CHICAGO, April 28, 2015 /PRNewswire/ -- Strategic Hotels
& Resorts, Inc. (NYSE: BEE), along with its joint-venture
partner, today announced it has signed an agreement with affiliates
of Walton Street Capital, L.L.C. and JMA Ventures LLC to sell a 100
percent interest in the 417-room Hyatt Regency La Jolla for
$118.0 million. The Company currently
owns a 53.5 percent interest in the asset. At closing, the
joint venture will retire $89.2
million of debt secured by the hotel, which is currently
consolidated on the Company's balance sheet. The transaction,
which is subject to certain closing conditions, is expected to
close in the second quarter of 2015. "The sale of the Hyatt
Regency La Jolla is consistent with our disciplined capital
allocation strategy to divest of non-core assets and deleverage the
company's balance sheet," said Raymond L. "Rip" Gellein, Chairman
and Chief Executive Officer of Strategic Hotels & Resorts,
Inc.
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. The Company currently has
ownership interests in 18 properties with an aggregate of 8,325
rooms and 875,000 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.
About Walton Street Capital, L.L.C.
Walton Street Capital, L.L.C. is a private equity real estate
firm based in Chicago, Illinois
that focuses on value-added and opportunistic real estate related
investments. Since its founding in 1994, affiliates of Walton
Street Capital have received total equity commitments of over
$8.4 billion from public and
corporate pension plans, foreign institutions, insurance companies
and banks, endowments and foundations, trusts, and high net worth
individuals. The firm employs over 110 professionals through
its offices in Chicago,
Mexico City and Mumbai.
About JMA Ventures LLC
JMA Ventures LLC is a full service San
Francisco based investment and real estate development
company with in-house acquisition, development, finance, leasing,
marketing and management capabilities. The company has compiled a
20-year track record of successful projects, both residential and
commercial, combining investment and development expertise
currently serving as general partner and master developer for in
excess of $1.5 billion of real estate
related investments across the western United States. For more information, please
visit www.jmaventuresllc.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 likelihood of closing conditions to be satisfied,
the Company's future financial results, positive trends in
the lodging industry and the Company's continued focus on improving
profitability. 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 disruption 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, 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 SEC, 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.