It has not succeeded in cutting corporate overhead, and the result is growing losses.

He said the split would add only slightly to the corporate overhead by requiring another board.

That is before such costs as payments to the salesmen and corporate overhead.

The company cut its corporate overhead by $900,000 to $8.9 million, from $9.8 million last year.

But for boutique hotels the figure was $216, perhaps as a result of higher room rates and lower corporate overhead.

But for the moment, it wants to put a brake on expanding corporate overhead.

"We are beating the numbers, bottom and top line and corporate overhead," he said.

The company said it planned to sell some operations to raise cash and to move to slash corporate overhead.

Most of these companies have more corporate overhead than they need.

In the third quarter, corporate overhead rose $2.6 million, or 36 percent, to $9.8 million.