Press Release
December 16, 2013

Goodwin Advises Two REITs on Significant Hotel Acquisitions

Goodwin Procter attorneys in the firm’s Hospitality & Leisure Practice have advised clients Sunstone Hotel Investors, Inc. (Sunstone) and American Realty Capital New York Recovery REIT, Inc. (NYRR) on acquisitions of hotels in San Francisco and New York City, respectively. The two transactions have a combined value in excess of $411 million. The practice has advised on hotel deals worth more than $1.2 billion since the end of May.

Sunstone, a REIT based in Aliso Viejo, Calif., acquired the 802-room Hyatt Regency on the Embarcadero located in the heart of San Francisco, Calif. The acquisition, which closed on December 2, was valued at $262.5 million. In July, Goodwin attorneys advised the company on its acquisition of the landmark Boston Park Plaza hotel.

NYRR, located in New York City, announced they have acquired a leasehold interest in the newly constructed Viceroy New York. The hotel, located in midtown Manhattan on West 57th Street, was acquired for $148.5 million, exclusive of closing costs. The hotel opened its doors in October 2013 and has 240 rooms and 29 floors.

Sunstone Hotel Investors, Inc. is a lodging real estate investment trust that has interests in 29 hotels comprised of 13,744 rooms. Sunstone's hotels are primarily in the upper upscale segment and are generally operated under nationally recognized brands, such as Marriott, Hilton, Hyatt, Fairmont and Sheraton.

American Realty Capital New York Recovery REIT, Inc. is a publicly registered non-traded real estate investment trust which primarily targets for investment quality, income-producing commercial real estate with a focus on office and retail properties located in the New York metropolitan area at a discount to replacement cost and with potential for value increases.

The Sunstone and NYRR acquisitions follow the Hospitality & Leisure Practice’s active summer in which they advised on more than 13 transactions with a combined value in excess of $800 million.

The Goodwin team advising Sunstone was led by partner Ben Tschann and included Wendy Rutter.

The Goodwin team advising NYRR was led by partner Sam Richardson and included Patrick Hurley, Tim Courville, Reade Everett and Eric Roth.