ALISO VIEJO, Calif., Feb. 22, 2016 — Sunstone Hotel Investors, Inc. (the "Company" or "Sunstone") (NYSE: SHO) today announced results for the fourth quarter and full year ended December 31, 2015.
Fourth Quarter 2015 Operational Results (as compared to Fourth Quarter 2014):
- Comparable Hotel RevPAR, including adoption of the industry's Uniform System of Accounts for the Lodging Industry, Eleventh Revised Edition ("USALI Eleventh Revised Edition"), which became effective January 1, 2015, increased 4.1% to $152.40.
- Comparable Hotel Adjusted EBITDA Margin, including adoption of the USALI Eleventh Revised Edition and excluding prior year property taxes, net increased 120 basis points to 29.4%.
- Adjusted EBITDA increased 4.6% to $81.1 million.
- Adjusted FFO attributable to common stockholders per diluted share increased 11.1% to $0.30.
- Income attributable to common stockholders, which includes a gain of $214.5 million recognized on the Company's sale of its interests in the Doubletree Guest Suites Times Square, increased 2,034.2% to $233.8 million.
- Income attributable to common stockholders per diluted share increased 2,140.0% to $1.12.
Full Year 2015 Operational Results (as compared to Full Year 2014):
- Comparable Hotel RevPAR, including adoption of the USALI Eleventh Revised Edition, increased 5.9% to $162.42.
- Comparable Hotel Adjusted EBITDA Margin, including adoption of the USALI Eleventh Revised Edition and excluding prior year property taxes, net increased 120 basis points to 30.8%.
- Adjusted EBITDA increased 12.4% to $351.3 million.
- Adjusted FFO attributable to common stockholders per diluted share increased 12.0% to $1.31.
- Income attributable to common stockholders, which includes gains of $226.2 million recognized on the Company's sales of its interests in the Doubletree Guest Suites Times Square as well as BuyEfficient, increased 369.5% to $338.2 million.
- Income attributable to common stockholders per diluted share increased 337.8% to $1.62.
John Arabia, President and Chief Executive Officer, stated, "During the fourth quarter, our portfolio continued to meet or exceed our expectations, benefiting from robust group business and out-of-room group spend. Group food and beverage and ancillary revenue spend increased throughout the year, driving profitability. Additionally, we enhanced our already strong growth prospects, balance sheet and liquidity with the sale of the leasehold interest of the Doubletree Guest Suites Times Square, which we sold in December for nearly $1.2 million per key. Looking forward to 2016, there is considerable uncertainty and various headwinds in the broad economy that may negatively impact lodging demand. While our hotel-specific indicators, such as group booking pace and group night production remain robust, these headwinds warrant more conservative than normal forecasting, and increase the risk of falling short of our earnings guidance. The economy and general hotel demand are factors out of our control. However, the factors within our control, such as having one of the lowest levered balance sheets in the REIT industry and being positioned to deliver strong earnings growth through our various hotel repositionings, give us confidence that we are well positioned to take advantage of nearly any economic situation that comes our way."
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