CLEVELAND Boykin Lodging Company announced today that it has increased its ownership stake in the 421-room Executive Plaza Hotel in downtown Chicago.
Boykin Lodging Company has owned an 18.75% interest in the hotel since August 1999 through its joint venture with AEW. Boykin has now acquired an additional 25% interest in the hotel from a private investor for $6.3 million, increasing Boykins ownership of the hotel to 43.75%.
“The Executive Plaza Hotel posted the highest revenue increase in our portfolio in the second quarter,” said Robert W. Boykin, chairman, president and CEO. The hotel is on track to begin a complete renovation of all guestrooms, meeting rooms, and food and beverage facilities next year. Once completed, the hotels guestrooms will be the quality of a four-star hotel, said the company
“We estimate the internal rate of return from our additional investment in this property to be in excess of 30%. This increase in ownership is part of our strategy to increase shareholder value over the long term,” concluded Mr. Boykin.
Boykin Lodging Company currently owns 33 hotels containing a total of 9,236 rooms located in nineteen states. (9/21/00)