CHICAGO, Sept. 10, 2013 /PRNewswire/ -- Strategic
Hotels & Resorts, Inc. (NYSE: BEE) today announced that it has
closed on an amendment to the cross-collateralized mortgage
agreements secured by the Westin St. Francis and Fairmont Chicago
hotels, which eliminates future principal amortization payments
subject to meeting certain financial and other
requirements. Combined, the amendment will eliminate
$9.3 million in previously scheduled
principal amortization payments over the next twelve months and
$37.2 million in scheduled payments
over the remaining term of the two agreements. Prior to the
amendment, the loans were subject to a 20-year principal
amortization schedule. Both mortgage agreements will continue
to bear interest at a fixed rate of 6.09 percent and are set to
mature in June of 2017. Metropolitan Life Insurance Company
is the lender for both agreements.
About the Company
Strategic Hotels & Resorts, Inc. is a real estate investment
trust (REIT) which owns and provides value-enhancing asset
management of high-end hotels and resorts in the United States, Mexico and Europe. The Company currently has ownership
interests in 18 properties with an aggregate of 8,271 rooms and
851,600 square feet of multi-purpose meeting and banqueting space.
For a list of current properties and for further information,
please visit the Company's website at www.strategichotels.com.
This press release contains forward-looking statements about
Strategic Hotels & Resorts, Inc. (the "Company"). Except for
historical information, the matters discussed in this press release
are forward-looking statements subject to certain risks and
uncertainties. Actual results could differ materially from the
Company's projections. Factors that may contribute to these
differences include, but are not limited to the following: ability
to obtain, refinance or restructure debt or comply with covenants
contained in the Company's debt facilities; volatility in equity or
debt markets; availability of capital; rising interest rates and
operating costs; rising insurance premiums; cash available for
capital expenditures; competition; demand for hotel rooms in the
Company's current and proposed market areas; economic conditions
generally and in the real estate market specifically, including
deterioration of economic conditions and the extent of its effect
on business and leisure travel and the lodging industry; ability to
dispose of existing properties in a manner consistent with the
Company's disposition strategy; delays in construction and
development; demand for hotel condominiums; the failure of closing
conditions to be satisfied; risks related to natural disasters; the
effect of threats of terrorism and increased security precautions
on travel patterns and hotel bookings; the outbreak of hostilities
and international political instability; legislative or regulatory
changes, including changes to laws governing the taxation of REITs;
and changes in generally accepted accounting principles, policies
and guidelines applicable to REITs.
Additional risks are discussed in the Company's filings with
the Securities and Exchange Commission, including those appearing
under the heading "Item 1A. Risk Factors" in the Company's most
recent annual report on Form 10-K and subsequent quarterly reports
on Form 10-Q. Although the Company believes the expectations
reflected in such forward-looking statements are based on
reasonable assumptions, it can give no assurance that its
expectations will be attained. The forward-looking statements are
made as of the date of this press release, and we undertake no
obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise, except as required by law.
SOURCE Strategic Hotels & Resorts, Inc.