Strategic Hotels To Buy 49% Stake In InterContinental Chicago
Strategic Hotels & Resorts Inc. (BEE) agreed to acquire the 49% interest it doesnt already own in the InterContinental Chicago from Singapores sovereign-wealth fund in a deal that values the hotel at $288.3 million.
Government of Singapore Investment Corp., known as GIC, will receive about 10.8 million Strategic Hotels shares at an issuance price of $6.50 each and $11.8 million of cash. The deal, expected to close in the current quarter, will leave GIC with about 5.8% of the real-estate investment trusts expected 185.6 million Strategic Hotels shares outstanding.
GIC in May 2007 acquired a 49% interest in the REITs InterContinental Chicago and Hyatt Regency La Jolla hotels in a deal valued at about $450 million.
Strategic Hotels earlier this month reported that its first-quarter loss narrowed as revenue improved by 13% due to higher occupancy and average daily rates.
Shares closed Friday at $6.59 and were inactive premarket. The stock is up 25% this year.
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