Sunstone Hotel Investors Inc, a hotel industry investing firm, has purchased the Hilton New Orleans Hotel on St. Charles Avenue for $59.4 million and has also entered into contract to buy the famous Boston Park Plaza and Towers in Back Bay, Boston, for around $250 million. The firm announced the transactions in its first quarter results ended March 31, 2013.
Sunstone stated that by acquiring the hotels, it hopes to utilize the opportunities in the strong commercial markets of Boston and New Orleans. As demand grows gradually and supply is constrained, the company hopes that the acquisitions will help it reap sustainable and better profits. Currently, four of its hotels are under renovation, which are likely to be completed in the coming few months.
"Looking ahead, industry occupancies are now at or above prior peak levels in many markets, demand is gradually improving and supply trends remain muted. With the substantial completion of our 2013 renovation program, the continued improvement of our balance sheet and the addition of two quality hotels with clear long-term value-add opportunities, Sunstone is well positioned for continued growth," Ken Cruse, chief executive of Sunstone, said in the statement.
The Hilton New Orleans is a part of the Hilton Hotels chain. Located at 333 St. Charles Avenue, the hotel tower spans a height of 246 feet and has 20 stories. The hotel has 250 superior guest rooms, 25 dignitary and five-bedroom grand suites. It has more than 15000 square feet of recreation space to accommodate large functions, conventions and weddings too.
Boston Park Plaza Hotel & Towers
The Boston Park Plaza Hotel and Towers has been dubbed "a city within a city" by the National Trust for Historic Preservation. It's one of the most popular landmarks of Boston. Located in the commercial area of Back Bay, the hotel is a large 155 feet structure with more than 65000 square feet of recreation area. The hotel has 1053 luxury guest rooms and eight on-site restaurants.
