Sunstone Hotel Investors, Inc. · NYSE:SHO
Sunstone Hotel Investors — Corporate Update (February 2014)
17 slides from Sunstone Hotel Investors's corporate update, Feb 20, 2014
Slide 1: Recent Acquisitions, Capital Investment Plans and Finance Initiatives - February 2014
Recent Acquisitions, Capital Investment Plans and Finance Initiatives - February 2014
Slide 2: Forward-Looking Statements
This presentation contains forward-looking statements that have been made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by te
Slide 3: Table of Contents
Table of Contents Boston Park Plaza Hyatt Regency San Francisco Finance Initiatives
Slide 4: Boston Park Plaza Investment Thesis and Renovation Plans
BOSTON PARK PLAZA Investment Thesis and Renovation Plans
Slide 5: Boston Park Plaza: Investment Thesis
Boston Park Plaza: Investment Thesis In July 2013, we acquired the fee-simple interest in the 1,053-room Boston Park Plaza hotel, located in the Back Bay district of Boston, for $250 million. The purchase price equated to $237,000/key and a 13.1x EBITDA multiple on actual 2013 earnings. Prior to acq
Slide 6: Boston Park Plaza: Investment Thesis
Boston Park Plaza: Investment Thesis We acquired the Boston Park Plaza based on the following considerations: The hotel’s current positioning is not optimal. We expect targeted capital investments and strong market growth to increase the hotel’s earnings by 35% - 40% once stabilized. The hotel histo
Slide 7: Boston Park Plaza: Renovation Plans
Boston Park Plaza: Renovation Plans Our renovation plan is focused on improving the property from its current “2.5 Star” quality level to a “3.5 Star” quality level, while removing many negative cues that have hampered the hotel’s competitive strengths and profitability. In addition to restoring the
Slide 8: Boston Park Plaza: Renovation Plans
Boston Park Plaza: Renovation Plans The property will continue to operate normally and with minimal guest impact throughout the renovation. To be clear, we will not close the hotel for renovations. The hotel is expected to generate RevPAR growth of 6.5% - 8.5% in 2014. We expect the renovation to di
Slide 9: Hyatt Regency San Francisco Investment Thesis and Renovation Plans
HYATT REGENCY SAN FRANCISCO Investment Thesis and Renovation Plans
Slide 10: Hyatt Regency San Francisco: Investment Thesis
Hyatt Regency San Francisco: Investment Thesis In December 2013, we acquired the fee-simple interest in the 802-room Hyatt Regency San Francisco, located in the Embarcadero/Financial District of San Francisco, for $262.5 million. The purchase price equated to $327,000 per key and a 15.6x EBITDA mult
Slide 11: Hyatt Regency San Francisco: Investment Thesis
Hyatt Regency San Francisco: Investment Thesis We acquired the Hyatt Regency San Francisco based on the following considerations: The hotel is in need of renovation, particularly in the guestrooms. The current state of the hotel provides us with the ability to add value in a manner similar to the ap
Slide 12: Hyatt Regency San Francisco: Renovation Plans
Hyatt Regency San Francisco: Renovation Plans Upon closing the acquisition, we began a $17 million rooms renovation to reinvigorate the tired rooms product. The scope includes guestrooms, suites, bathrooms and corridors. The renovation has been underway since January and is expected to be completed
Slide 13: Finance Initiatives: ATM & Share Repurchase, Dividend Policy
FINANCE INITIATIVES ATM & Share Repurchase, Dividend Policy
Slide 14: Finance Initiatives: ATM & Share Repurchase
Finance Initiatives: ATM & Share Repurchase On February 20, 2014, we simultaneously entered in to two equity distribution agreements relating to the offering of up to $150 million of our common stock and received authorization to repurchase up to $100 million of our common and preferred stock. These
Slide 15: Finance Initiatives: Dividend Policy
Finance Initiatives: Dividend Policy As the economy continues to grow and the lodging recovery continues, our portfolio is well positioned to grow EBITDA significantly. Additionally, our taxable income attributed to common shareholders is expected to increase from roughly $0.10 per share in 2013, to
Slide 16: Finance Initiatives: Dividend Policy
Finance Initiatives: Dividend Policy With an estimated $0.50 - $0.60 per share of taxable income in 2014 and assuming a continuation of our quarterly $0.05 per share cash distribution, we expect to distribute the remainder of our taxable income during the fourth quarter. The fourth quarter dividend
Slide 17: Sunstone Hotel Investors, Inc.
Sunstone Hotel Investors, Inc. 120 Vantis, Suite 350 Aliso Viejo, California 92656 www.sunstonehotels.com
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