Sunstone Hotel reports Q2 AFFO 33c, consensus 31c

Reports Q2 revenue $276.11M, consensus $275.08M. Reports Q2 comparable RevPAR increased 3.6% to $245.91. The average daily rate was $319.36 and occupancy was 77.0%. RevPAR at the Company’s urban and group hotels increased 10.7%. Bryan A. Giglia, CEO,stated, “During the quarter, our portfolio generated profitability that was above the high-end of our guidance ranges despite a moderation in leisure travel, which contributed to softer revenue growth. Our group hotels continue to benefit from steady demand trends and healthy ancillary spend. We remain encouraged by the ongoing recovery in our urban markets, particularly San Francisco, which was once again our highest RevPAR growth market and continues to demonstrate steady growth as the market recovers. Working with our operators, we are focused on preserving operational efficiencies and identifying additional cost reductions to best position the portfolio to maximize earnings as the demand environment evolves. Overall, we are pleased with our portfolio’s ability to manage profitability in the quarter and believe there are additional opportunities to make meaningful improvements at our resorts.”