Machine learning predictions based on historical earnings data and price patterns
1-Day Prediction
+0.77%
$11.38
100% positive prob.
5-Day Prediction
+3.04%
$11.63
100% positive prob.
20-Day Prediction
+1.09%
$11.41
95% positive prob.
SEC 8-K filings with transcript text
Aug 6, 2026 · 100% conf.
1D
+0.77%
$11.38
Act: -1.86%
5D
+3.04%
$11.63
Act: -3.54%
20D
+1.09%
$11.41
2 sho-20260806xex99d1.htm
Exhibit 99.1
For Additional Information:
Aaron Reyes
Sunstone Hotel Investors, Inc.
(949) 382-3018
Completes Sale of Hyatt Regency San Francisco and Increases Full Year Outlook
ALISO VIEJO, CA – August 6, 2026 – Sunstone Hotel Investors, Inc. (the “Company” or “Sunstone”) (NYSE: SHO) today announced results for the second quarter ended June 30, 2026.
Second Quarter 2026 Operational Results (as compared to Second Quarter 2025):
●Net Income: Net income attributable to common stockholders was $26.0 million, or $0.14 per diluted share, as compared to $6.8 million, or $0.03 per diluted share.
●RevPAR: RevPAR for all hotels in the portfolio increased 9.3% to $263.61. The average daily rate was $339.71 and occupancy was 77.6%. RevPAR excluding Andaz Miami Beach increased 4.3%.
●Total RevPAR: Total RevPAR for all hotels in the portfolio increased 7.7% to $434.00. Total RevPAR excluding Andaz Miami Beach increased 3.0%.
●Adjusted EBITDAre: Adjusted EBITDAre increased 5.5% to $76.7 million.
●Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share increased 14.3% to $0.32.
Information regarding the non-GAAP financial measures disclosed in this release is provided below in “Non-GAAP Financial Measures.” Reconciliations of non-GAAP financial measures to the most comparable GAAP measure for each of the periods presented are included later in this release.
Bryan A. Giglia, Chief Executive Officer, stated, “We are pleased with our performance in the second quarter as both revenue and profitability meaningfully exceeded expectations. Our well-located portfolio benefited from robust leisure demand as a result of increased summer travel and special events which added to sustained strength in group and corporate demand. Given our outperformance in the second quarter and stronger near-term trends, we are increasing our outlook for the year.”
Mr. Giglia continued, “In late July, we closed on the sale of Hyatt Regency San Francisco, realizing an attractive private market value for a low-yielding asset. The implied valuation multiple on the sale is well in excess of where we are trading and allows us to deliver to our shareholders the value of future growth, today. In anticipation of the sale, starting earlier this year, we began accretively deploying a portion of the sale proceeds into the discounted repurchase of common and preferred stock and expect to generate additional shareholder value and grow NAV per share through the redeployment of the remaining proceeds.”
1
Unaudited Selected Statistical and Financial Data ($ in millions, except RevPAR, ADR and per share amounts).
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
Change
2026
2025
Change
Net Income
$
26.0
$
10.8
141.6
%
$
44.6
$
16.0
178.1
%
Net Income Attributable to Common Stockholders
$
26.0
$
6.8
279.7
%
$
41.9
$
8.2
413.5
%
Net Income Attributable to Common Stockholders per Diluted Share
$
0.14
$
0.03
366.7
%
$
0.22
$
0.04
450.0
%
Total Portfolio Operating Statistics (1)
RevPAR
$
263.61
$
241.22
9.3
%
$
259.15
$
232.01
11.7
%
Occupancy
77.6
%
74.6
%
300
bps
75.8
%
72.3
%
350
bps
Average Daily Rate
$
339.71
$
323.35
5.1
%
$
341.89
$
320.90
6.5
%
Total RevPAR
$
434.00
$
403.11
7.7
%
$
422.70
$
382.94
10.4
%
Operating Statistics, excluding Andaz Miami Beach (2)
RevPAR
$
260.27
$
249.63
4.3
%
$
252.75
$
240.67
5.0
%
Occupancy
77.8
%
77.2
%
60
bps
75.7
%
75.0
%
70
bps
Average Daily Rate
$
334.54
$
323.35
3.5
%
$
333.88
$
320.89
4.0
%
Total RevPAR
$
429.01
$
416.50
3.0
%
$
413.56
$
397.24
4.1
%
Hotel Adjusted EBITDAre Margin, excluding Andaz Miami Beach (2)
29.4
%
30.4
%
(100)
bps
28.3
%
28.2
%
10
bps
Adjusted EBITDAre
$
76.7
$
72.7
5.5
%
$
144.4
$
129.9
11.2
%
Adjusted FFO Attributable to Common Stockholders
$
59.0
$
55.7
6.0
%
$
109.2
$
97.2
12.3
%
Adjusted FFO Attributable to Common Stockholders per Diluted Share
$
0.32
$
0.28
14.3
%
$
0.58
$
0.49
18.4
%
(1)Includes the 14 hotels owned by the Compan
May 5, 2026
2 sho-20260501xex99d1.htm
Exhibit 99.1
For Additional Information:
Aaron Reyes
Sunstone Hotel Investors, Inc.
(949) 382-3018
Completes Additional Accretive Common and Preferred Stock Repurchases
ALISO VIEJO, CA – May 5, 2026 – Sunstone Hotel Investors, Inc. (the “Company” or “Sunstone”) (NYSE: SHO) today announced results for the first quarter ended March 31, 2026.
First Quarter 2026 Operational Results (as compared to First Quarter 2025):
●Net Income: Net income attributable to common stockholders was $16.0 million, or $0.08 per diluted share, as compared to $1.3 million, or $0.01 per diluted share.
●RevPAR: RevPAR for all hotels in the portfolio increased 14.6% to $255.04. The average daily rate was $344.19 and occupancy was 74.1%. RevPAR excluding Andaz Miami Beach increased 5.7%.
●Total RevPAR: Total RevPAR for all hotels in the portfolio increased 13.4% to $411.28. Total RevPAR excluding Andaz Miami Beach increased 5.3%.
●Adjusted EBITDAre: Adjusted EBITDAre increased 18.3% to $67.7 million.
●Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share increased 28.6% to $0.27.
Information regarding the non-GAAP financial measures disclosed in this release is provided below in “Non-GAAP Financial Measures.” Reconciliations of non-GAAP financial measures to the most comparable GAAP measure for each of the periods presented are included later in this release.
Bryan A. Giglia, Chief Executive Officer, stated, “We are pleased with our performance in the first quarter which came in ahead of our expectations despite weather-related headwinds at several hotels throughout the quarter. While the strength was broad based, we were particularly encouraged by our resort portfolio, including solid first quarter performance at Andaz Miami Beach. Our first quarter results demonstrate the embedded growth potential of our portfolio as we benefit from our prior investments and some of our larger markets continue to normalize. We are revising our full year outlook higher to reflect the outperformance in the first quarter, and while trends in the initial months of 2026 give us reasons to be optimistic about the remainder of the year, we retain a level of caution given the uncertain backdrop.”
Mr. Giglia continued, “We remain committed to addressing the valuation discount at which we trade and realizing the embedded value of our portfolio for our shareholders. While the transaction market has been quiet in recent years, we are beginning to see incremental activity, which may provide a more constructive backdrop in which to execute our capital recycling strategy. In the interim, we continue to deliver value through accretive buyback activity and have repurchased $49.2 million of common and preferred stock since the start of the year at attractive implied yields.”
1
Unaudited Selected Statistical and Financial Data ($ in millions, except RevPAR, ADR and per share amounts).
Quarter Ended March 31,
2026
2025
Change
Net Income
$
18.6
$
5.3
253.1
%
Net Income Attributable to Common Stockholders
$
16.0
$
1.3
1,105.1
%
Net Income Attributable to Common Stockholders per Diluted Share
$
0.08
$
0.01
743.2
%
Total Portfolio Operating Statistics (1)
RevPAR
$
255.04
$
222.46
14.6
%
Occupancy
74.1
%
69.9
%
420
bps
Average Daily Rate
$
344.19
$
318.26
8.1
%
Total RevPAR
$
411.28
$
362.54
13.4
%
Operating Statistics, excluding Andaz Miami Beach (2)
RevPAR
$
245.21
$
232.01
5.7
%
Occupancy
73.6
%
72.9
%
70
bps
Average Daily Rate
$
333.16
$
318.26
4.7
%
Total RevPAR
$
397.94
$
377.78
5.3
%
Hotel Adjusted EBITDAre Margin, excluding Andaz Miami Beach (2)
27.1
%
25.7
%
140
bps
Adjusted EBITDAre
$
67.7
$
57.3
18.3
%
Adjusted FFO Attributable to Common Stockholders
$
50.1
$
41.5
20.8
%
Adjusted FFO Attributable to Common Stockholders per Diluted Share
$
0.27
$
0.21
28.6
%
(1)Includes the 14 hotels owned by the Company as of March 31, 2026.
(2)Includes the 14 hotels owned by the Company as of March 31, 2026 with the exception of Andaz Miami Beach due to its renovation activity during 2025.
Recent Developments
Stock Repurchase Program. During the first quarter of 2026, the Company repurchased an aggregate amount of $36.4 million, before expenses, of its common and preferred stock. From the start of this year through May 1, 2026, the Company has allocated a total of $49.2 million, before expenses, into repurchases of its common and preferred stock. The Company be
Feb 27, 2026
2 sho-20260227xex99d1.htm
Exhibit 99.1
For Additional Information:
Aaron Reyes
Sunstone Hotel Investors, Inc.
(949) 382-3018
Returned Over $170 Million to Common Stockholders in 2025 Through Dividends and Share Repurchases
Restores $500 Million Repurchase Authorization
ALISO VIEJO, CA – February 27, 2026 – Sunstone Hotel Investors, Inc. (the “Company” or “Sunstone”) (NYSE: SHO) today announced results for the fourth quarter and full year ended December 31, 2025.
Fourth Quarter 2025 Operational Results (as compared to Fourth Quarter 2024):
●Net Income: Net income was $7.2 million as compared to $0.8 million.
●Total Portfolio RevPAR: Total Portfolio RevPAR increased 9.6% to $220.12. The average daily rate was $319.01 and occupancy was 69.0%.
●Adjusted EBITDAre: Adjusted EBITDAre increased 17.6% to $56.6 million.
●Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share increased 25.0% to $0.20.
Full Year 2025 Operational Results (as compared to Full Year 2024):
●Net Income: Net income was $24.6 million as compared to $43.3 million. Excluding the loss on the sale of the Hilton New Orleans St. Charles in June 2025, net income for the full year 2025 would have been $33.3 million.
●Total Portfolio RevPAR: Total Portfolio RevPAR increased 3.8% to $225.12. The average daily rate was $317.07 and occupancy was 71.0%.
●Adjusted EBITDAre: Adjusted EBITDAre increased 3.0% to $236.6 million.
●Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share increased 7.5% to $0.86.
