Sunstone agrees deal to sell San Francisco hotel for $279 million
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- Sunstone Hotel Investors agreed to sell the Hyatt Regency San Francisco to Blackstone Real Estate for $279 million.
- Following the property disposal announcement, the company's stock price traded down at $11.84.
- The company expects the transaction to close during late July or early August 2026.
Sunstone Hotel Investors (NYSE:SHO) agreed to sell the Hyatt Regency San Francisco to Blackstone Real Estate for $279 million.
The transaction price translates to approximately $340,000 per key for the 821-room hospitality asset.
The agreed value reflects a 21.4x multiple on the hotel's adjusted EBITDAre metric.
The deal also represents a 3.5% capitalization rate on trailing twelve-month net operating income through May 31, 2026.
Following the announcement, Sunstone Hotel Investors' share price was down at $11.84.
The company stated that nearly $70 million of expected proceeds were already used to repurchase shares in 2026.
The company expects the real estate transaction to officially close in late July or early August 2026.
