Sunstone Hotel Inv Stock Price, News & Analysis

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.

On March 7, 2022, Sunstone Hotel Investors (NYSE: SHO) announced significant management changes. Bryan Giglia, previously the Chief Financial Officer, has been appointed as the new Chief Executive Officer. Robert Springer, the Chief Investment Officer, has taken on the additional role of President. Aaron Reyes is now the Chief Financial Officer, stepping in for Giglia. Chairman Douglas M. Pasquale will serve as Executive Chairman until August 2022. The Board emphasized their confidence in the new leadership to enhance long-term per share NAV growth and capitalize on recovery in the hospitality sector post-pandemic.

Sunstone Hotel Investors (NYSE: SHO) reported a strong recovery in its fourth quarter and full year 2021 results. Net income surged to $138.3 million, a significant turnaround from a net loss of $39.4 million in Q4 2020. The 14 Hotel Portfolio's RevPAR increased by 421.2% to $136.51, with an average daily rate of $245.53. Full year net income reached $33 million, up from a loss of $410.5 million in 2020. The company successfully disposed of and acquired hotels, enhancing its portfolio while reducing preferred stock dividends. However, COVID-19 continues to pose risks to short-term operations.

On January 21, 2022, Sunstone Hotel Investors (NYSE: SHO) announced the tax treatment for 2021 distributions to holders of its preferred stock. The total distribution per share varies by series: Series E at $0.434375, Series F at $0.403125, Series H at $0.157378 and $0.382813, and Series I at $0.296875 and $0.356250. Payment dates for dividends are specified, with some dated as recently as January 18, 2022. Shareholders are advised to consult their tax advisors for specific tax implications regarding these distributions.

Sunstone Hotel Investors, NYSE: SHO, has announced the release of its financial results for Q4 and full year 2021 on February 22, 2022, after market close. A conference call will take place on February 23, 2022, at 12:00 p.m. Eastern Time. The call will be accessible via webcast on their website or by phone at 1-844-915-4230, using Conference ID 9471784. For more information, visit their investor relations page.

On December 2, 2021, Sunstone Hotel Investors (NYSE: SHO) completed the sale of the Embassy Suites La Jolla for $226.7 million, equating to $667,000 per room, showcasing a 22.3x multiple on 2019 Hotel Adjusted EBITDAre. The proceeds helped fund the acquisition of the Four Seasons Resort Napa Valley for a gross purchase price of $177.5 million, which includes vineyards and wine inventory. The new acquisition is expected to generate a 6% to 7% net operating income yield upon stabilization.

Sunstone Hotel Investors (NYSE: SHO) announced its third-quarter results for 2021, reporting a net loss of $22.1 million, a significant improvement from $91.1 million last year. The RevPAR for the 16 hotel portfolio surged 633.4% to $136.12, while occupancy reached 54.8%. Adjusted EBITDAre rose 197.7% to $35.4 million, and Adjusted FFO per diluted share increased 138.5% to $0.10. The company also completed strategic dispositions and made substantial investments, including the acquisition of Four Seasons Resort Napa Valley.

Sunstone Hotel Investors, Inc. (NYSE: SHO) has announced plans to report its third quarter 2021 financial results on November 4, 2021, after market close. Following this, a conference call will take place on November 5, 2021, at 12:00 p.m. ET. Investors can access the live webcast via the company's website, with a replay available afterward. Sunstone specializes in acquiring, owning, and managing hotels categorized as Long-Term Relevant Real Estate.

Sunstone Hotel Investors (NYSE: SHO) has appointed Douglas M. Pasquale as interim CEO, effective immediately, following the resignation of John Arabia. This change is not linked to the company's financial performance or internal controls. Pasquale, who remains Chairman, aims to enhance the company's portfolio through strategic investments and asset sales. Sunstone currently holds interests in 18 hotels, totaling 9,147 rooms, and plans to leverage its balance sheet to unlock value and pursue additional acquisitions. An executive search for a permanent CEO is underway.