CHICAGO, Dec. 12, 2013 /PRNewswire/ -- Strategic Hotels
& Resorts, Inc. (NYSE: BEE) announced today that the Company
has signed an agreement with Cascade Investment, L.L.C. to sell the
Four Seasons Punta Mita resort and the adjacent La Solana land
parcel for gross consideration of $200
million, or approximately $1.1
million per key. Adjusting for the allocation of the
land value, the sale represents approximately $980,000 per key.
The sale includes 173 guest rooms and suites and a variety of
resort restaurants and amenities. The sale also includes a 48 acre
developable site directly adjacent to the resort, referred to as La
Solana. The transaction, which is subject to certain closing
conditions and regulatory approval, is expected to close in the
first quarter of 2014.
"The sale of the Four Seasons Punta Mita is a meaningful
opportunity to realize the tremendous value that Strategic Hotels
has created in this resort since acquiring it in 2001," said
Raymond L. "Rip" Gellein, Chairman and Chief Executive Officer of
Strategic Hotels & Resorts, Inc. "Consistent with our
stated strategy, the proceeds from the transaction will be used to
de-leverage the company's balance sheet. As we move forward,
we will continue to be opportunistic buyers and sellers of assets
to further strengthen our balance sheet, enhance our overall
portfolio and position the company for sustained growth."
Cascade Investment is the private investment arm for
Bill Gates. It is a
shareholder of Strategic Hotels, owning approximately 6.4% of the
Company's common equity.
About Strategic Hotels & Resorts
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: the
default of the Company or the default of the acquirer, pursuant to
the purchase agreement; the failure of closing conditions to be
satisfied; the failure to achieve all required regulatory
approvals; the effects of the recent global economic recession upon
business and leisure travel and the hotel markets in which the
Company invests; the Company's liquidity and refinancing demands;
the Company's ability to maintain compliance with covenants
contained in the Company's debt facilities; stagnation or further
deterioration in economic and market conditions, particularly
impacting business and leisure travel spending in the markets where
the Company's hotels operate and in which the Company invests,
including luxury and upper upscale product; general volatility of
the capital markets and the market price of the Company's shares of
common stock; availability of capital; the Company's ability to
dispose of properties in a manner consistent with the Company's
investment strategy and liquidity needs; hostilities and security
concerns, including future terrorist attacks, or the apprehension
of hostilities, in each case that affect travel within or to
the United States, Mexico, Germany, England or other countries where the Company
invests; difficulties in identifying properties to acquire and
completing acquisitions; the Company's failure to maintain
effective internal control over financial reporting and disclosure
controls and procedures; risks related to natural disasters;
increases in interest rates and operating costs, including
insurance premiums and real property taxes; contagious disease
outbreaks, such as the H1N1 virus outbreak; delays and
cost-overruns in construction and development; marketing challenges
associated with entering new lines of business or pursuing new
business strategies; the Company's failure to maintain the
Company's status as a REIT; changes in the competitive environment
in the Company's industry and the markets where the Company
invests; changes in real estate and zoning laws or regulations;
legislative or regulatory changes, including changes to laws
governing the taxation of REITs; changes in generally accepted
accounting principles, policies and guidelines; and litigation,
judgments or settlements.
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.
SOURCE Strategic Hotels & Resorts