Sunstone Acquires the Boston Marriott Long Wharf
MARCH 23, 2007. Sunstone Hotel Investors, Inc. (NYSE:SHO) today announced it has completed the acquisition of the 402-room Boston Marriott Long Wharf Hotel located on the Boston Harbor Waterfront for $228.2 million or approximately $568,000 per room.
Based upon the hotel's current forecasts, the purchase price equates to approximately 13.8x 2007 EBITDA and 12.7x 2008 EBITDA (reconciliation to net income below). Concurrent with the close of the acquisition, the Company closed on a mortgage financing totaling $176.0 million at a fixed interest rate of 5.58%. The loan is interest only for its life and matures in 2017. The balance of the purchase price was funded with a draw on the Company's credit facility which will ultimately be repaid through a partial settlement of the Company's $111.0 million forward equity agreement.
Steven R. Goldman, Sunstone's Chief Executive Officer, stated, "The acquisition of the Marriott Long Wharf fits well with our strategy of assembling a 'best-in-class' portfolio of institutional quality assets located in high growth, high barrier markets. The Marriott Long Wharf is arguably one of the best located hotels in all of Boston. The hotel's waterfront location and proximity to Boston's financial district make it the preferred location for both leisure and business travelers. Since its opening in 1982, the hotel's occupancy has never dropped below 80%. We plan to renovate the guestrooms, including new case goods, soft goods and flat screen televisions, which, combined with the hotel's high occupancy, will drive rate and profitability."
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 
