Sunstone Hotel Investors on Monday completed the previously announced acquisition of the 802-room Hyatt Regency San Francisco for US$262.5 million.
Sunstone Hotel Investors, Aliso Viejo, California, said the acquisition was funded with proceeds from the company’s November 1 issuance of common stock. Sunstone purchased the hotel from a partnership between Dune Capital Management and DiNapoli Capital Partners, and Hyatt will continue as the hotel’s manager. Dune and DiNapoli acquired the hotel in 2007 from Strategic Hotel Capital for US$200 million.
“The hotel is located in the heart of San Francisco’s Central Business District and isanticipated to benefit from San Francisco’s favorable supply and demand dynamic as well as the over three million square feet (278,000 sq m) of additional office space under construction within a five block radius of the hotel,” said Ken Cruse, Sunstone’s CEO.
