SHO - Earnings call transcript Q4 2024 | 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 Fourth Quarter Earnings Call. [Operator Instructions] I would like to remind everyone that this conference is being recorded today, February 21, 2025, at 1:00 p.m. Eastern Time.

the to turn now will presentation Mr. over I Reyes, Chief Officer. Financial Aaron sir. ahead, go Please

Aaron Reyes

Thank you, operator.

I remind differ risks like call we cause filings would Before begin, which SEC, to those those in statements could projected. are with the including results contains that everyone from subject uncertainties, to to and actual described our materially forward-looking this that

you evaluating our in consider forward-looking factors these to We caution statements.

adjusted information, FFO commentary on property this will including note adjusted also financial EBITDAre, EBITDAre. that the adjusted We and contain level call non-GAAP

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

on which been provided are details section in supplemental, the quarterly in website. and Relations Investor release Additional results available of our our have our earnings

are Robert Robert trends. Officer; Chief on Officer. by activity. today Bryan our some Chief off Investment followed quarter With Giglia, Springer, recent our will and from operations us and Afterwards, start us capital highlights commentary investment will fourth Bryan discuss with the Executive President year, on last call and

the to I of outlook earnings current will our our review provide fourth position finally, our will available questions. summary and results, After remarks, details XXXX. be liquidity of provide for answer the our your quarter And team a

would go I to ahead. that, like over Please call With turn to Bryan. the

Bryan Giglia

FFO full adjusted portfolio quarter, Thank strong you, year Aaron, of and share with EBITDA good our several high headwinds finished end XXXX the and year morning, the fourth at Despite during guidance. everyone. full the adjusted per

investing on which Sunstone further a to and caps which quarter at our include in we strategic returning portfolio, progress off shareholders. capital fourth X The our our objectives, in recycling capital, year made productive

additional XXXX, its benefited the growth these will provide of and shareholders XXXX. in All in company and

reflecting $XXX Regency an recycled a incentives, of successfully sale purchase net first rate capitalization on the Hyatt price the attractive XXX-room Plaza from XXXX we the the half of million Antonio of San Riverwalk Boston earnings. XXXX, Park proceeds after into During X% for

within value-enhancing between opportunities the The state's X addition initial In situated the will in and compelling and hotel This are Riverwalk to the drivers, better to we term. ideal that guestrooms. have identified hotel Alamo, level the the demand already it is has quality center. renovated the location meeting an distance updating of year, the capitalize convention to walking align several leisure of we with the biggest the on yield, the we near space

floor we the up opportunity million enhance lease the new Alamo point offers opening ground as the revenue. Additionally, new a we drive to expect area primary Visitor this will the leading retail $XXX to in access the grounds Alamo and Museum of be spaces XXXX, to additional Center will

year. group on potential Washington, D.C. we grow Overall, Marriott of very future in our see this continue investment, and in and into the last XXXX, pleased the we the have been considerable And our its began year and Downtown, of of which continue invest transient this conversion at ramp-up to business. completed conversion Beach Long of success Building Downtown, we with the end we which The Westin will to growth.

We is next which Beach, the the few also transformation in weeks. Andaz the advanced opening of Miami

as final Beach, guests it due to looks begin mid-March. While challenging up approval the taken inspections earnings phenomenal, than Miami power resort and a the XXXX will bit are Andaz excited The longer to and is welcoming demonstrate process and resort ramps has in we anticipated in permitting XXXX. and a its through very very moving

quarterly $XXX our our shareholders. million XXXX, capital The to NAV. returned other our the Shortly, last share we our in to dividend Robert repurchases will In discount our on of activity. share at element through a capital return and meaningful details work additional is nearly and strategy some of to investment shareholders Miami

more activity dividend shares continue nearly will repurchase opportunistic, share a the XXX or to period. X% provide common of common will at have years, our stock almost million of capital. our return last of outstanding the That of consistent repurchased X start While we remain said, over that

strong to liquidity into position sheet gives as Our we XXXX. balance our us and returns capital ability the enhance move

