Strategic Hotels Agrees To Be Bought By Blackstone In $6 Billion Deal, Including Debt

Strategic Hotels & Resorts Inc. shares rose 4% in premarket trade Tuesday, after the company said it has agreed to be acquired by private-equity firm Blackstone Group LP in a deal valued at about $6 billion, including debt. Blackstone will pay $14.25 per share for a premium of about 13% over the intraday trading price on July 23, when a media report of the potential deal first surfaced. On Aug. 17, the real estate investment trust confirmed that it had hired J.P. Morgan to help it explore its strategic options. The deal is expected to close in the first quarter of 2016. Strategic Hotels owns 17 properties in the U.S. with a total of 7,921 rooms and 847,000 square feet of meeting and banqueting space. Shares have gained 2% in the year through Friday, while the S&P 500 has fallen 6.7%.