Sunstone Selling Marriott Del Mar for $66MMonday, June 11, 2012
Sunstone Hotel Investors Inc. has entered into an agreement to sell the 284-room Marriott Del Mar in Carmel Valley for $66 Million, the Aliso Viejo-based company announced June 6.
The buyer is Thayer Lodging Group Inc. of Maryland. According to CoStar Group, Sunstone purchased the property, at 11966 El Camino Real, for $69 million in 2006.
In a company statement, Sunstone President and CEO Ken Cruse said the sale of the local hotel came as Sunstone recently closed on its previously announced purchase of the 417-room Hyatt Chicago Magnificent Mile, formerly known as Wyndham Chicago.
“Consistent with our stated business plan, by divesting of a highly levered, sub-market hotel and acquiring an unencumbered, high-quality central business district hotel, we have improved our portfolio quality and growth profile while deleveraging our balance sheet,” Cruse said. “We may look to opportunistically sell additional non-core assets in transactions that help advance our portfolio quality and balance sheet objectives.”
The Marriott Del Mar transaction, subject to closing conditions, calls for the buyer to assume an existing $47.2 million mortgage. Sunstone said the deal is expected to close on or around June 30, and the company expects to receive net proceeds of approximately $19 million from the sale.
Sunstone Hotel Investors is a real estate investment trust that trades under the symbol SHO on the New York Stock Exchange. It has interests in 32 U.S. hotels, including Hilton San Diego Bayfront, Embassy Suites Hotel La Jolla and Hilton Del Mar San Diego.
— Lou Hirsh