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Sutton Place Hotel Newport Beach; Selects Fairmont Hotels & Resorts as Manager |
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SAN CLEMENTE, Calif., April 20, 2005 - Sunstone Hotel Investors, Inc.
(NYSE: SHO) and Fairmont Hotels & Resorts Inc. (NYSE: FHR; Toronto)
announced today that they have entered into an agreement for Fairmont Hotels
& Resorts ("Fairmont") to manage the 444-room Sutton Place Hotel in
Newport Beach, California. Sunstone is currently under contract to
purchase the property with closing currently scheduled for mid-May.
Sunstone will then commence a major renovation of the hotel's guestrooms
and public areas, anticipated to cost approximately $22.0 million.
Upon completion, expected to occur in early 2006, the hotel will be re-named
the Fairmont Newport Beach. Sunstone will use proceeds from its recently
completed preferred stock offering to complete the acquisition.
Robert A. Alter, Sunstone's Chief Executive Officer, stated, "The Sutton Place represents an excellent opportunity to renovate and reposition an underperforming property back into one of Orange County's premier luxury business hotels. The property will benefit from Fairmont's luxury brand profile, strong presence in the California market and global distribution network. We look forward to developing this partnership with Fairmont." Mr. Alter added, "This is our first acquisition since the October IPO. We are pleased to be acquiring such a high quality asset and reiterate that this type of hotel is consistent with our investment objectives of acquiring high quality hotels with multiple demand generators, associated with leading brands and at a discount to replacement cost in markets with high barriers to new development." "Fairmont is pleased about this opportunity to establish a relationship with Sunstone, a well-known hotel owner," said William R. Fatt, FHR's Chief Executive Officer. "We look forward to working with our new partner to further strengthen the quality and performance of this property that is located in an active center for commerce and tourism." About Sutton Place Hotel Newport Beach
About Sunstone Hotel Investors, Inc.
About Fairmont Hotels & Resorts Inc.
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Contact:
Sunstone Hotel Investors, Inc.
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Also See: | Tarsadia Boosting Upscale Hotel Holdings With Sutton Place Hotel in Newport Beach Buy / Sandi Cain / August 2004 |
Two California Coastal Resorts, Newport Beach Marriott and Ritz-Carlton Laguna Niguel Spending $100 million on Renovations / Sandi Cain / November 2004 |