Sunstone Hotel Investors has agreed to sell the Hyatt Regency San Francisco to funds affiliated with Blackstone Real Estate for $279 million. The 821-room hotel is being sold at a valuation of about $340,000 per room, representing a 21.4-times multiple on the property's adjusted EBITDAre and a 3.5% capitalization rate based on net operating income for the 12 months ended May 31, 2026. Sunstone used nearly $70 million of the expected proceeds to buy back common and preferred shares during 2026 and is evaluating additional opportunities to deploy the remaining proceeds. The transaction is expected to close in late July or early August. CEO Bryan A. Giglia said the sale aligns with the company's strategy of actively managing the portfolio to capitalize on higher private market values and recycle proceeds into more accretive options.
Sunstone Hotel Investors IncSunstone sells a hotel at a high valuation and uses proceeds for share buybacks, enhancing shareholder value.
Blackstone Group IncBlackstone acquires a hotel at a favorable cap rate, expanding its real estate portfolio.