Sunstone Plans Secondary Stock Offering
- Share via
SAN CLEMENTE — Sunstone Hotel Investors, Inc., which owns hotels in California and other Western states, is planning a secondary stock offering to fund new acquisitions and pay off debt, according Securities and Exchange Commission documents.
The San Clemente-based real estate investment trust plans to register 4.8 million common shares for sale to the public. The company projects the stock will fetch between $10 and $11 a share and that the sale will raise $48.3 million after expenses.
Sunstone will use the proceeds to purchase two hotels, fund renovations at its other properties and repay debt, according to the filing Friday with the SEC.
Following the acquisitions, the company will own 20 hotels in seven Western states. Sunstone operates mid-priced and upscale hotels through franchises such as Courtyard by Marriott, Doubletree Hotel and Holiday Inn.
The company’s current holdings include four California hotels: two Courtyard by Marriott hotels, in Fresno and Riverside, and two Hampton Inns, in Arcadia and Oakland. The company plans to purchase a Comfort Suites hotel in South San Francisco.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
