| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 277.11 | 6.7% | 6.7% |
| Total Income | 277.11 | 6.7% | 6.7% |
| Expenditure | 251.25 | 3.0% | 0.7% |
| PBT | 26.21 | 40.3% | 142.5% |
| Net Profit | 25.86 | 62.9% | 281.4% |
| OPM | — | ||
| NPM | 9.33% | 3.22pp | 6.72pp |
| EPS | 0.14 | 75.0% | 366.7% |
Sunstone Hotel Investors Reports Q2 2026 Results, Completes Sale of Hyatt Regency San Francisco and Increases Full Year Outlook
06 Aug 2026 · 6 Aug, 5:08 pm
Summary
Sunstone Hotel Investors reported strong second quarter 2026 results, with net income attributable to common stockholders reaching $26.0 million ($0.14 per diluted share), a substantial increase year-over-year. RevPAR for the portfolio grew 9.3% to $263.61, supported by higher occupancy and average daily rates. The company also announced the completion of the Hyatt Regency San Francisco sale for $279 million and is increasing its full-year 2026 outlook across key metrics, including revenue per available room (RevPAR) growth and Adjusted EBITDAre, reflecting outperformance and stronger near-term trends.
Key Highlights
- 1
Net income attributable to common stockholders was $26.0 million, or $0.14 per diluted share, a significant increase from $6.8 million, or $0.03 per diluted share in the prior year's second quarter.
- 2
RevPAR for all hotels in the portfolio increased by 9.3% to $263.61, driven by strong occupancy and average daily rate growth.
- 3
Adjusted EBITDAre increased by 5.5% to $76.7 million compared to the second quarter of 2025.
- 4
Adjusted FFO attributable to common stockholders per diluted share saw a substantial increase of 14.3% to $0.32.
- 5
The company completed the sale of Hyatt Regency San Francisco for $279 million in late July 2026, realizing an attractive valuation.
- 6
Sunstone is increasing its full-year 2026 outlook for Net Income, RevPAR growth, Total RevPAR Growth, Adjusted EBITDAre, and Adjusted FFO per diluted share.
- 7
The company converted its former Oceans Edge Resort & Marina to Hilton Key West Resort & Marina on July 1, 2026, expecting incremental earnings.
Management Comments
Bryan A. Giglia
We are pleased with our performance in the second quarter as both revenue and profitability meaningfully exceeded expectations. Our well-located portfolio benefited from robust leisure demand as a result of increased summer travel and special events which added to sustained strength in group and corporate demand. Given our outperformance in the second quarter and stronger near-term trends, we are increasing our outlook for the year. In late July, we closed on the sale of Hyatt Regency San Francisco, realizing an attractive private market value for a low-yielding asset. The implied valuation multiple on the sale is well in excess of where we are trading and allows us to deliver to our shareholders the value of future growth, today. In anticipation of the sale, starting earlier this year, we began accretively deploying a portion of the sale proceeds into the discounted repurchase of common and preferred stock and expect to generate additional shareholder value and grow NAV per share through the redeployment of the remaining proceeds.
Informational and educational content only. Not investment advice.