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Dec 31, 2022

Sunstone Q4 2022 Earnings Report

Sunstone's Q4 2022 results exceeded expectations due to growing corporate and group business and pandemic-related business interruption insurance proceeds.

Key Takeaways

Sunstone Hotel Investors reported net income of $17.5 million for the fourth quarter of 2022, with comparable portfolio RevPAR increasing by 34.2% to $193.59 and Adjusted EBITDAre increasing by 120.6% to $68.8 million.

Net income was $17.5 million, compared to $138.3 million in Q4 2021.

Comparable Portfolio RevPAR increased 34.2% to $193.59.

Total Portfolio RevPAR was $206.73.

Adjusted EBITDAre increased 120.6% to $68.8 million.

Total Revenue
$244M
Previous year: $174M
+40.6%
EPS
$0.26
Previous year: $0.08
+225.0%
RevPAR
193.59%
Previous year: 147.27%
+31.5%
Gross Profit
$127M
Previous year: $79.1M
+60.0%
Cash and Equivalents
$101M
Previous year: $120M
-16.0%
Total Assets
$3.08B
Previous year: $3.04B
+1.4%

Sunstone

Sunstone

Forward Guidance

For the first quarter of 2023, Sunstone expects net income between $3 million and $7 million, total portfolio RevPAR growth of 30% to 32%, Adjusted EBITDAre between $51 million and $55 million, and Adjusted FFO attributable to common stockholders per diluted share between $0.16 and $0.18.

Positive Outlook

  • Full year total Adjusted EBITDAre displacement of approximately $16 million to $18 million in connection with planned capital investments.
  • Full year corporate overhead expense (excluding deferred stock amortization) of approximately $22 million to $23 million.
  • Full year interest expense of approximately $52 million to $54 million, including approximately $2 million in amortization of deferred financing costs.
  • Full year preferred stock dividends of approximately $15 million, which includes the Series G, H and I cumulative redeemable preferred stock.
  • The Company’s Board of Directors reauthorized the Company’s stock repurchase program, which allows the Company to acquire up to $500.0 million of its common and preferred stock.