IRVINE, Calif., Dec. 6, 2021
IRVINE, Calif., Dec. 6, 2021 /PRNewswire/ -- Sunstone Hotel Investors, Inc. (the "Company" or "Sunstone") (NYSE: SHO), the owner of Long-Term Relevant Real Estate® in the hospitality sector, announced today that it completed the previously announced sale of the Embassy Suites La Jolla and the previously announced acquisition of Four Seasons Resort Napa Valley ("Four Seasons Napa").
On December 2, 2021, the Company sold the 340-room Embassy Suites La Jolla for a contractual sale price of $226.7 million or approximately $667,000 per key. The sale price represents a 22.3x multiple on 2019 Hotel Adjusted EBITDAre and a 4.0% cap rate on 2019 Hotel Net Operating Income. A portion of the funds from the sale were used to acquire Four Seasons Napa. Net proceeds, after those applied to the purchase of Four Seasons Napa, were allocated to repay a portion of the Company’s outstanding term loans and have been offered to repay a portion of the Company’s senior notes.
On December 1, 2021, the Company acquired the fee-simple interest in the 85-room Four Seasons Napa for a gross purchase price of $177.5 million. The acquisition includes nearly 4.5 acres of vineyards and the Elusa Winery, along with the inventory of prior wine vintages. Tahe acquisition was funded through a combination of cash on hand, funds from the sale of the Embassy Suites La Jolla, and from borrowings on the Company’s revolving credit facility. Upon stabilization, the Company expects the resort to generate a 6% to 7% net operating income yield. The acquisition of Four Seasons Napa will further advance Sunstone’s strategy of owning a portfolio of Long-Term Relevant Real Estate®. For additional information on the acquisition, please refer to the Four Seasons Napa presentation located in the Investor Relations section of the Company’s website.
About Sunstone Hotel Investors, Inc.
Sunstone Hotel Investors, Inc. is a lodging real estate investment trust ("REIT") that as of the date of this release has interests in 17 hotels comprised of 8,544 rooms, the majority of which are operated under nationally recognized brands. Sunstone’s business is to acquire, own, asset manage and renovate or reposition hotels considered to be Long-Term Relevant Real Estate®.
For Additional Information:
Bryan Giglia
Sunstone Hotel Investors, Inc.
(949) 382-3036
Aaron Reyes
Sunstone Hotel Investors, Inc.
(949) 382-3018
SOURCE Sunstone Hotel Investors, Inc.
View original content: PRNewswire
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Sunstone Hotel Investors, Inc.
Symbol: SHO
CIK: 1295810
Exchange: NYSE
Founded: 1995 (29 years)
Type of REIT: Equity REIT
Listing Status: Public
Market Capitalization: Mid-Cap
REIT Sector: Hotel, Resorts
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