Sunstone Closes $420M Renaissance Deal

Along with the closing of the deal, Sunstone closed on the previously announced financing of four separate fixed-rate loans totaling $250 million. One part of Sunstone's Renaissance acquisition that has yet to close is its purchase of the remaining 75% of the 807-room Renaissance Washington in Washington, DC. In its initial deal with Marriott, Sunstone acquired a 25% interest in the DC hotel. Later, it acquired the remaining 75% interest. The company expects to close in July on its acquisition of that remaining 75% interest.

Robert A. Alter, CEO of Sunstone, called the closing of the Renaissance portfolio an important step in the company's plan to concentrate its holdings in major, high barrier-to-entry markets, to diversify geographically and to focus on upscale properties. With the closing of the deals, Sunstone now has ownership interests in 60 hotels with an aggregate of 16,686 rooms, primarily in the upscale segments. Its properties are operated under franchises owned by national brands including Marriott, Hilton, InterContinental, Hyatt and Fairmont.