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<SEC-DOCUMENT>0001104659-03-014147.txt : 20030707
<SEC-HEADER>0001104659-03-014147.hdr.sgml : 20030704
<ACCEPTANCE-DATETIME>20030707141616
ACCESSION NUMBER:		0001104659-03-014147
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20030701
ITEM INFORMATION:		Other events
ITEM INFORMATION:		Financial statements and exhibits
FILED AS OF DATE:		20030707

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			HOSPITALITY PROPERTIES TRUST
		CENTRAL INDEX KEY:			0000945394
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				043262075
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-11527
		FILM NUMBER:		03776739

	BUSINESS ADDRESS:	
		STREET 1:		400 CENTRE ST
		CITY:			NEWTON
		STATE:			MA
		ZIP:			02158
		BUSINESS PHONE:		6179648389

	MAIL ADDRESS:	
		STREET 1:		400 CENTRE STREET
		CITY:			NEWTON
		STATE:			MA
		ZIP:			02158
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>j2856_8k.htm
<DESCRIPTION>8-K
<TEXT>
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<p align="center" style="border:none;color:windowtext;margin:0in 0in .0001pt;padding:0in;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



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<p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">UNITED STATES<font style="text-transform:uppercase;"><br>

</font>SECURITIES AND EXCHANGE COMMISSION</font></b></p>



<p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WASHINGTON,

D.C. 20549</font></b></p>



<p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">FORM 8-K</font></b></p>



<p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">CURRENT REPORT</font></b></p>



<p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">Pursuant to Section 13 or 15(d) of the<br>

Securities and Exchange Act of 1934</font></b></p>



<p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date of Report (Date of

earliest event reported):<b><font style="font-weight:bold;">&#160; July 1, 2003</font></b></font></p>



<p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">HOSPITALITY PROPERTIES TRUST</font></b></p>



<p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Exact name of registrant

as specified in its charter)</font></p>



<p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<div align="center">



<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">

 <tr>

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  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Maryland</font></b></p>

  </td>

  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">

  <p style="color:windowtext;font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">

  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1-11527</font></b></p>

  </td>

  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">

  <p style="color:windowtext;font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">

  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">04-3262075</font></b></p>

  </td>

 </tr>

 <tr>

  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">

  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(State or other

  jurisdiction of<br>

  incorporation or organization)</font></p>

  </td>

  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">

  <p style="color:windowtext;font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">

  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Commission File<br>

  Number)</font></p>

  </td>

  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">

  <p style="color:windowtext;font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">

  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(I.R.S. Employer<br>

  Identification Number)</font></p>

  </td>

 </tr>

 <tr>

  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">

  <p align="center" style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">

  <p style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">

  <p align="center" style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">

  <p style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">

  <p align="center" style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="66%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:66.0%;">

  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">400 Centre Street, Newton,

  Massachusetts</font></b></p>

  </td>

  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">

  <p style="color:windowtext;font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">

  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">02458</font></b></p>

  </td>

 </tr>

 <tr>

  <td width="66%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:66.0%;">

  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Address of

  registrant&#146;s principal executive offices)</font></p>

  </td>

  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">

  <p style="color:windowtext;font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">

  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Zip code)</font></p>

  </td>

 </tr>

 <tr>

  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">

  <p align="center" style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">

  <p style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">

  <p align="center" style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">

  <p style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">

  <p align="center" style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="100%" colspan="5" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">

  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">617-964-8389</font></b></p>

  </td>

 </tr>

 <tr>

  <td width="100%" colspan="5" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">

  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Registrant&#146;s telephone

  number, including area code)</font></p>

  </td>

 </tr>

</table>



</div>



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<p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>





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<p align="center" style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="color:windowtext;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item

5.&#160; Other Events.</font></b></p>



<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">A.&#160; <u>Information regarding acquisition of

certain Staybridge Suites</u></font></b><u><sup>&#174;</sup><b><font style="font-weight:bold;"> hotels</font></b></u><b><font style="font-weight:bold;">.</font></b></p>



