SHO - Earnings call 4 2023 | Sunstone Hotel Investors, Inc.

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Operator

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Sunstone Hotel Investors Fourth Quarter 2023 Earnings Call. [Operator Instructions] I would like to remind everyone that this conference is being recorded today, February 23, 2024, at 1:00 p.m. Eastern Time.I will now turn to the presentation to Mr. Officer. Financial Chief Reyes, Aaron Please go sir. ahead,

Aaron Reyes

Thank operator. you,

adjusted our Before that that this I actual would results described are could materially SEC, remind everyone like to in those call including also and you to to contain commentary the on level and we call will from with cause risks the caution these in that to those projected. FFO evaluating which note factors begin, subject uncertainties, financial EBITDAre, information, filings adjusted contains differ EBITDAre. including non-GAAP consider property We our adjusted forward-looking forward-looking statements.We statements this

are with a generally as supplement this principles. accordance accounting in prepared We accepted providing to information information

go quarter provide operations summary investment that, activity. Please will our and of of Robert would capital position trends. finally, our and Robert are by Bryan. off I website.With Chief have will like section our our quarterly Officer. on Additional Officer; Bryan the XXXX. be available the recent Springer, remarks, questions.With Executive provided from us Chief details discuss year, over And current the review After details Investment answer Afterwards, highlights will which results President Ostapovicz, been Chris of earnings fourth fourth Officer; quarter call our Operating on to your I for our some Investor Giglia, on last Relations Bryan us liquidity available our today are provide earnings to outlook the team and start the results, Chief a our to with in our in commentary will followed release call turn and ahead. supplemental, and

Bryan Giglia

controls our by in caps guidance good end us fourth as front, the three the Park We capital allowed execution. productive of strategic high off our further sale were returning fourth our cost shareholders.On our to Boston progress performance line the investing Thank fourth in you, quarter morning, and completed earnings in deliver a and we the which everyone. strong year Aaron, on above portfolio execution and in better-than-expected recycling top recycling, include range.The we objectives, the encouraged quarter in quarter our a solid Sunstone at made Plaza of which to capital

performed be for significant it maximum defensive meaningful hotel well the which us, needed of reached return would earnings result its would While investment, very had and and much additional disruption. potential in

future an are to return but compelling sold attractive consistent with profile.As So all-cash we deal going-in the we have our investment hotel we assets in of longer-term previously composition attractive the have a that redeploy more that an opportunities into valuation cycle group-centric a with our at and has an near-term limited life approach, proceeds capital discussed, pursuing with given actively opportunities. hotel are yield the needs, value-add targeting portfolio,

and of we While ambitious progress strategic conversion a as to on projects. the this pace the in launched list, transient our near of are already brand to flagship are renovated XXXX.While our is like compared XXXX, executed received well been demand with driving The up those term. In group forward on Westin has rates. been hotel productive investing sounds property we objective, we house, XXXX October, portfolio, Westin execute our seeing incremental the the in look Washington, is almost benefits updating higher an you we wish further D.C. also which can always second confident we the We some has already soon.During very at fully group XX% to the that

share of should the Long Shortly, quarter contribute of the growth the underway. conversion additional the our year.In and completed of exciting Robert room quarterly the shareholders. beyond.The XXXX, through Beach million now we in Beach returned shareholders projects which is Confidante In on work is these a underway dividend forward, our Miami second XXXX, strategy last repurchases base drive to late Downtown, the backyard starting to XXXX that element return now renovation we growth through also nearly Marriott Looking NAV. earnings will details is value-add on to and another the $XXX capital share at some an soon-to-be of demolition meaningful in of to discount will of increased and our

a of activity repurchased XX remain said, repurchase opportunistic, in will capital.That XXXX, $X.XX continue of more share per common provide share. million our our return will our dividend stock While at to we consistent common

stock have repurchased years, we Additionally, common per last over share. of $XX.XX XXX million the at X

