Sunstone Hotel Investors, Inc.SHO
Scheduled
Sunstone Hotel Investors, Inc. 2026 Q2 Earnings Call
Review the key takeaways and the transcript of this earnings call.
PeriodQ2 2026
Key takeaways
- The company reported second quarter earnings ahead of expectations, driven by stronger leisure performance and sustained strength in corporate and group demand.
- Rooms RevPAR for the total portfolio grew 9.3% in the quarter, including a 500 basis point benefit from Andaz Miami Beach.
- Total RevPAR increased 7.7%, including a 470 basis point benefit from Andaz.
- Adjusted EBITDA in the second quarter was $77 million, a 6% increase relative to last year.
- Adjusted FFO per diluted share was $0.32, a 14% increase from last year.
- The balance sheet remains strong with a total cash balance of approximately $430 million as of Q2 and net leverage of 2.6 times trailing earnings or 3.6 times including preferred equity.
- No debt maturities are due prior to 2028, and full availability on the credit facility has been restored.
- The company completed the sale of Hyatt Regency San Francisco and received proceeds that bolster the balance sheet.
- Capital investment projects include renovations at San Diego meeting space, completion of Bazaar restaurant at Andaz Miami Beach, and conversion of Ocean's Edge Resort to Hilton Key West Resort and Marina.
- Wailea Beach Resort incurred storm damage but repair work is substantially complete with $6 million received from insurers so far, including $1.2 million for business interruption.
- The company repurchased $70 million of common and preferred stock year to date, accretive to NAV and earnings per share.
- The board authorized a nine cent per share common dividend for the third quarter and routine preferred distributions.
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