Welcome to our dedicated page for Sunstone Hotel Investors news (Ticker: SHO), a resource for investors and traders seeking the latest updates and insights on Sunstone Hotel Investors stock.
Sunstone Hotel Investors, Inc. (NYSE: SHO) is a leading lodging real estate investment trust (REIT) focused on acquiring, owning, managing, and renovating upscale hotel properties across the United States. The company's diverse portfolio consists of upper-upscale and luxury hotels primarily located in convention, resort destinations, and urban markets, operating under well-known brands including Marriott, Hyatt, Hilton, Four Seasons, and Montage. Its operations span key regions like California, Florida, and Hawaii, with California generating the majority of its revenue.
Sunstone’s strategic approach involves the active ownership and disposition of hotels, a concept they refer to as Long-Term Relevant Real Estate®. This strategy has seen the company successfully reinvigorate and reposition several properties, enhancing their market competitiveness and financial performance.
In recent developments, Sunstone completed the sale of the Boston Park Plaza for $370 million, a transaction indicative of their strategic capital recycling efforts aimed at reinvesting in higher growth opportunities. This sale was followed by the acquisition of the Hyatt Regency San Antonio Riverwalk for $230 million, demonstrating their focus on premier locations and sustainable income growth. This acquisition includes nearly two acres of riverfront land and a parking garage adjacent to the Alamo Visitor Center and Museum.
Sunstone's financial stability is underscored by their robust revenue streams from hotel operations, supported by strategic renovations and brand conversions. Notable projects include the conversion of The Confidante Miami Beach to Andaz Miami Beach and the Renaissance Long Beach to Marriott Long Beach Downtown, both slated for completion in 2024. These projects are expected to elevate the hotels' market positions and drive substantial earnings growth.
As of March 31, 2024, Sunstone holds $471.0 million in cash and cash equivalents and has total assets worth $3.1 billion. The company’s debt stands at $818.5 million against a stockholders' equity of $2.2 billion, reflecting a strong balance sheet that supports ongoing and future investments.
Sunstone Hotel Investors continues to prioritize long-term stakeholder value, leveraging market trends and demographic shifts to optimize their portfolio and deliver superior returns. For more detailed information, please visit their official website at www.sunstonehotels.com.
On June 2, 2022, Sunstone Hotel Investors (NYSE: SHO) announced the acquisition of The Confidante Miami Beach for $232 million, equating to $684,000 per room. An additional $60 million will be invested to transform the hotel into a luxury Andaz brand resort. Post-renovation, the property is expected to yield an 8% to 9% net operating income. The acquisition is financed through available cash and a $140 million revolving credit facility. Recent operational metrics indicate a recovery trend with improved occupancy and average daily rates compared to pre-pandemic levels.
Sunstone Hotel Investors (NYSE: SHO) announced a definitive agreement to acquire Park Hotels & Resorts' 25% interest in the Hilton San Diego Bayfront for $102 million, plus assuming a $55 million mortgage. This $628 million transaction values the hotel at $527,700 per key, representing a 13.2x EBITDA multiple and a 6.6% cap rate. The deal is expected to close by the end of Q2 2022, primarily funded through the company’s revolving credit facility. This acquisition consolidates ownership, enhancing Sunstone's market position in a prime location.
Sunstone Hotel Investors (NYSE: SHO) announced a definitive agreement to acquire The Confidante Miami Beach for $232 million, equating to $684,000 per key. The acquisition, funded through cash and a revolving credit facility, includes an additional $60 million for renovations to rebrand the hotel to Andaz Miami Beach. This transformation aims for an 8% to 9% stabilized net operating income yield post-renovation. Closing is expected by the end of Q2 2022, subject to customary conditions.
Sunstone Hotel Investors (NYSE: SHO) reported a robust first quarter in 2022, achieving a net income of $15.1 million, a significant turnaround from a $55.3 million loss in 2021. RevPAR for the 12 hotel portfolio surged 207.7% to $148.65, with an occupancy rate of 53.1%. Adjusted EBITDAre increased 285.3% to $27.2 million, while per diluted share Adjusted FFO rose 166.7% to $0.08. The company actively managed its capital, selling three hotels for $197 million and repurchasing $48.4 million in stock, signaling confidence in future growth amid positive market trends.
Sunstone Hotel Investors (NYSE: SHO) announced it will report its financial results for Q1 2022 on May 4, 2022, after market close. A conference call for investors is scheduled for May 5, 2022, at 12:00 PM ET. Interested parties can join via a live webcast or by dialing 1-888-330-3573 with Conference ID 4831656. Sunstone focuses on creating long-term stakeholder value through the acquisition and active management of hotels recognized as Long-Term Relevant Real Estate.
Sunstone Hotel Investors (NYSE: SHO) has sold the Embassy Suites Chicago and Hilton Garden Inn Chicago for $129.5 million, equating to $178,000 per key. This sale represents a 9.8x multiple on 2019 Hotel Adjusted EBITDAre and an 8.8% cap rate on 2019 Hotel Net Operating Income. The company anticipates a net loss of $3.1 to $3.6 million before any gain on sale. Following this, Sunstone aims to reinvest the proceeds into higher-growth opportunities. The company reported increased occupancy rates and RevPAR, forecasted to reach 80% of 2019 levels in Q2 2022.
Sunstone Hotel Investors (NYSE: SHO) has informed its unsecured lenders of the termination of the covenant relief period related to its amended debt agreements. This decision comes after the company met its financial covenants for Q4 2021. Following this termination, Sunstone will adhere to a modified set of financial covenants for the next five quarters, eventually reverting to the original covenants. CEO Bryan Giglia highlighted the early exit as crucial for enhancing capital allocation flexibility, aiming to return earnings closer to pre-pandemic levels and boost per share earnings.
On March 7, 2022, Sunstone Hotel Investors (NYSE: SHO) announced significant management changes. Bryan Giglia, previously the Chief Financial Officer, has been appointed as the new Chief Executive Officer. Robert Springer, the Chief Investment Officer, has taken on the additional role of President. Aaron Reyes is now the Chief Financial Officer, stepping in for Giglia. Chairman Douglas M. Pasquale will serve as Executive Chairman until August 2022. The Board emphasized their confidence in the new leadership to enhance long-term per share NAV growth and capitalize on recovery in the hospitality sector post-pandemic.
Sunstone Hotel Investors (NYSE: SHO) reported a strong recovery in its fourth quarter and full year 2021 results. Net income surged to $138.3 million, a significant turnaround from a net loss of $39.4 million in Q4 2020. The 14 Hotel Portfolio's RevPAR increased by 421.2% to $136.51, with an average daily rate of $245.53. Full year net income reached $33 million, up from a loss of $410.5 million in 2020. The company successfully disposed of and acquired hotels, enhancing its portfolio while reducing preferred stock dividends. However, COVID-19 continues to pose risks to short-term operations.
On January 21, 2022, Sunstone Hotel Investors (NYSE: SHO) announced the tax treatment for 2021 distributions to holders of its preferred stock. The total distribution per share varies by series: Series E at $0.434375, Series F at $0.403125, Series H at $0.157378 and $0.382813, and Series I at $0.296875 and $0.356250. Payment dates for dividends are specified, with some dated as recently as January 18, 2022. Shareholders are advised to consult their tax advisors for specific tax implications regarding these distributions.
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