<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="color:windowtext;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On July 1, 2003, we acquired sixteen Staybridge Suites<sup>&#174;</sup>

hotels from a subsidiary of InterContinental Hotels Group PLC (&#147;IHG&#148;).&#160; Staybridge Suites<sup>&#174;</sup> hotels are

upscale, extended stay hotels which are designed to attract business travelers

and families traveling together.&#160; Most

of the accommodations at these hotels consist of one and two bedroom suites

with amenities such as full kitchens, separate living rooms, Internet access

and personal phone lines and voicemail.&#160;

These sixteen hotels have an aggregate of 1,960 guest suites and are

located in eleven states, specifically California (2 hotels), Colorado (1

hotel), Florida (1 hotel), Georgia (2 hotels), Maryland (1 hotel),

Massachusetts (2 hotels), Michigan (1 hotel), North Carolina (1 hotel), South

Carolina (1 hotel), Texas (3 hotels) and Washington (1 hotel).&#160; The average age of the sixteen hotels is

approximately 3 years.</font></p>



<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="color:windowtext;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Commencing on the acquisition date, these hotels were

leased to one of our subsidiaries and operated for such subsidiary&#146;s account

under a management agreement with a subsidiary of IHG.&#160; The management agreement has an initial term

expiring in 2023 and provides IHG with two 12.5 year renewal options for all,

but not less than all, of the hotels.&#160;

Further, the management agreement requires that the manager escrow 5% of

gross revenues at the hotels (subject to a ramp-up period) for capital

expenditures and priority returns to us of $16.9 million per year plus 7.5% of

gross revenues in excess of negotiated amounts.&#160; The payment of priority returns to us is senior to the payment of

the management fees to the manager.&#160; The

manager&#146;s obligations are secured by a security deposit held by us of $16.9

million and are guaranteed by IHG until the financial results of the hotels reach

certain negotiated levels.</font></p>



<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="color:windowtext;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The aggregate purchase price for these hotels was $185

million and was paid in cash.&#160; The

acquisition was funded using cash on hand and borrowings under our unsecured

bank credit facility.</font></p>



<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="color:windowtext;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">B.&#160; <u>Information regarding declaration of

default of Prime Hospitality Corp</u>.</font></b></p>



<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="color:windowtext;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On July 2, 2003, we issued a press release regarding

notices of default to Prime Hospitality Corp.&#160;

A copy of that press release is attached as Exhibit 99.1 to this Current

Report on Form 8-K and is incorporated herein by reference.</font></p>



<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">C. </font></b>&#160;<b><u><font style="font-weight:bold;">Supplementary federal income tax considerations</font></u>.</b></p>



<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="color:windowtext;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The following summary of federal income tax

considerations supplements and updates the more detailed descriptions of these

matters appearing under the caption &#147;Federal Income Tax Considerations&#148; of Item

1 of our Annual Report on Form 10-K for the year ended December 31, 2002 (our

&#147;2002 Annual Report&#148;), and supersedes the description of these matters

appearing under the caption &#147;Supplementary federal income tax considerations&#148;

in our Current Report on Form 8-K filed on May 14, 2003.&#160; Sullivan &amp; Worcester LLP, Boston,

Massachusetts, has rendered a legal opinion that the discussion in the portion

of our 2002 Annual Report captioned &#147;Federal Income Tax Considerations&#148;, as

supplemented by the discussion in this Part C, is accurate in all material

respects and fairly summarizes the federal income tax issues discussed in</font></p>



<p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>





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</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">those sections, and the opinions of counsel referred to in such portion

of our 2002 Annual Report, as supplemented by the discussion in this Part C,

represent Sullivan &amp; Worcester LLP&#146;s opinions on those subjects.&#160; Specifically, subject to qualifications and

assumptions contained in its opinions, in our 2002 Annual Report and in this

Form 8-K, Sullivan &amp; Worcester LLP has given opinions to the effect that we

have been organized and have qualified as a REIT under the Internal Revenue

Code of 1986, as amended (the &#147;IRC&#148;), for our 1995 through 2002 taxable years,

and that our current investments and plan of operation will enable us to

continue to meet the requirements for qualification and taxation as a REIT

under the IRC.</font></p>



<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="color:windowtext;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On April 28<b><font style="font-weight:bold;">,</font></b> 2003, we terminated Wyndham&#146;s occupancy

and operations of 15 Summerfield Suites by Wyndham<sup>&#174; </sup>hotels after a

default on lease payments owed to us. We then leased these hotels to one of our

taxable REIT subsidiaries.&#160; This taxable

REIT subsidiary has engaged Candlewood Management, Inc. (f/k/a Candlewood Management,

