Sunstone Paying $187 Million for Hotels

0

Sunstone Hotel Investors Inc. has agreed to buy hotels in Cerritos and downtown Washington, D.C., for $187 million in cash and assumed debt.


The acquisitions are expected to close in June.


In Cerritos, San Clemente-based Sunstone agreed to buy the 203-room Sheraton Hotel for $26.8 million in cash and debt. The seller was not disclosed. Sheraton Hotels and Resorts will operate the hotel under a franchise agreement with Sunstone. The purchase price includes transaction closing costs and $9.1 million in assumed debt.


In Washington, D.C., Sunstone said it would buy the 75 percent share it doesn’t own of the 807-room Renaissance hotel. The hotel, which was majority owned by developer ICI, is near the city’s new convention center. The hotel will be Sunstone’s largest hotel by rooms and revenue, the company said.


Sunstone said it expects to pay $160 million, including the assumption of $56 million in debt, to buy all of the Renaissance. The hotel will continue to be operated by Marriott International Inc. under the Renaissance name.


Sunstone, which owns 54 upscale hotels, has bought 19 of them for nearly $618 million since 2001, according to the company’s Web site.



*Pat Maio from the Orange County Business Journal contributed to this story.

No posts to display