Core Viewpoint - Sunstone Hotel Investors, Inc. will report its financial results for the second quarter of 2025 on August 6, 2025, before market opening [1] Company Information - Sunstone Hotel Investors, Inc. is a lodging real estate investment trust (REIT) focused on creating long-term stakeholder value through the acquisition, active ownership, and disposition of well-located hotel and resort real estate [3]

Key Takeaways SHO sold the 252-room Hilton New Orleans St. Charles for $47M, or about $187K per key. Disposition proceeds were fully reinvested into accretive share repurchases amid favorable market conditions. SHO will provide more details on the sale's impact on its 2025 outlook in the Q2 earnings release.Sunstone Hotel Investors, Inc. (SHO) recently sold Hilton New Orleans St. Charles, encompassing 252 rooms for a gross sale price of $47 million, or approximately $187,000 per key.The sale price of the ...

Group 1 - The focus is on Sunstone Hotel Investors, Inc. (NYSE: SHO), recognized as one of the most stable companies in the REIT sector [1] - Sunstone Hotel Investors has two publicly traded preferred shares [1] - The investing group Trade With Beta offers features such as frequent picks for mispriced preferred stocks and baby bonds, weekly reviews of over 1200 equities, IPO previews, and hedging strategies [1] Group 2 - The article emphasizes the importance of active investor participation and offers a free trial for interested parties [1] - The analyst has a beneficial long position in the shares of SHO.PR.H through various financial instruments [1]

Sunstone Hotel Investors, Inc. ( SHO ) is a hotel REIT. The company owns 15 hotel and resorts, properties which fall in the high end segment of the market. The REIT comes with a $1.7 billion common equityWith an investment banking cash and derivatives trading background, Binary Tree Analytics ('BTA') aims to provide transparency and analytics in respect to capital markets instruments and trades. BTA focuses on CEFs, ETFs and Special Situations, and aims to deliver high annualized returns with a low volatili ...

Financial Performance - Total revenues for Q1 2025 were $234.1 million, an increase of $16.9 million or 7.8% compared to Q1 2024[108]. - Net income for Q1 2025 was $5.3 million, a decrease of $7.8 million or 59.7% compared to Q1 2024[108]. - Income attributable to common stockholders was $1.3 million in Q1 2025, down $8.0 million or 85.8% from Q1 2024[108]. - Adjusted EBITDAre increased by $2.7 million, or 5.0%, in Q1 2025 compared to Q1 2024, reaching $57.3 million[138]. - FFO attributable to common stockholders decreased to $33.2 million in Q1 2025 from $37.7 million in Q1 2024[144]. - Adjusted FFO attributable to common stockholders increased by $4.0 million, or 10.6%, in Q1 2025 compared to Q1 2024, totaling $41.5 million[144]. Revenue Breakdown - Room revenue increased by $9.1 million, or 6.7%, in Q1 2025, primarily due to the acquisition of the Hyatt Regency San Antonio Riverwalk, which contributed $7.7 million[109]. - Food and beverage revenue increased by $5.8 million, or 9.4%, compared to the first quarter of 2024[113]. - Other operating revenue rose by $2.0 million, or 10.0%, in the first quarter of 2025 compared to the same period in 2024[114]. - Room revenue for the Comparable Portfolio increased by $1.3 million, with occupancy up 70 basis points and average daily room rate up 1.0%, resulting in a 2.0% increase in RevPAR[111]. Operating Expenses - Total operating expenses for Q1 2025 were $217.6 million, an increase of $17.7 million or 8.8% compared to Q1 2024[108]. - Hotel operating expenses increased by $11.0 million, or 8.1%, primarily due to the acquisition of the Hyatt Regency San Antonio Riverwalk, which added $6.8 million in expenses[114]. - Corporate overhead expenses increased by $1.4 million, or 18.4%, in Q1 2025 compared to Q1 2024[108]. - Depreciation and amortization expenses rose by $3.2 million, or 11.1%, in Q1 2025 compared to the same period in 2024[108]. - Interest expense increased by $1.7 million, or 15.2%, in Q1 2025 compared to Q1 2024[108]. Cash Flow and Investments - Net cash provided by operating activities was $32.0 million in Q1 2025, down from $38.5 million in Q1 2024[148]. - Net cash used in investing activities was $28.1 million in Q1 2025, compared to $27.7 million in Q1 2024[149]. - Net cash used in financing activities increased to $35.4 million in Q1 2025 from $33.5 million in Q1 2024[151]. - The company invested $28.2 million for renovations and additions to its portfolio in Q1 2025[149]. - The company invested $28.2 million in capital expenditures during the first three months of 2025, compared to $27.7 million in the same period of 2024[163]. Debt and Financial Position - As of March 31, 2025, the company had an unrestricted cash balance of $72.3 million and total assets of $3.1 billion[156][157]. - The company's total debt was $845.0 million, with $148.8 million in cash and cash equivalents[157]. - 52.7% of the company's outstanding debt had fixed interest rates or had been swapped to fixed rates, mitigating interest rate risks[158][173]. - Contractual obligations totaled $1,005.7 million as of March 31, 2025, with $167.4 million due within one year[161]. - The company has $51.3 million in contractual construction commitments for ongoing renovations as of March 31, 2025[163]. Future Outlook and Risks - The company expects future cash sources to include operating activities, working capital, and debt issuances, but acknowledges potential challenges due to inflation and interest rates[153]. - The company may seek to obtain mortgages on its 15 unencumbered hotels, which could affect available capital through credit facilities[160]. - The company relies on hotel operators to adjust room rates to reflect inflation, but competitive pressures may limit this ability[165]. - If variable interest rates increase or decrease by 50 basis points, the annual interest expense would change by approximately $2.0 million[173]. - The company entered into an interest rate swap fixing the SOFR rate at 4.02% for Term Loan 4, effective January 31, 2025[158].

