Sunstone Hotel Investors, Inc. (the "Company") (NYSE:SHO) today provided an update on its recent operating performance, acquisitions process, independent hotel management request for proposals and finance transactions. The preliminary financial information for the fiscal quarter and year ended December 31, 2009 reflects selected preliminary results from the Company's unaudited financial statements, and is subject to customary adjustments that may arise during the completion of the financial statement close process.
Arthur Buser, President and Chief Executive Officer, stated, "On the operations front, we are seeing a moderation in the decline of RevPAR, and we continue to drive operational efficiencies throughout our portfolio. With respect to acquisitions, we believe now is the beginning of an optimal phase in the cycle for offense. Accordingly, we continue to evaluate numerous potential opportunities to acquire quality hotels at discount valuations. At the same time, we continue to execute on various finance initiatives designed to reduce corporate risk and provide capacity to capitalize on investment opportunities. We are steadfast in our resolve to consistently do what's best for our stockholders. Our objective is to outperform, and we believe that by being nimble, well-capitalized and decisive we will continue to create significant long-term stockholder value."
Operations Update
RevPAR information presented reflects the 26 hotel portfolio on a pro forma basis. The 26 hotel portfolio excludes 13 hotels which, as described more fully below, were, or are in the process of being, conveyed to receivers pursuant to deed-back transactions.
Preliminary Operations Update Through December 31, 2009 (26 Hotel Portfolio):
- Fourth quarter total portfolio RevPAR was $97.85, down 14.1% to prior year.
- Full year total portfolio RevPAR was $102.71, down 18.5% to prior year.
Three Months Ended December 31, 2009 (estimated)
------------------------------------------------
Marriott Mass Pro
Total Renaissance Ontario Mutual Forma
Portfolio (1) Westchester Airport Portfolio Portfolio (2)
------------- ------------ --------- --------- -------------
Number
of
Hotels 39 1 1 11 26
Number
of
Keys 13,546 347 299 2,587 10,313
Avg
keys/
Hotel 347 347 299 235 397
Occ% 65.9% 60.3% 62.4% 65.2% 66.3%
ADR $140.27 $142.99 $93.02 $112.98 $147.59
RevPAR $92.44 $86.22 $58.04 $73.66 $97.85
Three Months Ended December 31, 2008
------------------------------------
Marriott Mass Pro
Total Renaissance Ontario Mutual Forma
Portfolio (1) Westchester Airport Portfolio Portfolio (2)
------------- ------------ --------- --------- -------------
Number
of
Hotels 39 1 1 11 26
Number
of
Keys 13,546 347 299 2,587 10,313
Avg
keys/
Hotel 347 347 299 235 397
Occ% 67.5% 62.9% 63.8% 69.1% 67.5%
ADR $159.99 $168.56 $104.01 $126.96 $168.72
RevPAR $107.99 $106.02 $66.36 $87.73 $113.89
Year Ended December 31, 2009 (estimated)
----------------------------------------
Marriott Mass Pro
Total Renaissance Ontario Mutual Forma
Portfolio (1) Westchester Airport Portfolio Portfolio (2)
------------- ------------ --------- --------- -------------
Number
of
Hotels 39 1 1 11 26
Number
of
Keys 13,546 347 299 2,587 10,313
Avg
keys/
Hotel 347 347 299 235 397
Occ% 69.2% 60.3% 64.4% 71.0% 69.2%
ADR $141.32 $142.21 $94.92 $118.55 $148.42
RevPAR $97.79 $85.75 $61.13 $84.17 $102.71
Year Ended December 31, 2008
----------------------------
Marriott Mass Pro
Total Renaissance Ontario Mutual Forma
Portfolio (1) Westchester Airport Portfolio Portfolio (2)
------------- ------------ --------- --------- -------------
Number
of
Hotels 39 1 1 11 26
Number
of
Keys 13,546 347 299 2,587 10,313
Avg
keys/
Hotel 347 347 299 235 397
Occ% 74.4% 66.3% 73.5% 75.2% 74.5%
ADR $161.22 $171.09 $114.05 $134.16 $169.09
RevPAR $119.95 $113.43 $83.83 $100.89 $125.97
(1) Includes the hotels owned by the Company as of December 31, 2009,
excluding the W San Diego which has been deconsolidated and included
in discontinued operations due to the transfer of possession and
control of the hotel to a receiver on September 30, 2009.
(2) Includes the hotels owned by the Company as of December 31, 2009,
excluding the W San Diego and the Renaissance Westchester which have
been deconsolidated and included in discontinued operations due to the
transfer of possession and control of the hotels to receivers on
September 30, 2009 and December 28, 2009, respectively, as well as the
Marriott Ontario Airport and the 11 hotels included in the Mass Mutual
portfolio, which have been reclassified to "operations held for non-
sale disposition."
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