Blackstone Group has agreed to acquire Strategic Hotels & Resorts for $3.52 billion, as the private-equity firm adds to its large hospitality portfolio.

Strategic owns 17 luxury hotels totaling more than 7,900 rooms. The portfolio includes five Four Seasons, two Ritz-Carlton, two Fairmont and two InterContinental hotels, plus the JW Marriott Essex House in New York and the Hotel del Coronado near San Diego.

Blackstone and Strategic said Tuesday that Blackstone will pay $14.25 a share for Strategic’s 275 million outstanding shares. The price is 4.8% more than Strategic’s closing price Friday (markets were closed Monday because of Labor Day) and 13% more than the share price prior to a July 23 media report on a potential buyout.

Blackstone took Hilton Worldwide private in 2007 for about $26 billion, then took the hotel giant public in December 2013 in a $2.35 billion initial public offering. Hilton last year cut its Hilton stake by 10 percentage points to 66% in a secondary offering that raised about $2.03 billion.

Also, Blackstone last year acquired the 2,995-room Cosmopolitan of Las Vegas from Deutsche Bank for $1.73 billion.

It acquired the 1,100-unit Motel 6 chain from Accor in 2012 for $1.9 billion, and last year raised $650.3 million taking La Quinta Holdings public.

Blackstone, along with Centerbridge Partners and Paulson & Co., raised $565 million taking Extended Stay America public in 2013, three years after buying the company for about $3.9 billion. Last year, the three private equity companies kept the proceeds from a secondary offering for Extended Stay America of 21 million shares at $21.75 per share.

Comments

From Our Partners


From Our Partners

2021 Ireland Luxury Marketplace
Ireland Luxury Marketplace: New Webinar Series
Register Now
Los Cabos dining district
Los Cabos' 23400 District
Read More
2021 WOL Webinar
The World of Luxury for 2022
Register Now

JDS Travel News JDS Viewpoints JDS Africa/MI