Sunstone Hotel Investors (SHO) Q1 2025 Earnings Call May 06, 2025 10:30 AM ET Company Participants Aaron Reyes - CFO & Executive VPBryan Giglia - CEO & DirectorRobert Springer - President & Chief Investment OfficerDavid Katz - Managing DirectorDany Asad - DirectorDuane Pfennigwerth - Senior Managing DirectorMichael Bellisario - Managing DirectorSmedes Rose - Director Conference Call Participants Chris Woronka - Analyst Operator Good morning, ladies and gentlemen, and thank you for standing by. Welcome to th ...

For the quarter ended March 2025, Sunstone Hotel Investors (SHO) reported revenue of $234.07 million, up 7.8% over the same period last year. EPS came in at $0.21, compared to $0.05 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $237.58 million, representing a surprise of -1.48%. The company delivered an EPS surprise of +16.67%, with the consensus EPS estimate being $0.18.While investors closely watch year-over-year changes in headline numbers -- revenue and earning ...

Sunstone Hotel Investors (SHO) Q1 2025 Earnings Call May 06, 2025 10:30 AM ET Speaker0 Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Sunstone Hotel Investors First Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. Later, we will conduct a question and answer session and instructions will be given at that time. I would like to remind everyone that this conference is being recorded today, 05/06/2025, at 10:30 a. M. Eastern T ...

