Strategic Hotels & Resorts Announces Plan to Acquire the Remaining 49% Interest in the InterContinental Chicago for 10.8M Shares and $11.8M Cash

Strategic Hotels & Resorts, Inc. BEE today announced that the Company has signed a letter agreement to acquire the 49 percent interest in the InterContinental Chicago hotel currently owned by its joint venture partner, an affiliate of The Government of Singapore Investment Corporation, in exchange for approximately 10.8 million shares of common stock at an agreed upon issuance price of $6.50 per share and $11.8 million of cash consideration plus closing adjustments for working capital. The transaction values the hotel at $288.3 million, or $364,000 per key, and implies a 14.1 times multiple on forecasted 2011 EBITDA and an 11.0 times multiple on peak (2007) EBITDA.