Information regarding the non-GAAP financial measures disclosed in this release is provided below in “Non-GAAP Financial Measures.” Reconciliations of non-GAAP financial measures to the most comparable GAAP measure for each of the periods presented are included later in this release.
Bryan A. Giglia, Chief Executive Officer, stated, “Our portfolio outperformed our expectations in the fourth quarter delivering impressive Total RevPAR growth of 12.5% as the benefit of our recent investment activity added to generally broad-based strength across our portfolio. We were particularly encouraged by stronger performance at Andaz Miami Beach and Wailea Beach Resort which saw robust demand over the festive period with the momentum continuing into 2026.”
Mr. Giglia continued, “While macroeconomic uncertainty and other factors impeded industry growth in 2025, we nevertheless had a productive year at Sunstone. We recycled out of a lower growth hotel and used the proceeds to accretively repurchase our stock, debuted Andaz Miami Beach, completed other capital investments intended to drive future growth, and returned over $170 million to our shareholders through share repurchases and dividends. While we see reasons to be optimistic about the year ahead, we remain cautious and know the operating environment can be impacted, both positively and negatively, by events outside of our control. In 2026, we will continue to execute our strategy of recycling capital, investing in our portfolio, and returning capital to shareholders while working to address the valuation discount at which we trade. We have an exceptional portfolio with meaningful growth potential, a flexible balance sheet with optionality, a nimble size that allows us to pivot among the most accretive capital allocation opportunities, and a singular focus to realize the embedded value of our portfolio for our shareholders.”
1
Unaudited Selected Statistical and Financial Data ($ in millions, except RevPAR, ADR and per share amounts).
Quarter Ended December 31,
Year Ended December 31,
2025
2024
Change
2025
2024
Change
Net Income
$
7.2
$
0.8
763.3
%
$
24.6
$
43.3
(43.2)
%
Income (Loss) Attributable to Common Stockholders per Diluted Share
$
0.02
$
(0.02)
200.0
%
$
0.04
$
0.14
(71.4)
%
Total Portfolio Operating Statistics (1)
RevPAR
$
220.12
$
200.75
9.6
%
$
225.12
$
216.86
3.8
%
Occupancy
69.0
%
65.1
%
390
bps
71.0
%
68.7
%
230
bps
Average Daily Rate
$
319.01
$
308.37
3.5
%
$
317.07
$
315.66
0.4
%
Total Portfolio Operating Statistics, excluding Andaz Miami Beach (2)
RevPAR
$
218.07
$
209.38
4.2
%
$
229.94
$
225.31
2.1
%
Occupancy
69.1
%
67.9
%
120
bps
72.7
%
71.3
%
140
bps
Average Daily Rate
$
315.59
$
308.37
2.3
%
$
316.28
$
316.00
0.1
%
Nov 7, 2025
2 sho-20251107xex99d1.htm
Exhibit 99.1
For Additional Information:
Aaron Reyes
Sunstone Hotel Investors, Inc.
(949) 382-3018
ALISO VIEJO, CA – November 7, 2025 – Sunstone Hotel Investors, Inc. (the “Company” or “Sunstone”) (NYSE: SHO) today announced results for the third quarter ended September 30, 2025.
Third Quarter 2025 Operational Results (as compared to Third Quarter 2024):
●Net Income: Net income was $1.3 million as compared to $3.2 million.
●Total Portfolio RevPAR: Total Portfolio RevPAR increased 2.0% to $216.12. The average daily rate was $307.43 and occupancy was 70.3%.
●Adjusted EBITDAre: Adjusted EBITDAre decreased 6.6% to $50.1 million.
●Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share decreased 5.6% to $0.17.
Information regarding the non-GAAP financial measures disclosed in this release is provided below in “Non-GAAP Financial Measures.” Reconciliations of non-GAAP financial measures to the most comparable GAAP measure for each of the periods presented are included later in this release.
Bryan A. Giglia, Chief Executive Officer, stated, “Our portfolio delivered earnings that were in-line with our expectations despite ongoing headwinds in several of our larger markets. We were once again pleased with stronger performance in San Francisco, which helped to offset subdued government-related demand and a more price-sensitive leisure traveler in other parts of the portfolio. During the quarter, we successfully recast our credit facilities which addressed all debt maturities through 2028, lowered our borrowing cost and enhanced our financial flexibility. While the macroeconomic outlook remains mixed with various challenges, we are maintaining our outlook for the year.”
Mr. Giglia continued, “We remain committed to addressing the valuation discount at which we trade and taking every step possible to deliver value for shareholders. As we have done in the past, the Board and management team will continue to explore all avenues to realize the value of our exceptional portfolio.”
1
Unaudited Selected Financial and Financial Data ($ in millions, except RevPAR, ADR and per share amounts).
Three Months Ended September 30,
Nine Months Ended September 30,
2025
2024
Change
2025
2024
Change
Net Income
$
1.3
$
3.2
(59.3)
%
$
17.4
$
42.4
(59.1)
%
(Loss) Income Attributable to Common Stockholders per Diluted Share
$
(0.02)
$
—
(100.0)
%
$
0.03
$
0.15
(80.0)
%
Total Portfolio Operating Statistics (1)
RevPAR
$
216.12
$
211.96
2.0
%
$
226.58
$
222.24
2.0
%
Occupancy
70.3
%
69.2
%
110
bps
71.6
%
69.9
%
170
bps
Average Daily Rate
$
307.43
$
306.30
0.4
%
$
316.45
$
317.94
(0.5)
%
Total Portfolio Operating Statistics, excluding Andaz Miami Beach (2)
RevPAR
$
220.46
$
220.84
(0.2)
%
$
233.89
$
230.52
1.5
%
Occupancy
71.7
%
72.1
%
(40)
bps
73.9
%
72.4
%
150
bps
Average Daily Rate
$
307.48
$
306.30
0.4
%
$
316.50
$
318.40
(0.6)
%
Total Portfolio Hotel Adjusted EBITDAre Margin, excluding Andaz Miami Beach (2)
24.6
%
25.3
%
(70)
bps
27.1
%
27.3
%
(20)
bps
Adjusted EBITDAre
$
50.1
$
53.6
(6.6)
%
$
180.0
$
181.6
(0.9)
%
Adjusted FFO Attributable to Common Stockholders
$
31.7
$
36.9
(13.9)
%
$
129.0
$
131.0
(1.5)
%
Adjusted FFO Attributable to Common Stockholders per Diluted Share
$
0.17
$
0.18
(5.6)
%
$
0.66
$
0.64
3.1
%
(1)Includes the 14 hotels owned by the Company as of September 30, 2025, and includes prior ownership results for the Hyatt Regency San Antonio Riverwalk, acquired by the Company in April 2024.
(2)Includes the 14 hotels owned by the Company as of September 30, 2025, with the exception of Andaz Miami Beach due to its renovation activity during 2025 and 2024. Includes prior ownership results for the Hyatt Regency San Antonio Riverwalk, acquired by the Company in April 2024.
Recent Developments
Amended and Restated Credit Agreement. The Company completed its previously announced Third Amended and Restated Credit Agreement (the “Amended Credit Agreement”), which provides for an aggregate borrowing capacity of $1.35 billion, addresses all near term maturiti
Aug 6, 2025
2 sho-20250806xex99d1.htm
Exhibit 99.1
For Additional Information:
Aaron Reyes
Sunstone Hotel Investors, Inc.
(949) 382-3018
Completes Additional Accretive Share Repurchases
ALISO VIEJO, CA – August 6, 2025 – Sunstone Hotel Investors, Inc. (the “Company” or “Sunstone”) (NYSE: SHO) today announced results for the second quarter ended June 30, 2025.
Second Quarter 2025 Operational Results (as compared to Second Quarter 2024):
●Net Income: Net income was $10.8 million as compared to $26.1 million. Excluding the loss on the sale of the Hilton New Orleans St. Charles, net income for the second quarter of 2025 would have been $19.5 million.
●Total Portfolio RevPAR: Total Portfolio RevPAR increased 2.2% to $241.22. The average daily rate was $323.35 and occupancy was 74.6%. Including the Hilton New Orleans St. Charles prior to its disposition in June 2025, RevPAR increased 2.4% to $238.21.
●Adjusted EBITDAre: Adjusted EBITDAre decreased 1.1% to $72.7 million.
●Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share for the second quarters of both 2025 and 2024 was $0.28.
Information regarding the non-GAAP financial measures disclosed in this release is provided below in “Non-GAAP Financial Measures.” Reconciliations of non-GAAP financial measures to the most comparable GAAP measure for each of the periods presented are included later in this release.
Bryan A. Giglia, Chief Executive Officer, stated, “Our portfolio performed in-line with expectations during the second quarter, with solid corporate group and business travel demand partially offsetting a more price sensitive leisure traveler and weaker government volume. Despite softer leisure demand and several market-specific headwinds, many parts of our premium portfolio performed well, driven by meaningful growth at our recently converted hotel in Long Beach, and better than expected performance in San Francisco and Wine Country. Given how demand patterns have evolved over recent weeks, we now expect that weaker leisure demand in Maui, a slower near-term ramp at Andaz Miami Beach and continued subdued government business in Washington, DC, will further pressure our performance in the second half of the year. Recent booking trends at Wailea Beach Resort have been encouraging and give us reason to be optimistic that the Maui market is recovering and our resort is recapturing market share, but we felt it was appropriate to allow for more variability in the outlook for the balance of the year. While Andaz Miami Beach opened later than expected and after the high-demand season, resulting in a slower than anticipated initial ramp up, the guest response has been strong, and recent weekly bookings have accelerated meaningfully and are pacing at the levels necessary to allow the resort to realign with our expectations and deliver solid growth as we move into 2026.”
Mr. Giglia continued, “During the quarter, we accretively recycled capital, divesting the Hilton New Orleans St. Charles at an attractive valuation and redeploying the proceeds along with additional capital into $100 million of share repurchases so far this year at a compelling average price of $8.83 per share. Since the start of 2022, we have repurchased nearly $300 million of stock, representing nearly 14% of shares outstanding, at a meaningful discount to NAV. While the operating environment has become more challenging, we continue to look for ways to unlock the embedded growth potential in the portfolio and generate value for our shareholders.”
1
Unaudited Selected Financial and Financial Data ($ in millions, except RevPAR, ADR and per share amounts).
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
Change
2025
2024
Change
Net Income
$
10.8
$
26.1
(58.8)
%
$
16.0
$
39.2
(59.1)
%
Income Attributable to Common Stockholders per Diluted Share
$
0.03
$
0.11
(72.7)
%
$
0.04
$
0.16
(75.0)
%
Total Portfolio Operating Statistics (1)
RevPAR
$
241.22
$
235.97
2.2
%
$
232.01
$
227.57
2.0
%
Occupancy
74.6
%
72.0
%
260
bps
72.3
%
70.3
%
200
bps
Average Daily Rate
$
323.35
$
327.73
(1.3)
%
$
320.90
$
323.71
(0.9)
%
Total Portfolio Operating Statistics, excluding Andaz Miami Beach (2)
RevPAR
$
249.63
$
246.13
1.4
%
$
240.67
$
235.26
2.3
%
Occupancy
77.2
%
75.1
%
210
bps
75.0
%
72.5
%
250
bps
Average Daily Rate
$
3
May 6, 2025
3 sho-20250501xex99d1.htm
Exhibit 99.1
For Additional Information:
Aaron Reyes
Sunstone Hotel Investors, Inc.
