Sunstone Acquires San Diego Marriot for $69 million
SAN DIEGO, CA, January 11, 2006. Sunstone Hotel Investors is acquiring the 284-room Marriott Del Mar located in San Diego, California for approximately $69 million.
This works out at approximately $243,000 per room. The hotel will continue to be managed by Marriott International. Based upon Sunstone's operating projections, the purchase price equates to an 11.5x multiple on projected 2006 EBITDA (reconciliation to net income below).
The hotel was developed in 2002 by JMI Realty, and there are no material capital expenditures anticipated upon acquisition.
Concurrent with the acquisition, Sunstone Hotel Investors, Inc. closed on a fixed-rate loan totaling $48.0 million at a rate of 5.69%. The loan is interest only for five years and will mature in 2016.
Robert A. Alter, Sunstone's Chief Executive Officer, stated, "We are very pleased to announce the acquisition of the San Diego Marriott Del Mar. Located in the heart of San Diego's highest office rent submarket, this acquisition advances our strategy of upgrading our portfolio through the addition of premium full service assets in high barrier to entry markets."
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 
