The story’s a few days old, but it should be mentioned that Strategic Hotels & Resorts has agreed to sell the InterContinental Prague for €110.6m to what’s described as an “affiliate” of Westmont Hospitality. That works out to €297k per room, in case you were wondering.
Strategic Hotels & Resorts is an American real estate investment trust, which means you get to find out most of the nitty-gritty detail without having to dig any further than the press release.
The total consideration represents the outstanding amount of the property’s third-party debt and the current interest rate swap liability related to the third-party indebtedness, which is estimated to be approximately euro 9.0 million as of August 31. In addition, approximately euro 2.0 million of restricted cash related to the property will be released to the company. The sale, subject to certain closing contingencies, is scheduled to close in the fourth quarter. The 372-room property was forecasted to contribute approximately euro 6.1 million in EBITDA for the full year 2010, representing a sales multiple of 18.1 times and a capitalization rate of 4.8% on NOI.