Sunstone Hotel Investors lifts 2026 outlook after RevPAR rises 11.4% in third quarter

Sunstone Hotel Investors raised its full-year 2026 outlook for a second time after third-quarter RevPAR across its 13-hotel portfolio rose 11.4% to $235.22, the lodging REIT said. Occupancy reached 72.7%, up 460 basis points, and average daily rate climbed 4.4% to $323.55. Excluding Andaz Miami Beach, which was renovated in 2025, RevPAR grew 10.3%.

Total RevPAR increased 10.5% to $394.97. Net income attributable to common stockholders was $38.7 million, against a loss of $2.9 million a year earlier. Adjusted EBITDAre rose 8.8% to $54.5 million and Adjusted FFO per diluted share gained 17.6% to $0.20. Hotel margin excluding Andaz Miami Beach improved 50 basis points to 26.7%; the company said it would have risen about 200 basis points without Hilton Key West Resort & Marina, under renovation in the quarter, and one-time items.

For the full year, Sunstone now expects RevPAR growth of 9.5% to 10.5%, up from 7.0% to 9.0%, and Adjusted EBITDAre of $254 million to $259 million. Andaz Miami Beach is expected to contribute about 450 basis points of that growth. Chief executive Bryan A. Giglia pointed to "robust group pace" and further recovery in some markets for next year.

On capital, the company repurchased $117.8 million of common and preferred stock in the quarter and $196.9 million so far this year, funded in part by asset sales, with $310.6 million left under its authorisation. It ended September with $817.9 million of liquidity, $955.0 million of debt at a weighted 5.22% and no maturities until January 2028. Portfolio investment for 2026 is expected at $105 million to $115 million, covering Hilton San Diego Bayfront meeting space, Hilton Key West and storm restoration at Wailea Beach Resort.