Sunstone Hotel Investors lowers price range for tender offer ending June 27; soft market to blame

By Lisa Kerner

Charlotte, N.C., June 16 - Sunstone Hotel Investors, Inc. amended the price range of its previously announced modified Dutch auction tender offer to purchase up to 6.2 million shares, or about 11%, of its common stock to a price not less than $16.75 and not greater than $19.25 per share.

The prior offer for the same amount of shares was not less than $18.65 and not greater than $21.15 per share, a company news release said.

Sunstone Hotel Investors chief financial officer Ken Cruse attributed the adjustment to "recent softness in lodging stocks."

"We believe repurchasing our shares at this time is in the best interest of our shareholders, as we feel our stock is significantly undervalued," Cruse added.

The tender is slated to end at midnight ET on June 27, unless extended, Sunstone Hotel Investors said.

Sunstone Hotel Investors (NYSE: SHO) closed at $18.52 on June 13.

J.P. Morgan Securities Inc. is the dealer manager for the tender offer, and D.F. King & Co., Inc. is the information agent. The depositary is American Stock Transfer & Trust Co.

Sunstone Hotel Investors is a lodging real estate investment trust based in San Clemente, Calif.

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