LLC) to serve as the manager for these hotels. We understand from Candlewood

Management, Inc. that it or its affiliate operates several &#147;qualified lodging

facilities&#148;, within the meaning of Section 856(d)(9)(D) of the IRC, for parties

unrelated to us or the taxable REIT subsidiary.&#160; For a hotel operator to qualify as an &#147;eligible independent

contractor&#148; within the meaning of Section 856(d)(9)(A) of the IRC, it or its

affiliates must be actively engaged in the business of operating &#147;qualified

lodging facilities&#148; for parties unrelated to us.&#160; Although there can be no assurance in this regard, we believe

that this arrangement generates rents to us that qualify as &#147;rents from real

property&#148; under the REIT gross income tests summarized in our 2002 Annual Report,

because we believe that Candlewood Management, Inc. operates enough &#147;qualified

lodging facilities&#148;, within the meaning of Section 856(d)(9)(D) of the IRC, for

parties unrelated to us or the taxable REIT subsidiary and thus qualifies as

such an eligible independent contractor.&#160;

We have received an opinion of counsel that Candlewood Management, Inc.

should qualify as such an eligible independent contractor, and that, although

the matter is not free from doubt, it is reasonable for us to rely on such

opinion for purposes of the relief provisions under the REIT gross income tests

summarized in our 2002 Annual Report.</font></p>



<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="color:windowtext;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On May 12<b><font style="font-weight:bold;">,</font></b> 2003, we terminated Wyndham&#146;s occupancy

and operations of 12 Wyndham<sup>&#174; </sup>hotels after a default on lease

payments owed to us.&#160; We then leased

these hotels to one of our taxable REIT subsidiaries. This taxable REIT

subsidiary has engaged Crestline Hotels &amp; Resorts, Inc. to serve as the

manager for these hotels.&#160; We believe

that Crestline Hotels &amp; Resorts, Inc. is actively engaged in the business

of operating &#147;qualified lodging facilities&#148;, within the meaning of Section

856(d)(9)(D) of the IRC, for parties unrelated to us or the taxable REIT

subsidiary.&#160; Although there can be no

assurance in this regard, we believe that this arrangement generates rents to

us that qualify as &#147;rents from real property&#148; under the REIT gross income tests

summarized in our 2002 Annual Report, because we believe that Crestline Hotels

&amp; Resorts, Inc. qualifies under Section 856(d)(9)(A) of the IRC as an

&#147;eligible independent contractor&#148;.</font></p>



<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="color:windowtext;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As discussed above, on July 1, 2003, we acquired 16

Staybridge Suites<sup>&#174;</sup> hotels and began leasing them to one of our

taxable REIT subsidiaries.&#160; This taxable

REIT subsidiary has engaged InterContinental Hotels Group Resources, Inc. to

serve as the manager for these hotels pursuant to a long-term management

agreement.&#160; We believe that

InterContinental Hotels Group Resources, Inc. or its affiliates are actively

engaged in the business of operating &#147;qualified lodging facilities&#148;, within the

meaning of Section 856(d)(9)(D) of the IRC, for parties unrelated to us or the

taxable REIT subsidiary, and accordingly, although there can be no assurance in

this</font></p>



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<p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>





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<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">regard, we believe that InterContinental Hotels Group Resources, Inc.

qualifies as an &#147;eligible independent contractor&#148; under Section 856(d)(9)(A) of

the IRC.</font></p>



<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="color:windowtext;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition, although there is no clear precedent to

distinguish for federal income tax purposes among leases, management contracts,

partnerships, financings, and other contractual arrangements, we believe that

the leases and management agreements to which our taxable REIT subsidiaries

discussed above are a party will be respected for purposes of the IRC.&#160; Accordingly, although there can be no

assurance in this regard, we expect that the rental income we receive from the

taxable REIT subsidiaries will qualify as &#147;rents from real property&#148; under the

REIT gross income tests summarized in our 2002 Annual Report.&#160; We will also take steps to qualify for the

