SHO - Earnings call transcript Q3 2018 | Sunstone Hotel Investors, Inc.

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Operator

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Sunstone Hotel Investors’ Third Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will be given at that time. I would like to remind everyone that this conference is being recorded today, November 5, 2018, at 12 P.M. Time. Eastern my President the of now Aaron over to Vice Reyes, Corporate pleasure is presentation turn to It Finance. Please go ahead, sir.

Aaron Reyes

and received our Thank should made available and April, good By were everyone. you, morning. now, supplemental, have which all quarter a third of this copy earnings release morning, you

a not access you them on you do copy, If our yet have can website.

including our are to caution factors in call those contains Before XX-Qs, this evaluating subject risks other we the that to begin, filings in to projected. consider remind SEC, cause I everyone materially those and XX-Ks forward-looking and which We our uncertainties, would from those to prospectuses, actual statements that described differ like with you forward-looking results could statements.

call adjusted information, this EBITDA non-GAAP also hotel-adjusted and note EBITDA, FFO may including margins. that financial contain adjusted We

providing in prepared Giglia, Robert John. Officer; us John We to available Officer; Chief to After as principles. be accordance the Executive Hoffman, remarks, Marc questions. with our information Arabia, call are supplement ahead. Investment go With accepted over and today Financial are: Officer; accounting and on Chief will a Officer. answer call information that to President Chief that, generally the Operating I'd we turn your With like Please to Chief Springer, Bryan

John Arabia

our specifics an completed with and dividend. investment credit full-year on brief provide Bryan our to completed and catch-up to capacity, as beyond. the morning, of then our review well of overview Afterwards, our thank of significant Aaron. million well recap capital today. XXXX quarter will transactions our remaining I'll updated which well on you today relating projects, results expect then and as as as quarter our And the operating everybody, environment. as call a provide an Thanks, guidance I'll our earnings Good $XXX growth fourth recently XXXX we'll including for the as our recently joining facility. in we XXXX update start provide us operating current third update

During or continue of our many of revenues, previous with total delivered experience hotel the our we as results strength operating high-end RevPAR, expectations the hotel in room were for and near third parts profitability our to portfolio and business, non-rooms quarter, that rates particularly overall exceeded revenue.

portfolio occupancy of made quarter in hotels, was our sale our which our third average was X.X%. The in increased point adjusting and the range. comparable basis X.X% a the October, RevPAR for of two at guidance high-end increase in XX portfolio, Houston daily decline for figure, closed of This XX-hotel which up rates adjusted

disruption to activity growth of Orleans The complete as the third points disruption JW million basis renovation, points or well relating X in New XX of quarter comparable basis which RevPAR quarter. the is the XX roughly approximately now includes as Hurricane Marriott from

in resulted and we near-term exceeded Nevertheless, While despite top-end per share there the the respectively. adjusted not diluted overall disruptions up and in range our Hurricanes. leading property travel X.X% guidance above to the did cancellations and our in the activity EBITDA adjusted increases room the any EBITDA expectations portfolio by for and X.X% the quarter, the were in incur notable damage resulted immediately Hurricanes from following weather-related Hurricane FFO of

So demand. our talk with of let's the transient about beginning results operating details

roughly over by rates occupancy half transient X,XXX nights stronger room X.X%, of X.X% decline than the side driven contributed increase We in room had transient out transient transient and of by basis business, Orleans, expected in a at total our which of point Marriott decline. as service occupancy. XX expected, JW the On New the increased revenues to

