Strategic Hotels To Buy Luxury Hotel For $140 Mln

(RTTNews) - Strategic Hotels & Resorts Inc (BEE), said Tuesday it has agreed to acquire the Four Seasons Resort Scottsdale at Troon North from an affiliate of Walton Street Capital L.L.C. for $140 million. The property includes 13.8-acres of developable land zoned for an additional 88 hotels keys and potential incremental residential usage. Management has valued the land parcels at $6 million.

The acquisition is expected to close during the fourth quarter of 2014.

The 210-guestroom, AAA Five Diamond destination resort is located on about 40-acres in the northern region of Scottsdale, Arizona. Four Seasons will continue to manage the property subsequent to the closing of the acquisition.

The company forecasts the property will contribute about $10 million of EBITDA and $8.0 million of NOI in 2015. The purchase price, net of the allocated land value, represents a 13.4 times multiple on forecasted 2015 EBITDA and a 6.0 percent capitalization rate on forecasted 2015 NOI.