Sunstone Hotel Investors Inc. (SHO, Financial) filed Quarterly Report for the period ended 2009-03-31.
Sunstone Hotel Investors Inc. is a Southern California-based lodging real estate company that expects to qualify as a real estate investment trust for federal income tax purposes. The Company owns hotels primarily in the upper-upscale and upscale segments primarily operated under franchises owned nationally-recognized companies such as Marriott Hilton InterContinental and Hyatt. Sunstone Hotel Investors Inc. has a market cap of $416.4 million; its shares were traded at around $7.61 with a P/E ratio of 2.7 and P/S ratio of 0.5.
Room revenue. Room revenue decreased $24.3 million, or 16.5%, for the three months ended March 31, 2009 as compared to the three months ended March 31, 2008 due to a decrease in occupancy of $9.9 million combined with a decrease in ADR of $14.4 million.
Goodwill and other impairment losses. Goodwill and other impairment losses totaled $3.7 million for the three months ended March 31, 2009 compared to zero for the three months ended March 31, 2008. In conjunction with our quarterly impairment evaluation, we wrote off $3.6 million of goodwill associated with four of our hotels. In addition, we recognized a $0.1 million impairment loss on a parcel of land adjacent to one of our hotels in anticipation of its sale subsequent to March 31, 2009.
Equity in net losses of unconsolidated joint ventures. Equity in net losses of unconsolidated joint ventures totaled $1.5 million for both the three months ended March 31, 2009 and 2008. In the first quarter of 2009, we recognized a loss of $1.5 million on our interest in the Doubletree Guest Suites Hotel Times Square joint venture, and a nominal loss on our BuyEfficient joint venture. In the first quarter of 2008, we recognized a loss of $1.5 million on our interest in the Doubletree Guest Suites Hotel Times Square joint venture, and nominal income on our BuyEfficient joint venture.
Interest and other income. Interest and other income totaled $0.6 million for both the three months ended March 31, 2009 and 2008. In the first quarter of 2009, we recognized $0.3 million in interest income, and $0.3 million on the sale of artwork located in one of our hotels. In the first quarter of 2008, we recognized $0.6 million in interest income.
Read the The complete ReportSHO is in the portfolios of David Einhorn of Greenlight Capital Inc.
Sunstone Hotel Investors Inc. is a Southern California-based lodging real estate company that expects to qualify as a real estate investment trust for federal income tax purposes. The Company owns hotels primarily in the upper-upscale and upscale segments primarily operated under franchises owned nationally-recognized companies such as Marriott Hilton InterContinental and Hyatt. Sunstone Hotel Investors Inc. has a market cap of $416.4 million; its shares were traded at around $7.61 with a P/E ratio of 2.7 and P/S ratio of 0.5.
Highlight of Business Operations:
During the first three months of 2009, in light of the current cyclical decline, we continued to closely monitor our unrestricted cash balance. We intend to continue to maintain higher than historical cash balances until such time as we believe the lodging cycle is approaching a recovery phase. A portion of our cash, however, may be used to fund certain transactions such as the tender offer we commenced on April 17, 2009, (the Note Tender Offer) with respect to the repurchase by the Operating Partnership of any and all of the Operating Partnerships outstanding 4.60% exchangeable senior notes (the Senior Notes). All of our debt bears fixed interest at a weighted average rate of 5.6%, and the weighted average term to maturity of our debt is 7.7 years. Of our total debt, approximately $329.2 million matures over the next three years ($81.0 million in 2010 and $248.2 million in 2011).Room revenue. Room revenue decreased $24.3 million, or 16.5%, for the three months ended March 31, 2009 as compared to the three months ended March 31, 2008 due to a decrease in occupancy of $9.9 million combined with a decrease in ADR of $14.4 million.
Goodwill and other impairment losses. Goodwill and other impairment losses totaled $3.7 million for the three months ended March 31, 2009 compared to zero for the three months ended March 31, 2008. In conjunction with our quarterly impairment evaluation, we wrote off $3.6 million of goodwill associated with four of our hotels. In addition, we recognized a $0.1 million impairment loss on a parcel of land adjacent to one of our hotels in anticipation of its sale subsequent to March 31, 2009.
Equity in net losses of unconsolidated joint ventures. Equity in net losses of unconsolidated joint ventures totaled $1.5 million for both the three months ended March 31, 2009 and 2008. In the first quarter of 2009, we recognized a loss of $1.5 million on our interest in the Doubletree Guest Suites Hotel Times Square joint venture, and a nominal loss on our BuyEfficient joint venture. In the first quarter of 2008, we recognized a loss of $1.5 million on our interest in the Doubletree Guest Suites Hotel Times Square joint venture, and nominal income on our BuyEfficient joint venture.
Interest and other income. Interest and other income totaled $0.6 million for both the three months ended March 31, 2009 and 2008. In the first quarter of 2009, we recognized $0.3 million in interest income, and $0.3 million on the sale of artwork located in one of our hotels. In the first quarter of 2008, we recognized $0.6 million in interest income.
Read the The complete ReportSHO is in the portfolios of David Einhorn of Greenlight Capital Inc.