Similar to better and hotels channels, time in periods, in than channel rated rate San transient higher quarter, Chicago, was at segments focused specific directed and which last limit growth. discount Diego. pricing on Wailea, resulted we Additionally, San certain to expected stronger instead Francisco, room

onto group trends. Moving

points and in X.X% rates XX average demand our modest group That over our in a group demand portfolio in Boston D.C. down up the on expected, to said, the were third was room As basis quarter. weaker quarter citywide due

group and room occupied have positive and the audiovisual throughout trend X% increased Additionally, continuing food per we beverage spend year. witnessed the group

and by X%. all is Group and in can due all our by quarterly booked group The third proactive rooms time groups production, fourth experiences. premium third group up out-of-spend events, audiovisual the improved contributed nearly willing Fourth we high within been to positive. and of period periods, current Orlando repositioning food investments should pace production our basis, production last has increased and hotels, their in several nearly group of group year-to-date to Renaissance pace the which drive and in to XX and leads. Beach plans believe business. our group our spend, Our our growth and the to Renaissance time XXXX. therefore, spaces to Hilton have a our to Long to matching year-to-date and days and quarter catering provided investments pickup particularly and in facilities have quarter that to high-end quality which on basis group pay Diego quarter deliver meeting XXXX X% XX% continue increased attracted we X% event. short-term that beverage Orlando These leading and in strong Boston booking creative Group close XXX with investments at for quarter are group short future to space over our group higher increased and our to continue also have exceed fantastic generated activity more nearly production, the volatile San minimums be for points We lifted came their our our plans in, Bayfront,

Additionally, favorable citywide San Chicago, Baltimore, additional fourth compression. nights are Orlando, and drive quarter which D.C., Boston, rate Diego, in room should transient

growth expect San pacing markets in exceed demand RevPAR the quarter quarter in Wailea, strongest RevPAR to and the the of the fourth expected books quarter. growth our the transient will key be we robust group third ahead like the year meet with Given Orlando, and based on or Diego

Given these guidance for outperformance share increased our outlook XXXX factors, third as of XXXX X% fourth reflect EBITDA increased we and by to have the well increased midpoint quarter adjusted quarter. our FFO have and diluted full-year our the as Accordingly, respectively. full-year X.X% an per adjusted we

increased the have our by also guidance XX points. We midpoint full-year RevPAR of basis

Houston After bit a portfolio, in our many, the number talk Greenspoint, Texas. completed two the little to months, lowest hotels Let's Marriott of Houston North the many sale remaining about announce recently Hilton happy I'm quality legacy transactions. the of in and

real sold into value And within the nothing million pricing The represent and hotels, about, we capital for the returns asset were concentrated mark and have future market $XX our to year, this on the of far total relevant to earnings inferior long-term year. near-term fifth And these our write may eliminating have may estimated sales further believe lowest $XX estate. produced any other assets Houston of like and portfolio. prospects. pricing, home those, to our investment, long-term able which fourth an million to need the quality clearing so hotels not they we the hotels dispose two this sold With commodity two or

total three over the surpassed our these billion. With sales, past years have dispositions $X

quality XXx been multiple higher We more of at an dispositions. average as in left significant trailing sold and have EBITDA are pleased approximately estate optionality. with real with relevant these concentrated a portfolio, as us They well financial long-term

on, Moving exciting on XXXX an update let me provide our capital projects.

or so the I’ve on in expect way portfolio square time January. meeting meeting event in in approximately an completed the be and update. guest provided contribute expansion details XXX,XXX to to room, of I schedule the feet beyond. and today This give XXXX and bring At per budget is growth to several of our an impressive on only space the So space square these XX,XXX total feet making quarters, growth even under XXX more a Orlando Renaissance opportunities past destination. Renaissance, will desirable is will our to square feet usable each of we on brief new the

complete and investment Francisco generate the JW and guestrooms at Wharf return, XX% to will product expanded rooms projects including conversion sophisticated, space new XX million feet meaning portfolio of XX% renovations that limited bathrooms, XXXX. JW unlevered recently $XX bathroom rooms our square strong to Avenues X,XXX completed and continues the at and Orleans we a and Plaza the the the Marriott material outperform at our completed deliver Long Renaissance-LAX, in addition.Year-to-date, results have rooms, Boston in growth are at New renovation showers, this that fourth the to multifunctional, a as we and to from this the the expect Long included space. the upgraded disruption beyond. Wharf is contribute club San amenities. Park and of expected We solid our of Both view XXXX quarter Marriott transformation summary, a are features these In of retail poised Marriott growth expectations Hyatt, deliver brand repositioning including Renovations to New Orleans. street function complete to we expected the Collectively, The

