Sunstone Hotel Investors reported a sharp year-over-year improvement in first-quarter 2026 results, led by stronger hotel revenue metrics and a larger profit.
Net income attributable to common stockholders rose to $16.0 million from $1.3 million a year earlier, a jump of 1,105.1%. Diluted earnings per share increased to $0.08 from $0.01.
Operating performance also improved across the portfolio. RevPAR for the 14-hotel portfolio climbed 14.6% to $255.04 from $222.46, while occupancy increased to 74.1% from 69.9%, a gain of 420 basis points. Average daily rate rose 8.1% to $344.19 from $318.26. Total RevPAR advanced 13.4% to $411.28 from $362.54.
Excluding Andaz Miami Beach, RevPAR increased 5.7% to $245.21 from $232.01, occupancy edged up to 73.6% from 72.9%, and average daily rate rose 4.7% to $333.16 from $318.26. Total RevPAR excluding the property increased 5.3% to $397.94 from $377.78.
Adjusted EBITDAre climbed 18.3% to $67.7 million from $57.3 million. Adjusted FFO attributable to common stockholders rose 20.8% to $50.1 million from $41.5 million, and per diluted share it increased 28.6% to $0.27 from $0.21. The hotel adjusted EBITDAre margin excluding Andaz Miami Beach improved to 27.1% from 25.7%, up 140 basis points.
Sunstone also stepped up share repurchases. During the first quarter, it bought back $36.4 million of common and preferred stock. From the start of the year through May 1, repurchases totaled $49.2 million. Common stock repurchases accounted for $29.1 million in the quarter, or 3,184,768 shares at an average price of $9.13. Through May 1, common repurchases reached 3,860,813 shares for $35.2 million at an average price of $9.11.
Preferred stock buybacks included 242,762 Series H shares for $5.0 million at $20.77 each and 122,333 Series I shares for $2.3 million at $18.58 each in the quarter. Through May 1, Series H repurchases totaled 345,493 shares for $7.2 million, and Series I repurchases totaled 363,082 shares for $6.9 million.
As of March 31, Sunstone held $166.7 million of cash and cash equivalents, including $75.5 million of restricted cash. Total assets were $3.0 billion, total debt was $955.0 million, and stockholders’ equity stood at $1.9 billion.
The company invested $31.0 million in its portfolio during the quarter and now expects 2026 capital spending of $95 million to $115 million.
Sunstone raised its full-year 2026 outlook. It now expects net income of $34 million to $48 million, up from prior guidance of $21 million to $46 million. Expected diluted EPS was lifted to $0.11 to $0.18 from $0.02 to $0.16. RevPAR growth guidance moved to 5.0% to 7.5% from 4.0% to 7.0%, and total RevPAR growth rose to 5.0% to 7.5% from 3.5% to 6.5%. Adjusted EBITDAre guidance increased to $238 million to $252 million from $225 million to $250 million, while adjusted FFO attributable to common stockholders was raised to $166 million to $180 million from $153 million to $178 million. Per-share adjusted FFO guidance moved up to $0.88 to $0.96 from $0.81 to $0.94. Diluted weighted average shares outstanding are now expected at 188 million, down from 190 million. As a result of these announcements, the company's shares have moved 2.42% on the market, and are now trading at a price of $9.945. For the full picture, make sure to review Sunstone Hotel Investors's 8-K report.