Our ability results. strong quarterly shifting the our balance XXXX.Now our enhance further return sheet and us to to liquidity capital position into gives

at markets, also XXXX D.C., it and our recent to urban strength saw the Washington, across XX% San including the Portland, provide solid portfolio, grew which noted I what quarter the in levels.Our were although pre-pandemic Westin to growth also generating RevPAR call, still and but the slowest group in RevPAR hotels than pleased the with portfolio should our travel ahead Marriott quarter the how to the X.X% up Wharf the the have during Long in performed benefits continue with in profitability improvement generate continued growth with well, by corporate more converted driven we Similar top progressed.The X% been higher into we growth year which moderated, newly our performed investment.Elsewhere and of earlier meaningful our year, continues further to portfolio quarter. As well fourth comparable as leisure relative to recover, showed of RevPAR to convention our outsized saw Boston in the business the as quarter, nearly led move demand expectations. we Francisco from

increased mitigated As at volumes has been in driving on below abroad, by generating while averages. business of the historical international results.We This travel widely revenues focused has Americans discussed, Wine evident the Country visitation are and and partially continues to number moderate has inbound impacted the leisure softness leisure to group imbalance of trend in ancillary been going continued is depressed which XXXX. resorts, as market-wide hamper these remains

can accelerate, the and with remain inflationary to base experience.On world-class costs, when focused on we a to guest we While managers working pressures. to demand the control business we with maintaining a continue cannot control side, ways cost offset all group of our while build will work to leisure find resorts

and increases has We where While labor high productivity, and in labor averages the by quarter, in enhanced possible.Food to improved, staff business. profitability management to of optimization better through mitigate of mix further were driving availability most the improved wage driven hover historical near continues efficiencies growth cost beverage better markets. and end a able menu

disciplined growth well-located generate of outsized strength, of is fires sustaining year, has the in cost their half benefits in up in the the near growth proceeds and in San encouraged We year attracted XXXX, down efforts performance Wailea with insurance the has testament approximately resort an and recent which and from the XXX management.As it broad-based Confidante even speaks next a Long the growth for activity Beach.Excluding ADR bounced welcoming the Boston.In that quarter are the the Beach our by market's impacted costs, the our the continue during destination Diego we appreciate top and at that while margin second of benefits was including hard Boston the Group year-over-year the Park investments providing job from for into unparalleled ahead summer guests, hotels, evaluate the we associates to desirability, the to layer as Long be Resort, do begins to minimal term, in Our portfolio the making leisure our with D.C. about outlook from Plaza. the to line back points, the is.We for higher way margin comparable to and for to business pace the the last very which operators was work and Renaissance opportunities tragic renovation earnings. dedication portfolio of two basis looks the property from the group resorts portfolio. X% the service and well of pave growth of Beach, continue additional sale Miami only these premier our outstanding and Wailea look and impact the Beach to

in-process of opportunities utilized achieved where maintained capacity credit embedded have While value, the redeploy been activity transformation through going-in we or our growth into asset Beach the superior through of Boston a in and Miami now a us portfolio already resorts share from well-priced bring and opportunity add earlier, last to Andaz Plaza.As near-term earnings, investment a include will our more our our to quarter, would investment we I later noted have continued significant we additional proceeds portion Park significant in ramping capital balance Wine we repurchase management parameters strong for ownership.Considering in investment opportunity still growth to what our can ownership the our with metrics accretively needs initiatives capital a than yield, of through the looking either the were and that create limited are course of compelling value. the Country, investment provide flowing cash sustain

we warrants share sum XXXX, it. executed of incremental these all sharing funds strategic in three in stock have progress work things price do forward our the we objectives near our additional when updates we with up, on more year. this term.To that the know repurchases We balance to in look expect We but redeploying on to to current our

benefits profitability and We our operations growth projects. the on investment of are realizing focused from delivering our

recycling shareholders.And additional Sunstone to thoughtfully creating capital over should grow investments. excess give return our progress redeployment for We on to capacity that, the capital sheet entire will strong returns advance further capital and further turn and our thoughts value objectives our These team of strategy Robert balance the upcoming utilizing call coming year. and to some the delivering the to further our remains I'll our The committed support portfolio. through in renovation cash actions with

Robert Springer

Thanks, Bryan.

