Strategic Hotels & Resorts, Inc., a real estate investment trust (REIT) that owns and provides value-enhancing asset management of high-end hotels and resorts in the United States and Europe, has announced that it is looking at a potential sale of the company, as it explores possible strategic alternatives, according to the press release issued by Strategic Hotel.
The company also said that it hired J.P. Morgan as a financial advisor.
The Wall Street Journal added that the announcement came less than a week after Cascade Investment, Inc., an investment firm owned by Bill Gates, disclosed that it has acquired 1.7 million shares of the REIT.
Cascade Investment now has a 9.8 percent stake in Strategic Hotels.
The Wall Street Journal added that Cascade Investment has shown an interest in a potential takeover of Strategic Hotels.
Cascade Investment plans to approach Strategic Hotels about it or about other deals, following news reports of the company exploring potential transactions.
Bloomberg reported last month that Strategic Hotels is exploring a potential sale of the company and has hired a bank to help find a buyer.
The report also added that EBay, Inc's founder Pierre Omidyar is among those interested in acquiring Strategic Hotels.
Raymond L. "Rip Gellein, chairman and CEO of Strategic Hotels, said in the press release that the company is "committed to acting in the best interests" of their shareholders.
"We are confident in our strategic plan and the value we have created for our shareholders," he said. "At the same time, we are always open to ways in which we can further maximize shareholder value."
In addition, the report mentioned that the announcement has sent the company's shares up 4.5 percent in premarket trading.
Strategic Hotels shares were trading at $14.55 before the bell.
The company said in the press release that there is no assurance that they will "enter into any transaction at this time or in the future."
