SUNSTONE HOTEL INVESTORS REPORTS RESULTS FOR FOURTH QUARTER AND FULL YEAR 2024

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].