Sunstone Hotel Investors, Inc. (NYSE: SHO) announced today that it has completed the sale of 13 hotels (the “Portfolio”) for gross proceeds of $144.1 million, or 8.4x projected 2006 EBITDA for the Portfolio (reconciliation to net income below), to affiliates of Trinity Hotel Investors, LLC. The Portfolio consists of the following properties:
Property Location # of Rooms
Holiday Inn Boise, ID 265
Holiday Inn Craig, CO 152
Holiday Inn Price, UT 151
Holiday Inn Renton, WA 226
Holiday Inn San Diego (Mission Valley), CA 175
Crowne Plaza Englewood, NJ 194
Crowne Plaza Williamsburg, VA 303
Hawthorn Suites Kent, WA 152
Marriott Ogden, UT 292
Marriott Pueblo, CO 164
Courtyard Lynnwood, WA 164
Courtyard Fresno, CA 116
Courtyard Santa Fe, NM 213
Total Portfolio 2,567
Robert A. Alter, Chief Executive Officer, stated, “We are pleased to announce the sale of this portfolio of 13 non-strategic assets. By divesting 21% of our properties that only account for approximately 5.3% of EBITDA for the six months ended June 30, 2006, we will be able to redirect management resources toward optimizing our larger, higher growth assets that have a more meaningful impact on the Company. This transaction reduces the geographic distribution of our portfolio from 19 states to 14 states. Since October 2004, we have sold 19 non-strategic hotels and have acquired 13 high quality hotels. We plan to re-invest the proceeds from this sale into hotels that fit a similar profile to that of our other recent acquisitions.”
The Company continues to upgrade its portfolio through actively recycling capital. Since 2001, the Company and its predecessors have sold 45 hotels with an average of 177 rooms per hotel and have acquired 32 hotels with an average of 367 rooms per hotel. Since 1999, the Company and its predecessors have sold a total of 69 hotels.
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