Sunstone Acquires Remaining 25% Interest in Hilton San Diego Bayfront

Sunstone Hotel Investors, Inc. has announced an agreement with Park Hotels and Resorts Inc. to acquire its 25% interest in the joint venture that owns the leasehold interest in the Hilton San Diego Bayfront Hotel. Sunstone will pay Park $102 million in cash and assume Park’s $55 million share of the existing mortgage, and following the acquisition, will own 100% of the venture’s interests in the property.

The purchase price implies a $628 million value for the Hilton San Diego Bayfront, or $527,700 per key. Sunstone anticipates the transaction will close in the 2nd quarter of this year, and expects to fund the purchase primarily from borrowing on its revolving credit facility.

Sunstone’s CEO Bryan Giglia said in a news release, “We are pleased to announce our acquisition of the remaining 25% joint venture interest in the Hilton San Diego Bayfront. This is a well located, high quality asset in a premier convention and leisure market.”