pleased year our results. shifting quarterly our relative expectations. Now how the to and with to full We performed portfolio were

the well. to experienced showed some disruption higher which due and lingering move leisure Maui Group in banner growth, Corporate Diego, during RevPAR on Westin the XX% our performed group nights year at room the acceleration increase a Wine X% group San continued strike, an a hotels business to rate. labor period. in Downtown Washington, and full year, festive driven Excluding in by business XX% demand leading increase had travel D.C. Convention Country with in

recently grew which the acquired Antonio over in Out-of-room and San strong Hyatt for Regency Group in the increase per XX% spend room. Riverwalk, at year an nearly room X% was the full quarter contribution. business remained banquet Westin up generated at the XX% group at nights impressive $XXX

year, group nights up was and were X%, room up full spend rate San XX%. the out-of-room For X% Antonio was up

we the group the Given the we the year, making are quality meeting and upgrades expect hotel its overall to this to improve continue to build base. space of

compress focused as nearly resulting open nights shoulder rates in RevPAR Orleans the at strength room occupancy of group many in with room allowing we group driving strategically increased XX%, on patterns We Boston saw of combined and saw transient base, filling periods. group up At in fourth urban quarter fourth rates. results growth our similar were hotels, and hotel a XX%. nights our to operators up our where our compressing quarter also our transient in We markets, hotels, New XX%

quarter Marriott recently Long compared XXXX. RevPAR with converted solid quarter to Our had of Downtown Beach fourth XX% a a renovation-impacted up

thesis better it of the with Marriott performance we alignment. Westin are on our the converted together created the this the and reinforces success from from We have pleased of recently with the early value seen contribution D.C., brand

managers we efficiency side, through our continue with to On work costs rising and offset the measures productivity. increased to expense

Our in strike San prior renovation Beach by Diego. and in year the the margin was activity performance Long impacted in

and Excluding only management down to with Andaz disciplined points Miami their speaks minimal effort to which cost these hotels our top in margins even of Beach, be were XX the our line basis growth, efforts. X operators

our today, these drive which revenue year. XXXX help should on to ancillary While rate to will and a that budgets incorporate incremental relative see we setup compelling to expectation higher our higher this wage into total to what last is year, rising growth at margins our costs. have drive seek Based we rates revenues translate certain mitigate hotels, contractual increases operators efficiencies,

we XXXX for outlook from The approximately tailwind the quarters year. with being softest up continues XXXX. XXXX, pace to is are encouraged broad-based should of the portfolio throughout us forward QX in year. and across recent portfolio which the about XX% a with Group for and Looking investments, the provide the benefit to strength

addition the from XXXX Country. at in was benefit half Diego, in In from will Long second comparison of growth impacted from the continued in easy conversions the and growth our to year Wine Miami, labor in the completed the Beach and strike portfolio San by which

grow look Antonio and at acquire and our We to in to yield faced transaction opportunities in challenging we investments high-quality great recycle San new to XXXX, market with maintained value. liquidity existing a asset with being and execute to a Despite per earnings a share. were current significant and opportunity value into able add

our which to strategic as up, smooth To outperform our the not objectives expect things We asset XXXX, or sum to liked, additional to well was X as approach and allocation would repurchases. capital executed sales, we are continue disciplined in XXXX. could acquisitions while in XXXX have we And now we include in positioned XXXX. share path

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

portfolio. further our capital will to and We thoughtfully sheet by available grow recycling strategy utilizing balance capacity advance our liquidity the

objectives These years. further the coming capital actions support should return our in

And I'd Robert, and some upcoming our investments. call like the turn thoughts on ahead. renovation additional to capital go with to please progress over give that, Robert to

Robert Springer

Thanks, Bryan.

