Core Viewpoint - Sunstone Hotel Investors, Inc. reported its fourth quarter and full year results for 2024, highlighting a mixed performance with a focus on capital recycling, portfolio investments, and shareholder returns, while anticipating growth from recent hotel conversions and acquisitions [5][9]. Fourth Quarter 2024 Operational Results - Net income for Q4 2024 was $0.8 million, a significant decrease from $127.0 million in Q4 2023, primarily due to a gain on a hotel sale in the previous year [7][8]. - Comparable RevPAR decreased by 1.1% to $199.07, with an average daily rate of $304.85 and occupancy at 65.3% [7][8]. - Adjusted EBITDAre fell by 12.0% to $48.1 million, and Adjusted FFO attributable to common stockholders per diluted share decreased by 15.8% to $0.16 [7][8]. Full Year 2024 Operational Results - Net income for the full year 2024 was $43.3 million, down from $206.7 million in 2023, with adjusted figures excluding the previous year's hotel sale gain showing a decline [7][8]. - Comparable RevPAR for the full year decreased by 2.4% to $214.06, with an average daily rate of $311.13 and occupancy at 68.8% [7][8]. - Adjusted EBITDAre for the year decreased by 12.8% to $229.7 million, and Adjusted FFO attributable to common stockholders per diluted share also decreased by 15.8% to $0.80 [7][8]. Strategic Developments - The acquisition of the Hyatt Regency San Antonio Riverwalk in April 2024 exceeded expectations, generating a 10.1x multiple on the net purchase price [11][12]. - The conversion of the Renaissance Long Beach to Marriott Long Beach Downtown and the ongoing transformation of The Confidante Miami Beach to Andaz Miami Beach are expected to enhance earnings in 2025 [13][14]. - The company successfully executed a capital recycling strategy, returning nearly $100 million to shareholders in 2024 [5][16]. Financial Position and Outlook - As of December 31, 2024, the company had total assets of $3.1 billion, total debt of $845.0 million, and stockholders' equity of $2.1 billion [17]. - The company plans to invest approximately $80 million to $100 million into its portfolio in 2025, focusing on ongoing renovations and conversions [19]. - For 2025, the company expects net income between $46 million and $71 million, with total portfolio RevPAR growth projected at 7.0% to 10.0% [20]. Dividend and Shareholder Returns - The Board of Directors authorized a cash dividend of $0.09 per share, with expectations to continue quarterly dividends throughout 2025 [22][23]. - The company repurchased 2,764,837 shares at an average price of $9.83 per share, indicating a strong commitment to returning capital to shareholders [16].

Core Viewpoint - Sunstone Hotel Investors (SHO) is expected to report a quarterly earnings per share (EPS) of $0.14, reflecting a 26.3% decline year-over-year, with revenues projected at $213.46 million, a decrease of 2.6% compared to the previous year [1] Group 1: Earnings and Revenue Estimates - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' projections [1] - Analysts predict 'Revenues- Room' to be $126.66 million, showing a year-over-year change of -0.3% [4] - The estimate for 'Revenues- Other operating' is $16.66 million, indicating a decline of 15.8% from the prior-year quarter [4] - The consensus for 'Revenues- Food and beverage' stands at $56.34 million, reflecting an 8.1% decrease year-over-year [4] Group 2: Key Metrics Forecast - Analysts estimate 'Comparable ADR' to be $305.31, down from $318.80 in the same quarter last year [5] - 'Comparable Occupancy' is forecasted at 64.7%, slightly lower than the year-ago figure of 64.8% [5] - The 'Number of Hotels' is expected to reach 16, compared to 14 in the previous year [5] - The 'Number of Rooms' is projected to be 7,255, an increase from 6,675 year-over-year [6] - 'Comparable RevPAR' is anticipated to be $197.35, down from $206.58 in the same quarter last year [6] - 'Depreciation and amortization' is expected to reach $30.27 million, compared to $29.14 million in the same quarter of the previous year [6] Group 3: Market Performance - Over the past month, shares of Sunstone Hotel have declined by 4.4%, contrasting with the Zacks S&P 500 composite's increase of 4.7% [7] - Currently, SHO holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [7]

ALISO VIEJO, Calif., Jan. 30, 2025 /PRNewswire/ -- Sunstone Hotel Investors, Inc. (the "Company" or "Sunstone") (NYSE: SHO) announced the following tax treatment of the 2024 distributions to holders of the Company's common stock and Series H and Series I preferred stock. Record Date Payable Date Total Distribution Per Share Taxable in 2024 Ordinary Dividends Section 199A Dividends Taxable in 2025 Common Stock - Ticker Symbol: SHO / CUSIP: 867892101 3/28/2024 4/15/2024 $0.070000 $0.07000 ...

