Sheraton Madrid Opens, Part of $6 Billion Global Expansion

---

Starwood Hotels & Resorts Worldwide, Inc. recently unveiled the Sheraton Hotels & Resorts brand in Madrid, Spain, with the opening of the Sheraton Madrid Mirasierra Hotel & Spa.

Owned by Comercial Mirasierra Group, the hotel is part of Starwood's strategic $6 billion expansion plan to open more than 60 Sheraton hotels around the world in the next three years.

The recent addition to Sheraton Madrid now gives Starwood 400 hotels in 70 countries around the world. The $6 billion expansion plan comes on the heels of Starwood completing a $6 billion global revitalization of the Sheraton brand.

"We are delighted to partner with Comercial Mirasierra Group as we debut the Sheraton brand in Madrid, an important business and leisure travel destination," said Roeland Vos, President, Starwood Hotels & Resorts, Europe, Africa and the Middle East. "The Sheraton Madrid Mirasierra is a wonderful addition to Sheraton's global portfolio. This hotel further underlines Starwood's commitment to continued growth in Spain."

Located in the residential area of Mirasierra near the buzzing city center, the Sheraton Madrid Mirasierra Hotel & Spa comprises 180 spacious guest rooms, each featuring the brand's signature all-white Sheraton Sweet Sleeper bed, an all-day dining restaurant, lobby bar, terrace lounge and pool bar. The hotel also offers Sheraton Fitness programmed by Core Performance, a spacious spa as well as an indoor and outdoor pool. For business travelers, the hotel features a fully-equipped business center and over 13,000 square feet of meeting space including a ballroom of approximately 9,000 square feet and eight meeting rooms.

"The Sheraton Madrid Mirasierra is emblematic of our continued focus to grow the Sheraton brand's already robust presence globally by working with our proven development partners to ensure we have best-in-class properties wherever our guests want to travel," said Hoyt H. Harper II, Global Brand Leader, Sheraton Hotels & Resorts.

Located only 15 minutes from Barajas Airport, adjacent to "Cuatro Torres" and close to the IFEMA Congress and Convention Center, the Sheraton Madrid Mirasierra is a conversion of the well-known Mirasierra Suites Hotel.

Starwood currently has 16 hotels throughout Spain under seven of its nine distinct and compelling brands. These hotels include W Barcelona, the venerable Westin Palace in Madrid, the luxurious St. Regis Mardavall, the world-famous Marques de Riscal, Le Meridien Ra, and luxurious Sheraton golf resorts in the Canaries and Majorca.

Starwood is also investing heavily into restoring some of its most iconic properties including Hotel Alfonso XIII in Seville which recently re-opened following a meticulous 20 million euro renovation and Hotel Maria Cristina in San Sebastian which is scheduled to re-open this autumn.

Starwood Hotels & Resorts Worldwide now totals 1,103 properties in nearly 100 countries.

---

Sunstone Sells Marriott Del Mar, Acquires Hyatt Chicago

The well-known Wyndham Chicago is under new ownership.

Sunstone Hotel Investors, Inc. (NYSE: SHO), a real estate investment trust out of Aliso Viejo, Calif., recently closed on the $88.4 million transaction and announced June 4 it was rebranding the 417-room hotel the Hyatt Chicago Magnificent Mile. As part of the acquisition, Sunstone issued 5.45 million shares of common stock to the seller, the Blackstone Group, valued at $58.4 million ($10.71/share) at the time the transaction was announced.

The balance of the acquisition was funded with cash on hand.

Meanwhile, Sunstone announced it has entered into a purchase and sale agreement to sell the 284-room Marriott Del Mar for a contractual purchase price of $66 million ($232,000/key). The contractual sale price represents a 13.7 multiple on 2012 forecasted hotel EBITDA of $4.8 million and a 5.9 percent capitalization rate on 2012 forecasted hotel net operating income.

The transaction, subject to customary closing conditions, including the assumption of the existing $47.2 million mortgage, is expected to close on or around June 30, 2012. During the company's anticipated 2012 ownership period, the Marriott Del Mar is expected to generate approximately $2.1 million of hotel EBITDA.

Upon completion of the sale and assumption of the mortgage debt by the buyer, Sunstone expects to receive net proceeds, before customary transaction costs and credits, of approximately $19 million.

"We are pleased to announce the pending sale of the Marriott Del Mar and the closing of our previously announced purchase of the Hyatt Chicago Magnificent Mile," said Sunstone president/CEO Ken Cruse. "Consistent with our stated business plan, by divesting of a highly-levered, sub-market hotel and acquiring an unencumbered, high-quality central business district hotel, we have improved our portfolio quality and growth profile while deleveraging our balance sheet.

"We may look to opportunistically sell additional non-core assets in transactions that help advance our portfolio quality and balance sheet objectives. In accordance with our corporate practice, we will announce any future dispositions after receiving a non-refundable deposit from the buyer and when we believe the probability of closing is high."

Sunstone Hotel Investors, Inc, is a lodging real estate investment trust has interests in 32 hotels comprised of 13,341 rooms. Sunstone's hotels are primarily in the upper upscale segment and are generally operated under nationally recognized brands such as Marriott, Hilton, Fairmont, Hyatt and Sheraton.