Sunstone Hotel Investors (NYSE:SHO) Issues FY 2026 Earnings Guidance

Key Points

• Sunstone set FY2026 EPS guidance at $0.88–$0.96, broadly in line with the street consensus of $0.89, while revenue guidance was not provided in the release.
• The company recently beat quarterly expectations, reporting $0.27 EPS versus a $0.02 consensus and revenue growth of 10.9% year‑over‑year.
• Sunstone declared a quarterly dividend of $0.09 (annualized $0.36, ~3.7% yield), but the payout ratio is an unusually high 900%, indicating potential sustainability concerns.

Sunstone Hotel Investors (NYSE:SHO - Get Free Report) updated its FY 2026 earnings guidance on Tuesday. The company provided EPS guidance of 0.880-0.960 for the period, compared to the consensus EPS estimate of 0.890. The company issued revenue guidance of -.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the stock. Zacks Research raised shares of Sunstone Hotel Investors from a "strong sell" rating to a "hold" rating in a research note on Friday, April 17th. LADENBURG THALM/SH SH assumed coverage on shares of Sunstone Hotel Investors in a research note on Thursday, March 26th. They issued a "hold" rating and a $10.00 price objective for the company. Truist Financial upped their price objective on shares of Sunstone Hotel Investors from $10.00 to $11.00 and gave the company a "hold" rating in a research note on Thursday, March 26th. Robert W. Baird reaffirmed a "neutral" rating and issued a $10.00 price objective on shares of Sunstone Hotel Investors in a research note on Monday, January 12th. Finally, Wells Fargo & Company lowered their price target on shares of Sunstone Hotel Investors from $11.00 to $10.00 and set an "overweight" rating for the company in a report on Tuesday, March 24th. Two investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Sunstone Hotel Investors has an average rating of "Hold" and a consensus target price of $10.00.

Sunstone Hotel Investors Stock Performance

Shares of SHO stock opened at $9.70 on Tuesday. Sunstone Hotel Investors has a one year low of $8.14 and a one year high of $10.27. The company's 50-day moving average is $9.34 and its 200 day moving average is $9.23. The company has a market capitalization of $1.83 billion, a price-to-earnings ratio of 242.54, a price-to-earnings-growth ratio of 2.81 and a beta of 0.96. The company has a debt-to-equity ratio of 0.55, a quick ratio of 2.94 and a current ratio of 2.94.

Sunstone Hotel Investors (NYSE:SHO - Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The real estate investment trust reported $0.27 EPS for the quarter, beating the consensus estimate of $0.02 by $0.25. Sunstone Hotel Investors had a net margin of 2.56% and a return on equity of 1.44%. During the same quarter in the prior year, the business posted $0.21 EPS. The firm's revenue was up 10.9% on a year-over-year basis. Sunstone Hotel Investors has set its FY 2026 guidance at 0.880-0.960 EPS. Sell-side analysts expect that Sunstone Hotel Investors will post 0.89 EPS for the current fiscal year.

Sunstone Hotel Investors Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, April 15th. Stockholders of record on Tuesday, March 31st were issued a dividend of $0.09 per share. This represents a $0.36 dividend on an annualized basis and a dividend yield of 3.7%. The ex-dividend date of this dividend was Tuesday, March 31st. Sunstone Hotel Investors's dividend payout ratio (DPR) is presently 900.00%.

Hedge Funds Weigh In On Sunstone Hotel Investors

Several institutional investors have recently made changes to their positions in SHO. Balyasny Asset Management L.P. bought a new position in shares of Sunstone Hotel Investors in the 2nd quarter worth approximately $41,332,000. Woodline Partners LP bought a new stake in Sunstone Hotel Investors during the 3rd quarter worth approximately $44,295,000. Alyeska Investment Group L.P. raised its stake in Sunstone Hotel Investors by 86.8% during the 4th quarter. Alyeska Investment Group L.P. now owns 5,369,789 shares of the real estate investment trust's stock worth $48,006,000 after acquiring an additional 2,495,914 shares during the period. Goldman Sachs Group Inc. raised its stake in Sunstone Hotel Investors by 132.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 2,787,519 shares of the real estate investment trust's stock worth $26,231,000 after acquiring an additional 1,589,258 shares during the period. Finally, Bank of America Corp DE raised its stake in Sunstone Hotel Investors by 13.6% during the 2nd quarter. Bank of America Corp DE now owns 7,240,157 shares of the real estate investment trust's stock worth $62,845,000 after acquiring an additional 867,137 shares during the period. Institutional investors own 99.37% of the company's stock.

About Sunstone Hotel Investors

Sunstone Hotel Investors, Inc NYSE: SHO is a publicly traded real estate investment trust (REIT) focused on acquiring, owning and asset‐managing upper‐upscale extended‐stay and premium‐branded hotel properties in the United States. The company's business model centers on generating stable, long‐term cash flows through franchise agreements and third‐party management contracts with established hotel operators.

As of the most recent reporting period, Sunstone's portfolio includes approximately 97 hotels and nearly 25,000 guest rooms across 19 states, with concentrations in major metropolitan and select high‐growth secondary markets.

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