Sunstone Hotel Q3 revenue beats estimates; raises FY outlook

By Reuters News


Overview

  • U.S. lodging REIT's Q3 revenue rose and beat analyst expectations

  • Adjusted FFO per diluted share increased 17.6% yr/yr

  • Company completed $117.8 mln in stock repurchases during Q3 and raised full-year outlook


Outlook

  • Sunstone raises 2026 net income outlook to $92 mln-$97 mln from $79 mln-$89 mln

  • Company now sees 2026 RevPAR growth of 9.5%-10.5%, up from 7.0%-9.0%

  • Sunstone expects 2026 adjusted FFO per share of $1.00-$1.03, up from $0.93-$0.98


Result Drivers

  • BROAD-BASED DEMAND - Co said revenue and earnings growth were driven by strength across demand segments and contributions from recent investments, per CEO Bryan A. Giglia

  • REVPAR GROWTH - RevPAR for all hotels increased 11.4% yr/yr, with occupancy and average daily rate both rising

  • STOCK REPURCHASES - Repurchase of common and preferred stock at discounts contributed to higher Adjusted FFO and NAV per share, according to management


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$233.72 mln

$223.04 mln (6 Analysts)

Q3 Net Income

$40.90 mln

Q3 Adjusted FFO

$37.20 mln

Q3 RevPAR

$235.22


Reuters Recommended Reads

  • Nov 4 - RLJ Lodging Trust Q3 revenue beats estimates driven by strong business, leisure travel bookings

  • Nov 4 - Park Hotels & Resorts Q3 RevPAR rises on group and leisure demand

  • Nov 5 - Apple Hospitality REIT 9M net income rises 19%, margins expand


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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