75% and 95% gross income tests under the relief provision described in our 2002

Annual Report, including for example attaching an applicable schedule of gross

income to our federal income tax returns as required by Section 856(c)(6)(A) of

the IRC.&#160; Thus, even if the IRS or a

court ultimately determines that one or more of our operators failed to operate

enough &#147;qualified lodging facilities&#148; for others and thus failed to qualify as

an eligible independent contractor, and that this failure thereby implicated

our compliance with the REIT gross income tests summarized in our 2002 Annual

Report, we expect we would qualify for the gross income tests&#146; relief provision

and thereby preserve our qualification as a REIT. If this relief provision were

to apply to us, we would then be subject to a penalty tax at a 100% rate on the

greater of the amount by which we failed the 75% or the 95% gross income test,

with adjustments, multiplied by a fraction intended to reflect our

profitability for the taxable year; however, based on our computations, we

would expect to owe little or no penalty tax in these circumstances.</font></p>



<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="color:windowtext;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Restrictions are imposed on a taxable REIT subsidiary

to ensure that it will be subject to an appropriate level of federal income

taxation.&#160; For example, if a taxable

REIT subsidiary pays interest, rent, or other amounts to its affiliated REIT in

an amount that exceeds what an unrelated third party would have paid in an

arm&#146;s length transaction, then the REIT generally will be subject to an excise

tax equal to 100% of the excessive portion of the payment.&#160; There can be no assurance that arrangements

involving our taxable REIT subsidiaries will not result in the imposition of

one or more of these restrictions or excise taxes, but we do not believe that

we are or will be subject to these impositions.</font></p>



<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="color:windowtext;margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WARNING

REGARDING FORWARD LOOKING STATEMENTS</font></b></p>



<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">STATEMENTS CONTAINED IN THIS FORM 8-K THAT ARE NOT HISTORICAL FACTS ARE

FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES

LITIGATION REFORM ACT OF 1995 AND THE FEDERAL SECURITIES LAWS. THESE FORWARD

LOOKING STATEMENTS ARE BASED UPON OUR PRESENT BELIEFS AND EXPECTATIONS, BUT

THEY ARE NOT GUARANTEED TO OCCUR.&#160; THESE

FORWARD LOOKING STATEMENTS INCLUDE THE IMPLICATIONS THAT THE OPERATIONS OF THE

16 STAYBRIDGE SUITES<sup>&#174;</sup> HOTELS WILL GENERATE SUFFICIENT CASH FLOWS TO

PAY OUR OWNER&#146;S PRIORITY AND THAT THE INTERCONTINENTAL HOTELS GROUP GUARANTY

WILL INSURE THIS PAYMENT.&#160; THE

OPERATIONS OF THE HOTELS MAY NOT PRODUCE SUFFICIENT EARNINGS TO PAY OUR OWNER&#146;S

PRIORITY. SUCH UNEXPECTED RESULTS MAY OCCUR FOR MANY DIFFERENT REASONS, SOME OF

WHICH ARE BEYOND OUR CONTROL. FOR EXAMPLE, A TERRORIST ATTACK WITHIN THE UNITED

STATES OR A</font></p>



<p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>





<div style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">CONTINUING DECLINE IN THE U.S. TRAVEL INDUSTRY WOULD ADVERSELY AFFECT

THE HOTELS&#146; FINANCIAL RESULTS. SIMILARLY, IHG MAY BE UNWILLING OR UNABLE TO

HONOR ITS GUARANTY. THE IHG GUARANTY IS LIMITED TO $50 MILLION AND WILL EXPIRE

WHEN NEGOTIATED PERFORMANCE LEVELS ARE ACHIEVED.&#160; OUR CONTINUED QUALIFICATION AS A REIT DEPENDS ON MANY FACTORS,

INCLUDING BUT NOT LIMITED TO OUR ARRANGEMENTS WITH IHG FOR THE OPERATION OF THE

16 STAYBRIDGE SUITES<sup>&#174;</sup> HOTELS, AND OUR INTERPRETATION OF COMPLIANCE

WITH QUALIFICATION TESTS IS SUBJECT TO ALTERNATIVE INTERPRETATION BY THE

INTERNAL REVENUE SERVICE.&#160; OTHER EVENTS

OR TRANSACTIONS WHICH MAY OCCUR IN THE FUTURE MAY ALSO IMPACT THESE FORWARD

LOOKING STATEMENTS, SOME OF WHICH MAY BE BEYOND OUR CONTROL.&#160; INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE

