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Boykin Lodging Facing Shareholder Revolt

CLEVELAND-The hotel and restaurant employees union, a big shareholder in Boykin, is attacking management for failing to boost the trust's sagging share price. The union is demanding management consider a sale or liquidation of the trust.

By Robert Carr | Updated on November 02, 2000

CLEVELAND-The Hotel Employees and Restaurant Employees International Union is demanding that Boykin Lodging Co., based here, consider a sale or liquidation of the company and revise it’s plans to boost stockholder value.

Paul O’Neil, chief financial officer and treasurer of Boykin, says the company could not comment on the union’s grievances because HERE is locked in negotiations with one of the Boykin’s tenants.”It’s not appropriate for me to comment on their tactics,” O’Neil says.He did say that the company did not require shareholder approval to adopt the poison pill.

The union bought Boykin shares at $24 in 1998, when the hotel real estate investment trust went public, says union spokesman Andy Lee. As of Oct. 30, the stock price was hovering around $9 per share, with the company cutting the dividend in the last few months by 22%.”Many of the holders don’t feel happy about the stock price,” Lee says. “When compared with the average hospitality REIT, Boykin’s share price is significantly worse.”

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