NYSE$SHO

Sunstone Hotel Investors Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Sunstone's third quarter results were reported, showing a decrease in net income and adjusted EBITDAre, but urban and convention hotels performed well.

Sunstone Hotel Investors reported a net income of $3.2 million and an adjusted EBITDAre of $53.6 million for Q3 2024. Comparable RevPAR decreased by 1.3%, but when excluding The Confidante Miami Beach and Hilton San Diego Bayfront, RevPAR increased by 2.4%.

  • Net income was $3.2 million, down from $15.6 million in the same quarter of the previous year.
  • Comparable RevPAR decreased by 1.3% to $207.56.
  • Adjusted EBITDAre decreased by 15.9% to $53.6 million.
  • The company repurchased 2,329,574 shares of its common stock at an average price of $9.79 per share since the start of Q3 2024.

Headline financials

Total Revenue

$226M

Previous: $248M-8.6%
EPS

$0.00

Previous: $0.23-100.0%
Total Portfolio RevPAR

$211.96

Previous: $222.54-4.8%
Occupancy

69.2%

No prior period
Average Daily Rate

$306.30

No prior period
Hotel Adjusted EBITDAre Margin

25.0%

No prior period
Hotel Adj. EBITDAre Margin ex-Andaz

25.3%

No prior period
Adjusted EBITDAre

$53.6M

No prior period
Adjusted FFO

$36.9M

No prior period
FFO per Diluted Share

$0.15

No prior period
Capital Expenditures

-$340M

Previous: -$306M-10.8%
Free Cash Flow

-$336M

Previous: -$291M-15.6%
Net Income

$3.25M

Previous: $15.6M-79.1%
Operating Income

-$210M

Previous: -$221M+4.9%
Cash & Equivalents

$116M

Previous: $114M+1.6%
Total Assets

$3.12B

Previous: $3.09B+0.9%
Stock-Based Comp

$2.43M

Previous: $2.51M-3.2%

Revenue & EPS history

Sunstone · Revenue · Quarterly

$226M

Q3 2024-8.6%vs Q3 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

Sunstone provided updated full year 2024 guidance, impacted by labor activity at the Hilton San Diego Bayfront, severe weather in Florida, and a slower recovery in Maui.

Tailwinds

  • Full year interest income is expected to be approximately $12 million.
  • Full year corporate overhead expense is expected to decrease by $0.5 million.
  • The Confidante Miami Beach is expected to reopen as Andaz Miami Beach in February 2025.
  • The resort is anticipated to generate a smaller EBITDAre loss of approximately $2 million to $3 million in 2024.
  • Company remains well positioned to drive incremental earnings from recent brand conversions.

Headwinds

  • Labor activity at the Hilton San Diego Bayfront has led to incremental earnings disruption.
  • Severe weather impacted the state of Florida.
  • There was a slower than anticipated recovery in Maui.
  • Total Portfolio RevPAR Growth is expected to be between -3.25% to -1.75%.
  • Adjusted EBITDAre is expected to be between $220 million to $230 million.

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 Q3 2024

Historical avgQ3 2024

-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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