Sunstone Hotel Investors Sells Its Leasehold Interest In The 468-Room Doubletree Guest Suites Times Square For A Gross Sale Price Of $540 Million, Or $1.15 Million Per Room

Published on : Saturday, December 19, 2015

download (5)Sunstone Hotel Investors, Inc. today announced that it has sold 100% of the membership interests in its wholly-owned subsidiary that is the indirect holder of the leasehold interest through which the 468-room Doubletree Guest Suites Times Square  is operated . The contractual gross sale price of $540.0 million represents a 25.4x multiple on 2015 forecasted Hotel Adjusted EBITDA of $21.3 million, and a 3.4% capitalization rate on 2015 forecasted Hotel net operating income. Concurrent with the Sale, the Company repaid the remaining $175.0 million current balance of the mortgage secured by the Hotel.

 

John Arabia, President and Chief Executive Officer, stated, “We are pleased to announce the completed sale of the Company’s interests in the Doubletree Guest Suites Times Square. Consistent with our business plan to selectively dispose of assets, this transaction unlocks meaningful shareholder value by monetizing an asset with substantial long-term redevelopment opportunities at a price above our internal valuation. Furthermore, this transaction improves our near-term comparable property-level growth prospects, enhances our already strong balance sheet, provides meaningful liquidity, reduces our ground lease exposure, eliminates a near-term debt maturity, reduces our near-term renovation expenditures and renovation-related earnings disruption and results in a meaningful distribution to our common stockholders.”

 

Source:-Sunstone Hotel

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