Sunstone (SHO) to Acquire Hilton Garden Inn Chicago Downtown for $91.75M

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Sunstone Hotel Investors, Inc. (NYSE: SHO) has entered into a purchase and sale agreement to acquire the fee-simple interest in the 357-room Hilton Garden Inn Chicago Downtown/Magnificent Mile for a gross purchase price of $91.75 million ($257,000/key).

The purchase price represents an 11.7x multiple on 2012 forecasted hotel Adjusted EBITDA of $7.8 million and a 7.7% capitalization rate on 2012 forecasted hotel net operating income. During the Company's anticipated 2012 ownership period, the Hotel is expected to generate approximately $4.1 million of EBITDA and $3.7 million of net operating income. A definition of Adjusted EBITDA and reconciliation to net operating income is set forth at the end of this release.

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