Sunstone Hotel lowers auction price for buyback

Sunstone Hotel Investors Inc. lowered the range at which it will buy at auction 6.2 million of its own shares, citing "softness" in stock prices for companies in its industry.

The real estate investment trust, which operates hotels, said Monday it will accept sale offers for the shares between $16.75 and $19.25 apiece. The previous range was $18.65 and $21.15 apiece.

The sale is being conducted as what is known as a Dutch auction. The company accepts offers for the shares within the price range and buys the 6.2 million from the lowest bids that fulfill its quota.

"In light of recent softness in lodging stocks, we believe that reducing our tender price range is warranted," the company said in a statement.

The offer expires June 27 unless extended.

In morning trading, Sunstone Hotel shares declined 61 cents, or 3.3 percent, to $17.91.