Sunstone Hotel Q1 FFO Hits $0.27, RevPAR Jumps 14.6% and Buybacks Reach $49M
Sunstone Hotel Investors posted Q1 FFO of $50.1M ($0.27/share), surpassing estimates of $0.22, and reported net income of $16M ($0.08/share) on $259.7M revenue. Portfolio RevPAR rose 14.6% to $255.04 with ADR up 8.1% at $344.19, and the company repurchased $49.2M of equity, leaving $458.3M available.
1. Q1 Financial Results
Sunstone generated funds from operations of $50.1M ($0.27/share) in Q1, topping analyst forecasts of $0.22. Net income attributable to common stockholders rose to $16M ($0.08/share) from $1.3M ($0.01/share) a year earlier, on $259.7M in revenue.
2. Operating Metrics
Total portfolio RevPAR climbed 14.6% year-over-year to $255.04, driven by an 8.1% increase in average daily rate to $344.19 and occupancy rising to 74.1%. Excluding Andaz Miami Beach, RevPAR grew 5.7%, while total RevPAR reached $411.28, up 13.4%.
3. Share Repurchase Activity
During Q1, Sunstone repurchased $36.4M of common and preferred stock and has bought back $49.2M year-to-date at an average price around $9.12. As of May 1, 2026, the company has $458.3M remaining under its current repurchase authorization.
4. Outlook and Guidance
Management raised full-year funds from operations guidance to a range of $0.88–$0.96 per share, citing broad-based portfolio strength and normalization in key markets despite weather-related headwinds in the quarter. The company remains focused on unlocking embedded value for shareholders.