Sunstone Hotel reports Q adjusted AFFO 28c, consensus 26c

Reports Q2 revenue $259.77M, consensus $256.19M. Total Portfolio RevPAR increased 2.2% to $241.22. The average daily rate was $323.35 and occupancy was 74.6%. Bryan A. Giglia, CEO stated, “Our portfolio performed in-line with expectations during the second quarter, with solid corporate group and business travel demand partially offsetting a more price sensitive leisure traveler and weaker government volume. Despite softer leisure demand and several market-specific headwinds, many parts of our premium portfolio performed well, driven by meaningful growth at our recently converted hotel in Long Beach, and better than expected performance in San Francisco and Wine Country. Given how demand patterns have evolved over recent weeks, we now expect that weaker leisure demand in Maui, a slower near-term ramp at Andaz Miami Beach and continued subdued government business in Washington, DC, will further pressure our performance in the second half of the year. Recent booking trends at Wailea Beach Resort have been encouraging and give us reason to be optimistic that the Maui market is recovering and our resort is recapturing market share, but we felt it was appropriate to allow for more variability in the outlook for the balance of the year. While Andaz Miami Beach opened later than expected and after the high-demand season, resulting in a slower than anticipated initial ramp up, the guest response has been strong, and recent weekly bookings have accelerated meaningfully and are pacing at the levels necessary to allow the resort to realign with our expectations and deliver solid growth as we move into 2026.”