Interstate Hotels & Resorts, announced that it has acquired Sunstone Hotel Properties, Inc.…
Interstate Hotels & Resorts, announced that it has acquired Sunstone Hotel Properties, Inc., the manager of 54 hotels, including 50 hotels owned by Sunstone Hotel Investors, Inc., a newly formed real estate investment trust (REIT).
The two companies had announced earlier that Interstate would acquire the company upon the REIT successfully completing its initial public offering, which occurred October 26, 2004. Publicly traded REITs are required by law to have their hotels managed by third-party operators.
Sunstone`s senior operating team will become part of Interstate`s operating team and will remain in their existing San Clemente, Calif. offices. No personnel changes are anticipated in the organization or at the hotels, and the transaction is expected to be essentially transparent to current Sunstone hotel employees.
Sunstone`s properties fit well with our existing portfolio of managed hotels, said Steve Jorns, Interstate`s chief executive officer. In addition, we look forward to expanding our relationship with Sunstone as the company acquires new properties.
The 54 hotels comprise 12,643 rooms in 16 states and are primarily upper-upscale and upscale properties located in the Western portion of the country. The hotels include 24 Marriott-branded hotels, 16 InterContinental-branded hotels, eight Hilton-branded hotels and three independent hotels. With the addition of this portfolio, Interstate now operates 307 hotels.
While we have had a West Coast presence, this transaction enhances our already significant economies of scale, enabling us to operate even more effectively and efficiently, Jorns noted.
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