Sunstone Hotel Investors Earnings Call Transcripts
Fiscal Year 2026
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Q3 outperformance lifted FY26 guidance, with strong resort and urban demand, improving 2027 group pace and nearly $200 million of YTD buybacks. Lower share count, portfolio growth and normalized group mix underpin the 2027 outlook.
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Second quarter results exceeded expectations with strong RevPAR and earnings growth, driven by robust leisure and group demand. Guidance for 2026 was raised, reflecting asset sales, share repurchases, and continued portfolio strength, while maintaining a cautious outlook amid macro uncertainties.
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First quarter results exceeded expectations with strong RevPAR and margin growth, led by resorts and Andaz Miami Beach. Guidance for 2026 was raised, reflecting robust group and transient demand, ongoing capital projects, and continued share repurchases, though management remains cautious amid macro uncertainty.
Fiscal Year 2025
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Fourth quarter results exceeded expectations, led by strong resort and Andaz Miami Beach performance, with total RevPAR up 12.5% including Andaz. 2026 guidance calls for 4%-7% rooms RevPAR growth and 5% EBITDAre growth at midpoint, supported by disciplined capital allocation and robust liquidity.
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Third-quarter results met expectations, with strong cost controls and ancillary revenue offsetting softer room growth. San Francisco and group bookings led performance, while resorts showed improvement. Liquidity remains strong, and the outlook for Q4 and 2026 is positive despite market uncertainties.
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Second quarter results met or exceeded expectations, led by strong urban and Wine Country hotel performance, but the outlook for 2025 is more cautious due to softness in government and leisure demand and a slower ramp-up at Andaz Miami Beach. Capital recycling and share repurchases remain a focus.
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Q1 results exceeded expectations with strong event-driven demand and margin expansion. The Andaz Miami Beach opened in May, expected to drive H2 growth, while full-year guidance was revised conservatively due to macro uncertainty.
Fiscal Year 2024
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Full-year EBITDA and FFO per share reached the high end of guidance, with strong group and urban market performance. 2025 outlook projects 7%-10% RevPAR growth, driven by new investments and disciplined cost management. Net leverage and capital investment levels are set to improve.
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Q3 results were impacted by weather, labor disruptions, and softer leisure demand, but strong group and business transient segments, cost controls, and successful asset repositionings supported earnings. 2024 guidance is moderated, but 2025 is expected to benefit from new and renovated assets, strong group pace, and improved market conditions.
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Q2 results met expectations, with strong group and business transient demand offsetting softer leisure trends. Guidance for 2024 was lowered due to renovation delays and Maui softness, but 2025 outlook remains strong, supported by new investments and robust group pace.