IRVINE, Calif., Dec. 9, 2020 — Sunstone Hotel Investors, Inc. (the “Company” or “Sunstone”) (NYSE: SHO), the owner of Long-Term Relevant Real Estate® in the hospitality sector, today announced the sale of the 502-room Renaissance Los Angeles Airport for a gross sale price of $91.5 million, or approximately $182,300 per key. The sale price represents a 12.2x multiple on 2019 Hotel Adjusted EBITDAre and a 6.8% capitalization rate on 2019 Hotel Net Operating Income. The disposition of the hotel furthers the Company’s strategy of concentrating its portfolio into Long-Term Relevant Real Estate® and further enhances the Company’s liquidity.
John Arabia, President and CEO, stated, “We are pleased to announce the sale of the Renaissance Los Angeles Airport at an attractive valuation compared to pre-COVID levels. The completed sale further concentrates our portfolio into Long-Term Relevant Real Estate and increases our already considerable liquidity. Our Company is well positioned to navigate the current environment and to capitalize on opportunities as they arise.”
