Sunstone Hotel Investors, Inc. Provides Update on First Quarter and Full-Year 2020 Guidance
March 05, 2020 at 08:00 am EST
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Sunstone Hotel Investors, Inc. announced that due to uncertainty related to the ultimate impact on travel demand resulting from the COVID-19 virus outbreak, the Company is withdrawing its first quarter and full-year 2020 guidance. On February 18, 2020, as part of the Company's full-year 2019 earnings report, Sunstone provided first quarter and full-year 2020 guidance for certain operational and earnings metrics. Included in this guidance was approximately $1 million of lost revenue resulting primarily from known group customer cancelations related to COVID-19. Since the time this guidance was provided, the Company has experienced a material increase in expected lost revenue from group customer cancelations, which, as of today's date, have increased to approximately $11 million. The majority of the lost revenue is related to business that was scheduled to occur in March 2020. The Company believes that the impact from these trends will most likely result in the Company failing to achieve the previously provided first quarter guidance for net income, comparable portfolio RevPAR growth, Adjusted EBITDAre, Adjusted FFO, and Adjusted FFO per diluted share. The impact of COVID-19 on travel demand continues to evolve and the Company is currently not able to accurately assess the financial impact on its full-year operations. As such, the full-year guidance previously provided on February 18, 2020 should no longer be relied upon.
Sunstone Hotel Investors, Inc. is a real estate investment trust. The Company owns approximately 14 hotels, comprised of 6,675 rooms, located in six states and in Washington, DC. The Companyâs portfolio consists of luxury hotels located in convention, resort destinations and urban markets. It is the owner of Long-Term Relevant Real Estate (LTRR) in the lodging industry, specifically hotels in urban and resort destination locations. The Company's hotels are operated by third-party managers under long-term management agreements with TRS Lessee or its subsidiaries. It is operated by third-party managers under long-term management agreements with the TRS Lessee or its subsidiaries. Its third-party managers include subsidiaries of Marriott International, Inc.; managers of six of the Companyâs hotels; Hyatt Hotels Corporation, manager of two of its hotels; and Four Seasons Hotels Limited, Highgate Hotels L.P. and an affiliate, Hilton Worldwide, and Interstate Hotels & Resorts, Inc.
SUNSTONE HOTEL INVESTORS, INC. 
