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- **Revenue Resilience**: Q3 RevPAR growth 2.4% YoY, driven by San Francisco (15%) and convention hotels (3.5%).
- **Margin Expansion**: 140bps urban hotel margin improvement, 100bps at Marriott Boston to 47% EBITDA margin.
- **Andaz Miami Momentum**: Q4 transient bookings near 1,000/week, targeting $12-16M EBITDA in 2026.
- **Liquidity Strength**: $700M liquidity, no debt maturities until 2028, supporting $101M accretive share buybacks.
- **Group Growth**: 80% of 2026 rooms booked, with Q1 2026 group pace up 10% YoY.

**【CEO Opening Remarks】**
- Q3 revenue showed mixed trends: strength in San Francisco offset by softer demand in other regions. RevPAR growth was flat at urban hotels but 3.5% at convention hotels, with San Francisco leading at 15%.
- Margin improvements: 140bps at urban hotels, 100bps at Marriott Boston Long Wharf (47% EBITDA margin). Ancillary spend and cost control offset slower room revenue growth.
- Booking momentum: 6% YoY increase in rooms booked, strongest since pre-pandemic, with 2026 group pace strong in Orlando, Boston, Miami, and San Francisco.

**【CFO Financial Commentary】**
- Q3 adjusted EBITDA: $50M, FFO: $0.17 per share. Total RevPAR growth 2.4% YoY, with 2.3% for comparable portfolio. Margins held within 20bps of prior year despite cost pressures.
- Liquidity: $700M (including $200M cash). Debt maturity extended to 2028, reducing borrowing costs. Repurchased 14% of shares at $8.83 avg price, generating $101M in accretive buybacks.

**【President & CIO Update】**
- Capital investments: San Antonio meeting space renovation completed on budget; San Diego project to begin in phases. Andaz Miami Beach ranks #8 on TripAdvisor, with transient bookings near 1,000/week target.
- Transaction market: Quiet but showing signs of life. Management remains active in recycling assets, disposing $600M since 2022 while acquiring $600M in higher-growth properties.

**【CFO Detailed Financials】**
- Q4 outlook: Mid-single-digit RevPAR growth (400-500bps from Andaz Miami). EBITDA near midpoint of range due to out-of-room spend offsetting moderate room revenue growth.
- Risks: Government shutdown impacting demand, though Q4 group pace remains strong. Liquidity and balance sheet strength provide resilience.

**【Q&A Highlights】**
- **Transaction Market**: Cautious optimism for 2026. Smaller deals more active, but larger transactions constrained by capital availability. Management focused on recycling lower-growth assets.
- **Andaz Miami Beach**: Q1 2026 bookings strong, with EBITDA ramping to $12-16M in 2026. Transient occupancy at 70% in Q4, up from 60% in Q3.
- **Group Bookings**: 80% of 2026 rooms on the books, with Orlando, San Francisco, and Wine Country leading. Q1 2026 group pace up 10% YoY.
- **CapEx**: 2026 spend expected to normalize after 2025's elevated levels, focusing on cyclical renovations (e.g., meeting spaces).

Sunstone Hotel Investors, Inc. (SHO) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: Urban hotels led with RevPAR up 9%, San Francisco and Wine Country resorts exceeded expectations, offsetting D.C. and Wailea challenges.
- **Miami Headwinds**: Andaz Miami Beach trails 2025 EBITDA by $2-3M, but 2026 bookings exceed 3,800 room nights at $600+ rates.
- **Share Repurchases**: $300M repurchased since 2022, accreting 6% FFO annually.
- **Updated Outlook**: 2025 RevPAR 3-5%, EBITDA $226-240M, FFO $0.80-0.87, with Q4 driven by Miami and easier comps.
- **Wailea Recovery**: Transient bookings improve to 800-900/week, Q4 bookings supportive of growth.

**【CEO Summary Section】**
- **Portfolio Performance**: Urban hotels led with RevPAR growth of over 9%, driven by corporate and business travel. Key properties like Marriott Long Beach Downtown saw RevPAR increase of nearly 70% post-renovation. San Francisco and Wine Country resorts exceeded expectations, while Washington D.C. and Wailea faced government demand challenges.
- **New Orleans Sale**: Sold Hilton New Orleans St. Charles at a mid-8% cap rate, redeploying proceeds into $100M share repurchases. Total repurchases since 2022: $300M (14% of shares).
- **Andaz Miami Beach**: Opened late in Q2, trailing transient bookings (~200-300/week) but improving to 800-900/week. Group bookings for 2026 exceed 3,800 room nights at $600+ rates. EBITDA loss of $2-3M expected in Q3, with full-year impact as a slight headwind.
- **Updated Outlook**: Full-year RevPAR growth 3-5%, adjusted EBITDAre $226-240M, and adjusted FFO $0.80-0.87. Q3 expected to be flat to slightly positive, with Q4 driven by Miami and easier comps.

