Sunstone Hotel Investors (SHO) Company presentation summary

Recent financial and operational highlights

• Achieved Q4 2025 Adjusted EBITDAre of $57 million (+18% YoY) and Adjusted FFO per share of $0.20 (+25% YoY), both exceeding expectations.

• Repurchased $108 million of common stock and $3 million of preferred stock at discounts; $500 million share repurchase program reauthorized.

• Opened Andaz Miami Beach in May 2025 after a full renovation, with strong performance and expected EBITDA growth in 2026 and 2027.

• Maintains strong liquidity with net debt & preferred equity to EBITDA at 4.7x and no debt maturities before 2028.

• Additional investment capacity for acquisitions or further share repurchases.

Portfolio and investment strategy

• Portfolio includes 14 hotels with 7,000 rooms, diversified across major convention, resort, and urban markets.

• Focused on investing in hotels with value-add potential, capital recycling, and returning capital to shareholders.

• Recent brand conversions, such as Marriott Long Beach Downtown, have driven significant RevPAR and EBITDA growth.

• Comprehensive repositioning of Andaz Miami Beach expected to deliver $28–$31 million annual EBITDA upon stabilization.

• Balanced capital allocation aims for sustained near- and long-term earnings growth.

Capital recycling and acquisitions

• Sold Boston Park Plaza for $370 million and redeployed $230 million into Hyatt Regency San Antonio Riverwalk, plus $80 million into share repurchases.

• Hyatt Regency San Antonio offers a 9% NOI yield and further earnings potential from property enhancements.

• Since 2022, completed $610 million in asset sales, $620 million in acquisitions, $500 million in capital investment, and $300 million in share repurchases.