Bryan, opportunities up further internal investment and to capacity and to balance levered continues earnings. investment Furthermore, expect benefit position Oceans XXXX deliver We sheet low us With Edge turn growth our our well through ramp to as material incremental over call unrecognized and I’ll selective investments to earnings capital Bryan. recycling, the were go please ahead. increase earnings which over to represents shareholders. significant our that,

Bryan Giglia

Thank you, morning, John, and everyone. good

has of consolidated third weighted-average our place the $X.X that five have maturity approximately quarter, of outstanding, over a of of preferred years debt X.X%. of As billion end term and rate weighted-average to current a we and interest in securities the and

XX% total unsecured. variable of is rate debt our percentage as a XX% and debt at of stands Our

have the unencumbered. XX period of $XXX XX assets, hotels two sale now trailing is our EBITDA, collectively Houston the EBITDA approximately and over Following million the nearly generated XX% we of month that of unencumbered

In on and In cash $XXX our current will hand, from will undrawn as XXXX, nearly adjusted $XXX to unrestricted facility million balance materialize Adjusting and cash once Houston credit addition the before no this million October, sale roughly of dividend, hand. of this $XXX cash covenant based discuss balance capacity use This our that to fourth $XXX million estimates for will expect $XX have to pay credit to earnings $XXX the extend future to approximately meaningful the cash maturities million securing the momentarily. debt to to quarter attractive represents maturity XXXX. million, million, an A on capital. amended reduce with to third million we Of pricing. our as while deploy enhanced ended facility $XXX we hotels, increase we existing and million to November which quarter catch-up million. I XXX we $XXX our well now the we on package more

and full quarter, our to release. Houston fourth the ongoing the disruption ownership to the full-year well to year. business of and and our a proceeds in hotels, turning be supplemental loss found XXXX interruption in can throughout adjusted two an Edge $X in period for Oceans million related have quarter October, including full-year Now guidance as our of the guidance, reconciliation earnings sale been at anticipated anticipated during approximately million this $X insurance hurricane experience Fourth as

the and interruption We fourth quarter. book in business expect the to proceeds receive

For the and we expect to X% portfolio fourth increase RevPAR X%. quarter, between total

adjusted adjusted between to diluted FFO We to million and $XX $X.XX. EBITDA quarter $XX be be and share expect fourth between million and $X.XX per

between full-year, range to our guidance RevPAR grow increased we the total X% portfolio and X%. For

million range has FFO to $X.XX. EBITDA $X.XX full-year updated been share increased increased Our adjusted $XXX range to $XXX was million diluted updated to adjusted and a to guidance per full-year our XXXX

that of XXXX. distribution quarter we been time, as tax sales on is net the Newport have sale $X.XX not gains catch-up and dividend Philadelphia, a income. Now from and quarter we fourth generally XXXX the gain equal on size asset expect Marriott and per Beach tax XXXX dividend to our fourth Quincy, of declare the $X.XX to to share. a Marriott we dividend turning would this cumulative Beach requirement with our the after equivalent of in would offset range approximately the our outlook, our to current years, midpoint quarters first completed distributed do sales expect Park sales the the by dividend hotels. catch-up to remaining the dividend be the practice of Together between catch-up our on losses the an quarter dividends annual The for taxable yield to for of Houston tax paid three equate on be dividends. The of catch-up X.X%. fourth in adjusting City our Fairmont prior expected Consistent Based our Marriott XXXX. on Hyatt At gain Newport of with the

has catch-up and year. to We of distributions in the call the of will like from Please our questions amount would that, Board December later series on go declared common With our approved securities. quarter be finalize dividends dividend, of April. the the of both up Separate this will outstanding the quarterly now this open it I to ahead. routine already preferred

Operator

we'll Thank Please Thomas And you. from Instructions] Morgan from take question our [Operator Stanley. go ahead. Allen first

Thomas Allen

Hi, good morning.

explicit hearing negotiated your don't Thank rates? on at about XXXX kind you as guidance. high-level thoughts around any what give think know commentary corporate you're I And So XXXX? hotels any of we you. But

