Sunstone Hotel Investors, Inc. Announces the Acquisition of the 444-Room Hilton Times Square
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Sunstone Hotel Investors, Inc. Announces the Acquisition of the 444-Room Hilton Times Square
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Category: North America & West Indies / Carribean islands
This is a press release selected by our editorial committee and published online for free on 2006-01-30
Sunstone Hotel Investors, Inc. (NYSE: SHO) announced today that it has signed a purchase and sale agreement to acquire the Hilton Times Square located in New York City on 42nd Street a half block west of Times Square for a purchase price of approximately $242.5 million, or a 12.8x multiple on projected 2006 EBITDA (see reconciliation of EBITDA to net income below). 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 generators."
About the Hilton Times Square
The Hilton Times Square hotel is part of a mixed-use complex developed by Forest City Ratner. The hotel, which opened in 2002, is surrounded by Broadway theatres, fashion houses, nightclubs, shopping, fine New York restaurants and a number of corporate headquarters. Soaring 44 stories above Manhattan Island, occupying the 21st thru 44th floors of a mixed-use entertainment/retail complex, the Hilton Times Square hotel offers oversized guest rooms (330 sq. ft standard room) with spectacular panoramic views.
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