Sunstone Hotel Investors Inc. is selling the 821-room Hyatt Regency San Francisco to affiliates of New York-based Blackstone Real Estate for $279 million, or approximately $340,000 per key.
The transaction is expected to close in late July or early August.
“To date, we have successfully redeployed nearly $70 million of the proceeds into the repurchase of our common and preferred stock, at discounts to net asset value and liquidation value,” Chief Executive Bryan Giglia said in a statement.
Aliso Viejo-based Sunstone said it was still evaluating what to do with the remaining proceeds. The sale leaves the company with 13 hotels in its portfolio, including Marriott Long Beach Downtown and Montage Healdsburg.
Shares were unchanged at $11.93 apiece during midday trading with a $2.2 billion market cap (NYSE: SHO).
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