Overview

* Sunstone Q2 revenue beats analyst expectations, driven by 2.2% RevPAR growth

* Net income for Q2 falls due to Hilton New Orleans St. Charles sale loss

* Company repurchased $100 mln in shares, representing nearly 14% of shares outstanding

Outlook

* Sunstone expects 2025 net income between $14 mln and $28 mln

* Company revises 2025 RevPAR growth to 3%-5%

* Sunstone forecasts 2025 Adjusted EBITDAre of $226 mln to $240 mln

* Company anticipates 2025 Adjusted FFO per share of $0.80 to $0.87

Result Drivers

* REVPAR GROWTH - RevPAR increased 2.2% driven by strong performance in Long Beach, San Francisco, and Wine Country

* LEISURE DEMAND - Softer leisure demand and weaker government volume impacted overall performance

* SHARE REPURCHASES - $100 mln in shares repurchased, funded by Hilton New Orleans St. Charles sale, seen as better yield than hotel retention

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $259.77 $257.30

Revenue mln mln (8

Analysts

)

Q2 EPS $0.03

Q2 Net $10.80

Income mln

Q2 $55.70

Adjusted mln

FFO

Q2 $241.22

RevPAR

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the specialized reits peer group is "buy"

* Wall Street's median 12-month price target for Sunstone Hotel Investors Inc ( SHO ) is $10.00, about 12.3% above its August 5 closing price of $8.77

* The stock recently traded at 35 times the next 12-month earnings vs. a P/E of 44 three months ago

Press Release:

(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.)