SHO · Sunstone Hotel Investors, Inc.

Sunstone Hotel Investors delivered a robust first quarter in 2026, significantly outperforming the prior year period. Adjusted EBITDAre rose 18.3% to $67.7 million, while Adjusted FFO per diluted share climbed 28.6% to $0.27. The performance was driven by a 14.6% increase in RevPAR to $255.04, supported by an 8.1% rise in Average Daily Rate (ADR) and a 420 basis point improvement in occupancy. Management noted that results exceeded expectations despite weather-related headwinds, with particular strength in the resort portfolio. The strong start to the year prompted management to raise full-year 2026 guidance; the midpoint for Adjusted FFO per share was increased by $0.05 to $0.92, and the Adjusted EBITDAre midpoint was raised by $7.5 million to $245 million.

Operationally, the company continues to execute its capital recycling strategy and enhance shareholder value through accretive buybacks. Since the start of the year, the company has repurchased $49.2 million of common and preferred stock, utilizing a portion of its $458.3 million remaining authorization. The company also maintained its capital return program, declaring a $0.09 per share common dividend.

In a strategic administrative shift, the company announced the elimination of the General Counsel position, resulting in the departure of David Klein effective May 31, 2026. Mr. Klein will receive a separation package valued at $1.5 million (less accelerated equity value) and agreed to provide transition assistance. Additionally, at the Annual Meeting held on May 1, 2026, shareholders elected all nine director nominees and ratified the appointment of Ernst & Young as the independent auditor for the fiscal year ending December 31, 2026.