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Sunstone Hotel Trades San Francisco Property to Blackstone for $279M
Sunstone Hotel Investors, Inc. said Tuesday it has agreed to sell the 821-key Hyatt Regency San Francisco to funds affiliated with Blackstone Real Estate for a gross sale price of $279 million, or approximately $340,000 per key. The sale price represents a 21.4x multiple on adjusted EBITDA and a 3.5% cap rate on hotel NOI for the trailing 12-month period ending May 31, 2026.
Bryan A. Giglia, CEO of Sunstone, said the company redeployed $70 million of sale proceeds into the repurchase of its common and preferred stock, “at discounts to net asset value and liquidation value. The sale is consistent with our strategy of more actively managing the portfolio to capitalize on higher private market values and recycle the proceeds into more accretive options on a risk-adjusted basis.”
Eastdil Secured marketed the hotel and served as exclusive broker. J.P. Morgan Securities LLC continues to serve as financial advisor to Sunstone.
- ◦Sale/Acquisition