RELIANCE UPON FORWARD LOOKING STATEMENTS CONTAINED IN THIS FORM 8-K.</font></p>



<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="color:windowtext;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 7.&#160; Financial Statements and Exhibits.</font></b></p>



<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibits.</font></p>



<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">

 <tr>

  <td width="17%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:17.3%;">

  <p style="color:windowtext;margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Exhibit Number</font></b></p>

  </td>

  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.0%;">

  <p align="center" style="color:windowtext;font-size:1.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

  </td>

  <td width="79%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:79.78%;">

  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Description</font></b></p>

  </td>

 </tr>

 <tr>

  <td width="17%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:17.3%;">

  <p style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.0%;">

  <p style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="79%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:79.78%;">

  <p style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="17%" valign="top" style="padding:0in 0in 0in 0in;width:17.3%;">

  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.1</font></p>

  </td>

  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.0%;">

  <p style="color:windowtext;font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="79%" valign="top" style="padding:0in 0in 0in 0in;width:79.78%;">

  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Opinion of Sullivan &amp; Worcester LLP as to

  certain tax matters.<br>

  <i><font style="font-style:italic;">(Filed

  Herewith)</font></i></font></p>

  </td>

 </tr>

 <tr>

  <td width="17%" valign="top" style="padding:0in 0in 0in 0in;width:17.3%;">

  <p style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.0%;">

  <p style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="79%" valign="top" style="padding:0in 0in 0in 0in;width:79.78%;">

  <p style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="17%" valign="top" style="padding:0in 0in 0in 0in;width:17.3%;">

  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.1</font></p>

  </td>

  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.0%;">

  <p style="color:windowtext;font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="79%" valign="top" style="padding:0in 0in 0in 0in;width:79.78%;">

  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Press release, dated July 2, 2003.<br>

  <i><font style="font-style:italic;">(Filed

  Herewith)</font></i></font></p>

  </td>

 </tr>

</table>



<p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>





<div style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



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<p align="center" style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SIGNATURES</font></b></p>



<p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="color:windowtext;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant to the requirements 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.</font></p>



<p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">

 <tr>

  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.16%;">

  <p style="color:windowtext;font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.5%;">

  <p style="color:windowtext;font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="48%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:48.34%;">

  <p style="color:windowtext;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">HOSPITALITY

  PROPERTIES TRUST</font></b></p>

  </td>

 </tr>

 <tr>

  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.16%;">

  <p style="color:windowtext;font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.5%;">

  <p style="color:windowtext;font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="48%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:48.34%;">

  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Registrant)</font></p>

  </td>

 </tr>

 <tr>

  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.16%;">

  <p style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.5%;">

  <p style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="48%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:48.34%;">

  <p style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.16%;">

  <p style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.5%;">

  <p style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="48%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:48.34%;">

  <p style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.16%;">

  <p style="color:windowtext;font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.5%;">

  <p style="color:windowtext;font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.92%;">

  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>

  </td>

  <td width="17%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:17.88%;">

  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;/s/ Mark L.

  Kleifges</font></p>

  </td>

  <td width="27%" valign="top" style="padding:0in 0in 0in 0in;width:27.54%;">

  <p style="color:windowtext;font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.16%;">

  <p style="color:windowtext;font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.5%;">

  <p style="color:windowtext;font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.92%;">

  <p style="color:windowtext;font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="45%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:45.42%;">

  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mark L. Kleifges</font></p>

  </td>

 </tr>

 <tr>

  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.16%;">

  <p style="color:windowtext;font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.5%;">

  <p style="color:windowtext;font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.92%;">

  <p style="color:windowtext;font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="45%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:45.42%;">

  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Treasurer</font></p>

  </td>

 </tr>

 <tr>

  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.16%;">

  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dated:&#160; July

  7, 2003</font></p>

  </td>

  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.5%;">

  <p style="color:windowtext;font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="48%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:48.34%;">

  <p style="color:windowtext;font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

</table>



<p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



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<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 8.1</font></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt 4.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">July 7, 2003</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hospitality Properties Trust<br>

