Sunstone Hotel Investors, the owner of Long-Term Relevant Real Estate® in the lodging industry, has entered into a definitive agreement with an affiliate of Park Hotels & Resorts to acquire Park’s 25 percent interest in the joint venture that owns the leasehold interest in the 1,190-room Hilton San Diego Bayfront.
As part of the transaction, Sunstone will pay Park $102 million in cash and will effectively assume Park’s $55 million share of the existing mortgage loan on the hotel, which is already fully consolidated as part of Sunstone’s financial statements. Following the acquisition, Sunstone will own 100 percent of the venture’s interests in the hotel.
The purchase price, including the in-place debt, implies a $628 million value for the hotel, or $527,700 per key, and represents a 13.2x multiple on the hotel’s 2022 forecasted EBITDA and a 6.6 percent capitalization rate on 2022 forecasted net operating income. The company currently anticipates closing
