CHICAGO, Feb. 22, 2013 /PRNewswire/ -- Strategic Hotels & Resorts, Inc. (NYSE: BEE) was awarded with the prestigious 'Single Asset Transaction of the Year' award at this year's Americas Lodging Investment Summit (ALIS). The award recognized the purchase of the Essex House Hotel in New York City, which closed in September 2012.
With its enviable Central Park South location, storied history and high-end offerings, the Essex House presented a compelling acquisition opportunity for Strategic Hotels. In addition to the favorable deal terms (which equated to approximately $685,000 per unit), the transaction marked Strategic Hotel's return to the New York City market, expanded its presence in the northeast corridor and brought the first JW Marriott-branded hotel to Manhattan. The property was immediately re-branded as the JW Marriott Essex House New York upon closing.
"The acquisition of the Essex House was a terrific achievement and was accomplished thanks to our outstanding team of hotel professionals as well as our valued partners at Marriott," said Raymond L. "Rip" Gellein, Jr., Chairman of the Board and Chief Executive Officer of Strategic Hotels & Resorts, Inc. "As this recognition acknowledges, we are opportunistic investors who are committed to making compelling, prudent, strategic investments that enhance our world-class portfolio and create shareholder value."
The iconic hotel was acquired from the Dubai Investment Group for a gross purchase price of approximately $362.3 million. The purchase price included 509 hotel rooms, nine condominium units and significant hotel-level cash reserves. An affiliate of Strategic Hotels previously owned the hotel, having solid it to the Dubai Investment Group for approximately $440.00 million in 2005. At that time the property included 605 hotel rooms and 10 condominium units.The Americas Lodging Investment Summit (ALIS) awards recognize executives and companies responsible for the most influential hotel industry deals in 2012. Nominees are considered for the awards based on outstanding business performance in various industry sectors and determined by ALIS sponsors and delegates.