San Clemente-based Sunstone Hotel Investors Inc. has agreed to buy hotels in downtown Washington, D.C., and Cerritos for $187 million in cash and assumed debt.
The acquisitions are expected to close in June.
In the Washington, D.C., deal, Sunstone said it planned to buy the 75% share it doesn’t own of the 807-room Renaissance hotel. The hotel, which was majority owned by Washington, D.C., developer ICI, is near the city’s new 2.3 million-square-foot convention center.
The hotel will be Sunstone’s largest hotel by rooms and revenue, the company said.
The Renaissance recently renovated its rooms, common areas and meeting space, which totals 66,000 square feet.
Sunstone said it expects to pay $160 million, including the assumption of $56 million in debt to buy all of the Renaissance. It had announced a plan to buy 25% of the hotel from CTF Holdings, a unit of Hong Kong-based New World Development Co., in April.
The Washington, D.C., hotel will continue to be operated by Marriott International Inc. under the Renaissance name.
In Cerritos, Sunstone agreed to buy the 203-room Sheraton Hotel for $26.8 million in cash and debt. The seller wasn’t disclosed.
Sheraton Hotels and Resorts will operate the hotel under a franchise deal with Sunstone.
Since 2001, Sunstone has bought 19 hotels for more than $618 million, according to the company’s Web site.
Shares of Sunstone, a real estate investment trust with some 60 hotels, were up 2.88% to $22.90 on Friday.
