Sunstone Hotel Investors, Inc. (SHO) Earnings Call Transcripts

Sunstone Hotel Investors, Inc.'s Latest Earnings Call - Q1 FY2026

In the first quarter of 2026, Sunstone Hotel Investors, Inc. (SHO:US) reported strong performance, with total revenue growth driven by a 14.6% increase in RevPAR. Adjusted FFO per diluted share increased nearly 29% year-over-year to $0.27, exceeding expectations. Management raised full-year guidance for RevPAR growth to a range of 5% to 7.5%, reflecting optimism about continued demand and ancillary revenue growth, despite some weather-related challenges and cautious market conditions.

Reported metrics

Guidance from management

Management expects rooms RevPAR to increase between 5% and 7.5% for the full year, with total RevPAR projected in the same range. They noted, "The first quarter will be our strongest revenue growth quarter of the year."

What management said

Yes. And what I might add, I think Bryan hit certainly the broader point of what we have going on across the portfolio. I think on top of that, we have the added benefit of the repurchase activity that we've been doing. So we've been thoughtful in how we've allocated capital, both to our common stock and most recently to our preferred stock as well. So as we think about just the potential for not just EBITDA growth b...

Sure. We see additional equity capital coming into the markets and into increasing the number of deals out there and potential transactions, which is good and healthy for that market. Right now, you're seeing more luxury assets out there. And so I think that, that is -- given where the recovery has been and given where the demand and the productivity of those assets, there's a lot more on the luxury side. I guess tha...

What analysts pressed on

Analysts expressed concerns about the urban hotel performance and the potential impact of external factors on travel demand. There were questions regarding the sustainability of the strong out-of-room spending and how the World Cup might affect future bookings.

Main topics on the call

• RevPAR Growth — RevPAR increased 14.6% in Q1, with a notable contribution from Andaz Miami Beach, which added 890 basis points to the overall growth. Management stated, "This strong revenue performance... allowed us to generate meaningf...
• Earnings Performance — Adjusted EBITDAre reached $68 million, an 18% increase from the previous year, while adjusted FFO per diluted share rose to $0.27. Management noted, "Performance in the first quarter was meaningfully ahead of our expecta...
• Guidance Revision — Management raised full-year guidance for rooms RevPAR to a range of $236 to $242, reflecting a positive outlook for both group and transient demand. They stated, "We are comfortable revising our full year outlook higher ...
• Urban Hotel Challenges — Urban hotels faced a 9.3% decline in RevPAR due to tough comps from the previous year and weather-related disruptions. Management indicated that Q1 would be the toughest quarter for urban hotels, expecting sequential gro...

Read the full Sunstone Hotel Investors, Inc. transcript (Q1 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 27 Sunstone Hotel Investors, Inc. earnings call transcripts on record, spanning February 19, 2020 to May 5, 2026. Based on this history, Sunstone Hotel Investors, Inc. reports quarterly. The most recent call on file is dated May 5, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

SHO

Exchange

NYSE

Country

US

Sector

Real Estate

Industry

Hotel and Resort REITs

Calls on record

27

First call

February 19, 2020

Most recent

May 5, 2026

Reporting cadence

quarterly