Boykin Lodging Company , a hotel real estate investment trust (REIT), today announced that the City of Portland, through the Portland Development Commission (the “PDC”), has acquired the Company’s Doubletree Portland Downtown Hotel through its power of eminent domain. The Company has been notified that the PDC intends to transfer the property to Portland State University for redevelopment and use as student housing as well as for other academic, retail and conference purposes.
The Company received $19.7 million for the property. Concurrently, the Company sold the furniture, fixtures and equipment of the hotel to Portland State University for approximately $2.3 million. The Company stated that pursuant to the terms of its $130.0 million term loan, which was secured by the hotel, approximately $16.9 million of the net proceeds from the condemnation were used to reduce the outstanding loan balance. Net proceeds from the sale of the furniture, fixtures and equipment were deposited into the loan reserves. The remainder of the net proceeds will be used for general corporate purposes. The Company anticipates that the transactions will result in a gain of approximately $1.5 million
Boykin Lodging Company is a real estate investment trust that focuses on the ownership of full-service, upscale commercial and resort hotels. The Company currently owns 28 hotels containing a total of 8,195 rooms located in 18 states, and operating under such internationally known brands as Doubletree, Marriott, Hilton, Radisson, Embassy Suites, and Courtyard by Marriott among others. For more information about Boykin Lodging Company, visit the Company’s website at http://www.boykinlodging.com.