Business Context and Reporting Period
This Form 8-K Current Report was filed by Sunstone Hotel Investors, Inc. on December 2, 2013. The filing reports the completion of a significant asset acquisition by a wholly-owned subsidiary of the Company.
Key Financial Metrics
- Acquisition Price: $262.5 million gross purchase price.
- Asset Details: 802-room Hyatt Regency San Francisco hotel.
- Price Per Key: Approximately $327,000.
- Funding Source: Proceeds from the Company's common stock issuance on November 1, 2013.
- Operating Structure: The hotel will continue to be operated by Hyatt Corporation under an operating lease with a typical management fee structure.
The filing does not provide specific revenue, profit, cash flow, margin, debt, or liquidity metrics for the Company or the acquired asset at this time.
Material Changes
The primary material change is the addition of the Hyatt Regency San Francisco to the Company's portfolio. There are no material relationships between the Seller and the Buyer or the Company, other than the transaction itself.
Guidance, Outlook, and Contingencies
Financial Statements: The financial statements of the business acquired and the pro forma financial information required by Item 9.01 are currently being prepared. The Company intends to file these documents under a Form 8-K/A amendment no later than 71 calendar days after the filing of this initial report.
Outlook: No specific forward-looking guidance or management commentary regarding future performance was included in this specific filing.
Investor Verification Checklist
- Verify the final financial statements of the Hyatt Regency San Francisco once filed in the upcoming Form 8-K/A.
- Review the pro forma financial information to understand the impact of the acquisition on the Company's consolidated results.
- Confirm the terms of the operating lease and management fee structure with Hyatt Corporation.
- Monitor the Company's capital structure following the November 1, 2013, common stock issuance used to fund this deal.