John Arabia

Sure.

negotiation seems well be and to So along far corporate as negotiated moving rates – anticipated.

most from I’d is markets, most markets in bit a couple a say, a expectations X% markets are bit little X% low-end generally and couple given very anywhere weaker, a year. case stronger, as little in of the increase Some any some at single-digits. of to high markets flat the in are

Thomas Allen

Thanks. just the you acquisition there? where then can terms in update right, of you us All And great. on are environment,

John Arabia

Sure.

healthy environment, what On of have not ever which to one been right this but not Thomas, a acquisition very in professionals value the we will acquisition environment excess I any of very price really of couple in we've right remain first themselves, in of busy the fairly another competitive where of one year as in transactions need investments. underwriting potential of is The certainty distinguish number speed now we active acquisition to that in, only nine market only now seen investment as of you, tell seen. is a have is and team, but investment months participants the indications clearly our paying broker from is distinguish our a assets, in XX particularly with are. what disposing closing,

aggressive of implied years. are is pricing than what that fairly rates transactions on we've actually couple the and cap And we've lower been for so where some seen recently assets on past

amount our remain we given underwriting given diligence to of very the speed So active, flexibility, and financial assets.

remains We very it have, ourselves distinguished as competitive. a I but believe, counterparty, good

Thomas Allen

Helpful. Thank you.

John Arabia

Thanks Thomas.

Operator

to And go we’ll Powell our Please move from next from question Anthony Barclays. ahead.

Anthony Powell

the calendars Orlando markets guys. your sweetness? talk weaker over do been of Hi. markets? like expansions think Boston lot about of of recent any Good And mitigate in any XXXX. how citywide your you be a you meeting go relative able There's Can in morning, in will and look the citywide each room to of

John Arabia

Yes. Anthony. Good morning,

other the brought it's As earnings the first citywides up, on I a call. And that factors. that issue joined that bring in think, one believe to D.C., people to of is up year of name we we Chicago we’re have markets in next mitigating to The in weak discussion, few relative last news on have are secret good folks some citywide our of few. a Boston, since look, there those markets weak a we no as couple LA,

of the in the decline materially in be by example, Convention submarket For LA won't we LA, that a are impacted different Center.

brand factor beautiful thing space. the we Boston, mitigating not the and rooms product a of have expansion we only same think meeting is Orleans, that a with New in new

One Hoffman of the amount so Plaza increase we space Marc was could of meeting wanted team expand the our group. Boston at that in-house and reasons to Park

room I again think the the city, I that product, short-term product. some location Wharf, great cyclicality. to a mitigate think very and long-term, strongly type believe, located that's of will of have the believe best we which one winning with strategy. is it going a At But winning that in we hotels be of Long we

the also strong XXXX major we're are there think are particularly we bookings some several brands, fairly tell what year, with next talk calendars pretty I if to or So you, has convention weaker overall, of you hearing Hilton, actually XXXX. Marriott would is cities positioned while well. versus we group

Anthony Powell

catch-up year-to-date, it. gap much to property I at you obviously, relative very, the you or results. guess, have versus moving to growth us good Wailea, and Could more, closest And your on comp Got that where how closing you Thanks. XX% update very your peers? are RevPAR do set

John Arabia

Yes.

we is hotel. there's been The at and quality, not doing to I have the one of meeting planners index remarkably favorable increase really service but hotel marketing continuing probably new think to that designed asset, over on areas service, the well. there have meeting couple just Anthony, that really the the there year have gone of guests. more only the that the team A well team have

So we would year another strong anticipate index. of

is competing under we going particularly with next we of are rooms the demand number Although, going getting how rooms a hotels for in group example our next taking plan service. there in year renovations out of so because year we couple into XXXX of on strongly believe transient and reducing

word, down So would a on one paper, be even bullish though the that's commentary. actually piece that's

Anthony Powell

for That's Thank me. Great. it you.