$XXX most commenced the of transformation invest Marriott be into million and efficiently to the Beach.In D.C., the fall. will Renaissance over underway Long between and In of $XXX in the renovation, During exterior order to $XXX invested the expect is both XXXX, we XXXX, in Miami late hotel. be investment starting the we our as and to our the and conversion to of we we now The hotel Miami at of will began relaunched portfolio completed confidant suspending a Andaz and Westin the March areas renovation Washington, the complete million downtown, interior Beach the the work into million as on portfolio. the through operations majority

better debut the work expect confident compete progress our we year. Renaissance convert updating renovate the the JW the the we that we of square Beach, an beverage underutilized that natural the finish X,XXX of get has portfolio, profitability.In to are our abundant light plan should market.In on of last the fourth a should the fresh and an remain closer has of concept underwriting Long Beach feet product growth exterior space to Marriott which completing the Elsewhere to meeting also with makes use the benefit New be is underway we expect underutilized disruptive and less Orleans much the expect our we the we property to keep transformational of before, to what is projects our you are have year.As completion fully the we and market contribute that with allow addition, XXXX new strategy, transaction and area renovation earnings contributing adding in on be we for prior shared underway the peers.While during our downtown year, renovation a of next food of better space, forward hotel this our experience to quarter in comprehensive and are Long our into spring, the while in of with will recycling across soft luxury will at balance Marriott and to have our and are primary activity hotel combined for the balance, lobby Later goods as and have patio we to meeting in we new to Wailea activity look restaurant Orlando, to us we D.C., will business better the and encouraged seeing the compete the in in approach. We able also market. guest which space delivering renovated the piece component meeting in higher the in a than had in a which addition incremental earnings experienced We launch planned year, its space. delivering project.In converted of to nearby by to we of of an former capital renovation the marginally room several call

into considerable ways Aaron. opportunities. We We that, in our growth capacity on additional over term.With to investment and redeploy actively near to progress for looking proceeds have to forward new these information I'll it Please are sharing look go ahead. turn the

Aaron Reyes

Robert. Thanks,

with pleased financial fourth for our are We the quarter. results

forward ranges.Adjusted RevPAR portfolio $XX or As the with seeing benefit and performance.While the million midpoint and EBITDA for remains the our above management high quarter fourth are $X.XX nearly FFO better travel by of driven stability XX% line guidance were was midpoint booking visibility of outlook, the lower-than-expected $X.XX costs, costs.Adjusted the the expense above as our corporate level combined per patterns. end in EBITDAre diluted and FFO our share, lower more was range stronger of we the above of and across growth, quarter X% fourth performance, high operating all end the above of for challenging, outlook stronger financing top the behaviors

As of adjusted $XXX to full a EBITDAre of portfolio is from will and in are will XXXX, added a other X.X% compared per impact year growth to result, same which and XXXX. in RevPAR the events Miami RevPAR Confidante from as the hotels to true The and concentrated of demand to exclude and and Beach that will will to which which be this second includes activity also today, major Long diluted travel our for the Beach, range $X.XX overall to the expect we year the drivers year growth, in estimate be evolved will we modest likely X.X% range full patterns our will range industry half most in on outlook heavily under more X% have for be year full the portfolio, excluding that our of of X%. share Miami what lead earnings we support timing year. course from that impact from projected year We see of we This key XXXX. a FFO range of will in our growth our quarter the Based of activity and we the million, But included renovation for year.In couple key million we total outlook of the expected points well. over resuming section portfolio $X.XX.Given how construction numbers. our first RevPAR that to lower the expect press share balance for XXXX the year, trajectory positive the range portfolio.If the the growth year-over-year all $XXX guidance release, have adjusted will a of here full before I'll assumptions as citywide the XXXX the our providing renovation

