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Dec 31, 2021
Sunstone Q4 2021 Earnings Report
Sunstone's financial performance improved significantly, driven by strong leisure demand and strategic asset management.
Key Takeaways
Sunstone Hotel Investors reported a net income of $138.3 million for Q4 2021, a substantial increase compared to the net loss of $39.4 million in Q4 2020. The company benefited from strong leisure demand and strategic asset management, including the sale of the Hyatt Centric Chicago Magnificent Mile.
Net income was $138.3 million, a significant improvement from the $39.4 million net loss in the same quarter of the previous year.
14 Hotel Portfolio RevPAR increased by 421.2% to $136.51.
Adjusted EBITDAre increased by 263.3% to $31.2 million.
The company sold the leasehold interest in the Hyatt Centric Chicago Magnificent Mile for $67.5 million.
Forward Guidance
Sunstone anticipates continued growth in 2022 and 2023, driven by increased business travel, stronger citywide convention calendars, and a solid foundation of group business.
Positive Outlook
- Increasing amount of business travel expected.
- Stronger 2022 citywide convention calendars anticipated.
- Solid foundation of group business already on the books.
- Conversion of the Renaissance Washington DC to a Westin will add value.
- Management team has achieved a lot during the Interim CEO's tenure.
Challenges Ahead
- Short-term impacts from the Omicron variant will persist during the first quarter.
- Hurricane Ida caused wind-driven damage, rain infiltration and water damage at the hotels.
- The company incurred restoration expense related to the JW Marriott New Orleans.
- The company incurred restoration expense related to the Hilton New Orleans St. Charles.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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