BOY's properties fall into 3 major categories: those that BOY bought into with its IPO proceeds in 1996 (10 hotels remaining, 2,488 rooms at 12/05), those that BOY acquired in 1998 when it acquired Red Lion (6 hotels remaining, 2,329 rooms), and those that it built, bought or swapped for since 1998 (5 hotels remaining, 1,054 rooms).
The Red Lion deal and the new properties were arm's-length transactions. That is, BOY wasn't dealing with Mr Boykin on the other side of the table, and so there was no incentive to over or under value anything. Not surprisingly, hotels in this category that have already been sold (5 Red Lion hotels, several newer ones) have been sold at least at breakeven (Red Lion) or at significant profits (newer acquisitions). The Red Lion sales at breakeven to book value on an overall basis are understandable - these were the smallest hotels in the Red Lion portfolio, and they were sold for book value, overall.
The newer hotels that have since been sold were sold for large profits, including Marco Island and Marathon. I haven't checked all of the sales, but I think all of the newer hotels that were sold generated profits. I'll check this tonight.
This leaves BOY with the original hotels acquired with the IPO money. Guess what - these were purchased from Mr Boykin's company. And I'll bet that the entire loss on hotels that we're looking at is the result of these hotels.