Sunstone Hotel reports Q3 adjusted FFO 23c, consensus 20c

Reports Q3 revenue $247.7M, consensus $240.32M. CEO Bryan Giglia stated, “Overall, we are pleased with our results in Q3 as we delivered earnings above the high-end of our guidance range despite having to navigate disruption from the tragic fires on Maui. We remain grateful for the dedication of the hotel associates at Wailea Beach Resort who have worked tirelessly to care for guests and members of the community in the weeks since the fires. While leisure demand continued to moderate during the quarter, our portfolio of well-located urban and convention assets turned in a strong performance. Our operators diligently managed costs, which contributed to better than expected profitability even as leisure travel patterns normalized. Shortly after the end of the quarter, we closed on the sale of Boston Park Plaza for an attractive all-cash price of $370M. Boston Park Plaza has been a successful allocation of capital for Sunstone as we executed on our business plan, meaningfully grew the hotel’s earnings and are now exiting the investment to redeploy the proceeds into higher growth opportunities.”