Sunstone Hotel sells Hilton property in New Orleans, plans to repurchase shares

From Yahoo Finance: 2025-06-10 06:10:00

Sunstone Hotel Investors has finalized the sale of a Hilton hotel on St Charles Avenue in New Orleans for $47m, at $187,000 per key. The sale reflects a 10.1× multiple on projected 2024 earnings and an 8.7% cap rate based on 2024 net operating income. A “cyclical renovation” is planned to maintain competitiveness. Sunstone has repurchased $60m worth of shares at an average price of $8.84 per share. The company has invested $252m to repurchase 25.8 million shares since early 2022 at an average price of $9.77 per share, creating substantial value for shareholders.

In May 2022, Sunstone agreed to buy The Confidante, a 339-room hotel in Miami Beach, for $232m. CEO Bryan Giglia stated that the sale of the Hilton property in New Orleans allows the company to repurchase shares at a compelling discount, while still benefiting from exposure to the New Orleans market through ownership of the JW Marriott. The company continues to evaluate hotel investment opportunities, but believes stock repurchases near current levels will be more accretive for shareholders.



Read more at Yahoo Finance: Sunstone Hotel completes sale of Hilton property in New Orleans