Strategic Hotel Capital, Inc. announced it has signed an agreement to acquire the Fairmont Chicago hotel from an affiliate of The Swig Company of San Francisco…
Strategic Hotel Capital, Inc. announced it has signed an agreement to acquire the Fairmont Chicago hotel from an affiliate of The Swig Company of San Francisco for a purchase price of $154.7 million, or a price of $224,000 per room. Jones Lang LaSalle Hotels acted as agent for the seller. The acquisition, which is expected to close during the third quarter 2005, remains subject to customary closing conditions.
The AAA Four-Diamond 692-room luxury hotel is located in the center of downtown Chicago adjacent to the city`s new 24-acre Millennium Park and Lakeshore East, a $2.5 billion mixed-use project, which includes plans for the development of over 2.5 million square feet of commercial space. The 38-story tower features 62,000 square feet of function space including fourteen meeting rooms, and the highly acclaimed Aria Restaurant. Fairmont Hotels, Inc. will continue to manage the property subsequent to the acquisition.
The company expects 2005 property EBITDA contributions in the range of $4.8 million to $5.5 million for the final four months of 2005, and forecasted 2006 property EBITDA in the range of $13.5 million to $14.5 million.
Laurence Geller, chief executive officer of Strategic Hotel Capital, commented, The addition of this uniquely located high-end hotel to our portfolio exemplifies our focus on acquiring quality real estate assets in growing urban markets. We look forward to capitalizing on the strengthening Chicago market given strong convention bookings for 2006, and the property`s proximity to Millennium Park. Utilizing our solid asset management skills, we are enthusiastic about opportunistically enhancing this property, and working in tandem with Fairmont Hotels and Resorts, one of our preferred luxury operators to implement these changes.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
