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Get filing alertsSunstone sells San Francisco Hyatt for $279M, repurchases $68M in stock at discount
Filed June 23, 2026 · Period ending June 23, 2026 · ~1 min read
Key Changes
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Agreed to sell 821-room Hyatt Regency San Francisco to Blackstone for $279M ($340K/key), representing 21.4x trailing EBITDA and 3.5% cap rate; closing expected late July or early August 2026.
Item 7.01 — Regulation FD Disclosure verify on EDGAR → -
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Deployed $68.3M of anticipated proceeds to repurchase 4.4M common shares at $9.24/share ($40.5M) and 1.4M preferred shares at $20.37/share ($27.8M), characterized as accretive buybacks at discounts to NAV.
Exhibit 99.1 view on EDGAR → -
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Hotel generated $104.5M revenue and $13.0M adjusted EBITDA for trailing twelve months ending May 31, 2026, with $9.9M net operating income after FF&E reserve.
Exhibit 99.1 view on EDGAR → -
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Management stated sale aligns with strategy to capitalize on higher private market values and recycle proceeds into more accretive opportunities to maximize per-share NAV growth.
Exhibit 99.1 view on EDGAR →
Summary
Sunstone Hotel Investors is selling its largest San Francisco asset, the 821-room Hyatt Regency, to Blackstone for $279 million in a transaction expected to close within six weeks. The $340,000-per-key price represents a 21.4x multiple on the hotel's trailing twelve-month adjusted EBITDA of $13 million and a 3.5% cap rate on its $9.9 million net operating income.
Management characterized the sale as part of an active portfolio management strategy to monetize assets at favorable private market valuations. The company has already deployed $68.3 million of the anticipated proceeds into stock repurchases, buying back 4.4 million common shares at an average $9.24 per share and 1.4 million preferred shares at $20.37 per share.
Management described these buybacks as accretive, executed at discounts to net asset value. The remaining proceeds provide flexibility for additional capital allocation decisions. For retail holders, the transaction converts a lower-yielding asset into cash while the repurchases reduce share count, potentially increasing per-share metrics if the company can redeploy remaining capital into higher-return opportunities.
Section-by-Section Diff
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
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.
Sunstone deployed nearly $70 million of anticipated sale proceeds to repurchase its own stock at discounted prices. The company bought back 4.4 million common shares at an average price of $9.24 per share ($40.5 million total) and 1.4 million preferred shares (Series H and I) at an average price of $20.37 per share ($27.8 million total). Management characterized these repurchases as accretive, buying at discounts to net asset value and liquidation value.
Added in current filing · view on EDGAR →
Trailing Twelve-Months as of May 31, 2026 $ 104,468 $ (2,836) $ 15,867 $ 13,031 $ (3,134) $ 9,897
For the trailing twelve months ending May 31, 2026, the Hyatt Regency San Francisco generated total revenues of $104.5 million, a net loss of $2.8 million, Hotel Adjusted EBITDAre of $13.0 million, and Hotel Net Operating Income of $9.9 million after a $3.1 million FF&E reserve. These metrics underpin the sale price valuation multiples disclosed in the transaction.
Added in current filing · view on EDGAR →
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.
Management stated the sale aligns with a strategy of actively managing the portfolio to realize higher private market values for lower-yielding assets and recycling proceeds into more accretive opportunities. The company is evaluating additional deployment options for the remaining proceeds to maximize risk-adjusted returns and per-share net asset value growth for shareholders.
Event · Item 7.01 — Regulation FD Disclosure
Item 7.01 — Regulation FD Disclosure filed; see Key Changes for terms.
Added in current filing · verify on EDGAR →
The Company expects the transaction to close in late July or early August 2026.
The sale is expected to close in late July or early August 2026, subject to normal closing conditions. The near-term timeline indicates the transaction should complete within approximately $279 million one to two months of the announcement.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jun 23, 2026 · How we verify