IRVINE, Calif., July 8, 2021 /PRNewswire/ -- Sunstone Hotel
Investors, Inc. (the "Company" or "Sunstone") (NYSE: SHO), the
owner of Long-Term Relevant Real Estate® in the hospitality sector,
announced that it has completed amendments to the agreements
governing its in-place unsecured debt, including the Company's
$500 million revolving credit
facility, $185 million of funded term
loan facilities and $205 million of
outstanding private placement senior notes. Pursuant to the terms
of the amendments, certain restrictions limiting the aggregate
value of unencumbered hotel acquisitions that the Company can
complete during the covenant waiver period have been removed.
Following the amendments, the Company is no longer subject to the
restrictive covenant limiting non-equity funded acquisitions to a
maximum of $250 million.
Additionally, provided that an event of default has not occurred,
the agreement governing Sunstone's revolving credit facility and
funded term loans no longer requires a mandatory prepayment from
net proceeds received from asset sales or equity issuances. The
amended unsecured debt agreements continue to provide for a waiver
of the financial covenants through March 31,
2022, and require compliance with various other restrictions
during the covenant waiver period, including the maintenance of a
minimum liquidity threshold.
John Arabia, President and CEO,
stated, "We are pleased to announce another favorable amendment of
our unsecured debt agreements and appreciate the continued support
from our long-standing lender and noteholder relationships. The
amended agreements provide the Company with incremental capacity
and enhanced flexibility to pursue additional Long-Term Relevant
Real Estate acquisitions. In addition, this most recent amendment
positions Sunstone to better take advantage of acquisition
opportunities that may arise as the industry recovers, without
having to solely rely on the need to sell existing assets or raise
additional equity capital."
About Sunstone Hotel Investors, Inc.
Sunstone Hotel Investors, Inc. is a lodging real estate
investment trust ("REIT"). Sunstone's business is to acquire, own,
asset manage and renovate or reposition hotels considered to be
Long-Term Relevant Real Estate®. For further information, please
visit Sunstone's website at www.sunstonehotels.com.
Forward-Looking Statements
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 opinions, 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: the impact the COVID-19 pandemic has on the
Company's business and the economy, as well as the response of
governments and the Company to the pandemic, and how quickly and
successfully effective vaccines and therapies are distributed and
administered; increased risks related to employee matters,
including increased employment litigation and claims for severance
or other benefits tied to termination or furloughs as a result of
temporary hotel suspensions or reduced hotel operations due to
COVID-19; general economic and business conditions, including a
U.S. recession, trade conflicts and tariffs, regional or global
economic slowdowns and any type of flu or disease-related pandemic
that impacts travel or the ability to travel, including COVID-19;
the need for business-related travel, including the increased use
of business-related technology; rising hotel operating costs due to
labor costs, workers' compensation and health-care related costs,
utility costs, property and liability insurance costs,
unanticipated costs such as acts of nature and their consequences
and other costs that may not be offset by increased room rates; the
ground, building or airspace leases for three of the hotels the
Company has interests in as of the date of this release; the need
for renovations, repositionings and other capital expenditures for
the Company's hotels; the impact, including any delays, of
renovations and repositionings on hotel operations; new hotel
supply, or alternative lodging options such as timeshare, vacation
rentals or sharing services such as Airbnb, in the Company's
markets, which could harm its occupancy levels and revenue at its
hotels; competition from hotels not owned by the Company;
relationships with, and the requirements, performance and
reputation of, the managers of the Company's hotels; relationships
with, and the requirements and reputation of, the Company's
franchisors and hotel brands; the Company's hotels may become
impaired, or its hotels which have previously become impaired may
become further impaired in the future, which may adversely affect
its financial condition and results of operations; competition for
the acquisition of hotels, and the Company's ability to complete
acquisitions and dispositions; performance of hotels after they are
acquired; changes in the Company's business strategy or acquisition
or disposition plans; the Company's level of debt, including
secured, unsecured, fixed and variable rate debt; financial and
other covenants in the Company's debt and preferred stock; the
impact on the Company's business of potential defaults by the
Company on its debt agreements or leases; volatility in the capital
markets and the effect on lodging demand or the Company's ability
to obtain capital on favorable terms or at all; the Company's need
to operate as a REIT and comply with other applicable laws and
regulations, including new laws, interpretations or court decisions
that may change the federal or state tax laws or the federal or
state income tax consequences of the Company's qualification as a
REIT; potential adverse tax consequences in the event that the
Company's operating leases with its taxable REIT subsidiaries are
not held to have been made on an arm's-length basis; system
security risks, data protection breaches, cyber-attacks, including
those impacting the Company's hotel managers or other third
parties, and systems integration issues; other events beyond the
Company's control, including climate change, natural disasters,
terrorist attacks or civil unrest; and other risks and
uncertainties associated with the Company's business described in
its filings with the Securities and Exchange Commission. Although
the Company believes the expectations reflected in such
forward-looking statements are based upon reasonable assumptions,
it can give no assurance that the expectations will be attained or
that any deviation will not be material. All forward-looking
information provided herein is as of the date of this release, and
the Company undertakes no obligation to update any forward-looking
statement to conform the statement to actual results or changes in
the Company's expectations.
This release should be read together with the consolidated
financial statements and notes thereto included in our most recent
reports on Form 10-K and Form 10-Q. Copies of these reports are
available on our website at www.sunstonehotels.com and through the
SEC's Electronic Data Gathering Analysis and Retrieval System
("EDGAR") at www.sec.gov.
For Additional Information:
Bryan Giglia
Sunstone Hotel Investors, Inc.
(949) 382-3036
Aaron Reyes
Sunstone Hotel Investors, Inc.
(949) 382-3018
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SOURCE Sunstone Hotel Investors, Inc.