**【CFO Financial Commentary】**
- **Q2 Results**: Adjusted EBITDAre $73M, adjusted FFO $0.28/share. Total RevPAR growth 3.7%, outpacing RevPAR (2.2%) due to strong ancillary spend.
- **Balance Sheet**: Net leverage 3.5x trailing EBITDA, $145M cash, and $600M total liquidity. 2026 debt extension discussions ongoing.
- **Guidance Adjustments**: Moderated outlook reflects Wailea normalization, D.C. government demand weakness, and slower Miami ramp. Excluding Andaz, portfolio RevPAR growth 1-3%.

**【Q&A Highlights】**
- **Wailea Recovery**: Transient bookings ticked up in July-August, with index improving from 84 to 102. Occupancy inflection point reached, Q4 bookings supportive of growth.
- **Andaz Impact**: 2025 EBITDA loss of $2-3M in Q3, with 2026 targeting $6-8M. Group bookings and dining expansion (The Bazaar by José Andrés in 2026) drive long-term potential.
- **Capital Allocation**: Share repurchases accrete 6% FFO annually. Future transactions balanced against stock buybacks, with 2026 capex focused on meeting space renovations (San Diego, San Antonio).
- **San Francisco Growth**: In-house group and location proximity to tech hubs drive bookings. 2026 citywide calendar strong, positioning for multiyear recovery.


Sunstone Hotel Investors (SHO)-6 Aug 25-2025 Q2 Earnings call transcript

- **Q1 Outperformance**: EBITDA +14%, FFO +17% YoY, driven by Washington, D.C. and New Orleans recoveries.
- **Andaz Miami Beach**: $6-7M EBITDA contribution in Q4 2025, scaling to $20M+ by 2026.
- **2025 Growth**: 8% EBITDA and 10% FFO growth, despite 4-7% RevPAR guidance.
- **Capital Allocation**: $80-100M invested in portfolio upgrades, with Andaz Phase 2 launching Q3 2025.
- **Share Buybacks**: $21M repurchased YTD at 12%+ return, more to come if NAV discount persists.

**【CEO Opening Remarks】**
- Q1 EBITDA and FFO exceeded expectations, driven by strong out-of-room spend and cost controls. Key highlights:
  - Washington, D.C. RevPAR +24% due to inauguration demand.
  - New Orleans RevPAR +25% despite snowstorm disruptions.
  - San Francisco RevPAR +9% on improved commercial activity.
- New Andaz Miami Beach opened May 3, expected to contribute $6-7M EBITDA in Q4 2025, ramping to $20M+ by 2026.
- Full-year RevPAR growth revised to 4-7%, with 8% EBITDA and 10% FFO growth driven by portfolio investments.

**【CFO Financial Review】**
- Q1 adjusted EBITDA: $57M (vs. $50M prior year), adjusted FFO: $0.21/share (+17% YoY).
- Stock buybacks: $21M at $8.90/share, creating 12%+ annualized return.
- Balance sheet strength: $150M cash, $650M liquidity, 4.5x net leverage.
- 2025 outlook: EBITDA $235-260M, FFO $0.82-0.94/share.

**【CIO Capital Allocation】**
- $80-100M 2025 capital plan focused on:
  - Wailea Beach Resort rooms renovation and villa expansion.
  - San Antonio Hyatt meeting space reprogramming.
  - Hilton Bayfront meeting space upgrade.
- Andaz Miami Beach Phase 2: Olazul beach club and Bazaar by Jose Andres to launch Q3 2025.

**【Q&A Key Takeaways】**
- **Andaz Miami Beach**: Q4 2025 EBITDA $6-7M, full-year 2026 target $20M+.
- **Wailea Challenges**: Kaanapali reopening causing rate compression, but 20%+ group pace growth in Q1 suggests recovery.
- **San Diego Softness**: Transient demand weakness in Q1, but Q2 outlook improving post-labor strike.
- **Share Buybacks**: 2025 plan assumes no additional repurchases, but management sees strong case for continued buybacks at current NAV discount.


Sunstone Hotel Investors (SHO)-6 May 25-2025 Q1 Earnings call transcript

- **2024 Strategic Wins**: Achieved top-line guidance with $230M EBITDA and $0.80 FFO, recycling $222M into high-yield assets.
- **2025 Growth Engine**: 7-10% RevPAR growth (midpoint +8.5%), driven by Andaz Miami Beach (+4pts) and San Diego recovery.
- **Liquidity Strength**: $700M total liquidity, net debt/EBITDA 4.3x, enabling opportunistic buybacks and acquisitions.
- **Cost Management**: 4-4.5% expense growth in 2025, offset by efficiency gains and ancillary revenue growth.