(949) 382-3018
Opens Andaz Miami Beach After Transformational Renovation
Completes Additional Share Repurchases
ALISO VIEJO, CA – May 6, 2025 – Sunstone Hotel Investors, Inc. (the “Company” or “Sunstone”) (NYSE: SHO) today announced results for the first quarter ended March 31, 2025.
First Quarter 2025 Operational Results (as compared to First Quarter 2024):
●Net Income: Net income was $5.3 million as compared to $13.0 million.
●Total Portfolio RevPAR: Total Portfolio RevPAR increased 2.2% to $221.63. The average daily rate was $316.16 and occupancy was 70.1%. Excluding Andaz Miami Beach due to its transformational renovation, RevPAR increased 3.8%.
●Adjusted EBITDAre: Adjusted EBITDAre increased 5.0% to $57.3 million.
●Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share increased 16.7% to $0.21.
Information regarding the non-GAAP financial measures disclosed in this release is provided below in “Non-GAAP Financial Measures.” Reconciliations of non-GAAP financial measures to the most comparable GAAP measure for each of the periods presented are included later in this release.
Bryan A. Giglia, Chief Executive Officer, stated, “Despite the elevated uncertainty that has crept into the operating environment since the start of the year, our premium portfolio delivered first quarter earnings that were slightly ahead of expectations even on softer revenue growth. As the demand environment evolves, we are working with our operators to book new business and drive total revenue growth while focusing on costs. Our solid balance sheet and recently completed capital investments support the continued return of capital to our shareholders and position Sunstone to be opportunistic and successfully allocate capital in a range of operating environments. We have adjusted our full year outlook to reflect the recent volatility and its impact on operating trends. Forward visibility has become increasingly limited given the heightened uncertainty and greater variability in the range of possible economic outcomes for the year.”
Mr. Giglia continued, “Last week, we opened Andaz Miami Beach following a complete transformation of the oceanfront property. The fully reimagined resort looks fantastic and is well positioned to deliver on our underwriting and create value going forward. The opening of Andaz Miami Beach is a significant milestone for Sunstone and further advances our layered approach to capital allocation: investing in our portfolio, recycling capital and returning capital to our shareholders.”
1
Unaudited Selected Statistical and Financial Data ($ in millions, except RevPAR, ADR and per share amounts)
Quarter Ended March 31,
2025
2024
Change
Net Income
$
5.3
$
13.0
(59.7)
%
Income Attributable to Common Stockholders per Diluted Share
$
0.01
$
0.05
(80.0)
%
Total Portfolio Operating Statistics (1)
RevPAR
$
221.63
$
216.80
2.2
%
Occupancy
70.1
%
68.9
%
120
bps
Average Daily Rate
$
316.16
$
314.66
0.5
%
Total Portfolio Operating Statistics, excluding Andaz Miami Beach (2)
RevPAR
$
230.48
$
222.10
3.8
%
Occupancy
72.9
%
70.3
%
260
bps
Average Daily Rate
$
316.16
$
315.93
0.1
%
Total Portfolio Hotel Adjusted EBITDAre Margin, excluding Andaz Miami Beach (2)
26.2
%
25.4
%
80
bps
Adjusted EBITDAre
$
57.3
$
54.5
5.0
%
Adjusted FFO Attributable to Common Stockholders
$
41.5
$
37.5
10.6
%
Adjusted FFO Attributable to Common Stockholders per Diluted Share
$
0.21
$
0.18
16.7
%
(1)Includes all 15 hotels owned by the Company as of March 31, 2025, and includes both prior ownership results and the Company's results for the Hyatt Regency San Antonio Riverwalk, acquired by the Company in April 2024.
(2)Includes all hotels owned by the Company as of March 31, 2025, with the exception of Andaz Miami Beach due to its renovation activity during the first quarters of 2025 and 2024. Includes prior ownership results for the Hyatt Regency San Antonio Riverwalk, acquired by the Company in April 2024.
Recent Developments
Andaz Miami Beach. On May 3, 2025, the Company opened Andaz Miami Beach, following a complete transformation of the property. The fully renovated luxury resort boasts 287 guestrooms including 64 suites, meeting space with ocean views and abundant natural light, a full-service spa, premium food and beverage outlets concepted by José Andrés Group, and a spacious backyard with a range
Feb 21, 2025
2 sho-20250218xex99d1.htm
Exhibit 99.1
For Additional Information:
Aaron Reyes
Sunstone Hotel Investors, Inc.
(949) 382-3018
ALISO VIEJO, CA – February 21, 2025 – Sunstone Hotel Investors, Inc. (the “Company” or “Sunstone”) (NYSE: SHO) today announced results for the fourth quarter and full year ended December 31, 2024.
Fourth Quarter 2024 Operational Results (as compared to Fourth Quarter 2023):
●Net Income: Net income was $0.8 million as compared to $127.0 million. Excluding the gain on the hotel sold during the fourth quarter 2023, net income would have been $3.2 million.
●Comparable RevPAR: Comparable RevPAR decreased 1.1% to $199.07. The average daily rate was $304.85 and occupancy was 65.3%. Excluding The Confidante Miami Beach as it transitions to Andaz Miami Beach, RevPAR increased 1.0%. Excluding The Confidante Miami Beach and the Hilton San Diego Bayfront, which was negatively impacted by labor activity in the fourth quarter of 2024, RevPAR increased 2.4%.
●Adjusted EBITDAre: Adjusted EBITDAre decreased 12.0% to $48.1 million.
●Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share decreased 15.8% to $0.16.
Full Year 2024 Operational Results (as compared to Full Year 2023):
●Net Income: Net income was $43.3 million as compared to $206.7 million. Excluding the gain on the hotel sold during 2023, net income would have been $82.9 million.
●Comparable RevPAR: Comparable RevPAR decreased 2.4% to $214.06. The average daily rate was $311.13 and occupancy was 68.8%. Excluding The Confidante Miami Beach as it transitions to Andaz Miami Beach, RevPAR was $221.73 and was generally unchanged as compared to the prior year. Excluding The Confidante Miami Beach and the Hilton San Diego Bayfront, which was negatively impacted by labor activity in the third and fourth quarters of 2024, RevPAR increased 0.9%.
●Adjusted EBITDAre: Adjusted EBITDAre decreased 12.8% to $229.7 million.
●Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share decreased 15.8% to $0.80.
Information regarding the non-GAAP financial measures disclosed in this release is provided below in “Non-GAAP Financial Measures.” Reconciliations of non-GAAP financial measures to the most comparable GAAP measure for each of the periods presented are included later in this release.
Bryan A. Giglia, Chief Executive Officer, stated, “In 2024, we began to realize the benefits of the investments we have made in our portfolio, which we expect will contribute to growth for the next several years. While industry fundamentals were not as robust in 2024 as we had hoped, we were pleased with the strong performance at our newly converted The Westin Washington, DC Downtown, which is now one of the premier convention hotels in the city. Additionally, our hotels in Boston and San Antonio benefited from strong group and transient demand, while our Wine Country resorts grew occupancy and profitability.”
Mr. Giglia continued, “During 2024, we successfully executed our strategy of recycling capital, investing in our portfolio, and returning capital to shareholders. We redeployed capital, acquiring the Hyatt Regency San Antonio Riverwalk at a compelling current yield with attractive future growth opportunities. Building on our success with the conversion of The Westin Washington, DC Downtown, we are now positioned to generate further growth from other recent investments in our portfolio. As we look ahead, our earnings in 2025 are expected to benefit from the recently completed conversion of the Marriott Long Beach Downtown and the debut of Andaz Miami Beach in the first quarter. Our strong liquidity position and embedded earnings growth provide for a well-covered dividend and the ability to repurchase our common stock at a discount to NAV, which is evidenced by our return of nearly $100
1
million to shareholders during the year. We believe that our active capital recycling, investment in our portfolio to drive future growth, and meaningful return of capital will position Sunstone for further success in 2025.”
Unaudited Selected Statistical and Financial Data ($ in millions, except RevPAR, ADR and per share amounts)
Quarter Ended December 31,
Year Ended December 31,
2024
2023
Change
2024
2023
Change
Net Income
$
0.8
$
127.0
(99.3)
%
$
43.3
$
206.7
(79.1)
%
(Loss) Income Attributable to Common Stockholders per Diluted Share
$
(0.02)
$
0.60
(103.3)
%
$
0.14
$
0.93
(84.9)
%
Comparable Operating Statistics (1)
RevPAR
$
199.07
$
201.29
(1.1)
%
$
214.06
$
219.32
Nov 12, 2024
3 sho-20241107xex99d1.htm
Exhibit 99.1
For Additional Information:
Aaron Reyes
Sunstone Hotel Investors, Inc.
(949) 382-3018
Refinances Only 2024 Maturity
ALISO VIEJO, CA – November 12, 2024 – Sunstone Hotel Investors, Inc. (the “Company” or “Sunstone”) (NYSE: SHO) today announced results for the third quarter ended September 30, 2024.
Third Quarter 2024 Operational Results (as compared to Third Quarter 2023):
●Net Income: Net income was $3.2 million as compared to $15.6 million.
●Comparable RevPAR: Comparable RevPAR decreased 1.3% to $207.56. The average daily rate was $301.69 and occupancy was 68.8%. Excluding The Confidante Miami Beach as it transitions to Andaz Miami Beach, RevPAR decreased 0.1%. Excluding The Confidante Miami Beach and the Hilton San Diego Bayfront, which was negatively impacted by labor activity in the third quarter of 2024, RevPAR increased 2.4%.
●Adjusted EBITDAre: Adjusted EBITDAre decreased 15.9% to $53.6 million.
●Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share decreased 21.7% to $0.18.
Information regarding the non-GAAP financial measures disclosed in this release is provided below in “Non-GAAP Financial Measures.” Reconciliations of non-GAAP financial measures to the most comparable GAAP measure for each of the periods presented are included later in this release.
Bryan A. Giglia, Chief Executive Officer, stated, “Despite continued moderation in leisure demand, our urban and convention hotels continued to perform well during the third quarter, resulting in our stabilized portfolio, excluding The Confidante Miami Beach and Hilton San Diego Bayfront, growing RevPAR by 2.4% and hotel earnings by 7.2%. We continue to benefit from our recent investment at The Westin Washington, DC Downtown and from our acquisition of the Hyatt Regency San Antonio Riverwalk. We were also encouraged by growing demand for business travel in several of our markets including Boston and San Francisco and strong group demand at Montage Healdsburg.”
