Rihga Deal Collapses

NEW YORK- HOTEL BUSINESS. has learned that Strategic Hotel Capital of Chicago has ended its due diligence process and dropped out of a plan to buy the Rihga Royal hotel for around $220 million.

While Laurence Geller, CEO of Strategic, maintained this morning that “there was never any deal,” and that Strategic was simply bidding on the property along with many others, several other sources have said that the property was in fact under a letter of intent with Strategic. Geller added that there are still other bidders pursuing the property.

Several observers have said that Strategic was expected to acquire the hotel in partnership with Carlson Hotels Worldwide, of Minneapolis, MN.

Reached in his office this morning, Shuichi Shermazo, president of Rihga International USA, offered no comment. (10/23/00) – Jay Nussbaum