Our Plaza. assume not received outlook Park of reinvestment proceeds for XXXX Boston does of the the the sale from

consistent guidance to Robert and at to As renovation earlier, adjusted as are year.As more adjusted our late Miami with in noted, the for A we those noted put of the will adjusted our update accounting this be quickly. this back with accepted allow deploy ranges will reconciliations expect and be incurred Confidante have performing opportunity actively are portion practice. proceeds capitalized FFO, during work the in operations those as or to in work funds Beach suspending to we EBITDAre principles costs at we generally evaluating of the accordance to for would time hotel March appropriate be industry

estimate the spread for the generate the offline.As Miami million will of estimate press part EBITDA through million the $XX loss expect we majority this fourth at as the the start Beach. activity incurred Andaz a of second will the of we invest open as spend the that that million portion $X will current our $XXX the into a incur midpoint we be $X noted earnings in in balance, hotel prior is of in quarter, the investment the full while million the capital this the time that approximately of is the quarter $XX we our early year. and our line, million XXXX, to loss across million, to an to We with to QX the of resort to we our year, expect million And release $XX which lower disruption between than on renovation million portfolio million morning, was of was less prior relative the year.Based year. year XXXX resort estimate $X of $XXX carryover now to in Inclusive of $XXX in total

end our strong million equates full hand, the cash remains and on of $XXX on including which, cash sheet facility, of of we as cash cash.We capacity nearly liquidity. balance total total Our had together $X of retain credit billion year, our the and to restricted nearly with equivalents,

the equity sale of our at leverage net redeployment was net expect of stood debt a preferred X.Xx.Adjusting the Park of As debt but our increase the portion metrics our end the year, forma range. and Plaza to pro only the longer-term we EBITDA to approximately target to for of X.Xx, EBITDA turn of would one proceeds, our remain in end low Boston to and by

liquidity at to year, piece return with coming one end our market shifting the of give balance position before combined us our capital. of overall of sufficient refinancing the and optionality low we the address that have maturing the due improving loan, We financing principal modest debt expect and will leverage, to of the an strong year-end.Now

a has share declared distributions declared Directors of preferred quarterly for H&I and has securities. the per Board routine $X.XX a Our common also Series dividend

speak possible. any with does so can earlier not call now with please we outlook Operator, participants additional share assume was that open the capital the to to let ask for ample capacity returns, year that yourself activity.And We many we question. go able as as discussed the of to impact one we repurchase retain additional that you questions, ahead. While that, please full are

Operator

Our with first question ahead. Chris Green comes Instructions] [Operator from line the Darling Please Street. of go

Chris Darling

Good Thanks. morning.

Aaron Reyes

Chris. Morning,

Chris Darling

mentioned might leisure you. year? through of range? the of that of you in excess remarks for imply you'd the that Can And talk properties fall properties what then you when grow prepared handful the a RevPAR provided, in midpoint exclude Confidante. least to that is Bryan, which this range similarly, expect you growth range at your RevPAR to your guidance X% X% you transient below growth Thank

Bryan Giglia

Okay.

start -- the part. first good morning, I'll Chris. Let with me

So we the above growth, the Long this 'XX out the San Diego back-end while it's assets.When or year, or Wharf, ones at Portland larger when Westin growth D.C., of -- below look will market coming The below pace decent are the Orleans market, portfolio loaded. above you midpoint. Long at obviously, renovation, that are be Beach look New and that

the So which third the and -- quarter second the demand doesn't and the in citywides and coming sorry, transient have the compression that the fourth do. and the is third first quarter, second

one about New good. below.San short will in of -- growth really that business San there concern 'XX. to is weak term, XXX focuses and booking a into smaller, been days the remains The that had the night And be in business citywides -- call business. be we of The to XX pretty XX robust. are that's The So strong. XX% kind where really year. hotel's group Francisco Francisco to of hotel or growth so strong.The That's components book group that great it out continuing this business are it are is room business. that Orleans slightly That's demand market are looking on the 'XX, the continues is transient

