Sunstone Hotel Investors Inc. (SHO, Financial) filed Quarterly Report for the period ended 2012-06-30.
Sunstone Hotel Investors Inc has a market cap of $1.38 billion; its shares were traded at around $10.39 with a P/E ratio of 10.6 and P/S ratio of 1.7.
Room revenue. Room revenue increased $16.3 million, or 11.0%, for the three months ended June 30, 2012 as compared to the three months ended June 30, 2011. We acquired the Hyatt Chicago Magnificent Mile in June 2012, and we purchased a 75.0% majority interest in the joint venture that owns the Hilton San Diego Bayfront in April 2011. These two hotels generated additional room revenue of $7.1 million during the three months ended June 30, 2012. Room revenue generated by the 30 hotels we acquired prior to March 31, 2011 (our second quarter existing portfolio) increased $9.2 million during the second quarter of 2012 as compared to the second quarter of 2011 due to an increase in occupancy ($5.0 million) combined with an increase in ADR ($4.2 million).
Room revenue increased $46.1 million, or 18.3%, for the six months ended June 30, 2012 as compared to the six months ended June 30, 2011. We acquired the Hyatt Chicago Magnificent Mile in June 2012. In addition, we acquired the outside 62.0% equity interests in the Doubletree Guest Suites Times Square in January 2011 (resulting in our 100% ownership of the hotel), and the JW Marriott New Orleans in February 2011. We also purchased a 75.0% majority interest in the joint venture that owns the Hilton San Diego Bayfront in April 2011. These four recently acquired hotels (the four recently acquired hotels) generated additional room revenue of $31.9 million during the six months ended June 30, 2012. Room revenue generated by the 28 hotels we owned prior to January 1, 2011 (our existing portfolio) increased $14.2 million during the first six months of 2012 as compared to the same period in 2011 due to an increase in occupancy ($11.0 million) combined with an increase in ADR ($3.2 million).
Other operating revenue increased $4.1 million, or 14.0%, for the six months ended June 30, 2012 as compared to the six months ended June 30, 2011. Our four recently acquired hotels contributed an additional $2.8 million to other operating revenue during the first six months of 2012. In addition, other operating revenue increased $0.3 million in the first six months of 2012 as compared to the same period in 2011 due to the consolidation of BuyEfficient with our operations due to the purchase of the outside 50.0% equity interest in the joint venture in January 2011. Previously, our 50.0% portion of BuyEfficients net income was included in equity in earnings of unconsolidated joint ventures. BuyEfficient contributed an additional $0.2 million in other operating revenue during the first six months of 2012 as compared to the same period in 2011 due to increased transaction and development fees. In addition, other operating revenue in our existing portfolio increased $0.8 million during the first six months of 2012 as compared to the same period in 2011, due to increased revenue at our commercial laundry facility located in Rochester, Minnesota combined with increased parking revenue at our hotels, partially offset by decreased telephone, guest movie, cancellation and attrition revenue.
Hotel operating expenses. Hotel operating expenses, which are comprised of room, food and beverage, advertising and promotion, repairs and maintenance, utilities, franchise costs, property tax, ground lease and insurance, and other hotel operating expenses increased $12.4 million, or 10.0%, during the three months ended June 30, 2012 as compared to the three months ended June 30, 2011. The Hyatt Chicago Magnificent Mile and the Hilton San Diego Bayfront together contributed an additional $6.2 million to hotel operating expenses during the second quarter of 2012, which included an estimated supplemental property tax assessment of $1.9 million on the Hilton San Diego Bayfront, including $1.1 million relating to the time period April 2011 through December 2011. Hotel operating expenses in our second quarter existing portfolio increased $6.2 million during the three months ended June 30, 2012 as compared to the same period in 2011. This increase in hotel operating expenses is primarily related to the corresponding increases in room, food and beverage and parking revenue. In addition, hotel operating expenses in our second quarter existing portfolio increased during the three months ended June 30, 2012 as compared to the same period in 2011 due to increases in
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Sunstone Hotel Investors Inc has a market cap of $1.38 billion; its shares were traded at around $10.39 with a P/E ratio of 10.6 and P/S ratio of 1.7.
