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Sunstone Hotel Investors, Inc.

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Sunstone Hotel Investors, Inc. • NYSE
$9.36 ▼ -0.32% (-0.03)
Market Cap $1.78 B
52w High $12.41
52w Low $7.45
Dividend Yield 0.36%
P/E 468
Volume 1.10M
Outstanding Shares 189.90M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $229.323M ▼ $89.076M ▼ $1.322M ▼ 0.576% ▼ $0.007 ▼ $48.314M ▼
Q2-2025 $259.772M ▲ $100.12M ▲ $10.774M ▲ 4.147% ▲ $0.035 ▲ $57.161M ▲
Q1-2025 $234.065M ▲ $90.762M ▲ $5.255M ▲ 2.245% ▲ $0.01 ▲ $49.447M ▲
Q4-2024 $214.77M ▼ $87.362M ▼ $836K ▼ 0.389% ▼ $-0.02 ▼ $43.637M ▼
Q3-2024 $226.392M $157.893M $3.249M 1.435% $-0.004 $49.696M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $121.136M ▲ $3.049B ▲ $1.09B ▲ $1.96B ▼
Q2-2025 $73.555M ▲ $3.011B ▼ $1.031B ▲ $1.98B ▼
Q1-2025 $72.334M ▼ $3.097B ▼ $1.019B ▲ $2.078B ▼
Q4-2024 $107.199M ▼ $3.107B ▼ $1.003B ▲ $2.104B ▼
Q3-2024 $115.542M $3.117B $991.746M $2.125B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $1.322M ▼ $54.37M ▼ $-18.144M ▼ $16.422M ▲ $52.648M ▲ $36.719M ▼
Q2-2025 $10.774M ▲ $58.732M ▲ $22.52M ▲ $-85.125M ▼ $-3.873M ▲ $58.732M ▲
Q1-2025 $5.255M ▲ $32.031M ▲ $-28.116M ▲ $-35.398M ▼ $-31.483M ▼ $32.031M ▲
Q4-2024 $836K ▼ $30.493M ▼ $-47.021M ▼ $4.245M ▲ $-12.283M ▲ $30.493M ▼
Q3-2024 $3.249M $46.606M $-41.409M $-46.641M $-41.444M $46.606M

Revenue by Products

Product Q2-2024Q3-2024Q1-2025Q2-2025
Food and Beverage
Food and Beverage
 $70.00M ▲$60.00M ▼$70.00M ▲$80.00M ▲
Hotel Other
Hotel Other
 $0 ▲$0 ▲$20.00M ▲$30.00M ▲
Occupancy
Occupancy
 $0 ▲$0 ▲$140.00M ▲$160.00M ▲
Other operating
Other operating
 $20.00M ▲$20.00M ▲$0 ▼$0 ▲
Room
Room
 $150.00M ▲$140.00M ▼$0 ▼$0 ▲

Five-Year Company Overview

Income Statement

Income Statement Sunstone’s income statement shows a business that has largely recovered from the pandemic shock and then settled into a more normal, but somewhat choppy, pattern. Revenue has climbed back to healthy levels compared with 2020–2021, though it eased a bit most recently instead of continuing to climb. Profitability has improved substantially versus the pandemic years: operating profit, cash-style earnings, and net income are all comfortably positive now. However, the latest year is weaker than the prior year, suggesting that either costs are rising, demand is normalizing, or one‑time positives from earlier years (like asset sales or special gains) have faded. Overall, the company looks solidly profitable, but not on a straight upward trajectory, and results remain sensitive to travel and lodging cycles.

Balance Sheet

Balance Sheet The balance sheet looks relatively stable and conservative for a hotel REIT. Total assets and shareholder equity have been fairly steady over the last several years, indicating no dramatic expansion or contraction of the portfolio. Debt levels have not exploded higher and sit in a range that suggests manageable leverage rather than aggressive balance sheet risk. Cash balances, however, have moved around quite a bit, with an unusually strong cash position recently that has since come down, likely as the company deployed funds into projects, debt reduction, or shareholder returns. Overall, the financial foundation appears sound, with a sizeable equity base and moderate use of borrowing, but less of a cash cushion than at the peak.

