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Blackstone to Acquire Strategic Hotels for $3.93 Billion

  • Strategic owns luxury hotels including Manhattan's Essex House
  • Transaction is valued at about $6 billion including debt
Updated on

Blackstone Group LP agreed to buy Strategic Hotels & Resorts Inc. for about $3.93 billion, expanding its lodging holdings to include luxury properties such as Manhattan’s Essex House and the Ritz-Carlton in Half Moon Bay, California.

Blackstone offered $14.25 a share in cash for Strategic, about 13 percent more than the unaffected intraday trading price on July 23, when Bloomberg reported on a potential transaction for the Chicago-based real estate investment trust. The firm also will buy the outstanding units of a subsidiary, Strategic Hotels Funding LLC, not held by the company, according to a statement Tuesday.