for $345 million; Fairmont will Continue to Manage the Property
CHICAGO, July 5, 2006 - Strategic Hotels & Resorts, Inc. (NYSE: BEE) today announced it has signed an agreement to acquire The Fairmont Scottsdale Princess from an affiliate of Fairmont Raffles Holdings International for a purchase price of $345.0 million, and an adjacent 10-acre development parcel for $15.0 million. The acquisition, which is expected to close during the third quarter of 2006, remains subject to contractual closing conditions. Fairmont will continue to manage the property subsequent to the closing of the acquisition.
The 651-room destination resort is located on 65 acres in the high growth northern region of Scottsdale, Arizona. The hotel features 72 villas, 119 casitas, five restaurants, preferred access to the adjacent 36-hole Tournament Players Club Scottsdale golf course, 54,000 square feet of executive meetings space, and a 44,000 square foot Willow Stream spa.
The company forecasts that the property will contribute approximately $8 million of EBITDA in the last four months of 2006 and approximately $28 million in the first twelve months of ownership.
Laurence Geller, Chief Executive Officer of Strategic Hotels & Resorts, commented, "The Phoenix/Scottsdale region is one of the strongest lodging markets in the United States. The Fairmont Scottsdale Princess is located within this nexus of growth and enjoys a pre-eminent reputation within the area. In addition to the significant value added opportunities at the resort, our acquisition of the adjacent 10-acre development parcel provides an exciting consumer research driven opportunity to add a substantial number of additional keys, indoor and outdoor meeting and conference space and other high-end amenities. These opportunities will further enhance and secure the property's market position."
William Fatt, Chief Executive Officer of Fairmont Raffles Holdings International, stated, "In selecting Strategic Hotels & Resorts to acquire this hotel in an off market transaction, we are delighted to have another opportunity to work with Strategic as we consider the company an important growth oriented partner. Strategic's long-term vision, unique consumer driven approach to operations, and value added execution capabilities bring significant value to this partnership, all of which we took into account as part of the overall purchase price consideration."
About the Company
This press release contains forward-looking statements about Strategic Hotels & Resorts, Inc. (the "Company"). Except for historical information, the matters discussed in this press release are forward-looking statements subject to certain risks and uncertainties.
Strategic Hotels & Resorts, Inc.
|Also See:||Strategic Hotel Capital, Inc. Acquires the La Solana Hotel and Villas Development Site Adjacent to its Four Seasons Punta Mita Hotel, for $29.5 million / March 2006|
|The 1,195 room Westin St. Francis San Francisco Being Acquired by Strategic Hotels & Resorts, Inc. for $440.0 million / April 2006|