Blackstone acquires Strategic Hotels for $4bn
Private equity group Blackstone’s real estate arm will acquire luxury hotel chain Strategic Hotels&Resorts in an all cash transaction, including debt, for $6bn.
Commenting on the deal, Tyler Henritze, co-head of US acquisitions for Blackstone Real Estate, added, "we are excited about the opportunity to acquire one of the highest quality luxury hotel portfolios in the U.S. As long term investors in the lodging industry, we remain confident in the fundamentals of the sector despite recent market volatility."
Blackstone Real Estate Partners VIII L.P. will pay $14.25 a share, which represents a 13% premium over the unaffected intra-day price on 23 July.
The possibility of a transaction was first reported on by the media that day and on 17 August Strategic Hotels&Resorts confirmed it had retained JP Morgan as its board began to explore possible strategic alternatives, including a possible sale.
The takeover target is a real estate investment trust which owns and manages 17 properties, comprising high-end hotels and resorts, across the US, including the Ritz-Carlton Half Moon Bay resort in California or the Intercontinental Hotel in Miami.
As of 15:46 shares of Strategic Hotels&Resorts were rising by 3.53% to $14.07.