Financial Performance - For Q1 2025, total revenues reached $234.065 million, a 9% increase from $214.770 million in Q4 2024[25] - Room revenue for Q1 2025 was $144.921 million, up 8.0% from $133.191 million in Q4 2024[25] - Net income for Q1 2025 was $5.255 million, compared to $836,000 in Q4 2024, reflecting a significant increase[25] - Total operating expenses for Q1 2025 were $217.594 million, an increase from $205.384 million in Q4 2024[25] - Adjusted EBITDAre for Q1 2025 reached $57,256,000, up from $48,093,000 in Q4 2024, indicating a growth of approximately 18%[27] - Total Portfolio Hotel Adjusted EBITDAre for the trailing 12 months was $244,466,000, compared to $232,439,000 for the previous period, showing an increase of about 5.2%[27] - FFO attributable to common stockholders for Q1 2025 was $33,242,000, an increase from $29,155,000 in Q4 2024, representing a growth of approximately 14.3%[28] - Adjusted FFO attributable to common stockholders for Q1 2025 was $41,500,000, compared to $32,020,000 in Q4 2024, marking an increase of about 29.5%[28] - Total portfolio revenues for Q1 2025 reached $234.065 million, an increase from $230.703 million in Q1 2024, reflecting a growth of 1.0%[54] - Adjusted EBITDAre for the total portfolio in Q1 2025 was $60.772 million, compared to $57.399 million in Q1 2024, representing a year-over-year increase of 4.1%[54] - The overall adjusted EBITDAre margin for the total portfolio improved to 26.0% in Q1 2025, up from 24.9% in Q1 2024, indicating a margin expansion of 110 basis points[54] Debt and Equity - Interest expense for Q1 2025 was $12.682 million, compared to $10.440 million in Q4 2024, indicating increased borrowing costs[25] - The market value of common equity decreased to $1,885,477,000 as of March 31, 2025, down from $2,377,768,000 at the end of Q4 2024[34] - Total debt remained stable at $845,000,000 as of March 31, 2025, unchanged from the previous quarter[34] - The total debt to total capitalization ratio increased to 28.1% in Q1 2025, compared to 24.1% in Q4 2024[34] - The average interest rate on total debt was reported at 5.45% as of March 31, 2025[36] - The diluted weighted average shares outstanding for Q1 2025 was 201,624,000, slightly down from 202,233,000 in Q4 2024[28] - The annual dividend rate on Series G preferred stock increased from 3.0% to 4.5% in Q3 2024, and will further increase to 6.5% in Q3 2025[39] Hotel Operations - The company owns 15 hotels with a total of 7,253 rooms as of May 6, 2025[8] - The total portfolio consists of 7,253 rooms across various hotels, with Hilton San Diego Bayfront accounting for 16% of total rooms[44] - The average daily rate (ADR) for Hilton San Diego Bayfront was $288 in Q1 2025, a decrease of 0.7% compared to Q1 2024[49] - The occupancy rate for the total portfolio was 70.1% in Q1 2025, up from 68.9% in Q1 2024[51] - RevPAR for Hyatt Regency San Francisco increased by 8.6% to $232 in Q1 2025 compared to Q1 2024[49] - The Andaz Miami Beach, which reopened in May 2025 after renovation, had an ADR of $270, with a significant impact on overall portfolio statistics[51] - The total revenue per available room (TRevPAR) for the total portfolio increased by 3.2% to $358 in Q1 2025 compared to Q1 2024[51] - The occupancy rate for the Four Seasons Resort Napa Valley was 43.6% in Q1 2025, down from 60.0% in Q1 2024[49] - The company owns 100% of the Hilton San Diego Bayfront following the acquisition of the remaining 25% interest in June 2022[44] Acquisitions and Strategy - The company plans to continue its strategy of acquiring well-located hotel and resort real estate to enhance long-term stakeholder value[8] - The acquisition of the Hyatt Regency San Antonio Riverwalk in April 2024 is included in the financial results for Q1 2025[25] - The company acquired the Hyatt Regency San Antonio Riverwalk in April 2024, which included prior ownership results[51] - The total portfolio included results from 15 hotels in Q1 2025, compared to 14 hotels in Q1 2024, indicating a slight increase in the number of properties contributing to revenues[56] Performance Metrics - Adjusted EBITDAre and hotel Adjusted EBITDAre margins are used to evaluate ongoing performance, excluding certain nonrecurring items[20] - The Hilton San Diego Bayfront reported total revenues of $44.640 million in Q1 2025, with an adjusted EBITDAre of $13.426 million and a margin of 30.1%, down 80 basis points from the previous year[54] - The JW Marriott New Orleans achieved an impressive adjusted EBITDAre margin of 49.9% in Q1 2025, up 1,150 basis points from 38.4% in Q1 2024[54] - The Hyatt Regency San Francisco saw total revenues increase to $24.521 million in Q1 2025, with an adjusted EBITDAre margin of 10.7%, down 120 basis points year-over-year[54] - The total portfolio, excluding renovation hotels, generated revenues of $233.933 million in Q1 2025, with an adjusted EBITDAre of $61.247 million and a margin of 26.2%, up 80 basis points from the previous year[54] - The Andaz Miami Beach, which underwent extensive renovations, reported a significant negative adjusted EBITDAre of $(475,000) in Q1 2025, reflecting a margin decline of 359.8%[56]

Opens Andaz Miami Beach After Transformational RenovationCompletes Additional Share RepurchasesALISO VIEJO, Calif., May 6, 2025 /PRNewswire/ -- 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 RevPARan increased 2.2% to $221.63. The av ...