Among
the noteworthy deals of the past week was Certares’ acquisition of Hilton New
Orleans St. Charles from Sunstone Hotel Investors for $47 million.
NEW ORLEANS
— New York City-based Certares has acquired the 252-key Hilton New Orleans St.
Charles for $47 million, according to NOLA.com. Aliso Viejo, California-based
REIT Sunstone Hotel Investors announced earlier this week that it had sold the
property.
It’s the
15th hotel purchased by Certares since it started building its portfolio in
early 2023.
The sale
price represents a 10.1x multiple on 2024 hotel adjusted EBITDAre and an 8.7%
cap rate on 2024 hotel net operating income.
Sunstone anticipates the hotel
will require a cyclical renovation to maintain its competitive position and
sustain its current level of earnings. Inclusive of the company’s estimated
required near-term capital expenditures, the gross sale price represents a
13.4x multiple on hotel adjusted EBITDAre and a 6.6% cap rate on hotel net
operating income for 2024.
To download
our list of deals from the past week in Excel format, click here.