Fairmont Newport Beach Sells For $125 Million

NEWPORT BEACH, CA — On Monday, Sunstone Hotel Investors Inc. announced that the Fairmont Newport Beach was sold for $125 million.

The 444-room Newport Beach area hotel was one of Sunstone's 27 hotels. Listed as a AAA Four Diamond hotel, The Duke Hotel as it is also called, it is adjacent to the John Wayne Airport in Orange County.

"The sale, which is consistent with our capital allocation strategy, monetizes an asset at an attractive valuation, increases our portfolio quality, RevPAR (revenue per available room) and near-term growth prospects and reduces near-term capital needs," said Robert Springer, Sunstone's chief investment officer.

Sunstone is a lodging real estate investment trust that has interests in 27 hotels comprising 13,225 rooms.

Sunstone's hotels are primarily in the urban and resort, upper upscale segment and are operated under nationally recognized brands, such as Marriott, Hilton and Hyatt.