Mr. Giglia continued, "We remain focused on positioning Sunstone for meaningful earnings growth in 2025 as we benefit from the renovation and recent conversion of the Marriott Long Beach Downtown, the debut of Andaz Miami Beach and the full year contribution from the Hyatt Regency San Antonio Riverwalk. Since the beginning of the third quarter, we successfully deployed $23 million to repurchase our stock at an average price of $9.79 per share, a meaningful discount to NAV. Our exceptional portfolio combined with our strong balance sheet with meaningful liquidity, position Sunstone to create value for our shareholders by recycling and deploying capital throughout the cycle.”
1
Unaudited Selected Statistical and Financial Data ($ in millions, except RevPAR, ADR and per share amounts)
Three Months Ended September 30,
Nine Months Ended September 30,
2024
2023
Change
2024
2023
Change
Net Income
$
3.2
$
15.6
(79.1)
%
$
42.4
$
79.7
(46.8)
%
(Loss) Income Attributable to Common Stockholders per Diluted Share
$
—
$
0.06
(100.0)
%
$
0.15
$
0.33
(54.5)
%
Comparable Operating Statistics (1)
RevPAR
$
207.56
$
210.37
(1.3)
%
$
218.85
$
225.24
(2.8)
%
Occupancy
68.8
%
69.1
%
(30)
bps
69.9
%
71.4
%
(150)
bps
Average Daily Rate
$
301.69
$
304.44
(0.9)
%
$
313.09
$
315.46
(0.8)
%
Comparable Operating Statistics, excluding The Confidante Miami Beach
RevPAR
$
216.01
$
216.33
(0.1)
%
$
226.66
$
227.20
(0.2)
%
Occupancy
71.6
%
70.3
%
130
bps
72.3
%
71.8
%
50
bps
Average Daily Rate
$
301.69
$
307.72
(2.0)
%
$
313.50
$
316.43
(0.9)
%
Comparable Adjusted EBITDAre Margin, excluding The Confidante Miami Beach
25.2
%
26.6
%
(140)
bps
27.3
%
29.4
%
(210)
bps
Adjusted EBITDAre
$
53.6
$
63.7
(15.9)
%
$
181.6
$
208.8
(13.0)
%
Adjusted FFO Attributable to Common Stockholders
$
36.9
$
46.4
(20.5)
%
$
131.0
$
157.6
(16.9)
%
Adjusted FFO Attributable to Common Stockholders per Diluted Share
$
0.18
$
0.23
(21.7)
%
$
0.64
$
0.76
(15.8)
%
(1)Comparable operating statistics presented in this release include all 15 hotels owned by the Company at September 30,
Oct 10, 2024
2 sho-20241010xex99d1.htm
Exhibit 99.1
Aliso Viejo, Calif. (October 10, 2024) – Sunstone Hotel Investors, Inc. (the "Company" or "Sunstone") (NYSE: SHO) today provided an update on recent operating activity for the third quarter and the estimated resulting impact on its previously provided full-year 2024 outlook.
Operations Update
The Company’s operations for July and August 2024 were consistent with its prior expectations and reflect continued strength in group activity, an acceleration in business travel and an anticipated market-wide moderation in leisure demand in Maui. During the first two months of the quarter, the Company generated growth in total portfolio RevPAR and Total RevPAR, excluding The Confidante Miami Beach, of 2.4% and 6.3%, respectively, and Adjusted EBITDAre of approximately $37 million, which was in-line with the full-year 2024 outlook as presented in the Company’s second quarter earnings release provided on August 7, 2024.
Beginning in September, the Company’s operations were impacted by labor activity at the 1,190-room Hilton San Diego Bayfront (the “Hotel”), which led to the cancellation of certain group events and overall lower business volume at the Hotel. Hilton, the Company’s manager of the Hotel, has been in negotiations with the union that represents a majority of the employees of the Hotel and has reached an agreement on renewed contract terms. The renewed contract terms were ratified by the union members on October 9, 2024, and the Hotel has resumed normal operations.
Based on the business that has been disrupted at the Hotel as a result of the labor activity, the Company anticipates that full-year 2024 total portfolio RevPAR growth will be 125 to 150 basis points lower, Adjusted EBITDAre will be $11 million to $13 million lower and Adjusted FFO Attributable to Common Stockholders per Diluted Share will be approximately $0.06 lower than the 2024 outlook as presented in the Company’s second quarter earnings release. Approximately $6 million to $7 million of the total estimated Adjusted EBITDAre impact relates to business that was disrupted in the third quarter, with the remainder related to business that has been cancelled for the fourth quarter. The Company expects a portion of the group events that have been cancelled will be rebooked at the Hotel for a future period.
The estimated impact on the Company’s prior full-year 2024 outlook is based only upon business that has been disrupted at the Hotel as a result of the labor activity and the Company expects to provide an updated 2024 outlook, including any changes in expectations for the remainder of its portfolio, as part of its third quarter earnings release on November 12, 2024.
Despite the isolated disruption resulting from the labor activity at the Hotel, Sunstone remains well positioned to deliver significant earnings growth into 2025 and beyond driven by the contribution from the Company’s recent brand conversions, including the full-year contribution and recapture of displacement at the recently converted Marriott Long Beach Downtown, the continued ramp-up of multiple assets in the portfolio, the full-year contribution from its recently completed acquisition of the Hyatt Regency San Antonio Riverwalk and the debut of Andaz Miami Beach.
Comparable operating statistics for all hotels excluding The Confidante Miami Beach were as follows (1):
Q3 2024 to August (2)
September 2024 (3)
Occupancy
74
%
67
%
72
%
72
%
ADR
$
295
$
316
$
302
$
313
RevPAR
$
218
$
212
$
216
$
227
RevPAR Change vs. Prior Year
2.4
%
(5.4)
%
(0.2)
%
(0.2)
%
Total RevPAR
$
354
$
345
$
351
$
368
Total RevPAR Change vs. Prior Year
6.3
%
(4.9)
%
2.4
%
1.3
%
Comparable operating statistics for all 15 hotels were as follows (1):
Q3 2024 to August (2)
September 2024 (3)
Occupancy
71
%
64
%
69
%
70
%
ADR
$
295
$
316
$
302
$
313
RevPAR
$
209
$
203
$
208
$
219
RevPAR Change vs. Prior Year
1.0
%
(6.1)
%
(1.4)
%
(2.8)
%
Total RevPAR
$
340
$
332
$
338
$
355
Total RevPAR Change vs. Prior Year
4.7
%
(5.7)
%
1.1
%
(1.6)
%
(1)Comparable operating statistics presented in this release include both prior ownership results and the Company's results for the Hyatt Regency San Antonio Riverwalk, acquired by the Company in April 2024.
(2)Reflects results for July and August 2024
Aug 7, 2024
2 sho-20240807xex99d1.htm
Exhibit 99.1
For Additional Information:
Aaron Reyes
Sunstone Hotel Investors, Inc.
(949) 382-3018
ALISO VIEJO, CA – August 7, 2024 – Sunstone Hotel Investors, Inc. (the “Company” or “Sunstone”) (NYSE: SHO) today announced results for the second quarter ended June 30, 2024.
Second Quarter 2024 Operational Results (as compared to Second Quarter 2023):
●Net Income: Net income was $26.1 million as compared to $43.1 million.
●Comparable RevPAR: Comparable RevPAR decreased 2.0% to $232.59. The average daily rate was $322.60 and occupancy was 72.1%. Excluding The Confidante Miami Beach as it transitions to Andaz Miami Beach, RevPAR increased 0.4%. Excluding The Confidante Miami Beach and the Marriott Long Beach Downtown, which was also under renovation in the second quarter of 2024, RevPAR increased 2.1%.
●Adjusted EBITDAre: Adjusted EBITDAre decreased 13.6% to $73.5 million.
●Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share decreased 15.2% to $0.28.
Information regarding the non-GAAP financial measures disclosed in this release is provided below in “Non-GAAP Financial Measures.” Reconciliations of non-GAAP financial measures to the most comparable GAAP measure for each of the periods presented are included later in this release.
Bryan A. Giglia, Chief Executive Officer, stated, “We generated second quarter earnings that were consistent with our expectations despite less robust RevPAR growth, as we were able to deliver stronger out-of-room spend and were successful in driving efficiencies and cost reductions across our portfolio. We continue to benefit from our recent investment at The Westin Washington, DC Downtown which produced record earnings in the quarter. We were also encouraged by growing demand for business travel in several of our markets including Boston and San Francisco. While overall leisure demand remains strong, the recovery in Maui has been slower, which has led to lower revenue growth and earnings expectations, primarily in the third quarter, and which is reflected in our updated guidance ranges.”
Mr. Giglia continued, “We remain focused on positioning Sunstone for outsized growth as we move into 2025 and beyond. The renovation and rebranding of our Marriott Long Beach Downtown is now complete, the finished product looks exceptional, and we look forward to seeing the growth in earnings going forward. Work is continuing on the transformation of Andaz Miami Beach, which we expect to debut by the end of the year and further contribute to earnings growth in the years to come. We retain the remaining proceeds from the sale of Boston Park Plaza, which we can use to generate shareholder value through hotel acquisitions or the repurchase of our stock.
1
Unaudited Selected Statistical and Financial Data ($ in millions, except RevPAR, ADR and per share amounts)
Three Months Ended June 30,
Six Months Ended June 30,
2024
2023
Change
2024
2023
Change
Net Income
$
26.1
$
43.1
(39.3)
%
$
39.2
$
64.2
(38.9)
%
Income Attributable to Common Stockholders per Diluted Share
$
0.11
$
0.19
(42.1)
%
$
0.16
$
0.27
(40.7)
%
Comparable Operating Statistics (1)
RevPAR
$
232.59
$
237.37
(2.0)
%
$
224.68
$
232.89
(3.5)
%
Occupancy
72.1
%
74.3
%
(220)
bps
70.5
%
72.6
%
(210)
bps
Average Daily Rate
$
322.60
$
319.48
1.0
%
$
318.70
$
320.78
(0.6)
%
Comparable Operating Statistics, excluding The Confidante Miami Beach
RevPAR
$
241.96
$
240.99
0.4
%
$
232.19
$
232.53
(0.1)
%
Occupancy
75.0
%
74.9
%
10
bps
72.7
%
72.5
%
20
bps
Average Daily Rate
$
322.61
$
321.75
0.3
%
$
319.38
$
320.73
(0.4)
%
Comparable Adjusted EBITDAre Margin, excluding The Confidante Miami Beach
30.9
%
32.3
%
(140)
bps
28.3
%
30.7
%
(240)
bps
Adjusted EBITDAre
$
73.5
$
85.1
(13.6)
%
$
128.0
$
145.1
(11.8)
%
Adjusted FFO Attributable to Common Stockholders
$
56.6
$
67.4
(16.0)
%
$
94.1
$
111.2
(15.3)
%
Adjusted FFO Attributable to Common Stockholders per Diluted Share
$
0.28
$
0.33
(15.2)
%
$
0.46
$
0.54
(14.8)
%
(1)Comparable operating statistics presented in this release include all 15 hotels o
May 6, 2024
2 sho-20240503xex99d1.htm
Exhibit 99.1
For Additional Information:
Aaron Reyes
Sunstone Hotel Investors, Inc.
