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 industry, has announced that it had finalized the amendments to the agreements governing its unsecured debt in place, including $ 500 million Revolving credit facility, $ 185 million funded term loan facilities and $ 205 million senior notes under private placement. In accordance with the terms of the Amendments, certain restrictions limiting the aggregate value of unencumbered hotel acquisitions that the Company may make during the covenants waiver period have been removed. As a result of the changes, the Company is no longer subject to the restrictive covenant limiting acquisitions not financed by equity capital to a maximum of $ 250 million. In addition, provided that no event of default occurs, the agreement governing the Sunstone Revolving Credit Facility and Funded Term Loans no longer requires a mandatory prepayment of net proceeds received from sales of assets or share issues. Amended unsecured debt agreements continue to provide for a waiver of financial covenants through March 31, 2022, and require compliance with various other restrictions during the covenants waiver period, including maintaining a minimum liquidity threshold.
John Arabia, President and CEO, said, “We are pleased to announce another favorable amendment to our unsecured debt agreements and appreciate the continued support of our long-standing relationships with lenders and noteholders. The amended agreements provide the Company with additional capacity and increased flexibility to pursue In addition, this most recent amendment allows Sunstone to better take advantage of acquisition opportunities that may arise as the industry recovers, without having to depend solely on the need to sell existing assets or raise additional equity. “
About Sunstone Hotel Investors, Inc.
Sunstone Hotel Investors, Inc. is a real estate investment trust (“REIT”). Sunstone’s business consists of acquiring, owning, managing assets and renovating or repositioning hotels considered to be relevant long-term real estate®. For more information, please visit Sunstone’s website at www.sunstonehotels.com.
This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by the use of terms and expressions such as “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “intend to” , “Could”,, “” predict “,” project “,” should “,” will “and other similar words and expressions, 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 actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include , not limited to: the impact of the COVID-19 pandemic on the Company’s business and economy, as well as the response of governments and the Company to the pandemic, and the timeliness and success of vaccines and effective therapies distributed and administered stré; increased risks to employee affairs, including increased employment disputes and claims for severance or other benefits related to termination or time off due to temporary suspensions of hotels or reduction in hotel operations due to COVID-19; general economic and business conditions, including a recession in the United States, trade and tariff disputes, regional or global economic downturns, and any type of flu or illness-related pandemic that impacts travel or the ability to travel, including COVID-19; the need for business travel, including the increased use of business-related technology; increased hotel operating costs due to labor costs, workers compensation and health care costs, utility costs, insurance costs goods and liability, unforeseen costs such as acts of nature and their consequences and other costs which may not be compensated by an increase in tariffs; the land, construction or airspace leases of three of the hotels in which the Company holds an interest as of the date of this press release; the need for renovations, repositionings and other capital expenditures for the Company’s hotels; the impact, including any delays, of renovations and repositioning on hotel operations; a new hotel offering or alternative accommodation options such as timeshare, vacation rental or sharing services such as Airbnb, in the Company’s markets, which could adversely affect its occupancy levels and revenue in its hotels; competition from hotels not belonging to the Company; the relationships with, the requirements, the performance and the reputation of the managers of the Company’s hotels; the relationships with, the requirements and the reputation of the franchisors and the hotel brands of the Company; the Company’s hotels may be impaired, or its hotels that have already suffered impairment may become more so in the future, which may adversely affect its financial condition and results of operations; competition for hotel acquisitions and the Company’s ability to complete acquisitions and disposals; the performance of hotels after their acquisition; changes in the Company’s business strategy or acquisition or disposal plans; the level of indebtedness of the Company, including guaranteed, unsecured, fixed and variable rate debt; financial and other commitments in the debt and preferred shares of the Company; the impact on the Company’s activities of the Company’s potential defaults on its debt contracts or leases; volatility in capital markets and the effect on hospitality demand or the Company’s ability to obtain capital on favorable terms or not at all; the need for the Company to operate as a REIT and to comply with other applicable laws and regulations, including new laws, interpretations or court decisions that may change federal or state tax laws or federal or state tax consequences the qualification of the Company as a REIT; the potential adverse tax consequences in the event that the Company’s operating leases with its taxable REIT subsidiaries are not considered to have been entered into at arm’s length; system security risks, data protection breaches, cyber attacks, including those affecting the Company’s hotel managers or other third parties, and systems integration issues; other events beyond the control of the Company, 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 that the expectations reflected in these forward-looking statements are based on reasonable assumptions, it cannot guarantee that the expectations will be met or that any difference will not be material. All forward-looking information provided in this document is as of the date of this press release, and the Company does not undertake to update any forward-looking statement to conform with the statement to actual results or to changes in the expectations of the Company. .
This press release should be read in conjunction with the consolidated financial statements and accompanying notes included in our most recent reports on Forms 10-K and 10-Q. Copies of these reports are available on our website at www.sunstonehotels.com and through the SEC’s Electronic Data Retrieval and Analysis System (“EDGAR”) at www.sec.gov.
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SOURCE Sunstone Hotel Investors, Inc.