ALISO VIEJO, Calif., July 2, 2013 /PRNewswire/ -- Sunstone Hotel Investors (the "Company") (NYSE: SHO) announced today that it has closed on the previously announced acquisition of the 1,053-room Boston Park Plaza hotel located in Boston, Massachusetts. The contractual purchase price was $250.0 million (or approximately $237,400 per key). The acquisition was structured as a tax-deferred exchange and was funded with a combination of proceeds received from the sale of four hotels and a commercial laundry facility in January 2013, cash on hand and the assumption of a non-recourse loan secured by the hotel. The assumed loan has a principal outstanding balance of approximately $119.2 million, which bears an interest rate of 4.4% and matures in February 2018. The hotel will remain unbranded and will continue to be managed by Highgate Hotels.
Ken Cruse, Chief Executive Officer, stated, "We are pleased to have closed our acquisition of the Boston Park Plaza hotel. This transaction completes the tax-efficient recycling of proceeds from the sale of non-core assets earlier this year. We look forward to executing on a comprehensive asset management plan designed to maximize the value of this grand Boston landmark."
About Sunstone Hotel Investors:
Sunstone Hotel Investors, Inc. ("Sunstone") is a lodging real estate investment trust ("REIT") that, as of the date hereof, has interests in 28 hotels comprised of 12,939 rooms. Sunstone's hotels are primarily in the upper upscale segment and are generally operated under nationally recognized brands, such as Marriott, Hilton, Hyatt, Fairmont and Sheraton. For further information, please visit Sunstone's website at www.sunstonehotels.com.Sunstone's mission is to create meaningful value for our stockholders by becoming the premier hotel owner. Our values include transparency, trust, ethical conduct, communication and discipline. Our goal is to improve the quality and scale of our portfolio while gradually deleveraging our balance sheet. As demand for lodging generally fluctuates with the overall economy (we refer to these changes in demand as the lodging cycle), we seek to employ a balanced, cycle-appropriate corporate strategy that encompasses the following:
- Proactive portfolio management;
- Intensive asset management;
- Disciplined external growth; and
- Measured balance sheet improvement.
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