Sunstone Hotel Investors, Inc. (NYSE: SHO) (the “Company”) announced today that it intends to issue 17,500,000 shares of its common stock in a registered public offering. The underwriters will be granted a 30-day option to purchase up to an additional 2,625,000 shares of common stock to cover over-allotments, if any.
The joint bookrunners for this offering are BofA Merrill Lynch and J.P. Morgan.
The Company expects to contribute the net proceeds from this offering to Sunstone Hotel Partnership, LLC, its wholly owned subsidiary (the “Operating Partnership”), in exchange for additional membership interests in the Operating Partnership. The Operating Partnership plans to use those net proceeds from this offering primarily for growth capital expenditures, future acquisitions and other general corporate purposes, including working capital.
The shares of common stock are being offered pursuant to an effective registration statement filed with the Securities and Exchange Commission and may be made only by means of a prospectus. A copy of the prospectus relating to the offering will be filed with the Securities and Exchange Commission and, when available, can be obtained from the offices of BofA Merrill Lynch, 4 World Financial Center, New York, New York 10080, Attn: Prospectus Department or email email@example.com or from J.P. Morgan Securities Inc., Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, telephone: (866) 803-9204.
This communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which the offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that state or jurisdiction.
About Sunstone Hotel Investors, Inc.
Sunstone Hotel Investors, Inc. (“Sunstone”) is a lodging real estate investment trust (“REIT”) that owns 31 hotels comprised of 11,722 rooms. Sunstone’s hotels are primarily in the upper upscale segment and are generally operated under nationally recognized brands, such as Marriott, Hilton, Hyatt, Fairmont and Starwood.
This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” “will” and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: general economic and business conditions affecting the lodging and travel industry, both nationally and locally, including a prolonged U.S. recession; our need to operate as a REIT and comply with other applicable laws and regulations; rising operating expenses; relationships with and requirements of franchisors and hotel brands; relationships with and the performance of the managers of our hotels; the ground or air leases for eight of our hotels; performance of hotels after they are acquired; competition for the acquisition of hotels; competition in the operation of our hotels; our ability to complete acquisitions and dispositions; the need for renovations and other capital expenditures for our hotels; the impact of renovations on hotel operations and delays in renovations or other developments; changes in business strategy or acquisition or disposition plans; our level of outstanding debt, including secured, unsecured, fixed and variable rate debt; financial and other covenants in our debt and preferred stock; volatility in the capital markets and the effect on lodging demand or our ability to obtain capital on favorable terms or at all; and other events beyond our control. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that the expectations will be attained or that any deviation will not be material. All forward-looking information in this release is as of the date hereof, and we undertake no obligation to update any forward-looking statement to conform the statement to actual results or changes in our expectations.
|For Additional Information:|
|Senior Vice President – Corporate Finance|
|Sunstone Hotel Investors, Inc.|
SOURCE Sunstone Hotel Investors, Inc.
Tagged with: 4 World Financial Center • Bank of America • Broadridge Financial Solutions • Forward-looking statement • Hunter (town) New York • J.P. Morgan Securities Inc • Merrill Lynch • Real estate investment trust
Filed under: Real Estate
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