Sunstone Hotel Investors Sells The Leasehold Interest In The 203-Room Sheraton Cerritos For $42.0 Million

Published on : Thursday, May 12, 2016

sunstone-hotel-investors-inc-logoSunstone Hotel Investors, Inc. (the “Company” or “Sunstone”) today announced that it has sold (the “Sale”) the leasehold interest in the 203-room Sheraton Cerritos (the “Hotel”) for a contractual price of $42.0 million (or approximately $206,900 per key). The contractual gross sale price of $42.0 millionrepresents a 10.5x multiple on 2015 Hotel Adjusted EBITDA of $4.0 million, and a 8.2% capitalization rate on 2015 Hotel net operating income.  The transaction resulted in an estimated net book gain of approximately $17.5 million to $18.5 million, and is expected to increase 2016 taxable income by approximately $16.0 million to $17.0 million.

Robert Springer, Chief Investment Officer, stated, “We are pleased to announce the sale of the leasehold interest in the Sheraton Cerritos.  The sale, which is consistent with our capital allocation strategy, increases our portfolio quality, increases our portfolio RevPAR, reduces our number of hotels subject to ground leases and allows us to avoid a required $6.0 million to $7.0 millionrenovation planned for 2017.”

2016 Outlook

The Sale is expected to reduce the Company’s full year 2016 Adjusted EBITDA and Adjusted FFO attributable to common stockholders by approximately $2.9 million, and the Company’s net income by approximately $1.9 million. Full year Adjusted EBITDA, Adjusted FFO attributable to common stockholders and net income impact excludes one-time closing costs resulting from the Sale.

Tags:

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

arrow2Follow TTW
 
facebook-logo  twitter-logo  LinkedIn_logo  stumbleupon-logo   rss_logo 
ttw_blogger_logo  ttw_blogger_logo  ttw_blogger_logo

ADVERTISEMENT

  • 03 itb-asia 2017
  • 04 Imex America 2017
  • 10 Globalwellnesssummit 2017
  • 10 thehotelshow 2017
  • 11 hospitalityaward 2017
  • 12 theleisureshow 17
  • 12 TTF17
  • 13 Frontiers Forum 2017
  • 14 bltm 2017
  • 14 patatravelmart 2017
  • 15 amsummit-ind 2017
  • 15 leisure 17
  • 16 Aviation Festival 2017
  • 16 OTDYKH 2017
  • 16 SKAL 17
  • 17 thincindonesia 2017
  • 17 worldmiceday 2017
  • 18 worldmiceday 2017
  • 19 IITM
  • 19 itehcmc 2017
  • 19 TTG Incontri 2017
  • 20 hmasummit  2017
  • 21 hoteltechhk 17
  • 43 PATA

TRAVEL INDUSTRY EVENTS

Get our toolbar!
Review www.travelandtourworld.com on alexa.com