Sunstone Hotel Investors (SHO)
Market Price (9/3/2026): $11.01 | Market Cap: $2.0 BilSector: Real Estate | Industry: Hotel & Resort REITs
Sunstone Hotel Investors (SHO)
Market Price (9/3/2026): $11.01Market Cap: $2.0 BilSector: Real EstateIndustry: Hotel & Resort REITs
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 6.8%, Dividend Yield is 4.2%, FCF Yield is 9.7% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 20%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 20% Low stock price volatilityVol 12M is 23% Megatrend and thematic driversMegatrends include Experience Economy & Premiumization, Smart Buildings & Proptech, and Sustainable & Green Buildings. Themes include Premium Travel & Hospitality, Show more. | Weak multi-year price returns2Y Excs Rtn is -21%, 3Y Excs Rtn is -37% | Weak revenue growthRev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is 0.0% Key risksSHO key risks include [1] market-specific challenges impacting its portfolio, Show more. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 6.8%, Dividend Yield is 4.2%, FCF Yield is 9.7% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 20%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 20% |
| Low stock price volatilityVol 12M is 23% |
| Megatrend and thematic driversMegatrends include Experience Economy & Premiumization, Smart Buildings & Proptech, and Sustainable & Green Buildings. Themes include Premium Travel & Hospitality, Show more. |
| Weak multi-year price returns2Y Excs Rtn is -21%, 3Y Excs Rtn is -37% |
| Weak revenue growthRev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is 0.0% |
| Key risksSHO key risks include [1] market-specific challenges impacting its portfolio, Show more. |
Qualitative Assessment
AI Analysis | Feedback
Sunstone Hotel Investors (SHO) stock has remained largely at the same level since 5/31/2026 because of the following key factors:
1. Strong Fiscal Second Quarter 2026 Earnings and Raised Full-Year Guidance.
Sunstone Hotel Investors reported robust results for fiscal Q2 2026 (ended June 30, 2026) on August 6, 2026, with diluted EPS of $0.14, significantly surpassing the consensus estimate of $0.08 by $0.06. Total revenues reached $277.1 million, exceeding analysts' expectations of $266.67 million. The company also increased its full-year 2026 guidance, projecting net income between $79 million and $89 million and Adjusted FFO per diluted share of $0.93 to $0.98, an increase from the previous range of $0.86 to $0.94. This positive financial performance likely provided underlying support for the stock, preventing a decline.
2. Strategic Asset Sale and Enhanced Balance Sheet Liquidity.
The company completed the sale of the Hyatt Regency San Francisco for $279.0 million on July 30, 2026, an agreement initially announced on June 23, 2026. A portion of these proceeds, specifically $25.0 million, was used on July 31, 2026, to repay the outstanding balance on its credit facility, thereby restoring its full $500.0 million borrowing capacity. This strategic capital recycling and improvement in liquidity likely instilled investor confidence, acting as a stabilizing factor for the stock price.
Show more
Sunstone Hotel Investors (SHO) stock has remained largely at the same level since 5/31/2026 because of the following key factors:
1. Strong Fiscal Second Quarter 2026 Earnings and Raised Full-Year Guidance.
Sunstone Hotel Investors reported robust results for fiscal Q2 2026 (ended June 30, 2026) on August 6, 2026, with diluted EPS of $0.14, significantly surpassing the consensus estimate of $0.08 by $0.06. Total revenues reached $277.1 million, exceeding analysts' expectations of $266.67 million. The company also increased its full-year 2026 guidance, projecting net income between $79 million and $89 million and Adjusted FFO per diluted share of $0.93 to $0.98, an increase from the previous range of $0.86 to $0.94. This positive financial performance likely provided underlying support for the stock, preventing a decline.
2. Strategic Asset Sale and Enhanced Balance Sheet Liquidity.
The company completed the sale of the Hyatt Regency San Francisco for $279.0 million on July 30, 2026, an agreement initially announced on June 23, 2026. A portion of these proceeds, specifically $25.0 million, was used on July 31, 2026, to repay the outstanding balance on its credit facility, thereby restoring its full $500.0 million borrowing capacity. This strategic capital recycling and improvement in liquidity likely instilled investor confidence, acting as a stabilizing factor for the stock price.
