Courtesy of Benzinga.
Sunstone Hotel Investors (NYSE: SHO) announced today that it has entered into an agreement to sell the 229-room Doubletree Guest Suites Minneapolis, the 257-room Hilton Del Mar, and the 350-room Marriott Troy (“Three-Hotel Portfolio”) for an adjusted gross sale price of $107.1 million ($128,100/key), including the assumption of approximately $75.6 million in mortgage debt and $2.1 million of deferred management fees. The Company also announced that it has completed the previously announced sale of the 284-room Marriott Del Mar for $66.0 million ($232,400/key), which included the assumption of $47.1 million in mortgage debt. Additionally, the Company announced that it has amended its $150.0 million revolving credit facility, resulting in the elimination of the facility’s LIBOR floor, a reduction in the facility’s effective interest rate, and an extension of the facility’s term to November 2015.
Ken Cruse, President and CEO, stated, “The Three-Hotel Portfolio sale we announced today, coupled with our previously announced sale of the Marriott Del Mar, are solid steps toward our stated corporate goals of improving our portfolio quality while strengthening our balance sheet. For the trailing 12 months ended June 30, 2012, the four disposition hotels generated combined RevPAR of $91.54 and EBITDA per key of $12,400, both of which are more than 30% below our portfolio average. By selling these four relatively small, highly-levered, lower RevPAR hotels we will reduce our overall indebtedness by approximately $122.7 million, increase our cash position by approximately $48.3 million, improve our asset concentrations in key growth markets and increase our overall portfolio RevPAR and EBITDA per key. While we may look to advance our portfolio and credit objectives through additional asset sales
