Boykin Lodging Company (NYSE: BOY), a multitenant hotel real estate investment trust, announced that its shareholders, in a special meeting today, approved the issuance of 3,110,048 of its common shares in connection with its merger agreement to acquire Red Lion Inns, L.P., (Amex: RED) and Red Lion’s ten full service DoubleTree Hotels. The ten acquired hotels would continue to be managed by DoubleTree.
Red Lion’s unitholders will also vote on the merger agreement in a separate special meeting today.
“We are pleased with today’s shareholder votes on the merger agreement,” said Robert W. Boykin, chairman, president and chief executive officer of Boykin Lodging Company. “We are acquiring these ten full-service DoubleTree hotels at a substantial discount to replacement cost, yet under terms profitable to everyone involved.”
Under the terms of the agreement, Boykin will pay approximately $35.3 million in cash in addition to the 3.1 million new common shares for all of the outstanding partnership interests in Red Lion, L.P., and its subsidiary partnership in a taxable transaction.
Boykin Lodging Company is a multitenant real estate investment trust which focuses on the acquisition of full-service, upscale commercial and resort hotels. With the acquisition of the ten DoubleTree hotels from Red Lion Inns, L.P., Boykin Lodging would own 30 full-service commercial and resort hotels containing a total of 8,406 rooms located in California, Colorado, Florida, Idaho, Indiana, Maryland, Minnesota, Missouri, Nebraska, New York, North Carolina, Tennessee, Ohio, Oregon, and Washington.