**【CEO Opening Remarks】**
- **2024 Strategic Success**: Achieved high-end guidance for adjusted EBITDA ($230M) and FFO per share ($0.80), driven by capital recycling, portfolio investment, and shareholder returns.
- **Capital Recycling**: Sold Boston Park Plaza for $222M (9% cap rate) and invested in Hyatt Regency San Antonio, with plans to enhance meeting spaces and retail spaces near the new Alamo Visitor Center Museum.
- **Portfolio Growth**: Converted Marriott Long Beach Downtown (RevPAR +45% Q4/23) and Andaz Miami Beach (set to open mid-March 2025), targeting 7-10% RevPAR growth in 2025.
- **Shareholder Returns**: Returned $100M in 2024 via dividends and buybacks, with $190M repurchased over 3 years (9% of shares outstanding).

**【CFO Financial Summary】**
- **Q4 Results**: EBITDA $57M, FFO $0.20/share, ahead of expectations due to ancillary revenue and cost management.
- **2025 Outlook**: 
  - **RevPAR Growth**: 7-10% (midpoint 8.5%), driven by Andaz Miami Beach (+4pts) and easier comps in San Diego post-labor strike.
  - **EBITDA Range**: $245M-$270M (midpoint +12%), FFO $0.86-$0.98 (midpoint +15%).
  - **Liquidity**: $180M cash, $700M total liquidity, net debt/EBITDA 4.3x (expected 3.9x by year-end).
- **Expense Growth**: 4-4.5% in 2025, driven by wage increases but offset by efficiency gains.

**【Q&A Highlights】**
- **Andaz Miami Beach**: Expected $8-9M EBITDA in 2025, ramping to $18-20M in 2026 and stabilizing at $25M+ by 2027.
- **Maui Recovery**: Group pace up 10%, leisure recovery gradual with potential upside from new park openings.
- **Wage Costs**: 2025 wage increases front-loaded (mid-4% to low-5%), moderating in 2026-2027.
- **Portfolio Strategy**: Open to recycling assets, with focus on high-yield, value-add opportunities (e.g., San Antonio Hyatt).

Sunstone Hotel Investors (SHO)-21 Feb 25-2024 Q4 Earnings call transcript

Sunstone Hotel Investors (SHO)-12 Nov 24-2024 Q3 Earnings call transcript

Sunstone Hotel Investors (SHO)-7 Aug 24-2024 Q2 Earnings call transcript

Sunstone Hotel Investors (SHO)-6 May 24-2024 Q1 Earnings call transcript

Sunstone Hotel Investors (SHO)-23 Feb 24-2023 Q4 Earnings call transcript

Sunstone Hotel Investors (SHO)-7 Nov 23-2023 Q3 Earnings call transcript

Sunstone Hotel Investors (SHO)-4 Aug 23-2023 Q2 Earnings call transcript

Sunstone Hotel Investors (SHO)-5 May 23-2023 Q1 Earnings call transcript

Sunstone Hotel Investors (SHO)-22 Feb 23-2022 Q4 Earnings call transcript

Sunstone Hotel Investors (SHO)-8 Nov 22-2022 Q3 Earnings call transcript

Sunstone Hotel Investors (SHO)-4 Aug 22-2022 Q2 Earnings call transcript

Sunstone Hotel Investors (SHO)-8 May 22-2022 Q1 Earnings call transcript

Sunstone Hotel Investors (SHO)-23 Feb 22-2021 Q4 Earnings call transcript

Sunstone Hotel Investors (SHO)-5 Nov 21-2021 Q3 Earnings call transcript

Sunstone Hotel Investors (SHO)-7 Aug 21-2021 Q2 Earnings call transcript

Sunstone Hotel Investors (SHO)-9 May 21-2021 Q1 Earnings call transcript

Sunstone Hotel Investors (SHO)-13 Feb 21-2020 Q4 Earnings call transcript

Sunstone Hotel Investors (SHO)-6 Nov 20-2020 Q3 Earnings call transcript

Sunstone Hotel Investors (SHO)-4 Aug 20-2020 Q2 Earnings call transcript

Sunstone Hotel Investors (SHO)-8 May 20-2020 Q1 Earnings call transcript

Sunstone Hotel Investors (SHO)-19 Feb 20-2019 Q4 Earnings call transcript

Sunstone Hotel Investors (SHO)-9 Nov 19-2019 Q3 Earnings call transcript

Sunstone Hotel Investors (SHO)-2 Aug 19-2019 Q2 Earnings call transcript

Sunstone Hotel Investors (SHO)-11 May 19-2019 Q1 Earnings call transcript

Sunstone Hotel Investors (SHO)-14 Feb 19-2018 Q4 Earnings call transcript

Sunstone Hotel Investors (SHO)-5 Nov 18-2018 Q3 Earnings call transcript

Sunstone Hotel Investors (SHO)-31 Jul 18-2018 Q2 Earnings call transcript

Sunstone Hotel Investors (SHO)-8 May 18-2018 Q1 Earnings call transcript

Sunstone Hotel Investors (SHO)-13 Feb 18-2017 Q4 Earnings call transcript

Sunstone Hotel Investors (SHO)-31 Oct 17-2017 Q3 Earnings call transcript

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