Sunstone Hotel Investors Reports a Q1 2017 Net Income Increase of 5,148.9% to $63.8 Million Due to Gain on Sale of Fairmont Newport Beach
May 3, 2017 12:40pm
ALISO VIEJO, Calif., May 2, 2017 -- Sunstone Hotel Investors, Inc. (the "Company" or "Sunstone") (NYSE: SHO) today announced results for the first quarter ended March 31, 2017.
First Quarter 2017 Operational Results (as compared to First Quarter 2016):
John Arabia, President and Chief Executive Officer, stated, "In the first quarter, our portfolio generated strong revenue and profit growth that notably exceeded our expectations. Not only was demand and pricing stronger than anticipated in a large number of our hotels, but more importantly, our two recently repositioned hotels, the Boston Park Plaza and the Wailea Beach Resort, generated RevPAR and earnings gains that materially exceeded our forecasts. Furthermore, we have been pleasantly surprised that group attendance across our portfolio continues to materialize at the high-end of its historic norm, recent spend on group banquet and audio visual has been robust, and group production and pace for all future periods has accelerated. While increasing supply in a number of hotel markets and various geopolitical risks warrant conservatism and point to a wide range of potential outcomes for hotel revenue growth, first quarter trends have given us greater confidence in our near-term earnings prospects. As a result, we have increased our full-year 2017 earnings guidance."
UNAUDITED SELECTED STATISTICAL AND FINANCIAL DATA
($ in millions, except RevPAR, ADR and per share amounts)
Three Months Ended March 31,
Income (Loss) Attributable to Common Stockholders per Diluted Share
27 Hotel Portfolio RevPAR
27 Hotel Portfolio Occupancy
27 Hotel Portfolio ADR
27 Hotel Portfolio Adjusted EBITDA Margin
Adjusted FFO Attributable to Common Stockholders
Adjusted FFO Attributable to Common Stockholders per Diluted Share
Disclosures regarding the non-GAAP financial measures in this release are included on pages 4 through 6. Reconciliations of non-GAAP financial measures to the most comparable GAAP measure for each of the periods presented are included on pages 9 through 13 of this release. 27 Hotel Portfolio Adjusted EBITDA Margin excludes prior year property tax adjustments, net.
The Company's actual results for the quarter ended March 31, 2017 compare to its guidance originally provided as follows:
March 31, 2017
March 31, 2017
Net Income ($ millions)
$54 to $57
27 Hotel Portfolio RevPAR Growth
+ 2.5% to + 4.5%
Adjusted EBITDA ($ millions)
$61 to $64
Adjusted FFO Attributable to Common Stockholders ($ millions)
$43 to $46
$0.19 to $0.21
Diluted Weighted Average Shares Outstanding
Represents guidance presented on February 21, 2017.
Balance Sheet/Liquidity Update
As of March 31, 2017, the Company had $506.2 million of cash and cash equivalents, including restricted cash of $64.4 million.
As of March 31, 2017, the Company had total assets of $3.7 billion, including $3.1 billion of net investments in hotel properties, total consolidated debt of $1.0 billion and stockholders' equity of $2.5 billion.
The Company invested $29.9 million into capital improvements of its portfolio during the three months ended March 31, 2017. In 2017, the Company expects to invest approximately $125 million to $140 million into its portfolio, which includes the final payments for the Wailea Beach Resort repositioning completed at the end of 2016.
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q1 2017 financial results
Sunstone Hotel Investors, Inc. is a lodging real estate investment trust ("REIT") that as of May 2, 2017 has interests in 27 hotels comprised of 13,226 rooms. Sunstone's hotels are primarily in the urban and resort upper upscale segment and are operated under nationally recognized brands, such as Marriott, Hilton and Hyatt. For further information, please visit Sunstone's website at www.sunstonehotels.com.
Sunstone's mission is to create meaningful value for our stockholders by producing superior long-term returns through the ownership of long-term relevant lodging real estate. Our values include transparency, trust, ethical conduct, honest communication and discipline. As demand for lodging generally fluctuates with the overall economy, we seek to own hotels that will maintain a high appeal with travelers over long periods of time and will generate economic earnings materially in excess of recurring capital requirements.
Contact: Bryan Giglia
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