Sunstone Hotel Investors, Inc. has recently completed the sale of Boston Park Plaza, a 1,060-room hotel for a gross price of $370 million. This equates to approximately $350,000 per key and is the result of Sunstone’s successful execution of their business plan since acquiring the historic property in 2013.
The sale price reflects an impressive multiple of 12.1x on Hotel Adjusted EBITDAre and a cap rate of 7.1% on Hotel Net Operating Income for the past four quarters ending June 30th.
Moving forward, Sunstone is exploring options to reinvest the proceeds from this sale through tax-deferred exchanges or utilizing existing tax attributes to offset any gains made from this transaction.
