IRVINE, Calif., March 7, 2022 /PRNewswire/ -- Sunstone Hotel
Investors, Inc. (the "Company" or "Sunstone") (NYSE: SHO), the
owner of Long-Term Relevant Real Estate® in the hospitality sector,
today announced that it has notified its unsecured lenders of its
election to terminate the covenant relief period associated with
the amended debt agreements governing its Revolving Credit
Facility, Term Loan Facilities and Senior Unsecured Notes. The
termination of the covenant relief period follows the Company's
satisfaction of the financial covenants for the quarter ended
December 31, 2021. The Company will
now be required to satisfy a modified set of financial covenants
for the following five quarters, after which, the original
covenants prior to the debt agreement amendments will be
reinstated. Upon termination of the covenant relief period, the
Company is now no longer subject to the additional restrictions on
debt issuance and repayment, capital investment, share repurchase,
and dividend distributions that were imposed as part of the
covenant relief debt agreement amendments.
Bryan Giglia, Chief Executive
Officer stated, "Our fourth quarter earnings, combined with our
low-levered balance sheet, allowed us to exit the covenant relief
period early. This is an important milestone in our continued path
to recovery which significantly enhances our capital allocation
flexibility. Over the coming quarters, as our earnings return
closer to pre-pandemic levels, we will gain additional leverage
capacity that will further bolster our ability to execute on our
business plan and grow per share earnings and NAV."
About Sunstone Hotel Investors
Sunstone Hotel Investors, Inc. is a lodging real estate
investment trust ("REIT"). Sunstone's strategy is to create
long-term stakeholder value through the acquisition, active
ownership, and disposition of hotels considered to be Long-Term
Relevant Real Estate®. For further information, please visit
Sunstone's website at www.sunstonehotels.com.
For Additional Information
Aaron Reyes
Chief Financial Officer
Sunstone Hotel Investors, Inc.
(949) 382-3018
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SOURCE Sunstone Hotel Investors, Inc.