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Mar 31, 2022
Sunstone Q1 2022 Earnings Report
Sunstone's first quarter results for 2022 were reported, with net income of $15.1 million and RevPAR for the 12 Hotel Portfolio increasing by 207.7%.
Key Takeaways
Sunstone Hotel Investors reported a positive first quarter in 2022 with a net income of $15.1 million, a significant increase compared to the net loss of $55.3 million in the same period last year. The company saw a substantial rise in RevPAR across its 12 and 14 hotel portfolios, driven by increases in both occupancy and average daily rate. Adjusted EBITDAre also showed a strong increase, reflecting improved operational performance. The company actively recycled capital through property sales and share repurchases.
Net income was $15.1 million, compared to a net loss of $55.3 million in the first quarter of 2021.
RevPAR for the 12 Hotel Portfolio increased by 207.7% to $148.65.
Adjusted EBITDAre increased 285.3% to $27.2 million.
The company sold three hotels for a combined gross sale price of $197.0 million and repurchased $48.4 million of common stock.
Forward Guidance
Sunstone anticipates continued growth in the second quarter, driven by strong demand at resorts and increasing business volumes at group-oriented and urban hotels. The company expects this trend to continue through 2022 and into 2023, with corporate business and group demand driving higher occupancy and ancillary spend. Sunstone also plans to continue recycling capital and growing its portfolio through strategic acquisitions, which positions the company to drive meaningful per share earnings and NAV growth.
Positive Outlook
- Anticipates that the second quarter will be another quarter of meaningful growth for our portfolio.
- Expects continued strong demand at resorts.
- Will benefit from increasing business volumes at group-oriented and urban hotels.
- Return of larger-scale group and corporate events driving higher occupancy and greater ancillary spend.
- Expects to continue to recycle capital and utilize a portion of our significant balance sheet capacity to grow our portfolio.
Challenges Ahead
- The COVID-19 pandemic continues to pose uncertainty.
- Increased risks related to employee matters, including increased employment litigation.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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