FlyerTalk Forums - View Single Post - Century Plaza Hyatt REVIEW - MASTER THREAD - CLOSING 3/1/16
Old Aug 25, 2005, 9:45 am
  #1  
YYZC2
 
Join Date: Dec 2001
Location: YYZ
Posts: 6,138
Century Plaza Hyatt REVIEW - MASTER THREAD - CLOSING 3/1/16

From the Starwood forum:

Westin Century Plaza to become a Hyatt
Sunstone Hotel
Investors, Inc. (NYSE: SHO) and Global Hyatt Corporation announced today that
they have entered into an agreement to acquire the 728-room Century Plaza
Hotel & Spa located in Century City, California. Sunstone has signed an
agreement to acquire the hotel for $293.0 million before expenses and
renovation costs. Sunstone will reposition the hotel as Hyatt Regency Century
Plaza and will immediately embark on a $22.5 million renovation that will
include all guest rooms and common areas and the addition of a Regency level
and Hyatt Regency Club. Sunstone will enter into a long-term management
agreement with Hyatt, during which, Hyatt will provide a limited performance
guarantee that will ensure a return on equity to Sunstone. Sunstone intends
to obtain approximately $175.0 million of debt financing to finance a portion
of the purchase price, which is expected to close in the fourth quarter of
this year. The contract to acquire the Century Plaza Hotel & Spa is subject
to customary closing requirements and conditions. Additional information
regarding the transaction will be provided with the company's SEC form 8-K
filing.
Based upon Sunstone's operating projections and the Hyatt limited
guarantee, the all-in consideration equates to an 11.4x multiple on 2006
EBITDA (reconciliation to net income below).
Robert A. Alter, Sunstone's Chief Executive Officer, stated, "The Century
Plaza Hotel & Spa is an irreplaceable asset located in the heart of Century
City, the premier Westside Los Angeles business address. We are excited to
acquire this landmark Los Angeles hotel. The property will benefit from
Hyatt's brand profile and global distribution network. We look forward to
further expanding our partnership with Hyatt."
"We are extremely pleased to be adding Los Angeles' premier meeting and
convention hotel to Hyatt's Southern California portfolio as well as to our
family of top group properties across the country," said Steve Goldman,
executive vice president, Global Hyatt Corporation. "Additionally, we are
excited about enhancing our relationship with Sunstone and look forward to
partnering with them on future transactions."

About Century Plaza Hotel & Spa
Adjacent to Beverly Hills and minutes from Rodeo Drive, The Century Plaza
Hotel & Spa is Los Angeles' most fashionable address. The AAA Four Diamond
Hotel has hosted heads of state, presidents, celebrities and dignitaries for
over 30 years. The Century Plaza is the premier meetings destination in Los
Angeles with over 141,000 square feet of indoor and outdoor meeting space --
including the largest ballroom in the city. Set amidst seven acres of
beautifully landscaped grounds, the hotel's accommodations feature private
balconies with sweeping views of the Los Angeles skyline and the Pacific
Ocean. The hotel also features Spa Mystique, a 35,000-square-foot, Asian
influenced resort spa that offers guests a unique environment in which to
relax and renew.
YYZC2 is offline