Sunstone Hotel Investors (SHO) Tops Q4 EPS by 21c, Revenues Beat

Sunstone Hotel Investors (NYSE: SHO) reported Q4 EPS of $0.32, $0.21 better than the analyst estimate of $0.11. Revenue for the quarter came in at $280.85 million versus the consensus estimate of $276.73 million.

John Arabia, President and Chief Executive Officer, stated, "2018 marked a successful year for Sunstone as we increased our ownership of Long-Term Relevant Real Estate® through the selective disposition of six non-core hotels, the acquisition of both the land underlying the JW Marriott New Orleans and the perpetual rights to leased spaces at the Renaissance Washington DC, and through $150 million of capital investment throughout our portfolio. These capital investments, which are expected to drive growth in 2019 and beyond, include full renovations of the Marriott Boston Long Wharf and JW Marriott New Orleans and the completed development of a brand new, 46,000 square foot meeting facility at the Renaissance Orlando at SeaWorld®. Additionally, our portfolio of Long-Term Relevant Real Estate® outperformed our expectations, resulting in RevPAR and profitability significantly above the high-end of our prior guidance range. This better-than-expected operating performance benefited from strong fourth quarter room rate growth, combined with solid growth in food and beverage and other revenues."

Mr. Arabia continued, "In the past several years we have not only improved our portfolio but also built up significant financial optionality and capacity that represents meaningful earnings accretion once our excess capital is deployed. Over time, we expect to gradually divest of our few remaining non-core assets while recycling sales proceeds and our significant existing financial capacity into Long-Term Relevant Real Estate® as attractive opportunities arise."

For earnings history and earnings-related data on Sunstone Hotel Investors (SHO) click here.

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