Sunstone Hotel Investors Announces the Sale of the Marriott Napa, California for Gross Proceeds of $36.0 Million (United States)
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Sunstone Hotel Investors Announces the Sale of the Marriott Napa, California for Gross Proceeds of $36.0 Million (United States)
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Category: North America & West Indies / Carribean islands - United States - Industry economy -
Group or hotel buyout
This is a press release selected by our editorial committee and published online for free on 2009-05-25
Sunstone Hotel Investors, Inc. (NYSE:SHO) announced today the sale of the 274-room Marriott located in Napa, California for gross sale proceeds of $36.0 million. Sunstone estimates that the property would require approximately $6 million in near-term renovation expenditures to comply with Marriott brand standards. The gross sale proceeds of $36.0 million, plus the $6.0 million of near-term capital requirements that Sunstone will not have to expend, equates to a 10.5x 2009 EBITDA multiple. The sale is scheduled to close by the end of business on May 20, 2009.
Art Buser, President and Chief Executive Officer, stated, "We are pleased to announce the sale of Marriott Napa for $36.0 million, plus the avoidance of $6.0 million of near-term capital requirements, which equates to more than $150,000 per key. This transaction demonstrates our ability to monetize non-core assets at a price in excess of our current market valuation in one of the most challenging hotel transaction markets in recent history. The net proceeds from this sale will be used to fund a portion of our recently completed Senior Notes tender offer, enabling Sunstone to maintain a significant portion of its excess liquidity."
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