Sunstone (SHO) Q1 2026 Earnings Call Transcript

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DATE

Tuesday, May 5, 2026 astatine 11 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Bryan Albert Giglia

• President/Chief Investment Officer — Robert C. Springer

• Chief Financial Officer/Executive Vice President — Aaron R. Reyes

Full Conference Call Transcript

Bryan Albert Giglia: Thank you, Aaron, and bully morning, everyone. We were pleased with our show successful the archetypal 4th which came successful up of our expectations adjacent with immoderate weather-related headwinds crossed a fistful of our markets. The spot was wide based, with continued coagulated radical results and transient show that was amended than anticipated. Overall, RevPAR successful the 4th grew an awesome 14.6%. Excluding Andaz Miami Beach, which continues to ramp nicely, RevPAR grew 5.7%. This beardown gross performance, combined with continued absorption connected outgo controls astatine the hotels and astatine the firm level, allowed america to make meaningful maturation successful earnings.

The added payment of our accretive repurchase enactment drove adjacent greater maturation successful net per share, with archetypal 4th adjusted FFO astir 29% higher than past year. Our resorts erstwhile again led the portfolio with combined comparable RevPAR maturation of implicit 18%. While the rebound astatine Wailea Beach Resort was expected, it has been impressive, wherever gross grew 14% successful the 4th adjacent with important cancellations from the 2 upwind events that impacted the Hawaiian Islands successful March. While we volition request to navigate immoderate repair enactment and disruption pursuing the storms, the outperformance successful January and February, and the trends that we are seeing for the remainder of the year, proceed to constituent to a sustained betterment successful Maui.

We were besides rather pleased with show astatine our vino state resorts, which turned successful a combined 34% maturation successful RevPAR driven by amended contributions from some radical and transient business. As we shared with you connected our past call, we were encouraged with however Andaz Miami Beach performed implicit the festive play and into the aboriginal weeks of this year. That inclination has continued, with results exceeding expectations successful the archetypal quarter. We are seeing further spot into April, with 2nd 4th benefiting from beardown transient and radical concern with large events similar the F1 contention past weekend, and the World Cup coming this summer.

During the archetypal quarter, the Andaz ran 86% occupancy astatine a $564 complaint and produced $6.5 cardinal of EBITDA. The comp acceptable ran a akin occupancy but astatine a complaint implicit $900 per night. Q1 was an implicit occurrence for the Andaz, and we are encouraged with however overmuch accidental we person to proceed to turn complaint person to its peers and physique connected our multiyear maturation story. We person had a coagulated commencement to the year, and we are good positioned to present connected our net expectations successful 2026, and we look guardant to the resort’s adjacent signifier of maturation into 2027 and beyond.