Hotel Online Special Report
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Sunstone Hotel Investors Announces the Acquisition of The Pacific Shore Hotel in Santa Monica, CA 
and Sale of Green Oaks Park Hotel in Fort Worth, TX
 
SAN CLEMENTE, Calif., Sept. 4 - 1998 -  Sunstone Hotel Investors, Inc. (NYSE: SSI) today announced the acquisition of the Pacific Shore Hotel in Santa Monica, Calif., and the sale of the Green Oaks Park Hotel in Fort Worth, Texas.

Pacific Shore Hotel

Sunstone acquired the hotel from Pacific Shore Hotel, LTD for approximately $22.0 million.  The property is located on Ocean Avenue across from the Pacific Ocean, two blocks from the Santa Monica Pier and the burgeoning Santa Monica entertainment, shopping, restaurants and theater
district.  The hotel consists of 168 rooms including a restaurant and lounge, pool and spa, fitness center, gift shop and meeting rooms.  Sunstone intends to take advantage of the strong Santa Monica market with its barriers to new competition, implement its proven repositioning strategy by significantly renovating the hotel and substantially improve rates.
 

Green Oaks Hotel

Sunstone also announced the sale of the Green Oaks Park hotel in Fort Worth, Texas, for $5.8 million, which was acquired by the Company as part of the 17 hotels purchased from Kahler Realty Corporation in October 1997.  This sale completes the disposition of six Kahler hotels considered by management as properties that did not have significant growth potential after renovation and brings the total proceeds from these sales to approximately $46.8 million. The remaining 11 hotels from the Kahler acquisition, of which many have been rebranded as full-service Marriotts, have resulted in significantly repositioning Sunstone as an owner of luxury and upscale hotels in strong markets.

Robert A. Alter, Chief Executive Officer, stated, "The purchase and sale of these properties are consistent with the Company's strategy to focus on the acquisition, renovation, rebranding and repositioning of upscale and luxury hotels in large urban and airport markets in the western
United States. The Santa Monica hotel is another turn-around property with significant potential. We will continue our commitment to effectively manage our portfolio and maximize shareholder value through these transactions."
 
 

About Sunstone Hotel Investors, Inc.
Sunstone Hotel Investors, Inc. is a leading self-administered real estate investment trust whose portfolio consists of luxury, upscale and mid-price hotels located primarily in the Pacific and Mountain regions of the western United States. The Company's growth strategy is to maximize shareholder value by (i) acquiring underperforming and undercapitalized hotels that are in attractive locations with significant barriers to entry and (ii) improving such hotels' financial performance by renovating, redeveloping, rebranding and repositioning the hotels and through the implementation of focused sales and marketing programs. Sunstone Hotel Investors, Inc. is the only hotel REIT that currently focuses its acquisition strategy primarily in the western United States. Through Sunstone Hotel Investors, L.P., the Company owns 57 hotels comprising 10,215 rooms (including the aforementioned acquisition and sale). 

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results and the timing of certain events could differ materially from those set forth in the forward-looking statements.

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Contact:
Robert A. Alter, Chairman CEO, or 
Joe Biehl, Chief Financial Officer, 
both of Sunstone, 
949-361-3900
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Also See:
Sunstone Acquires Kahler Realty / Oct 1997 
Sunstone Hotel Investors Announces $9.3 Million Acquisition of 160-Room Hilton Hotel in Oxnard, California / April 1998 
Cavanaughs Hospitality Corporation to Acquire Four Hotels in Idaho and Montana From Sunstone / July 1998 

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