Sunstone Hotel's Q2 revenue beats expectations

Sunstone Hotel Investors

06/08/2025 12:51

Overview

Sunstone Q2 revenue beats analyst expectations, driven by 2.2% RevPAR growth

Net income for Q2 falls due to Hilton New Orleans St. Charles sale loss

Company repurchased $100 mln in shares, representing nearly 14% of shares outstanding

Outlook

Sunstone expects 2025 net income between $14 mln and $28 mln

Company revises 2025 RevPAR growth to 3%-5%

Sunstone forecasts 2025 Adjusted EBITDAre of $226 mln to $240 mln

Company anticipates 2025 Adjusted FFO per share of $0.80 to $0.87

Result Drivers

REVPAR GROWTH - RevPAR increased 2.2% driven by strong performance in Long Beach, San Francisco, and Wine Country

LEISURE DEMAND - Softer leisure demand and weaker government volume impacted overall performance

SHARE REPURCHASES - $100 mln in shares repurchased, funded by Hilton New Orleans St. Charles sale, seen as better yield than hotel retention

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$259.77 mln
$257.30 mln (8 Analysts)
Q2 EPS
$0.03
Q2 Net Income
$10.80 mln
Q2 Adjusted FFO
$55.70 mln
Q2 RevPAR
$241.22


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the specialized reits peer group is "buy"

Wall Street's median 12-month price target for Sunstone Hotel Investors Inc is $10.00, about 12.3% above its August 5 closing price of $8.77

The stock recently traded at 35 times the next 12-month earnings vs. a P/E of 44 three months ago

Press Release: ID:nPn69vPvxa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)