Sunstone Hotel Investors' 20 Million Shares Priced

SAN CLEMENTE, Calif. (AP) — Lodging real estate investment trust Sunstone Hotel Investors Inc. said Friday a public offering of 20 million shares were priced at $7.20 each.

Underwriters have 30 days to buy up to an additional 3 million shares.

Joint bookrunners are Bank of America Merrill Lynch and Wells Fargo Securities.

Net proceeds from this offering will be contributed to Sunstone Hotel Partnership LLC, a subsidiary, which will use proceeds for working capital and other general corporate purposes, which may include hotel acquisitions.

Last month, the company said it planned to turn over a property to the bank after deciding against making more mortgage payments. The company said it planned to turn over its Marriott Ontario Airport hotel in Southern California to its lenders.

That follows news in June that the company would turn over a 258-room W Hotel in San Diego to lenders.

Shares declined 11 cents to $7.66 in afternoon trading.