Sunstone Hotel Investors, Inc. · NYSE:SHO
Sunstone Hotel Investors — Merger or Acquisition (April 2021)
17 slides from Sunstone Hotel Investors's merger presentation, Apr 28, 2021
Slide 1: April 2021 Montage Healdsburg Acquisition
April 2021 Montage Healdsburg Acquisition
Slide 2: One of the Newest and Finest Luxury Resorts
One of the Newest and Finest Luxury Resorts
Slide 3: Located in One of the World's Most Sought-After Destinations
Located in One of the World’s Most Sought-After Destinations
Slide 4: Long-Term Relevant Real Estate
Long-Term Relevant Real Estate®
Slide 5: Transaction Overview
Transaction Overview 5 Opportunistic Acquisition of Long-Term Relevant Real Estate® • Investment: Sunstone has acquired the fee-simple interest in the recently opened Montage Healdsburg, a 130-room luxury resort in Northern California’s world-renowned wine region for $265 million. • Property: The ex
Slide 6: Resort Overview
Resort Overview 6 Long-Term Relevant Real Estate® Montage Healdsburg Overview Resort Address 100 Montage Way, Healdsburg, CA 95488 Year Built 2020 Total Rooms & Suites 130 (96 guest rooms / 34 suites) Total Meeting Space 12,400 square feet Resort Amenities 16-acre vineyard, full-service spa, fitness
Slide 7: Destination Overview
Destination Overview 7 Easily Accessible, Ideal Location to Enjoy All That Wine Country Has to Offer • Nestled along the Russian River, Healdsburg combines small-town charm, stunning vistas, and award-winning wines with a picturesque town plaza lined with shops, tasting rooms, art galleries, bars an
Slide 8: Luxury Resort Market Overview
$200 $450 $700 $950 $1,200 2012 2013 2014 2015 2016 2017 2018 2019 US Luxury Average Wine Country Luxury Luxury Resort Market Overview 8 Established, Year-Round Market with Significant Rate Premium Luxury Hotel Average Daily Rates Luxury hotels in wine country command average daily rates far in exce
Slide 9: Transaction Rationale
Transaction Rationale 9 Compelling and Well Structured Investment Opportunity • Pricing reflects a discount to current replacement cost. Development costs today would be meaningfully higher than the actual development costs given recent construction cost inflation. • Projected 6% to 7% net operating
Slide 10: Corporate Implications
Corporate Implications 10 On-Strategy Acquisition that is Consistent with Stated Tactics • Is directly on strategy and increases Sunstone’s concentration of Long-Term Relevant Real Estate®. • Is expected to generate a 6.0% to 7.0% net operating income yield upon stabilization. • Increases the concen
Slide 11: Sunstone Operations Update
April 2021 Sunstone Operations Update
Slide 12: Pace of Recovery is Accelerating
Sunstone Operations Update 12 Pace of Recovery is Accelerating Sunstone Portfolio RevPAR and Total RevPAR by Month While still well below normalized levels, RevPAR has accelerated meaningfully in recent months. Portfolio occupancy, average daily rate (ADR), and RevPAR all witnessed sequential monthl
Slide 13: Average Daily Rates are Moving Towards Pre-Pandemic Levels
Sunstone Operations Update 13 Average Daily Rates are Moving Towards Pre-Pandemic Levels While Occupancy Rebuilds Rate integrity has been much stronger than anticipated despite record declines in demand. Average daily rates are recovering despite materially lower, yet improving, occupancy levels. Su
Slide 14: Transient Bookings are Accelerating
Sunstone Operations Update 14 Transient Bookings are Accelerating and Reflect Pent Up Demand for Travel Weekly Transient Pickup For Next 6 Months Transient booking trends have increased sharply and point to higher levels of demand in the latter portion of 2021. Strong demand over weekends and recent
Slide 15: Group Production is Rebounding
Sunstone Operations Update 15 Group Production is Rebounding, and Groups are Increasingly Intent on Conducting Events in 2021 Quarterly New Group Room Night Production New group room night production increased significantly in the first quarter. Group events are being held in increasing numbers acro
Slide 16: ALDSBURG
[1] ALDSBURG
Slide 17: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,
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