CLEVELAND— Boykin Lodging Company, a REIT, has acquired leasehold interests for 28 of its hotels from two of its operators, Boykin Management Company (BMC) and Meristar Hotels & Resorts. The structural change was made under the REIT Modernization Act, which became effective January 1, 2001. The company acquired leasehold interests in 25 of the hotels by issuing BMC 1.4 million limited partnership units of Boykins operating partnership, and assuming from BMC $1.6 million of liabilities in excess of assets related to one of the lessee entities. The company entered into management agreements for BMC to operate 15 of the 25 hotels, and took over BMCs contract with Hilton Hotels Corp. for Hiltons operation of the remaining 10 Doubletree branded hotels. The company also restructured its relationship with Meristar by acquiring or canceling Meristars leasehold interests for 3 hotels and signing management agreements with Meristar to operate those hotels. Following the transaction, 31 of Boykin Lodgings 33 hotel properties now have management contracts under the TRS structure. The company expects to record a $15 million, primarily non-cash charge, to earnings in the fourth quarter of 2001 relating to the acquisition and termination of the leases.
Previous ArticleStarwood Hotels To Sell CIGA Properties
Next Article TESA Acquires Senercomm To Provide Energy Solutions