ALISO VIEJO, California—Sunstone Resort Traders, Inc. introduced that it has accomplished the sale of the 252-room Hilton New Orleans St. Charles for a gross sale value of $47 million, or roughly $187,000 per key. The sale value represents a ten.1x a number of on 2024 Resort Adjusted EBITDAre and an 8.7 % cap charge on 2024 Resort Internet Working Earnings. Inclusive of the corporate’s estimate of required near-term capital expenditures, the gross sale value represents a 13.4x a number of on Resort Adjusted EBITDAre and a 6.6 % cap charge on Resort Internet Working Earnings for 2024. The corporate will present extra particulars on the sale, together with the influence on its beforehand offered 2025 outlook, as a part of its second-quarter earnings launch.
In anticipation of the sale of the lodge, the corporate recycled the proceeds from the disposition into extra share repurchases. 12 months thus far as of June 6, 2025, the corporate has repurchased 6.8 million shares of its frequent inventory at a mean buy value of $8.84 per share for a complete repurchase quantity earlier than bills of $60 million.
Bryan Giglia, chief government officer, stated, “We’re happy to announce the disposition of the Hilton New Orleans St. Charles. We have been capable of divest the lodge at enticing pricing, get rid of near-term defensive capital expenditures, and recycle the proceeds right into a higher-yielding funding by way of the repurchase of our inventory at a compelling low cost. New Orleans stays a lovely lodging marketplace for group occasions and leisure journey, and we’ll proceed to profit from publicity to town by way of our possession of the well-located JW Marriott. Whereas we keep the capability to develop the portfolio and are evaluating lodge funding alternatives, the worth we are able to understand by way of the repurchase of our inventory close to present ranges will usually symbolize a extra accretive allocation of capital for our shareholders. Figuring out that the setting is unsure and might change shortly, the group stays nimble and able to pivot between capital allocation alternatives because the panorama evolves from right here.”
