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Dec 31, 2023
Sunstone Q4 2023 Earnings Report
Sunstone reported net income of $127.0 million and a comparable RevPAR decrease of 2.2% to $206.58 for Q4 2023.
Key Takeaways
Sunstone Hotel Investors reported a net income of $127.0 million for the fourth quarter of 2023, compared to $17.5 million in the same period of 2022. Comparable RevPAR decreased by 2.2% to $206.58. Adjusted EBITDAre decreased by 20.5% to $54.6 million, and adjusted FFO per diluted share decreased by 26.9% to $0.19.
Net income was $127.0 million, which includes a gain on the hotel sale.
Comparable RevPAR decreased 2.2% to $206.58.
Adjusted EBITDAre decreased 20.5% to $54.6 million.
Adjusted FFO per diluted share decreased 26.9% to $0.19.
Sunstone
Sunstone
Forward Guidance
For the full year 2024, Sunstone expects net income between $46 million and $71 million, total portfolio RevPAR growth between 2.5% and 5.5%, Adjusted EBITDAre between $230 million and $255 million, and Adjusted FFO per diluted share between $0.78 and $0.90.
Positive Outlook
- Total portfolio RevPAR growth between 2.5% and 5.5%.
- Total portfolio RevPAR growth, excluding The Confidante Miami Beach, between 5.0% and 8.0%.
- Adjusted EBITDAre between $230 million and $255 million.
- Adjusted FFO attributable to common stockholders between $159 million and $184 million.
- Adjusted FFO attributable to common stockholders per diluted share between $0.78 and $0.90.
Challenges Ahead
- Full year total Adjusted EBITDAre displacement of approximately $11 million to $13 million in connection with planned capital investments.
- Full year corporate overhead expense (excluding deferred stock amortization) of approximately $21 million to $22 million.
- Full year interest expense of approximately $52 million to $55 million, including approximately $3 million in amortization of deferred financing costs.
- Full year preferred stock dividends of approximately $15 million to $16 million, which includes the Series G, H and I cumulative redeemable preferred stock.
- The Confidante Miami Beach is expected to generate an EBITDAre loss of approximately $3 million to $5 million in 2024.