BOSTON, Mass., May 23, 2007 (PRIME NEWSWIRE) -- Sonesta International Hotels Corporation (Nasdaq:SNSTA) announced today that it was not able to complete the acquisition of Chateau Sonesta Hotel, in New Orleans (the "Hotel"), by the deadline stipulated in its purchase contract with the Hotel's owner, 800 Canal Street Limited Partnership. Efforts to arrange an extension of the deadline were not successful.
As previously reported in the Form 8-K the Company filed on March 29, 2007, regarding this transaction, acquisition of the Hotel was conditioned, among other things, on approvals from ground lessors. Those approvals were not obtained by the transaction deadline, which was May 22, 2007.
The Company intends to continue negotiations to acquire the Hotel, but there can be no assurances that continued negotiations will result in a new contract or sale or, if it does, that such contract or sale will be on comparable terms and conditions as the previously contemplated transaction.
Based in Boston, Sonesta Hotels, operates fine hotels, resorts, and Nile cruise vessels in the United States and Egypt, and licenses its brand to hotels in St. Maarten, Peru and Brazil.