| SAN CLEMENTE, Calif., Sept. 4 - 1998 - Sunstone Hotel
Investors, Inc. (NYSE: SSI) today announced the acquisition of the Pacific
Shore Hotel in Santa Monica, Calif., and the sale of the Green Oaks Park
Hotel in Fort Worth, Texas.
Pacific Shore Hotel
Sunstone acquired the hotel from Pacific Shore Hotel, LTD for approximately
$22.0 million. The property
is located on Ocean Avenue across from the Pacific Ocean, two blocks from
the Santa Monica Pier and the burgeoning Santa Monica entertainment, shopping,
restaurants and theater
district. The hotel consists of 168 rooms including a restaurant
and lounge, pool and spa, fitness center, gift shop and meeting rooms.
Sunstone intends to take advantage of the strong Santa Monica market with
its barriers to new competition, implement its proven repositioning strategy
by significantly renovating the hotel and substantially improve rates.
Green Oaks Hotel
Sunstone also announced the sale of the Green Oaks Park hotel in Fort
Worth, Texas, for $5.8 million, which was acquired by the Company as part
of the 17 hotels purchased from Kahler Realty Corporation in October 1997.
This sale completes the disposition of six Kahler hotels considered by
management as properties that did not have significant growth potential
after renovation and brings the total proceeds from these sales to approximately
$46.8 million. The remaining 11 hotels from the Kahler acquisition, of
which many have been rebranded as full-service Marriotts, have resulted
in significantly repositioning Sunstone as an owner of luxury and upscale
hotels in strong markets.
Robert A. Alter, Chief Executive Officer, stated, "The purchase and
sale of these properties are consistent with the Company's strategy to
focus on the acquisition, renovation, rebranding and repositioning of upscale
and luxury hotels in large urban and airport markets in the western
United States. The Santa Monica hotel is another turn-around property
with significant potential. We will continue our commitment to effectively
manage our portfolio and maximize shareholder value through these transactions."
About Sunstone Hotel Investors, Inc.
| Sunstone Hotel Investors, Inc. is a leading self-administered real
estate investment trust whose portfolio consists of luxury, upscale and
mid-price hotels located primarily in the Pacific and Mountain regions
of the western United States. The Company's growth strategy is to maximize
shareholder value by (i) acquiring underperforming and undercapitalized
hotels that are in attractive locations with significant barriers to entry
and (ii) improving such hotels' financial performance by renovating, redeveloping,
rebranding and repositioning the hotels and through the implementation
of focused sales and marketing programs. Sunstone Hotel Investors, Inc.
is the only hotel REIT that currently focuses its acquisition strategy
primarily in the western United States. Through Sunstone Hotel Investors,
L.P., the Company owns 57 hotels comprising 10,215 rooms (including the
aforementioned acquisition and sale). |
This press release contains forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Actual results and the timing
of certain events could differ materially from those set forth in the forward-looking
statements. |