Boykin Lodging Company (NYSE: BOY) has acquired a 50% interest in a 219-room full-service hotel located in Lyndhurst, New Jersey, a part of the Meadowlands area and approximately eight miles from midtown Manhattan.
Boykin`s newly formed joint venture with an affiliate of Concord Hospitality Enterprises (Concord), a privately owned hotel investment and management company based in Cleveland, Ohio, acquired the hotel for $17.5 million from Accor Hotels. The hotel is currently operating under the Novotel brand. The joint venture plans to reposition the hotel by re-branding it to a Courtyard by Marriott after a $6 million renovation, expected to be completed in the first quarter of 2002. The room count will also be increased by eight rooms. Concord will manage the hotel.
“This acquisition fits our highly selective investment criteria,” commented Richard C. Conti, President and Chief Operating Officer. “The conversion to the Marriott brand will greatly increase the revenues of this property. The Meadowlands and New York City areas have strong business demand generators and fit with our long-term targeted investment strategy. Concord`s proven operational skills and local business presence make them the ideal operator.”
The joint venture`s total investment in the hotel is expected to be approximately $24 million, or approximately $106,000 per room. RockBridge Capital, Inc. provided acquisition and renovation debt financing in the amount of $17.25 million. Boykin will account for its approximately $3.5 million investment in the joint venture under the equity method of accounting.
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 33 hotels containing a total of 9,249 rooms located in nineteen states, and operating under such internationally known brands as Doubletree, Marriott, Hilton and Radisson, among others. For more information about Boykin Lodging Company, visit the company`s web site at www.boykinlodging.com.