Posted on: March 16 2011 | Posted in: Latest NewsNew owners believe New Orleans is on the upswing.
Wednesday, March 16, 2011
Greg LaRose, Editor
The JW Marriott New Orleans on Canal Street has new owners. According to Chaffe & Associates, which provides merger and acquisition data for CityBusiness, Sunstone Hotel Investors purchased the 494-room hotel last month for $93.8 million or approximately $190,000 per room.
The sellers were Starr International Co., an international financial conglomerate, and Clearview Hotel Capital, a hotel investment and advisory company based in Newport Beach, Calif.
The sales price represents a $26.3 million premium over a 2008 deal, which valued the property at $67.5 million. The amount is also nearly 13 times the hotel’s 2010 operating results, said Keith Cruse, Sunstone president
Sunstone executives say they believe they are getting into the New Orleans market on the upswing. In 2010, revenue per available room in the New Orleans market grew more than 17 percent and ranked first out of the U.S. top 25 markets.
Sunstone is a Southern California-based real estate investment trust that owns 33 hotels under the Fairmont, Hilton, Hyatt, Marriott, Sheraton, Starwood and Renaissance banners. The publicly traded company reported $1.17 billion in market capital and $38.54 million in net income at the end of 2010.