Blackstone will become the general partner of the new joint venture with a 60 percent ownership interest. Strategic Hotels, which will continue as asset manager of the hotel, and KSL Resorts, the hotel operator, are limited partners with approximately 34.3 percent and 5.7 percent ownership stakes, respectively.

Laurence Geller, Chief Executive Officer of Strategic Hotels commented, "We are very pleased by this outcome, as it provides the opportunity for us to achieve attractive returns on our new investment, significantly reduces the hotel's indebtedness and maintains our ownership in this iconic asset. The Hotel del Coronado is an integral part of our portfolio and we welcome Blackstone into the partnership. Given the attractive growth characteristics of both the hotel and the San Diego market, we expect to further enhance the hotel's operations and overall value as it returns to, and potentially surpasses, previous peak performance."

The Hotel del Coronado is one of the crown jewels of San Diego, serving thousands of luxury travelers, corporations and other organizations every month. Located in one of the most desirable travel destinations for individuals and groups alike, the Hotel del Coronado has been serving luxury travelers since 1888.