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Dec 31, 2024
Sunstone Q4 2024 Earnings Report
Sunstone reported a decline in net income and adjusted FFO compared to the previous year, citing lower RevPAR and operational challenges.
Key Takeaways
Sunstone Hotel Investors reported Q4 2024 net income of $0.8 million, significantly down from $127.0 million in Q4 2023. Revenue declined slightly to $214.77 million, while adjusted EBITDAre decreased 12% to $48.1 million. Adjusted FFO per diluted share fell 15.8% to $0.16, reflecting weaker industry fundamentals and operational challenges.
Net income fell to $0.8 million from $127.0 million in Q4 2023.
Revenue declined to $214.77 million, down from $219.23 million last year.
Adjusted EBITDAre decreased by 12% to $48.1 million.
Adjusted FFO per share declined 15.8% to $0.16.
Sunstone
Sunstone
Sunstone Revenue by Geographic Location
Revenue by Geographic Location
Total Portfolio Revenue
CapyFin.com Forward Guidance
Sunstone expects earnings in 2025 to benefit from recently completed hotel conversions and strategic investments.
Positive Outlook
- Expected earnings growth from Andaz Miami Beach debut in Q1 2025.
- Positive contribution from Marriott Long Beach Downtown after rebranding.
- Continued strong performance from The Westin Washington, DC Downtown.
- Expected revenue boost from asset management and investment initiatives.
- Stock repurchase program remains active with significant cash reserves.
Challenges Ahead
- Lower RevPAR growth projections due to ongoing industry headwinds.
- Potential impact of labor activity at key properties affecting performance.
- Increased costs from ongoing renovations and rebranding efforts.
- Macroeconomic uncertainty affecting corporate and group travel demand.
- Higher expected interest expense impacting bottom-line profitability.