The $XXX have capital earnings provide. invested we they wrapping and majority XXXX, recently into had multiple we be soon to projects will these now or we of up, forward as the During portfolio look will initiatives our underway. benefit million

you and displacement. minimize nearing rooms the refresh on As at Beach completion renovation lobby periods a with have last are been Resort performing we to quarter, peak we shared the Wailea and have around work

multiple As units the village combining rooms scope, few part with a from of bedrooms. in area to ranging and oceanfront are X living configurations to we a to create them style sell residential generous the ability X kitchen, X

group feedback X compete the with already business. just and to While win come been the higher luxury neighbors its and has have online, quality better hotel are first early allowing they great,

down process. winding As where made final the substantial work Bryan is steps as guests noted and to resort the Miami, is have welcome preparing progress we inspection cumbersome construction the in and approval through in we earlier,

product pleased very achieved transformation with the we have of are at property. We this finished the degree and

We few teams a and weeks. resort now opening look training in hotel have work, and the in preparation completing the forward to we

be starting more total wrap we In renovating investment space will end levels, meeting up our in capital underway. moderate While still will value-creating should some the the of the we have Antonio, in year. third which XXXX San normalized quarter, the to back will important by initiatives

market guestrooms align is and cohesive more a the a already refresh product our drive the group better to hotel will them the great more in of While business. areas teams shape, renovated sales allow and meeting with

planning Diego, a of Hilton space renovation Bayfront. the San stages meeting in In are we our for the at

quarter. have X level the or for will of to year the While than begin we already we finalizing up it earnings less be not will benefit in still are in disruption work we we have the completing. result will fourth would investment last Overall, instead and get expect the late the until coming years, wrapped we soon the the of details, planned in

opportunities we market look to updating was not progresses. to earlier, robust out to had continue forward recycling progress capital but to As deploying We the considerable year you alluded hoped, by Bryan we as further investment seek the as and capacity. as in growth transaction our our drive on XXXX

that, to ahead. go With over it Please Aaron. turn I'll

Aaron Reyes

Thanks, Robert.

at results as in-line ancillary earnings for the a the of tailwind stronger served growth. revenue, quarter level to savings across management expectations Our and ahead corporate revenue the as in portfolio rooms expense fourth better came

diluted repay $XXX per JW the Orleans. the and at we Full loan proceeds $X.XX share, million and end New our the of guidance provided both drew was the FFO the on end year quarter, was recently mortgage most previously to arranged Prior high to were the term which EBITDA of fully Marriott million ranges. of our of $XXX utilized

and debt this sheet our Following balance of flexibility. our all is significant refinancing, unsecured, provides

don't options, maturities XXXX. any have our we extension debt until of Inclusive

including equivalents, As restricted nearly our our we $XXX cash year, on had of which, to liquidity. nearly of we our the cash end total of facility, of capacity total $XXX equates full credit together the cash. million with And cash, and million retained

equity trailing our earnings. as and Our this to year-end, the net realize and X.Xx growth moderate as through move of EBITDA in preferred stood will at debt the downward and we continue year to expect we

range morning as initial growth on Included in see this our based to our portfolio are for XX% fact, strength the we on which XXXX. of expect increasing guidance, to compared In be of only details XXXX. our that our would from and net earnings we leverage illustrates our release the the will today, what sheet. outlook total capacity X.Xx, Based of midpoint our further RevPAR XXXX balance X%

the is multiple made X RevPAR if Beach growth portfolio debut line to X% still we remaining Andaz nearly Miami year. X%. exclude growth direct of healthy our a resort, top is we points this a is our of The within add result But projected strong investments even grow this portfolio. to to expected Our have of

will estimate will share adjusted $XXX per growth the XX% our midpoint, $X.XX. this that from from million, We and At to FFO $X.XX range $XXX range of annual to adjusted and year XX%, respectively. reflects full EBITDAre million diluted

that will balanced be While of expected was we XXXX than expect the more portfolio-specific initially some we the what influence will will XXXX, the have industry for cadence growth in overall growth. considerations our distribution for of quarterly

and a expect total first the growth double-digit RevPAR in portfolio, and area balance we of we of the strike easier the Miami the from of the impact that the the For to will for approximately X% QX Beach X% year range Diego. Andaz San opening be the quarter as to in benefit comparison before in from for the increasing QX of experience

quarters. evenly of This In press and included generally the guidance year approximately second across would assumptions spread distribution the EBITDA numbers. approximately the XX% third support of full fourth with the that translate the we or section key first less XX% our XX% to into more our in quarter, XXXX remaining in balance quarter, have release, the outlook

