In a definitive agreement between Strategic Hotels & Resorts, Inc. and Blackstone Real Estate Partners VIII L.P. affiliates, Blackstone will acquire all outstanding shares of common stock of Chicago-based Strategic Hotels & Resorts, Inc. for a total transaction value approximated at $6 billion.
Raymond Gellein, chairman and chief executive officer of Strategic Hotels & Resorts, Inc., said the company believes this transaction capitalizes on its unique portfolio, strong asset management platform and continued operating out-performance over the past several years.
“The board thoroughly considered various alternatives over the course of the past few years, and this all cash offer from Blackstone creates significant stockholder value with a high degree of execution certainty,” he added.
Tyler Henritze, co-head of US acquisitions for Blackstone Real Estate, said the firm is 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,” he added.
The transaction is expected to be completed by the first quarter of 2016.
