Filing Flows › Sunstone Hotel Investors (SHO) › Q1 2025
Sunstone Hotel Investors (SHO) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 6, 2025
Sunstone Hotel Investors (SHO) reported revenue of $234M for the first quarter 2025 (Q1 2025), +8% from a year earlier and +9% from the quarter before. Operating margin was 2.3%, net earnings $1.3M (0.5% of revenue).
Sunstone Hotel Investors, Q1 2025: revenue $234M (+8% year over year), operating margin 2.3%, net earnings $1.3M, operating cash flow $32.0M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $234M | +9% | +8% |
| Operating profit | $5.4M | +554% | -56% |
| Net earnings | $1.3M | — | -86% |
| Operating cash flow | $32.0M | +5% | -17% |
| Free cash flow | $3.8M | — | -64% |
What changed
Revenue was $234.1M in Q1 2025, up 8% year over year and up 9% from the previous quarter. Occupancy was the largest line at 62% of revenue. Occupancy added $9.1M year over year (up 7%), 54% of the total change.
Operating profit was $5.4M, a 2.3% margin (down 3.3 points year over year). Operating profit fell $6.8M even though revenue rose $16.9M versus a year earlier, so costs grew faster than sales. Total costs grew 12% against revenue growth of 8%. The fastest-growing cost line was General & admin (+18%). Net earnings were $1.3M, down 86% year over year. The effective tax rate was 1.8%.
Operating cash flow was $32.0M (down 17% year over year), 610% of net income including minority interests. Non-cash charges added back $32.3M of depreciation and amortization and $2.1M of share-based compensation. Working capital and other items used $7.6M. Capital expenditures of $28.2M left free cash flow of $3.8M.
Questions
What was Sunstone Hotel Investors' revenue in the first quarter 2025?
Sunstone Hotel Investors (SHO) reported revenue of $234M for the first quarter 2025 (Q1 2025), +8% from a year earlier and +9% from the quarter before.
Was Sunstone Hotel Investors profitable in the first quarter 2025?
Operating profit was $5.4M (2.3% of revenue) and net earnings $1.3M.