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Strategic Hotels Snags 85% Stake in Chicago, Miami Assets

CHICAGO-InterContinental Hotels will retain a 15% stake in the deal with Strategic Hotel Capital, Inc., which places the value of the 807-room InterContinental Chicago and InterContinental Miami at $303.5 million.

By Mark Ruda | Updated on February 28, 2005

CHICAGO-Strategic Hotel Capital, Inc. has agreed to pay $263.5 million for an 85% stake in two InterContinental hotels–one here and the other in Miami. The properties include the 807-room InterContinental Chicago at 505 N. Michigan Ave. and 641-room InterContinental Miami at 100 Chopin Plaza.

The deal with InterContinental Hotels, which will retain a 15% share in both properties, places the value of the 1,448 rooms at $303.5 million or $209,600 per key. The deal structure calls for Strategic Hotel Capital to receive an 8% return on its investment first. After InterContinental Hotels takes an 8% return, the partners would share any remaining profits 85-15. The deal is expected to close in April.

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