DRH » Topics » We cannot assure you that we will remain qualified as a REIT.

These excerpts taken from the DRH 10-K filed Feb 27, 2009.
We cannot assure you that we will remain qualified as a REIT.
 
We believe we are qualified to be taxed as a REIT for our taxable year ended December 31, 2008, and we expect to continue to qualify as a REIT for future taxable years, but we cannot assure you that we have qualified, or will remain qualified, as a REIT.
 
The REIT qualification requirements are extremely complex and official interpretations of the federal income tax laws governing qualification as a REIT are limited. Certain aspects of our REIT qualification are beyond our control. For example, we will fail to qualify as a REIT if one of our hotel managers acquires


23


 

directly or constructively more than 35% of our stock. Accordingly, we cannot be certain that we will be successful in operating so that we can remain qualified as a REIT. At any time, new laws, interpretations, or court decisions may change the federal tax laws or the federal income tax consequences of our qualification as a REIT.
 
Moreover, our charter provides that our board of directors may revoke or otherwise terminate our REIT election, without the approval of our stockholders, if it determines that it is no longer in our best interest to continue to qualify as a REIT.
 
If we fail to qualify as a REIT and do not qualify for certain statutory relief provisions, or otherwise cease to be a REIT, we will be subject to federal income tax on our taxable income. We might need to borrow money or sell assets in order to pay any such tax. Unless we were entitled to relief under certain federal income tax laws, we could not re-elect REIT status until the fifth calendar year after the year in which we failed to qualify as a REIT.
 
We cannot assure you that we will remain qualified as a REIT.
 
We believe we are qualified to be taxed as a REIT for our taxable year ended December 31, 2008, and we expect to continue to qualify as a REIT for future taxable years, but we cannot assure you that we have qualified, or will remain qualified, as a REIT.
 
The REIT qualification requirements are extremely complex and official interpretations of the federal income tax laws governing qualification as a REIT are limited. Certain aspects of our REIT qualification are beyond our control. For example, we will fail to qualify as a REIT if one of our hotel managers acquires


23


 

directly or constructively more than 35% of our stock. Accordingly, we cannot be certain that we will be successful in operating so that we can remain qualified as a REIT. At any time, new laws, interpretations, or court decisions may change the federal tax laws or the federal income tax consequences of our qualification as a REIT.
 
Moreover, our charter provides that our board of directors may revoke or otherwise terminate our REIT election, without the approval of our stockholders, if it determines that it is no longer in our best interest to continue to qualify as a REIT.
 
If we fail to qualify as a REIT and do not qualify for certain statutory relief provisions, or otherwise cease to be a REIT, we will be subject to federal income tax on our taxable income. We might need to borrow money or sell assets in order to pay any such tax. Unless we were entitled to relief under certain federal income tax laws, we could not re-elect REIT status until the fifth calendar year after the year in which we failed to qualify as a REIT.
 
We
cannot assure you that we will remain qualified as a
REIT.



 



We believe we are qualified to be taxed as a REIT for our
taxable year ended December 31, 2008, and we expect to
continue to qualify as a REIT for future taxable years, but we
cannot assure you that we have qualified, or will remain
qualified, as a REIT.


 



The REIT qualification requirements are extremely complex and
official interpretations of the federal income tax laws
governing qualification as a REIT are limited. Certain aspects
of our REIT qualification are beyond our control. For example,
we will fail to qualify as a REIT if one of our hotel managers
acquires





23





 






directly or constructively more than 35% of our stock.
Accordingly, we cannot be certain that we will be successful in
operating so that we can remain qualified as a REIT. At any
time, new laws, interpretations, or court decisions may change
the federal tax laws or the federal income tax consequences of
our qualification as a REIT.


 



Moreover, our charter provides that our board of directors may
revoke or otherwise terminate our REIT election, without the
approval of our stockholders, if it determines that it is no
longer in our best interest to continue to qualify as a REIT.


 



If we fail to qualify as a REIT and do not qualify for certain
statutory relief provisions, or otherwise cease to be a REIT, we
will be subject to federal income tax on our taxable income. We
might need to borrow money or sell assets in order to pay any
such tax. Unless we were entitled to relief under certain
federal income tax laws, we could not re-elect REIT status until
the fifth calendar year after the year in which we failed to
qualify as a REIT.


 




We
cannot assure you that we will remain qualified as a
REIT.



 



We believe we are qualified to be taxed as a REIT for our
taxable year ended December 31, 2008, and we expect to
continue to qualify as a REIT for future taxable years, but we
cannot assure you that we have qualified, or will remain
qualified, as a REIT.


 



The REIT qualification requirements are extremely complex and
official interpretations of the federal income tax laws
governing qualification as a REIT are limited. Certain aspects
of our REIT qualification are beyond our control. For example,
we will fail to qualify as a REIT if one of our hotel managers
acquires





23





 






directly or constructively more than 35% of our stock.
Accordingly, we cannot be certain that we will be successful in
operating so that we can remain qualified as a REIT. At any
time, new laws, interpretations, or court decisions may change
the federal tax laws or the federal income tax consequences of
our qualification as a REIT.


