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Strategic Snaps Up Two Hotels for $317M

LONDON-Strategic Hotels & Resorts takes two prime European hotels: the Marriott London Grosvenor Square and InterContinental Hotel in Prague.

By Anita Howarth | Updated on August 03, 2006

LONDON-Strategic Hotels & Resorts is letting the ink dry on two major lodging acquisitions. The firm has signed an agreement to buy the Marriott London Grosvenor Square from a subsidiary of Blackstone Real Estate Partners for euro 150.99 million ($192.0 million).

The hotel is a 236-room newly repositioned upscale hotel overlooking Grosvenor Square in the upmarket Mayfair area of central London. The hotel is adjacent to the American Embassy and a short walk from Hyde Park. The previous owners recently completed a euro 18.8-million ($23.9-million) repositioning of the lodging asset involving the renovation of guestrooms and lobby areas, expansion of meeting space and the creation of Maze restaurant, leased to celebrity chef Gordon Ramsay. The hotel also comprises 10,000 sf of high-tech meeting space and two premium food and beverage outlets.

In a separate deal, Strategic is also buying a 65% interest in the vehicle that owns the InterContinental Hotel in Prague, Czech Republic, for euro 53.8 million ($68.9 million). When the assumption of euro 44.2 million ($56.5 million) in debt is taken into account, the company’s total investment to acquire the interest is euro 97.9 million ($125.4 million). The deal gives Strategic full ownership of the vehicle that owns the property.

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