Strategic Hotels & Resorts, Inc. (NYSE: BEE) today announced that the company has closed on its disposition of the InterContinental Prague to an investment group led by an affiliate of Westmont Hospitality for a total consideration of approximately euro 108.0 million.
The consideration represents the assignment of the property's third party debt and the interest rate swap liability related to the third party indebtedness, estimated to be approximately euro 6.4 million as of November 30, 2010. In addition, as part of the transaction, approximately euro 2.0 million of restricted cash related to the property was released to the company.
Chief Executive Officer Laurence Geller remarked, "We are pleased to announce the closing of this disposition as it represents another step in the company's execution of a disciplined and strategic European exit strategy. This disposition also further supports our continued focus on reducing corporate expenses and eliminates future capital investment required to maintain this property."
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