(949) 382-3018
Acquires the Hyatt Regency San Antonio Riverwalk
Increases Quarterly Dividend
ALISO VIEJO, CA – May 6, 2024 – Sunstone Hotel Investors, Inc. (the “Company” or “Sunstone”) (NYSE: SHO) today announced results for the first quarter ended March 31, 2024.
First Quarter 2024 Operational Results (as compared to First Quarter 2023):
●Net Income: Net income was $13.0 million as compared to $21.1 million.
●Comparable RevPAR: Comparable RevPAR decreased 5.1% to $223.06. The average daily rate was $325.16 and occupancy was 68.6%. Excluding The Confidante Miami Beach as it transitions to Andaz Miami Beach, RevPAR decreased 0.7%.
●Adjusted EBITDAre: Adjusted EBITDAre decreased 9.2% to $54.5 million.
●Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share decreased 14.3% to $0.18.
Information regarding the non-GAAP financial measures disclosed in this release is provided below in “Non-GAAP Financial Measures.” Reconciliations of non-GAAP financial measures to the most comparable GAAP measure for each of the periods presented are included later in this release.
Bryan A. Giglia, Chief Executive Officer, stated, “We are pleased with our portfolio’s performance during the first quarter, despite it being the most challenging quarterly comparison of the year relative to 2023, which benefited from highly compressed demand in the early part of the year. We expect our performance for the remainder of the year to accelerate, benefiting from a strong base of group business, and so we have reaffirmed the midpoint of our prior earnings guidance, as adjusted for our recent transaction activity. Following the end of the quarter, we announced the acquisition of the Hyatt Regency San Antonio Riverwalk, successfully redeploying a portion of the proceeds from the sale of Boston Park Plaza and providing an additional layer of earnings growth in addition to the successful performance of the recently rebranded The Westin Washington, DC Downtown, the expected growth from the rebranding of the Marriott Long Beach Downtown at the end of the first quarter and the expected completion of the transformation of Andaz Miami Beach at the end of the year. Our balanced approach to capital allocation is expected to provide meaningful growth into 2025 and beyond.”
Mr. Giglia continued, “Our Board of Directors has elected to increase our quarterly cash dividend, reflecting the incremental earnings from our recent acquisition and our intention to better calibrate the base quarterly distributions with our expected full-year taxable income. Together with the increase in our dividend from last year, our base quarterly dividend is now 80% higher than it was a year ago and is consistent with our strategy of returning incremental capital to stockholders.”
1
Unaudited Selected Statistical and Financial Data ($ in millions, except RevPAR, ADR and per share amounts)
Quarter Ended March 31,
2024
2023
Change
Net Income
$
13.0
$
21.1
(38.2)
%
Income Attributable to Common Stockholders per Diluted Share
$
0.05
$
0.08
(37.5)
%
Comparable Operating Statistics (1)
RevPAR
$
223.06
$
234.93
(5.1)
%
Occupancy
68.6
%
70.5
%
(190)
bps
Average Daily Rate
$
325.16
$
333.24
(2.4)
%
Comparable Operating Statistics, excluding The Confidante Miami Beach
RevPAR
$
229.16
$
230.81
(0.7)
%
Occupancy
70.1
%
69.7
%
40
bps
Average Daily Rate
$
326.90
$
331.15
(1.3)
%
Comparable Adjusted EBITDAre Margin, excluding The Confidante Miami Beach
24.6
%
27.9
%
(330)
bps
Adjusted EBITDAre
$
54.5
$
60.0
(9.2)
%
Adjusted FFO Attributable to Common Stockholders
$
37.5
$
43.8
(14.4)
%
Adjusted FFO Attributable to Common Stockholders per Diluted Share
$
0.18
$
0.21
(14.3)
%
(1)Comparable operating statistics presented in this release include all 14 hotels owned by the Company at March 31, 2024.
Recent Developments
Hyatt Regency San Antonio Riverwalk Acquisition: In April 2024, the Company completed the previously announced acquisition of the 630-room Hyatt Regency San Antonio Riverwalk for a contractual purchase price of $230.0 million. The recently renovated, well-located hotel is situated directly between San Antonio’s famous Riverwalk and the Alamo and with easy access to the convention center. Affiliates of Hyatt Hotels Corporation will continue to manage the hotel and will contribute $8.0 million of key money as part of the transaction, subjec
Feb 23, 2024
2 sho-20240223xex99d1.htm
Exhibit 99.1
For Additional Information:
Aaron Reyes
Sunstone Hotel Investors, Inc.
(949) 382-3018
Returned Nearly $120 Million to Common Stockholders in 2023 Through Dividends and Share Repurchases
ALISO VIEJO, CA – February 23, 2024 – Sunstone Hotel Investors, Inc. (the “Company” or “Sunstone”) (NYSE: SHO) today announced results for the fourth quarter and full year ended December 31, 2023.
Fourth Quarter 2023 Operational Results (as compared to Fourth Quarter 2022):
●Net Income: Net income was $127.0 million as compared to $17.5 million. Excluding the gain on the hotel sold during the quarter, fourth quarter 2023 net income would have been $3.2 million.
●Comparable RevPAR: Comparable RevPAR decreased 2.2% to $206.58. The average daily rate was $318.80 and occupancy was 64.8%. RevPAR at the Company’s urban and convention hotels increased 3.5%.
●Adjusted EBITDAre: Adjusted EBITDAre, excluding noncontrolling interest decreased 20.5% to $54.6 million.
●Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share decreased 26.9% to $0.19.
Full Year 2023 Operational Results (as compared to Full Year 2022):
●Net Income: Net income was $206.7 million as compared to $90.8 million. Excluding the gain on the one hotel sold during 2023 and the three hotels sold in 2022, net income in 2023 would have been $82.9 million as compared to $67.8 million in 2022.
●Comparable RevPAR: Comparable RevPAR increased 5.6% to $226.56. The average daily rate was $324.58 and occupancy was 69.8%. RevPAR at the Company’s urban and convention hotels increased 15.6%.
●Adjusted EBITDAre: Adjusted EBITDAre, excluding noncontrolling interest increased 12.7% to $263.4 million.
●Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share increased 9.2% to $0.95.
Information regarding the non-GAAP financial measures disclosed in this release is provided below in “Non-GAAP Financial Measures.” Reconciliations of non-GAAP financial measures to the most comparable GAAP measure for each of the periods presented are included later in this release.
Bryan A. Giglia, Chief Executive Officer, stated, “We are pleased with our fourth quarter performance as RevPAR growth, EBITDA and FFO all exceeded the high-end of our guidance ranges. Our convention and urban hotels once again led the portfolio, generating an impressive 16% RevPAR growth for the year driven by continued strength in group and business transient demand.”
Mr. Giglia continued, “During 2023, we successfully executed our strategy of recycling capital, investing in our portfolio, and returning capital to shareholders. Consistent with our investment lifecycle approach, we sold Boston Park Plaza at a strong valuation and are working to recycle those proceeds into new opportunities that we expect will drive long-term accretion in NAV per share. Additionally, we are creating future growth by investing in our portfolio, benefiting from the recently completed conversion of The Westin Washington, DC Downtown, and paving the way for the next layer of growth with the repositioning of the Andaz Miami Beach and Marriott Long Beach Downtown. Our strong earnings growth and ample liquidity allowed us to increase our dividend and repurchase our common stock at a discount to NAV, returning nearly $120 million to shareholders during the year. We believe that our active capital recycling, investment in our portfolio to drive future growth, and meaningful return of capital will position Sunstone for further success in 2024.”
1
Unaudited Selected Statistical and Financial Data ($ in millions, except RevPAR, ADR and per share amounts)
Quarter Ended December 31,
Year Ended December 31,
2023
2022
Change
2023
2022
Change
Net Income
$
127.0
$
17.5
627.2
%
$
206.7
$
90.8
127.7
%
Income Attributable to Common Stockholders per Diluted Share
$
0.60
$
0.07
757.1
%
$
0.93
$
0.34
173.5
%
Comparable Operating Statistics (1)
RevPAR
$
206.58
$
211.32
(2.2)
%
$
226.56
$
214.49
5.6
%
Occupancy
64.8
%
65.3
%
(50)
bps
69.8
%
65.4
%
440
bps
Average Daily Rate
$
318.80
$
323.62
(1.5)
%
$
324.58
$
327.97
(1.0)
%
Comparable Operating Statistics, excluding The Confidante Miami Beach
RevPAR
$
211.18
$
212.06
(0.4)
%
$
229.71
$
214.43
7.1
%
Occupancy
65.4
%
65.1
%
30
bps
70.3
%
65.1
%
520
Nov 7, 2023
2 sho-20231107xex99d1.htm
Exhibit 99.1
For Additional Information:
Aaron Reyes
Sunstone Hotel Investors, Inc.
(949) 382-3018
ALISO VIEJO, CA – November 7, 2023 – Sunstone Hotel Investors, Inc. (the “Company” or “Sunstone”) (NYSE: SHO) today announced results for the third quarter ended September 30, 2023.
Third Quarter 2023 Operational Results (as compared to Third Quarter 2022):
●Net Income: Net income was $15.6 million as compared to $20.5 million.
●Comparable RevPAR: Comparable RevPAR was $222.54 and was generally unchanged as compared to the prior year. The average daily rate was $305.69 and occupancy was 72.8%. RevPAR at the Company’s urban and convention hotels increased 7.4%.
●Adjusted EBITDAre: Adjusted EBITDAre, excluding noncontrolling interest decreased 0.2% to $63.7 million.
●Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share decreased 4.2% to $0.23.
Information regarding the non-GAAP financial measures disclosed in this release is provided below in “Non-GAAP Financial Measures.” Reconciliations of non-GAAP financial measures to the most comparable GAAP measure for each of the periods presented are included later in this release.
Bryan A. Giglia, Chief Executive Officer, stated, “Overall, we are pleased with our results in the third quarter as we delivered earnings above the high-end of our guidance range despite having to navigate disruption from the tragic fires on Maui. We remain grateful for the dedication of the hotel associates at Wailea Beach Resort who have worked tirelessly to care for guests and members of the community in the weeks since the fires. While leisure demand continued to moderate during the quarter, our portfolio of well-located urban and convention assets turned in a strong performance. Our operators diligently managed costs, which contributed to better than expected profitability even as leisure travel patterns normalized.”
Mr. Giglia continued, “Shortly after the end of the quarter, we closed on the sale of Boston Park Plaza for an attractive all-cash price of $370 million. Boston Park Plaza has been a successful allocation of capital for Sunstone as we executed on our business plan, meaningfully grew the hotel’s earnings and are now exiting the investment to redeploy the proceeds into higher growth opportunities.”
