Net Income (Loss)
      Attributable
      to Common
      Shareholders Per Share:
         Basic              ($0.13)       ($0.03)       $0.10         $0.51
         Diluted            ($0.13)       ($0.03)       $0.10         $0.51
    Funds From
      Operations        $2,833,648    $3,202,444  $16,015,709   $16,658,245
    Funds From Operations
      Per Share-Basic        $0.25         $0.29        $1.45         $1.58



    Summary Balance Sheet Data                  December 31,   December 31,
                                                     2000           1999

    Property and Equipment, net                 $334,090,858   $296,582,972
    Cash                                          $1,976,592     $2,531,009
    Restricted Cash                                 $636,126    $12,616,482
    Lease Revenue Receivable                      $5,782,118     $6,941,315
    Other Assets, net                             $4,239,791     $4,179,967
    Total Assets                                $346,725,485   $322,851,745
    Mortgage Notes Payable                      $207,145,362   $173,957,998
    Other Liabilities                             $4,351,139     $4,420,597
    Accounts Payable to Affiliates                $6,820,370     $6,475,510
    Preferred Stock Dividends Payable             $1,667,183     $1,694,595
    Total Shareholders' Equity                  $126,741,431   $136,303,045


                           Three Months Ended           Twelve Months Ended
                              December 31                    December 31

Jameson Inns                  2000         1999          2000          1999
    All Inns:
    Occupancy Rate            51.6%        53.7%         57.1%        60.0%
    Average Daily Rate      $55.63       $54.03        $54.92       $53.04
    REVPAR                  $28.69       $29.01        $31.34       $31.84

    Same Inns:
    Occupancy Rate            53.4%        53.9%         59.2%        61.2%
    Average Daily Rate      $55.03       $53.94        $54.23       $52.93
    REVPAR                  $29.40       $29.09        $32.10       $32.38

Signature Inns Pro forma
    Occupancy Rate            45.5%        50.5% (1)    55.9%        57.9%(1)
    Average Daily Rate      $65.25       $63.89       $64.81       $63.41
    REVPAR                  $29.70       $32.26       $36.21       $36.74


Jameson and Signature Brands
    Pro forma Same Inns:
    Occupancy Rate            50.1%        52.5% (1)     57.7%      59.7%(1)
    Average Daily Rate      $58.98       $58.03        $58.83     $57.51
    REVPAR                  $29.53       $30.44        $33.95     $34.34

    Actual All Inns:
    Occupancy Rate            49.3%        52.4%         56.6%      60.0%
    Average Daily Rate      $59.00       $58.02        $58.81     $56.36
    REVPAR                  $29.07       $30.38        $33.28     $33.83

    (1) Assumes the 26 Signature Inns were owned as of January 1, 1999.

    REVPAR represents Revenue per Available Room