Q4 2025 Sunstone Hotel Investors Inc Earnings Call Transcript
Key Points
- Sunstone Hotel Investors Inc (SHO) exceeded expectations with a 7.4% total revPAR growth in Q4, or 12.5% including contributions from Andos Miami Beach.
- The company successfully completed the sale of Hilton New Orleans at a mid 6% cap rate and reinvested proceeds into stock repurchases at a discount.
- Sunstone Hotel Investors Inc (SHO) returned over $170 million to shareholders through dividends and share repurchases.
- The Andos Miami Beach resort showed strong performance with impressive occupancy rates and significant group room bookings for 2026.
- The company maintained a strong balance sheet with net leverage of 3.5 times trailing earnings and over $700 million in total liquidity.
- Sunstone Hotel Investors Inc (SHO) faced softer transient demand in San Diego and uncertainty in Washington DC, impacting growth.
- The company experienced headwinds from meeting space renovations in San Antonio and San Diego, affecting convention hotel performance.
- Expense growth is expected to be around 5% due to increased energy prices and potential insurance rate hikes.
- The company remains cautious due to past headwinds and uncertainties in key markets like DC, which could impact future performance.
- Total revPAR growth is projected to be lower than rooms revPAR growth, partly due to displacement from renovations and slower group pace in certain markets.
Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Sunstone Hotel Investors fourth quarter earnings call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will be given at that time.
I would like to remind everyone that this conference is being recorded today, February 27, 2026 at 12:00 PM Eastern time. I will now turn the call over to Mr. Aaron Reyes, Chief Financial Officer. Please go ahead, sir.
Thank you, operator.
Before we begin, I would like to remind everyone that this call contains forward-looking statements that are subject to risks and uncertainty, including those described in our filings with the SEC.
Which could cause actual results to differ materially from those projected.
We caution you to consider these factors in evaluating our forward-looking statements.
We also note that the commentary on this call will contain non-GAAP financial
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