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Sep 30, 2024
Sunstone Q3 2024 Earnings Report
Sunstone's third quarter results were reported, showing a decrease in net income and adjusted EBITDAre, but urban and convention hotels performed well.
Key Takeaways
Sunstone Hotel Investors reported a net income of $3.2 million and an adjusted EBITDAre of $53.6 million for Q3 2024. Comparable RevPAR decreased by 1.3%, but when excluding The Confidante Miami Beach and Hilton San Diego Bayfront, RevPAR increased by 2.4%.
Net income was $3.2 million, down from $15.6 million in the same quarter of the previous year.
Comparable RevPAR decreased by 1.3% to $207.56.
Adjusted EBITDAre decreased by 15.9% to $53.6 million.
The company repurchased 2,329,574 shares of its common stock at an average price of $9.79 per share since the start of Q3 2024.
Sunstone
Sunstone
Sunstone Revenue by Geographic Location
Revenue by Geographic Location
Total Portfolio Revenue
CapyFin.com Forward Guidance
Sunstone provided updated full year 2024 guidance, impacted by labor activity at the Hilton San Diego Bayfront, severe weather in Florida, and a slower recovery in Maui.
Positive Outlook
- Full year interest income is expected to be approximately $12 million.
- Full year corporate overhead expense is expected to decrease by $0.5 million.
- The Confidante Miami Beach is expected to reopen as Andaz Miami Beach in February 2025.
- The resort is anticipated to generate a smaller EBITDAre loss of approximately $2 million to $3 million in 2024.
- Company remains well positioned to drive incremental earnings from recent brand conversions.
Challenges Ahead
- Labor activity at the Hilton San Diego Bayfront has led to incremental earnings disruption.
- Severe weather impacted the state of Florida.
- There was a slower than anticipated recovery in Maui.
- Total Portfolio RevPAR Growth is expected to be between -3.25% to -1.75%.
- Adjusted EBITDAre is expected to be between $220 million to $230 million.