Sunstone Sells Orange County Hotel for $125M
- Feb 15, 2017
Newport Beach, Calif.—Sunstone Hotel Investors Inc. announced the sale of the Fairmont Newport Beach hotel to Marriott for $125 million. Eastdil Secured acted as exclusive advisor to Sunstone on the sale.
Renamed The Duke Hotel Newport Beach, the 444-key asset comprises 10 floors, 411 rooms and 33 suites. Amenities include 17 meeting rooms at 23,498 square feet, a fitness center, tennis court, outdoor pool, spa, a business center, two ballrooms, two restaurants, an airport shuttle and the Bamboo Garden, a 10,000-square-foot outdoor function space that is adjacent to the ballrooms and includes a water feature, fireplace and fire pit. The property is 1.2 miles from John Wayne Airport and 4.2 miles from the Fashion Island shopping center.
“We are pleased to announce the sale of the Fairmont Newport Beach which in 2016 produced RevPAR nearly 25 percent below our portfolio average,” said Robert Springer, chief investment officer of Sunstone, in prepared remarks. “The sale, which is consistent with our capital allocation strategy, monetizes an asset at an attractive valuation, increases our portfolio quality, RevPAR and near-term growth prospects and reduces near-term capital needs.”
Image courtesy of The Duke Hotel Newport Beach