Sunstone Hotel Investors Reports Strong Performance and Shareholder Returns Despite Market Challenges

## Sunstone Hotel Investors Demonstrates Robust Performance Amid Market Challenges

Sunstone Hotel Investors, Inc. (NYSE: SHO) reports notable financial results for the fourth quarter and full year 2025, showcasing impressive resilience despite broader market uncertainties. The company announces a return of over $170 million to common stockholders through dividends and share repurchases, reflecting a strong commitment to shareholder value. In the fourth quarter, Sunstone achieves a net income of $7.2 million—an increase from just $0.8 million in the same period last year—while Total Portfolio Revenue Per Available Room (RevPAR) rises by 9.6% to reach $220.12, demonstrating effective management of both operational performance and market demand.

The growth in revenue is attributed to an average daily rate of $319.01 and an occupancy rate of 69.0%. For the full year, while net income decreases to $24.6 million compared to $43.3 million in 2024, this drop is influenced by a loss related to the sale of the Hilton New Orleans. Excluding that impact, the income would be substantially higher at $33.3 million. Furthermore, Total Portfolio RevPAR increases by 3.8% to $225.12, showcasing the company's ability to adapt to market conditions while maintaining occupancy at 71.0%. Adjusted EBITDAre for the year also demonstrates stability, rising by 3.0% to a total of $236.6 million, with Adjusted Funds from Operations (FFO) per diluted share increasing by 7.5% to $0.86.

CEO Bryan A. Giglia emphasizes the company's strong operational performance, particularly during the festive season, with standout results at the Andaz Miami Beach and Wailea Beach Resort. Looking forward, Sunstone expresses cautious optimism regarding macroeconomic conditions, focusing on a strategy of capital recycling and continued investment in its portfolio. The company's reinstatement of a $500 million share repurchase authorization signals its commitment to enhancing shareholder returns. Sunstone's efforts to navigate through economic uncertainties while investing in growth positions it favorably within the competitive hospitality sector.

In addition to the positive earnings report, Sunstone remains alert to ongoing challenges in the market landscape, such as inflation and supply chain disruptions. The focus on shareholder returns through repurchases and dividends demonstrates the company's prioritization of long-term value creation amid fluctuating market dynamics. This strategic shift, combined with its strong operational performance, places Sunstone Hotel Investors in a solid position as it aims to sustain growth while addressing the complexities of today’s economy.