£103 million acquisition of Marriott London Grosvenor Square
-and- $68.8 million purchase of interest in InterContinental Hotel in Prague
London, August 4, 2006 – LAWFUEL – Law News Network – Paul Hastings, a premier international law firm, has advised Strategic Hotels & Resorts, Inc. (NYSE: BEE) on two significant transactions. The first is the acquisition of the Marriott London Grosvenor Square from an affiliate of Blackstone Real Estate Partners for a purchase price of £103.0 million ($192.0 million). The second is an agreement to purchase a 65.0% interest in the entity that owns the InterContinental Hotel in Prague, Czech Republic, for $68.8 million from EU-Hotel Pte Limited, an affiliate of GIC Real Estate, Inc.
Both transactions are expected to close in the third quarter of 2006, subject to customary closing conditions.
The transactions were led by Mark Eagan, Managing Partner of Paul Hastings London office, with assistance from Partners Kathryn Brown (Corporate), Emma Bucknall (Real Estate), Keith Wilson (Finance), Chris Walter (Employment) and Justin Hamer (Tax).
Marriott London Grosvenor Square
The Marriott London Grosvenor Square is a 236-room newly repositioned upscale hotel overlooking Grosvenor Square in the prestigious Mayfair neighborhood of central London. The hotel is adjacent to the American Embassy and a short walk from Hyde Park. The hotel recently completed a £12.8 million ($23.9 million) repositioning 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 contains 10,000 square feet of high-tech meeting space and two premium food and beverage outlets.
Strategic Hotels & Resorts estimate that the property will contribute between $4.8 million and $5.8 million of EBITDA in the last four months of 2006, and between $13.0 million and $15.0 million in the first twelve months of ownership.
InterContinental Hotel in Prague
Strategic Hotels & Resorts latest purchase of 65.0% interest in the entity that owns the InterContinental Hotel in Prague will bring the company’s interest in the entity that owns the property to 100%. Including the assumption of $56.5 million in debt, the company’s total investment to acquire the 65% interest is $125.3 million. The acquisition is expected to close in August 2006 and remains subject to customary closing conditions.
A 372-room luxury property located in the capital of the Czech Republic and in the historic Old Town, the InterContinental Prague comprises more than 10,000 square feet of meeting space, four food and beverage outlets and a 27-suite extended stay facility adjacent to the property.
Strategic Hotels & Resorts estimates that the property will contribute between $5.8 million and $6.8 million of EBITDA in the last five months of 2006, and between $14.5 million and $16.5 million in the first twelve months of ownership.
Paul, Hastings, Janofsky & Walker LLP, founded in 1951, is a leading international law firm with over 1,000 attorneys in 17 offices. The firm serves a diverse client base including many of the top financial institutions and Fortune 500 companies, supports clients in all of their legal needs and offers deep capabilities in Banking and Finance, Capital Markets, Corporate/M+A, Litigation and Dispute Resolution, Intellectual Property, Project Finance, Investment Management, Real Estate, Labor and Employment and Tax Advisory Services. For additional information, please visit our website at www.paulhastings.com.
About Strategic Hotels & Resorts, Inc.
Strategic Hotels & Resorts, Inc. is a real estate investment trust (REIT) which owns and asset manages high-end hotels and resorts. The company has ownership interests in 19 properties with an aggregate of 9,607 rooms. For further information, please visit the company’s website at http://www.strategichotels.com.