Sunstone Hotel Investors, Inc. · NYSE:SHO
Sunstone Hotel Investors — Investor Presentation (May 2024)
22 slides from Sunstone Hotel Investors's investor presentation, May 24, 2024
Slide 1: Company Presentation May 2024
. ° c ° i c 4 Ai ° COMPANY PRESENTATION MAY 2024
Slide 2: Forward-Looking Statements
FORWARD-LOOKING This presentation contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,”
Slide 3: Recent Highlights
RECENT HIGHLIGHTS Marriott Boston Long Wharf QI 2024 Earnings: Generated Adjusted EBITDAre of $55 million and $0.18 of FFO per share in Q1, in-line with expectations and ahead of consensus estimates. Hyatt Regency San Antonio Acquisition: Acquired the best- located hotel in the market. Net purchase
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS High-Quality Portfolio Focused Strategy Balanced Investment Prudent Balance Sheet Commitment to Corporate Responsibility Well-located real estate with a balance of convention, resort and urban assets Investing in our portfolio, capital recycling, and returning capital to shareh
Slide 5: High Quality Portfolio
HIGH QUALITY PORTFOLIO Geographically Diversified Across Major Convention, Destination Resort and Gateway Urban Markets 48% 15 HOTELS m Resort = Convention = Urban PORTLAND 2% © BOSTON SAN FRANCISCO & 8% WASHINGTON, WINE COUNTRY Oy D.C. LOS ANGELES 3% @ Greater than 10% @ Between 5% and 10% Less tha
Slide 6: Value Creation Through Capital Allocation
VALUE CREATION THROUGH CAPITAL ALLOCATION Focused Corporate Strategy We focus on three priorities which we believe will lead to value creation and superior shareholder returns: INVESTING IN CAPITAL RETURNING CAPITAL OUR PORTFOLIO RECYCLING TO SHAREHOLDERS Montage Healdsburg
Slide 7: Washington, DC Downtown
W AS H I N G T O N , D C DOWNTOWN
Slide 8: Washington, DC Downtown
W AS H I N G T O N D C DOW NTOW N • • • • •
Slide 9: Investing in the Portfolio: Marriott Long Beach Downtown
INVESTING IN THE PORTFOLIO Value Creation Through Brand Conversions: Marriott Long Beach Downtown MX MARRIOTT LONG BEACH DOWNTOWN * Complete renovation of the former Renaissance Long Beach and conversion to the Marriott Long Beach Downtown in March 2024. * Investment thesis is similar to Washington,
Slide 10: Andaz Miami Beach Repositioning
ANDAZ MIAMI BEACH RENC Value Creation Through Repositioning MIAMI BEACH ANCAZ. * Transformation of The Confidante Miami Beach to Andaz Miami Beach began in Q4 2023. * Renovation will touch all aspects of the resort including guestrooms, common areas, food & beverage outlets, backyard recreation area
Slide 11: Andaz Miami Beach Renovation Underway
ANDAZ MIAMI BEACH RENC Renovation Is Underway and Expected to be Complete in the Fourth Quarter of 2024 * Renovation work began in late 2023. The Investment Overview ($ in millions) resort suspended operations at the end of March 2024. All parts of the property are now under renovation. Purchase Pri
Slide 12: Andaz Miami Beach Renovation: Rational Underwriting
ANDAZ MIAMI BEACH RENOVATION Rational Underwriting Mitigates Risk and Allows for Upside Potential MIAMI BEACH LUXURY AVERAGE DAILY RATES $800 .-.And that the resort will be the value option among the luxury competitive set $600 Our Underwriting assumes a conservative amount of rate $400 growth for t
Slide 13: Andaz Miami Beach Renovation Touches All Parts of Property
ANDAZ MIAMI BEACH RENOVATION Is Renovation will Touch All Parts of the Property and Will Fully Transform the Earnings Potential of the Resort
Slide 14: Capital Recycling
CAPITAL RECYCLING A balanced approach to recycling capital. Harvesting successful investments and redeploying proceeds into superior return opportunities. Harvest New Investment Investment Opportunities Return-Driven Value Add Dispositions Opportunistic Sales Super eres Investment Lifecycle Asset Ma
Slide 15: Hyatt Regency San Antonio Acquisition
HYATT REGENCY SAN ANTONIO ACQUISITION Accretive Capital Recycling — Redeploying Boston Park Plaza Proceeds into Higher ROIC Opportunities * Sold the Boston Park Plaza hotel in October 2023 for $370 million in anticipation of peak earnings and upcoming significant capital investment that would be lar
Slide 16: Returning Capital to Shareholders
RETURNING CAPITAL TO SHAREHOLDERS Meaningful Capital Returned through Dividends and Share Repurchases We have returned over ANNUALIZED DIVIDEND PER SHARE $270 million “ is of capital to shareholders since the start of 2022 through dividends and accretive share repurchases, while still maintaining si
Slide 17: Prudent Balance Sheet Management
PRUDENT BALANCE SHEET MANAGEMENT Leverage Profile Provides Flexibility and Capacity for Future Growth We maintain a lowly levered balance sheet which allows for significant capital allocation flexibility. Incremental earnings growth from our recent investments will further strengthen our balance she
Slide 18: 2024 Outlook
2024 OUTLOOK Our comparable RevPAR growth is among the highest in the sector as we begin to benefit from our recent investment activity. Our outlook has been adjusted to reflect our recent acquisition but otherwise remains unchanged from our prior guidance. ($ in millions, except per share) Current
Slide 19: Multiple Drivers of EBITDA Growth
MULTIPLE DRIVERS OF EBITDA GROWTH Demand Recovery, Recent Acquisitions and Our Investment Activity Will All Contribute to Further Growth Our portfolio has significant embedded EBITDA growth potential just from our unstabilized assets and from those in the slowest to recover markets. There is upwards
Slide 20: Longer-Term Growth Opportunities
LONGER-TERM GROWTH OPPORTUNITIES Mining Value Across the Portfolio Villa conversion and addition of a new rooms tower at the Wailea Beach Resort. Upbranding and rebranding opportunities at certain assets within the portfolio. Excess land and water park addition at the Renaissance Orlando at SeaWorld
Slide 21: Commitment to Corporate Responsibility
COMMITMENT TO CORPORATE RESPONSIBILITY Sunstone Conducts Business According to the Highest Moral and Ethical Standards We take a holistic approach to our business and balance the interests of all stakeholders, including the environment, our employees, our capital providers, the hotel associates, gue
Slide 22: Sunstone Hotel Investors
SUNSTONE HOTEL INVESTORS
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