has signed a purchase and sale agreement to acquire the Hilton Times Square.The hotel is located in New York City on
42nd Street a half block west of Times Square.
The purchase price is
approximately $242.5 million, or a 12.8x multiple on projected 2006 EBITDA. The hotel is currently
managed by Hilton Hotels. The acquisition, which is expected to close during
the first quarter 2006, remains subject to certain closing conditions.
Sunstone will finance the acquisition through the assumption of $81.0
million of debt due in 2010 with a rate of 5.9% per annum, additional debt
proceeds generated from the pending refinancing of two assets and through an
anticipated equity offering.
Robert A. Alter, Sunstone’s Chief Executive Officer, stated, “We are very
excited to announce the acquisition of this strongly performing hotel in New
York City. Times Square is a terrific submarket with diverse demand