Sunstone Hotel Investors Announces the Sale of the Sheraton Salt Lake City, Utah for Gross Proceeds of $33.3 Million
SAN CLEMENTE, Calif., Dec. 20 /PRNewswire-FirstCall/ — Sunstone Hotel Investors, Inc. (NYSE: SHO) announced today that it has completed the sale of the 362 room Sheraton located in Salt Lake City, Utah for gross sale proceeds of $33.3 million to affiliates of Driftwood Hospitality. The sale price equates to an 8.3x EBITDA multiple based on Sunstone's full-year 2007 projections (see reconciliation of EBITDA to net income below). Sunstone estimates that the property would have required approximately $15 million in renovation expenditures in 2008 to comply with Sheraton brand standards.
About Sunstone Hotel Investors, Inc.
Sunstone Hotel Investors, Inc. is a lodging real estate investment trust (REIT) that, as of the date hereof, has interests in 46 hotels with an aggregate of 16,085 rooms primarily in the upper-upscale segment operated under nationally recognized brands such as Marriott, Hyatt, Hilton, Starwood and Fairmont.
This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward looking statements are identified by their use of terms and phrases such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” “will,” “continue” and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: national and local economic and business conditions, including the potential for additional terrorist attacks, that will affect occupancy rates at the Company's hotels and the demand for hotel products and services; operating risks associated with the hotel business; risks associated with the level of the Company's indebtedness and the Company's ability to meet covenants in its debt agreements; relationships with property managers; the Company's ability to maintain its properties in a first-class manner, including meeting capital expenditure requirements; the Company's ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; changes in travel patterns, taxes and government regulations which influence or determine wages, prices, construction procedures and costs; the Company's ability to identify, successfully compete for and complete
acquisitions; the performance of acquired properties after they are acquired; necessary capital expenditures and the Company's ability to fund them and complete them with minimum disruption; and the Company's ability to continue to satisfy complex rules in order for it to qualify as a REIT for federal income tax purposes; and other risks and uncertainties associated with the Company's business described in its filings with the SEC. Although the Company
believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. The forward-looking statements are made as of the date of this press release and the Company undertakes no obligation to update any forward-looking statement
to conform the statement to actual results or changes in the Company's expectations.
Reconciliation of Net Income to EBITDA - Full Year 2007 Forecast (in millions)Net Income $2.7 Depreciation expense 1.3 EBITDA $4.0
For Additional Information:
Bryan Giglia
Vice President – Corporate Finance
Sunstone Hotel Investors, Inc.
(949) 369-4236
SOURCE Sunstone Hotel Investors, Inc.
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