Sunstone acquires San Diego Marriot
Sunstone Hotel Investors is acquiring the 284-room Marriott Del Mar located in San Diego, California for approximately $69 million.This works out at approximately $243,000 per room. The hotel will continue to be managed by Marriott International.
Based upon Sunstone’s operating projections, the purchase price equates to an 11.5x multiple on projected 2006 EBITDA (reconciliation to net income below).
The hotel was developed in 2002 by JMI Realty, and there are no material capital expenditures anticipated upon acquisition.
Concurrent with the acquisition, Sunstone Hotel Investors, Inc. closed on a fixed-rate loan totaling $48.0 million at a rate of 5.69%. The loan is interest only for five years and will mature in 2016.
Robert A. Alter, Sunstone’s Chief Executive Officer, stated, “We are very pleased to announce the acquisition of the San Diego Marriott Del Mar. Located in the heart of San Diego’s highest office rent submarket, this acquisition advances our strategy of upgrading our portfolio through the addition of premium full service assets in high barrier to entry markets.”