Southern California-based Sunstone Hotel Investors has recently completed a deal to acquire the Hyatt Regency San Francisco for $262.5 million. It is the only Four-Diamond downtown hotel in the city and sits directly on the Embarcadero waterfront, close to a multitude of shopping, dining and entertainment options. Boasting 802 rooms in total, Sunstone paid around $327,600 for each.
"We are pleased to add the well-located Hyatt Regency San Francisco hotel to our portfolio,” said CEO of Sunstone Hotel Investors Ken Cruse. “The hotel is located in the heart of San Francisco's Central Business District and is anticipated to benefit from San Francisco's favorable supply and demand dynamic as well as the over three million square feet of additional office space under construction within a five block radius of the hotel.”
The purchase became possible from an issuance of common stock on November 1, 2013. “As we match-funded this acquisition with proceeds from an equity offering,” Cruse explained, “this transaction is highly consistent with our stated plan to improve the quality and scale of our portfolio while gradually de-leveraging our balance sheet." In addition to the Hyatt Regency San Francisco, Sunstone also has interest in 29 upscale hotel properties under brands including Marriott, Hilton, Fairmont and Sheraton.