Sunstone Hotel Investors, Inc., the owner of Long-Term Relevant Real Estate, this week announced the sale of the 502-room Renaissance Los Angeles Airport hotel for a gross sale price of $91.5 million, or approximately $182,300 per key — a 12.2x multiple on 2019 Hotel Adjusted EBITDAre and a 6.8 percent capitalization rate on 2019 Hotel Net Operating Income.
“We are pleased to announce the sale of the Renaissance Los Angeles Airport at an attractive valuation compared to pre-COVID levels,” John Arabia, President and CEO, of Sunstone, said in the announcement. “The completed sale further concentrates our portfolio into Long-Term Relevant Real Estate and increases our already considerable liquidity. Our Company is well-positioned to navigate the current environment and to capitalize on opportunities as they arise.”
Sunstone did not disclose the buyer or reveal plans for the property under the direction of its new owners. It’s unlikely that new owners would change much about the hotel, other than a possible reflagging (Renaissance is a Mariott brand). Sunstone in mid-2018 gave the hotel an extensive renovation including a redesigned lobby, brand-new bar and restaurant, completely remodeled meeting spaces, and newly-updated rooms and suites.
