Sunstone cuts 2024 outlook by $0.06 per share on San Diego hotel labor disruption
Sunstone Hotel Investors said a labor dispute at its 1,190-room Hilton San Diego Bayfront disrupted business from September and cancelled group events, so it now expects lower full-year 2024 results than its August outlook. The union ratified a renewed contract on October 9, 2024, and the hotel has resumed normal operations. Shareholders face a lower 2024 outlook, with a full update due with third-quarter results on November 12, 2024.
- Full-year 2024 total portfolio RevPAR growth expected 125 to 150 basis points lower than prior outlook
- Adjusted EBITDAre expected $11 million to $13 million lower; Adjusted FFO per diluted share about $0.06 lower
- Union ratified renewed contract on October 9, 2024; hotel has resumed normal operations
- Third-quarter 2024 earnings release scheduled for November 12, 2024