Sunstone to buy Maui resort; sets equity offering

|About: Sunstone Hotel Investors... (SHO)|By:, SA News Editor

The 544-room Wallea Beach Marriott Resort & Spa sits on 22 acres and is being purchased by Sunstone Hotel (SHO) for $325.7M, or $598.6K per key.

The price is 16.9x forecasted 2014 EBITDA, and makes for a cap rate of 5.2%.

Funding: The seller - a Blackstone fund - will be issued $60M worth of Sunstone common stock at a price of $14.87 per share (today's closing price), and Sunstone will commence with a public secondary offering of another 18M shares.

Shares -1.5% AH