Sunstone Hotel Investors (SHO) to acquire the fee-simple interest in the 630-room Hyatt Regency San Antonio Riverwalk

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The exceptionally well-located Hotel is situated directly between San Antonio's famous Riverwalk and the Alamo, the two most visited tourist sites in Texas. The acquisition includes nearly two acres of riverfront land and a 516-space parking garage, located adjacent to the Alamo Visitor Center and Museum which is currently under development. The Hotel recently underwent a comprehensive $37 million guestroom renovation and does not have any meaningful required near-term capital needs. Sunstone is acquiring the hotel for a gross purchase price of $230 million. Hyatt will continue to manage the Hotel under the Hyatt Regency brand and will contribute approximately $8 million of key money as part of the transaction, subject to the terms of the Company's management agreement with Hyatt.

Inclusive of the incentives offered by Hyatt, the net purchase price implies a value of approximately $352,000 per key and represents an 11.1x multiple on the midpoint of the Company's estimate of 2024 hotel EBITDA and a 8.0% capitalization rate based on the midpoint of projected hotel net operating income. The acquisition will be funded from cash on hand using a portion of the sale proceeds from the previously completed disposition of Boston Park Plaza.