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NEW YORK - Sunstone Hotel Investors Inc . (NYSE:SHO) reported first quarter results that missed revenue expectations on Tuesday.
Shares of Sunstone fell 4.43% in premarket trading following the revenue miss and reduced guidance.
The real estate investment trust focused on upscale hotels said revenue rose 7.8% year-over-year to $234.1 million, falling short of analyst estimates of $240.7 million. Adjusted earnings per share came in at $0.21, up from $0.18 a year ago.
Total (EPA:TTEF) portfolio RevPAR increased 2.2% to $221.63 compared to the first quarter of 2024. Excluding the Andaz Miami Beach, which underwent a major renovation, RevPAR rose 3.8%.
"Despite the elevated uncertainty that has crept into the operating environment since the start of the year, our premium portfolio delivered first quarter earnings that were slightly ahead of expectations even on softer revenue growth," said CEO Bryan A. Giglia.
The company opened the renovated Andaz Miami Beach on May 3rd following a "complete transformation" of the oceanfront property.
Sunstone lowered its full-year 2025 outlook, now expecting total portfolio RevPAR growth of 4-7%, down from previous guidance of 7-10% growth. It also reduced its adjusted FFO per share forecast to $0.82-$0.94, compared to $0.86-$0.98 previously.
The company repurchased 821,771 shares in Q1 at an average price of $9.74 per share.
"As the demand environment evolves, we are working with our operators to book new business and drive total revenue growth while focusing on costs," Giglia added.
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