The non-executive chairman of Microsoft, Bill Gates has purchased more then 5% ownership in the struggling Strategic Hotels & Resorts Inc.
Crain's Chicago Business writes: "Cascade Investment LLC, Mr. Gates' investment firm, has bought 3.9 million shares in the real estate investment trust (REIT), according to a Securities and Exchange Commission filing Friday. A Cascade executive was not immediately available for comment, but the firm said in the filing that it bought the shares as a passive investment."
Commercial Property News reported: "The investment marks Gates's second foray into the hospitality sector as of late; last year he teamed up with Saudi Prince Alwaleed bin Talal in a $3.4 billion deal to privatize Four Seasons Hotels Inc. Strategic Hotels has struggled as of late, with the REITs stock plummeting more than 50 percent this year in the wake of the economic slowdown that has bogged down the hotel market."
Strategic is the owner of the Fairmont Chicago and InterContinental on Michigan Avenue and is based in Chicago. Prince Alwaleed bin Talal is the main shareholder of Fairmont Hotels & Resorts.
With a 17.7% share, Morgan Stanley remains the largest shareholder of the hotel company.
~ Important Notice ~ Articles appearing on 4Hoteliers contain copyright material. They are meant for your personal use and may not be reproduced or redistributed. While 4Hoteliers makes every effort to ensure accuracy, we can not be held responsible for the content nor the views expressed, which may not necessarily be those of either the original author or 4Hoteliers or its agents.
