Strategic Hotels & Resorts, Inc. Announces Closing Of A $475 Million,
Five-Year Loan Agreement For The Hotel del Coronado
CHICAGO, March 12, 2013
CHICAGO, March 12, 2013 /PRNewswire/ -- Strategic Hotels & Resorts, Inc.
(NYSE: BEE), along with certain affiliates of Blackstone Real Estate Partners
VI L.P., its joint-venture partner, today announced that it has closed on a
$475 million loan secured by the Hotel del Coronado. This new financing
replaces the $425 million financing previously encumbering the property.
Under the terms of the agreement, the loan will bear interest at LIBOR plus
365 basis points and has an initial two-year term with three, one-year
extension options available to the venture upon satisfying certain financial
and other conditions. The loan will be interest only and not subject to
amortization. JPMorgan Chase Bank, N.A. and Deutsche Bank Securities Inc.
originated the financing.
About the Company
Strategic Hotels & Resorts, Inc. is a real estate investment trust (REIT)
which owns and provides value-enhancing asset management of high-end hotels
and resorts in the United States, Mexico and Europe. The Company currently has
ownership interests in 18 properties with an aggregate of 8,271 rooms and
851,600 square feet of multi-purpose meeting and banqueting space. For a list
of current properties and for further information, please visit the Company's
website at www.strategichotels.com.
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. Actual results could differ materially
from the Company's projections. Factors that may contribute to these
differences include, but are not limited to the following: ability to obtain,
refinance or restructure debt or comply with covenants contained in our debt
facilities; volatility in equity or debt markets; availability of capital;
rising interest rates and operating costs; rising insurance premiums; cash
available for capital expenditures; competition; demand for hotel rooms in our
current and proposed market areas; economic conditions generally and in the
real estate market specifically, including deterioration of economic
conditions and the extent of its effect on business and leisure travel and the
lodging industry; ability to dispose of existing properties in a manner
consistent with our disposition strategy; delays in construction and
development; demand for hotel condominiums; the failure of closing conditions
to be satisfied; risks related to natural disasters; the effect of threats of
terrorism and increased security precautions on travel patterns and hotel
bookings; the outbreak of hostilities and international political instability;
legislative or regulatory changes, including changes to laws governing the
taxation of REITs; and changes in generally accepted accounting principles,
policies and guidelines applicable to REITs.
Additional risks are discussed in the Company's filings with the Securities
and Exchange Commission, including those appearing under the heading "Item 1A.
Risk Factors" in the Company's most recent annual report on Form 10-K and
subsequent quarterly reports on Form 10-Q. Although the Company believes the
expectations reflected in such forward-looking statements are based on
reasonable assumptions, it can give no assurance that its expectations will be
attained. The forward-looking statements are made as of the date of this press
release, and we undertake no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information, future
events or otherwise, except as required by law.
SOURCE Strategic Hotels & Resorts, Inc.
Contact: Diane Morefield, EVP, Chief Financial Officer, Strategic Hotels &
Resorts, Inc., +1-312-658-5740; Jonathan Stanner, VP, Capital Markets &
Treasurer, Strategic Hotels & Resorts, Inc., +1-312-658-5746
Press spacebar to pause and continue. Press esc to stop.