Strategic Hotels' Stock Surges After Company Explores Alternatives, Including Sale

By Tomi KilgoreMarketWatch Pulse

Strategic Hotels & Resorts Inc.'s stock surged 4.5% in premarket trade Monday, after the real estate investment trust said it was exploring strategic alternatives, including a possible sale of the company. The company said it can't be sure it will enter into any transactions, and does not plan to make further public announcements until the exploration of alternatives is complete. "We are confident in our strategic plan and the value we have created for our shareholders," said Chief Executive Raymond Gellein. "At the same time, we are always open to ways in which we can further maximize shareholder value." The stock has climbed 5.2% year to date through Friday, compared with a 1.6% gain in the S&P 500.

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