News for the Hospitality Executive
Sunstone Hotel Investors Selling the 274-room
Marriott in Napa, California for $36.0 million
SAN CLEMENTE, Calif., May 20 /PRNewswire-FirstCall/ -- Sunstone Hotel Investors, Inc. (NYSE:SHO) announced today the sale of the 274-room Marriott located in Napa, California for gross sale proceeds of $36.0 million. Sunstone estimates that the property would require approximately $6 million in near-term renovation expenditures to comply with Marriott brand standards. The gross sale proceeds of $36.0 million, plus the $6.0 million of near-term capital requirements that Sunstone will not have to expend, equates to a 10.5x 2009 EBITDA multiple. The sale is scheduled to close by the end of business on May 20, 2009.
Art Buser, President and Chief Executive Officer, stated, "We are pleased
to announce the sale of Marriott Napa for $36.0 million, plus the avoidance
of $6.0 million of near-term capital requirements, which equates to more
than $150,000 per key. This transaction demonstrates our ability to monetize
non-core assets at a price in excess of our current market valuation in
one of the most challenging hotel transaction markets in recent history.
The net proceeds from this sale will be used to fund a portion of our recently
completed Senior Notes tender offer, enabling Sunstone to maintain a significant
portion of its excess liquidity."
Napa Valley Marriott Hotel
3425 Solano Avenue
About Sunstone Hotel Investors, Inc.
Sunstone Hotel Investors, Inc. is a lodging real estate investment trust ("REIT") that, as of the date hereof, has interests in 43 hotels comprised of 14,755 rooms primarily in the upper-upscale segment operated under nationally recognized brands, such as Marriott, Hilton, Hyatt, Fairmont and Starwood. For further information, please visit Sunstone's website at www.sunstonehotels.com.
This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "should," "will" and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: general economic and business conditions affecting the lodging and travel industry, both nationally and locally, including a prolonged U.S. recession; our need to operate as a REIT and comply with other applicable laws and regulations; rising operating expenses; relationships with and requirements of franchisors and hotel brands; relationships with and the performance of the managers of our hotels; the ground or air leases for eight of our hotels; performance of hotels after they are acquired; competition for the acquisition of hotels; competition in the operation of our hotels; our ability to complete acquisitions and dispositions; the need for renovations and other capital expenditures for our hotels; the impact of renovations on hotel operations and delays in renovations or other developments; changes in business strategy or acquisition or disposition plans; our level of outstanding debt, including secured, unsecured, fixed and variable rate debt; financial and other covenants in our debt and preferred stock; our ability to successfully complete an amendment to our credit facility; volatility in the credit or equity markets and the effect on lodging demand or our ability to obtain financing on favorable terms or at all; and other events beyond our control. Although Sunstone believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All forward-looking information in this release is as of the date hereof, and Sunstone undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in Sunstone's expectations.
|Also See:||Interstate Hotels & Resorts Agrees to Manage 54 Hotels Owned by Sunstone Hotels and Its Affiliates Following Completion of Sunstone IPO / August 2004|
|Sunstone Hotel Investors Provides Update for February 2009: Portfolio RevPAR was $99.62, Down 14.8% to Prior Year: Stock Price at $2.50 Down from 52 Week High of $21.11 / March 2009|