Strategic Hotels & Resorts Announces Acquisition of the Four Seasons Washington, D.C. Hotel
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Strategic Hotels & Resorts Announces Acquisition of the Four Seasons Washington, D.C. Hotel
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Category: Asia Pacific
This is a press release selected by our editorial committee and published online for free on 2006-01-24
Strategic Hotel Capital, Inc. (NYSE: SLH), which operates as Strategic Hotels & Resorts, today announced it has signed an agreement to acquire the Four Seasons Washington, D.C. hotel from an entity controlled by the Louis Dreyfus Property Group for a purchase price of $168.9 million. The acquisition, which is expected to close during the first quarter 2006, remains subject to customary closing conditions.
The 211-room luxury hotel is located in Georgetown, just 12 blocks from the White House and received the highly-coveted 2005 Mobil Five-Star award, the only Washington, D.C. area hotel to receive such recognition. The hotel recently reopened after a just completed $27.0 million renovation that reduced the number of rooms from 257 to a more desirable mix of 211 luxury guestrooms. The hotel features 160 rooms, 51 luxury suites, 12,500 square feet of meeting space, 24,000 square feet of retail space, underground parking, and a 12,500 square foot Four Seasons fitness club and spa. Four Seasons will continue to manage the property subsequent to the acquisition.
The company forecasts a period of ramp up after its reopening during the next 12 months and estimates the property will contribute between $9.5 million and $10.5 million of EBITDA in the last ten months of 2006 and between $10.4 million and $11.4 million in the first twelve months of ownership.
Laurence Geller, chief executive officer of Strategic Hotels & Resorts, commented, "The Washington, D.C. market has significant growth yet to come. As it stands, the Four Seasons leads the market and enjoys a tremendous reputation. We believe our physical improvements to the food and beverage and lobby areas will position this hotel to reap the benefits of the market growth while the hotel continues to lead the market for the foreseeable future."
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