CHICAGO, Feb. 28, 2014 /PRNewswire/ -- Strategic Hotels
& Resorts, Inc. (NYSE: BEE) today announced that the Company
has closed on the sale of the Four Seasons Punta Mita Resort and
the adjacent La Solana land parcel for $200.0 million. The Company expects after
tax proceeds to total approximately $180.0
million which it intends to use to retire its 8.50% Series A
Preferred Stock and reduce indebtedness under its revolving credit
facility.
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 and Europe. The Company currently has ownership
interests in 17 properties with an aggregate of 8,099 rooms and
847,000 square feet of meeting space. For a list of current
properties and for further information, please visit the Company's
website at http://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. These forward-looking statements include statements
regarding the Company's expected use of proceeds from the
disposition of the Four Seasons Punta Mita Resort. 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: a change in the proposed use of
proceeds from the disposition of the Four Seasons Punta Mita
Resort; the effects of economic conditions and disruptions in
financial markets 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 obtain,
refinance or extend maturing debt; the Company's ability to
maintain compliance with covenants contained in its 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 its 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, 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; 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 its 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 Form 10-K and subsequent Form 10-Qs. 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 the Company undertakes 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.