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Sunstone Hotel Investors posts strong Q1 with RevPAR up 14.6%, raises full-year guidance.

Company Fundamentals
15 Jun 2026
Seeking Alpha
View Source
Bullish
pluang ai news

Sunstone Hotel Investors reported a strong first quarter in 2026, with revenue per available room (RevPAR) increasing by 14.6% year-over-year and adjusted funds from operations (FFO) rising 28.6%. Due to this strong performance, management raised its full-year 2026 guidance, now expecting adjusted FFO between $166 million and $180 million and RevPAR growth of 5.0% to 7.5%. The company's preferred shares offer attractive yields of 6.7% to 7.1%, trading at a discount, supported by a conservative loan-to-value ratio near 30% and solid dividend coverage. Despite sector and interest rate risks, the company’s strong balance sheet and opportunistic buybacks make its preferred shares appealing for accumulation on price weakness.

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