By Tess Stynes
Sunstone Hotel Investors Inc. (SHO) agreed to acquire the
544-room Wailea Beach Marriott Resort & Spa in Maui, Hawaii,
from a unit of Blackstone Group LP (BX) for a net purchase price of
$325.7 million.
The real-estate investment trust plans to fund the deal with $60
million of shares issued directly to Blackstone at a price of
$14.87 a share, Thursday's closing price. The company also plans to
fund the balance of the deal with proceeds from an issue of 18
million shares of its common stock at market or negotiated
prices.
Sunstone also said that it expects to receive operational
support from the manager of the hotel, Marriott International Inc.
(MAR), during renovations planned for 2015 and 2016. The company
plans to spend about $65 million for the upgrades, mostly focused
on its public spaces.
Sunstone expects the acquisition will boost its comparable
revenue per available room--a key measure of profitability in the
lodging industry--by 1.3% and its hotel earnings before interest,
taxes, depreciation and amortization by 1.9%.
The deal is expected to close in the third quarter.
Sunstone shares fell 1.7% to $14.62 in recent after-hours
trading.
Write to Tess Stynes at tess.stynes@wsj.com
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