Sept. 08--New York investment firm Blackstone is purchasing Chicago-based Strategic Hotels and Resorts in a $6 billion deal, Strategic announced Tuesday morning.
Affiliates of Blackstone Real Estate Partners have agreed to pay $14.25 per share in cash for Strategic, which owns 18 high-end hotels, including Chicago's Intercontinental and Fairmont, and had been looking for a buyer.
"Our board and management team have consistently stated that we would consider any opportunity that maximizes stockholder value," Strategic's Chairman and CEO Raymond L. "Rip" Gellein said in a news release. "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."
Tyler Henritze, co-head of U.S. acquisitions for Blackstone Real Estate, added, "long term investors in the lodging industry, we remain confident in the fundamentals of the sector despite recent market volatility."
The price reflects a premium of 13 percent of the price on July 23, when news of the possible purchase first broke. It represents a 4.8 percent premium over Friday's closing price of $13.60 a share. The firms said they expect to conclude the deal by the first quarter of 2016.
kjanssen@tribpub.com
