Strategic Hotels & Resorts, along with its joint-venture partner, signed an agreement with affiliates of Walton Street Capital and JMA Ventures to sell a 100 percent interest in the 417-room Hyatt Regency La Jolla for $118 million.
The Company currently owns a 53.5 percent interest in the asset. At closing, the joint venture will retire $89.2 million of debt secured by the hotel, which is currently consolidated on the Company's balance sheet. The transaction, which is subject to certain closing conditions, is expected to close in the second quarter of 2015.
"The sale of the Hyatt Regency La Jolla is consistent with our disciplined capital allocation strategy to divest of non-core assets and deleverage the company's balance sheet," said Raymond L. "Rip" Gellein, chairman and CEO of Strategic Hotels & Resorts, Inc.