Strategic Hotels & Resorts, Inc. Responds to Public Letter from Orange Capital
CHICAGO, Feb. 19, 2013 /PRNewswire/ -- The Board of Directors of Strategic Hotels & Resorts, Inc. (NYSE: BEE) provides the following response to a press release issued today by Orange Capital.
The Board of Directors of Strategic Hotels & Resorts acknowledges receipt of a letter dated February 1, 2013, from Orange Capital, a shareholder who only recently acquired shares in the Company. The Board carefully reviewed the letter in its entirety and strongly disagrees with certain assumptions and conclusions outlined in the communication. While we are disappointed Orange Capital released its letter publicly to advance its short-term trading interest, we remain focused on maximizing the longer-term interests of our shareholders.
We believe in open, transparent communications with our shareholders and regularly communicate our Company's strategy, investment merits, risks and opportunities. Strategic Hotels is acknowledged to have among the highest quality portfolios in the industry and remains focused on delivering on its well-articulated operating and balance sheet strategy. We remain open to strategic opportunities to enhance our already pristine portfolio and will always act to enhance long-term shareholder value.
In addition, the letter from Orange Capital does not constitute an offer to acquire the Company.
About Strategic Hotels & Resorts, Inc.
Strategic Hotels & Resorts, Inc. is a real estate investment trust (REIT) which owns and provides value-enhancing asset management of high-end hotels and resorts in the United States, Mexico and Europe. The Company currently has ownership interests in 18 properties with an aggregate of 8,271 rooms and 851,600 square feet of multi-purpose meeting and banqueting space. For a list of current properties and for further information, please visit http://www.strategichotels.com/.
This press release contains forward-looking statements about Strategic Hotels & Resorts, Inc. (the "Company"). Except for historical information, the matters discussed in this press release are forward-looking statements subject to certain risks and uncertainties. Actual results could differ materially from the Company's projections. Factors that may contribute to these differences include, but are not limited to the following: ability to obtain, refinance or restructure debt or comply with covenants contained in our debt facilities; volatility in equity or debt markets; availability of capital; rising interest rates and operating costs; rising insurance premiums; cash available for capital expenditures; competition; demand for hotel rooms in our current and proposed market areas; economic conditions generally and in the real estate market specifically, including deterioration of economic conditions and the extent of its effect on business and leisure travel and the lodging industry; ability to dispose of existing properties in a manner consistent with our disposition strategy; delays in construction and development; demand for hotel condominiums; the failure of closing conditions to be satisfied; risks related to natural disasters; the effect of threats of terrorism and increased security precautions on travel patterns and hotel bookings; the outbreak of hostilities and international political instability; legislative or regulatory changes, including changes to laws governing the taxation of REITs; and changes in generally accepted accounting principles, policies and guidelines applicable to REITs.
Additional risks are discussed in the Company's filings with the Securities and Exchange Commission, including those appearing under the heading "Item 1A. Risk Factors" in the Company's most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. The forward-looking statements are made as of the date of this press release, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE Strategic Hotels & Resorts, Inc.