Strategic Hotels & Resorts Announces Acquisition Of The Remaining Interest In The JW Marriott Essex House Hotel

Strategic Hotels & Resorts, Inc. today announced that it has acquired the remaining 49 percent ownership interest in the 514-room JW Marriott Essex House hotel. The Company previously owned a 51 percent ownership position in the asset through a joint venture with certain affiliates of KSL Capital Partners, LLC (“KSL”). Pursuant to the terms of the joint venture agreements, KSL exercised a contractual put option of its equity interests in the asset and the Company will issue to certain affiliates of KSL an aggregate of 6,595,449 shares of common stock priced at $12.82 per share, or an implied valuation of $84.6 million. The transaction values the asset at a gross valuation of approximately $397.6 million, which includes $6.3 million of value for three owned condominiums, $2.2 million of cash currently held within the joint venture, and the existing $225.0 million mortgage financing.

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