Welcome to our dedicated page for Sunstone Hotel Inv news (Ticker: SHO), a resource for investors and traders seeking the latest updates and insights on Sunstone Hotel Inv stock.
Sunstone Hotel Investors, Inc. (NYSE: SHO) is a lodging real estate investment trust (REIT) that regularly issues news on its hotel portfolio, financial performance and capital allocation decisions. This news page aggregates Sunstone’s press releases and third-party coverage so readers can review the latest information related to SHO stock and the company’s hotel and resort real estate holdings.
Company announcements frequently cover quarterly and annual financial results, including metrics such as RevPAR, occupancy, average daily rate, Adjusted EBITDAre and Adjusted FFO. Sunstone also uses news releases to discuss trends across its upper upscale and luxury hotels in convention, urban and resort destinations, and to comment on demand patterns in markets such as San Francisco, Washington, D.C., Boston, San Antonio, Miami Beach, Maui and New Orleans.
In addition to earnings, Sunstone’s news often highlights portfolio activity and capital allocation, such as hotel acquisitions and dispositions, major renovations and conversions, and share repurchase activity. Examples include updates on the transformation and opening of Andaz Miami Beach, the rebranding of Marriott Long Beach Downtown, the acquisition of Hyatt Regency San Antonio Riverwalk, and the sale of Hilton New Orleans St. Charles with proceeds redeployed into stock repurchases.
Readers will also find updates on Sunstone’s balance sheet and financing, including changes to its unsecured term loans and revolving credit facility under the Third Amended and Restated Credit Agreement, as well as dividend declarations on its common and preferred stock. Governance and ESG-related items, such as Board appointments and the publication of the company’s Corporate Responsibility Report, are likewise communicated through news releases. Investors and observers can use this page to follow how Sunstone describes its strategy of acquisition, active ownership and disposition of hotel and resort real estate over time.
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.
Sunstone Hotel Investors (NYSE: SHO) has sold the Embassy Suites Chicago and Hilton Garden Inn Chicago for $129.5 million, equating to $178,000 per key. This sale represents a 9.8x multiple on 2019 Hotel Adjusted EBITDAre and an 8.8% cap rate on 2019 Hotel Net Operating Income. The company anticipates a net loss of $3.1 to $3.6 million before any gain on sale. Following this, Sunstone aims to reinvest the proceeds into higher-growth opportunities. The company reported increased occupancy rates and RevPAR, forecasted to reach 80% of 2019 levels in Q2 2022.
Sunstone Hotel Investors (NYSE: SHO) has informed its unsecured lenders of the termination of the covenant relief period related to its amended debt agreements. This decision comes after the company met its financial covenants for Q4 2021. Following this termination, Sunstone will adhere to a modified set of financial covenants for the next five quarters, eventually reverting to the original covenants. CEO Bryan Giglia highlighted the early exit as crucial for enhancing capital allocation flexibility, aiming to return earnings closer to pre-pandemic levels and boost per share earnings.
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