Overview

• US lodging REIT's Q1 revenue rose 11% yr/yr, beating analyst expectations

• Adjusted FFO attributable to common stockholders per share increased 28.6% yr/yr

• Company repurchased $36.4 mln of common and preferred stock in Q1

Outlook

• Sunstone raises 2026 net income guidance to $34 mln-$48 mln from $21 mln-$46 mln

• Company lifts 2026 RevPAR growth outlook to 5.0%-7.5% from 4.0%-7.0%

• Sunstone expects 2026 Adjusted FFO per diluted share of $0.88-$0.96, up from $0.81-$0.94

Result Drivers

• RESORT PERFORMANCE - Co said resort portfolio, including Andaz Miami Beach, delivered solid Q1 results, helping drive overall growth

• PORTFOLIO GROWTH - Management said results reflect embedded growth potential from prior investments and continued normalization in larger markets

• WEATHER IMPACT - Co said weather-related headwinds affected several hotels but were offset by strength elsewhere in the portfolio

Company press release: ID:nPn2nNqGJa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$259.71 mln	$244.63 mln (8 Analysts)
Q1 Net Income		$18.60 mln
Q1 Adjusted FFO		$50.10 mln
Q1 RevPAR		$255.04

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

• Wall Street's median 12-month price target for Sunstone Hotel Investors Inc is $10.00, about 3% above its May 4 closing price of $9.71

• The stock recently traded at 40 times the next 12-month earnings vs. a P/E of 60 three months ago

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