Sunstone Acquires Marriott Boston Quincy Hotel
Announces Settlement of the Forward Equity Agreement
BOSTON, MA, May 3, 2007. Sunstone Hotel Investors, Inc. (NYSE:SHO) announced it has completed the acquisition of the 464-room Marriott Boston Quincy Hotel located in the Boston sub-market of Quincy Massachusetts for $116.6 million or approximately $251,000 per room.
The purchase price includes payment for land adjacent to the hotel which the Company intends to entitle for future development. Based upon the hotel's current forecasts, the purchase price equates to approximately 12.1x 2007 EBITDA (reconciliation to net income below).
In connection with the close of the acquisition, the Company settled in full on April 30, 2007 the forward sale agreement by issuing 4,000,000 shares of common stock to Citibank N.A. for gross proceeds of approximately $111 million. Sunstone previously announced that it entered into this forward sale agreement with an affiliate of Citigroup Global Markets Inc. on July 19, 2006. The shares were issued from Sunstone's existing shelf registration statement filed with the Securities and Exchange Commission.
Steven R. Goldman, Sunstone's Chief Executive Officer, stated, "The Marriott Boston Quincy is a high-quality asset which, combined with recent acquisition of the Marriott Long Wharf, increases our presence in the high- growth Boston market. We will be consolidating the back of house operations for the two hotels, which will also allow us to add up to nine additional guest rooms to the Long Wharf property, thereby creating operating efficiencies and driving additional revenues."
Marriott International, Inc. (NASDAQ: MAR) is a global leading lodging company based in Bethesda,Maryland, USA, with more than 4,200 properties in 80 countries and territories. Marriott International reported revenues of nearly $14 billion in fiscal year 2014. The company operates and franchises hotels and licenses vacation ownership resorts under 19 brands, including: The Ritz-Carlton®, BVlgari®, EDITION®, JW Marriott®, Autograph Collection® Hotels, Renaissance® Hotels, Marriott Hotels®, Delta Hotels and Resorts®, Marriott Executive Apartments®, Marriott Vacation Club®, Gaylord Hotels®, AC Hotels by Marriott®, Courtyard®, Residence Inn®, SpringHill Suites®, Fairfield Inn & Suites®, TownePlace Suites®, Protea Hotels® and MoxyHotels®. Marriott has been consistently recognized as a top employer and for its superior business ethics. The company also manages the award-winning guest loyalty program, Marriott Rewards® and The Ritz-Carlton Rewards® program, which together surpass 50 million members. For more information or reservations, please visit our website at 