3. Neutral Analyst Sentiment and Consistent Price Targets.
Analyst ratings for Sunstone Hotel Investors largely maintained a "Hold" consensus during the specified period. As of August 15, 2026, seven analysts held a consensus "Hold" rating. This sentiment persisted, with eight brokerages providing a consensus "Hold" recommendation as of September 2, 2026. The average 12-month price targets set by analysts remained close to the stock's trading levels. For instance, an average price target of $11 was noted as of August 15, 2026, with no expected increase from the then-current price, and an average target of $10.67 was reported as of August 28, 2026, indicating a slight forecasted downside of 6.10% from the $11.36 price. This neutral outlook from analysts contributed to the stock's trend of remaining largely at the same level, lacking strong catalysts for significant upward or downward movement.
4. Mixed Performance within the Hotel and Lodging REIT Sector.
While the broader lodging/resorts REIT sector experienced strong performance in the first half of fiscal 2026, yielding a 42.8% total return through June 2026 and outperforming the general equity market, there was a recent moderation. The "Hotel and Lodging REITs" sector, as of August 30, 2026, showed a 3-month return of +8.30% but a 1-month return of -4.53%. Sunstone Hotel Investors itself recorded a +4.66% 3-month return and a -3.82% 1-month return as of August 30, 2026. This overall sector environment, characterized by strong earlier gains potentially followed by a slight short-term pullback, likely contributed to SHO's stable yet unmoving stock performance, as positive sector tailwinds were somewhat offset by recent industry-wide flattening or minor corrections.
Show less
Stock Movement Drivers
Fundamental Drivers
The 2.5% change in SHO stock from 5/31/2026 to 9/2/2026 was primarily driven by a 37.8% change in the company's Net Income Margin (%).| (LTM values as of) | 5312026 | 9022026 | Change |
|---|---|---|---|
| Stock Price ($) | 10.74 | 11.00 | 2.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 986 | 1,003 | 1.8% |
| Net Income Margin (%) | 3.8% | 5.3% | 37.8% |
| P/E Multiple | 53.4 | 38.4 | -28.1% |
| Shares Outstanding (Mil) | 188 | 185 | 1.6% |
| Cumulative Contribution | 2.5% |
Market Drivers
5/31/2026 to 9/2/2026| Return | Correlation | |
|---|---|---|
| SHO | 2.5% | |
| Market (SPY) | 1.1% | 4.6% |
| Sector (XLRE) | -0.6% | 42.4% |
Fundamental Drivers
The 20.7% change in SHO stock from 2/28/2026 to 9/2/2026 was primarily driven by a 107.0% change in the company's Net Income Margin (%).| (LTM values as of) | 2282026 | 9022026 | Change |
|---|---|---|---|
| Stock Price ($) | 9.12 | 11.00 | 20.7% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 960 | 1,003 | 4.5% |
| Net Income Margin (%) | 2.6% | 5.3% | 107.0% |
| P/E Multiple | 70.2 | 38.4 | -45.3% |
| Shares Outstanding (Mil) | 189 | 185 | 2.0% |
| Cumulative Contribution | 20.7% |
Market Drivers
2/28/2026 to 9/2/2026| Return | Correlation | |
|---|---|---|
| SHO | 20.7% | |
| Market (SPY) | 11.8% | 35.3% |
| Sector (XLRE) | 0.4% | 46.6% |
Fundamental Drivers
The 20.4% change in SHO stock from 8/31/2025 to 9/2/2026 was primarily driven by a 146.2% change in the company's Net Income Margin (%).| (LTM values as of) | 8312025 | 9022026 | Change |
|---|---|---|---|
| Stock Price ($) | 9.13 | 11.00 | 20.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 935 | 1,003 | 7.3% |
| Net Income Margin (%) | 2.2% | 5.3% | 146.2% |
| P/E Multiple | 88.9 | 38.4 | -56.8% |
| Shares Outstanding (Mil) | 196 | 185 | 5.6% |
| Cumulative Contribution | 20.4% |
Market Drivers
8/31/2025 to 9/2/2026| Return | Correlation | |
|---|---|---|
| SHO | 20.4% | |
| Market (SPY) | 19.6% | 34.6% |
| Sector (XLRE) | 6.0% | 40.5% |
Fundamental Drivers
The 36.4% change in SHO stock from 8/31/2023 to 9/2/2026 was primarily driven by a 135.7% change in the company's P/E Multiple.| (LTM values as of) | 8312023 | 9022026 | Change |
|---|---|---|---|
