for Approximately $96 million, or $370,000 per room
27, 2006 - Sunstone Hotel Investors, Inc. today announced it has completed
the acquisition of the 259-room W San Diego located in the heart of downtown
San Diego, within walking distance of the Gaslamp Quarter, Little Italy
and the convention center. The W San Diego features 240 guestrooms and
19 suites. The purchase price was approximately $96 million, or approximately
$370,000 per room. The hotel was constructed in 2002 by a venture comprised
of Starwood Hotels & Resorts, Worldwide, Inc., Gatehouse Capital and
Multi-Employer Development Partners (the hotel's majority owner).
Based upon the hotel's 2006 forecast, the purchase price equates to approximately 12x 2006 EBITDA (reconciliation to net income below). Concurrent with the acquisition, the Company closed on a fixed-rate first mortgage loan totaling $65.0 million at a rate of 6.14%. The loan is interest only for 69 months and will mature in 2018. The balance of the purchase price was funded through a draw on the Company's revolving credit facility.
Robert A. Alter, Sunstone's Chief Executive Officer, stated, "We are
excited to announce the acquisition of our first W Hotel and our first
management relationship with Starwood Hotels & Resorts Worldwide, Inc.
The W San Diego is a one-of-a-kind asset that leads the downtown market
in both ADR and RevPAR. We believe that San Diego will continue to be one
of the top performing U.S. hotel markets benefiting from a combination
of strong business demand drivers, robust convention business and a healthy
About the W San Diego
W Hotels has merged modern sophistication with the time-honored traditions of service. The result? The W San Diego. A unique hotel designed to re-awaken your senses and redefine your notion of what travel can be. Located downtown within walking distance of the Gaslamp Quarter, Little Italy, the convention center and the Bay, W San Diego features 240 guestrooms, 14 cool corner rooms, and 5 urban suites -- all stocked with every comfort and convenience. Fluffy pillow-top beds. Spacious desks hooked up with the latest technology. Plus exclusive Bliss(R) Spa amenities and 24-hour gourmet room service. When it's time for a meeting, fully wired event rooms and complete business services are available to you.
About Sunstone Hotel Investors, Inc.
Sunstone Hotel Investors, Inc. is a Southern California-based lodging real estate investment trust (REIT). As a result of this acquisition, the Company now owns 63 hotels with an aggregate of 18,495 rooms primarily in the upper-upscale and upscale segments operated under franchises from nationally recognized brands such as Marriott, Hyatt, Hilton, InterContinental, Starwood and Fairmont.
This press release contains forward-looking statements within the meaning of federal securities laws and regulations, including references to forecasts of future results.
Director of Finance
Sunstone Hotel Investors, Inc.
|Also See:||Joint Venture Partners Hilton Hotels Corporation and ING Clarion Partners Hold Groundbreaking for the 1,190 room Hilton San Diego Convention Center / February 2006|
|Starwood Appoints Victor Barothy-Langer General Manager of the THE US GRANT- A Luxury Collection Hotel in San Diego / June 2006|