Sunstone Hotel Inv Stock Price, News & Analysis

Sunstone Hotel Investors, Inc. (NYSE: SHO), based in Irvine, Calif., declared a cash dividend of $0.157378 per share for Series H cumulative redeemable preferred stockholders. This dividend reflects the period from May 24, 2021 to June 30, 2021 and is payable on July 15, 2021 to stockholders of record as of June 30, 2021.

Sunstone owns 18 hotels with 9,147 rooms, focusing on Long-Term Relevant Real Estate.

Sunstone Hotel Investors (NYSE: SHO) has priced a public offering of 4,000,000 shares of 6.125% Series H Cumulative Redeemable Preferred Stock, aiming for gross proceeds of $100 million. The offering includes a 30-day option for underwriters to purchase an additional 600,000 shares. Funds will be directed to Sunstone Hotel Partnership, LLC, to redeem all or part of its outstanding 6.950% Series E Cumulative Redeemable Preferred Stock. The offering is set to close on May 24, 2021, subject to customary conditions.

Sunstone Hotel Investors (NYSE: SHO) reported its Q1 2021 financial results, showcasing a net loss of $55.3 million, significantly reduced from a loss of $162.5 million in Q1 2020. As of March 31, 2021, 15 of its 17 hotels were operational. The RevPAR for the 17 hotels fell by 69.5% to $42.19. However, the company noted a steady recovery in leisure demand and sequential monthly growth in occupancy and average daily rates (ADR). The recent acquisition of Montage Healdsburg for $265 million is anticipated to enhance the company's growth prospects.

Sunstone Hotel Investors (NYSE: SHO) announced the acquisition of the Montage Healdsburg Resort for $265 million, funded by cash and $66 million in perpetual preferred equity. The Resort, completed in December 2020, is expected to generate a net operating income yield of 6.0% to 7.0% after stabilization. With this acquisition, Sunstone continues to strategically expand its portfolio of Long-Term Relevant Real Estate, increasing leisure demand concentration to 30% of pro forma rooms revenue, while maintaining financial flexibility for future growth.

Sunstone Hotel Investors, Inc. (NYSE: SHO) announced it will report its financial results for the first quarter of 2021 on May 3, 2021, after market close. A conference call will follow on May 4, 2021, at 12:00 p.m. ET. Investors can access a live webcast on the company's website or dial in for audio. Sunstone focuses on acquiring and managing hotels deemed Long-Term Relevant Real Estate®, primarily under major brands like Marriott, Hilton, and Hyatt. For updates, visit www.sunstonehotels.com.

Sunstone Hotel Investors (NYSE: SHO) announced key board changes on March 15, 2021, as part of its commitment to corporate governance and diversity. Directors Keith P. Russell and Thomas A. Lewis will not seek re-election. The board nominated Kristina M. Leslie and Verett Mims for election at the upcoming annual meeting, reinforcing its focus on fresh perspectives. Leslie's experience includes CFO at DreamWorks, while Mims brings 27 years of expertise in finance and banking from Boeing. These changes aim to enhance the company's strategic direction and improve stakeholder interests.

Sunstone Hotel Investors (NYSE: SHO) announced the retirement of Marc Hoffman as Chief Operating Officer after nearly 15 years. Hoffman will assist during the transition to Chris Ostapovicz, previously Senior VP of Asset Management at Host Hotels & Resorts. Ostapovicz's extensive background in hotel asset management and operations positions him to enhance Sunstone's long-term success. Sunstone operates 17 hotels with 9,017 rooms, focusing on acquiring and managing Long-Term Relevant Real Estate® in the hospitality sector.

Sunstone Hotel Investors (NYSE: SHO) reported a net loss of $39.4 million for Q4 2020, down from a net income of $45.4 million in Q4 2019. The company's RevPAR plummeted 86.9% to $25.36. For the full year, net loss reached $410.5 million compared to a $142.8 million profit in 2019. Despite the pandemic's impact, 15 of 17 hotels were operational by year-end, with some positive trends in leisure and group bookings noted. The company plans significant investments in 2021 to reposition and rebrand its properties.

On January 22, 2021, Sunstone Hotel Investors (NYSE: SHO) announced the tax treatment for its 2020 distributions to common and preferred stockholders. The distributions include a $0.0500 ordinary dividend per share for common stock and $0.434375 for Series E preferred stock, payable on April 15, 2020, for the first quarter, with similar payments scheduled throughout the year. Additionally, Series F preferred stockholders will receive $0.403125 per share. Shareholders are advised to consult with tax advisors regarding the implications of these distributions.