Sunstone Hotel Investors (SHO) Sells Hyatt Regency San Francisco to Blackstone (BX) for $279 Million

Sunstone Hotel Investors (NYSE: SHO) announced it will sell the Hyatt Regency San Francisco hotel to Blackstone (NYSE: BX) for $279 million. The transaction is anticipated to close in the third quarter of 2026. Sunstone expects to utilize the net proceeds primarily to repay borrowings under its credit facility and for general corporate purposes. The sale price represents a 6.0% capitalization rate based on the hotel's projected 2026 net operating income. CEO Jeff Palmer noted the divestiture aligns with the company's strategy to enhance its portfolio quality.