Our of $X comes contributes XXXX. Andaz projections to in and mid-March assume million EBITDA online that million $X in

Given incurred in incurred projected than and the change costs XXXX now in of these initially less timing some for will be that the expect project, preopening XXXX. we items in

Following sale less and XXXX Plaza the interest we balances cash XXXX. income in deposit in proceeds Park earned our redeployment of last the the in Boston than spring change expect to generate rates, we on

As experienced Robert we will recent to noted, years. years the the year capital range meaningfully nature of relative less million this run investment level of have couple our rate the this lower investment and for planned, be million. last the on disruption Based be our in to have in will in expected of XXXX $XX what of and we to earnings $XXX activity is in than we projects

to return of our shifting capital. Now

first of has the a routine for $X.XX Board our share quarter, our I dividend has declared distributions declared and also common Directors quarterly the For preferred securities. Series per H and

we repurchase activity. for discussed earlier was impact return, additional the year ample share does of outlook that additional capacity While any not the retain assume full capital

questions. with now that, we to open And can call the

to So with go that we ask limit that we please Operator, as are participants one many ahead. possible, yourself able to please you speak question. as

Operator

Duane [Operator the line first ISI. Instructions] question of from The Evercore comes of Pfennigwerth

Duane Pfennigwerth

think leisure within XX% about the the guide to the BT you if contribution segment are Andaz about maybe thinking to to how group you you and demand X% X% ex speak wonder want growth, to But assumptions Just that could or underlying within contribution. XX%? RevPAR that

Bryan Giglia

Sure.

feedback on the and from our looking get the our based are hotels RevPAR this So at at hotels this guidance point. it's for year, seeing we what

group very for So the it that XX% We're assumes look pacing the different solid. when year. to at be segments, you above continues

improvement a a year. but seeing continuation standpoint, were continued from strength So more we markets, standpoint, slight group business last end very of transient a solid the performance of and what of continuation from a certain in at of

to year maybe And quarter seeing the last fourth third then Maui. a pickup roughly little bit expecting we in is what with the of leisure and were see in

the comes in And look whether you back and anticipated to were Leisure good but this you a really that guidance, advertising XXXX the at catch. upside some Maui to you it of slower see back-end and the than -- if And put and so and still recovery, to additional some be when that seeing potential recovery is saw and well, we ask, but in some to see really all where very together, it'd down risk markets, festive where or we season segment. with in of not promotion, it year Maui recovery, to loaded multiple last

when assets the if be for and are strongly out portfolio, too, closely us. back you opening. And in that others then upside pick And are are Orlando, where and park were pretty lift, there Andaz a individual markets sector other more would maybe to there, then up growing the new with like growth. some have leisure back you Long that some that Beach are there aligned the you out

well. additional so a to if from that focus should that allows see flow standpoint, And think pretty pickup, cost I And additional really or then on that, costs. revenue we us

Operator

question next Rose of Your comes line from of Smedes CiTi. the

Bennett Rose

of could in were and you are expecting share and where 'XX just of those level hotel the the to wanted wages the to pace property I at XXXX? you, ask or you what benefits us in with pace increases kind

Bryan Giglia

markets. wages X% X%. said and call we the, between agreements year, the in have so -- were and year of mid-Xs. historically were collective between benefits kind last Smedes, Last it, our several settled always oscillating were been Yes, There the that we've that bargaining in

And so of them. this San being Diego one

so in And also. that's Francisco San

happens something be they that's what typically So to the that loaded. is tend front-end

will what agreement. be will life the so over first more year, wage the average And of wages the that than the be

higher to look be we'll you that range, closer 'XX. that if in at X% end to So X% of the

then step-up and historically back range. been back X% in to in that we So from X%, have get below call the, it, bring and will 'XX 'XX down moderate average down we to that definitely then and to 'XX, a where

