Sunstone Hotel Inv Stock Price, News & Analysis

Sunstone Hotel Investors (NYSE: SHO) reported strong operating trends for July and August 2022, with significant growth in average daily rates (ADR) despite a drop in occupancy rates compared to 2019. The Comparable Portfolio's ADR was up 16.9%, while RevPAR decreased by 2.7%. Group booking activity has improved, down 13% compared to 2019, with 86% of total transient room nights booked for the latter part of 2022. The company noted that robust leisure travel and urban hotel demand contributed to these results, despite ongoing renovations at the Renaissance Washington DC.

Sunstone Hotel Investors, Inc. (NYSE: SHO) reported a significant turnaround in Q2 2022, with net income of $37.7 million, contrasting a net loss of $27.9 million in Q2 2021. RevPAR for comparable hotels soared 98.4% to $220.37, while average daily rate rose to $295.40. The company completed the acquisition of The Confidante Miami Beach for $232 million and increased its stake in Hilton San Diego Bayfront. An amended credit agreement enhances borrowing capacity, and a common dividend of $0.05 per share has been reinstated. Adjusted FFO per share jumped 2,900% to $0.30.

Sunstone Hotel Investors (NYSE: SHO) announced an Amended Credit Agreement enhancing its financial flexibility. Key highlights include:

• Expansion of unsecured borrowing capacity
• Increase of term loan facilities from $108 million to $350 million
• $500 million revolving credit facility remains fully undrawn
• Term loans mature in July 2027 and January 2028

This amendment supports a stronger balance sheet, with proceeds used to repay $230 million on the revolving credit facility, reflecting confidence from banking partners.

Sunstone Hotel Investors (NYSE: SHO) will report its second quarter 2022 financial results on August 3, 2022, before market open. Management will host a conference call at 12:00 p.m. ET on the same day. Investors can access a live webcast through the company’s website. A replay of the call will also be available. Sunstone focuses on creating long-term value through the acquisition and management of lodging properties.

On June 2, 2022, Sunstone Hotel Investors (NYSE: SHO) announced the acquisition of The Confidante Miami Beach for $232 million, equating to $684,000 per room. An additional $60 million will be invested to transform the hotel into a luxury Andaz brand resort. Post-renovation, the property is expected to yield an 8% to 9% net operating income. The acquisition is financed through available cash and a $140 million revolving credit facility. Recent operational metrics indicate a recovery trend with improved occupancy and average daily rates compared to pre-pandemic levels.

Sunstone Hotel Investors (NYSE: SHO) announced a definitive agreement to acquire Park Hotels & Resorts' 25% interest in the Hilton San Diego Bayfront for $102 million, plus assuming a $55 million mortgage. This $628 million transaction values the hotel at $527,700 per key, representing a 13.2x EBITDA multiple and a 6.6% cap rate. The deal is expected to close by the end of Q2 2022, primarily funded through the company’s revolving credit facility. This acquisition consolidates ownership, enhancing Sunstone's market position in a prime location.

Sunstone Hotel Investors (NYSE: SHO) announced a definitive agreement to acquire The Confidante Miami Beach for $232 million, equating to $684,000 per key. The acquisition, funded through cash and a revolving credit facility, includes an additional $60 million for renovations to rebrand the hotel to Andaz Miami Beach. This transformation aims for an 8% to 9% stabilized net operating income yield post-renovation. Closing is expected by the end of Q2 2022, subject to customary conditions.

Sunstone Hotel Investors (NYSE: SHO) reported a robust first quarter in 2022, achieving a net income of $15.1 million, a significant turnaround from a $55.3 million loss in 2021. RevPAR for the 12 hotel portfolio surged 207.7% to $148.65, with an occupancy rate of 53.1%. Adjusted EBITDAre increased 285.3% to $27.2 million, while per diluted share Adjusted FFO rose 166.7% to $0.08. The company actively managed its capital, selling three hotels for $197 million and repurchasing $48.4 million in stock, signaling confidence in future growth amid positive market trends.

Sunstone Hotel Investors (NYSE: SHO) announced it will report its financial results for Q1 2022 on May 4, 2022, after market close. A conference call for investors is scheduled for May 5, 2022, at 12:00 PM ET. Interested parties can join via a live webcast or by dialing 1-888-330-3573 with Conference ID 4831656. Sunstone focuses on creating long-term stakeholder value through the acquisition and active management of hotels recognized as Long-Term Relevant Real Estate.