U.S. Markets open in 1 hr 19 mins

Firm proposes Strategic Hotels board nominees

NEW YORK (AP) -- A minority shareholder of Strategic Hotels & Resorts Inc. said Wednesday that it plans to nominate four independent directors for the real estate investment trust's board.

Daniel Lewis, co-founder and managing director of Orange Capital LLC, said in a statement that the investment firm believes board changes are needed at Strategic Hotels & Resorts "to address what we view as a persistent discount of the company's share price to intrinsic value, poor corporate governance and lack of an effective strategy."

Orange Capital LLC owns about 4 percent of Strategic Hotels & Resorts' outstanding stock.

Orange Capital's board nominees include Lewis, along with David Johnson, president and CEO of Aimbridge Hospitality LP; John Lyons, founder and principal of Granite Realty Advisors and Mark Woodworth, president of PKF Hospitality Research LLC.

Shares of Strategic Hotels & Resorts closed at $8.62 on Tuesday. Year to date, the stock is up 35 percent.