CHICAGO, Dec. 30, 2014 /PRNewswire/ -- Strategic
Hotels & Resorts, Inc. (NYSE: BEE) and its joint venture
partner today announced that the joint venture has closed a
$225.0 million limited recourse loan
secured by the JW Marriott Essex House hotel. The new
financing replaces the $185.8 million
financing previously encumbering the property. Under the terms of
the loan agreement, the loan bears interest at a floating rate of
LIBOR plus 295 basis points and has a three-year initial term with
two, one-year extension options available to the venture upon
satisfying certain financial and other conditions. The loan
will be interest only and save the venture $4.8 million in annual principal amortization
payments which were scheduled to begin in 2015 under the previous
agreement. Upon closing the transaction, $25.0 million of cash held by the previous lender
in a restricted cash account was released to the venture.
Metropolitan Life Insurance Company originated the
financing.
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 8,075 rooms and
860,000 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
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 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 or Germany 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; 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.
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SOURCE Strategic Hotels & Resorts, Inc.