Sunstone Hotel Investors has signed a definitive agreement to sell the 821-room Hyatt Regency San Francisco to funds affiliated with Blackstone Real Estate for $279 million, or $340,000 per room. The price represents 21.4 times hotel adjusted EBITDAre and a 3.5% cap rate on net operating income for the trailing 12 months ended May 31, 2026. Sunstone has already allocated roughly $70 million of the proceeds to repurchase 4.4 million common shares at an average of $9.24 each and 1.4 million combined shares of Series H and Series I preferred stock at an average of $20.37 per share. The transaction is expected to close in late July or early August, and the company is evaluating options for the remaining proceeds to maximize risk-adjusted returns for shareholders.
Sunstone Hotel Investors IncSunstone sells a hotel at a high EBITDA multiple and uses proceeds for share repurchases, enhancing shareholder value.
Blackstone Group IncBlackstone acquires a hotel asset at a favorable cap rate, expanding its real estate portfolio.