Sunstone Hotel Investors Inc (NYSE:SHO) Shares Surge

Shares of Sunstone Hotel Investors Inc surged 11% on Tuesday following a Bloomberg report that Trinity Investments has shown interest in acquiring the company based in Aliso Viejo, California.

Acquisition Interest

According to the report, Trinity is considering offering $13 per share for Sunstone. However, the companies are not engaged in active discussions, as cited by a source.

Company Comment

Both Trinity and Sunstone did not respond to requests for comment from Investing.com.

Stock Repurchase and Profit Outlook

Sunstone, which operates an ongoing stock repurchase program, recently bought 2.3 million shares at an average price of $9.79. Last month, the company reduced its 2024 profit outlook to a range of $31 million to $41 million, down from a previous forecast of up to $53 million, due to challenges in the domestic travel industry.

Market Context

The reported bid arises as domestic travel encounters difficulties from persistent inflation, which drives a demand for budget-friendly accommodations.