Sunstone Acquiring Hilton Times Square, NYC for $242+ million
SAN CLEMENTE, CA, January 26, 2006. Sunstone Hotel Investors, Inc. announced today that it has signed a purchase and sale agreement to acquire the Hilton Times Square located in New York City on 42nd Street a half block west of Times Square for a purchase price of approximately $242.5 million, or a 12.8x multiple on projected 2006 EBITDA (see reconciliation of EBITDA to net income below). The hotel is currently managed by Hilton Hotels. The acquisition, which is expected to close during the first quarter 2006, remains subject to certain closing conditions.
Sunstone will finance the acquisition through the assumption of $81.0 million of debt due in 2010 with a rate of 5.9% per annum, additional debt proceeds generated from the pending refinancing of two assets and through an anticipated equity offering.
Robert A. Alter, Sunstone's Chief Executive Officer, stated, "We are very excited to announce the acquisition of this strongly performing hotel in New York City. Times Square is a terrific submarket with diverse demand generators."
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