SaleJun 23, 2026, 07:41 AM
Sunstone Sells Hyatt Regency San Francisco for $279M
AI Summary
Sunstone Hotel Investors, Inc. 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. This transaction represents a 21.4x multiple on Hotel Adjusted EBITDAre and a 3.5% cap rate on Hotel Net Operating Income. The company has already redeployed nearly $70 million of the proceeds into discounted repurchases of its common and preferred stock and plans to evaluate additional opportunities for the remaining proceeds.
Key Highlights
- Sunstone Hotel Investors agreed to sell the 821-room Hyatt Regency San Francisco.
- Gross sale price is $279 million, or approximately $340,000 per key.
- The buyer is funds affiliated with Blackstone Real Estate.
- The sale represents a 21.4x multiple on Hotel Adjusted EBITDAre.
- The sale represents a 3.5% cap rate on Hotel Net Operating Income.
- Nearly $70 million of sale proceeds were used for discounted share repurchases.
- Repurchased 4.4 million common shares at an average price of $9.24 per share.
- Repurchased 1.4 million preferred shares at an average price of $20.37 per share.
- Transaction is expected to close in late July or early August 2026.
Price Impact
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