Blackstone Real Estate Partners VIII affiliates have signed a definitive agreement to acquire all outstanding shares of common stock of Strategic Hotels & Resorts for approximately $6bn.

Under the agreement, Blackstone will acquire all outstanding shares of common stock of Strategic Hotels & Resorts for $14.25 per share in cash, and all outstanding membership units of Strategic Hotels Funding, not held by the company, for $14.25 per unit in cash.

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The board of directors of Strategic Hotels unanimously approved the agreement.

"We are excited about the opportunity to acquire one of the highest quality luxury hotel portfolios in the US."

Strategic Hotels & Resorts chairman Raymond Gellein said: "Our board and management team have consistently stated that we would consider any opportunity that maximises stockholder value.

"We believe this transaction capitalises on our unique portfolio, strong asset management platform and continued operating outperformance over the past several years.

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"The board thoroughly considered various alternatives over the course of the past few years, and this all cash offer from Blackstone creates significant stockholder value with a high degree of execution certainty."

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Subject to customary closing conditions, including approval of Strategic Hotel’s stockholders, the transaction is expected to becompleted by the first quarter of 2016.

Strategic Hotels & Resorts is a real estate investment trust that owns and provides value enhancing asset management of high-end hotels and resorts in the US.

The company currently has a stake in 17 properties with an aggregate of 7,921 rooms and 847,000ft² of multi-purpose meeting and banqueting space.

Blackstone Real Estate US acquisitions co-head Tyler Henritze said: "We are excited about the opportunity to acquire one of the highest quality luxury hotel portfolios in the US.

"As long term investors in the lodging industry, we remain confident in the fundamentals of the sector despite recent market volatility."