Sunstone Hotel reports Q3 adjusted FFO 18c, consensus 20c

Reports Q3 revenue $226.39M, consensus $230.15M. Comparable RevPAR decreased 1.3% to $207.56. The average daily rate was $301.69 and occupancy was 68.8%. CEO Bryan Giglia stated, “Despite continued moderation in leisure demand, our urban and convention hotels continued to perform well during Q3, resulting in our stabilized portfolio, excluding The Confidante Miami Beach and Hilton San Diego Bayfront, growing RevPAR by 2.4% and hotel earnings by 7.2%. We continue to benefit from our recent investment at The Westin Washington, DC Downtown and from our acquisition of the Hyatt Regency San Antonio Riverwalk. We were also encouraged by growing demand for business travel in several of our markets including Boston and San Francisco and strong group demand at Montage Healdsburg. We remain focused on positioning Sunstone for meaningful earnings growth in 2025 as we benefit from the renovation and recent conversion of the Marriott Long Beach Downtown, the debut of Andaz Miami Beach and the full year contribution from the Hyatt Regency San Antonio Riverwalk. Since the beginning of the third quarter, we successfully deployed $23M to repurchase our stock at an average price of $9.79 per share, a meaningful discount to NAV. Our exceptional portfolio combined with our strong balance sheet with meaningful liquidity, position Sunstone to create value for our shareholders by recycling and deploying capital throughout the cycle.”