400 Centre Street<br>

Newton, Massachusetts&#160; 02458</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ladies and Gentlemen:</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The following opinion is

furnished to Hospitality Properties Trust, a Maryland real estate investment

trust (the &#147;Company&#148;) to be filed with the Securities Exchange Commission (the

&#147;SEC&#148;) as Exhibit 8.1 to the Company&#146;s Current Report on Form 8-K (the &#147;Form

8-K&#148;), to be filed within one week of the date hereof, under the Securities

Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;).</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In connection with this opinion,

we have reviewed originals or copies, certified or otherwise identified to our

satisfaction, of corporate records, certificates and statements of officers and

accountants of the Company and of public officials, and such other documents as

we have considered relevant and necessary in order to furnish the opinion

hereinafter set forth.&#160; In doing so, we

have assumed the genuineness of all signatures, the legal capacity of natural persons,

the authenticity of all documents submitted to us as originals, the conformity

to original documents of all documents submitted to us as copies, and the

authenticity of the originals of such documents.&#160; Specifically, and without limiting the generality of the

foregoing, we have reviewed:&#160; (i) the

declaration of trust and the by-laws of the Company, each as amended and

restated; (ii) the section in the Company&#146;s Annual Report on Form 10-K for the

year ended December 31, 2002 filed under the Exchange Act (the &#147;Annual Report&#148;)

captioned &#147;Federal Income Tax Considerations&#148;; (iii) the section in the Form

8-K captioned &#147;Supplementary federal income tax considerations&#148;; (iv) the

master lease agreement between HPTSHC Properties Trust (&#147;HPTSHC&#148;), a

wholly-owned subsidiary of the Company, and HPT TRS SPES, Inc. (&#147;HPT TRS

SPES&#148;), also a wholly-owned subsidiary of the Company, for 15 hotels formerly

leased by HPTSHC to Wyndham International, Inc. or its subsidiaries (&#147;Wyndham&#148;)

and formerly operated by Wyndham; (v) the management agreement pursuant to which

these properties are operated on behalf of HPT TRS SPES by Candlewood

Management, LLC; (vi) the master lease agreement between HPTWN Properties Trust

(&#147;HPTWN&#148;), a wholly-owned subsidiary of the</font></p>



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<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Company, and HPT TRS SPES II, Inc. (&#147;HPT TRS SPES

II&#148;), also a wholly-owned subsidiary of the Company, for 12 hotels formerly

leased by HPTWN to Wyndham and formerly operated by Wyndham; (vii) the

management agreement pursuant to which these properties are operated on behalf

of HPT TRS SPES II by Crestline Hotels &amp; Resorts, Inc.; (viii) the purchase

and sale agreement between InterContinental Hotels Group Resources, Inc.

(&#147;IHG&#148;) and HPT IHG Properties Trust (&#147;HPT IHG&#148;), a wholly-owned subsidiary of

the Company, with respect to 16 hotels operated by IHG as Staybridge Suites

hotels; (ix) the lease agreement between HPT IHG and HPT TRS IHG-1, Inc. (&#147;HPT

TRS IHG-1&#148;), a wholly-owned subsidiary of the Company, with respect to these

properties; (x) the management agreement pursuant to which these properties are

operated on behalf of HPT TRS IHG-1 by IHG; (xi) the guaranty agreement between

InterContinental Hotels Group PLC (&#147;IHG PLC&#148;), HPT TRS IHG-1 and the Company

pursuant to which IHG PLC will guarantee certain of IHG&#146;s obligations under the

management agreement; and (xii) the guaranty agreement between the Company and

IHG PLC pursuant to which the Company will guarantee certain of HPT TRS IHG-1&#146;s

obligations under the management agreement.&#160;

With respect to all questions of fact on which the opinion set forth

below is based, we have assumed the accuracy and completeness of and have

relied on the information set forth in the Annual Report, the Form 8-K and in

the documents incorporated therein by reference, and on representations made to

us by officers of the Company.&#160; We have

not independently verified such information.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The opinion set forth below is based upon the Internal

