SUNSTONE HOTEL INVESTORS ANNOUNCES THE DISPOSITION OF HILTON NEW ORLEANS ST. CHARLES

Recycles Sale Proceeds into Accretive Share Repurchases

ALISO VIEJO, Calif., June 9, 2025 /PRNewswire/ -- Sunstone Hotel Investors, Inc. (the "Company" or "Sunstone") (NYSE: SHO) today announced that it has completed the sale of the 252-room Hilton New Orleans St. Charles (the "Hotel") for a gross sale price of $47 million, or approximately $187,000 per key. The sale price represents a 10.1x multiple on 2024 Hotel Adjusted EBITDAre and an 8.7% cap rate on 2024 Hotel Net Operating Income. The Company anticipates that the Hotel will require a cyclical renovation to maintain its competitive position and sustain its current level of earnings. Inclusive of the Company's estimate of required near-term capital expenditures, the gross sale price represents a 13.4x multiple on Hotel Adjusted EBITDAre and a 6.6% cap rate on Hotel Net Operating Income for 2024. The Company will provide additional details on the sale including the impact to its previously provided 2025 outlook as part of its second quarter earnings release.  

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