Sunstone Selling Marriott in Napa
SAN CLEMENTE, CA, May 20, 2009 - Sunstone Hotel Investors, Inc. (NYSE:SHO) announced 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."
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 
