|Strategic signs agreement to sell the Four Seasons Punta Mita.|
Monday, 23rd December 2013
Source : Strategic Hotels & Resorts
Strategic Hotels & Resorts has signed an agreement with Bill Gates' Cascade Investment to sell the Four Seasons Punta Mita resort and the adjacent La Solana land parcel for gross consideration of $200 million, or approximately $1.1 million per key. Adjusting for the allocation of the land value, the sale represents approximately $980,000 per key.
The sale includes 173 guest rooms and suites and a variety of resort restaurants and amenities. The sale also includes a 48 acre developable site directly adjacent to the resort, referred to as La Solana. The transaction, which is subject to certain closing conditions and regulatory approval, is expected to close in the first quarter of 2014.
"The sale of the Four Seasons Punta Mita is a meaningful opportunity to realize the tremendous value that Strategic Hotels has created in this resort since acquiring it in 2001," said Raymond L. "Rip" Gellein, Chairman and Chief Executive Officer of Strategic Hotels & Resorts, Inc.
"Consistent with our stated strategy, the proceeds from the transaction will be used to de-leverage the company's balance sheet. As we move forward, we will continue to be opportunistic buyers and sellers of assets to further strengthen our balance sheet, enhance our overall portfolio and position the company for sustained growth."
Cascade Investment is the private investment arm for Bill Gates. It is a shareholder of Strategic Hotels, owning approximately 6.4% of the Company's common equity.
About Strategic Hotels & Resorts
Strategic Hotels & Resorts, Inc. is a real estate investment trust (REIT) which owns and provides value-enhancing asset management of high-end hotels and resorts in the United States, Mexico and Europe. The Company currently has ownership interests in 18 properties with an aggregate of 8,271 rooms and 851,600 square feet of multi-purpose meeting and banqueting space.