John Arabia

Thank sir. you,

Operator

ahead. We’ll take from from our Woronka Please next go Chris Deutsche Bank. question

Chris Woronka

Hey. Good morning, guys.

John Arabia

Chris. Hey,

Chris Woronka

good think, circle your business. that? of off able operators to do back are John, do Maybe discount quickly that you Hi, you on bit transient you rate your could morning. some I What do push to something more a we how some to, like little and in see you quarters? comment channels turn future about, that And made instructed

John Arabia

Yes.

Let specific that, more on on periods. that specific specific hotels Chris, in just me time was be

on revenue calls. are Our group asset and sales managers weekly

are we'll in opportunities. And compression various then we we're opportunities that take so believe markets, what seeing those there

Bryan Giglia

Francisco, to to both as strong Wailea, Hi the which Chris. markets point had in also we there citywide, Chicago, strong – It's Bryan. then certain the that demand. rate. And In San us making very John further compressed had in transient was specifically quarter, was such in allowed

Chris Woronka

I but than more benefits look think just integration you you your saw if from guess – then Marriott you the guys guess do integration maybe XXXX? XXXX seeing in ask things, Are different question. heard portfolio, And the helpful. That's across some brings to Okay. we've I you

John Arabia

integration see didn't significantly in our We issues don't any really portfolio. any Starwood own assets. Yes, we

So really else. than Starwood asset owners anyone suffered more

to it should I together companies that sense be there will think make benefits. the that, as Marriott continues two that put

Chris Woronka

Okay, very good. Thanks guys.

John Arabia

Thanks, Chris.

Operator

Hartwich We'll from take Green question our with go Street Lukas ahead. Advisors. next Please

Lukas Hartwich

guys. morning, Good Thanks.

John Arabia

Good morning, Lukas.

Lukas Hartwich

the can outlook an provide your on for update supply Hey, portfolio? you

Robert Springer

Hey, Lukas, Robert. it’s

talked more changed frustrating just not a well since has come the of and about, So that that the in and much that's New what's the a generally We talked past, particularly speaking, remains on in we've time. supply last in New just bit to in supply markets supply it have about size absolute it's on continues basis total been kind through York went and get of documented terms market with rooms. kind market is inverse the relatively a market the albeit to Other York terms is market an the number number the absolute and continues that growth of in coming, rooms. of small of in York, New of Boston supply Boston,

actually the a seeing the some are increases numbers the of supply smaller. are higher, supply Baltimore. higher absolute in So bit we percentage to meaningful but are continues and number have rooms Portland

those we the So kind highest. where see markets would of be the

like XX%. kind for X.X% All X.X% all growth threes, those compound for X.X% They're XX% a of the growth rate York, of New Boston. in Portland, and rates on annual for so mid between

Lukas Hartwich

and competitive are Great, environment, they return expectations aggressive with assumptions? then more in reducing terms think of or you the their are do acquisition getting buyers

John Arabia

don't tell but it know other we a Hard underwriting people's obviously see much to how I different is of Lukas, assumptions. don't underwriting,

bit my various I hurdles missed continue that thought. a has individual underwriting aggressive on on. buyers me of fundamental some Lukas, keep we it's And are As of their have downturn better earnings around bit It a to economic back, have moving those gone longer know, strikes measures incredibly later its out it capital but be and people the have as that we little you process into important that as to imagine also underwriting this a acquisition issue reduce that of We think a then is we that than opportunities. that weight expansion we continue seen put people downturn assets. buyers power long-term investment and little guess also processes still our well

small how a far of it to continue little prices that share a near-term, although wall capital, the though, the too see capital, recent not in so of whether So tell. and the little wall or bond hotels, in the impacts market, movement marginalizes see downdraft in a that we'll to with early it chasing bit we here

Lukas Hartwich

That's helpful. you. Thank

John Arabia

Thanks Lukas.

