Strategic Hotels & Resorts to Purchase Rest of Ownership Interest in Hotel DelTuesday, May 27, 2014
Strategic Hotels & Resorts Inc. has signed an agreement to acquire the remaining 63.6 percent ownership interest in the 757-room Hotel del Coronado for $210 million, the company announced.
Strategic Hotels (NYSE: BEE)currently owns a 36.4 percent position in the asset through a joint venture with certain affiliates of Blackstone Real Estate Partners VI LP, according to Strategic Hotels.
The transaction values the asset at a gross value of about $787 million, net of roughly $18 million of cash held at the property and within the joint venture, and includes the assumption of the $475 million mortgage, Strategic Hotels said.
Strategic Hotels has had an ownership interest in Hotel del Coronado since 2006 and served as asset manager throughout that period, giving it comprehensive knowledge of the resort, said Raymond Gellein, the company’s chairman and CEO.
The transaction, which is subject to certain conditions, is expected to close in second quarter 2014.
“We are thrilled to be acquiring the remaining equity position in the Hotel del Coronado and to have the opportunity to fully own this truly iconic hotel in the very attractive San Diego market,” Gellein said.
Strategic Hotels & Resorts is a real estate investment trust, which owns and manages high-end hotels and resorts in the U.S. and Europe.