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JV Acquires Boykin Lodging for $416M

NEW YORK CITY-A Canadian joint venture is acquiring the Cleveland-based Boykin Lodging Co. for $416 million, including the assumption of debt. Each company common share will be converted to $11 per per share in cash.

By Barbara Jarvie | Updated on May 22, 2006

NEW YORK CITY-A joint venture of Braveheart Holdings LP and Cadim Inc. has entered into an agreement to acquire Boykin Lodging Co. in a cash transaction aggregating approximately $416 million. That figure does include the assumption of debt. Braveheart is an affiliate of Westmont Hospitality Group. Cadim is a division of Caisse de dépôt et placement du Québec.

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.

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