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Wednesday, Dec 7, 2022
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Sunstone Sheds NY Hotel for $540M

Aliso Viejo-based hotel investor and operator Sunstone Hotel Investors Inc. said that it has sold its leasehold interest in New York City’s Doubletree Guest Suites Times Square for $540 million.

The sale price for the 468-room hotel works out to a little under $1.2 million per room. The deal was completed at a capitalization rate of 3.4%, according to Sunstone.

The buyer of the hotel was not immediately disclosed.

Sunstone said it paid off a $175 million loan tied to the property as part of the transaction.

The sale “unlocks meaningful shareholder value by monetizing an asset with substantial long-term redevelopment opportunities at a price above our internal valuation,” Sunstone chief executive John Arabia said in a statement.

Sunstone had owned a 38% stake in the hotel since 2006, and paid a reported $286 million for the remaining interests in the property in 2011.

The company still owns a Hilton hotel in Times Square.

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Mark Mueller
Mark Mueller
Mark is the Editor-in-Chief of the Orange County Business Journal, one of the premier regional business newspapers in the country. He’s the fifth person to hold the editor’s position in the paper’s long history. He oversees a staff of about 15 people. The OCBJ is considered a must-read for area business executives. The print edition of the paper is the primary source of local news for most of the Business Journal’s subscribers, which includes most of OC’s major corporate and community players. Mark’s been with the paper since 2005, and long served as the real estate reporter for the paper, breaking hundreds of commercial and residential real estate stories. He took on the editor’s position in 2018.
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