Revenue Code of 1986, as amended, the Treasury Regulations issued thereunder,

published administrative interpretations thereof, and judicial decisions with

respect thereto, all as of the date hereof (collectively, the &#147;Tax Laws&#148;).&#160; No assurance can be given that the Tax Laws

will not change.&#160; In preparing the

discussions with respect to Tax Laws in the section of the Annual Report

captioned &#147;Federal Income Tax Considerations&#148;, as supplemented by the section

of the Form 8-K captioned &#147;Supplementary federal income tax considerations&#148;, we

have made certain assumptions and expressed certain conditions and

qualifications therein, all of which assumptions, conditions and qualifications

are incorporated herein by reference.&#160;

With respect to all questions of fact on which our opinion is based, we

have assumed the initial and continuing truth, accuracy and completeness of:

(i) the information set forth in the Annual Report, the Form 8-K, and in the

documents incorporated therein by reference; and (ii) representations made to

us by officers of the Company or contained in the Annual Report or the Form

8-K, in each such instance without regard to qualifications such as &#147;to the

best knowledge of&#148; or &#147;in the belief of.&#148;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We have relied upon, but not independently verified,

the foregoing assumptions.&#160; If any of

the foregoing assumptions is inaccurate or incomplete for any reason, or if the

transactions described in the Annual Report or the Form 8-K are consummated in

a manner that is inconsistent with the manner contemplated therein, our opinion

as expressed below may be adversely affected and may not be relied upon.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Based upon and subject to the foregoing, we are of the

opinion that the discussion with respect to Tax Laws matters in the section of

the Annual Report captioned &#147;Federal Income Tax Considerations&#148;, as

supplemented by the discussion in the Form 8-K captioned &#147;Supplementary federal

income tax considerations,&#148; in all material respects is accurate and fairly

summarizes the</font></p>



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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>





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<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Tax Laws issues addressed therein, and hereby confirm that the opinions

of counsel referred to in said sections represent our opinions on the subject

matter thereof.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">This opinion is intended solely

for the benefit and use of the Company, and is not to be used, released,

quoted, or relied upon by anyone else for any purpose (other than as required

by law) without our prior written consent.&#160;

We hereby consent to filing of a copy of this opinion as an exhibit to

the Form 8-K, which is incorporated by reference in the Company&#146;s Registration

Statements on Form S-3 (File Nos. 333-43573, 333-89307, 333-84064) under the

Securities Act of 1933, as amended (the &#147;Act&#148;), and to the references to our

firm in the Form 8-K and such Registration Statements.</font>&#160; In giving such consent, we do not thereby

admit that we come within the category of persons whose consent is required

under Section 7 of the Act or under the rules and regulations of the SEC

promulgated thereunder.</font></p>



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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Very truly yours,</font></p>

  </td>

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  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Sullivan &amp; Worcester LLP</font></p>

  </td>

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  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SULLIVAN &amp; WORCESTER LLP</font></p>

