Sunstone Hotel Investors (NYSE:SHO) capped fiscal 2025 with a stronger-than-expected fourth quarter, reporting net income of $7.2 million—a significant jump from the $0.8 million recorded in the same period last year.
The Aliso Viejo-based hotel REIT benefited from the successful ramp-up of the newly transformed Andaz Miami Beach and robust group booking demand at its Wailea Beach Resort in Hawaii.
The company's Total Portfolio RevPAR (Revenue Per Available Room), a critical industry metric, rose 9.6% year-over-year to $220.12.
This growth helped drive adjusted EBITDAre to $56.6 million for the quarter, while full-year adjusted FFO (Funds From Operations) per share reached $0.86, landing at the high end of previous management forecasts.
Throughout 2025, Sunstone remained aggressive in its capital allocation, returning more than $170 million to shareholders through a combination of dividends and the repurchase of $103.6 million in common and preferred stock.
Strengthening its long-term outlook, the Board of Directors reauthorized a $500 million share repurchase program and declared a quarterly dividend of $0.09 per share.
The company’s balance sheet remains a point of strength, ending the year with $185.7 million in cash and a total debt of $930 million against a hotel portfolio valued at $2.8 billion.
Management also highlighted the successful extension of its credit facility, pushing all major debt maturities out to 2028.
For 2026, Sunstone issued a positive guidance range, projecting RevPAR growth of 3.5% to 6.5% and adjusted FFO per share between $0.81 and $0.94.