Boykin Lodging Company (NYSE: BOY), a multitenant hotel real estate investment trust, has completed its acquisition of the 208-suite Pink Shell Beach Resort in Ft. Myers Beach, Florida.
“The Pink Shell is the fourth resort we have purchased in the last twelve months,” said Robert W. Boykin, chairman, president and chief executive officer of Boykin Lodging Company. “We acquired this fine asset at a substantial discount to replacement cost, yet under terms profitable to all involved. It will be accretive to our earnings right away.”
The Pink Shell Beach Resort occupies 12 acres on Estero Island across the bay from Captiva and Sanibel Islands. The resort boasts 1,500 feet of beachfront and a bay-front marina. Boykin also acquired development rights to add approximately 5,000 square feet of meeting space and over 30 additional units.
“We have begun programming the development of the additional space to maximize our yield on this investment” Mr. Boykin said.
The Pink Shell’s current operator, South Seas Resorts, is being acquired by CapStar Hotel Company and will continue to lease and manage the property.
Under its agreement with South Seas, Boykin paid $21,250,000 for the resort. $2 million of the purchase price is being funded by South Seas Resorts. Boykin’s net price for a 100 percent equity interest in the resort was $19,250,000.
“We work with tenant-managers whose financial interests are aligned with ours, and we are pleased to have this opportunity to strengthen our alliance with CapStar,” Mr. Boykin added.