San Clemente-based hotel owner Sunstone Hotel Investors Inc. is up for sale with Bear Stearns taking bids on the company, according to a report by London-based market tracker dealReporter.
Sunstone is being shopped at about $1.6 billion, according to the report. Whether a deal goes through at that price is questionable given the tight credit market, sources told dealReporter.
The company had a recent market value of about $1.2 billion.
Potential buyers include Maryland’s Host Hotels & Resorts Inc. and Boston Properties Inc. of Boston.
New York-based Blackstone Group LP looked at the company and passed, according to the report.
Sunstone owns 45 hotels with 15,625 rooms.
The company’s Southern California hotels, which include the Fairmont Newport Beach and Hyatt Regency Century Plaza, two Marriots in Boston and Sunstone’s stake in Doubletree Times Square are considered appealing to buyers, the report said.
In recent years, Sunstone has gone after more upscale hotels.
Sunstone has gone private before. After going public in 1995, Sunstone went private in a buyout a few years later before going public again in 2004.
Bob Alter, who founded the company and has led Sunstone for most of its existence, is back as interim chief executive after the recent departure of Steven R. Goldman as president of global real estate and development for Hilton Hotels Corp.
Alter earlier stepped back as chairman. The company is searching for a permanent chief.
