PK - Sunstone Hotel to acquire remaining 25% joint venture interest in Hilton San Diego Bayfront

Sunstone Hotel Investors (NYSE:SHO) to acquire Park's (PK) 25% interest in the joint venture that owns the leasehold interest in the 1,190-room Hilton San Diego Bayfront for $102M in cash and will effectively assume Park's $55M share of the existing mortgage loan on the Hotel. The purchase price implies a $628M value for the Hotel, or $527,700 per key, and represents a 13.2x multiple on the Hotel's 2022 forecasted EBITDA and a 6.6% capitalization rate on 2022 forecasted net operating income. The transaction is expected to close by the end of 2Q22 pursuant to which Sunstone (SHO) will own 100% of the venture's interests in the Hotel. Sunstone (SHO) expects to fund the acquisition primarily from borrowing on the company's revolving credit facility.

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Sunstone Hotel to acquire remaining 25% joint venture interest in Hilton San Diego Bayfront