Strategic Hotels & Resorts, Inc. announced the acquisition of two Four Seasons hotels in exchange for 15.2 million shares of common stock at $6.25 per share valued at $95 million to close the deal according to a CoStar report. Strategic purchased the Four Seasons Jackson Hole and Four Seasons Silicon Valley from The Woodbridge Company Limited. Strategic was advised by Deutsche Bank Securities Inc. and Avington Financial Limited on the transaction.
In addition, Chicago-based Strategic separately will sell another eight million shares of its stock to Woodbridge for $50 million as reported by the Wall Street Journal. Because the two Four Seasons carry no debt of their own, adding them will lower Strategic's overall debt ratio. The company expects the Woodbridge deal to to close by March. It "is an amazing endorsement for the company," Strategic Chief Executive Officer Laurence Geller said. "And we get more stability in the stock" with 21% of it being held by two big investors.
Commenting on the transaction, W. Geoffrey Beattie, President of Woodbridge, said, "Strategic Hotels is the ideal acquirer for both of these properties given their deep knowledge of these assets, their proven investment expertise and longstanding relationship with the Four Seasons brand. We see an excellent growth opportunity in Strategic Hotels' long-term vision and near-term strategic plan."
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