| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 259.71 | 10.9% |
| Total Income | 259.71 | 10.9% |
| Expenditure | 243.83 | 4.7% |
| PBT | 18.68 | 249.2% |
| Net Profit | 15.88 | 1160.3% |
| OPM | — | |
| NPM | 6.12% | 5.58pp |
| EPS | 0.08 | 700.0% |
Sunstone Hotel Investors Reports Q1 2026 Results
05 May 2026 · 5 May, 5:31 pm
Summary
Sunstone Hotel Investors reported strong first-quarter results, with net income attributable to common stockholders reaching $16.0 million, a significant increase from $1.3 million in the prior year. RevPAR increased by 14.6% to $255.04, and Adjusted EBITDAre rose by 18.3% to $67.7 million. The company has been actively repurchasing its stock, allocating $49.2 million to buybacks since the start of the year. Management has revised the full-year outlook higher, reflecting the outperformance in the first quarter, while remaining cautious due to the uncertain backdrop.
Key Highlights
- 1
Net income attributable to common stockholders was $16.0 million, or $0.08 per diluted share, compared to $1.3 million, or $0.01 per diluted share in Q1 2025.
- 2
RevPAR for all hotels increased 14.6% to $255.04 compared to the first quarter of 2025.
- 3
Adjusted EBITDAre increased 18.3% to $67.7 million compared to the first quarter of 2025.
- 4
Adjusted FFO attributable to common stockholders per diluted share increased 28.6% to $0.27 compared to the first quarter of 2025.
- 5
The company repurchased $49.2 million of common and preferred stock since the start of the year through May 1, 2026.
- 6
The company invested $31.0 million into its portfolio during the first quarter of 2026.
- 7
The company is updating its 2026 outlook based on Management’s expectations and information available as of the date of this release.
Management Comments
Bryan A. Giglia
We are pleased with our performance in the first quarter which came in ahead of our expectations despite weather-related headwinds at several hotels throughout the quarter. While the strength was broad based, we were particularly encouraged by our resort portfolio, including solid first quarter performance at Andaz Miami Beach. Our first quarter results demonstrate the embedded growth potential of our portfolio as we benefit from our prior investments and some of our larger markets continue to normalize. We are revising our full year outlook higher to reflect the outperformance in the first quarter, and while trends in the initial months of 2026 give us reasons to be optimistic about the remainder of the year, we retain a level of caution given the uncertain backdrop. We remain committed to addressing the valuation discount at which we trade and realizing the embedded value of our portfolio for our shareholders. While the transaction market has been quiet in recent years, we are beginning to see incremental activity, which may provide a more constructive backdrop in which to execute our capital recycling strategy. In the interim, we continue to deliver value through accretive buyback activity and have repurchased $49.2 million of common and preferred stock since the start of the year at attractive implied yields.
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