Sunstone Hotel Investors, Inc. · NYSE:SHO
Sunstone Hotel Investors — Investor Presentation (November 2012)
16 slides from Sunstone Hotel Investors's investor presentation, November 2012
Slide 1: Company Presentation
SUNSTONE HOTEL INVESTORS, INC Company Presentation November 2012
Slide 2: Forward-Looking Statements
SUNSTONE HOTEL INVESTORS, INC 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
Slide 3: Sunstone Investment Thesis
SUNSTONE HOTEL INVESTORS, INC Sunstone Investment Thesis High-Quality Portfolio of 30 institutional-quality, upper upscale hotels located in the top U.S. markets. Balanced Strategy focused on achieving industry-leading stockholder returns by improving our portfolio quality and scale while gradua
Slide 4: Company Profile
SUNSTONE HOTEL INVESTORS, INC Company Profile Leading hotel investment company with an enterprise value of approximately $3 billion. Pro Forma Capital Structure / Valuation Metrics Pro Forma Sunstone Portfolio Metrics Shares 136.8 M Hotels 30 Recent Stock Price $10.00 Rooms 12,854 Equity Market Cap
Slide 5: High-Quality Portfolio
SUNSTONE HOTEL INVESTORS, INC High-Quality Portfolio Geographically diverse portfolio located primarily in coastal urban markets 2011 Pro Forma Total EBITDA by Region (number of hotels in parenthesis) Mid-West (7) 15% • Chicago 8% (3) • Rochester 7% (4) Northeast (9) 43% • DC/Baltimore 17% (3) West
Slide 6: High-Quality Portfolio
SUNSTONE HOTEL INVESTORS, INC High-Quality Portfolio 1,190-room Hilton San Diego Bayfront 781-room Renaissance Orlando 460-room Doubletree Guest Suites 15.8% of 2011 Hotel EBITDA 5.1% of 2011 Hotel EBITDA Times Square 9.7% of 2011 Hotel EBITDA 412-room Marriott Long Wharf Boston 807-room Renaissance
Slide 7: Proactive Portfolio Management: 2012 Dispositions
SUNSTONE HOTEL INVESTORS, INC Proactive Portfolio Management 2012 Dispositions Opportunistically disposing of four highly-levered hotels at an attractive valuation improves our balance sheet, liquidity and coverage levels Attractive Valuation Metrics $173.1 million gross sale price Forecasted 20
Slide 8: Intensive Asset Management - Delivering Results
SUNSTONE HOTEL INVESTORS, INC Intensive Asset Management - Delivering Results Asset management initiatives are driving operations growth • Exceeded Q3 consensus Adjusted EBITDA and Adjusted FFO/share by $1.8 million and $0.01, respectively • Hotel EBITDA margins increased 130 basis points • Bookin
Slide 9: Disciplined External Growth – Hilton Garden Inn Magnificent Mile
SUNSTONE HOTEL INVESTORS, INC Disciplined External Growth – Hilton Garden Inn Magnificent Mile High-quality, fee-simple hotel in a top U.S. market acquired at 11.7x forecasted 2012 EBITDA Clear value creation through the consolidation of management with Sunstone’s Embassy Suites Chicago, located
Slide 10: Disciplined External Growth – Hyatt Chicago Magnificent Mile
SUNSTONE HOTEL INVESTORS, INC Disciplined External Growth – Hyatt Chicago Magnificent Mile On June 4, 2012 the Company completed the acquisition of the 417-room Wyndham Chicago in an off-market transaction with an affiliate of The Blackstone Group and will convert to the Hyatt Chicago Magnificent Mi
Slide 11: Disciplined External Growth
SUNSTONE HOTEL INVESTORS, INC Disciplined External Growth Sunstone will have a concentration of high-quality hotels in Chicago’s Magnificent Mile District Embassy Suites Hyatt Chicago Chicago Magnificent Mile Hilton Garden Inn Magnificent Mile COMPANY PRESENTATION • PAGE 11
Slide 12: Capital Improvements
SUNSTONE HOTEL INVESTORS, INC Capital Improvements Driving growth and improving portfolio quality and growth through targeted renovations We invested $100 million renovating and repositioning our portfolio in 2011. Note: Q3 YTD 2012 RevPAR increases shown in parentheses Marriott Boston Long Whar
Slide 13: Capital Improvements
SUNSTONE HOTEL INVESTORS, INC Capital Improvements Improving portfolio quality and growth through targeted renovations COMPANY PRESENTATION • PAGE 13
Slide 14: Measured Balance Sheet Improvement
SUNSTONE HOTEL INVESTORS, INC Measured Balance Sheet Improvement We have a well staggered debt maturity profile consisting of low-rated, primarily single-asset secured mortgage debt. Existing unrestricted cash on hand materially exceeds all debt maturities through April of 2015. • Debt maturities th
Slide 15: Sunstone Investment Thesis
SUNSTONE HOTEL INVESTORS, INC Sunstone Investment Thesis High-Quality Portfolio of 30 institutional-quality, upper upscale hotels located in the top U.S. markets. Balanced Strategy focused on achieving industry-leading stockholder returns by improving our portfolio quality and scale while gradua
Slide 16: Company Presentation
SUNSTONE HOTEL INVESTORS, INC Company Presentation November 2012
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