- Sunstone’s Q3 RevPAR rose 11.4% to $235.22 on 72.7% occupancy, and net income to common stockholders reached $38.7 million versus a $2.9 million loss a year earlier.
- The REIT raised full-year Adjusted FFO guidance to $184 million to $189 million, and has spent $196.9 million on buybacks this year, mostly funded by an asset sale.
- With no debt maturities until January 2028 and $817.9 million of liquidity, Sunstone is signaling that recovering group demand and selective capital recycling can lift per-share earnings.
Sunstone Hotel Investors raised its 2026 outlook after a strong third quarter, according to the company’s earnings release.
RevPAR across its 13 hotels rose 11.4% to $235.22, with occupancy at 72.7% and average daily rate of $323.55.
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By the Numbers
Net income to common stockholders was $38.7M, or 21 cents a share, against a $2.9M loss a year ago. Adjusted EBITDAre rose 8.8% to $54.5M, and Adjusted FFO per share rose 17.6% to 20 cents.
Total RevPAR, which counts non-room revenue, climbed 10.5% to $394.97. Hotel margins excluding Andaz Miami Beach rose 50 basis points to 26.7%, and would have risen about 200 basis points without the Hilton Key West renovation and one-time items.
Guidance Goes Up
Sunstone now expects 2026 Adjusted FFO of $184M to $189M, or $1.00 to $1.03 a share, up from $174M to $184M. RevPAR growth is forecast at 9.5% to 10.5%, versus 7% to 9% before.
CEO Bryan Giglia said the portfolio generated revenue and earnings that meaningfully exceeded expectations. He cited robust group pace for 2026 and further recovery in some markets.
Selling Assets, Buying Stock
Sunstone sold the Hyatt Regency San Francisco in July and has used proceeds to repurchase stock. It bought back $117.8M in Q3 and $196.9M year to date, including 13.7 million common shares at an average $10.43, with $310.6M left on its authorization.
Giglia said the buybacks at a discount raised Adjusted FFO and net asset value per share without changing leverage.
Balance Sheet
At Sept. 30 the REIT had $817.9M of liquidity and $955M of debt at a 5.22% weighted rate, with no maturities until January 2028. The board declared a 9-cent common dividend.
Why It Matters
Hotel owners are recycling capital, selling at private-market values and buying their own stock at a discount. The approach fits what we reported when hotel REIT activity climbed on better fundamentals, according to CoStar News, with Park Hotels exiting an Austin ground lease for a $6M fee.
What’s Next
Sunstone says trends for 2027 look encouraging, with strong group pace and added contribution from recent investments. Watch Q4 results against the higher guidance.
