Strategic Hotels & Resorts Signs Purchase and Sale Agreement for Disposition of the Four Seasons Mexico City
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Strategic Hotels & Resorts Signs Purchase and Sale Agreement for Disposition of the Four Seasons Mexico City
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Category: North America & West Indies / Carribean islands - Mexico - Industry economy -
Group or hotel buyout
This is a press release selected by our editorial committee and published online for free on 2009-10-06
Strategic Hotels & Resorts, Inc. (NYSE: BEE), today announced that the company has signed a purchase and sale agreement for the sale of the Four Seasons Mexico City to Meridia Capital for a gross price of $54.0 million, or $225,000 per room. The sale, subject to certain closing contingencies, is scheduled to close in the fourth quarter and the company expects to record a book gain of approximately $4.5 million. The 240-room property was forecasted to contribute approximately $3.9 million in EBITDA for the full year 2009, representing a sales multiple of 13.8 times and a capitalization rate of 6.2% on NOI.
Chief Executive Officer, Laurence Geller remarked, "We are very pleased to announce this sale at an attractive price in an extremely difficult environment. This transaction, in a market with a significant amount of directly competitive new or under-construction supply, demonstrates the value in our unique portfolio of properties in general, and especially so in Mexico City given the impact of the events surrounding the onset of the H1N1 virus. The sale is in line with the company's disciplined asset disposition strategy and provides an important source of liquidity for unexpected events as we continue to manage through the current challenging economic environment."
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