Sunstone Hotel Investors sells its 821-room Hyatt Regency San Francisco to Blackstone for $279 million. Deal includes share buyback plans; closing expected later this year.
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Sunstone Hotel Investors agreed to sell the 821-room Hyatt Regency San Francisco to funds managed by Blackstone Real Estate for $279 million, the company said. The all-cash transaction is expected to close later this year.
Sunstone plans to use proceeds from the sale for share repurchases, though it did not specify the amount or timeline. The deal values the property at about $340,000 per key.
The Hyatt Regency has faced headwinds from San Francisco's slow tourism recovery. Hotel occupancy in the city remains below pre-pandemic levels, a challenge that has pressured asset values. Sunstone, a real estate investment trust focused on upper-upscale properties, has been shifting its portfolio toward markets with stronger growth.
Blackstone has been an active buyer in the lodging sector. The firm's real estate arm manages roughly $336 billion globally. Hotel REITs have been selling assets to reduce debt and return capital as interest rates stay elevated.
The sale is subject to customary closing conditions.
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