Sunstone Hotel Investors Inc
NYSE:SHO

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Sunstone Hotel Investors Inc
NYSE:SHO
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Price: 9.29 USD 1.75% Market Closed
Market Cap: 1.8B USD

Sunstone Hotel Investors Inc
Investor Relations

Sunstone Hotel Investors Inc. is a real estate investment trust (REIT) that has carved out a niche in the upscale lodging market by owning, maintaining, and monetizing premier hotel properties across diverse geographic locations in the United States. With a strategic focus on acquiring and developing properties in sought-after urban and resort locations, Sunstone has woven a portfolio that distinguishes itself by its quality and potential for high revenue per available room (RevPAR). Their collection of hotels represents a diversified blend of prestigious brands and independent properties, each managed by skilled third-party operators who bring industry expertise and operational efficiencies to the table.

The company's business model is anchored in generating revenues through leasing these properties to renowned hotel management firms. This strategic outsourcing allows Sunstone to concentrate on maximizing portfolio value by focusing on capital improvements, strategic acquisitions, and potential divestitures to optimize returns. This diligent investment strategy is complemented by their ability to adapt to market trends and economic cycles, ensuring their business remains resilient even amidst industry fluctuations. By aligning with major hotel operators and leveraging their hospitality expertise, Sunstone captures both the growth of the travel sector and premium pricing in top-tier accommodations while mitigating operational risks typically associated with direct hotel management.

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Last Earnings Call
Fiscal Period
Q3 2025
Call Date
Nov 7, 2025
AI Summary
Q3 2025

Q3 In Line: Sunstone Hotel Investors delivered third quarter earnings in line with expectations despite challenges from the Napa Valley fire and mixed demand trends.

RevPAR Growth: Total RevPAR increased 2% year-over-year in Q3, with portfolio-wide booking momentum and strong group business offsetting softer leisure and government demand.

Margin Expansion: Cost controls drove margin growth, with urban hotels achieving 140 basis points of margin expansion and notable EBITDA margin improvement in Boston.

Positive Outlook Maintained: Management maintained full-year earnings guidance and expects Q4 to be the strongest RevPAR growth quarter, projecting mid-single-digit portfolio RevPAR gains.

Strong Balance Sheet: The company ended Q3 with $700 million in total liquidity, extended debt maturities, and no significant maturities until 2028.

Capital Allocation: Year-to-date, Sunstone repurchased 11.4 million shares for $101 million and announced a $0.09 per share dividend for Q4.

Asset Recycling: Management highlighted active portfolio management, with $600 million in both asset sales and acquisitions, and remains open to further transactions to maximize value.

Transaction Market: The hotel transaction market remains slow, especially for large deals, but Sunstone remains ready to act if opportunities arise.

Key Financials
Adjusted EBITDAre
$50 million
Adjusted FFO per diluted share
$0.17
EBITDA Margin (Marriott Boston Long Wharf, Q3)
47%
Net Leverage
3.5x trailing earnings (4.8x including preferred equity)
Total Liquidity
$700 million
Cash and Cash Equivalents
$200 million (including restricted cash)
Share Repurchases (Year-to-date)
11.4 million shares at an average price of $8.83 for $101 million
Common Dividend (Q4)
$0.09 per share
Asset Dispositions
$600 million (since CEO appointment)
Asset Acquisitions
$600 million (since CEO appointment)
Portfolio Share Repurchased
14% of outstanding shares (since CEO appointment)
Q3 Booking Volume
Up 6% YoY, strongest since pre-pandemic
G&A Expense Guidance (Full-year)
$20–21 million
Earnings Call Recording
Other Earnings Calls

Management

Mr. Bryan Albert Giglia
CEO & Director
No Bio Available
Mr. David M. Klein J.D.
Executive VP, General Counsel & Secretary
No Bio Available
Ms. Denise Hertle CPA
Vice President of Corporate Accounting
No Bio Available

Contacts

Address
CALIFORNIA
Irvine
200 Spectrum Center Dr Fl 21
Contacts