ALISO VIEJO, Calif.,
Nov. 13, 2017 /PRNewswire/
-- Sunstone Hotel Investors, Inc. (the "Company" or
"Sunstone") (NYSE: SHO) today announced that it has refinanced the
existing $220 million mortgage loan
secured by the Hilton San Diego Bayfront with a new $220 million mortgage loan (the "Loan"). The Loan
has a three-year initial term and three one-year extension options,
subject to the satisfaction of certain conditions. The Loan is
interest only and provides for a floating interest rate of LIBOR
plus 1.05% with a 25 basis point increase during the final one-year
extension period, if extended. The Loan is expected to reduce the
Company's consolidated annual cash interest expense by
approximately $2.6 million. The Loan
replaces the existing loan that was scheduled to mature in
August 2019 and had a floating
interest rate of LIBOR plus 2.25%.
The Hilton San Diego Bayfront is a 1,190-room hotel that is
owned by a joint venture between subsidiaries of Sunstone and Park
Hotels & Resorts Inc. (NYSE: PK) in which Sunstone owns a 75%
interest in the joint venture.
About Sunstone Hotel Investors, Inc.
Sunstone Hotel Investors, Inc. is a lodging real estate
investment trust ("REIT") that as of November 13, 2017 has interests in 27 hotels
comprised of 13,202 rooms. Sunstone's hotels are primarily in the
urban and resort upper upscale segment and are operated under
nationally recognized brands, such as Marriott, Hilton and Hyatt.
For further information, please visit Sunstone's website at
www.sunstonehotels.com.
About Park Hotels & Resorts
Park Hotels & Resorts Inc. (NYSE:PK) is one of the largest
publicly traded lodging real estate investment trusts with a
diverse portfolio of market-leading hotels and resorts with
significant underlying real estate value. Park's portfolio
currently consists of 67 premium-branded hotels and resorts with
over 35,000 rooms located in prime U.S. and international markets
with high barriers to entry. For additional information, please
visit Park's website at www.pkhotelsandresorts.com.
Forward-Looking Statements
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 opinions, 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; international,
national and local economic and business conditions, including the
likelihood of a U.S. recession, changes in the European Union or
global economic slowdown, as well as any type of flu or
disease-related pandemic, affecting the lodging and travel
industry; the ability to maintain sufficient liquidity and our
access to capital markets; terrorist attacks or civil unrest, 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 and equity 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; severe weather events or other natural
disasters; 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
November 13, 2017, 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.
This release should be read together with the consolidated
financial statements and notes thereto included in our most recent
reports on Form 10-K and Form 10-Q. Copies of these reports are
available on our website at www.sunstonehotels.com and through the
SEC's Electronic Data Gathering Analysis and Retrieval System
("EDGAR") at www.sec.gov.
For Additional Information:
Bryan Giglia
Sunstone Hotel Investors, Inc.
(949) 382-3036
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SOURCE Sunstone Hotel Investors, Inc.