Overview
- A definitive agreement announced Tuesday between Sunstone Hotel Investors and funds affiliated with Blackstone Real Estate sets the gross sale price at $279 million for the 821-room Hyatt Regency San Francisco.
- Sunstone expects the transaction to close in late July or early August and has already used about $70 million of the proceeds to repurchase common and preferred stock.
- Hyatt will remain the hotel manager after the ownership transfer for operational continuity at the property known for its 17‑story atrium, revolving restaurant, and roughly 80,000 square feet of meeting space.
- The sale equates to roughly $340,000 per room, represents a 21.4x multiple on Hotel Adjusted EBITDAre and a 3.5% trailing cap rate, figures Sunstone disclosed in its announcement.
- Blackstone’s buy follows a string of recent Bay Area hotel purchases and signals the firm’s bet that concentrated AI and venture capital activity is lifting business travel and lodging demand in San Francisco.