| Stock Price ($) | 8.06 | 11.00 | 36.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 1,008 | 1,003 | -0.5% |
| Net Income Margin (%) | 10.1% | 5.3% | -47.7% |
| P/E Multiple | 16.3 | 38.4 | 135.7% |
| Shares Outstanding (Mil) | 206 | 185 | 11.2% |
| Cumulative Contribution | 36.4% |
Market Drivers
8/31/2023 to 9/2/2026| Return | Correlation | |
|---|---|---|
| SHO | 36.4% | |
| Market (SPY) | 75.9% | 56.0% |
| Sector (XLRE) | 29.7% | 47.9% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| SHO Return | 4% | -17% | 14% | 14% | -21% | 25% | 10% |
| Peers Return | 22% | -18% | 30% | -4% | -10% | 42% | 59% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 11% | 103% |
Monthly Win Rates [3] | |||||||
| SHO Win Rate | 50% | 33% | 58% | 58% | 33% | 56% | |
| Peers Win Rate | 50% | 43% | 55% | 40% | 50% | 62% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 44% | |
Max Drawdowns [4] | |||||||
| SHO Max Drawdown | -23% | -25% | -22% | -16% | -36% | -10% | |
| Peers Max Drawdown | -23% | -35% | -24% | -22% | -33% | -13% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: HST, PK, RHP, APLE, PEB. See SHO Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 9/2/2026 (YTD)
How Low Can It Go
| Event | SHO | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -31.4% | -18.8% |
| % Gain to Breakeven | 45.8% | 23.1% |
| Time to Breakeven | 413 days | 79 days |
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -11.5% | -9.5% |
| % Gain to Breakeven | 13.0% | 10.5% |
| Time to Breakeven | 70 days | 24 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -17.2% | -6.7% |
| % Gain to Breakeven | 20.7% | 7.1% |
| Time to Breakeven | 75 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -20.2% | -24.5% |
| % Gain to Breakeven | 25.3% | 32.4% |
| Time to Breakeven | 795 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -46.1% | -33.7% |
| % Gain to Breakeven | 85.6% | 50.9% |
| Time to Breakeven | 342 days | 140 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -24.8% | -12.2% |
| % Gain to Breakeven | 33.0% | 13.9% |
| Time to Breakeven | 43 days | 62 days |
In The Past
Sunstone Hotel Investors's stock fell -31.4% during the 2025 US Tariff Shock. Such a loss loss requires a 45.8% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
| Event | SHO | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -31.4% | -18.8% |
| % Gain to Breakeven | 45.8% | 23.1% |
| Time to Breakeven | 413 days | 79 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -20.2% | -24.5% |
| % Gain to Breakeven | 25.3% | 32.4% |
| Time to Breakeven | 795 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -46.1% | -33.7% |
| % Gain to Breakeven | 85.6% | 50.9% |
| Time to Breakeven | 342 days | 140 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -24.8% | -12.2% |
| % Gain to Breakeven | 33.0% | 13.9% |
| Time to Breakeven | 43 days | 62 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -20.8% | -6.8% |
| % Gain to Breakeven | 26.2% | 7.3% |
| Time to Breakeven | 37 days | 15 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -46.1% | -17.9% |
| % Gain to Breakeven | 85.6% | 21.8% |
| Time to Breakeven | 114 days | 123 days |
| 2010 Eurozone Sovereign Debt Crisis / Flash Crash | ||
| % Loss | -30.0% | -15.4% |
| % Gain to Breakeven | 42.9% | 18.2% |
| Time to Breakeven | 1044 days | 125 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -87.6% | -53.4% |
| % Gain to Breakeven | 703.6% | 114.4% |
| Time to Breakeven | 2087 days | 1085 days |
In The Past
Sunstone Hotel Investors's stock fell -31.4% during the 2025 US Tariff Shock. Such a loss loss requires a 45.8% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Sunstone Hotel Investors (SHO)
Sunstone Hotel Investors, Inc. (SHO) is a real estate investment trust (REIT) specializing in the lodging sector. The company's primary business involves acquiring, owning, and actively managing a portfolio of high-quality hotel properties. Unlike hotel operating companies that operate hotels under their own brand, Sunstone focuses on the real estate itself, generating revenue from the performance of the hotels it owns.
