Blackstone to Acquire Strategic Hotels and Resorts
Strategic Hotels and Resorts, which operates a variety of properties under Fairmont, Four Seasons, InterContinental, and Ritz-Carlton brands, among others, announced that affiliates of Blackstone Real Estate Partners VIII LP, the real estate fund of Blackstone Group, will acquire the company including subsidiary Strategic Hotels Funding in a deal valued at $6 billion.
Strategic Hotels’ portfolio includes the JW Marriott Essex House, Ritz-Carlton Half Moon Bay, the Ritz-Carlton Laguna Niguel, the InterContinental Chicago, and Four Seasons hotels in Austin and Washington, D.C.
“The board thoroughly considered various alternatives over the course of the past few years, and this all-cash offer from Blackstone creates significant stockholder value,” said Raymond L. Gellein, the company’s CEO, in a statement.
The deal is expected to close in the first quarter of 2016. It is subject to customary closing conditions including approval by Strategic Hotel’s shareholders. The company’s board of directors has approved the merger, which is not subject to a financing contingency.
Strategic Hotels & Resorts is a real estate investment trust or REIT which has ownership interests in 17 properties, largely in the United States.
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