CHICAGO, Nov. 18, 2014 /PRNewswire/
-- Strategic Hotels & Resorts, Inc. (NYSE: BEE),
today announced that the Company has signed an agreement to acquire
the Four Seasons Resort Scottsdale at Troon North from an affiliate
of Walton Street Capital, L.L.C. for $140.0
million, which includes 13.8-acres of developable land zoned
for an additional 88 hotels keys and potential incremental
residential usage. Management has valued the land parcels at
$6.0 million. The acquisition,
which is expected to close during the fourth quarter of 2014,
remains subject to customary due diligence, closing conditions and
working capital adjustments.
The 210-guestroom, AAA Five Diamond destination resort is
located on approximately 40-acres in the northern region of
Scottsdale, Arizona. The
hotel features 22 suites, 24,000 square feet of indoor meeting
space, a 14-treatment room spa, four food and beverage outlets and
contractual access to 36 holes of championship golf at the adjacent
Troon North Golf Club. Four Seasons will continue to manage
the property subsequent to the closing of the
acquisition.
The Company forecasts the property will contribute approximately
$10.0 million of EBITDA and
$8.0 million of NOI in 2015.
The purchase price, net of the allocated land value, represents a
13.4 times multiple on forecasted 2015 EBITDA and a 6.0 percent
capitalization rate on forecasted 2015 NOI.
"We are thrilled to be acquiring the Four Seasons at Troon
North, a preeminent luxury resort located in the exclusive Troon
North development in Scottsdale,
Arizona, and expanding our presence in this market
characterized by high demand and constrained supply," commented
Raymond L. "Rip" Gellein, Chairman and Chief Executive Officer of
Strategic Hotels & Resorts, Inc. "The resort is poised to
continue to benefit from the positive Scottsdale market dynamics and includes
significant value-enhancing opportunities to hotel operations and
potentially through the future addition of hotel keys and amenities
on two vacant and entitled adjacent parcels of land. We have
long enjoyed a successful relationship with the Four Seasons, one
of the world's premiere luxury lodging brands, and we are excited
to begin this new chapter with the Four Seasons at Troon
North."
About the Company
Strategic Hotels & Resorts, Inc. is a real estate investment
trust (REIT) which owns and provides value-enhancing asset
management of high-end hotels and resorts in the United States and Europe. The Company currently has ownership
interests in 16 properties with an aggregate of 7,865 rooms and
835,000 square feet of meeting space. For a list of current
properties and for further information, please visit the Company's
website at http://www.strategichotels.com.
About Walton Street Capital
Walton Street Capital, L.L.C. ("Walton
Street") is a private equity real estate investment firm
based in Chicago. Since its founding in 1994, affiliates of
Walton Street have received total equity commitments of over
$8.3 billion from public and
corporate pension plans, foreign institutions, insurance companies
and banks, endowments and foundations, trusts, and high net worth
individuals. Through its affiliates, Walton Street has invested and/or committed to
invest $7.5 billion of equity in more
than 275 separate transactions in U.S. and international real
estate, including the development and acquisition of office, hotel,
retail, industrial, multi-family, for-sale residential, senior and
student housing, gaming and other assets through both individual,
portfolio and company-level transactions with a gross asset cost of
over $21 billion.
This press release contains forward-looking statements about
Strategic Hotels & Resorts, Inc. (the "Company"). Except for
historical information, the matters discussed in this press release
are forward-looking statements subject to certain risks and
uncertainties. These forward-looking statements include statements
regarding the Company's future financial results, positive trends
in the lodging industry and the Company's continued focus on
improving profitability. Actual results could differ materially
from the Company's projections. Factors that may contribute to
these differences include, but are not limited to the following:
the effects of economic conditions and disruption in financial
markets upon business and leisure travel and the hotel markets in
which the Company invests; the Company's liquidity and refinancing
demands; the Company's ability to obtain, refinance or extend
maturing debt; the Company's ability to maintain compliance with
covenants contained in its debt facilities; stagnation or
deterioration in economic and market conditions, particularly
impacting business and leisure travel spending in the markets where
the Company's hotels operate and in which the Company invests,
including luxury and upper upscale product; general volatility of
the capital markets and the market price of the Company's shares of
common stock; availability of capital; the Company's ability to
dispose of properties in a manner consistent with its investment
strategy and liquidity needs; hostilities and security concerns,
including future terrorist attacks, or the apprehension of
hostilities, in each case that affect travel within or to
the United States, Germany or other countries where the Company
invests; difficulties in identifying properties to acquire and
completing acquisitions; the Company's failure to maintain
effective internal control over financial reporting and disclosure
controls and procedures; risks related to natural disasters;
increases in interest rates and operating costs, including
insurance premiums and real property taxes; contagious disease
outbreaks; delays and cost-overruns in construction and
development; marketing challenges associated with entering new
lines of business or pursuing new business strategies; the
Company's failure to maintain its status as a REIT; changes in the
competitive environment in the Company's industry and the markets
where the Company invests; changes in real estate and zoning laws
or regulations; legislative or regulatory changes, including
changes to laws governing the taxation of REITs; changes in
generally accepted accounting principles, policies and guidelines;
and litigation, judgments or settlements.
Additional risks are discussed in the Company's filings with
the SEC, including those appearing under the heading "Item 1A. Risk
Factors" in the Company's most recent Form 10-K and subsequent Form
10-Qs. Although the Company believes the expectations reflected in
such forward-looking statements are based on reasonable
assumptions, it can give no assurance that its expectations will be
attained. The forward-looking statements are made as of the date of
this press release, and the Company undertakes no obligation to
publicly update or revise any forward-looking statement, whether as
a result of new information, future events or otherwise, except as
required by law.
COMPANY CONTACTS:
Diane
Morefield
EVP & Chief Financial Officer
Strategic Hotels & Resorts
(312) 658-5740
Jonathan Stanner
SVP, Capital Markets, Acquisitions & Treasurer
Strategic Hotels & Resorts
(312) 658-5746
SOURCE Strategic Hotels & Resorts, Inc.