Sunstone, a $1.9 billion hotel developer, announced it is buying a majority stake in Blackstone for $1 billion.
Sunstone will own 49% of Blackstone, with the other 49% owned by Blackstone’s investors, including former chairman of Blackrock Stephen Schwarzman.
Sunstein will also own the minority interest in BlackRock.
Sunstone CEO David Pfeiffer, who has led the hotel project for five years, said the deal will allow Sunstone to better engage with the private sector and will help Sunstone improve its ability to make smart investments and create jobs.
Sunstorm’s founder, Robert E. Knight, said he’s excited to join Sunstone and Blackstone in building the next generation of Sunstone hotels, noting that the hotel company has been a leader in investing in BlackStone’s technology and has made investments in technology companies like Airbnb, Pinterest and Tesla.
Sunstorm will operate in two cities, Orlando and Las Vegas, and have offices in New York, Las Vegas and Chicago.
SunStorm plans to open a total of 14 hotels, including five in China.