Microsoft Corp. founder Bill Gates has acquired a 5.2% stake in Strategic Hotels & Resorts Inc., the Chicago-based owner of the Fairmont Chicago and InterContinental on Michigan Avenue.
Cascade Investment LLC, Mr. Gates’ investment firm, has bought 3.9 million shares in the real estate investment trust (REIT), according to a Securities and Exchange Commission filing Friday. A Cascade executive was not immediately available for comment, but the firm said in the filing that it bought the shares as a passive investment.
Mr. Gates has taken an interest in the hotel market recently, teaming up with Saudi Prince Alwaleed bin Talal to take Four Seasons Hotels Inc. private in a $3.4-billion deal last year.
He may see a value investing opportunity in Strategic Hotels, whose shares have plunged more than 50% this year amid worries about the weakening hotel market and the REIT’s ability to cover its dividend. The shares rose 44 cents Friday, or 5.4%, closing at $8.56.
Strategic Hotels CEO Laurence Geller declined to comment.
Morgan Stanley is the largest shareholder of Strategic Hotels, with a 17.7% stake as of June 30, according to an SEC filing.
Source
0 responses so far ↓
There are no comments yet...Kick things off by filling out the form below.
Leave a Comment