#USA #Aliso Viejo #Sunstone Hotel #Hilton New Orleans #Andaz Miami

Sunstone Hotel Investors Reports Robust Fourth Quarter and Full Year Results for 2025

On February 27, 2026, Sunstone Hotel Investors, Inc. (NYSE: SHO) unveiled its financial results for the fourth quarter and full year ending December 31, 2025. With notable increases in several performance metrics, the company demonstrated resilience in the hospitality sector amid economic fluctuations.

Fourth Quarter Highlights

For the fourth quarter of 2025, Sunstone reported a net income of $7.2 million, a significant rise from $0.8 million recorded in the same period in 2024. The Total Portfolio Revenue Per Available Room (RevPAR) surged by 9.6% to reach $220.12. This increase was bolstered by an average daily rate (ADR) of $319.01 and an occupancy rate of 69.0%.

The company's Adjusted EBITDAre also saw a commendable growth of 17.6%, totaling $56.6 million. Furthermore, Adjusted Funds From Operations (FFO) attributable to common stockholders per diluted share rose by 25.0% to $0.20.

Annual Performance Overview

In terms of annual performance, Sunstone achieved a net income of $24.6 million, though this reflected a decline from $43.3 million in 2024. However, excluding the losses incurred from the sale of the Hilton New Orleans St. Charles, the adjusted net income would have been $33.3 million for 2025.
The Total Portfolio RevPAR increased by 3.8% year-over-year to $225.12, underpinned by an ADR of $317.07 and an occupancy rate of 71.0%.

The company also highlighted an Adjusted EBITDAre of $236.6 million, representing a 3.0% increase, while delivering an Adjusted FFO of $0.86 per diluted share, marking a 7.5% rise.

Strategic Actions and Shareholder Returns

Sunstone's CEO, Bryan A. Giglia, remarked on the company's fourth quarter success, emphasizing how strategic capital investments have nurtured robust growth across the portfolio. Particularly, properties like Andaz Miami Beach and Wailea Beach Resort displayed increased demand during the holiday season, contributing significantly to the results.

In 2025, the firm executed a pivotal strategy by returning over $170 million to shareholders through dividends and strategic share repurchases. This included a noteworthy $500 million repurchase authorization, reaffirmed in February 2026, signaling confidence in future growth.

The company effectively navigated challenges in the macroeconomic environment while maximizing portfolio potential. The sale of the Hilton New Orleans St. Charles resulted in a significant capital influx, allowing for aggressive share repurchases, which Giglia highlighted as an effort to create value for shareholders.

Looking Ahead

As Sunstone advances into 2026, it aims to pursue continued capital recycling strategies, enhance portfolio investments, and address valuation discrepancies in its stock. The firm expects to invest approximately $95 million to $115 million in further renovations and improvements across its properties.

The outlook for 2026 is optimistic, with anticipated growth in net income and RevPAR expected to rise by 4.0% to 7.0%. Sunstone projects steady results from its key markets, leveraging its brand presence and agility in a dynamically changing environment.

Conclusion

Sunstone Hotel Investors, Inc. stands ready to adapt and propel forward, navigating the intricacies of the lodging sector while fortifying its commitment to stakeholder value and operational excellence. The continued performance in the last quarter and throughout 2025 serves as a testament to the company's strategy and dedication to growth.