Sunstone Hotel Investors Inc. has announced the completion of its sale of the Hilton New Orleans St. Charles for $47 million, equating to approximately $187,000 per room. This transaction represents a 10.1x multiple on the hotel's 2024 Adjusted EBITDAre and an 8.7% cap rate on its Net Operating Income. The sale allows Sunstone to avoid necessary near-term renovations and reinvest the proceeds into share repurchases, enhancing shareholder value. Bryan Giglia, the CEO, expressed satisfaction with the sale, emphasizing the strategic repositioning of assets and the continued interest in the New Orleans market through the company's ownership of the JW Marriott.
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