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Jun 30, 2025
Sunstone Q2 2025 Earnings Report
Sunstone Hotel Investors, Inc. reported its second quarter 2025 earnings, with a decrease in net income and diluted EPS compared to the prior year, while RevPAR saw a modest increase.
Key Takeaways
Sunstone Hotel Investors experienced a decline in net income and EPS in the second quarter of 2025 compared to the same period last year, primarily due to a loss on asset sale. Despite this, the company saw a slight increase in RevPAR and continued its share repurchase program, demonstrating a focus on capital recycling and shareholder value.
Net income for Q2 2025 decreased by 58.8% to $10.8 million, down from $26.1 million in Q2 2024, largely impacted by an $8.8 million loss on the sale of assets.
Diluted EPS fell significantly by 72.7% to $0.03 in Q2 2025, compared to $0.11 in Q2 2024.
RevPAR for the total portfolio increased by 2.2% to $241.22 in Q2 2025, up from $235.97 in Q2 2024, driven by solid corporate group and business travel demand.
The company repurchased 10,301,090 shares of its common stock for $90.2 million during the second quarter, as part of its capital recycling strategy.
Revenue by Geographic Location
Forward Guidance
Sunstone Hotel Investors has updated its full-year 2025 outlook, anticipating lower net income and RevPAR growth compared to previous guidance, primarily due to softer leisure demand and specific market headwinds.
Positive Outlook
- Recent booking trends at Wailea Beach Resort are encouraging, suggesting market recovery and recapturing of market share in Maui.
- Guest response to Andaz Miami Beach has been strong, with recent weekly bookings accelerating meaningfully, aligning with expectations for solid growth into 2026.
- The company expects to continue paying a quarterly cash common dividend throughout 2025.
- The company has $327.5 million remaining under its existing stock repurchase program authorization, indicating potential for further accretive capital deployment.
- The company continues to look for ways to unlock embedded growth potential in its portfolio and generate shareholder value.
Challenges Ahead
- Net income guidance for full year 2025 has been lowered to a range of $14 million to $28 million, down from the prior guidance of $33 million to $58 million.
- Total Portfolio RevPAR Growth guidance has been reduced to +3.0% to +5.0%, from the prior +4.0% to +7.0%.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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