NYSE$SHO

Sunstone Hotel Investors Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Sunstone's first quarter results for 2022 were reported, with net income of $15.1 million and RevPAR for the 12 Hotel Portfolio increasing by 207.7%.

Sunstone Hotel Investors reported a positive first quarter in 2022 with a net income of $15.1 million, a significant increase compared to the net loss of $55.3 million in the same period last year. The company saw a substantial rise in RevPAR across its 12 and 14 hotel portfolios, driven by increases in both occupancy and average daily rate. Adjusted EBITDAre also showed a strong increase, reflecting improved operational performance. The company actively recycled capital through property sales and share repurchases.

  • Net income was $15.1 million, compared to a net loss of $55.3 million in the first quarter of 2021.
  • RevPAR for the 12 Hotel Portfolio increased by 207.7% to $148.65.
  • Adjusted EBITDAre increased 285.3% to $27.2 million.
  • The company sold three hotels for a combined gross sale price of $197.0 million and repurchased $48.4 million of common stock.

Headline financials

Total Revenue

$172M

Previous: $50.6M+240.3%
EPS (adj)

$0.08

Previous: -$0.13+161.5%
Total Portfolio RevPAR

$148.65

Previous: $42.19+252.3%
Capital Expenditures

-$30.8M

Previous: -$6.87M-348.9%
Free Cash Flow

-$15.7M

Previous: -$62.2M+74.7%
Net Income

$15.1M

Previous: -$55.3M+127.4%
Operating Income

-$179M

Previous: -$98.1M-82.6%
Gross Profit

$78.4M

No prior period
Cash & Equivalents

$215M

Previous: $320M-32.9%
Total Assets

$2.95B

Previous: $2.92B+1.2%
Stock-Based Comp

$3.58M

No prior period

Revenue & EPS history

Sunstone · Revenue · Quarterly

$172M

Q1 2022+240.3%vs Q1 2021
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

Sunstone anticipates continued growth in the second quarter, driven by strong demand at resorts and increasing business volumes at group-oriented and urban hotels. The company expects this trend to continue through 2022 and into 2023, with corporate business and group demand driving higher occupancy and ancillary spend. Sunstone also plans to continue recycling capital and growing its portfolio through strategic acquisitions, which positions the company to drive meaningful per share earnings and NAV growth.

Tailwinds

  • Anticipates that the second quarter will be another quarter of meaningful growth for our portfolio.
  • Expects continued strong demand at resorts.
  • Will benefit from increasing business volumes at group-oriented and urban hotels.
  • Return of larger-scale group and corporate events driving higher occupancy and greater ancillary spend.
  • Expects to continue to recycle capital and utilize a portion of our significant balance sheet capacity to grow our portfolio.

Headwinds

  • The COVID-19 pandemic continues to pose uncertainty.
  • Increased risks related to employee matters, including increased employment litigation.
  • General economic and business conditions, including a U.S. recession or increased inflation.
  • Rising hotel operating costs due to labor costs, workers’ compensation and health-care related costs, utility costs, property and liability insurance costs.
  • System security risks, data protection breaches, cyber-attacks and systems integration issues.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.0%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+1.0%

Avg return

30 days after

45%

29 / 65 earnings

Positive

+20.1%

Q3 2020

Best reaction

-10.0%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.2%+8.0%+18.3%
Q4 2025-3.7%+0.5%-7.3%
Q3 2025+1.8%+2.5%-3.8%
Q1 2025-2.9%+0.5%+0.8%
Q4 2024-5.8%-8.2%-13.9%
Q3 2024-4.1%-7.3%+12.5%
Q2 2024+0.0%-1.6%+2.4%
Q1 2024+1.9%+0.7%+0.3%
Q4 2023-0.1%+0.6%-1.5%
Q3 2023-1.5%+0.6%+5.6%
Q2 2023+0.0%-0.6%-6.0%
Q1 2023+3.5%+5.5%+4.9%
Q4 2022+7.0%+7.4%-11.6%
Q3 2022-4.0%+4.5%-0.7%
Q2 2022-0.5%+0.5%-2.4%
Q1 2022-4.9%-7.8%+1.4%
Q4 2021-10.0%-7.6%+0.9%
Q3 2021+2.2%-0.9%-15.1%
Q2 2021-1.2%-0.2%+2.7%
Q1 2021-2.1%-3.2%-2.1%
Q4 2020+6.3%+8.8%+15.5%
Q3 2020+20.1%+19.4%+38.1%
Q2 2020+4.1%+10.7%+14.7%
Q1 2020-9.5%-18.8%+13.7%
Q4 2019-1.8%-1.9%-46.8%
Q3 2019+3.3%+0.6%-1.2%
Q2 2019+0.7%-0.9%-0.5%
Q1 2019-2.3%-1.9%-6.7%
Q4 2018+2.7%+3.1%+3.2%
Q3 2018+1.5%+4.4%+2.8%
Q2 2018+0.7%+1.2%+3.3%
Q1 2018+1.8%+3.3%+6.8%
Q4 2017-0.4%-1.6%-5.9%
Q3 2017-0.8%+0.2%+0.9%
Q2 2017-1.1%+0.7%-2.9%
Q1 2017+2.6%+5.2%+5.3%
Q4 2016-0.9%-2.8%-2.8%
Q3 2016-1.9%-1.4%+19.2%
Q2 2016+2.1%+0.5%-2.4%
Q1 2016-1.2%
Q4 2015+1.4%
Q3 2015+1.6%
Q2 2015+1.8%
Q1 2015-1.0%
Q4 2014+0.8%
Q3 2014-1.0%
Q2 2014+1.8%
Q1 2014+1.9%
Q4 2013+2.1%
Q3 2013+2.1%
Q2 2013+1.0%
Q1 2013+2.0%
Q4 2012-2.0%
Q3 2012-3.2%
Q2 2012+1.6%
Q1 2012+2.0%
Q4 2009-1.8%
Q4 2011-1.8%
Q3 2011-2.9%
Q3 2010-2.9%
Q2 2011-3.1%
Q2 2010-3.1%
Q1 2011-1.5%
Q1 2010-1.5%
Q4 2010-1.5%

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