SUNSTONE HOTEL INVESTORS REPORTS RESULTS FOR SECOND QUARTER 2026; Completes Sale of Hyatt Regency San Francisco and Increases Full Year Outlook

About this update from Sunstone Hotel Investors, Inc.

ALISO VIEJO, Calif -- Sunstone Hotel Investors, Inc. (the 'Company' or 'Sunstone') (NYSE: SHO) today announced results for the second quarter ended June 30, 2026 . Second Quarter 2026 Operational Results (as compared to Second Quarter 2025): Net Income: Net income attributable to common stockholders was $26.0 million , or $0.14 per diluted share, as compared to $6.8 million , or $0.03 per diluted share. RevPAR: RevPAR for all hotels in the portfolio increased 9.3% to $263.61 . The average daily rate was $339.71 and occupancy was 77.6%. RevPAR excluding Andaz Miami Beach increased 4.3%. Total RevPAR: Total RevPAR for all hotels in the portfolio increased 7.7% to $434.00 . Total RevPAR excluding Andaz Miami Beach increased 3.0%. Adjusted EBITDAre: Adjusted EBITDAre increased 5.5% to $76.7 million . Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share increased 14.3% to $0.32 . Information regarding the non-GAAP financial measures disclosed in this release is provided below in 'Non-GAAP Financial Measures.' Reconciliations of non-GAAP financial measures to the most comparable GAAP measure for each of the periods presented are included later in this release. Bryan A. Giglia , Chief Executive Officer, stated, 'We are pleased with our performance in the second quarter as both revenue and profitability meaningfully exceeded expectations. Our well-located portfolio benefited from robust leisure demand as a result of increased summer travel and special events which added to sustained strength in group and corporate demand. Given our outperformance in the second quarter and stronger near-term trends, we are increasing our outlook for the year.' Mr. Giglia continued, 'In late July, we closed on the sale of Hyatt Regency San Francisco , realizing an attractive private market value for a low-yielding asset. The implied valuation multiple on the sale is well in excess of where we are trading and allows us to deliver to our shareholders the value of future growth, today. In anticipation of the sale, starting earlier this year, we began accretively deploying a portion of the sale proceeds into the discounted repurchase of common and preferred stock and expect to generate additional shareholder value and grow NAV per share through the redeployment of the remaining proceeds.' Unaudited Selected Statistical and Financial Data ($ in millions, except RevPAR, ADR and per share amounts). See full release at: https://www.sunstonehotels.com/investor-relations/press-releases/news-details/2026/SUNSTONE-HOTEL-INVESTORS-REPORTS-RESULTS-FOR-SECOND-QUARTER-2026/default.aspx (C) 2026 Electronic News Publishing, source ENP Newswire

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