Operator

Shaun ahead. go We'll with our question of Kelly move from onto Please Bank America. next

Dany Asad

Sean. Hey upcoming Asad this I is on just like guys, question this actually one Dany had for quarter. on

or us underwriting maybe there kind just in assets fourth so with outlook view? exceeding are quarter? performance Or you just you're next a expectations far that of the can like any Are for the So help the quarter improved markets it portfolio? better like is core with the market your that broader specific

Bryan Giglia

Hey Dany.

a markets and up a are continues I better specific of – ramping for had is impact Edge both the in portfolio, quarter fourth guidance there is guidance think San while Francisco broader view, fourth markets, in our And generally then our Oceans is but back. obviously are the quarter. to it it perform is ramps specific increase last Hurricane function the to from continues and strong and year, come Diego San

Dany Asad

then and definitely, And I probably understand capital next directionally? to maybe the we next early like for looking out about, a at this year think have year just year, it's potential should but specifics, least plans Great. how disruption versus bit I the

John Arabia

capital would like at we're Boston renovation moving big which to talking periods you such while long expect seasonality, now rooms you're mind charging in Bay for don't talking a be year still of bathroom renovation doing renovation in at year about this projects it there's renovation, a while you high we experienced where We XXXX. particularly just to front a in Keep where know, couple in is that should you're a room very into very goods renovation, and name process, we that time lower than We some anticipate, about consuming the at the rates. market would But disruptive a this specifics various is we disruption points next Baltimore, a right have our couple. year. Hilton renovation soft XXXX that in have

some moving into So to should year-over-year XXXX. us be that benefit

Dany Asad

It. Got

Okay. you very much. for me. That's it Thank

John Arabia

Thank you.

Operator

from go our to next Grambling Goldman from We’ll on Sachs. move question ahead. Stephen Please

Stephen Grambling

guess two thanks. Hey, I follow-ups.

competitive you environment, this how even ultimately the does cycle what make reinvestment the let's cash and your that portfolio to buyback. and prioritize about on transaction First, specifically to would what the you or generally you allocation greater of other say, areas the more broadly tell shift would either

John Arabia

does what to so management, it I value design Yes, trying is day mean in so do think allocation? we're our their group as have capital maximize our existing the our what constantly, cetera. of asset maximize Maximizing that and to we a we to and really Looking job and construction, well. et assets

question The we how seemingly on that and right capital cyclical second liked. are and competitive we in we allocation where do plate in is biggest now more environment acquire a it's longer our assets to we more approach the becoming believe market

sure we it's come, we balancing to year, will been think active I long-term the desire our team desire think Springer are a senior I to prospects. we're has management and work probably good feel pick assets time acquiring as Robert comfortable on making question. our investment about points. that we And greater board difficult our capital incredibly focus a team this but very put assets we feel that underwriting with in one that materially, I our and need are to

which add really investment exceptionally just particularly it's to space. incredible hotels it's that the hotels ballroom Other about that into along some our in think aren't capital, investment just I shelf. we and with the those a investment well rooms, to soap incremental to which and areas in Incremental second rooms, question was those in coming other deem avenues. avenues portfolio, our make product, found I reinvesting on existing Orlando, opportunity we just of commodity the have think this several including down your year and renovations difference

continue I incremental made our investments think within for we've, look portfolio. to as we

to but IRR adding few those honestly, as wish adding had be to of quite internal highest hotels, couple potentially love more them our next We tend investments the investments. rooms a to risk. believe with We lowest we we what year a have including of be our we –

Stephen Grambling

maybe lodging some I of and a a and occupancy broken hasn't Fair heard really backdrop. very pricing. often answers despite pricing investors comments from enough, and to then follow-up we've second guess on that healthy your out

gained inventory traction do compression alluded direct either by your campaigns you So that impact allocate in the winning changed here channel booking see, seems kind or by pricing there's has be but to that anything else of which the may as anything you around? could of that to with be from and be you’ve process some you've that been or that dictating increase coming some able you any think final in to

John Arabia

That every to we the perhaps not only is has revenue on Almost No, that. expansion up not, of the the rebook XX really the managers single one beneficial late but from that I our cancellation margin, would been that of periods. cancel hours. our say helps leading really. saw The thing of that is hotels now up to

of moved thing been about supportive I'd have brands say. the vocal and operators incredibly that our only further out. have the That's We of

Robert Springer

to have helped. improved have demand, Hilton close And is has brands out cetera party and I et think that the other thing when we that peak Expedia, has ability the the now other large third both, that and Marriott,

Stephen Grambling

much. so thanks Great,

John Arabia

you. Thank Okay.

