ALISO VIEJO, Calif., April 18, 2011 /PRNewswire/ -- Sunstone Hotel Investors, Inc. (NYSE: SHO) (the "Company") announced today that it has completed the previously announced acquisition of the 75% majority interest in the joint venture that owns the 1,190-room Hilton San Diego Bayfront (the "Hotel") located in San Diego, California. Concurrent with the acquisition, the joint venture entered into a new $240.0 million mortgage financing secured by the Hotel. The mortgage bears a floating-rate interest rate of LIBOR plus 325 basis points and matures in 2016.
The Company also announced that it has completed the previously announced sale of the 409-room Royal Palm Miami Beach ("Royal Palm") for $130.0 million.
Ken Cruse, President, stated, "We are pleased to report the completion of these previously announced transactions. The addition of the 1,190-room Hilton San Diego Bayfront and the disposition of the Royal Palm are consistent with our objectives of improving our portfolio quality, consistency and scale. We look forward to expanding our relationship with our new joint venture partner, Hilton Worldwide. Year-to-date, through off-market transactions, we have acquired over $850 million of high-quality, upper-upscale hotels located in some of the top U.S. lodging markets including Times Square, New Orleans and San Diego."
About Sunstone Hotel Investors, Inc.
Sunstone Hotel Investors, Inc. (NYSE: SHO) is a lodging real estate investment trust ("REIT") that owns 33 hotels comprised of 13,457 rooms. Sunstone's hotels are primarily in the upper upscale segment and are generally operated under nationally recognized brands, such as Marriott, Fairmont, Hilton and Hyatt. For further information, please visit Sunstone's website at www.sunstonehotels.com.
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Sunstone Hotel Investors, Inc.
SOURCE Sunstone Hotel Investors, Inc.