Sunstone Hotel Investors(SHO) - 2024 Q4 - Annual Results

Financial Performance - Total revenues for Q4 2024 were $214.77 million, a decrease of 5.5$226.39 million[24] - Comparable Hotel Adjusted EBITDAre for Q4 2024 was $49.95 million, down 11.4$56.43 million[24] - Net income for the year ended December 31, 2024, was $46.43 million, reflecting a decrease from$46.85 million in the previous year[24] - Comparable Adjusted FFO attributable to common stockholders for Q4 2024 was $32.02 million, a decline of 13.5$36.85 million[24] - Room revenues for Q4 2024 were $133.19 million, a decrease of 4.5$138.76 million[24] - Food and beverage revenues for Q4 2024 were $59.65 million, down 6.9$63.87 million[24] - Total operating expenses for Q4 2024 were $205.38 million, a slight decrease from$209.99 million in Q3 2024[24] - Net income for Q4 2024 was $836,000, with a total net income of$43,262,000 for the full year 2024[27] - Adjusted EBITDAre for Q4 2024 was $48,093,000, contributing to a total of$229,694,000 for the full year 2024[27] - Comparable Adjusted FFO attributable to common stockholders for Q4 2024 was $32,020,000, with a total of$170,247,000 for the full year 2024[29] Debt and Capitalization - Total debt as of December 31, 2024, was $845,000,000, representing 24.1$2,377,768,000 by December 31, 2024, compared to $2,073,489,000 at the end of Q3 2024[35] - Total capitalization increased to$3,504,018,000 by December 31, 2024, from $3,172,176,000 at the end of Q3 2024[35] - Total unsecured debt amounts to$845,000,000, with a weighted average interest rate of 5.49%[37] - The percentage of fixed-rate debt is 52.7%, while floating-rate debt accounts for 47.3%[37] - The weighted average maturity of debt increased from 1.8 years to 2.2 years due to the exercise of available extensions[37] Hotel Portfolio and Operations - The company owns 15 hotels with a total of 7,253 rooms as of February 21, 2025[7] - The total portfolio consists of 7,253 rooms across various hotels, with Hilton San Diego Bayfront representing 16% of total rooms[42] - The company owned 15 hotels as of December 31, 2024, including the Hyatt Regency San Antonio Riverwalk acquired in April 2024[26] - The company plans to debut Andaz Miami Beach in Q1 2025 following renovations[43] - The company expects The Confidante Miami Beach to resume operations as Andaz Miami Beach in Q1 2025 following extensive renovations[51] Revenue and Performance Metrics - Total property-level revenues for the actual portfolio in 2024 were $905.809 million, a decrease from$986.425 million in 2023[55] - Adjusted EBITDAre for the actual portfolio in 2024 was $233.861 million, down from$276.756 million in 2023, reflecting a margin of 25.8% compared to 28.1% in the previous year[55] - The comparable portfolio, excluding renovation hotels, generated revenues of $923.546 million in 2024, a decline from$941.742 million in 2023, with adjusted EBITDAre of $241.093 million, down from$265 million[55] - The overall comparable portfolio's adjusted EBITDA decreased by 10.0% to $49,946,000 in Q4 2024 compared to Q4 2023[54] - The total adjusted EBITDAre margin for the comparable portfolio, including renovation hotels, was 26.1$257, while occupancy decreased by 630 basis points to 69.7%[47] - The Westin Washington, DC Downtown saw a 4.8% increase in ADR to $292, with occupancy improving by 370 basis points to 62.1$1,229, with occupancy at 61.2%[47] - Hilton San Diego Bayfront's ADR increased by 0.9% to $278, while occupancy decreased by 360 bps to 79.2$196, with occupancy rising by 1,270 bps to 69.4% in 2024[49] - Marriott Boston Long Wharf's RevPAR increased by 9.1% to $306, with occupancy improving by 690 bps to 80.5$30,122,000, with an adjusted EBITDA margin of 32.3% in Q4 2024[54] - The Confidante Miami Beach experienced a drastic decline in adjusted EBITDA, reporting $(684,000) in Q4 2024, a margin change of (402.4) bps[54] - Hyatt Regency San Antonio Riverwalk's adjusted EBITDA margin remained stable at 42.1$14,742,000 in Q4 2024[54] - Four Seasons Resort Napa Valley's adjusted EBITDA margin improved by 1,400 bps to 9.0%, with total revenues of $12,655,000 in Q4 2024[54] - The Confidante Miami Beach experienced a significant drop in adjusted EBITDAre, reporting$(1.965) million in 2024 compared to $5.881 million in 2023, marking a margin change of (6,210) bps[55] Strategic Actions - The strategy focuses on long-term stakeholder value through acquisition and active ownership of hotel and resort real estate[7] - The company repurchased common stock during the second, third, and fourth quarters of 2024, impacting pro forma adjustments[31] - The company sold the Boston Park Plaza in October 2023, which is reflected in the financial results for the actual portfolio[57] - The Westin Washington, DC Downtown's renovation affected adjusted EBITDAre results for both 2024 and 2023, highlighting the impact of renovation activities on financial performance[57]