Sunstone Hotel Investors Stock Earnings Reports

Sunstone Hotel Investors reported a stronger-than-expected start to 2026 driven by broad-based RevPAR momentum, disciplined cost control and accretive repurchase activity. Key operating highlights: portfolio RevPAR grew 14.6% in Q1 (5.7% ex-Andaz Miami Beach), total RevPAR +13.4% including an outsized contribution from the newly reopened Andaz Miami Beach. Resorts led performance (Wailea rebound, wine country +34% RevPAR combined) while urban hotels faced a tougher comp and weather-related headwinds; convention hotels were mixed but generally better-than-expected. Cost management yielded 140 bps of margin expansion in Q1 with comparable departmental expense per occupied room up ~1% and overall comparable costs up ~2.4% per occupied room. Capital and balance sheet: no debt maturities before 2028, net leverage ~3.5x trailing earnings (4.6x incl. preferred), continued opportunistic repurchases ($35M common and $14M preferred YTD through April), and a Board-authorized $0.09 quarterly common dividend. Guidance was revised up: full-year rooms RevPAR midpoint benefits from Andaz and now implies total RevPAR growth of ~5%–7.5% (total RevPAR $390–$400), adjusted EBITDAre $238M–$252M, and FFO per diluted share $0.88–$0.96. Management remains cautious on macro/fuel risks and the World Cup upside is not assumed in guidance; they expect to continue capital recycling opportunistically and to pursue transactions that maximize risk-adjusted shareholder returns.