CHICAGO-Strategic Hotels & Resorts Inc. plans to buyout its joint venture partner on the InterContinental Chicago. The local REIT will acquire the 49% interest currently owned by the Government of Singapore Investment Corporation.

Strategic Hotels will fund the acquisition with roughly 10.8 million shares of common stock at an agreed upon issuance price of $6.50 per share and $11.8 million of cash consideration plus closing adjustments for working capital. The transaction values the hotel at $288.3 million, or $364,000 per key, according to a statement from the REIT.

The 792-room InterContinental Chicago is located in the Magnificent Mile shopping district. The luxury hotel consists of two towers – a 42-story historic tower and a 26-story main tower – and features 42,000 square feet of function space including six historic ballrooms and 30 meeting rooms. It also features an ENO wine tasting room and a Starbucks franchise on Michigan Avenue. A new Michael Jordan-themed steakhouse is scheduled to open later this year in the hotel.