Sunstone Hotel Investors Inc. (NYSE: SHO) announced today an agreement with a Virginia-based Park Hotels & Resorts Inc. affiliate to acquire the remaining 25% joint venture interest in the Hilton San Diego Bayfront.
The Irvine-based real estate investment trust (REIT) will pay Park Hotels $102 million in cash to assume its $55 million share of the existing mortgage loan on the 1,190-room Hilton.
Including the in-place debt, the purchase price represents a $628 million value for the Hilton Bayfront, or $527,700 per key, officials said.
The REIT anticipates closing the acquisition by the end of the second quarter for 2022.
“The hotel is in excellent physical condition, and with the recent addition of new meeting space, a refreshed lobby, and enhanced food & beverage offerings, the hotel is well positioned to benefit from strong leisure travel and recovering business transient and corporate group demand,” Chief Executive Bryan Giglia said in a statement.
The acquisition follows Sunstone’s recent exit from the Chicago market and its $232 million purchase of the Confidante Miami Beach. In May, the firm reported net income of $15 million for the first quarter compared to a net loss of $55 million a year ago.