Strategic Hotels & Resorts Inc. was purchased by Blackstone Group on Monday for $6 billion, following years of turnaround efforts for the luxury hotel REIT. Strategic Hotels & Resorts announced Tuesday that Blackstone Group’s Real Estate Partners VIII LP will acquire the company for $14.25 per share in cash and buy outstanding membership units of its subsidiary Strategic Hotels Funding LLC for $14.25 per unit in cash. Including debt, the value of the transaction for the Chicago-based target totals about $6 billion. Shares of Strategic Hotels & Resorts inched up 3.4% Tuesday morning to $14.07, giving the REIT a $3.88 billion market capitalization. Shares of the target are up about 6.3% year-to-date. The resort operator said in August that it had retained JPMorgan Chase & Co. to explore strategic options, including a sale. The announcement came just a week after 9.8% shareholder Bill Gates revealed his interest in potentially acquiring Strategic Hotels through his investment vehicle Cascade Investment LLC.
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