Blackstone Group LP agreed to buy Strategic Hotels & Resorts Inc. for about $3.93 billion (at an enterprise value of $6 billion including debt), in a deal expected to close in quarter one of 2016.
Blackstone revealed that it will acquire all outstanding shares of Strategic’s common stock for $14.25 per share in cash, and the firm will buy all outstanding units of subsidiary, Strategic Hotels Funding LLC.
Strategic owns 18 luxury hotels in resort and urban settings under several brands, including Four Seasons and Fairmont. Blackstone is the world’s largest private-equity firm and has made headlines for purchasing a number of luxury hotels that include the JW Marriott and the Ritz Carlton in Orlando, and the JW Marriott Phoenix Desert Ridge in Arizona, all part of a $1.25 billion deal with Paulson & Co.
Bloomberg Business reported that the recent acquisitions by Blackstone are a sign that the company has faith in the continued growth of the luxury hotel market. The website added that Blackstone also currently holds the most shares in Hilton Worldwide Holdings Inc. and LaQuinta Holdings Inc.