 



Moreover, our charter provides that our board of directors may
revoke or otherwise terminate our REIT election, without the
approval of our stockholders, if it determines that it is no
longer in our best interest to continue to qualify as a REIT.


 



If we fail to qualify as a REIT and do not qualify for certain
statutory relief provisions, or otherwise cease to be a REIT, we
will be subject to federal income tax on our taxable income. We
might need to borrow money or sell assets in order to pay any
such tax. Unless we were entitled to relief under certain
federal income tax laws, we could not re-elect REIT status until
the fifth calendar year after the year in which we failed to
qualify as a REIT.


 




These excerpts taken from the DRH 10-K filed Feb 29, 2008.

We cannot assure you that we will remain qualified as a REIT.

        We believe we are qualified to be taxed as a REIT for our taxable year ended December 31, 2007, and we expect to continue to qualify as a REIT for future taxable years, but we cannot assure you that we have qualified, or will remain qualified, as a REIT.

        The REIT qualification requirements are extremely complex and official interpretations of the federal income tax laws governing qualification as a REIT are limited. Certain aspects of our REIT qualification are beyond our control. For example, we will fail to qualify as a REIT if one of our hotel managers acquires directly or constructively more than 35% of our stock. Accordingly, we cannot be certain that we will be successful in operating so that we can remain qualified as a REIT. At any time, new laws, interpretations, or court decisions may change the federal tax laws or the federal income tax consequences of our qualification as a REIT.

19


        Moreover, our charter provides that our board of directors may revoke or otherwise terminate our REIT election, without the approval of our stockholders, if it determines that it is no longer in our best interest to continue to qualify as a REIT.

        If we fail to qualify as a REIT and do not qualify for certain statutory relief provisions, or otherwise cease to be a REIT, we will be subject to federal income tax on our taxable income. We might need to borrow money or sell assets in order to pay any such tax. Unless we were entitled to relief under certain federal income tax laws, we could not re-elect REIT status until the fifth calendar year after the year in which we failed to qualify as a REIT.

We cannot assure you that we will remain qualified as a REIT.



        We believe we are qualified to be taxed as a REIT for our taxable year ended December 31, 2007, and we expect to continue to qualify as a REIT for future
taxable years, but we cannot assure you that we have qualified, or will remain qualified, as a REIT.



        The
REIT qualification requirements are extremely complex and official interpretations of the federal income tax laws governing qualification as a REIT are limited. Certain aspects of
our REIT qualification are beyond our control. For example, we will fail to qualify as a REIT if one of our hotel managers acquires directly or constructively more than 35% of our stock. Accordingly,
we cannot be certain that we will be successful in operating so that we can remain qualified as a REIT. At any time, new laws, interpretations, or court decisions may change the federal tax laws or
the federal income tax consequences of our qualification as a REIT.



19









        Moreover,
our charter provides that our board of directors may revoke or otherwise terminate our REIT election, without the approval of our stockholders, if it determines that it is no
longer in our best interest to continue to qualify as a REIT.



        If
we fail to qualify as a REIT and do not qualify for certain statutory relief provisions, or otherwise cease to be a REIT, we will be subject to federal income tax on our taxable
income. We might need to borrow money or sell assets in order to pay any such tax. Unless we were entitled to relief under certain federal income tax laws, we could not re-elect REIT
status until the fifth calendar year after the year in which we failed to qualify as a REIT.



This excerpt taken from the DRH 10-K filed Mar 1, 2007.

We cannot assure you that we will remain qualified as a REIT.

We believe we are qualified to be taxed as a REIT for our taxable year ended December 31, 2006, and we expect to continue to qualify as a REIT for future taxable years, but we cannot assure you that we have qualified, or will remain qualified, as a REIT.

The REIT qualification requirements are extremely complex and official interpretations of the federal income tax laws governing qualification as a REIT are limited. Certain aspects of our REIT qualification are beyond our control. For example, we will fail to qualify as a REIT if one of our hotel managers acquires directly or constructively more than 35% of our stock. Accordingly, we cannot be certain that we will be successful in operating so that we can remain qualified as a REIT. At any time, new laws, interpretations, or court decisions may change the federal tax laws or the federal income tax consequences of our qualification as a REIT.

Moreover, our charter provides that our board of directors may revoke or otherwise terminate our REIT election, without the approval of our stockholders, if it determines that it is no longer in our best interest to continue to qualify as a REIT.

If we fail to qualify as a REIT and do not qualify for certain statutory relief provisions, or otherwise cease to be a REIT, we will be subject to federal income tax on our taxable income. We might need to borrow money or sell assets in order to pay any such tax. Unless we were entitled to relief under certain federal income tax laws, we could not re-elect REIT status until the fifth calendar year after the year in which we failed to qualify as a REIT.

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