Sunstone Hotel Q2 revenue beats on strong leisure demand, lifts 2026 outlook

Sunstone Hotel Investors

06/08/2026 12:56

Overview
U.S. lodging REIT's Q2 revenue beat analyst expectations, driven by strong leisure and group demand
Adjusted FFO per share for Q2 rose 14% yr/yr
Company completed Hyatt Regency San Francisco sale and repurchased common and preferred stock

Outlook
Company raises 2026 net income outlook to $79 mln-$89 mln from $68 mln-$82 mln
Sunstone lifts 2026 RevPAR growth forecast to 7.0%-9.0% from 5.0%-7.5%
Company now sees 2026 Adjusted FFO per diluted share at $0.93-$0.98, up from $0.86-$0.94

Result Drivers
LEISURE AND EVENT DEMAND - Co said increased summer travel and special events boosted leisure demand and contributed to higher revenue and profitability
GROUP AND CORPORATE DEMAND - Sustained strength in group and corporate demand supported portfolio performance, per CEO Bryan A. Giglia
ASSET SALE AND REPURCHASES - Sale of Hyatt Regency San Francisco and repurchase of stock expected to deliver shareholder value, per CEO Bryan A. Giglia

Company press release: ID:nPn97bdGma

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$277.11 mln
$268.28 mln (9 Analysts)
Q2 Net Income
 
$26 mln
 
Q2 Adjusted FFO
 
$59 mln
 
Q2 Adjusted FFO Per Share
 
$0.32
 
Q2 RevPAR
 
$263.61
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 7 "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 $12.00, about 2.7% above its August 5 closing price of $11.68
The stock recently traded at 74 times the next 12-month earnings vs. a P/E of 61 three months ago

Reuters Recommended Reads
Aug 5 - Host Hotels Q2 revenue beats estimates on strength in leisure, group travel business
Aug 5 - Summit Hotel Q2 revenue edges past estimates on higher rates; forecast raised
Aug 5 - Apple Hospitality REIT Q2 net income rises on expense management

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(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.)