Sunstone Hotel Investors reported a third quarter 2026 earnings beat, with EPS of $0.21 exceeding expectations despite a total revenue miss at $233.7 million. The lower absolute revenue reflects the company's strategy of divesting assets to fund accretive repurchases, while underlying per-room performance was significantly stronger than anticipated, leading to a substantial increase in full-year 2026 guidance.
Key Highlights
- Total portfolio RevPAR grew 11.4% year-over-year to $235.22, significantly outperforming the 3.2% growth expected by analysts.
- Full-year 2026 Adjusted FFO per diluted share guidance was raised to a range of $1.00 to $1.03, up from the previous $0.93 to $0.98.
- The company repurchased $117.8 million of common and preferred stock during the quarter, bringing the year-to-date total to $196.9 million.
- Hotel Adjusted EBITDAre margins, excluding Andaz Miami Beach, expanded 50 basis points to 26.7%.