The Company closed on the sale of the 237-room Marriott London Grosvenor Square hotel for $207.7 million, or approximately $877,000 per key. Net proceeds from the transaction total approximately $96.5 million. "By closing on the sale of the Marriott London Grosvenor Square, we are finalizing our exit of the European market, as previously committed," said Raymond L. "Rip" Gellein, Chairman and CEO of Strategic, adding, "This sale will eliminate approximately $1.0 million of annual frictional costs associated with the asset and allow us to redeploy capital into one of the highest growth assets in our portfolio." The Company also closed on the acquisition of the remaining 50 percent ownership interest in the 649-room Fairmont Scottsdale Princess resort for approximately $90.6 million. The transaction values the asset at a gross value of $307.5 million and includes the assumption of the existing $117 million mortgage financing. In the transaction the Company earned a promoted interest that was negotiated during the 2011 restructuring of the asset totaling $19.3 million, resulting in a net purchase price of approximately $288 million. "The Fairmont Scottsdale Princess is one of our highest growth assets with 60,000 square feet of new meeting space as well as improving market trends in the greater Phoenix/Scottsdale market. In fact, since the introduction of new meeting spaces and other amenities, the group's RevPAR penetration at the resort has increased nearly 17 points," said Gellein. "We are pleased to essentially match-fund this acquisition with the proceeds from the sale of the Marriott London Grosvenor Square, allowing us to execute this acquisition without requiring us to raise external capital. On a full-year basis, the two transactions are essentially neutral to our earnings per share and marginally deleverage the balance sheet," Gellein concluded. The 65-acre resort has 649 rooms and suites consisting of 72 villas / Fairmont Gold rooms and 119 casitas, 106,000 square feet of indoor meeting space including the newly completed Palomino Ballroom, 50,000 square feet of outdoor meeting space, a 44,000 square foot Well & Being wellness spa, five restaurants, and exclusive long-term booking rights to two 18-hole Championship Golf Courses.
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