Sunstone Hotel Investors Inc. (NYSE: SHO) will acquire the 630-room Hyatt Regency San Antonio Riverwalk for $230 million, or $352,000 per key, from Hyatt Hotels Corp.
The Aliso Viejo-based real estate investment trust (REIT) aims to close the deal later this month. Hyatt will continue to manage the property, which recently wrapped up a $37 million renovation of its guestrooms.
Sunstone reported using a portion of proceeds from its October sale of the 1,060-room Boston Park Plaza hotel last year, totaling $370 million, to fund the purchase. Additional details of the acquisition will be included in the hospitality firm’s first quarter earnings call next month.
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 recent renovations and conversions of other properties, “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 market cap of $2.2 billion with shares trading at $10.82 during midday.
