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Dec 31, 2019
Sunstone Q4 2019 Earnings Report
Sunstone's Q4 2019 operating results and earnings exceeded expectations, benefiting from continued investments in the portfolio.
Key Takeaways
Sunstone Hotel Investors reported better-than-expected fourth quarter and full year operating results and earnings in 2019, driven by continued investments in their portfolio. The company disposed of the leasehold interest in the Courtyard LAX for $50 million. Despite a challenging operating backdrop, fourth quarter comparable portfolio RevPAR increased 80 basis points over the prior year and comparable portfolio total revenues increased 2.1%.
Fourth quarter comparable portfolio RevPAR increased 80 basis points over the prior year.
Fourth quarter comparable portfolio total revenues increased 2.1%.
Full year RevPAR and total revenue growth reached 1.9% and 2.9%, respectively.
The company disposed of the leasehold interest in the Courtyard LAX for $50 million.
Forward Guidance
The company's baseline assumption for 2020 is that the operating environment will be similar to that witnessed in 2019, including tepid RevPAR and total hotel revenue growth.
Positive Outlook
- Healthy growth is anticipated in Key West.
- Markets with strong citywide calendars, including Boston, Chicago, and Washington DC, are expected to perform well.
- Recently completed renovations at the Renaissance Baltimore and Hilton San Diego Bayfront should result in RevPAR growth in excess of market levels.
- Wailea Beach Resort is expected to be one of the strongest performers in 2020.
- Group pace for the portfolio is up over 4%.
Challenges Ahead
- The majority of markets are anticipated to experience limited RevPAR growth in 2020.
- San Francisco is expected to have challenging year-over-year comparisons given its strong performance in 2019.
- Headwinds are expected to persist in New York due to elevated new supply.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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