Strategic Hotels & Resorts Signs Agreement to Sell the Renaissance Paris Hotel Le Parc Trocadero (France)
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Strategic Hotels & Resorts Signs Agreement to Sell the Renaissance Paris Hotel Le Parc Trocadero (France)
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Category: Europe - France - Industry economy
- Group or hotel buyout
This is a press release selected by our editorial committee and published online for free on 2009-12-17
Strategic Hotels & Resorts, Inc. (NYSE:BEE), today announced that the company has signed a purchase and sale agreement for the sale of the Renaissance Paris Hotel Le Parc Trocadero to an investment group led by an affiliate of Westmont Hospitality for a gross price of euro 35.5 million ($51.5 million), or approximately euro 305,000 per room. The sale, subject to certain closing contingencies, is scheduled to close within 45 days. The 116-room property was forecasted to contribute approximately euro 2.1 million in EBITDA for the full year 2009, representing a sales multiple of 16.6 times and a capitalization rate of 4.8% on NOI. The company also remains entitled to receive approximately euro 1.4 million in the first quarter of 2010 related to the 2009 performance guarantee with Marriott International.
Chief Executive Officer Laurence Geller remarked, "We are pleased to announce the sale of this asset at an attractive price to our shareholders in an extremely difficult transaction environment. The sale, at a property where we were contractually bound by Marriott International to undertake a full renovation, substantially supplements our corporate liquidity, reduces corporate overhead related to our European operations, and is in line with the company's disciplined, strategic disposition strategy."
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