Blackstone Sells Hotel For $440 Million

Strategic Hotels & Resorts Inc. will reportedly pay $440 million to buy San Francisco's Westin St. Francis Hotel. The seller is an affiliate of private equity firm Blackstone Group.

The 1,195-room Westin St. Francis is located on Union Square in downtown San Francisco. According to an April 6 Reuters report, Westin will continue to manage the hotel for Strategic Hotels & Resorts. Westin is an affiliate of Starwood Hotels & Resorts Worldwide.

Strategic expects the hotel to contribute between $19 million and $21 million to EBITDA (earnings before interest, taxes, depreciation and amortization) during the last seven months of 2006. EBITDA should increase between $32 million and $34 million in the first 12 months of ownership.

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