Aliso Viejo-based Sunstone Hotel Investors (NYSE: SHO) on Thursday completed the sale of the 1,060-room Boston Park Plaza hotel, now a Hilton property, for $370 million, or approximately $350,000 per key.
The real estate investment trust (REIT) first added the hotel to its portfolio in 2013 with plans to reinvigorate the property. Sunstone said Boston Park’s annual earnings have nearly doubled since then and will require additional investment to sustain its value.
“This has been a successful allocation of capital for Sunstone and the sale is consistent with our strategy to actively harvest value and recycle proceeds into new opportunities that will provide superior risk-adjusted returns,” Chief Executive Bryan Giglia said in a statement.
Sunstone still owns a second property in the city, the Marriott Boston Long Wharf.
Giglia added that the company was “currently evaluating opportunities to reinvest the sales proceeds into assets that will provide our investors with higher growth, superior returns, and greater per-share [net asset value] growth.”
Sunstone was No. 18 among Orange County’s largest publicly traded companies in April, ranked by market cap. The firm is currently valued at $1.9 billion with shares up 2.5% at $9.57 during after-hours trading.
