Sunstone Lifts Q3 RevPAR 11.4% on Urban Demand

Sunstone Hotel Properties reported third-quarter 2026 revenue-per-available-room growth of 11.4% year over year and raised its full-year outlook.

Updated on Nov. 6, 2026 in Hospitality

Vector editorial illustration of brass room keys and folded linen towels beside a doorway of warm light, evoking hotel demand growth. — Sunstone Hotel Properties reported an 11.4% year-over-year RevPAR increase in the third quarter and raised its full-year 2026 growth outlook to 9.5% to 10.5%. AI Illustration. Upload story photo >

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Sunstone Hotel Properties reported 11.4% year-over-year revenue-per-available-room growth in the third quarter of 2026, reaching $235.22. The company also updated its full-year 2026 outlook to 9.5% to 10.5% RevPAR growth.

Why it matters

The results show continued strength in urban and resort hotel demand across the U.S. lodging sector. Sunstone also reported that its resorts drove RevPAR growth for a fourth consecutive quarter.

Sunstone's third-quarter RevPAR rose 11.4% year over year to $235.22, with an average daily rate of $323.55 and occupancy of 72.7%. Net income attributable to common stockholders was $38.7 million, while the company's full-year RevPAR outlook was narrowed to 9.5% to 10.5%.

The players

Sunstone Hotel Properties

A U.S. lodging real estate investment trust that owns 13 hotels comprising approximately 6,200 rooms across urban and resort markets.

BRE Hotels & Resorts

A hotel investment and management firm that acquired the Hyatt Regency San Francisco from Sunstone for $279 million.

The details

Sunstone said its urban hotels benefited from strong group events and corporate travel, lifting room-night volume, and that each of its individual urban hotels posted double-digit RevPAR growth. The company also sold the 821-room Hyatt Regency San Francisco to BRE Hotels & Resorts for $279 million in August and recycled about 70% of the proceeds into stock repurchases.

August 2026: Sunstone sold the Hyatt Regency San Francisco for $279 million.
Third quarter 2026: Company reported 11.4% RevPAR growth and $38.7 million in net income.
Fourth quarter 2026: Group pace for the urban portfolio is expected to remain strong.
Mid-2027: Phases of the Hilton Key West Resort and Marina renovation are scheduled to finish.

Market Landscape

Sunstone's urban strength extends the post-pandemic recovery in group and corporate travel that has lifted urban hotel performance across the sector. Its resort outperformance for a fourth straight quarter also points to sustained leisure demand in high-end destinations.

For travelers, continued strong urban and resort pricing means higher room rates in these markets. The Hilton Key West renovation's completion in mid-2027 may affect property availability and experience at that location.

The takeaway

Sunstone's results suggest that urban group and corporate demand, alongside resort strength, is keeping U.S. hotel revenue growth elevated into late 2026. Travelers planning stays in these markets should expect firm pricing.

What happens next

Sunstone expects group pace for its urban portfolio to remain up meaningfully as it moves into the fourth quarter, and phases of the Hilton Key West Resort and Marina renovation are scheduled to finish in mid-2027.