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Strategic Hotels Trades to Blackstone

CHICAGO—Valued at approximately $6 billion including the assumption of debt, the acquisition will mark the latest in a long line of lodging industry investments by Blackstone.

By Paul Bubny | Updated on September 08, 2015

CHICAGO—Strategic Hotels & Resorts Inc., which announced three weeks ago that it was exploring a possible sale, has agreed to be acquired by the Blackstone Group. Blackstone will acquire all outstanding shares of common stock of the hotel REIT—which trades as BEE—for $14.25 per share in cash, and all of the outstanding membership units of its Strategic Hotels Funding L.L.C subsidiary for $14.25 per unit in cash. All told, the deal is valued at approximately $6 billion including the assumption of debt.

“We believe this transaction capitalizes on our unique portfolio, strong asset management platform and continued operating outperformance over the past several years,” says BEE’s chairman and CEO, Raymond L. Gellein. “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.”

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