1
Unaudited Selected Statistical and Financial Data ($ in millions, except RevPAR, ADR and per share amounts)
Three Months Ended September 30,
Nine Months Ended September 30,
2023
2022
Change
2023
2022
Change
Net Income
$
15.6
$
20.5
(24.1)
%
$
79.7
$
73.3
8.8
%
Income Attributable to Common Stockholders per Diluted Share
$
0.06
$
0.08
(25.0)
%
$
0.33
$
0.27
22.2
%
Comparable RevPAR (1)
$
222.54
$
222.50
0.0
%
$
229.17
$
208.84
9.7
%
Comparable Occupancy (1)
72.8
%
71.4
%
140
bps
73.2
%
66.7
%
650
bps
Comparable ADR (1)
$
305.69
$
311.62
(1.9)
%
$
313.08
$
313.10
0.0
%
Comparable Adjusted EBITDAre Margin (1)
27.0
%
28.4
%
(140)
bps
28.9
%
29.0
%
(10)
bps
Adjusted EBITDAre, excluding noncontrolling interest
$
63.7
$
63.8
(0.2)
%
$
208.8
$
165.0
26.5
%
Adjusted FFO Attributable to Common Stockholders
$
46.4
$
51.3
(9.6)
%
$
157.6
$
130.9
20.4
%
Adjusted FFO Attributable to Common Stockholders per Diluted Share
$
0.23
$
0.24
(4.2)
%
$
0.76
$
0.61
24.6
%
(1)Comparable operating statistics presented in this release include all 15 hotels owned by the Company at September 30, 2023, and include both prior ownership results and the Company’s ownership results for The Confidante Miami Beach, acquired by the Company in June 2022.
The Company’s actual results for the quarter ended September 30, 2023 compare to its guidance previously provided as follows:
Metric ($ in millions, except per share data)
Quarter Ended
September 30, 2023
Guidance (1)
Quarter Ended
September 30, 2023
Actual Results (unaudited)
Performance Relative to Prior Guidance Midpoint
Net Income
$8 to $13
$16
$5
Total Portfolio RevPAR Growth (as compared to the third quarter of 2022)
- 1.0% to + 2.0%
0.0%
- 50 bps
Adjusted EBITDAre
$57 to $62
$64
$4
Adjusted FFO Attributable to Common Stockholders
$38 to $44
$46
$5
Adjusted FFO Attributable to Common Stockholders per Dil
Aug 4, 2023
2 sho-20230804xex99d1.htm
Exhibit 99.1
For Additional Information:
Aaron Reyes
Sunstone Hotel Investors, Inc.
(949) 382-3018
Increases Quarterly Dividend
ALISO VIEJO, CA – August 4, 2023 – Sunstone Hotel Investors, Inc. (the “Company” or “Sunstone”) (NYSE: SHO) today announced results for the second quarter ended June 30, 2023.
Second Quarter 2023 Operational Results (as compared to Second Quarter 2022):
●Net Income: Net income was $43.1 million as compared to $37.7 million.
●Comparable RevPAR: Comparable RevPAR increased 3.6% to $245.91. The average daily rate was $319.36 and occupancy was 77.0%. RevPAR at the Company’s urban and group hotels increased 10.7%.
●Adjusted EBITDAre: Adjusted EBITDAre, excluding noncontrolling interest increased 15.0% to $85.1 million.
●Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share increased 10.0% to $0.33.
Information regarding the non-GAAP financial measures disclosed in this release is provided below in “Non-GAAP Financial Measures.” Reconciliations of non-GAAP financial measures to the most comparable GAAP measure for each of the periods presented are included later in this release.
Bryan A. Giglia, Chief Executive Officer, stated, “During the quarter, our portfolio generated profitability that was above the high-end of our guidance ranges despite a moderation in leisure travel, which contributed to softer revenue growth. Our group hotels continue to benefit from steady demand trends and healthy ancillary spend. We remain encouraged by the ongoing recovery in our urban markets, particularly San Francisco, which was once again our highest RevPAR growth market and continues to demonstrate steady growth as the market recovers. Working with our operators, we are focused on preserving operational efficiencies and identifying additional cost reductions to best position the portfolio to maximize earnings as the demand environment evolves. Overall, we are pleased with our portfolio’s ability to manage profitability in the quarter and believe there are additional opportunities to make meaningful improvements at our resorts.”
Mr. Giglia continued, “Consistent with our strategy of returning additional capital to shareholders, our Board of Directors has increased our quarterly common dividend to $0.07 per share. On an annualized basis, our increased quarterly dividend better reflects the normalized taxable income we believe our portfolio will produce over various cyclical periods. Together with our focus on capital recycling and portfolio investment, the increased dividend is further demonstration of our commitment to returning capital and delivering value for our owners.”
1
Unaudited Selected Statistical and Financial Data ($ in millions, except RevPAR, ADR and per share amounts)
Three Months Ended June 30,
Six Months Ended June 30,
2023
2022
Change
2023
2022
Change
Net Income
$
43.1
$
37.7
14.3
%
$
64.2
$
52.8
21.5
%
Income Attributable to Common Stockholders per Diluted Share
$
0.19
$
0.15
26.7
%
$
0.27
$
0.19
42.1
%
Comparable RevPAR (1)
$
245.91
$
237.28
3.6
%
$
232.53
$
201.86
15.2
%
Comparable Occupancy (1)
77.0
%
74.2
%
280
bps
73.4
%
64.3
%
910
bps
Comparable ADR (1)
$
319.36
$
319.79
(0.1)
%
$
316.80
$
313.93
0.9
%
Comparable Adjusted EBITDAre Margin (1)
32.3
%
33.3
%
(100)
bps
29.7
%
29.3
%
40
bps
Adjusted EBITDAre, excluding noncontrolling interest
$
85.1
$
74.0
15.0
%
$
145.1
$
101.2
43.4
%
Adjusted FFO Attributable to Common Stockholders
$
67.4
$
63.2
6.6
%
$
111.2
$
79.6
39.7
%
Adjusted FFO Attributable to Common Stockholders per Diluted Share
$
0.33
$
0.30
10.0
%
$
0.54
$
0.37
45.9
%
(1)Comparable operating statistics presented in this release include all 15 hotels owned by the Company at June 30, 2023, and include both prior ownership results and the Company’s ownership results for The Confidante Miami Beach, acquired by the Company in June 2022.
The Company’s actual results for the quarter ended June 30, 2023 compare to its guidance previously provided as follows:
Metric ($ in millions, except per share data)
Quarter Ended
June 30, 2023
Guidance (1)
Quarter Ended
June 30, 2023
Actual Results (unaudited)
Performance Relative to Prior Guidance Midpoint
Net Income
$29 to $35
May 5, 2023
3 sho-20230501xex99d1.htm
Exhibit 99.1
For Additional Information:
Aaron Reyes
Sunstone Hotel Investors, Inc.
(949) 382-3018
Returns Additional Capital to Stockholders Through Incremental Share Repurchases and Dividends
Refinances Only 2023 Debt Maturity
ALISO VIEJO, CA – May 5, 2023 – Sunstone Hotel Investors, Inc. (the “Company” or “Sunstone”) (NYSE: SHO), the owner of Long-Term Relevant Real Estate® in the lodging industry, today announced results for the first quarter ended March 31, 2023.
First Quarter 2023 Operational Results (as compared to First Quarter 2022):
●Net Income: Net income was $21.1 million as compared to $15.1 million. Excluding the gain on three hotels sold during the quarter, first quarter 2022 would have been a net loss of $7.8 million.
●Comparable RevPAR: Comparable RevPAR increased 32.0% to $218.82. The average daily rate was $313.94 and occupancy was 69.7%.
●Adjusted EBITDAre: Adjusted EBITDAre, excluding noncontrolling interest increased 121.0% to $60.0 million.
●Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share increased 162.5% to $0.21.
Information regarding the non-GAAP financial measures disclosed in this release is provided below in “Non-GAAP Financial Measures.” Reconciliations of non-GAAP financial measures to the most comparable GAAP measure for each of the periods presented are included later in this release.
Bryan A. Giglia, Chief Executive Officer, stated, “Our first quarter results exceeded our expectations as corporate and group demand continued to accelerate. Our group hotels performed very well, growing profitability more than 170% over the prior year and contributing to corporate earnings that surpassed the high end of our guidance range. Since the start of the year, we have continued to opportunistically repurchase our common stock, acquiring $21 million of shares at a meaningful discount to our net asset value. Additionally, during the quarter, we took steps to address our only 2023 debt maturity by refinancing the mortgage secured by the Hilton San Diego Bayfront with a new $225 million unsecured term loan, which will unencumber the hotel and extend our maturities. Last, we took advantage of a pullback in interest rates and swapped $175 million of floating rate debt to fixed rates, which will decrease our near-term interest expense and increase the percentage of our total debt and preferred equity that is fixed to nearly 65%.”
Mr. Giglia continued, “After a successful first quarter, we are encouraged by our near-term outlook as we expect the investments we made in the portfolio will combine with the ongoing demand recovery to provide additional growth. Over the last year, we have thoughtfully allocated our capital to achieve a balance of short-term earnings accretion and long-term value creation. Our recent investments in the wine country resorts are expected to combine with the completion of the soon-to-be rebranded Westin Washington DC Downtown to add incremental earnings this year. As demand growth begins to normalize across the industry in the coming quarters, we expect the investments we are making now to transform the Andaz Miami Beach will then provide the next layer of our growth.”
1
Unaudited Selected Statistical and Financial Data ($ in millions, except RevPAR, ADR and per share amounts)
Quarter Ended March 31,
2023
2022
Change
Net Income
$
21.1
$
15.1
39.4
%
Income Attributable to Common Stockholders per Diluted Share
$
0.08
$
0.05
60.0
%
Comparable RevPAR (1)
$
218.82
$
165.75
32.0
%
Comparable Occupancy (1)
69.7
%
54.2
%
1,550
bps
Comparable ADR (1)
$
313.94
$
305.82
2.7
%
Comparable Adjusted EBITDAre Margin (1)
26.9
%
23.6
%
330
bps
Adjusted EBITDAre, excluding noncontrolling interest
$
60.0
$
27.2
121.0
%
Adjusted FFO Attributable to Common Stockholders
$
43.8
$
16.4
167.0
%
Adjusted FFO Attributable to Common Stockholders per Diluted Share
$
0.21
$
0.08
162.5
%
(1)Comparable operating statistics presented in this release include all 15 hotels owned by the Company at March 31, 2023, and include both prior ownership results and the Company’s ownership results for The Confidante Miami Beach, acquired by the Company in June 2022.