Cash Flow

Cash Flow Cash flow has improved markedly since the pandemic low point. Operating cash flow has been consistently positive in recent years and broadly in line with earnings, which supports the quality of reported profits. Free cash flow has also been positive after the worst of the pandemic, helped by a period of lighter capital spending more recently. In the earlier recovery years, cash outlays for renovations and upgrades weighed more heavily on free cash flow, which is typical for a hotel owner refreshing its properties. The pattern suggests a business that can now fund its operations and reinvestment from internal cash, but with the understanding that future renovation waves or acquisitions could again make cash flows more uneven.

Competitive Edge

Competitive Edge Sunstone’s competitive position is built on asset quality and strategy rather than scale or technology. It focuses on owning upper‑upscale and luxury hotels in desirable urban and resort markets, where new supply is harder to build and demand is diversified across business, group, and leisure travelers. This creates some natural protection compared with more commoditized locations. The company’s “lifecycle” approach—buying good but improvable assets, investing heavily to reposition them, and then selling when value is maximized—gives it a distinct playbook versus REITs that simply buy and hold. Partnerships with major brands like Marriott, Hilton, Hyatt, and Four Seasons provide access to global reservation systems and loyalty programs without Sunstone having to run operations itself. The key risk is that this strategy depends on consistently timing acquisitions, renovations, and sales well in a cyclical and interest‑rate‑sensitive industry.

Innovation and R&D

Innovation and R&D Innovation at Sunstone is primarily strategic and capital‑allocation‑driven, not technology‑driven. The company’s “innovation” shows up in how it reimagines and repositions hotels—such as the full transformation of properties into higher‑tier brands—rather than in developing new tech products. It also leans into modernization and ESG‑related upgrades, including energy‑efficient systems and more sustainable operations, which can lower costs and sharpen the brand image over time. Upcoming projects like the Andaz Miami Beach ramp‑up and renovations at key resort and convention properties are central tests of its ability to create value through redesign and brand repositioning. There is limited traditional R&D, but a clear focus on refining the investment model, using partnerships (including with airlines), and tailoring properties to evolving travel patterns.

Summary

Sunstone Hotel Investors has transitioned from pandemic distress to a more stable, profitable footing, with solid hotels in attractive markets and a clear, repeatable investment strategy. Earnings and cash flows have recovered well, although the most recent year shows some cooling from the prior peak, underlining the cyclical nature of lodging and the impact of one‑time gains. The balance sheet is steady with moderate leverage and a substantial equity base, providing resilience, although cash reserves have normalized from prior highs. The company’s edge lies in owning and upgrading prime hotels under strong brands, then recycling capital through timely sales, rather than in technology or rapid expansion. Looking ahead, performance will hinge on the success of recent and upcoming repositioning projects, the health of travel demand, and management’s discipline in timing acquisitions, renovations, and dispositions within a volatile, rate‑sensitive hotel market.

NEWS

November 17, 2025 · 7:30 AM UTC

SUNSTONE HOTEL INVESTORS ANNOUNCES EXPANSION OF BOARD OF DIRECTORS

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November 7, 2025 · 7:30 AM UTC

SUNSTONE HOTEL INVESTORS REPORTS RESULTS FOR THIRD QUARTER 2025

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September 25, 2025 · 8:00 AM UTC

SUNSTONE HOTEL INVESTORS COMPLETES $1.35 BILLION AMENDED AND RESTATED CREDIT AGREEMENT

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September 19, 2025 · 8:00 AM UTC

SUNSTONE HOTEL INVESTORS SCHEDULES THIRD QUARTER 2025 EARNINGS RELEASE AND CONFERENCE CALL

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