Hotel Capital's Redevelopment Plans for Chicago's Intercontinental
and Fairmont Hotels
|CHICAGO, Nov. 1, 2005 - Strategic Hotel Capital, Inc. (NYSE: SLH) today
announced that the company has begun redevelopment plans for its two major
Chicago hotels, the InterContinental and Fairmont.
The company has filed plans with the city of Chicago for a new 71-story tower at the InterContinental on Michigan Avenue to replace the existing North Tower, in addition to the creation of 11,000 square feet of high-end retail space in the previously underutilized Michigan Avenue frontage of the property.
The new tower is being designed by the award-winning Lucien Lagrange
Architects and will provide approximately 150 new luxury hotel suites and
310 luxury condominium units. Strategic intends to work with a leading
residential developer to develop and market the condominiums. The redevelopment
effort will include a unique pedestrian park connected to Michigan Avenue,
which will extend over Grand Avenue.
The existing 330-room historical tower, originally built in 1928 as the Medinah Athletic Club, will be significantly upgraded to compete even more effectively in the luxury hotel market. Pending approval and market conditions, it is anticipated that construction could begin in mid-to-late 2007. The InterContinental's historic tower will remain open for business during most of the redevelopment and is taking bookings for 2007.
The 692-room Fairmont Chicago was recently acquired by the company and has a premier location at the gateways to Millennium Park, recognized as one of the top urban parks in the country, and Lakeshore East, the city's most significant urban and upscale high-rise housing development. The Rockwell Group, an international award-winning design firm, is working with the company on the interior and exterior design, in addition to the development of high-end fractional ownership units and hotel condominium units.
"These two luxury urban properties managed by two of the leading global hotel operators, with the opportunities they present, are precisely the type of asset we are attracted to where we can create significant additional value by creatively enhancing the properties," said Laurence Geller, president and CEO of Strategic Hotel Capital, Inc.
"While these two great properties in the past have competed, these repositioning efforts will allow each to be unique and best in class in distinct markets, and as such will complement each other while adding substantial value to our shareholders," Geller said.
Management also announced that it will begin doing business as Strategic Hotels & Resorts, in order to better represent the company's asset intensive focus and ownership in high-end urban hotels and luxury resorts. The new corporate website can be found at http://www.strategichotels.com.
Commenting on the refined corporate identity, Geller stated, "Our acquisitions, in tandem with selective dispositions executed since going public last year, clearly demonstrate our vision to be the premier owners and asset managers of a high quality portfolio. This name change is a further step in highlighting our mission."
About the Company
This press release contains forward-looking statements about Strategic Hotel Capital, Inc. (the "Company").
Strategic Hotel Capital, Inc.
|Also See:||Strategic Hotel Capital, Inc. Reports Net Income Available to Common Shareholders of $4.0 million for Second Quarter 2005 / Hotel Statistics / August 2005|
|Strategic Hotel Capital, Inc. Agrees to Acquire an 85% Controlling Interest in the InterContinental Chicago and InterContinental Miami for Aggregate Value of $303.5 million / February 2005|