Blackstone Real Estate has entered into an agreement to buy Strategic Hotels & Resorts for approximately $6 billion including debt, Commercial Property Executive reports.
Under the terms of the agreement, Blackstone will acquire all outstanding shares of Strategic’s common stock for the cash price of $14.25 per share. Blackstone will also acquire all outstanding membership units of Strategic’s subsidiary, Strategic Hotels Funding, L.L.C., for the same cash price.
This offer price is 13 per cent higher than the trading price on July 23 when it went public that Strategic, a luxury hotel REIT, was considering selling.
Based in New York, Blackstone is now the biggest real estate investor in the world. The firm has been very active over the past few months, having raised more than $14.5 billion to spend on properties around the world.
Blackstone has $92 billion in investor capital under management in its real estate portfolio, which includes hotel, office industrial and retail assets located in the United States, Latin America, Europe and Asia.
In a statement, Tyler Henritze, co-head of U.S. acquisitions for Blackstone Real Estate, said, “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.”
If the deal is approved by Strategic’s shareholders, the sale is expected to be completed by Q1 of 2016.
Strategic’s portfolio includes many of the world’s most admired hotel brands including Four Seasons, InterContinental, Marriot and Ritz-Carlton.
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