Sunstone Hotel Investors Inc. (NYSE: SHO) is set to acquire the 630-room Hyatt Regency San Antonio Riverwalk for $230 million, or approximately $352,000 per key, from Hyatt Hotels Corp. (NYSE: H).
The Aliso Viejo-based real estate investment trust (REIT) aims to close the deal later this month with Hyatt continuing to manage the property, which recently wrapped up a $37 million renovation.
Sunstone said the purchase would be funded by a portion of proceeds from its October sale of the 1,060-room Boston Park Plaza hotel last year, which went for $370 million to Hyatt, after 10 years of ownership.
The acquisition “demonstrates our ability to accretively recycle capital following our disposition activity late last year,” Chief Executive Bryan Giglia said in a statement.
Giglia expects the addition of the San Antonio hotel, along with Sunstone’s recent renovation of Andaz Miami Beach and conversions of The Westin Washington DC Downtown and the Marriott Long Beach Downtown, “will position Sunstone for significant earnings growth as we move into 2025.”
Sunstone’s current portfolio includes 14 hotels totaling 6,675 rooms. The REIT has a current market cap of $2.2 billion.
