Sunstone Sells The Royal Palm Hotel For $130 Million (SHO)

Just about six months after buying the Royal Palm Hotel in Miami Beach for $126.1 million at a foreclosure auction, Sunstone Hotel Investors (NYSE:SHO) has sold the property for $130 million to an affiliate of private equity firm KSL Capital Partners.The hotel will be rebranded as the James Royal Palm, and will be managed by Denihan Hospitality Group. The James hotel brand started in Chicago in 2006 and includes a hotel that opened in New York just last year.Sunstone received $40 million in cash from the sale, and provided a $90 million loan to KSL, which matures in 2013. Should the hotel achieve certain performance benchmarks, Sunstone could earn up to $20 million more in future payments.Sunstone Hotel Investors has a potential upside of 24.7% based on a current price of $9.56 and an average consensus analyst price target of $11.92.Sunstone Hotel Investors is currently below its 50-day moving average (MA) of $10.32 and below its 200-day MA of $9.97.In the last five trading sessions, the 50-day MA has fallen 0.28% while the 200-day MA has remained constant.

Channel: Grab Networks on AOL Video Length: 0s Date Found: Wed, Apr 13 2011 4:33 PM Category: News Date Produced: View Count: 0