Operator

line comes Kesten question from Wells next of Fargo. the Your Dori of

Dori Kesten

the be I believe the would you asset? about $X 'XX said are this EBITDA $X How million. about thinking Andaz year, million to that ramp in you for

Bryan Giglia

into into for Dori, 'XX ramp go ramp 'XX the around the into going So as percent and be will then QX, the we should getting the and at where in And March. and XX-ish the looking start into in -- the we quarter, look in ultimately XXs. high ramp off XX% the the 'XX, probably around QX, occupancy probably season the fourth then in

Miami big look February Then you when and at looking months. the next Beach, seasonality year, into of very January are

And $X so we -- EBITDA sorry, stabilization double year, closer as next I'm that EBITDA high this million it, 'XX. we into 'XX call easily get the year, XXs. at, or And that reach if we are for $X million of 'XX, should looking to to into then

Operator

Your the Baird. next question Michael of comes from Bellisario of line

Michael Bellisario

embedded in assuming on the 'XX? growth that going line I I'm assets. improvements and to are in on an there Presumably, tracking you'll the in over employing go against hotels? you're update And just Napa for that these too to bottom top plan? realize these but 'XX give how operational prepared maybe the want at touch what's us then guide assets you're the them much remarks, Again,

Bryan Giglia

Yes, sure.

occupancy had we on side 'XX our information the both available had plan the outbound and more implemented health in Area at had growth EBITDA is this plan Francisco San So the that as going and is hotels Bay knowing tied group of all supplemental, travel to that on side, also and the the good looking be that we the the transient at we we market. to cost

X little EBITDA of million hotels, So we growth. $X over between had the a

So optimal a percentage group mix. that's hotel get on combination what basis, closer the each a is we And -- its to came from pretty that continuing of strong. to believe

That's in probably and away getting goal. we're get in but several that closer to mid-XXs the of in points Seasons. to at Four the to mid-XXs that, occupancy still Montage the And

bit. was group see up. XXX-ish you when that in 'XX, So you'll the a over and Montage see Four down the little for or at numbers X,XXX room Rate Seasons. still general spend nights the in nights range for are room Ancillary

being so And group out yield customer. able to that

and that so well, for much be to target there. went very And we we're where pretty on want

On the of We satisfaction and Seasons. cost out little then over about maintaining started while at very side, at the Montage were get high customer ratings. Four million followed that able of to Montage process the cost the a $X

So to were the we change the process able guest. to changing without impact

continuing million, is A year $X hotels. in Four to additional Seasons, satisfaction. we look on little that definitely upside in it a that leisure into the and in build this at bit to process And now. hotels, surprise base. look was or do we have increase 'XX, that's but we upside will be leisure these guest group a again, work below impact at at these do, When same

each additional growth are of million hotels of have yet, the on that And the another flow growth model these dollars given set will we bottom anticipating line. year. we Even occupancy still this not without of at to banking EBITDA where couple and that cost meaningfully now,

Operator

next Green question the comes Street. of Chris Your Darling from line of

Chris Darling

of in the what's for low guidance high Maui, year? and embedded your range end this to you the back in going can frame Bryan, recovery

Bryan Giglia

expecting group we we what solid pace have our is to up. this -- year, The that Yes. are is continue

segments Maui, target And group context XX,XXX. -- just have in XXXX, to give about our in a about as at different you we room year. for this ran of have nights the XX,XXX We we

little happy Group from is. group group was we're with bit So perspective, the strong, a before, than business that incentive pretty where a demand maybe remains there but less

transient or for a that From you But of -- a are been we temporary a to increase in they and any with -- just operating be Kaanapali it's for taking they're the look familiar to going those just and the other market step island out of is now. very now any be little leisure standpoint, bit of base those a that back of is customers half leisure or island, of more second going that's sort the an can where -- group expect the if can have the lift getting that is things of to living to that they function. see and year. part

