SAN CLEMENTE, Calif., March 23, 2007 - Sunstone Hotel Investors, Inc.
(NYSE: SHO) today announced it has completed the
acquisition of the 402-room Boston Marriott Long Wharf Hotel located
on the Boston Harbor Waterfront for $228.2 million or approximately $568,000
per room.
 Based
upon the hotel's current forecasts, the purchase price equates to approximately
13.8x 2007 EBITDA and 12.7x 2008 EBITDA (reconciliation to net income below).
Concurrent with the close of the acquisition, the Company closed on a mortgage
financing totaling $176.0 million at a fixed interest rate of 5.58%. The
loan is interest only for its life and matures in 2017. The balance of
the purchase price was funded with a draw on the Company's credit facility
which will ultimately be repaid through a partial settlement of the Company's
$111.0 million forward equity agreement.
Steven R. Goldman, Sunstone's Chief Executive Officer, stated, "The
acquisition of the Marriott Long Wharf fits well with our strategy of
assembling a 'best-in-class' portfolio of institutional quality assets
located in high growth, high barrier markets. The Marriott Long Wharf is
arguably one of the best located hotels in all of Boston. The hotel's
waterfront location and proximity to Boston's financial district make it
the preferred location for both leisure and business travelers. Since
its opening in 1982, the hotel's occupancy has never dropped below 80%.
We plan to renovate the guestrooms, including new case goods, soft goods
and flat screen televisions, which, combined with the hotel's high occupancy,
will drive rate and profitability."
About Sunstone Hotel Investors, Inc.
Sunstone Hotel Investors, Inc. is a Southern California-based lodging
real estate investment trust (REIT). The Company now has interests in 52
hotels with an aggregate of 17,119 rooms primarily in the upper-upscale
and upscale segments operated under brands from nationally recognized hotel
companies such as Marriott, Hyatt, Hilton, 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.
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