Sunstone Hotel Investors Sells Hyatt Regency San Francisco for $279M

The sale price reflects a 21.4x multiple on the hotel's adjusted EBITDA and a 3.5% cap rate based on net operating income for the twelve months ending May 31, 2026. Sunstone has already begun reallocating capital from the expected proceeds, investing nearly $70 million into the repurchase of its own common and preferred stock earlier this year. This buyback included 4.4 million common shares at an average price of $9.24 and 1.4 million combined series H and I preferred shares at $20.37 each.

CEO Bryan A. Giglia noted that the divestment aligns with the company’s broader strategy to manage its portfolio actively by capitalizing on private market values. The company intends to use the remaining liquidity to pursue further accretive opportunities. The transaction is slated to close between late July and early August, with detailed financial impacts expected to be disclosed during the company's next quarterly earnings release.