ALISO
VIEJO, Calif., Dec. 6, 2023
/PRNewswire/ -- Sunstone Hotel Investors, Inc. (the "Company" or
"Sunstone") (NYSE: SHO) today announced that its Board of Directors
has declared a fourth quarter dividend of $0.13 per share of common stock. The fourth
quarter dividend includes the Company's recently increased
recurring quarterly dividend of $0.07
per share plus an additional $0.06
per share to distribute more of the Company's expected taxable
income for 2023. The dividend will be paid in cash on January 16, 2024 to holders of record as of
December 29, 2023. The fourth quarter
dividend, together with the dividends paid in the first three
quarters of 2023, represent an annual yield of 3.0% based on the
closing stock price as of December 5,
2023. The dividends paid in 2023 include the taxable income
generated from the Company's operations but do not include any gain
related to the recently completed sale of Boston Park Plaza. The
Company is evaluating opportunities to reinvest the net proceeds
from the sale through a tax deferred exchange. If an exchange is
not completed, the Company will utilize existing tax attributes to
offset any gain resulting from the sale and retain the net proceeds
for future investment. In addition to dividends, the Company has
also returned over $55 million of
capital to common stockholders to date in 2023 through its share
repurchase program.
About Sunstone Hotel Investors
Sunstone Hotel Investors, Inc. is a lodging real estate
investment trust ("REIT"). Sunstone's strategy is to create
long-term stakeholder value through the acquisition, active
ownership, and disposition of well-located hotel and resort real
estate. For further information, please visit Sunstone's website at
www.sunstonehotels.com. The Company's website is provided as a
reference only and any information on the website is not
incorporated by reference in this release.
For Additional Information
Aaron Reyes
Chief Financial Officer
Sunstone Hotel Investors, Inc.
(949) 382-3018
Forward-Looking Statements
This press release 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," "may," "plan," "predict,"
"project," "should," "will" and other similar terms and phrases,
including opinions, references to assumptions and forecasts of
future results. Forward-looking statements are not guarantees of
future performance and involve known and unknown risks,
uncertainties and other factors that may cause the actual results
to differ materially from those anticipated at the time the
forward-looking statements are made. These risks include, but are
not limited to: we own upper upscale and luxury hotels in an
industry that is highly competitive; events beyond our control,
including economic slowdowns or recessions, pandemics, natural
disasters, civil unrest and terrorism; rising hotel operating
costs, including wages, employee-related benefits, food costs,
commodity costs, including those used to renovate or reposition our
hotels, property taxes, property and liability insurance and
utilities may not be offset by increased room rates; system
security risks, data protection breaches, cyber-attacks and systems
integration issues, including those impacting the Company's
suppliers, hotel managers or franchisors; a significant portion of
our hotels are geographically concentrated so we may be harmed by
economic downturns or natural disasters in these areas of the
country; we face possible risks associated with the physical and
transitional effects of climate change; uninsured or underinsured
losses could harm our financial condition; the operating results of
some of our hotels are significantly reliant upon group and
transient business generated by large corporate customers, and the
loss of such customers for any reason could harm our operating
results; the increased use of virtual meetings and other similar
technologies could lessen the need for business-related travel,
and, therefore, demand for rooms in our hotels may be adversely
affected; our hotels have an ongoing need for capital investment
and we may incur significant capital expenditures in connection
with acquisitions, repositionings and other improvements, some of
which are mandated by applicable laws or regulations or agreements
with third parties, and the costs of such renovations,
repositionings or improvements may exceed our expectations or cause
other problems; delays in the acquisition, renovation or
repositioning of hotel properties may have adverse effects on our
results of operations and returns to our stockholders; accounting
for the acquisition of a hotel property or other entity involves
assumptions and estimations to determine fair value that could
differ materially from the actual results achieved in future
periods; volatility in the debt and equity markets may adversely
affect our ability to acquire, renovate, refinance or sell our
hotels; we may pursue joint venture investments that could be
adversely affected by our lack of sole decision-making authority,
our reliance on a co-venturer's financial condition and disputes
between us and our co-venturer; we may be subject to unknown or
contingent liabilities related to recently sold or acquired hotels,