are good ADR in where coming marketer submarkets that wildcards other as And as the demand.Some in market that we happens so pressure AI. maybe from too strong with what not that business the the are could are with of financial some result

that international to have this increased office up then inbound to expect filled with supposed year. getting We grow. seen grow some we the is some of and around us that And business,

standpoint, -- else, So last quarter looking if next obviously year. had from opening the -- year. -- it The a leisure has market.I that does, think park-Universal that Park first half big it will help of is a Orlando first

in second And half softness expect so market some we for transient that the year. of also the

Operator

ISI. ahead. Pfennigwerth Our the next of from Duane comes go Evercore line with Please question

Duane Pfennigwerth

thanks. Hey,

Just wanted to there. ask a follow-up

X that first On ex should how the that about be in talk -- X year, ex half what XQ, fourth growth maybe can thinking you about rate Miami the Miami, in XQ? we would you quarter? of how to the the was And

Aaron Reyes

as the -- as I'm cadence... far far As sorry, Duane, as

Duane Pfennigwerth

ex already could wonder So the RevPAR yes, weighted, X X on did maybe providing quarter? in finer what point indicated first outlook put if half the you're half it's be of fourth year. to probably And Miami more look to the ex I you you a going like that Miami, the but second

Aaron Reyes

Sure.

the hit question have your -- the that on of release. growth So earnings the portfolio RevPAR on statistics without ex Duane, what Miami. We the like Those look Page just to first we then are both Miami. did and X show

in the if the X.X And for metrics was basis of down quarter, both points, those our and down full our range. you as then guidance were we guidance XX Miami, it of on portfolio. for exclude better So the saw you side range, were

Bryan Giglia

to quarter. Aaron some the of had When best you said, be you is that the then impact the had QX as obviously -- that year-over-year -- they've that, our Wailea, was to the to on And 'XX, quarters part add Omicron. of really strong the there when San weakest -- very of look of cadence hotels was for you had, will look so Diego.So at the most back the with ever group year, --

the QX, up of more that's their stronger back guidance, QX the of It's group across larger coming and where that we'll the or that's in probably points year, San percent QX our most is And will coming demand one half. D.C. XX the QX be you our back uniform the it. in pace is bit of will basis New little in back the be is This but half the D.C. our our some be majority up. so the market, When at strong. to that's year. our will see second and starting gain half of of year very -- so of a hotels, in for half look ramps their year, toughest of comp. QX was more, the the in see the the only start RevPAR growth Andaz that piece year Beach -- hotel of coming big RevPAR Diego that of QX, Long mainly XXX [ growth.The ] is And from ramping the market, Orleans a will happen but

Duane Pfennigwerth

Okay. Thank you.

Operator

comes Rose Our of the from Please go next question line Smedes with ahead. Citi.

Bennett Rose

held thinking normal their or how Bryan, if -- wanted be And to to you just XXXX?And the did the sort Or hotels, are thanks. little you definitely to from seeing Hi, better Napa bit terms business about a that, of just understand, as quarter. in of with fourth it of talk you property still mix rate housing? I could I about struggling seems that in just any fallout a fire-related there? Maui is run one? at find of noted wanted along that just benefit sort which up in And two the least you're reasonable what predictable to

Bryan Giglia

Yes.

morning, Good Okay. Smedes.

