Sunstone Hotel reports Q1 adjusted EPS 21c, consensus 18c

Reports Q1 revenue $234.06M, consensus $240.16M. Reports Q1 portfolio RevPARan increased 2.2% to $221.63. The average daily rate was $316.16 and occupancy was 70.1%. Excluding Andaz Miami Beach due to its transformational renovation, RevPAR increased 3.8%. Bryan Giglia, CEO, stated, “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. As the demand environment evolves, we are working with our operators to book new business and drive total revenue growth while focusing on costs. Our solid balance sheet and recently completed capital investments support the continued return of capital to our shareholders and position Sunstone to be opportunistic and successfully allocate capital in a range of operating environments. We have adjusted our full year outlook to reflect the recent volatility and its impact on operating trends. Forward visibility has become increasingly limited given the heightened uncertainty and greater variability in the range of possible economic outcomes for the year.”