Aliso Viejo – November 06, 2026 -- Sunstone Hotel Investors (NYSE: SHO) reported third-quarter 2026 net income attributable to common stockholders of $38.7 million, or $0.21 per diluted share, against a net loss of $2.9 million, or $(0.02) per share, a year earlier. The lodging REIT again raised its full-year 2026 outlook after revenue and earnings exceeded its expectations.
RevPAR rises 11.4% to $235.22 as Adjusted FFO per share climbs 17.6%
RevPAR across the portfolio increased 11.4% to $235.22, with an average daily rate of $323.55 and occupancy of 72.7%. Excluding Andaz Miami Beach, RevPAR rose 10.3%. Total RevPAR grew 10.5% to $394.97, or 9.6% excluding the Miami Beach property.
Adjusted EBITDAre increased 8.8% to $54.5 million. Adjusted FFO attributable to common stockholders rose 17.6% to $0.20 per diluted share.
Hotel Adjusted EBITDAre Margin, excluding Andaz Miami Beach, widened 50 basis points to 26.7%. Excluding Hilton Key West Resort & Marina, which was under renovation during the quarter, and one-time items in both years, margins would have risen about 200 basis points.
CEO Bryan A. Giglia said the portfolio "performed very well" and cited broad-based demand across segments plus contributions from recent investments. He pointed to robust group pace, further recovery in certain markets and added investment contribution for next year.
Sunstone deploys $196.9M into buybacks year to date, with $310.6M authorization left
The company repurchased $117.8 million of common and preferred stock in the third quarter, before expenses. Year-to-date repurchases through Nov. 5 total $196.9 million. Remaining authorization stands at $310.6 million.
Common stock accounted for $103.0 million of the quarterly total: 9,368,434 shares at an average $10.99. Since the start of the year, Sunstone has bought 13,748,527 common shares at an average $10.43, or $143.4 million. The company says that price is a substantial discount to consensus net asset value estimates.
Preferred repurchases were also made below liquidation value:
- Series H: 1,234,583 shares bought year to date at an average $21.52 ($26.6 million), a 13.9% discount.
- Series I: 1,308,051 shares bought year to date at an average $20.56 ($26.9 million), a 17.7% discount.
Management said asset sales at private-market values funded the buybacks, lifting Adjusted FFO and NAV per share while preserving the leverage profile.
Liquidity reaches $817.9M with no debt maturing until January 2028
At Sept. 30, Sunstone held $317.9 million in cash and cash equivalents, including $81.4 million of restricted cash. Liquidity totaled $817.9 million, including full availability under its $500.0 million revolving credit facility.
Total debt was $955.0 million at a weighted average interest rate of 5.22%, including the effect of interest rate swaps entered into in October 2026.
Capital spending to reach $105M-$115M in 2026 as dividends are set for January
Sunstone invested $76.6 million in its portfolio during the first nine months and expects to spend roughly $105 million to $115 million for the full year. Most of the spending covers the completed meeting-space renovation at Hilton San Diego Bayfront, work at Hilton Key West Resort & Marina, and storm-related restoration at Wailea Beach Resort.
Updated assumptions put full-year corporate overhead at about $19 million, $0.5 million below the prior range midpoint, and preferred dividends at about $15 million, also $0.5 million lower. Interest expense is projected at $46 million to $49 million. The company warned that geopolitical developments, economic policy shifts or weaker consumer sentiment could prompt further revisions or withdrawal of the outlook.
The board authorized a common dividend of $0.09 per share. Preferred dividends are $0.937500 per Series G share, $0.382813 per Series H share and $0.356250 per Series I share. All are payable Jan. 15, 2027 to holders of record on Dec. 31, 2026.