Financial Data and Key Metrics Changes - Adjusted EBITDAre for Q3 2024 was approximately $54 million, and FFO was $0.18 per diluted share [31] - Full year 2024 RevPAR change is expected to range from a decline of 3.25% to a decline of 1.75% compared to 2023 [32] - Full year adjusted EBITDAre is estimated to range from $220 million to $230 million, and adjusted FFO per diluted share is expected to range from $0.75 to $0.80 [33] Business Line Data and Key Metrics Changes - Group segment led by the Westin Washington, DC Downtown, which grew RevPAR by 33% and total RevPAR by 39% [11] - Urban hotel portfolio grew RevPAR by a healthy 9%, excluding Long Beach [16] - Leisure demand moderated, particularly in Key West and Maui, with ongoing normalization in pricing [17][18] Market Data and Key Metrics Changes - Business travel trends improved in Q3, with strong performance in markets like Boston, San Francisco, and Portland [14] - Occupancy in Portland jumped more than 16 points compared to last year, indicating recovery [15] - Maui's leisure demand has been softer than expected, but group bookings for 2025 are showing improvement [62] Company Strategy and Development Direction - The company is focused on three strategic objectives: recycling capital, investing in the portfolio, and returning capital to shareholders [24] - The transformation of Andaz Miami Beach is ongoing, with an updated total renovation investment of approximately $95 million [27] - The company anticipates a strong setup for 2025, driven by group production and improved market conditions [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about earnings potential moving into 2025, despite a muted near-term outlook [10] - The company is encouraged by the long-term growth potential embedded in its portfolio, despite short-term impacts from weather and labor disruptions [22] - Management noted that the leisure environment in Maui is expected to improve with promotional campaigns and increased airlift [63][66] Other Important Information - The company repurchased $23 million of stock in Q3, bringing the year-to-date total to over $26 million [21] - The balance sheet remains strong, with nearly $700 million of total liquidity [35] - A quarterly base common dividend of $0.09 per share has been authorized for Q4 [37] Q&A Session Summary Question: Impact of San Diego and Miami on 2025 - Management indicated that the hotel in San Diego is back to normal operations, with strong pace for 2025, while Miami's EBITDA expectations have been adjusted downwards due to delayed opening [40][42] Question: Stabilized yield expectations for Andaz - Yield expectations for Andaz remain in the 8% to 9% range, despite increased renovation costs [46] Question: Strategic opportunities for NAV assets - Management is focused on stabilizing assets and evaluating the timing for potential monetization [50][53] Question: Wine country asset sale potential - Management believes the sale price for wine country assets may be slightly below purchase price, depending on cash flow realization [55] Question: Maui's performance and recovery trajectory - Management expects Maui to return to a similar performance level as before, with strong group demand and improved airlift [66] Question: Capital allocation priorities for next year - The company will maintain a balanced approach to capital allocation, focusing on investments and potential asset sales [68] Question: Wage inflation expectations - Wage inflation is expected to remain in the 4% to 6% range, with no significant changes anticipated from new administration policies [74][76] Question: Ancillary revenue opportunities - Management sees limited opportunities for ancillary revenue from billboards but is exploring retail and development opportunities within the portfolio [86][89]

Supplemental Financial Information For the quarter ended September 30, 2024 November 12, 2024 Corporate Profile And Disclosures Regarding Non-GAAP Financial Measures 2 Comparable Corporate Financial Information 6 Capitalization 12 Property-Level Data And Operating Statistics 15 Property-Level Revenues, Adjusted EBITDAre & Adjusted EBITDAre Margins 20 Supplemental Financial Information November 12, 2024 Table of Contents Supplemental Financial Information November 12, 2024 CORPORATE PROFILE AND DISCLOSURES R ...

Sunstone Hotel Investors (SHO) reported $226.39 million in revenue for the quarter ended September 2024, representing a year-over-year decline of 8.6%. EPS of $0.18 for the same period compares to $0.06 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $222.92 million, representing a surprise of +1.56%. The company delivered an EPS surprise of -10.00%, with the consensus EPS estimate being $0.20.While investors scrutinize revenue and earnings changes year-over-year and how they com ...

Sunstone Hotel Investors (SHO) came out with quarterly funds from operations (FFO) of $0.18 per share, missing the Zacks Consensus Estimate of $0.20 per share. This compares to FFO of $0.23 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of -10%. A quarter ago, it was expected that this hotel real estate investment trust would post FFO of $0.27 per share when it actually produced FFO of $0.28, delivering a surprise of 3.70%.Over the l ...

Refinances Only 2024 MaturityALISO VIEJO, Calif., Nov. 12, 2024 /PRNewswire/ -- 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 Conf ...

Wall Street analysts forecast that Sunstone Hotel Investors (SHO) will report quarterly earnings of $0.20 per share in its upcoming release, pointing to a year-over-year decline of 13%. It is anticipated that revenues will amount to $222.92 million, exhibiting a decline of 10% compared to the year-ago quarter.Over the last 30 days, there has been a downward revision of 3.7% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconside ...

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