And to and the get of in additional then back, Kaanapali bring will airline Wailea. on to get ticket has business people into base island, on which that people which which its then will prices more result so help lift, will more the

our to expectation of that, bit bit year. we maybe so of a a And is time little that see and little take going that's this

again, in so and then spring of where be top even break there range, is would midpoint, if some too. the island And maybe summer our but our -- that end to up, picks definitely that of our excess and travel our additional of

Operator

comes of Woronka question of Bank. next Chris line Your Deutsche the from

Chris Woronka

I we your little talk Renaissance was hoping Orlando. bit a about could

converting it kind a it others. the more of I versus to This on a you the You sold margin. there the few noncore? a kind know hotel, of Or us plan. lower you bit average, little longer could guys on little renaissances RevPAR bit had Anything success good something that? in the it's maybe your little portfolio. -- do a I 'XX lower a don't there Is other couple had is bit tell of you capital see term?

Bryan Giglia

Renaissance the than said the hotels with customers the and not well after. look, as on always a definitely you're going of is Chris, we bit have depending well that hotel one and more does with very have Yes. done investments found transient guests maybe we've the group Sure. work And type our customer. through being rebranding our and that other little X seasoned what

a the transient went we with we for back 'XX what but D.C., would clean it, be to in year 'XX, happened from index at of call last, had comparing occupancy of in the look year full at index an saw it pickup, much, rate. a to to occupancy you quite end in $XXX with 'XX, When not between XXX% the index at and $XXX Group, compared of XXX% RevPAR transient we compared XXX%. went XX% we a to split also occupancy but as 'XX rate from

there, In So first transient look our at from January XX% better when increased very to an a occupancy see true absolutely which now which customer resulted But Long XX% to it growth. We higher this And that renovation. of we're -- solid saying you're occupancy, Beach, starting from before EBITDA increased was transient a in at rate, QX year compared we're the transient and a in quarter was we index ramp, of now. to rate XX% in went our has our XXX%. to year. 'XX, index January the just decent

go to that So the higher product It able has its space that to When or being at now customer. to Beach is service lot and Marriott competitive and for a rated always that space also can also. a group of been to superior It hotel. Orlando fantastic meeting we D.C. trade-off of huge has see we're feeding atrium set. a a space meeting Orlando, after have both starting helps Long look

the so And And transient side. always parks, between location there. strong well because done on in maybe of as its the we've very not X

miles, much other have which the Now do parks. we is this away, than closer park miles a opening new X X.X year,

to So now more we're including proximate much the convention proximate, center. being

done then And what try we've a in just at want do past should a available the that if the it's what you that think at ability brand the to then So and because work rate, there out our also customer help a available get Marriott better what's and is we not in remember, to market. partners better -- that if and transient it's over the do, with figure look to if there hotel. will there at we transient we is

look definitely would at we And that.

observation, As definitely far CapEx amount. to to as is back your coming the 'XX down normalized

makes down it maybe plan for could for the it something road. at So if it's something not and exploring in but looking be we're the 'XX, maybe that definitely sense,

Operator

question comes Van Compass next line Floris Your Dijkum from Point. of of the

Floris Gerbrand van Dijkum

have big I picture a question. Bryan,

you've relatively You understand easy company hotels. guys are got because to XX a

Your top of X hotels EBITDA. XX% generate over

it's Your, I once will supplant your think, obviously, stabilized. Andaz Boston hotel

X your Or are Would time, years' fewer pretty more with you how see have that like to to you concentration? you you do you more happy think As today? that sort of like would in hotels Or ideally hotels what income? to meaningful? your broadly about portfolio are have have construction, diversify you

