In This Article:
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RevPAR Growth: Westin Washington, DC downtown RevPAR up 33%, total RevPAR up 39%.
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Total RevPAR Growth: Convention hotel portfolio total RevPAR growth nearly 15%.
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Group Room Nights Booked: Up 11% year-over-year.
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Group Revenue Growth: 15% increase in revenue from group bookings.
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Marriott Boston Long Wharf RevPAR Growth: Total RevPAR growth of 8.6%.
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Portland Occupancy Increase: Occupancy increased by more than 16 points year-over-year.
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Urban Hotel Portfolio RevPAR Growth: Excluding Long Beach, RevPAR grew by 9%.
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Montage Healdsburg RevPAR Growth: Total RevPAR increased by 27%.
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Four Seasons Napa Valley RevPAR Growth: RevPAR grew by over 5%.
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Stock Repurchase: $23 million repurchased in the quarter, $26 million year-to-date at $9.83 per share.
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Adjusted EBITDAre: Approximately $54 million for the third quarter.
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FFO: $0.18 per diluted share for the third quarter.
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Full Year RevPAR Change Guidance: Expected decline of 3.25% to 1.75% compared to 2023.
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Full Year Adjusted EBITDAre Guidance: Estimated range from $220 million to $230 million.
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Adjusted FFO per Diluted Share Guidance: Estimated range from $0.75 to $0.80.
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Quarterly Dividend: $0.09 per share for the fourth quarter.
Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Sunstone Hotel Investors Inc (NYSE:SHO) successfully navigated challenges from weather events and labor disruptions, maintaining operations and resolving issues at key properties like the Hilton San Diego Bayfront.
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The company's urban hotel portfolio showed strong performance, with RevPAR growth of 9%, driven by robust business transient demand.
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The newly converted Westin Washington, DC downtown exceeded expectations with a 33% RevPAR growth, attracting higher quality groups and transient customers.
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Sunstone Hotel Investors Inc (NYSE:SHO) repurchased $23 million of stock during the quarter, reflecting confidence in the company's valuation and financial health.
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The company is optimistic about 2025, expecting benefits from recent acquisitions, completed repositionings, and improved group pace across several markets.
Negative Points
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Labor disruptions at the Hilton San Diego Bayfront negatively impacted third and fourth quarter earnings, with lingering effects on bookings.
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Leisure demand moderated in the third quarter, particularly in Key West and Maui, where pricing sensitivity and softer demand were noted.
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The Andaz Miami Beach transformation faced delays due to weather and permitting issues, extending the project timeline and increasing costs by $15 million.
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Sunstone Hotel Investors Inc (NYSE:SHO) revised its 2024 outlook downward due to short-term impacts from weather disruptions in Florida and a muted leisure backdrop.
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The company's Maui operations underperformed expectations, with ongoing challenges in leisure demand following last year's fires.