Aliso Viejo-based Sunstone Hotel Investors Inc. credited growth in its first quarter results to “solid performances” from its resort properties. Â
“While the strength was broad based, we were particularly encouraged by our resort portfolio, including solid first quarter performance at Andaz Miami Beach,” Chief Executive Bryan Giglia said in a May 5 statement. Â
The real estate investment trust (REIT) reported that revenue per available room (RevPAR), a key industry metric, for its 14 hotels increased 14% during the quarter. The average daily rate was $344.19 and occupancy was 74.1% for the period ended March 31 (NYSE: SHO).Â
Sunstone acquired the Andaz Miami Beach property, previously known as The Confidante Miami Beach, in 2022 for $232 million and fully renovated the resort using funds from the previous sales of three hotels in Chicago. Â
“Our first quarter results demonstrate the embedded growth potential of our portfolio as we benefit from our prior investments and some of our larger markets continue to normalize,” Giglia added. Â
Shares were up 2.4% to $10.27 apiece with a $1.9 billion market cap during midday trading on May 6. Sunstone was encouraged last September to find a buyer or liquidate its assets by its shareholder, Tarsadia Capital LLC.
