San Clemente-based Sunstone Hotel Investors Inc. priced a $163 million stock offering that will be used to help pay for its buy of the Century Plaza Hotel & Spa in Los Angeles, the company said Thursday.
The company plans to sell 6.7 million shares, including 706,446 shares being sold by stockholders, according to a release.
Sunstone’s share of the stock sale is $146 million, based on the $24.34 offering price set Thursday.
Sunstone shares were flat at $24.35 in trading.
The lead underwriters in the offering, Citigroup Global Markets Inc. and Merrill Lynch & Co., have the option to buy another 1 million shares.
Sunstone is set to use its share of the stock sale to pay for part of its buy of the Century Plaza. In August, Sunstone said it plans to pay $293 million to buy Century Plaza.
Sunstone also is set to spend $22.5 million to renovate the 728-room hotel and turn it into a Hyatt Regency.
Robert A. Alter, Sunstone’s chief executive, recently said that the deal makes for the third high-end hotel that his company has bought under the Hyatt name. The others include the 403-room Hyatt Regency Newport Beach and the Hyatt Regency in Atlanta.
Sunstone will own 61 hotels when the deal closes as expected in the fourth quarter.