  </td>

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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>4
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<DESCRIPTION>EX-99.1
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<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit
99.1</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">HPT
DECLARES PRIME IN DEFAULT</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Newton, MA (July 2, 2003): Hospitality Properties Trust (NYSE: HPT)
today sent notices of default to Prime Hospitality Corp. (NYSE: PDQ) because
Prime failed to pay rent due to HPT on July 1, 2003.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">HPT owns 24 AmeriSuites Hotels (2,929 keys) located in 14 states which
are leased to a subsidiary of Prime. HPT also holds a guaranty for the lease
obligation. The lease and the guaranty are secured by deposits totaling $42.1
million. In addition, Prime&#146;s obligation to maintain these hotels is partially
secured by a reserve account and in which there was approximately $4.2 million
on deposit on May 31, 2003. The notices of default sent by HPT earlier today
state that HPT intends to retain the security and guaranty deposits and to take
control of the improvement reserve account.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The rent due to HPT from Prime, net of interest previously credited to
Prime on the deposits, is $1,982,900/month.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Prime&#146;s management and franchise arrangements for these 24 hotels are
subordinated to the lease obligations to HPT. Accordingly, HPT has the right to
install a new manager and to re-brand these hotels. HPT intends to meet with
Prime in the near future and it has not determined whether to change the
management of these hotels or their brand.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hospitality Properties Trust is a real estate investment trust
headquartered in Newton, Massachusetts, which owns 267 hotels located
throughout the United States.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WARNING REGARDING FORWARD
LOOKING STATEMENTS</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">THIS PRESS RELEASE CONTAINS FORWARD LOOKING STATEMENTS WITHIN THE
MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND THE FEDERAL
SECURITIES LAWS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON HPT&#146;S PRESENT
BELIEFS AND EXPECTATIONS BUT THEY ARE NOT GUARANTEED TO OCCUR. FOR EXAMPLE:</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#149;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>THIS
PRESS RELEASE STATES THAT HPT HAS NOTIFIED PRIME THAT PRIME IS IN DEFAULT OF
ITS LEASE OBLIGATIONS, THAT HPT WILL RETAIN THE SECURITY AND GUARANTY DEPOSITS
WHICH HPT HOLDS AND THAT HPT INTENDS TO TAKE CONTROL OF THE IMPROVEMENT RESERVE
ACCOUNT FOR THE 24 AMERISUITES HOTELS. HOWEVER, PRIME MAY ASSERT THAT IT IS NOT
IN DEFAULT OR THAT IT CAN CURE THE DEFAULT AND THAT HPT MAY NOT RETAIN DEPOSITS
OR CONTROL THE IMPROVEMENT RESERVE ACCOUNT. ALSO, THE IMPROVEMENT RESERVE
ACCOUNT IS DEPOSITED IN A FINANCIAL INSTITUTION WHICH MAY REFUSE TO ACCEPT
HPT&#146;S CONTROL OF THIS ACCOUNT.</p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#149;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>THIS
PRESS RELEASE IMPLIES THAT THE DEPOSITS AND THE RESERVE ACCOUNT MAY BE
SUFFICIENT TO COMPENSATE HPT FOR LOST RENT OR OTHER DAMAGES HPT MAY INCUR AS A
RESULT OF PRIME&#146;S DEFAULT. HOWEVER, HPT HAS NOT ESCROWED THE SECURITY AND
GUARANTY</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DEPOSITS; AND,
ACCORDINGLY, HPT&#146;S RETAINING THESE DEPOSITS WILL RELIEVE HPT OF ITS REPAYMENT
OBLIGATIONS BUT IT WILL NOT PROVIDE CASH TO HPT. ALSO, THE DAMAGES WHICH HPT
MAY INCUR MAY BE GREATER THAN THESE DEPOSITS AND THOSE EXCESS DAMAGES MAY NOT
BE COLLECTABLE FROM PRIME OR OTHERWISE. SIMILARLY, THE IMPROVEMENT RESERVE
ACCOUNT MAY BE INSUFFICIENT TO PAY FOR NECESSARY REPAIRS AT THE 24 HOTELS.</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#149;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>THIS
PRESS RELEASE STATES THAT HPT INTENDS TO MEET WITH PRIME AND IMPLIES THAT A
SETTLEMENT OF THE DEFAULT MAY BE NEGOTIATED. PRIME MAY REFUSE TO MEET WITH HPT
AND, IF A MEETING DOES OCCUR, HPT AND PRIME MAY BE UNABLE TO REACH A SETTLEMENT
OF THE DEFAULT.</p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#149;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>THIS
PRESS RELEASE STATES THAT HPT MAY CHANGE THE MANAGEMENT AND BRAND OF THESE 24
HOTELS. PRIME MAY DISPUTE HPT&#146;S RIGHT TO MAKE THESE CHANGES. ALSO, IT IS
POSSIBLE THAT HPT MAY DECIDE NOT TO CHANGE THE MANAGEMENT OR BRAND OF THESE
HOTELS AS A RESULT OF NEGOTIATIONS WITH PRIME OR FOR OTHER REASONS.</p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">PRIME&#146;S DEFAULT AND THE ACTIONS TAKEN BY HPT IN RESPONSE TO THIS
DEFAULT MAY RESULT IN LITIGATION BETWEEN HPT AND PRIME. DISCOVERY DURING
LITIGATION AND DECISIONS BY COURTS AND JURIES MAY CAUSE RESULTS WHICH ARE
DIFFERENT FROM WHAT HPT NOW EXPECTS; AND LITIGATION MAY BE EXPENSIVE. FOR ALL
OF THE FOREGOING REASONS, INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE
UPON FORWARD LOOKING STATEMENTS IN THIS PRESS RELEASE.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Investor Relations:
888-HPT-0321</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

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