Sunstone Hotel Investors ( (SHO) ) has released its Q4 earnings. Here is a breakdown of the information Sunstone Hotel Investors presented to its investors.
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Sunstone Hotel Investors, Inc. is a real estate investment trust (REIT) focusing on the acquisition, ownership, and management of hotel and resort properties across the United States, primarily operating under nationally recognized brands. The company is known for its strategic capital investments and active portfolio management to enhance long-term stakeholder value.
Sunstone Hotel Investors reported its financial results for the fourth quarter and full year of 2024, highlighting a challenging operational environment. The company’s net income for the fourth quarter was $0.8 million, a significant decrease from $127.0 million in the same period of 2023, while full-year net income stood at $43.3 million compared to $206.7 million in 2023. The year was marked by strategic property acquisitions and conversions, as well as efforts to recycle capital and enhance the company’s portfolio.
Key financial metrics for 2024 showed a decrease in Comparable Revenue per Available Room (RevPAR) by 2.4% to $214.06, with a slight occupancy drop to 68.8%. Adjusted EBITDAre decreased by 12.8% to $229.7 million, and Adjusted FFO per diluted share fell by 15.8% to $0.80. However, Sunstone’s strategic initiatives, including the acquisition of the Hyatt Regency San Antonio Riverwalk and conversions of The Confidante Miami Beach to Andaz Miami Beach, are expected to drive future growth. The company also boasts a strong liquidity position with no debt maturities until 2026.
Looking ahead, Sunstone Hotel Investors anticipates earnings growth in 2025 due to recent property conversions and strategic investments. The company expects a RevPAR growth of 7.0% to 10.0% and aims to continue providing shareholder returns through dividends and stock repurchases. Sunstone’s management is optimistic about leveraging its enhanced portfolio to achieve further success in the upcoming year.
