IRVINE, CA - Sunstone Hotel Investors, Inc. (the 'Company' or 'Sunstone') (NYSE: SHO), the owner of Long Term Relevant Real Estate in the hospitality sector, today announced results for the second quarter ended June 30, 2021.
Second Quarter 2021 Operational Results (as compared to Second Quarter 2020): Net Loss: Net loss was $27.9 million as compared to $117.5 million.
17 Hotel Portfolio RevPAR: RevPAR at the comparable 17 hotels the Company owned during both 2021 and 2020 (the '17 Hotel Portfolio') increased 3,182.2% to $95.84. The average daily rate was $219.82 and occupancy was 43.6%.
All Open Hotel Portfolio RevPAR: RevPAR at the Open Hotels, which includes the 18 hotels the Company owned as of June 30, 2021 except the Renaissance Westchester and also includes prior ownership results for the Montage Healdsburg, was $107.36, comprised of an average daily rate of $235.43 and occupancy of 45.6%.
Adjusted EBITDAre: Adjusted EBITDAre, excluding noncontrolling interest increased 132.6% to $15.3 million.
Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share increased 96.8% to $(0.01).
Information regarding the non-GAAP financial measures disclosed in this release is provided below in 'Non-GAAP Financial Measures.' Reconciliations of non-GAAP financial measures to the most comparable GAAP measure for each of the periods presented are included later in this release.
John Arabia, President and Chief Executive Officer, stated, 'Second quarter results materially exceeded our expectations for both revenues and profitability. While leisure demand continues to be robust, business transient demand and group demand have witnessed sequential growth, and made meaningful contributions to our recent operating results and earnings. As a result of these factors, we achieved not only positive hotel EBITDA in the quarter but also positive corporate-level Adjusted EBITDAre profit every month during the second quarter - a full quarter earlier than we previously expected. It is clear that the operational decisions and investments made during the depths of the COVID-19 pandemic, as well as the portfolio transformation made over the past several years, are paying off and should result in outsized growth going forward. We expect continued growth for the remainder of the year, as business transient and group demand become a larger portion of our business mix.'
Mr. Arabia continued, 'During the second quarter, we completed the acquisition of the Montage Healdsburg, which in the first four months of ownership, has materially exceeded our underwriting expectations. We also recently refinanced two series of perpetual preferred stock - each at historic low dividend yields for a non-rated Hotel REIT at the time - and amended our unsecured debt covenant waivers to allow for greater investment and financing flexibility. These recent financing initiatives, coupled with our lowlevered balance sheet, provide us not only with an advantageous cost of capital relative to our peers, but also with ample investment capacity without having to rely on the equity markets. We expect to continue to enhance the overall quality of our portfolio through additional acquisitions of Long-Term Relevant Real Estate and through selective dispositions as value creation opportunities arise.'
See full release at: https://sunstonehotelinvestorsinc.gcs-web.com/static-files/e15b1b2b-4afb-48c3-8597-2fbb612c324d
SUNSTONE HOTEL INVESTORS, INC. 
