|CHICAGO, July 26, 2004 - Strategic Hotel Capital,
Inc. (NYSE: SLH) today announced that it has signed an agreement to acquire
The Ritz-Carlton Half Moon Bay, a luxury destination resort overlooking
the Pacific Ocean south of San Francisco, California, from a client advised
by Morgan Stanley Real Estate. The resort features 261 guestrooms
-- the majority of which have ocean or coastal views -- a 16,000 square
foot spa and 17,000 square feet of indoor meeting space with additional
outdoor meeting areas. Other highlighted features include: Navio,
a fine dining restaurant; The Conservatory, offering light fare and beverages;
two fitness centers; an indoor pool; six lighted tennis courts and access
to two adjacent 18-hole championship golf courses.
This is the first resort to have been built on the Northern California coast in over a decade, having taken over 20 years to bring to completion. The hotel opened in 2001, with the first full year of operations in 2002. The resort was developed by The Athens Group, a leading developer of luxury resort properties.
The purchase price of $124.4 million is expected to be funded by the combination of a mortgage loan, the company's line of credit and cash. The resort's Earnings Before Interest Expense, Taxes, Depreciation and Amortization (EBITDA) is forecasted to be approximately $8.1 million in 2004 and $10.4 million in 2005. The purchase is subject to customary closing conditions and is expected to close in the third quarter.
Key features of this acquisition include the following:
Arne Sorenson, executive vice president and chief financial officer of Marriott International, said, "We are delighted that Strategic Hotel Capital, Inc. will be adding a world class Ritz-Carlton property to its portfolio. We look forward to continuing to grow our relationship with Strategic Hotel Capital."
About the Company
Strategic Hotel Capital, Inc. is an industry-leading
owner and asset manager of high-end hotels and resorts. We own a quality
portfolio of upper upscale and luxury hotels and resorts in desirable North
American and European locations. Our portfolio is currently made up of
14 properties totaling 5,931 rooms. Our properties are geographically diverse
and include large convention hotels, business hotels and resorts, which
are managed by internationally known hotel management companies.
This press release contains forward-looking statements about Strategic Hotel Capital, Inc.
Strategic Hotel Capital, Inc.
Web Site: http://www.shci.com
|Also See:||Paul Ratchford Named General Manager of The Ritz-Carlton, Half Moon Bay / June 2003|
|Laurence Geller's Provocative Outlook on the Hotel Industry - Strategic Hotel Capital CEO's Speech at New York University's Eighth Annual Stephen W. Brener Distinguished Lecturer Series / December 2001|