| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 35 | 49.9x | 17.8x | Bottom tier | |
Growth | 55 | 7.3% | 7.1% | Around median | |
Quality | 29 | 3.2% | 4.5% | Bottom tier | |
Safety | 54 | 3.6x | 2.6x | Around median | |
Capital Return | 32 | 3.28% | 2.12% | Bottom tier | |
Momentum | 81 | 16.6% | 2.9% | Top tier | |
Sentiment | 34 | 3 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Sunstone Hotel Investors owns a portfolio of 14 hotels and resorts and generates revenue from room sales and non-room spending, including food and beverages, spas, audiovisual services, and other amenities. The portfolio includes resorts such as Andaz Miami Beach, Wailea Beach Resort, and wine country resorts, alongside urban and convention hotels in markets including New Orleans, Washington, San Francisco, Orlando, and San Diego. This model ties revenue to occupancy and average room rate, with an additional contribution from group business and transient guest spending outside rooms.
In fiscal Q2 2026, revenue reached $277.1 million, compared with $259.7 million in fiscal Q1 2026, representing sequential growth of approximately 6.7%. Net income increased sequentially from $18.6 million to $26.0 million, while earnings per share rose from $0.08 to $0.14. The calculated net income margin was approximately 9.4% in fiscal Q2 2026, compared with approximately 7.2% in the previous quarter.
Fiscal Q1 2026 details showed a clear divergence in the portfolio mix: portfolio RevPAR grew 14.6%, or 5.7% excluding Andaz Miami Beach, with resorts leading performance through comparable RevPAR growth exceeding 18%. In contrast, urban hotel RevPAR declined 9.3%, while convention hotel RevPAR grew 5.2%. Improved spending on food and beverages and other services helped limit the decline in total RevPAR for urban hotels to 2.9%, highlighting the importance of non-room revenue to the profitability model.
Automated analysis for informational purposes only — not investment advice.
The average analyst target is $13, with both the highest and lowest targets at $13 and a Neutral consensus; this target is approximately 7.7% above the 52-week range high of $12.07, while the range low is $8.69. No reported price-to-earnings ratio is available in the data, so the stock's valuation depends on Sunstone's ability to achieve its fiscal 2026 adjusted FFO per share range of $0.88 to $0.96 and on the continued recovery of Andaz and the resorts without greater pressure on margins or capital expenditures.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
SHO represents Sunstone Hotel Investors, which manages its investments through a portfolio of 14 hotels and resorts. Revenue comes from rooms and non-room spending, such as food and beverages, spas, and audiovisual services. The portfolio includes Andaz Miami Beach, Wailea Beach Resort, and urban and convention hotels in markets such as San Francisco, New Orleans, Washington, Orlando, and San Diego.
Fiscal Q2 2026 revenue was approximately $277.1 million, representing sequential growth of approximately 6.7% from $259.7 million in the previous quarter. Net income increased to $26.0 million from $18.6 million, while earnings per share rose to $0.14 from $0.08. The calculated net income margin was approximately 9.4%, compared with approximately 7.2% in fiscal Q1 2026.
Andaz Miami Beach achieved occupancy of 86%, an average room rate of $564, and EBITDA of $6.5 million in fiscal Q1 2026. The comparable set's average rate was above $1,000, leaving room to raise rates if the hotel's positioning continues to improve. Management expected Andaz to contribute approximately 400 basis points to total RevPAR growth at the midpoint of the fiscal 2026 range and is targeting group business to reach approximately 25% of the hotel's mix versus around 20% during the year.
On the May 5, 2026 call, management raised its outlook after the first quarter exceeded its estimates. It now expects total RevPAR growth of between 5% and 7.5% and Adjusted EBITDAre of between $238 million and $252 million. It also set an adjusted FFO per diluted share range of between $0.88 and $0.96, without including any potential benefit from additional share repurchases.
Management expects revenue and margin growth after the first quarter to be slower, with expenses rising between 3.25% and 3.5% and margins potentially remaining flat or improving only slightly. Urban hotel RevPAR declined 9.3% in fiscal Q1 2026, while March 2026 storms caused damage and additional repairs at Wailea Beach Resort. Management also warned of the potential impact of continued volatility and higher fuel prices on travel costs and demand.
Through April 2026, Sunstone repurchased $35 million of common shares at an average of $9.11 per share and purchased more than $14 million of preferred shares at a 21% discount to liquidation value. The company had no debt maturities before 2028, and net leverage stood at 3.5 times trailing earnings or 4.6 times including preferred shares. The board also authorized distributions of $0.09 per common share for the second quarter, while management retained asset recycling and potential acquisitions among its capital allocation options.
