Sunstone Sells 13-Hotel Portfolio for $144.1 mil
Continues Transformation of Portfolio
SAN CLEMENTE, CA, Sepember 13, 2006. Sunstone Hotel Investors, Inc. (NYSE:SHO) announced today that it has completed the sale of 13 hotels (the "Portfolio") for gross proceeds of $144.1 million, or 8.4x projected 2006 EBITDA for the Portfolio (reconciliation to net income below), to affiliates of Trinity Hotel Investors, LLC.
The Portfolio consists of the following properties:
Holiday Inn - Boise, ID
Holiday Inn - Craig, CO
Holiday Inn - Price, UT
Holiday Inn - Renton, WA
Holiday Inn - San Diego (Mission Valley), CA
Crowne Plaza - Englewood, NJ
Crowne Plaza - Williamsburg, VA
Hawthorn Suites - Kent, WA
Marriott - Ogden, UT
Marriott - Pueblo, CO
Courtyard - Lynnwood, WA
Courtyard - Fresno, CA
Courtyard - Santa Fe, NM
Robert A. Alter, Chief Executive Officer, stated, "We are pleased to announce the sale of this portfolio of 13 non-strategic assets. By divesting 21% of our properties that only account for approximately 5.3% of EBITDA for the six months ended June 30, 2006, we will be able to redirect management resources toward optimizing our larger, higher growth assets that have a more meaningful impact on the Company. This transaction reduces the geographic distribution of our portfolio from 19 states to 14 states. Since October 2004, we have sold 19 non-strategic hotels and have acquired 13 high quality hotels. We plan to re-invest the proceeds from this sale into hotels that fit a similar profile to that of our other recent acquisitions."
The Company continues to upgrade its portfolio through actively recycling capital. Since 2001, the Company and its predecessors have sold 45 hotels with an average of 177 rooms per hotel and have acquired 32 hotels with an average of 367 rooms per hotel. Since 1999, the Company and its predecessors have sold a total of 69 hotels.
The Portfolio is being sold unencumbered of both debt and management.