SHO earnings analysis
What we found in SHO's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Sunstone Hotel Investors, Inc. reported Q1 2026 revenues of $259.7 million, exceeding the estimate of $246.4 million, while earnings per share (EPS) came in lower at $0.08, compared to the expected $0.22. The company noted significant operational recovery despite challenges from severe storms affecting their Wailea Beach Resort and has raised its full-year guidance for net income.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Exceeded Estimates
- Reported revenue of $259.7 million surpassed the estimated $246.4 million, showing a year-over-year increase of 11.0%.
- Dramatic EPS Decrease
- Diluted EPS was $0.08 against an estimated $0.22, a substantial miss compared to prior performance.
- Strong RevPAR Growth
- RevPAR for Andaz Miami Beach reached $487.56, contributing to significant revenue increases.
- Sustained Net Income Growth
- Net income attributable to common stockholders surged to $15.96 million from $1.32 million, a 1,105.1% increase year-over-year.
- Increased Cash from Operations
- Net cash provided by operating activities was $45.4 million, up from $32.0 million in Q1 2025.
- Enhanced Liquidity Post-Storm
- Despite storm challenges, available liquidity includes $91.1 million in unrestricted cash.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Weather-Related Disruptions
- Severe storms impacted revenues with continued uncertainties, particularly affecting Wailea Beach Resort.
- Higher Operating Costs Risks
- Inflationary pressures on wages and commodities may outpace revenue growth.
- Geopolitical Uncertainty Threatens Demand
- Ongoing geopolitical issues may dampen international travel demand, impacting overall revenues.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.08
- Gross margin
- 61.0%
- Operating margin
- 8.4%
- Segment
- Room revenue: $161.05M
- Segment
- Food and beverage: $74.29M
- Segment
- Other operating revenue: $24.38M
What they said about what is next.
Guidance raised for full-year net income expected between $34 million and $48 million.
The filing reads about the same as the one before it.
What came before.
- 10-K · February 27, 2026
- Sunstone reiterates an active, lifecycle acquisition/disposition strategy focused on upper‑upscale and luxury hotels and emphasizes maintaining “appropriate leverage” and financial flexibility to create shareholder…
- 10-Q · November 7, 2025
- Sunstone reported total revenues of $229.3M for Q3 2025, up $2.9M (1.3%) versus Q3 2024 but down materially versus the prior quarter. Margins compressed (gross to 56.9% and operating margin to 5.2%) and common…
- 10-Q · May 6, 2025
- Sunstone reported Q1 revenues of $234.1M (up from $217.2M a year ago) with room, food & beverage and other operating revenues all higher. Operating margin held near 7.0% (operating expenses $217.6M) but net income…
- 10-K · February 21, 2025
- Sunstone (SHO) positions itself as an active acquirer/operator of upper-upscale and luxury hotels, emphasizing disciplined capital recycling, asset management oversight and appropriate leverage to preserve flexibility.…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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