Sunstone Hotel Investors is splashing into the Lone Star State with an eye-popping hotel deal in downtown San Antonio.
The California-based firm struck a deal with Hyatt Hotels to buy the 630-key Hyatt Regency San Antonio Riverwalk, at 123 Losoya Street, for $230 million, marking its first Texas acquisition, the San Antonio Business Journal reported. The price is a little over $365,000 per key.
Sunstone, led by CEO Bryan Giglia, anticipates that the property will contribute $12 million to $13 million of the hotel’s earnings to its bottom line through 2024. The firm expects to close the sale later this month.
The Hyatt Regency, across from the Alamo and fronting the River Walk, is in the heart of the city’s tourism district. Sunstone aims to take advantage of strong hotel demand in the area and the plethora of nearby attractions, including the forthcoming Alamo Visitor Center and Museum.
The hotel was recently renovated and is “in great shape with minimal near-term capital needs,” Giglia told the outlet. However, he believes there are still opportunities to maximize the hotel’s potential and drive up revenue over the near term.
San Antonio’s lodging industry is making strides toward a full recovery from the pandemic, which caused downtown foot traffic and leisure travel to plummet. While there haven’t been many hospitality assets to change hands since last year, the city’s development pipeline is loaded with hotel rooms.
Trailbreak Partners and Scarlett Hotel Group are wrapping up their $158 million transformation of the former Wyndham hotel downtown into a 390-room luxury hotel under the InterContinental brand. It’s set to open this summer.
Also on the redevelopment front, Los Angeles-based Evolution Hospitality is gearing up for a $30 million overhaul of the historic Sheraton Gunter Hotel, at 205 East Houston Street.
Furthermore, a joint venture of Austin-based Merritt Development Group and Georgia-based Peachtree Group aims to develop a 10-story, 171-room Residence Inn by Marriott, at 100 North Main Avenue.
—Quinn Donoghue
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