Sunstone Hotel Finalizes Merger

Sunstone Hotel Investors Inc., a San Clemente real estate investment trust, said Monday that it has completed its merger with a Westbrook Partners subsidiary for about $880 million in cash and assumed debt.

Sunstone Hotel said in a news release that its shareholders received nearly $10.38 in cash for each common share owned. Limited partners of Sunstone Investors LP received the same amount for each operating partnership unit held.

Sunstone said an unspecified number of units were exchanged for partnership interests in SHP Acquisition LLC, an investor group led by an affiliate of Westbrook Partners and certain members of Sunstone Hotel’s senior management.

Sunstone is the biggest hotel owner in California with 101,515 rooms at its 58 hotels in the state, said Alan X. Reay of Atlas Hospitality Group, a Costa Mesa brokerage.