SAC will acquire Sonesta

November 3 2011 | Latest News
No changes in the future for the New Orleans hotel

BOSTON—Sonesta International Hotels Corp. entered into a definitive merger agreement in which Sonesta Acquisition Corp. (SAC formerly known as Property Acquisition Corp.), will acquire Sonesta for $31 per share in cash, or approximately $174 million, including assumed indebtedness and other liabilities.

SAC is an affiliate of Hospitality Properties Trust of Newton, MA.

The per-share purchase price represents a 71% premium over Sonesta's closing share price on October

27, the day prior to Sonesta's announcement it was in discussions regarding potential transactions, including a possible merger transaction.

Stephanie Sonnabend, CEO/president of Sonesta, said, "We are delighted to announce this transaction, which will provide our stockholders with significant value. We look forward to working closely with SAC to ensure that the transition is seamless to our customers and employees."

Sonesta's management team is expected to remain intact and continue to operate Royal Sonesta Hotel Boston, Royal Sonesta Hotel New Orleans, and Sonesta Bayfront Hotel Coconut Grove (a condominium hotel), as well as the hotels itoperates and franchises in Egypt and South America. It will also be

available to operate other hotels for HPT.

The transaction is expected to be completed in first-quarter 2012.