Sunstone Q1 2023 Earnings Report
Key Takeaways
Sunstone Hotel Investors reported a net income of $21.1 million for the first quarter of 2023, compared to $15.1 million in the same period of 2022. Comparable RevPAR increased by 32.0% to $218.82, and Adjusted EBITDAre increased by 121.0% to $60.0 million. The company also repurchased $21 million of its common stock and refinanced its 2023 debt maturity.
Net income increased to $21.1 million, compared to $15.1 million in the first quarter of 2022.
Comparable RevPAR increased by 32.0% to $218.82.
Adjusted EBITDAre increased by 121.0% to $60.0 million.
The company refinanced the mortgage secured by the Hilton San Diego Bayfront with a new $225 million unsecured term loan.
Sunstone
Sunstone
Forward Guidance
For the second quarter of 2023, Sunstone Hotel Investors expects a net income between $29 million and $35 million, a total portfolio RevPAR growth of +6.5% to +8.5% compared to the second quarter of 2022, and an Adjusted EBITDAre between $79 million and $84 million.
Positive Outlook
- Net income is expected to be between $29 million and $35 million.
- Total portfolio RevPAR growth is projected to be between +6.5% and +8.5% compared to Q2 2022.
- Adjusted EBITDAre is anticipated to be between $79 million and $84 million.
- Adjusted FFO attributable to common stockholders is projected to be between $61 million and $66 million.
- Adjusted FFO attributable to common stockholders per diluted share is expected to be between $0.29 and $0.32.
Challenges Ahead
- Full year total Adjusted EBITDAre displacement of approximately $13 million to $15 million in connection with planned capital investments.
- Full year corporate overhead expense (excluding deferred stock amortization) of approximately $22 million to $23 million.
- Full year interest expense of approximately $52 million to $54 million, including approximately $2 million in amortization of deferred financing costs and approximately $2 million of noncash interest on derivatives.
- Full year preferred stock dividends of approximately $15 million, which includes the Series G, H and I cumulative redeemable preferred stock.
- Guidance is based in part on full year assumptions, which may be subject to change.