Breaking Travel News

Strategic Closes Acquisition of Half Moon Bay Resort

Strategic Hotel Capital, Inc.
today announced that it has successfully completed the acquisition of The
Ritz-Carlton Half Moon Bay, a luxury destination resort overlooking the
Pacific Ocean south of San Francisco, California, from a client advised by
Morgan Stanley Real Estate. The $124.4 million purchase price was funded
by a $75 million mortgage loan provided by an affiliate of Deutsche Bank,
in addition to borrowings under the company’s revolving line of credit.
The resort was the first to be built on the Northern California coast in
over a decade, and was developed by The Athens Group. It features 261
guestrooms, a 16,000 square foot spa and 17,000 square feet of indoor
meeting space.

Commenting on the closing, Laurence Geller, president and chief executive
officer of Strategic Hotel Capital, Inc. said, “This is a key acquisition
for our portfolio of high-end hotels and we are enthusiastic about being
able to capitalize on this solid opportunity so quickly following our
successful initial public offering. Not only does The Ritz-Carlton Half
Moon Bay afford us the growth potential that is instrumental to our
strategy, but the location with its high barriers to entry strengthens our
positioning going forward. Our reputation as strong asset managers, in
addition to the relationships we have developed over the years within the
industry, will serve to keep our pipeline active.”