Sunstone Hotel Investors Enters Into Agreement to Sell the 284-Room Marriott Del Mar for $66 Million
Sunstone Hotel Investors, Inc. (the "Company") (NYSE: SHO) announced today that it has entered into a purchase and sale agreement to sell the 284-room Marriott Del Mar for a contractual purchase price of $66 million ($232,000/key). The contractual sale price represents a 13.7x multiple on 2012 forecasted hotel EBITDA of $4.8 million and a 5.9% capitalization rate on 2012 forecasted hotel net operating income. The transaction, subject to customary closing conditions, including the assumption of the existing $47.2 million mortgage, is expected to close on or around June 30, 2012. During the Company's anticipated 2012 ownership period, the Marriott Del Mar is expected to generate approximately $2.1 million of hotel EBITDA. Upon completion of the sale and assumption of the mortgage debt by the buyer, the Company expects to receive net proceeds, before customary transaction costs and credits, of approximately $19 million.
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