Sunstone Hotel Investors reported third‑quarter 2025 revenue of $229.32 million, up 4.1% year‑over‑year and exceeding analysts’ consensus of $226.05 million by $3.27 million. The top‑line gain was driven by a 3.1% rise in room revenue and a 9.3% jump in food and beverage revenue, reflecting stronger demand in core markets and effective pricing strategies.
Net income fell to $1.3 million from $3.2 million a year earlier, a 59.3% decline. The drop was largely attributable to an $8.8 million loss on the sale of the Hilton New Orleans St. Charles and to higher operating expenses that offset the revenue growth.
Adjusted FFO attributable to common stockholders was $31.7 million, down 13.9% YoY, while adjusted EBITDA re declined 6.6% to $50.1 million. The erosion in profitability mirrors the impact of the hotel sale and the increase in operating costs.
Sunstone maintained its 2025 outlook, reaffirming guidance for total portfolio RevPAR growth of 3.0%–5.0% and adjusted EBITDA re of $226–$240 million. Management expressed confidence that the guidance remains realistic despite the headwinds noted in several large markets.
The company announced a quarterly dividend of $0.09 per share, payable January 15 2026, and highlighted ongoing capital recycling. A $1.35 billion credit facility was completed, and the company repurchased $2.3 million of shares during the quarter, underscoring its focus on liquidity and shareholder returns.
CEO Bryan A. Giglia said, “Our portfolio delivered earnings that were in‑line with our expectations despite ongoing headwinds in several of our larger markets. We were once again pleased with stronger performance in San Francisco, which helped to offset subdued government‑related demand and a more price‑sensitive leisure traveler in other parts of the portfolio.” Investors reacted cautiously, balancing the revenue beat with the net‑income decline and noting the company’s continued focus on capital recycling and market‑specific performance.
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