Four Seasons Napa Valley Acquisition Presentation November 2021

Four Seasons Resort Napa Valley Acquisition

November 2021

World-renowned luxury at a distinctive wine country resort

Long-Term Relevant Real Estate® in the heart of the Napa Valley

Acquisition of Long-Term Relevant Real Estate®

Transaction Overview

• Investment: Sunstone is under contract to acquire the fee-simple interest in the newly constructed Four Seasons Resort Napa Valley, an 85-room luxury resort located in Northern California's world-renowned wine region for $177.5 million. The transaction is expected to close by the end of the fourth quarter 2021.
• Property: The hotel is situated on the famed Silverado Trail and is adjacent to 20 premium Four Seasons Residences(1). The resort's abundant amenities include a full-service spa and health club, two swimming pools, multiple culinary experiences, distinctive event space, and a unique grapes-to-glass experience with an on-property vineyard, winery and tasting rooms.
• Compelling Valuation: Sunstone is acquiring Four Seasons Napa Valley at a discount to development cost. The resort is expected to generate a 6% to 7% net operating income yield upon stabilization of the hotel and inclusive of the expected earnings contribution from the residential rental program.
• Funding: The acquisition will be funded from existing cash and borrowings under our currently undrawn $500 million revolving credit facility.

1. Four Seasons Residences Napa Valley are not included as part of the resort acquisition but are eligible for participation in the resort's residential rental program.

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Distinctive Wine Country Resort

Resort Overview

Four Seasons Napa Valley Overview

	Resort	400 SilveradoTrail
	Address	Calistoga, CA 94515
	Date	October 2021
	Opened
	Property	22.5 Acres
	Size	(Fee Simple)
	Total Rooms	85
	& Suites	(67 guest rooms / 18 suites)
	Meeting and	16,000 square feet
	Event Space
		12,000 square-foot premium spa and health
	Resort	club with eight treatment rooms and
	Amenities	indoor/outdoor fitness facility, two swimming
		pools with private cabanas
		4.5 acres of vineyards, on-site winery with tank
	On-Site	room, barrel caverns, and two tasting rooms.
	Winery	Proprietary wine labels including inventory of
		prior wine vintages.
	Food &	Truss Restaurant + Bar, Campo Poolside,
	Beverage	winery & tasting rooms, and in-room dining
	Four Seasons	20 privately owned Four Seasons branded
	homes that will be eligible for participation in
	Residences (1)
	the resort's rental program
1. Four Seasons Residences Napa Valley are not included as part of the resort acquisition but are eligible for participation in the resort's residential rental program.	5