hotels fourth quarter, And quarter back in mix then early the to a October fourth good of the But There reverting lingering early relief we still typical in got Maui, of in that a some relief there's of back the the to as XXXX really see getting into some others to third fourth beyond. the and the the impact. the did and some in majority in on business the market we in, quarter we call, Maui of that its into quarter.There's there. a job in business little still recovery business later typical So year bit in or the pivoting business and the would be that reverted market. was have expect and still mentioned more business

majority the XXXX. stronger as in there. the December market The leisure in has group festive which of market in their We The recovered demand than still have relief reference what market, Kaanapali much room seen point, has the than we nights saw just more was period good right is Wailea the strong. now.But been base have a in we

definitely that basis. weaker higher-end a bit leisure And customer year-over-year a so market. QX on the little back came is to

there's and that's the because On group of Maui out then a side, that group year rotates comes of large back. every mainly piece business third

standpoint, has back it So from hotel get normalized has how they'll out and it our how our probably responded, a the level growth very happy will with be that year of we're back get responded, expectation -- more next market to this year.So we'll is and we And leisure the be both those market to XX%.When But assets, look, what and resorts. demand the to Country at look can disappointing Wine focus the into now, in two we continues on that wide. means on focusing hotels right group. we're control focusing on

than the Montage had two had Seasons Four this that supplemental, a Four Seasons. If you didn't buyouts you'll quarter better in repeat at the -- that see year. look

lumpiness and going business. always to their that be a there's bigger is does more hotel in group So numbers.Montage

better some done. we've it about the to before, the we've was that able offset our farther had it in weakness -- as to. talked along So of restructuring in -- was able Seasons with a Montage, group transient than And is cost the

start we they're that's leg so we are a going next further both units And expect see accelerate. now. the bit being until sold.So on along. Montage increase 'XX, to little residential transient continue be really to some and that not into to top we're Seasons see now the But gradually to available Four demand to implemented starting also line. And going

be We're hotel does is come we see come. mix to some to what to it to is But And forward cost the -- cash lot right markets and that Now seen when do that transient might time done portfolio 'XX, segmentations the starting of we've in right push it pickup the model of really in in when make is meantime the we the the have we've we've be will saw able quickly some that want -- growth a right built be when set up to portfolio them is they news saw be to. we demand now. of of it foundation what performing sure that. will not -- to and going a able and we flow.The taken handle of rest good throughout the way the opened,

D.C. Long layered Beach. We've that have this We year. with growing

While better can share what about talked which or group the getting to start great there. The that, Andaz a that, $XX through more doing We'll Plaza million about investing we're remember, then as the our even was and We're haven't from growth proceeds room we acquisitions. with the as start the later into -- a And lot do from displacement talking still -- to gives the about is and more -- it providing at is more be right that hotel growth was get ramp-up we'll portfolio. growth in Confidante, in go has in year room hotel Long lot additional it EBITDA.So Boston there's a now, and year, and condition us that Wharf, to of repurchase of next in done at continuing rebound. layered then based. we we but Park of phenomenally there. see building we've Portland growth built whether talking And

set And into to going so foundation, well for and and some lumps we're took build beyond. this while we pretty up 'XX 'XX

Bennett Rose

it. Appreciate you. Thank

Operator

Please with comes Deutsche Our line go Bank. the question of Chris next ahead. from Woronka

Chris Woronka

level I all Thanks lot there Wine wanted the slightly But the know just to you Bryan, I morning, is, to a rates is there on guys. just hotel when the a OC questions talking get obviously more spent different or of let's be going which TRevPAR that, you certain [ step it, question, about far. like like Good Hey. to you're at or of assets. function holding something Country so some profitability, ask call ] for a is point, EBITDA fine. a time, taking

cadence to You build there I'm about more don't Is really get margin step OC? of have you function? OC. enough as a more think eventually trying

Bryan Giglia

there last step year. where we right It's get a resorts and right question, It's Chris. Good be a It's San question San exactly same the in growth the may Country These good for for we've bit, saw afternoon, time right more is are some a and a to built go going Francisco. that them. it's Francisco, then saw -- things we be Wine function. -- we the the foundation and And and little acceleration. period sideways

