SAN CLEMENTE, Calif., June 18 /PRNewswire-FirstCall/ -- Sunstone Hotel Investors, Inc. announced today that it has completed the sale of the 292-room Marriott located in Riverside, California for gross sale proceeds of $19.3 million, which equates to 10.1x 2009 forecasted EBITDA.
Art Buser, President and Chief Executive Officer, stated, "The sale of the Marriott Riverside demonstrates our ability to monetize non-core assets at an attractive valuation in a very challenging transaction environment. This transaction will improve our already strong liquidity position, and we are confident that over time the net proceeds will deliver higher returns to our stockholders if deployed towards value enhancing capital investments elsewhere within our core portfolio of hotels."
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 42 hotels comprised of 14,463 rooms primarily in the upper-upscale segment operated under nationally recognized brands, such as Marriott, Hilton, Hyatt, Fairmont and Starwood. For further information, please visit Sunstone's website at http://www.sunstonehotels.com/.
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," "continue," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "should," "will" 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 that 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: general economic and business conditions affecting the lodging and travel industry, both nationally and locally, including the current U.S. recession which may be prolonged; our need to operate as a REIT and comply with other applicable laws and regulations; rising operating expenses; relationships with and requirements of franchisors and hotel brands; relationships with and the performance of the managers of our hotels; the ground or air leases for eight of our hotels; performance of hotels after they are acquired; competition for the acquisition of hotels; competition in the operation of our hotels; our ability to complete acquisitions and dispositions; the need for renovations and other capital expenditures for our hotels; the impact of renovations on hotel operations and delays in renovations or other developments; changes in business strategy or acquisition or disposition plans; our level of outstanding debt, including secured, unsecured, fixed and variable rate debt; financial and other covenants in our debt and preferred stock; our ability to successfully complete an amendment to our credit facility; volatility in the credit or equity markets and the effect on lodging demand or our ability to obtain financing on favorable terms or at all; and other events beyond our control. Although Sunstone 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. All forward-looking information in this release is as of the date hereof, and Sunstone undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in Sunstone's expectations.
Reconciliation of Net Income to EBITDA - Full Year 2009 Forecast (in millions) Net Income $0.9 Depreciation expense $1.0 ------- EBITDA $1.9 For Additional Information: Bryan Giglia Vice President - Corporate Finance Sunstone Hotel Investors, Inc. (949) 369-4236
Sunstone Hotel Investors, Inc.
CONTACT: Bryan Giglia, Vice President - Corporate Finance of Sunstone
Hotel Investors, Inc., +1-949-369-4236
Web Site: http://www.sunstonehotels.com/