Highlight of Business Operations:
For both the three and six months ended June 30, 2012, the Company has included $2.7 million of revenues, and $0.9 million of net loss in its consolidated statements of operations and comprehensive income (loss) related to the Companys 2012 acquisition. For the three and six months ended June 30, 2011, the Company has included $48.3 million and $62.2 million of revenues, respectively, and net income of $2.0 million and a net loss of $3.2 million, respectively, in its consolidated statements of operations and comprehensive income (loss) related to the Companys 2011 acquisitions.Room revenue. Room revenue increased $16.3 million, or 11.0%, for the three months ended June 30, 2012 as compared to the three months ended June 30, 2011. We acquired the Hyatt Chicago Magnificent Mile in June 2012, and we purchased a 75.0% majority interest in the joint venture that owns the Hilton San Diego Bayfront in April 2011. These two hotels generated additional room revenue of $7.1 million during the three months ended June 30, 2012. Room revenue generated by the 30 hotels we acquired prior to March 31, 2011 (our second quarter existing portfolio) increased $9.2 million during the second quarter of 2012 as compared to the second quarter of 2011 due to an increase in occupancy ($5.0 million) combined with an increase in ADR ($4.2 million).
Room revenue increased $46.1 million, or 18.3%, for the six months ended June 30, 2012 as compared to the six months ended June 30, 2011. We acquired the Hyatt Chicago Magnificent Mile in June 2012. In addition, we acquired the outside 62.0% equity interests in the Doubletree Guest Suites Times Square in January 2011 (resulting in our 100% ownership of the hotel), and the JW Marriott New Orleans in February 2011. We also purchased a 75.0% majority interest in the joint venture that owns the Hilton San Diego Bayfront in April 2011. These four recently acquired hotels (the four recently acquired hotels) generated additional room revenue of $31.9 million during the six months ended June 30, 2012. Room revenue generated by the 28 hotels we owned prior to January 1, 2011 (our existing portfolio) increased $14.2 million during the first six months of 2012 as compared to the same period in 2011 due to an increase in occupancy ($11.0 million) combined with an increase in ADR ($3.2 million).
Other operating revenue increased $4.1 million, or 14.0%, for the six months ended June 30, 2012 as compared to the six months ended June 30, 2011. Our four recently acquired hotels contributed an additional $2.8 million to other operating revenue during the first six months of 2012. In addition, other operating revenue increased $0.3 million in the first six months of 2012 as compared to the same period in 2011 due to the consolidation of BuyEfficient with our operations due to the purchase of the outside 50.0% equity interest in the joint venture in January 2011. Previously, our 50.0% portion of BuyEfficients net income was included in equity in earnings of unconsolidated joint ventures. BuyEfficient contributed an additional $0.2 million in other operating revenue during the first six months of 2012 as compared to the same period in 2011 due to increased transaction and development fees. In addition, other operating revenue in our existing portfolio increased $0.8 million during the first six months of 2012 as compared to the same period in 2011, due to increased revenue at our commercial laundry facility located in Rochester, Minnesota combined with increased parking revenue at our hotels, partially offset by decreased telephone, guest movie, cancellation and attrition revenue.
Hotel operating expenses. Hotel operating expenses, which are comprised of room, food and beverage, advertising and promotion, repairs and maintenance, utilities, franchise costs, property tax, ground lease and insurance, and other hotel operating expenses increased $12.4 million, or 10.0%, during the three months ended June 30, 2012 as compared to the three months ended June 30, 2011. The Hyatt Chicago Magnificent Mile and the Hilton San Diego Bayfront together contributed an additional $6.2 million to hotel operating expenses during the second quarter of 2012, which included an estimated supplemental property tax assessment of $1.9 million on the Hilton San Diego Bayfront, including $1.1 million relating to the time period April 2011 through December 2011. Hotel operating expenses in our second quarter existing portfolio increased $6.2 million during the three months ended June 30, 2012 as compared to the same period in 2011. This increase in hotel operating expenses is primarily related to the corresponding increases in room, food and beverage and parking revenue. In addition, hotel operating expenses in our second quarter existing portfolio increased during the three months ended June 30, 2012 as compared to the same period in 2011 due to increases in
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