Two lesser-known names in the lodging sector announced buyout agreements Monday, showing that private real estate investors still have a big appetite for the sector.
agreed to be bought for $11 a share by Braveheart Holdings, an affiliate of Westmont Hospitality Group and Caisse de depot et placement du Quebec. The price represents a 20% premium over the hotel REIT's closing price Friday of $9.20. The total transaction is valued at about $416 million, including debt. Shares of Boykin recently were up 16% to $10.70
said it will be bought out by JER Partners for $2.97 a share, a 30% premium over its closing price of $2.29 Friday. The stock shot up 25% to $2.86 in afternoon trading. JER is the investment arm of the J.E. Robert Cos., which has been investing in private real estate transactions for 15 years. The deal, which includes the assumption of $190 million of debt, is valued at $371 million.
The hotel sector
continues to rebound from the doldrums that came after the terrorist attacks in 2001. Over the past year, several larger lodging companies have been bought. The Blackstone Group purchased La Quinta and Meristar, while Colony Capital and a Saudi Prince purchased Fairmont Hotels.
Recently, Barry Vinocur, editor of REIT Zone Publications, has written that
is the next major hotel owner being eyed for a buyout.