- Aprile 21, 2022
- Posted by: Oliver
- Categoria: Economics, Finance & accounting
Sunstone REIT engages in the acquisition, ownership, asset management, and renovation of hotels and resorts. It operates under the following brands: Marriott, Hilton, and Hyatt.
The company owns 14 hotels with 7,396 rooms spanning 635,000 square feet of meeting space. The SHO stock closed up 2% at $12.08 on April 19. Year to date, the stock has gained 1.9% and has lost 1.6% over the past year.
In its Q4 results, SHO missed revenue expectations but reported an FFO of $0.08 per share, higher than the year-ago period’s FFO loss of $0.16 per share. Notably, its Q4 RevPAR jumped 421.2% to $136.51 and its FY21 RevPAR leaped 121.4% to $105.43.
On March 17, SHO completed the sale of two of its Chicago hotels for an aggregate price of $129.5 million, or $178,000 per room, thereby exiting the Chicago market, which the management considers to be “hindered by excess supply and an inability to drive meaningful rate and profitability growth.” Furthermore, the company plans to invest the money in more profitable properties.
Moreover, the company also gave operating updates as of March 14, 2022, which showed that its Q1FY22 12 hotel comparable portfolio RevPAR stands at $134.14, which is 33.4% lower than 2019 levels. Additionally, the accelerated weekly transient booking activity expected in March and forward is nearing pre-pandemic levels, and Q2 RevPAR is expected to reach 80% of 2019 levels. The company even resumed its share buyback program, which has $464.9 million remaining. SHO is scheduled to report its Q1FY22 results on May 4, 2022.
Wall Street analysts have a Hold consensus rating on SHO stock based on one Buy, three Holds, and two Sells. The average Sunstone Hotel price forecast of $12.08 implies that shares are fully valued at current levels.
