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HomeHotels & LodgingStrategic Hotels & Resorts, Inc. announces closing of a five-year, $225m. loan secured by The JW Marriott Essex House Hotel
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Strategic Hotels & Resorts, Inc. announces closing of a five-year, $225m. loan secured by The JW Marriott Essex House Hotel

The loan will be interest only and save the venture $4.8 million in annual principal amortization payments which were scheduled to begin in 2015 under the previous agreement.

CHICAGO – Strategic Hotels & Resorts, Inc. and its joint venture partner announced that the joint venture has closed a $225.0 million limited recourse loan secured by the JW Marriott Essex House hotel. The new financing replaces the $185.8 million financing previously encumbering the property. Under the terms of the loan agreement, the loan bears interest at a floating rate of LIBOR plus 295 basis points and has a three-year initial term with two, one-year extension options available to the venture upon satisfying certain financial and other conditions.

The loan will be interest only and save the venture $4.8 million in annual principal amortization payments which were scheduled to begin in 2015 under the previous agreement. Upon closing the transaction, $25.0 million of cash held by the previous lender in a restricted cash account was released to the venture. Metropolitan Life Insurance Company originated the financing.

Strategic Hotels & Resorts, Inc. is a real estate investment trust (REIT) which owns and provides value enhancing asset management of high-end hotels and resorts in the United States and Europe. The company currently has ownership interests in 17 properties with an aggregate of 8,075 rooms and 860,000 square feet of multi-purpose meeting and banqueting space.

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