Sunstone Hotel Investors (NYSE:SHO) Issues Quarterly Earnings Results

Sunstone Hotel Investors (NYSE:SHO) issued its earnings results on Friday. The real estate investment trust reported $0.20 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 business had revenue of $236.97 million during the quarter, compared to the consensus estimate of $226.18 million. During the same period in the prior year, the business posted $0.16 EPS. The company’s revenue for the quarter was up 10.3% on a year-over-year basis. 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 Price Performance

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

Analyst Ratings Changes

SHO has been the subject of a number of recent analyst reports. Zacks Research downgraded Sunstone Hotel Investors from a “hold” rating to a “strong sell” rating in a report on Wednesday, January 14th. Wells Fargo & Company upgraded shares of Sunstone Hotel Investors from an “equal weight” rating to an “overweight” rating and increased their price target for the company from $10.00 to $11.00 in a report on Monday, January 5th. Weiss Ratings reissued a “hold (c-)” rating on shares of Sunstone Hotel Investors in a report on Wednesday, January 21st. Robert W. Baird reaffirmed a “neutral” rating and issued a $10.00 target price on shares of Sunstone Hotel Investors in a report on Monday, January 12th. Finally, Wall Street Zen downgraded shares of Sunstone Hotel Investors from a “hold” rating to a “sell” rating in a research report on Sunday, November 16th. Three analysts have rated the stock with a Buy rating, four have issued a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $9.38.

Institutional Investors Weigh In On Sunstone Hotel Investors

A number of institutional investors and hedge funds have recently bought and sold shares of SHO. California State Teachers Retirement System raised its stake in shares of Sunstone Hotel Investors by 0.7% in the second quarter. California State Teachers Retirement System now owns 178,604 shares of the real estate investment trust’s stock valued at $1,550,000 after purchasing an additional 1,170 shares in the last quarter. AQR Capital Management LLC increased its holdings in Sunstone Hotel Investors by 1.6% in the 1st quarter. AQR Capital Management LLC now owns 83,864 shares of the real estate investment trust’s stock valued at $789,000 after buying an additional 1,307 shares during the period. Barclays PLC raised its stake in shares of Sunstone Hotel Investors by 0.7% in the 4th quarter. Barclays PLC now owns 308,643 shares of the real estate investment trust’s stock valued at $2,759,000 after buying an additional 2,011 shares in the last quarter. Daiwa Securities Group Inc. lifted its holdings in shares of Sunstone Hotel Investors by 3.0% during the 2nd quarter. Daiwa Securities Group Inc. now owns 70,517 shares of the real estate investment trust’s stock worth $612,000 after acquiring an additional 2,070 shares during the period. Finally, Creative Planning boosted its position in shares of Sunstone Hotel Investors by 11.9% during the 3rd quarter. Creative Planning now owns 19,882 shares of the real estate investment trust’s stock valued at $186,000 after acquiring an additional 2,108 shares in the last quarter. Hedge funds and other 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.