Sunstone Hotel REIT Plans to Sell $325 Million Worth of Securities
SAN CLEMENTE — Sunstone Hotel Investors Inc. filed plans Tuesday to sell as much as $325 million in securities.
The real estate investment trust, which owns upscale and mid-priced hotels in the West, plans to sell common shares, preferred shares, or warrants to purchase stock, according to documents filed with the Securities and Exchange Commission.
Sunstone said it will use the funds raised through such offerings for general corporate purposes, including acquisition of more properties, renovation of hotels and repayment of debt.
Part of the proceeds will be used to help finance Sunstone’s plans to acquire Minnesota-based Kahler Realty Corp., which owns or has a stake in 17 hotels, a Sunstone spokeswoman said. The deal, which is expected to close in October, would more than double the size of the San Clemente company.
Sunstone plans a shelf registration, which allows companies to register securities and sell them as financing needs arise.
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