Boykin REIT currently owns interests in 21 hotels containing a total of 5,871 rooms located in 13 states. The Hotel REIT's revenues from continuing operations for the quarter ended March 31 totaled $53.1 million, compared with revenues of $53.3 million for the same period last year. As of March 31, Boykin had $32.5 million of cash and cash equivalents, including restricted cash, and total consolidated debt of $142.3 million. Consolidated debt includes a $7.8 million-term loan related to a joint venture in which the company owns a 50% interest.
According to an SEC filing, each common share of Boykin will be converted into the right to receive $11 per share in cash. A portion that amount will be paid in the form of a dividend prior to closing. Each limited partner in Boykin Hotel Properties, the operating partnership of the company, will also be entitled to receive $11 per unit in cash less the amount of pre-closing dividends.
Immediately prior to the closing, Boykin's interests in the Pink Shell Beach Resort and Spa and the Banana Bay Resort & Marina--Marathon will be sold to entities controlled by Robert W. Boykin, chairman and CEO for approximately $14.6 million. Boykin says the deal "will enable shareholders to receive the benefit of our efforts to increase shareholder value."
On May 9, Boykin agreed to sell its Radisson Suite Beach Resort--Marco Island for $58 million. The proposed purchaser is obligated to make a second deposit of $3 million on May 25. Braveheart has the right to terminate the merger if that doesn't happen, however, the merger will not terminate if Boykin is able to enter into an alternate agreement or arrangement for the site, no later than July 7.
Boykin's board has unanimously approved the merger; Boykin abstained. The closing is scheduled to occur during the third quarter. UBS Investment Bank acted as financial advisor to the Board of Directors of the Boykin and Houlihan Lokey advised the Special Committee and the Board of Directors. RBC Capital Markets acted as financial advisor to Westmont.
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