as well as hotels we may sell or acquire in the future; we may seek
to acquire a portfolio of hotels or a company, which could present
more risks to our business and financial results than the
acquisition of a single hotel; the sale of a hotel or portfolio of
hotels is typically subject to contingencies, risks and
uncertainties, any of which may cause us to be unsuccessful in
completing the disposition; the illiquidity of real estate
investments and the lack of alternative uses of hotel properties
could significantly limit our ability to respond to adverse changes
in the performance of our hotels; we may issue or invest in hotel
loans, including subordinated or mezzanine loans, which could
involve greater risks of loss than senior loans secured by
income-producing real properties; if we make or invest in mortgage
loans with the intent of gaining ownership of the hotel secured by
or pledged to the loan, our ability to perfect an ownership
interest in the hotel is subject to the sponsor's willingness to
forfeit the property in lieu of the debt; one of our hotels is
subject to a ground lease with an unaffiliated party, the
termination of which by the lessor for any reason, including due to
our default on the lease, could cause us to lose the ability to
operate the hotel altogether and may adversely affect our results
of operations; because we are a REIT, we depend on third-parties to
operate our hotels; we are subject to risks associated with our
operators' employment of hotel personnel; most of our hotels
operate under a brand owned by Marriott, Hilton, Hyatt, Four
Seasons or Montage. Should any of these brands experience a
negative event, or receive negative publicity, our operating
results may be harmed; our franchisors and brand managers may adopt
new policies or change existing policies which could result in
increased costs that could negatively impact our hotels; future
adverse litigation judgments or settlements resulting from legal
proceedings could have an adverse effect on our financial
condition; claims by persons regarding our properties could affect
the attractiveness of our hotels or cause us to incur additional
expenses; the hotel business is seasonal and seasonal variations in
business volume at our hotels will cause quarterly fluctuations in
our revenue; changes in the debt and equity markets may adversely
affect the value of our hotels; certain of our hotels have in the
past become impaired and additional hotels may become impaired in
the future; laws and governmental regulations may restrict the ways
in which we use our hotel properties and increase the cost of
compliance with such regulations. Noncompliance with such
regulations could subject us to penalties, loss of value of our
properties or civil damages; corporate responsibility, specifically
related to ESG factors and commitments, may impose additional
costs and expose us to new risks that could adversely affect our
results of operations, financial condition and cash flows; our
franchisors and brand managers may require us to make capital
expenditures pursuant to property improvement plans or to comply
with brand standards; termination of any of our franchise,
management or operating lease agreements could cause us to lose
business or lead to a default or acceleration of our obligations
under certain of our debt instruments; the growth of alternative
reservation channels could adversely affect our business and
profitability; the failure of tenants in our hotels to make rent
payments under our retail and restaurant leases may adversely
affect our results of operations; we rely on our corporate and
hotel senior management teams, the loss of whom may cause us to
incur costs and harm our business; if we fail to maintain effective
internal control over financial reporting and disclosure controls
and procedures, we may not be able to accurately report our
financial results; we have outstanding debt which may restrict our
financial flexibility; certain of our debt is subject to variable
interest rates, which can create uncertainty in forecasting our
interest expense and may negatively impact our operating results;
and other risks and uncertainties associated with the Company's
business described in its filings with the Securities and Exchange
Commission. Although the Company believes the expectations
reflected in such forward-looking statements are based upon
reasonable assumptions, it can give no assurance that the
expectations will be attained or that any deviation will not be
material. All forward-looking information provided herein is as of
the date of this release, and the Company undertakes no obligation
to update any forward-looking statement to conform the statement to
actual results or changes in the Company's expectations.
This release should be read together with the consolidated
financial statements and notes thereto included in our most recent
reports on Form 10-K and Form 10-Q. Copies of these reports are
available on our website at www.sunstonehotels.com and through the
SEC's Electronic Data Gathering Analysis and Retrieval System
("EDGAR") at www.sec.gov.
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SOURCE Sunstone Hotel Investors, Inc.