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Blackstone Real Estate intends to buy the 821-room Hyatt Regency Embarcadero from Sunstone Hotel Investors for $279M.
Sunstone of Aliso Viejo acquired the property at 5 Embarcadero Center in San Francisco in 2013 for $262.5M, the San Francisco Business Times reported. Sunstone completed a multimillion-dollar renovation of the guest rooms in 2022.
Disposing of the lower-yielding Hyatt property allowed the company to repurchase $70M in shares of its common and preferred stock and pursue other higher-yield investment opportunities, Sunstone CEO Bryan Giglia said in a statement.
The sale fits the company’s plan to take advantage of strong pricing in the private market and free up cash for better investments," Giglia said. The added liquidity gives the firm more room to maneuver and reinvest in ways that can boost returns.
Eastdil Secured served as broker for the sale, which is expected to close in late July or early August. The Hyatt had a 78% occupancy rate and 12% revenue-per-available-room growth in 2025, the SFBT reported.
RevPAR in San Francisco flatlined in 2024 but improved in 2025, up 14% over the previous year, according to CoStar News.
San Francisco also led major U.S. cities in RevPAR growth in the first quarter, up 31%, according to CBRE.
This is the latest of several hotel purchases in the area in the last year.
Blackstone in November purchased the 277-key Four Seasons Hotel for $130M, while Sixth Street acquired the 410-room The Clancy Hotel for $115M.
Also in November, Newbond Holdings and Conversant Capital acquired nearly 3,000 rooms with the $408M purchase of the Hilton San Francisco and Parc 55 hotels, which were purchased out of receivership after Park Hotels & Resorts stopped paying on a $725M CMBS loan on the assets.
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