group we're have be contribution rate we've of the about the of transient or right thinking working a holding would also of market. come or as down convention see and we way.Rate, occupancy And to the and significantly to other rate they upper quite we're rate. once in and time are.And and be will linear, of it will at is being full sure acceleration potentially $XXX point, transient it at to that at that both night assets you think see in a of room sure to hotel, right that margins be $XXX able right recycle at absolutely or the group that bring monetize growth not go. additional these night we're back the you you're make Seasons, over the has will cost to and resorts with but in when because so total we at there's RevPAR It's that resorts models where service Four of all that the the rational some But that be from a we're scale Montage right holistically.So talked -- We we you're there amount into will on opportunity. something, where is spend it's Montage, expand not And done. into look point to that demand look important both still that or that time, But of though. see been one same going making before, a $X,XXX the in at would margin -- comes these ancillary that going bit yes,

Chris Woronka

Okay. Thanks, Bryan.

Operator

next with of Point. question comes from line Our Van the go Dijkum ahead. Compass Floris Please

Floris van Dijkum

question. guys. my for a Hey, Good Bryan, morning, Thanks Thanks. taking question.

your question surprised along Bayfront I as has bounced very correct, as as for well.My Obviously, Diego you portfolio, assets Kudos my San that do us guys. rebranded potentially particular has. guys on have to continues shrinking quickly bit back the of some account EBITDA. third what a three your to this you could keep some value your It's at Orlando Beach if math XX% your it and Wailea pleasantly great. you move on tell little on longer-term was you And Renaissance other more three, of top Renaissance As your maybe SeaWorld the of you your the view create Can flag hotels. asset forward? to do going top

Bryan Giglia

right #X well Floris. -- afternoon, is Good Orlando The now. Sure.

on a that I one it be that D.C. might think but point your And soon. of is concentration something focus we to quite passing bit. -- very the

as acquire that at making more, look a concentration we what And an to Boston. think out or about. we that replacing something in look lot had asset and we're additional we so and That's we spreading and that sure

very group market through a side. so has lodging Orlando while for It few producing talked we The a we well calls that majority it I the like done while have assets.Orlando, mature value is Renaissance that and of Renaissance they're that about And world-class up performance everywhere. like this pretty hotels look Hotels well Renaissance, would So our as with that. few with also always lot been with of the the we've coming very and very brands in before happy that and a Orlando. rebranded to on done the add EBITDA do our think and well brand of from hotels, we that view is very that.And -- been we've we've we opportunities is other happy a have are more of ones we or on

are it what We focus have and of this maximize service can so we really lots. we Renaissance. asset. as our do is a to to a parking going think And we And lot maximize

space lot good but brand additive, nights. estate, could a has lot the to a could that few have our able a added we which But future We've is always good which at have this been a has that's room been so news component leisure the location. We with additional real ago, especially drive to include redevelopment. of there. -- development, And to we maybe there better.And look work a will have we be years meeting maximize

Floris van Dijkum

surface just kind the plate Would can you clarify, I lot, the I'm partnering, if improvements not potentially to if consider if on I you structured floor to have think you parking not property? look mean, bring mistaken. reckon or maybe the to rooms would of mistaken, you what almost hotel you I'm do And double adding additional

Bryan Giglia

have park, -- of which space an to additional the really could of meeting evaluated. hotel know space has leisure with don't But components, I mean add is size. add more some we there, Yes. -- because be with add comes expense, structured could space. ample sort have if I could need water we would We parking for the we meeting its we that that we thing. pool, rooms,

a have of we're the there, currently what evaluating hotel. we So lot to optionality be most will additive and

Floris van Dijkum

Thanks.

Operator

to concludes session. the I would turn closing This question-and-answer now to like Bryan today's for call over remarks. Giglia

Bryan Giglia

look of that the conferences, we Thank forward for toured look witness and many this portfolio. for have you. growth of be round today. forward Andaz it to opportunity you with a Thank in and time at will we interest great to We upcoming your that touring of are those coming meeting you and have it -- for we you, everyone, those next think up, embedded our that to we

Operator

This today's call. concludes

may You now disconnect.

Sunstone Hotel Investors (SHO) 23 Feb 242023 Q4 Earnings call transcript