SAN CLEMENTE, Calif., Sept. 5 /PRNewswire-FirstCall/ -- Sunstone Hotel
Investors, Inc. (NYSE: SHO) announced today that it has acquired 32.6 acres
of land underlying its Renaissance Orlando Resort at SeaWorld, for a gross
purchase price of $30.4 million. Prior to the acquisition by Sunstone, the
land had been leased from a third-party. Ground rent under the lease is
projected to be approximately $2.8 million in 2008. Sunstone acquired the
land with available cash.
Robert A. Alter, Chairman and Chief Executive Officer stated, "We are
pleased that we were able to execute this transaction as it represents a
unique opportunity to consolidate the fee interest in a core hotel. This
acquisition advances our strategy of creating stockholder value by
redeploying capital into our existing portfolio."
About Sunstone Hotel Investors, Inc.
Sunstone Hotel Investors, Inc. is a lodging real estate investment
trust ("REIT") that, as of the date hereof, has interests in 45 hotels
comprised of 15,349 rooms primarily in the upper-upscale segment operated
under nationally recognized brands, such as Marriott, Hilton, Hyatt,
Fairmont and Starwood. For further information, please visit the Company's
website at http://www.sunstonehotels.com.
This press release contains forward-looking statements within the
meaning of federal securities laws and regulations. These forward-looking
statements are identified by their use of terms and phrases such as
"anticipate," "believe," "continue," "could," "estimate," "expect,"
"intend," "may," "plan," "predict," "project," "should," "will" and other
similar terms and phrases, including references to assumptions and
forecasts of future results. Forward-looking statements are not guarantees
of future performance and involve known and unknown risks, uncertainties
and other factors that may cause the actual results to differ materially
from those anticipated at the time the forward-looking statements are made.
These risks include, but are not limited to: volatility in the debt or
equity markets affecting our ability to acquire or sell hotel assets;
national and local economic and business conditions, including the
possibility of a U.S. recession; potential terrorist attacks, which would
affect occupancy rates at our hotels and the demand for hotel products and
services; operating risks associated with the hotel business; risks
associated with the level of our indebtedness and our ability to meet
covenants in our debt agreements; relationships with property managers and
franchisors; our ability to maintain our properties in a first-class
manner, including meeting capital expenditure requirements; our ability to
compete effectively in areas such as access, location, quality of
accommodations and room rate structures; changes in travel patterns, taxes
and government regulations, which influence or determine wages, prices,
construction procedures and costs; our ability to identify, successfully
compete for and complete acquisitions; the performance of hotels after they
are acquired; necessary capital expenditures and our ability to fund them
and complete them with minimum disruption; our ability to continue to
satisfy complex rules in order for us to qualify as a REIT for federal
income tax purposes; and other risks and uncertainties associated with our
business described in the Company's filings with the Securities and
Exchange Commission. Although the Company believes the expectations
reflected in such forward-looking statements are based upon reasonable
assumptions, it can give no assurance that the expectations will be
attained or that any deviation will not be material. All forward-looking
information in this release is as of September 5, 2008, and the Company
undertakes no obligation to update any forward-looking statement to conform
the statement to actual results or changes in the Company's expectations.
For Additional Information:
Bryan Giglia
Vice President -- Corporate Finance
Sunstone Hotel Investors, Inc.
(949) 369-4236
[Via Real Estate California]
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