Sunstone Hotel Investors has entered into a definitive agreement to sell the 821-room Hyatt Regency San Francisco to funds affiliated with Blackstone Real Estate for a gross sale price of $279 million, or approximately $340,000 per key. The sale price represents a 21.4x multiple on Hotel Adjusted EBITDAre and a 3.5% cap rate on Hotel Net Operating Income for the trailing twelve-month period ending May 31, 2026. In anticipation of the sale, the company deployed nearly $70 million of the proceeds into discounted repurchases of its common and preferred stock during 2026, including 4.4 million common shares at an average price of $9.24 per share and 1.4 million combined Series H and Series I preferred shares at an average price of $20.37 per share. The transaction is expected to close in late July or early August, and the company is evaluating additional opportunities to deploy the remaining proceeds for the best risk-adjusted return.
Sunstone Hotel Investors IncSunstone is selling the Hyatt Regency San Francisco at a 21.4x EBITDA multiple and using proceeds for stock buybacks, which is positive for shareholders.
Blackstone Group Inc