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Stuart Dean
Sunstone Hotel Investors Successfully Repays Debt for
Marriott Rochester Mayo Clinic and Kahler Inn & Suites

Plans for Major Upgrade of the Kahler Grand Hotel Underway, Rochester, Minnesota

Post-Bulletin, Rochester, Minn.McClatchy-Tribune Regional News

Apr. 22, 2010--Sunstone Hotel Investors Inc. will continue to maintain ownership of five hotels serving Mayo Clinic, as well as business and leisure visitors to Rochester.

The company has successfully repaid all of the outstanding debt for both the Marriott Rochester Mayo Clinic and Kahler Inn & Suites. The company's Rochester hotels continue to provide a full range of accommodations, from extended stay and budget to business and full-service luxury. Furthermore, a multi-million dollar investment in the portfolio hotels will begin in 2010.

"Through the retention of the two hotels and the additional capital investment, Sunstone Hotel Investors, Inc. maintains its long-standing commitment to the Rochester region," said Bruce Fairchild, general manager of the Kahler Grand Hotel and regional manager for the Rochester region.

Sunstone Hotel Investors, Inc.'s multi-million dollar capital investment will include a major upgrade to the Kahler Grand Hotel's meeting space and deluxe guestrooms.

The next-generation Kahler Grand guestrooms will have all new furnishings, flat-panel televisions and excellent guest amenities. The Kahler Inn & Suites renovation schedule includes full renovations to the lobby, guestrooms and pool area. The Marriott Rochester Mayo Clinic will be introducing the "Lobby Reinvented" or Great Room concept, designed to activate all public space into individual zones of work, recreation and relaxation. In addition, the Marriott's pool, spa and guestrooms will have contemporary and technological upgrades.

"As a locally managed group of hotels, we understand that it is paramount that we maintain a mix of lodging options, continue to deliver superior service and anticipate every need for visitors, especially those visitors who travel to Rochester for medical reasons," said Fairchild.

Sunstone's properties in Rochester are the Kahler Grand Hotel, Kahler Inn & Suites, Marriott Rochester Mayo Clinic, Residence Inn by Marriott Rochester, built in 2004, and the ultra-luxury International Hotel.

"We want Rochester to know that we care not only about keeping our hotels ahead of the curve and consistently full, but also about maintaining the heritage and community support, which these hotels have represented for 80 years," Fairchild said.


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