to Become Dormitory at Portland State University
|CLEVELAND, March 3, 2004 - Boykin Lodging Company
(NYSE: BOY), 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.
Certain matters discussed within this press release may contain "forward- looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 regarding the Company, including those statements regarding the Company's and management's beliefs and expectations.
Shereen P. Jones
Executive Vice President,
Chief Financial and Investment Officer
Boykin Lodging Company
|Also See:||Two Hilton-Owned Doubletrees Up for Sale in Portland, Oregon / October 2003|
|Boykin Lodging Completes Acquisition of Ten DoubleTree Hotels / May 1998|