Sunstone Hotel Investors (NYSE:SHO) Issues Earnings Results

Sunstone Hotel Investors (NYSE:SHO) released its quarterly earnings data on Friday. The real estate investment trust reported $0.20 earnings per share for the quarter, beating the consensus estimate of $0.18 by $0.02, Briefing.com reports. Sunstone Hotel Investors had a return on equity of 1.04% and a net margin of 1.94%.The company had revenue of $236.97 million for the quarter, compared to analyst estimates of $226.18 million. During the same period in the prior year, the company posted $0.16 EPS. The company’s revenue was up 10.3% compared to the same quarter last year. Sunstone Hotel Investors updated its FY 2026 guidance to 0.810-0.940 EPS.

Here are the key takeaways from Sunstone Hotel Investors’ conference call:

• Q4 results beat expectations with total RevPAR up 7.4% (12.5% including Andaz Miami Beach), led by resorts (Wailea) and a strong Andaz launch carrying momentum into 2026.
• 2026 guidance calls for rooms RevPAR +4–7% (to $234–$241), total RevPAR +3.5–6.5% (to $385–$396), Adjusted EBITDAre of $225–$250M, and FFO/share of $0.81–$0.94, with Q1 weighted ~25% due to Andaz.
• Strong capital returns and balance sheet: management returned >$170M in 2025, repurchased ~$108M common stock (avg $8.83), reauthorized up to $500M buybacks, declared a $0.09 Q1 dividend, and holds pro forma liquidity >$700M with net leverage ~3.5x.
• Capital recycling and portfolio investment remain a focus—Sunstone is pursuing disciplined dispositions where private-market values justify it while investing in renovations (Andaz, Wailea, San Diego, San Antonio) to drive long-term NAV and earnings.
• Cost management outperformed expectations in 2025 with comparable margin expansion of ~40 bps; company expects comparable expense growth near ~3% (overall ~5% including Andaz) and plans to defend margins in 2026.

Sunstone Hotel Investors Trading Down 4.1%

SHO stock traded down $0.40 during trading on Friday, hitting $9.27. The company had a trading volume of 3,069,176 shares, compared to its average volume of 2,125,758. The firm has a 50-day moving average price of $9.15 and a 200-day moving average price of $9.24. Sunstone Hotel Investors has a 12 month low of $7.45 and a 12 month high of $10.66. The company has a quick ratio of 3.08, a current ratio of 3.08 and a debt-to-equity ratio of 0.55. The stock has a market cap of $1.76 billion, a price-to-earnings ratio of 11.43, a PEG ratio of 1.92 and a beta of 1.01.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on SHO. Zacks Research cut Sunstone Hotel Investors from a “hold” rating to a “strong sell” rating in a research report on Wednesday, January 14th. Wells Fargo & Company upgraded shares of Sunstone Hotel Investors from an “equal weight” rating to an “overweight” rating and boosted their target price for the company from $10.00 to $11.00 in a research note on Monday, January 5th. Wall Street Zen cut shares of Sunstone Hotel Investors from a “hold” rating to a “sell” rating in a research report on Sunday, November 16th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Sunstone Hotel Investors in a research note on Wednesday, January 21st. Finally, Robert W. Baird reiterated a “neutral” rating and issued a $10.00 target price on shares of Sunstone Hotel Investors in a research note on Monday, January 12th. Three investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average target price of $9.38.

Institutional Investors Weigh In On Sunstone Hotel Investors

A number of institutional investors and hedge funds have recently made changes to their positions in the company. Balyasny Asset Management L.P. bought a new position in Sunstone Hotel Investors in the second quarter valued at about $41,332,000. Woodline Partners LP bought a new stake in Sunstone Hotel Investors during the 3rd quarter worth about $44,295,000. Alyeska Investment Group L.P. lifted its position in Sunstone Hotel Investors by 86.8% during the 4th quarter. Alyeska Investment Group L.P. now owns 5,369,789 shares of the real estate investment trust’s stock valued at $48,006,000 after purchasing an additional 2,495,914 shares during the period. Goldman Sachs Group Inc. boosted its stake in shares of Sunstone Hotel Investors by 132.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 2,787,519 shares of the real estate investment trust’s stock valued at $26,231,000 after purchasing an additional 1,589,258 shares during the last quarter. Finally, Bank of America Corp DE grew its position in shares of Sunstone Hotel Investors by 13.6% during the 2nd quarter. Bank of America Corp DE now owns 7,240,157 shares of the real estate investment trust’s stock worth $62,845,000 after buying an additional 867,137 shares during the period. Institutional investors own 99.37% of the company’s stock.

Sunstone Hotel Investors Company Profile

Sunstone Hotel Investors, Inc (NYSE:SHO) is a publicly traded real estate investment trust (REIT) focused on acquiring, owning and asset‐managing upper‐upscale extended‐stay and premium‐branded hotel properties in the United States. The company’s business model centers on generating stable, long‐term cash flows through franchise agreements and third‐party management contracts with established hotel operators.

As of the most recent reporting period, Sunstone’s portfolio includes approximately 97 hotels and nearly 25,000 guest rooms across 19 states, with concentrations in major metropolitan and select high‐growth secondary markets.