{"id":974617,"date":"2026-06-23T07:35:05","date_gmt":"2026-06-23T11:35:05","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/sunstone-hotel-investors-enters-into-an-agreement-to-sell-hyatt-regency-san-francisco\/"},"modified":"2026-06-23T07:35:05","modified_gmt":"2026-06-23T11:35:05","slug":"sunstone-hotel-investors-enters-into-an-agreement-to-sell-hyatt-regency-san-francisco","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/sunstone-hotel-investors-enters-into-an-agreement-to-sell-hyatt-regency-san-francisco\/","title":{"rendered":"SUNSTONE HOTEL INVESTORS ENTERS INTO AN AGREEMENT TO SELL HYATT REGENCY SAN FRANCISCO"},"content":{"rendered":"
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PR Newswire<\/p>\n<\/p><\/div>\n

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\n ALISO VIEJO, Calif.<\/span>, June 23, 2026<\/span> \/PRNewswire\/ —\u00a0Sunstone Hotel Investors, Inc. (the “Company” or “Sunstone”) (NYSE: SHO) today announced that it has entered into a definitive agreement to sell the 821-room Hyatt Regency San Francisco (the “Hotel”) 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 Hotel Adjusted EBITDAre<\/i> and a 3.5% cap rate on Hotel Net Operating Income for the trailing twelve-month period ending May 31, 2026.<\/p>\n

In anticipation of the sale, the Company deployed nearly $70 million of the sale proceeds into the discounted repurchase of its common and preferred stock during 2026. As part of the accretive buyback activity, the Company repurchased 4.4 million shares of its common stock at an average price of $9.24 per share, for an aggregate repurchase amount before expenses of $40.5 million, and 1.4 million combined shares of Series H and Series I Cumulative Redeemable Preferred stock at an average price of $20.37 per share, for an aggregate repurchase amount before expenses of $27.8 million. The Company is evaluating additional opportunities to deploy the remaining proceeds from the sale in a manner that will provide shareholders with the best risk-adjusted return. The Company expects the transaction to close in late July or early August and will provide additional details regarding the disposition, including the expected impact on the Company’s full year outlook, as part of its upcoming quarterly earnings release in early August.<\/p>\n

Bryan A. Giglia, Chief Executive Officer, stated, “We are pleased to announce the disposition of Hyatt Regency San Francisco and our ability to realize an attractive private market value for a lower yielding asset. To date, we have successfully redeployed nearly $70 million of the proceeds into the repurchase of our 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. While we have already generated value by deploying a portion of the proceeds, the remaining liquidity increases our flexibility and facilitates our ability to reinvest in a manner that will provide our investors with superior returns and greater per-share NAV growth. The Board and management remain committed to maximizing value for shareholders and pursuing any alternative that would reasonably be expected to result in value creation.”<\/p>\n

Eastdil Secured marketed the Hotel and served as exclusive broker for the sale. Additionally, J.P. Morgan Securities LLC continues to serve as financial advisor to the Company.<\/p>\n

\n About Sunstone Hotel Investors<\/b>\n <\/p>\n

Sunstone Hotel Investors, Inc. is a lodging real estate investment trust (“REIT”). Sunstone’s strategy is to create long-term stakeholder value through the acquisition, active ownership, and disposition of well-located hotel and resort real estate. For further information, please visit Sunstone’s website at www.sunstonehotels.com<\/a>.<\/p>\n

\n For Additional Information<\/b>\n <\/p>\n

Aaron Reyes
Chief Financial Officer
Sunstone Hotel Investors, Inc.
(949) 382-3018<\/p>\n

\n Forward-Looking Statements<\/b>\n <\/p>\n

This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” “will” and other similar terms and phrases, including opinions, references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks, uncertainties, and other factors include, but are not limited to, those described in the sections entitled “Special Note Regarding Forward-Looking Statements,” “Risk Factors,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s 2025 Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 27, 2026, and other risks and uncertainties associated with the Company’s business described in its filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All forward-looking information provided herein is as of the date of this release, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.<\/p>\n

This release should be read together with the consolidated financial statements and notes thereto included in our most recent reports on Form 10-K and Form 10-Q. Copies of these reports are available on our website at www.sunstonehotels.com<\/a> and through the SEC’s Electronic Data Gathering Analysis and Retrieval System (“EDGAR”) at www.sec.gov<\/a>.<\/p>\n

\n Non-GAAP Financial Measures<\/b>\n <\/p>\n

We present the following non-GAAP financial measures that we believe are useful to investors as key supplemental measures of our operating performance: hotel earnings before interest expense, taxes, depreciation and amortization for real estate, adjusted as discussed below, or Hotel Adjusted EBITDAre<\/i>; and Hotel Net Operating Income. These measures should not be considered in isolation or as a substitute for measures of performance in accordance with GAAP. In addition, our calculation of these measures may not be comparable to other companies that do not define such terms exactly the same as us. These non-GAAP measures are used in addition to and in conjunction with results presented in accordance with GAAP. They should not be considered as alternatives to net income (loss), cash flow from operations, or any other operating performance measure prescribed by GAAP. These non-GAAP financial measures reflect additional ways of viewing our operations that we believe, when viewed with our GAAP results and the reconciliations to the corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting our business than could be obtained absent this disclosure. We strongly encourage investors to review our financial information in its entirety and not to rely on a single financial measure.<\/p>\n

We present EBITDAre<\/i> in accordance with guidelines established by the National Association of Real Estate Investment Trusts (“Nareit”), as defined in its September 2017 white paper “Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate.” We believe EBITDAre<\/i> is a useful performance measure to help investors evaluate and compare the results of our operations from period to period in comparison to our peers. Nareit defines EBITDAre<\/i> as net income (calculated in accordance with GAAP) plus interest expense, income tax expense, depreciation and amortization, gains or losses on the disposition of depreciated property (including gains or losses on change in control), impairment write-downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in the value of depreciated property in the affiliate, and adjustments to reflect the entity’s share of EBITDAre<\/i> of unconsolidated affiliates.<\/p>\n

We make additional adjustments to EBITDAre<\/i> when evaluating our performance because we believe that the exclusion of certain additional items described below provides useful information to investors regarding our operating performance, and that the presentation of Hotel Adjusted EBITDAre<\/i>, when combined with the primary GAAP presentation of net income, is beneficial to an investor’s complete understanding of our operating performance. In addition, we use both EBITDAre<\/i> and Adjusted EBITDAre<\/i> as measures in determining the value of hotel acquisitions and dispositions.<\/p>\n

We adjust EBITDAre<\/i> for the following items, which may occur in any period, and refer to this measure as Adjusted EBITDAre<\/i>:<\/p>\n