Sunstone Hotel Investors
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Sunstone Hotel Investors (SHO) investor relations material

Sunstone Hotel Investors Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary27 Feb, 2026

Executive summary

  • Fourth quarter operating results exceeded expectations, with net income rising to $7.2 million from $0.8 million year-over-year and full-year net income at $24.6 million, impacted by a hotel sale; excluding this, net income would have been $33.3 million.

  • Broad-based portfolio strength and strategic execution on capital recycling, portfolio investment, and capital return to shareholders drove performance.

  • Completed the sale of Hilton New Orleans St. Charles at a mid-6% cap rate for $47 million, with proceeds fully recycled into stock repurchases at a discount.

  • Returned over $170 million to shareholders via dividends and share repurchases in 2025; $500 million repurchase authorization restored.

Financial highlights

  • Total RevPAR grew 7.4% in Q4, or 12.5% including Andaz Miami Beach; rooms RevPAR up 9.6% with a 540 bps benefit from Andaz.

  • Q4 Adjusted EBITDAre was $57 million (up 17.6% to $56.6 million); Adjusted FFO per diluted share increased 25% to $0.20.

  • Full-year margin growth of 40 bps on 3.5% total RevPAR growth, reflecting strong cost management.

  • Q4 portfolio occupancy was 69.0% (up 390 bps); ADR was $319.01 (up 3.5%).

  • Excluding Andaz Miami Beach, Q4 RevPAR grew 4.2% and full-year RevPAR 2.1%.

Outlook and guidance

  • 2026 net income guidance: $21–$46 million; Adjusted EBITDAre: $225–$250 million; Adjusted FFO per diluted share: $0.81–$0.94.

  • 2026 rooms RevPAR expected to increase 4%-7% to $234-$241, with Andaz contributing ~400 bps at midpoint.

  • Total RevPAR guidance for 2026 is 3.5%-6.5% ($385-$396), also with a 400 bps Andaz benefit.

  • Full-year interest expense projected at $53–$56 million; preferred dividends at $16–$17 million.

  • First quarter expected to be the strongest, representing ~25% of full-year projections.

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Frequently asked questions

Sunstone Hotel Investors Inc is a real estate investment trust (REIT) that invests in upper upscale and luxury hotels primarily operated under nationally recognized brands. The company owns interests in hotel properties across major urban and resort markets in the United States, and its assets are typically managed by third-party hotel operators under long-term agreements. Sunstone Hotel Investors Inc is headquartered in Irvine, California, and its shares are listed on the NYSE.

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