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Jun 30
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.
Sunstone
Sunstone
Sunstone Revenue by Geographic Location
Revenue by Geographic Location
Total Portfolio Revenue
CapyFin.com 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%.
- Adjusted EBITDAre guidance has been lowered to $226 million to $240 million, from the prior $235 million to $260 million.
- Adjusted FFO Attributable to Common Stockholders guidance has been reduced to $156 million to $170 million, from the prior $165 million to $190 million.
- Weaker leisure demand in Maui, a slower near-term ramp at Andaz Miami Beach, and continued subdued government business in Washington, DC, are expected to pressure performance in the second half of the year.