Bryan Giglia

I very going capital. good XXXX the way San Floris, at in years able of is like it's a our Antonio. our in think main we're very very next to that and do several to interesting question. it's year what happy to for pick strategy transaction the really and a with challenging get was And portfolio look that. we the with We and happy our spot early in the done recycle focuses one a to year, And look were

to with a on and smaller incredible The as of company the industry moved being an makes the and really liquidity, we're able and opportunities balance than sheet year great buy back our pivot more acquiring. advantage shares take sense turned year for relatively when and quickly that

where than the really happy a year expectations other would And much ended lower market the And mistake end have the up beginning at are transaction at some thought. of lot transaction that the been stretch at year at things and to didn't large year, was of think and we to the the we're saw happening what the earnings the chances than as a because hotel we do very wasn't been would a try the it end I we not -- have would of there of have maybe that transactions. time the

right more we're made environment, decision to either capital rapidly allocation In are functioning approaching. which or a the And we at getting so think that time. we transaction I

transactions. very debt world the the think of side supportive is of I

bit little more some I economic things but alignment this that think more in that difficult, there's uncertainty year. think I there's makes a operations that

going be portion take to require and would environment, and that have aware take is some or with. to going which or our major a going we that churn forward our portfolio that our to portfolio. of going more wins invested And of happy In importantly, take time assets outlays of that to a returns with to to capital that in disruption, lot would on a size. lot limited of or lot get to a of be we've a we're ability We're want value want we're add

of And if of so gives which -- mass, have that like And to it bit same a take that, if could I at that think going helps large forward, some end and portfolio, assets. we a the that a And capital. minimum at we more size, turn X we recycling the the the large take very assets, but accelerate would asset then out be we some into means the would think of I day, concentration us little too. that

locations. of end it's of day, concentration, if especially we're afraid the the though, At not in fantastic

recycle more. should your of what question, the And think want cost on ongoing that a yes, market So we that given And an we that's do. answer that's something to I basis. look makes be we to sense, and to doing capital we'll think would

Floris Gerbrand van Dijkum

peak. Diego. the year? strike able That they you've because had result you've later Just on recycled that a probably makes obviously depressed perhaps Maui, San this you we view to relative as had in to those in wildfires slight as less other levels -- recycling have EBITDA both be Should assets hotels would that of a the --

Bryan Giglia

we're we capital I mean, conversations, in always mean, allocators. are I look,

about different people different Maui while hotels side, Wailea a to time. hotels all I talking the is leisure and in in -- the always their on would done in still there. portfolio recovery portfolio has EBITDA to we're on as we think our still path can at it not and levels very well maybe or as high above 'XX, a we get and but back is 'XX was So

That's estate. very valuable scarce of a and real very phenomenal and piece

other less of than the that think I Wailea probably little so bit stock maybe And is value a volatile hotel things.

would it's that asset. a Maui just is preclude that, say I So still that's very wouldn't liquid --

EBITDA will we're to center. giving it's that hotel. It's bounce majority phenomenal location the year, Diego and and a the efficient next very this a convention of back, back San

look, see table. being and don't all up so off think evaluation, of And hotels the our for I always anything I are

Operator

next Your Securities. the comes of Truist Patrick from line with Scholes question

Charles Scholes

Great.

wanted as Sorry question the at if missed in to growth? in are as end far baking here. to just total this, guidance expense your I midpoint What I sneak of you a the

Bryan Giglia

year. little bit estate on before Patrick. Very the it range, then labor. of is expenses, have the taxes ticket through for we expense growth, X%, We've a Yes. are the we're that big in higher halfway a total other real bit. sneaky, And renewal mentioned kind X.X% easing Insurance,

get the pretty is down has and benefit So well. portfolio of coming located that well we last done pretty our still from And year.

that together, when So you mix But we this I utilities our don't that a bit X% renewal maybe anything think higher. then will And X.X%. than year. all we're I be think more think average to the are little

Operator

will further ahead. remarks. turn no time. Bryan at back the final closing Please to I for go call are over There questions Giglia this now

Bryan Giglia

many Thank their show to you conferences meeting of you. Andaz and I forward for the at you. in time many interest company, very to at tour which we of excited upcoming Miami property of everyone Beach, you want upcoming look and we're the thank and with to

Operator

that thank and for We call. that your conference gentlemen, and your concludes participating you Ladies disconnect please lines. you ask

Sunstone Hotel Investors (SHO) 21 Feb 252024 Q4 Earnings call transcript