The Company’s actual results for the quarter ended March 31, 2023 compare to its guidance previously provided as follows:
Metric ($ in millions, except per share data)
Quarter Ended March 31, 2023 Guidance (1)
Quarter Ended
March 31, 2023
Actual Results (unaudited)
Performance Relative to Prior Guidance Midpoint
Net Income
$3 to $7
$21
+
Feb 22, 2023
2 sho-20230222xex99d1.htm
Exhibit 99.1
For Additional Information:
Aaron Reyes
Sunstone Hotel Investors, Inc.
(949) 382-3018
Completes Nearly $700 Million of Transaction Activity in 2022
Returns Additional Capital to Shareholders Through Incremental Share Repurchases and Dividends
ALISO VIEJO, CA – February 22, 2023 – Sunstone Hotel Investors, Inc. (the “Company” or “Sunstone”) (NYSE: SHO), the owner of Long-Term Relevant Real Estate® in the lodging industry, today announced results for the fourth quarter and full year ended December 31, 2022.
Fourth Quarter 2022 Operational Results (as compared to Fourth Quarter 2021):
●Net Income: Net income was $17.5 million as compared to $138.3 million. Excluding the gain on two hotels sold during the quarter, fourth quarter 2021 would have been a net loss of $14.2 million.
●Comparable Portfolio RevPAR: RevPAR at the comparable 12 hotels the Company owned during both 2022 and 2021 plus The Confidante Miami Beach (the “Comparable Portfolio”), increased 34.2% to $193.59. The average daily rate was $286.37 and occupancy was 67.6%.
●Total Portfolio RevPAR: RevPAR at the 15 hotels, which includes the Comparable Portfolio, the Montage Healdsburg and the Four Seasons Resort Napa Valley (the “Total Portfolio”), was $206.73. The average daily rate was $308.55 and occupancy was 67.0%.
●Adjusted EBITDAre: Adjusted EBITDAre, excluding noncontrolling interest increased 120.6% to $68.8 million.
●Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share increased 188.9% to $0.26. In 2022, the Company changed its presentation of Adjusted FFO attributable to common stockholders to exclude the noncash amortization expense associated with deferred stock compensation. Adjusted FFO attributable to common stockholders for the prior periods presented in this release have also been adjusted to exclude this expense. The per share impact of this change as compared to the Company’s prior presentation is $0.01 for both of the fourth quarters of 2022 and 2021.
Full Year 2022 Operational Results (as compared to Full Year 2021):
●Net Income: Net income was $90.8 million as compared to $33.0 million. Excluding the gains on three hotels sold during 2022 and two hotels sold during 2021, net income in 2022 would have been $67.8 million as compared to a net loss of $119.5 million in 2021.
●Comparable Portfolio RevPAR: RevPAR at the Comparable Portfolio increased 73.2% to $194.31. The average daily rate was $289.15 and occupancy was 67.2%.
●Total Portfolio RevPAR: RevPAR at the Total Portfolio was $208.38. The average daily rate was $311.94 and occupancy was 66.8%.
●Adjusted EBITDAre: Adjusted EBITDAre, excluding noncontrolling interest increased 247.8% to $233.8 million.
●Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share increased 866.7% to $0.87. The per share impact of the change in presentation noted above as compared to the Company’s prior presentation is $0.05 for both 2022 and 2021.
1
Information regarding the non-GAAP financial measures disclosed in this release is provided below in “Non-GAAP Financial Measures.” Reconciliations of non-GAAP financial measures to the most comparable GAAP measure for each of the periods presented are included later in this release.
Bryan A. Giglia, Chief Executive Officer, stated, “Our fourth quarter results exceeded our expectations as growing corporate and group business at our urban hotels continued to catch up with strong leisure demand at our resort properties. During the quarter, we collected pandemic-related business interruption insurance proceeds which added to our earnings. Overall, our fourth quarter builds on what was already a very productive year at Sunstone. During 2022, we completed the sale of three hotels in a lower growth market and recycled those proceeds into the acquisition of higher quality assets with a better growth profile, extended our debt maturities and unlocked more of the capacity in our balance sheet, invested in our portfolio, and returned meaningful capital to our shareholders.”
Mr. Giglia continued, “As we look forward into 2023, I am encouraged about the embedded growth potential of our portfolio. Continued demand recovery at our urban hotels and the ramp-up of our premier wine country resorts, will combine with the completion of our Westin Washington DC conversion to generate substantial earnings growth this year. In addition, in the second quarter, we will begin the transformational renovation at our recently acquired hotel in Miami, which will debut as Andaz Miami Beach next year and provide another layer of growth for the portfolio. While the macroeconomic outlook remains uncertain, we will look for opportunities to further recycle capital and return incremental capital to shareholders in the coming year.”
Unaudited Sel
Nov 8, 2022
2 sho-20221108xex99d1.htm
Exhibit 99.1
For Additional Information:
Aaron Reyes
Sunstone Hotel Investors, Inc.
(949) 382-3018
Returns Capital to Shareholders Through Additional Share Repurchases and Dividends
IRVINE, CA – November 8, 2022 – Sunstone Hotel Investors, Inc. (the “Company” or “Sunstone”) (NYSE: SHO), the owner of Long-Term Relevant Real Estate® in the lodging industry, today announced results for the third quarter ended September 30, 2022.
Third Quarter 2022 Operational Results (as compared to Third Quarter 2021):
●Net Income (Loss): Net income was $20.5 million as compared to a net loss of $22.1 million.
●Comparable Portfolio RevPAR: RevPAR at the comparable 12 hotels the Company owned during both 2022 and 2021 plus The Confidante Miami Beach (the “Comparable Portfolio”), increased 49.0% to $207.18. The average daily rate was $287.75 and occupancy was 72.0%.
●Total Portfolio RevPAR: RevPAR at the 15 hotels, which includes the Comparable Portfolio, the Montage Healdsburg and the Four Seasons Resort Napa Valley (the “Total Portfolio”), was $222.50. The average daily rate was $311.62 and occupancy was 71.4%.
●Adjusted EBITDAre: Adjusted EBITDAre, excluding noncontrolling interest increased 80.6% to $63.8 million.
●Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share increased 118.2% to $0.24. In 2022, the Company changed its presentation of Adjusted FFO attributable to common stockholders to exclude the noncash amortization expense associated with deferred stock compensation. Adjusted FFO attributable to common stockholders for the prior periods presented in this release have also been adjusted to exclude this expense. The per share impact of this change as compared to the Company’s prior presentation is $0.01 for both of the third quarters of 2022 and 2021.
Information regarding the non-GAAP financial measures disclosed in this release is provided below in “Non-GAAP Financial Measures.” Reconciliations of non-GAAP financial measures to the most comparable GAAP measure for each of the periods presented are included later in this release.
Bryan A. Giglia, Chief Executive Officer, stated, “We are pleased with our operating results in the third quarter which reflect continued strength in leisure travel and incremental growth in corporate and group demand. During the quarter, our operators aggressively grew room rates and delivered operating margins that were near pre-pandemic levels, despite rising costs. We are particularly encouraged by the increasing business volume we saw in September at our urban and group-oriented hotels which contributed to comparable portfolio monthly RevPAR that was above 2019 levels for the first time since the pandemic began. These positive trends have continued into October with our portfolio maintaining strong rates as occupancy continues to rebuild.”
Mr. Giglia continued, “During the third quarter, we successfully allocated capital by making strategic investments in our portfolio, initiating a value enhancing repositioning of our recently acquired resort in Miami and returning additional capital to our shareholders. We recently completed the guestroom renovation at the Hyatt Regency San Francisco and continued to advance the Westin conversion at our hotel in Washington, DC. These internal investments are expected to provide strong returns by enabling the hotels to better capture additional business as corporate and group events increasingly return to these markets. We are pleased with the initial performance of our recently acquired hotel in Miami, which is pacing ahead of expectations leading up to the start of its transformation to Andaz Miami Beach next year. Additionally, we continue to return capital to our shareholders through quarterly dividends and additional share repurchases. Our balance sheet retains capacity for additional capital deployment, and we continue to explore ways to recycle capital into higher growth opportunities.”
1
Unaudited Selected Statistical and Financial Data ($ in millions, except RevPAR, ADR and per share amounts)
Three Months Ended September 30,
Nine Months Ended September 30,
2022
2021
Change
2022
2021
Change
Net Income (Loss)
$
20.5
$
(22.1)
192.6
%
$
73.3
$
(105.3)
169.6
%
Income (Loss) Attributable to Common Stockholders per Diluted Share
$
0.08
$
(0.13)
161.5
%
$
0.27
$
(0.56)
148.2
%
Comparable Portfolio RevPAR (1)
$
207.18
$
139.09
49.0
%
$
194.66
$
101.49
91.8
%
Comparable Portfolio Occupancy (1)
72.0
%
53.7
%
1,830
bps
67.1
%
42.
Sep 14, 2022
2 sho-20220914xex99d1.htm
Exhibit 99.1
Irvine, Calif. (September 14, 2022) – Sunstone Hotel Investors, Inc. (the "Company" or "Sunstone") (NYSE: SHO), the owner of Long-Term Relevant Real Estate® in the lodging industry, today provided an update on recent operating trends. The Company’s operations for July and August 2022 reflect continued strong rate growth and recovering occupancy levels. While leisure travel continues to be robust, the Company is seeing the greatest demand growth at its urban and group-oriented hotels which are experiencing higher lead volumes, an increase in near-term booking activity, better than expected attendance at group events and increased business transient demand.
Operations Update
●Occupancy for the comparable 13 hotels which include all hotels currently owned by the Company except Montage Healdsburg and Four Seasons Resort Napa Valley (the “Comparable Portfolio”) was down 1,450 basis points in Q3 2022 QTD as compared to the same period in 2019. Excluding the Renaissance Washington DC, which is undergoing significant renovation work in advance of its conversion to the Westin Washington DC in 2023, Comparable Portfolio occupancy was down only 1,270 basis points as compared to the same period in 2019.
●Average Daily Rate for the Comparable Portfolio in Q3 2022 QTD was 16.9% higher than the same period in 2019 with nearly every hotel in the portfolio achieving higher rates than 2019. Excluding the Renaissance Washington DC, Comparable Portfolio ADR was 16.5% higher as compared to the same period in 2019.
●RevPAR for the Comparable Portfolio was down 2.7% in Q3 2022 QTD as compared to the same period in 2019. Excluding the Renaissance Washington DC, Comparable Portfolio RevPAR was down only 0.4% as compared to the same period in 2019.
●Group booking activity has increased in recent weeks with Comparable Portfolio group revenue pace for the second half of 2022 now down only 13% as compared to the same time in 2019. This represents an increase of nearly 200 basis points from June 2022.
●As of September 2022, the Comparable Portfolio has 86% of total transient room nights on-the-books for September to December 2022 as compared to the same period in 2019, with average rates approximately 27% higher than the same period in 2019.
