Sunstone Hotel Investors, Inc. reported a decline in financial performance for the third quarter and the first nine months of 2024 compared to the same periods in 2023. Total revenues for the three months ended September 30, 2024, were $226.4 million, down 8.6% from $247.7 million in Q3 2023. For the nine months ended September 30, 2024, revenues decreased by 9.9% to $691.0 million from $767.3 million in the prior year. The decrease in revenue was primarily attributed to the sale of the Boston Park Plaza, which resulted in a $24.0 million reduction in room revenue for Q3 and a $58.7 million decrease for the nine-month period. Additionally, renovations at The Confidante Miami Beach and Renaissance Long Beach contributed to a decline in room revenue.

Operating expenses also decreased, with Q3 2024 expenses at $210.0 million, down 4.9% from $220.9 million in Q3 2023. For the nine months, operating expenses fell by 6.8% to $621.8 million from $667.2 million. Despite the reduction in expenses, income before income taxes for Q3 2024 was $2.8 million, a significant drop of 82.9% from $16.2 million in Q3 2023. Net income for the quarter was $3.2 million, down 79.1% from $15.6 million in the same quarter last year. For the nine months, net income decreased by 46.8% to $42.4 million from $79.7 million.

The company experienced a loss attributable to common stockholders of $(0.7 million) in Q3 2024, compared to a profit of $12.3 million in Q3 2023. For the nine months, income attributable to common stockholders was $31.1 million, down 54.9% from $69.0 million in the prior year. Basic and diluted loss per share for Q3 2024 was $0.00, compared to earnings of $0.06 per share in Q3 2023.

Sunstone's investment in hotel properties increased to $2.85 billion as of September 30, 2024, from $2.59 billion at the end of 2023. The company acquired the Hyatt Regency San Antonio Riverwalk for $230 million in April 2024, which contributed positively to room revenue. However, cash and cash equivalents decreased significantly to $115.5 million from $426.4 million at the end of 2023.

The company continues to manage its debt strategically, with total debt at $817.4 million as of September 30, 2024, slightly down from $819.1 million at the end of 2023. The effective interest rates on various term loans showed slight fluctuations, with the overall weighted average interest rate at approximately 5.7%. Sunstone has also reauthorized a stock repurchase program, with $428.5 million remaining available for future repurchases.