SUNSTONE HOTEL INVESTORS REPORTS RESULTS FOR FOURTH QUARTER AND FULL YEAR 2025

Core Insights - Sunstone Hotel Investors, Inc. returned over $170 million to common stockholders in 2025 through dividends and share repurchases, and restored a $500 million repurchase authorization [1][15]. Financial Performance - Fourth Quarter 2025 Results: - Net income was $7.2 million, up from $0.8 million, representing a 763.3% increase [6][7]. - Total Portfolio RevPAR increased by 9.6% to $220.12, with an average daily rate of $319.01 and occupancy at 69.0% [6][7]. - Adjusted EBITDAre rose by 17.6% to $56.6 million [6][7]. - Adjusted FFO attributable to common stockholders per diluted share increased by 25.0% to $0.20 [6][7]. - Full Year 2025 Results: - Net income was $24.6 million, down from $43.3 million, but would have been $33.3 million excluding the loss on the sale of Hilton New Orleans St. Charles [6][7]. - Total Portfolio RevPAR increased by 3.8% to $225.12, with an average daily rate of $317.07 and occupancy at 71.0% [6][7]. - Adjusted EBITDAre increased by 3.0% to $236.6 million [6][7]. - Adjusted FFO attributable to common stockholders per diluted share increased by 7.5% to $0.86 [6][7]. Strategic Developments - The company opened Andaz Miami Beach in May 2025, which is expected to generate significant earnings growth in 2026 [11]. - The company sold the Hilton New Orleans St. Charles for $47 million in June 2025, using proceeds to repurchase shares [12]. - In 2025, the company repurchased $103.6 million of its common and preferred stock, with an additional $7.5 million allocated in early 2026 [13][16]. Capital Structure and Liquidity - As of December 31, 2025, the company had total assets of $3.0 billion, total debt of $930 million, and stockholders' equity of $1.9 billion [20]. - The company completed a Third Amended and Restated Credit Agreement in September 2025, providing a borrowing capacity of $1.35 billion [14]. 2026 Outlook - For 2026, the company expects net income between $21 million and $46 million, with RevPAR growth of 4.0% to 7.0% [22]. - The company plans to invest approximately $95 million to $115 million into its portfolio in 2026 [21]. Dividend Information - On February 26, 2026, the company authorized a cash dividend of $0.09 per share for common stockholders, with additional dividends for preferred stockholders [24][25].