Sunstone Hotel (SHO) Sees Q1 RevPAR Down 16%; Announces Consent to Tender Offer
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Sunstone Hotel Investors (NYSE: SHO) provided a preliminary update on its Q1 operations. The Company does not undertake to make updates for any subsequent developments in its business.
Preliminary Operations Update Through March 31, 2009:
-- March total portfolio RevPAR was $97.38, down 21.3% to prior year.
-- First quarter total portfolio RevPAR was $96.18, down 16.0% to prior year.
The Company separately announced today Sunstone Hotel Partnership, LLC, the Company's wholly owned subsidiary and operating partnership expects to commence on April 17, 2009 a cash tender offer to purchase any and all of the Operating Partnership's 4.60% Exchangeable Senior Notes due 2027 at a price of $600 per Note and a solicitation of consents from the holders of the Notes with respect to an amendment of the indenture under which the Notes were issued.
The Company is also in the process of negotiating an amendment to its $200 million revolving credit facility. The Company expects to reach an agreement that would result in financial covenant relief in exchange for a reduction in the facility's size and first mortgage liens on certain of its currently unencumbered hotels.[SM]
Preliminary Operations Update Through March 31, 2009:
-- March total portfolio RevPAR was $97.38, down 21.3% to prior year.
-- First quarter total portfolio RevPAR was $96.18, down 16.0% to prior year.
The Company separately announced today Sunstone Hotel Partnership, LLC, the Company's wholly owned subsidiary and operating partnership expects to commence on April 17, 2009 a cash tender offer to purchase any and all of the Operating Partnership's 4.60% Exchangeable Senior Notes due 2027 at a price of $600 per Note and a solicitation of consents from the holders of the Notes with respect to an amendment of the indenture under which the Notes were issued.
The Company is also in the process of negotiating an amendment to its $200 million revolving credit facility. The Company expects to reach an agreement that would result in financial covenant relief in exchange for a reduction in the facility's size and first mortgage liens on certain of its currently unencumbered hotels.[SM]
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