RCA in the commercial property press:

After Shedding CEO, Sunstone Moves Swiftly in Acquiring Hotels

Wall Street Journal reports: Following the departure of internally-unpopular Arthur Buser as Sunstone Hotel Investors Inc’s chief executive officer late last year, the firm has moved quickly to acquire two more hotel assets for its 30-property portfolio. Completing what Real Capital Analytics determined was the highest price paid for a hotel in New Orleans since 2003, Sunstone acquired the 494-unit JW Marriott New Orleans in February for $52 million, in addition to assuming $42 million in existing debt. This closely followed the firm’s January move to buy out its partners at the Doubletree Guest Suites Times Square in Manhattan.

Sunstone President Kenneth Cruse suggested to the Wall Street Journal that the two recent trades were evidence of the hospitality REIT’s new approach to acquisitions since Mr Buser left the company. While Sunstone’s new approach includes moving more quickly on opportunities, it remains unclear whether its most recent acquisitions will pay off. For the JW Marriott New Orleans, Sunstone paid $26 million more than was last paid when the property traded in 2008. With hotel occupancy across the nation rising, however, Sunstone could also make out pretty well in the long-term.

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Posted by: Nina Turner

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