Sunstone Hotel Investors Reports 763.3% Increase in Net Income

By Chris Stiles • Friday, February 27 12:11 • Permanent Link

Sunstone Hotel Investors, Inc. (NYSE: SHO) released its financial results for the fourth quarter and the full year ended December 31, 2025. The company reported substantial improvement in several key metrics compared to the same periods in 2024.

In the fourth quarter of 2025, the company reported a notable increase in net income to $7.2 million compared to $0.8 million in the same period in 2024, reflecting a significant 763.3% improvement. Total portfolio RevPAR (revenue per available room) increased by 9.6% to $220.12, with the average daily rate reaching $319.01 and occupancy at 69.0%. Adjusted EBITDARE (earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs) increased by 17.6% to $56.6 million. Adjusted FFO (funds from operations) attributable to common stockholders per diluted share also rose by 25.0% to $0.20.

For the full year 2025, net income improved to $24.6 million from $43.3 million in 2024. Excluding the loss on the sale of the Hilton New Orleans St. Charles in June 2025, net income for the full year 2025 would have been $33.3 million. Total portfolio RevPAR increased by 3.8% to $225.12, with an average daily rate of $317.07 and occupancy at 71.0%. Adjusted EBITDARE increased by 3.0% to $236.6 million, while adjusted FFO attributable to common stockholders per diluted share increased by 7.5% to $0.86.

The company also highlighted its financial activities, including returning over $170 million to shareholders in 2025 through share repurchases and dividends. The board of directors reauthorized the stock repurchase program, allowing the company to acquire up to $500.0 million of its common and preferred stock. Moreover, Sunstone reported that it had repurchased an aggregate amount of $103.6 million of its common and preferred stock in 2025.

The company's outlook for 2026 includes expectations of continued growth, with metrics such as net income, RevPAR growth, adjusted EBITDARE, and adjusted FFO all showing anticipated improvement compared to 2025.

Sunstone Hotel Investors, Inc. is optimistic about the future and remains committed to executing its strategy of recycling capital, investing in its portfolio, and returning capital to shareholders in 2026. The company also highlighted its corporate responsibility report, balance sheet, liquidity, and capital investments updates in the press release.

The full details of Sunstone Hotel Investors, Inc.'s financial performance, operational results, and outlook for 2026 can be found in the press release. Following these announcements, the company's shares moved -0.33%, and are now trading at a price of $9.14. For more information, read the company's full 8-K submission here.

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