An unknown buyer completed the acquisition of Embassy Suites La Jolla from Sunstone Hotel Investors, Inc. for approximately $230 million.
December 01, 2021
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An unknown buyer entered into an agreement to acquire Embassy Suites La Jolla from Sunstone Hotel Investors, Inc. (NYSE:SHO) for $280 million on October 18, 2021. As part of the transaction, the buyer intends to assume the hotel?s existing $56.9 million mortgage loan. The transaction is subject to customary closing conditions. The Sunstone Hotel expects the sale to close during the fourth quarter of 2021.
An unknown buyer completed the acquisition of Embassy Suites La Jolla from Sunstone Hotel Investors, Inc. (NYSE:SHO) on December 2, 2021. Sunstone sold the hotel for $227 million or approximately $0.67 million per key. The sale price represents a 22.3x multiple on 2019 hotel adjusted EBITDAre and a 4.0% cap rate on 2019 hotel net operating income. A portion of the funds from the sale were used to acquire Four Seasons Napa. Net proceeds, after those applied to the purchase of Four Seasons Napa, were allocated to repay a portion of the company's outstanding term loans and have been offered to repay a portion of the company's senior notes.
Sunstone Hotel Investors, Inc. is a real estate investment trust. The Company owns approximately 14 hotels, comprised of 6,675 rooms, located in six states and in Washington, DC. The Companyâs portfolio consists of luxury hotels located in convention, resort destinations and urban markets. It is the owner of Long-Term Relevant Real Estate (LTRR) in the lodging industry, specifically hotels in urban and resort destination locations. The Company's hotels are operated by third-party managers under long-term management agreements with TRS Lessee or its subsidiaries. It is operated by third-party managers under long-term management agreements with the TRS Lessee or its subsidiaries. Its third-party managers include subsidiaries of Marriott International, Inc.; managers of six of the Companyâs hotels; Hyatt Hotels Corporation, manager of two of its hotels; and Four Seasons Hotels Limited, Highgate Hotels L.P. and an affiliate, Hilton Worldwide, and Interstate Hotels & Resorts, Inc.
SUNSTONE HOTEL INVESTORS, INC. 
