Sunstone Hotel Investors has agreed to sell the Hyatt Regency San Francisco to funds affiliated with Blackstone Real Estate for $279 million, or about $340,000 per key. The 821-room hotel sale is expected to close in late July or early August. Sunstone plans to use $70 million of the proceeds to repurchase company stock, with CEO Bryan Giglia stating the deal aligns with the REIT's strategy to capitalize on higher private market values and recycle proceeds into more accretive options. The transaction comes as hotel players eye more deals in the San Francisco market, partly driven by the area's artificial intelligence boom.
Sunstone Hotel Investors IncSunstone sells a hotel for $279M, using $70M for stock buybacks, aligning with its strategy to recycle proceeds into accretive options.
Blackstone Group IncBlackstone acquires a hotel asset at a price indicating strong private market values, which is positive for its real estate portfolio.