Sunstone Hotel
Investors, Inc. today announced it has completed its acquisition
of the 203-room Sheraton Hotel located in Cerritos, California for an all-in
purchase price of $26.8 million, or $132,000 per room.  The all-in purchase
price reflects a multiple of 8.1x projected 2005 EBITDA (reconciliation to net
income is provided below).  The all-in purchase price includes transaction
closing costs, the assumption of a $9.1 million fixed-rate note bearing
interest at 8.875% per annum with a maturity date of December 2009, and
$1.25 million of capital expenditures.Robert A. Alter, CEO of Sunstone Hotel Investors, commented, “We are very
pleased to acquire this high quality asset located in the high barrier to
entry Los Angeles market.  The Sheraton Cerritos is an excellent example of
how we were able to leverage our industry relationships and source an
off-market deal at an attractive price.”
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