Operator

We'll move Please onto next question ahead. Baird. from Michael our from Bellisario go

Michael Bellisario

Good morning, everyone.

John Arabia

Hey, Michael.

Michael Bellisario

John, you're capital changed conference much were versus maybe off you you more call? about how optimistic last that on to far are and you on missing out when days when ago deal deployed quarter's communicated XX us on what's getting

John Arabia

off how high even around digits as XX%, to I'd we have of think a much far say been, first was more maybe I single question where as percent. just your little bit

transactions evidenced although We and at we by okay second third prices a been opportunistic. on that There as remain strategy. out quarter, the we our couple I bidding out went think of them. went I prices that of lost and out have losing they were that

invest is. very will market remain reasonable It's We shareholders our get of well-capitalized, savvy, time, every a confident over are to competitive buyers it right that amount aggressive to market. what But number in a the of be a I is that acquisition. wisely. we So There able capital now. shouldn't expect

Michael Bellisario

Has front? but assets your off a anything recent share view, on any lower non-core is bit that you especially of stock for changed up quality more lows, know of change the you've sold in repurchase recently? I the given

John Arabia

to believe a to Continue that No. that us. repurchase that accessible share tool capital is is allocation

it at in really right share our one no change on employed I will be the repurchase. so think time, view that's

Michael Bellisario

I XXXX lastly, that. have just stands guys fare missed a A Did that today? where you may provide and may Maybe group’s

John Arabia

No, not. next our our the about we talk on have guidance XXXX, call. both quarterly We'll full

Michael Bellisario

you. Thank enough. fair Okay,

John Arabia

Thanks, Michael.

Operator

we'll And go take next Katz from Please our question from ahead. Jefferies. David

David Katz

everyone. morning good Hi,

John Arabia

Hey David.

David Katz

wanted to about, point? you've of capital, meaningful with sort a the respect at but ask a become component would of of Hey, has international run a an wall I know is that of at issues to is normal what rate more that there and that you think or participant consider covered, this far, I I so lot

John Arabia

family months would sovereigns that that There then we Actually, I private offices. overall competition, from a the nine XX say Chinese-backed past has seeing reach large both equity, months a are – now. couple actually seen that very and we're and right been of of capital, where most active, the couple bidding but remain to XX and ago gone over that strong has months, small we've bid see actually them don't

David Katz

you Interesting, about back question and comment I think previous buybacks. just go that can to one if I with made the stock

of classify How of the Is of is when about would You it Is to overall your time? stock? the we'll you about right think sort the it's the And availability your made that do How philosophy time, level of right it consider sort you right reference the structure? what time? that? cap that?

John Arabia

Obviously the like David. to things, to something we those have of capacity do all It's that. have

significant leverage no have do transactions Clearly be there's in discount can the portfolio, notable that. and also capital anticipate also at but that needs value on have keeping think it mind asset asset little that a would value, to profile to net what or forward. a needs liquidity access net be change. moving given to depends It in very question our I we capital to the

time, view don't repurchase potentially tool, tool it a capital a share good and signaling we a one. capital as the meaningful one. but of the it lot is to us I believe depends, have appropriate at but allocation a a do allocation So it's I very available tool it's a whole

David Katz

Got it.

very soon. thanks much. See you Okay,

John Arabia

End you. thank Great, of Q&A

Operator

closing to remarks. no at time. questions like conference back turn I are any or there John the for Arabia over this would further to additional And

John Arabia

We're Thank in we look very seeing NAREIT forward at many a you hope you to appreciate it day. and you wonderful of have much April. very much Francisco San and

Operator

presentation. you thank for We today's concludes your participation. This

may You disconnect. now

Sunstone Hotel Investors (SHO) 5 Nov 182018 Q3 Earnings call transcript