Sunstone Hotel Investors has agreed to sell the 821-room Hyatt Regency San Francisco for $279 million, or about $340,000 per key, in a deal with funds affiliated with Blackstone Real Estate.
The price implies a 21.4x multiple on hotel adjusted EBITDAre and a 3.5% cap rate on hotel net operating income for the trailing twelve months ended May 31, 2026.
Before the sale closes, Sunstone said it has already put nearly $70 million of the expected proceeds to work buying back stock. During 2026, the company repurchased 4.4 million common shares at an average price of $9.24 each, spending $40.5 million before expenses. It also bought back 1.4 million combined shares of its Series H and Series I preferred stock at an average price of $20.37, for $27.8 million before expenses.
The company said the transaction is expected to close in late July or early August. Sunstone said it will provide updated guidance in its upcoming quarterly earnings release in early August, including the expected effect of the hotel sale on its full-year outlook. As a result of these announcements, the company's shares have moved 0.29% on the market, and are now trading at a price of $11.895. For the full picture, make sure to review Sunstone Hotel Investors's 8-K report.
