Sunstone Hotel Investors to Acquire 75% Interest in San Diego Bayfront Hotel JV for $475M

Sunstone Hotel Investors, Inc. SHO today provided preliminary results for the first quarter as of March 25, 2011. Preliminary March 2011 Comparable Portfolio RevPAR is expected to increase approximately 6.2% from March 2010. Preliminary first quarter 2011 Comparable Portfolio RevPAR is expected to increase approximately 5.4% from first quarter 2010. The Company has reached a definitive agreement to acquire the 75% majority interest in a joint venture that owns the 1,190-room Hilton San Diego Bayfront hotel located in San Diego, California for a total valuation of $475.0 million or approximately $399,000 per key. The Company has reached a definitive agreement to sell the 409-room Royal Palm for $130.0 million. At closing, the Company will receive $40.0 million in cash and will provide a $90.0 million secured purchase money loan to the buyer.