(Bloomberg) -- Trinity Investments has expressed interest in acquiring Sunstone Hotel Investors Inc., according to people with knowledge of the matter. The company’s shares jumped 11.5% in Tuesday morning trading.
The firm discussed paying about $13 per share for Aliso Viejo, California-based Sunstone, said one of the people, who asked not to be identified discussing confidential information. The companies aren’t in active talks, another of the people said.
A Trinity representative declined to comment. Representatives for Sunstone didn’t respond to multiple requests for comment.
Sunstone, led by Chief Executive Officer Bryan Giglia, owns a portfolio of hotels including the Montage Healdsburg in California, the Wailea Beach Resort in Hawaii, the Four Seasons Napa Valley and the Confidante Miami Beach, which is set to reopen as the Andaz Miami Beach.
Last month, Sunstone slashed its full-year guidance and it had a market capitalization of about $2.16 billion as of Monday’s close. Its shares rose 11.5% to $11.99 at 10:18 a.m. New York time.
Trinity, a hotel investor that counts the Standard London, the Hilton Los Cabos Beach & Golf Resort and the Westin Maui Resort & Spa among its holdings, sold a minority stake to Partners Group Holding AG in April.
After a relative lull in activity in part due to high interest rates, dealmaking involving real estate investment trusts is poised to increase. Blackstone Inc. completed its take-private of Apartment Income REIT Corp in June and this month agreed to buy shopping-center landlord Retail Opportunity Investments Corp. in an all-cash deal valued at about $4 billion.
--With assistance from Patrick Clark.
(Updates to include share price jump in first and fifth paragraphs.)
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