San Clemente-based hotel owner Sunstone Hotel Investors Inc. reported improved third-quarter results but warned of a shortfall in a key profit measure for the current quarter.
For the third quarter, Sunstone reported funds from operations—a measure of profit for hotel and other real estate owners—of $13.7 million, up 33% from a year earlier and matching what analysts expected.
Revenue rose 4.5% from a year earlier to $177.7 million, topping the $157.8 million expected by analysts.
Revenue per available room, or sales from rooms available to guests during the quarter, rose 3.3% to $108.07.
Sunstone owns all or part of 30 hotels across the country.
For the fourth quarter, Sunstone forecast funds from operations of $15.2 million to $19.3 million, below the $22.4 million analysts had been expecting.
Revenue per available room is expected to grow by 5% to 7% from a year earlier.
The company also said it recently completed the handover of eight holders to Massachusetts Mutual Life Insurance Co.
Sunstone has given back underperforming, indebted hotels to lenders in the past year or so as it seeks to acquire stronger ones.