Operating statistics for the Comparable Portfolio presented here and elsewhere in this release include both prior ownership results and the Company’s results for The Confidante Miami Beach, acquired by the Company in June 2022. The Company obtained prior ownership information from the hotel’s previous owner during the due diligence period before acquiring the hotel. The Company performed a limited review of the information as part of its analysis of the acquisition. As of August 31, 2022, Comparable Portfolio operating statistics were as follows:
Occupancy (1)
RevPAR (1)
2022
Change vs. 2019
2022
Change vs. 2019
2022
Change vs. 2019
July
74.6
%
(1,300)
bps
$
292.96
15.3
%
$
218.55
(1.8)
%
August
69.9
%
(1,600)
bps
$
277.27
18.4
%
$
193.81
(3.6)
%
72.2
%
(1,450)
bps
$
285.37
16.9
%
$
206.04
(2.7)
%
Q3 2022 QTD Excl. Conversion (2)
74.9
%
(1,270)
bps
$
292.91
16.5
%
$
219.39
(0.4)
%
66.5
%
(1,850)
bps
$
289.75
14.2
%
$
192.68
(10.7)
%
2022 YTD Excl. Conversion (2)
68.2
%
(1,740)
bps
$
294.28
14.7
%
$
200.70
(8.6)
%
Operating statistics for all 15 hotels owned by the Company as of the date of this release were as follows ($ in millions, except RevPAR and ADR):
July 2022
August 2022 (1)
Occupancy
73.8
%
69.2
%
71.5
%
66.1
%
ADR
$
315.59
$
297.07
$
306.62
$
311.91
RevPAR
$
232.91
$
205.57
$
219.23
$
206.17
Total Revenues
$
86
$
75
$
161
$
604
Hotel Adjusted EBITDAre
$
27
$
20
$
47
$
177
(1)Results for August 2022 are preliminary and may be adjusted during the month end closing process. Preliminary Q3 2022 QTD and 2022 YTD reflect preliminary results through August 31, 2022.
(2)Excludes the Renaissance Washington DC which is undergoing significant renovation work in advance of its conversion to the Westin Washington DC in 2023.
About Sunstone Hotel Investors
Sunstone Hotel Investors, Inc. is a lodging real estate investment trust (“REIT”). Sunstone’s strategy is to create long-term stakeholder value through the acquisition, active ownership and disposition of hotels considered to be Long-T
Aug 3, 2022
2 sho-20220803xex99d1.htm
Exhibit 99.1
For Additional Information:
Aaron Reyes
Sunstone Hotel Investors, Inc.
(949) 382-3018
Completes Acquisition of The Confidante Miami Beach and the Remaining 25% JV Interest in the
Hilton San Diego Bayfront
Amends Credit Agreement to Extend Maturities and Increase Debt Capacity
Continues Share Repurchases and Reinstates Common Dividend
IRVINE, CA – August 3, 2022 – Sunstone Hotel Investors, Inc. (the “Company” or “Sunstone”) (NYSE: SHO), the owner of Long-Term Relevant Real Estate® in the lodging industry, today announced results for the second quarter ended June 30, 2022.
Second Quarter 2022 Operational Results (as compared to Second Quarter 2021):
●Net Income (Loss): Net income was $37.7 million as compared to a net loss of $27.9 million.
●Comparable Portfolio RevPAR: RevPAR at the comparable 12 hotels the Company owned during both 2022 and 2021 plus The Confidante Miami Beach (the “Comparable Portfolio”), increased 98.4% to $220.37. The average daily rate was $295.40 and occupancy was 74.6%.
●Total Portfolio RevPAR: RevPAR at the 15 hotels, which includes the Comparable Portfolio, the Montage Healdsburg and the Four Seasons Resort Napa Valley (the “Total Portfolio”), was $237.28. The average daily rate was $319.79 and occupancy was 74.2%.
●Adjusted EBITDAre: Adjusted EBITDAre, excluding noncontrolling interest increased 382.9% to $74.0 million.
●Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share increased 2,900.0% to $0.30. In 2022, the Company changed its presentation of Adjusted FFO attributable to common stockholders to exclude the noncash amortization expense associated with deferred stock compensation. Adjusted FFO attributable to common stockholders for the prior periods presented in this release have also been adjusted to exclude this expense. The per share impact of this change as compared to the Company’s prior presentation is $0.02 for both of the second quarters of 2022 and 2021.
Information regarding the non-GAAP financial measures disclosed in this release is provided below in “Non-GAAP Financial Measures.” Reconciliations of non-GAAP financial measures to the most comparable GAAP measure for each of the periods presented are included later in this release.
Bryan A. Giglia, Chief Executive Officer, stated, “Our second quarter results reflect significant sequential growth as increasing amounts of corporate and group demand added to already strong leisure travel. Our portfolio occupancy is at the highest level since early 2020 and with substantial rate growth this year, our resulting comparable RevPAR is approaching pre-pandemic levels. Despite labor and cost challenges, our operators have diligently managed their revenues and expenses and delivered robust profit margins. While growth continues to be uneven across markets, we are encouraged by the trends we are seeing throughout our portfolio.”
Mr. Giglia continued, “During the quarter, we completed two hotel transactions that we expect to enhance our per share NAV growth and provide additional cash flow and earnings in the coming years as all hotel demand segments stabilize. We also completed an amendment to our bank credit agreement which gives us additional capital allocation flexibility and unlocks capacity in our balance sheet. Additionally, our Board of Directors has reinstated our common dividend, adding to the nearly $80 million in capital that we have returned to shareholders so far this year in the form of share repurchases. We have now completed nearly $700 million of transactions in 2022, and we are pleased with the progress we have made in more effectively recycling capital into new hotels and returning capital to our shareholders.”
1
Unaudited Selected Statistical and Financial Data ($ in millions, except RevPAR, ADR and per share amounts)
Three Months Ended June 30,
Six Months Ended June 30,
2022
2021
Change
2022
2021
Change
Net Income (Loss)
$
37.7
$
(27.9)
235.0
%
$
52.8
$
(83.2)
163.5
%
Income (Loss) Attributable to Common Stockholders per Diluted Share
$
0.15
$
(0.16)
193.8
%
$
0.19
$
(0.43)
144.2
%
Comparable Portfolio RevPAR (1)
$
220.37
$
111.09
98.4
%
$
188.26
$
82.24
128.9
%
Comparable Portfolio Occupancy (1)
74.6
%
48.3
%
2,630
bps
64.6
%
37.2
%
2,740
bps
Comparable Portfolio ADR (1)
$
295.40
$
230.00
28.4
%
$
291.43
$
221.08
31.8
%
Total Portfolio RevPAR (2)
$
237.28
N/A
N/A
Jun 2, 2022
2 sho-20220527xex99d1.htm
Exhibit 99.1
SUNSTONE HOTEL INVESTORS COMPLETES ACQUISITION OF THE CONFIDANTE MIAMI BEACH AND PROVIDES BUSINESS UPDATE
Irvine, Calif. (June 2, 2022) – Sunstone Hotel Investors, Inc. (the "Company" or "Sunstone") (NYSE: SHO), the owner of Long-Term Relevant Real Estate® in the lodging industry, today announced that it has completed the previously announced acquisition of the 339-room The Confidante Miami Beach (the “Hotel”) for a purchase price of $232 million, or $684,000 per key. The Company will invest approximately $60 million to reposition the Hotel into a premiere beachfront resort under Hyatt's luxury, lifestyle Andaz brand. Upon completion of the renovation, Sunstone will own a well-located, fully renovated, beachfront resort at a highly attractive all-in basis. The Company expects the Hotel will generate an 8% to 9% stabilized net operating income yield on the total investment in the Hotel, including the planned repositioning. The renovation program will begin in phases, starting in the fourth quarter of 2022 with completion expected to occur in the first half of 2024 when the Hotel will debut as Andaz Miami Beach.
The Company expects the Hotel will generate $3.5 to $4.0 million of EBITDA during its ownership period in 2022. The acquisition was funded from available cash and with $140 million of proceeds received from the Company’s previously undrawn revolving credit facility. Together with the expected funding for the previously announced acquisition of the remaining 25% joint venture interest in the Hilton San Diego Bayfront which is expected to close by the end of June, the Company anticipates having an outstanding credit facility balance at the end of the second quarter of approximately $240 million. Based on the Company’s anticipated leverage ratio as of the end of the second quarter, borrowings on the credit facility are expected to bear interest at the rate of one-month LIBOR plus 1.50%.
Operations Update
The Company’s operations for April and May 2022 reflect accelerating hotel demand as compared to the first quarter of 2022. While leisure travel continues to be robust, the greatest demand growth is occurring at the Company’s urban and group-oriented hotels which are experiencing an increase in near-term booking activity, higher than expected attendance at group events, and increased business transient volume.
●Occupancy at the comparable 12 hotels the Company owned during both 2022 and 2019 (the “12 Hotel Comparable Portfolio”) has improved from down more than 2,800 bps as compared to 2019 in the first quarter of 2022 to down only 1,240 bps in Q2 2022 QTD.
●Average Daily Rate at the 12 Hotel Comparable Portfolio has exceeded 2019 levels in each month of 2022 and is higher by 11.3% so far in Q2 2022 QTD.
●As of April 30, 2022, group revenue pace for the 12 Hotel Comparable Portfolio for Q2 through Q4 2022 was down only 15% as compared to the same time in 2019, with average rates approximately 5% higher than in 2019.
●As of mid-May, the 12 Hotel Comparable Portfolio had 87% of the total transient room nights on-the-books for June to December as compared to the same time in 2019, with average rates approximately 31% higher than in 2019.
●In the second quarter 2019, the 12 Hotel Comparable Portfolio generated RevPAR of $229.50. Based on stronger demand acceleration in April and May, the Company currently anticipates that RevPAR at the 12 Hotel Comparable Portfolio for the second quarter 2022 will be down only 6% to 8% as compared to the second quarter of 2019.
Operating statistics for the 12 Hotel Comparable Portfolio as of May 31, 2022 were as follows:
Occupancy
ADR
RevPAR
2022
Change vs. 2019
2022
Change vs. 2019
2022
Change vs. 2019
April
75.7
%
(1,290)
bps
$
296.52
13.1
%
$
224.47
(3.3)
%
May (1)
73.4
%
(1,180)
bps
$
286.73
9.4
%
$
210.46
(5.8)
%
74.5
%
(1,240)
bps
$
291.62
11.3
%
$
217.26
(4.6)
%
61.8
%
(2,170)
bps
$
285.64
10.7
%
$
176.53
(18.0)
%
Operating statistics for all 14 hotels owned by the Company as of May 31, 2022 were as follows:
April 2022
May 2022 (1)
Occupancy
75.3
%
73.1
%
74.2
%
61.5
%
ADR
$
319.81
$
314.41
$
317.11
$
309.07
RevPAR
$
240.82
$
229.83
$
235.30
$
190.08
(1)Results for May 2022 are preliminary and may be adjusted during the month end closing process. Preliminary Q2 2022 QTD and 2022 YTD reflect preliminary results through May 31, 2022.
Share Repurchase Update
Since the beginning of April through June 1, 2022, the Compan
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