Now-disbanded Watermark Corp. sold the two Salt Lake City Anniversary Inns on July 1, ending the senator's six years in a disappointing - at times embarrassing - investment.

With the sale of the inns, Bennett and his partners also dumped a $320,000 delinquent property tax bill they racked up over four years.

Utah real estate developer Rich Bennion bought Watermark's Anniversary Inns in Boise and Logan two years ago. After months of negotiation, he consolidated those themed bed-and-breakfasts with the two Salt Lake City inns this summer.

Bennion will pay the back taxes, deducting the amount from the undisclosed final price.

"Everyone's glad" about the sale, said Bennett adviser Greg Hopkins.

"It was a good thing for both sides."

Bennion's Midway Capital has already taken over the maintenance and marketing of the two inns. Chief Operating Officer Spencer DeGraw says the hotels will continue to offer getaways to themed rooms including "Juliet's Balcony," the "Swiss Family Robinson" with beds in "trees" and "Sultan's Palace."

"The concept is still very solid," DeGraw said. "We just want to get some consistency across all the properties and make sure everybody has the same positive experience, no matter where they stay. We want to protect the brand, the image."

The Salt Lake County Treasurer's records still show unpaid property taxes for the Salt Lake City inns, 14 rooms at the Kahn Mansion on South Temple and 36 rooms in the old Salt City Jail at 460 So. 1000 East.

Bennett's staff has tried to separate him from his investment. He had a one-third share in the struggling hotels. But spokeswoman Mary Jane Collipriest noted in an e-mail last fall, "Sen. Bennett is not involved in the operations/decisions of Watermark or the Inns."

Watermark officials had blamed the Anniversary Inns' trouble filling rooms on the 9/11 terrorist attacks and a national recession. Besides delinquent property taxes, the businesses also racked up $140,000 in tax liens for late sales and tourism room taxes. Those liens have been paid.

Bennion figures he will be able to turn the themed hotels into a success. The Boise and Logan inns' room occupancy has increased 10 percent a year for two years, he says. Bennion even plans to build more inns in other states. "This is our business. We think we can do a better job," he said. "They'll do just fine."