Improves Sunstone's Portfolio Quality and Scale: Given the high-quality/high-performance travel scho

ALISO VIEJO, Calif., June 19, 2012 ( www.hospitalitybusinessnews.com ) -- Sunstone Hotel Investors, Inc. today announced that it has entered into a purchase and sale agreement new hampshire inns to acquire the fee-simple interest in the 357-room Hilton Garden Inn Chicago Downtown/Magnificent Mile for a gross purchase price of $91.75 million travel schools that teach sabre airline reservations ($257,000/key). The purchase price represents an 11.7x multiple on 2012 forecasted hotel Adjusted EBITDA new hampshire inns of $7.8 million and a 7.7% capitalization rate on 2012 forecasted hotel net operating income. During the Company's anticipated 2012 ownership period, the Hotel is expected to generate new hampshire inns approximately $4.1 million of EBITDA and $3.7 million of net operating income.
Ken Cruse, President and Chief Executive travel schools that teach sabre airline reservations Officer, stated, "We are pleased to announce the acquisition of the Hilton new hampshire inns Garden Inn Chicago, our second recent acquisition in the Magnificent new hampshire inns Mile area of downtown Chicago. The hotel's strong new hampshire inns urban location, superior RevPAR and EBITDA per key, the efficiency of the urban select-service model and the hotel's close proximity to our other downtown Chicago hotels make this a very attractive travel new hampshire inns schools that teach sabre airline reservations addition to our portfolio. We intend to capitalize on meaningful synergies across our three-hotel Magnificent Mile portfolio through coordinated revenue management and by combining operations management of the Hilton Garden Inn with our Embassy Suites new hampshire inns Chicago, which is located directly across the street. Our acquisition travel schools that teach sabre airline reservations of the Hilton Garden Inn will be funded entirely with cash and we will own the hotel free and clear of mortgage new hampshire inns debt. This acquisition fits squarely within our strategy, which is predicated new hampshire inns on growing our portfolio new hampshire inns quality and scale while gradually travel schools that teach sabre airline reservations deleveraging our balance sheet through creative, value-additive acquisitions. Separately, we are also pleased to report that strengthening industry travel schools that teach sabre airline reservations fundamentals are driving new hampshire inns continued growth within our existing portfolio as evidenced by quarter-to-date Comparable Hotel RevPAR growth of 7.5% through June 15, 2012."
Improves Sunstone's Portfolio Quality and Scale: Given the high-quality/high-performance travel schools that teach sabre airline reservations nature of the asset (the Hotel's projected 2012 RevPAR and Hotel Adjusted new hampshire inns EBITDA new hampshire inns per key of approximately $140 and $22,000, respectively), the transaction will improve the quality and scale of Sunstone's travel new hampshire inns schools that teach sabre airline reservations portfolio.
Improves Sunstone's Growth Profile: Chicago is expected to outperform the average Top 25 U.S. Lodging Markets (according to STR) in future RevPAR growth. PKF Hospitality travel schools that teach sabre airline reservations Research forecasts RevPAR growth of 8.3%, 9.1% and 10.3% in 2012, 2013, and 2014, respectively. Notably, 2012, 2013 and subsequent years are expected to be very strong convention years as Chicago's McCormick Place already reports more definite city-wide events contracted than Chicago's prior peak years.
Improves new hampshire inns Sunstone's Balance Sheet: As the acquisition travel schools that teach sabre airline reservations will be funded entirely with cash, no debt will be incurred pursuant to the acquisition. As a result, Sunstone expects the acquisition to improve travel schools that teach sabre airline reservations its credit statistics. Upon closing the acquisition, Sunstone will own 14 unencumbered hotels.
Attractively-Priced, Off-Market Transaction: new hampshire inns Consistent with Sunstone's recent transactions, the Hilton Garden new hampshire inns Inn Chicago acquisition was directly sourced by Sunstone through new hampshire inns pre-existing travel schools that teach sabre airline reservations relationships. The lack of competition for the acquisition, and the fact that Sunstone new hampshire inns was able to provide the seller with ongoing management travel schools that teach sabre airline new hampshire inns reservations of the Hotel, helped Sunstone achieve attractive deal terms.
Immediate Market Complexing Opportunity: The location new hampshire inns of the Hotel across the street from Sunstone's Embassy Suites Chicago will enable Sunstone to capitalize on substantial market complexing travel schools that teach sabre airline reservations opportunities travel schools that teach sabre airline reservations (similar to Sunstone's management complexing of the Doubletree Guest Suites Times Square and the Hilton Times Square). As the two hotels new hampshire inns are both flagged within new hampshire inns the Hilton family of brands, complexing operations between the properties will enable significant improvements in revenue management through a consolidated sales effort in addition to material new hampshire inns travel schools that teach sabre airline reservations cost savings in overhead, purchasing efficiencies, etc. The forecasted 2012 EBITDA and property-level Net Operating Income outlined herein exclude the benefits new hampshire inns of any potential operating synergies.
The Hilton Garden Inn Chicago Downtown/Magnificent Mile is a 357-room, 23-story hotel, well located along Grand Avenue in downtown Chicago amidst the market's leading business and visitor demand generators. The Hotel is one block from Chicago's famous "Magnificent Mile," and is within walking distance to over 30 million square feet of high-end office space. Each guest room and suite provides guests with generous views of downtown Chicago. new hampshire inns The Hotel's meeting and break-out space is primarily located on the 12th floor and features views of the Chicago skyline. The Hotel offers approximately 5,700 square feet of combined meeting space.