Aliso Viejo-based Sunstone Hotel Investors Inc. has completed its sale of a Miami hotel for $130 million.
Sunstone, which owns all or part of 32 hotels, sold the Royal Palm Hotel to Denver-based private equity firm KSL Capital Partners LLC.
The hotel sold for $318 per room.
Sunstone bought the hotel in 2010 for $117 million. It could get an additional $20 million if the hotel meets expectations.
The sale is part of a shift by Sunstone away from boutiques to focus on hotels that cater to businesspeople and conventioneers.
Along with proceeds from a recent stock offering, Sunstone plans to use money from the sale of the Royal Palm for acquisitions.
The sale reflects a “divesting of high-end boutiques and transitioning to high-quality, branded, convention-style hotels,” Sunstone President Ken Cruse said.
Last week, the company raised $115 million before fees with an offering of 4 million shares of redeemable preferred stock.
The shares come with guaranteed dividends and give Sunstone the option to buy them back starting in 2016.
Sunstone earlier this month struck a $475 million deal for the 1,190-room Hilton San Diego Bayfront at the end of last month. The buy is expected to close later this quarter.
The deal gives Sunstone a 75% stake in the hotel.