As a lodging REIT, Sunstone currently holds interests in 19 hotels, comprising nearly 10,000 rooms. These properties are strategically selected and referred to as "Long-Term Relevant Real Estate®," indicating a focus on assets with enduring value and market appeal. A significant majority of these hotels operate under globally recognized and trusted national brands such as Marriott, Hilton, and Hyatt, leveraging their established operational expertise and customer bases.
Sunstone's core activities include the strategic acquisition of hotel assets, hands-on asset management to optimize performance, and the renovation or repositioning of properties to enhance their competitive standing and financial returns. Through this model, Sunstone provides investors with exposure to the performance of the upscale hotel market, relying on major brand operators to manage daily hotel operations while it focuses on maximizing the value of its real estate holdings.
AI Analysis | Feedback
- Prologis for hotels.
- The Simon Property Group of hotels.
AI Analysis | Feedback
- Hotel Real Estate Ownership: Sunstone's primary business involves the strategic acquisition and ownership of a portfolio of upscale hotel properties.
- Hotel Asset Management: The company provides active asset management services to optimize the operational and financial performance of its hotel investments.
- Hotel Renovation and Repositioning: Sunstone undertakes strategic renovation and repositioning projects to enhance the competitiveness and value of its hotel properties.
AI Analysis | Feedback
Sunstone Hotel Investors (SHO) primarily engages with other companies for the operation of its hotels. Its major customers are the nationally recognized hotel brands that operate the properties owned by Sunstone.
AI Analysis | Feedback
- Marriott International, Inc. (MAR)
- Hilton Worldwide Holdings Inc. (HLT)
- Hyatt Hotels Corporation (H)
- HEI Hotels and Resorts
- Aimbridge Hospitality
AI Analysis | Feedback
Bryan A. Giglia Chief Executive Officer and Director
Bryan A. Giglia was appointed Chief Executive Officer of Sunstone Hotel Investors in March 2022, having previously served as the company's Chief Financial Officer. He has held various finance roles at Sunstone since joining in March 2004. Prior to his tenure at Sunstone, Mr. Giglia worked in various accounting positions for Hilton Hotel Corporation from August 1998 to August 2002. He earned an M.B.A. degree from the Marshall School of Business at the University of Southern California and a B.S. degree in Business Administration from the University of Arizona.
Aaron R. Reyes Executive Vice President & Chief Financial Officer
Aaron R. Reyes was appointed Chief Financial Officer of Sunstone Hotel Investors in March 2022, succeeding Bryan Giglia. Before this role, Mr. Reyes served as Senior Vice President – Corporate Finance and Treasurer since February 2021, and as Vice President – Corporate Finance since April 2016. Prior to joining Sunstone in 2016, he worked in the real estate and lodging investment banking divisions at Morgan Stanley and Bank of America Merrill Lynch. Earlier in his career, he was a manager with Accenture, a global consulting firm.
Robert C. Springer President & Chief Investment Officer
Robert C. Springer serves as President and Chief Investment Officer for Sunstone Hotel Investors, a position he assumed in March 2022, having joined the company in May 2011. Before joining Sunstone, Mr. Springer was a Vice President in the Merchant Banking Division of Goldman, Sachs & Co., where he focused on lodging investments. His involvement at Goldman Sachs included working with the firm's principal lodging investing activity, primarily through the Whitehall Street Real Estate series of private equity funds and the Goldman Sachs Real Estate Mezzanine Partners fund, encompassing all aspects of hotel equity and debt investing and asset management of numerous lodging portfolios. From 2004 to 2006, Mr. Springer worked in both the feasibility and acquisitions groups at Host Hotels & Resorts. He began his career with PricewaterhouseCoopers, LLP in the Hospitality Consulting Group from 1999 to 2004.
Chris Ostapovicz Executive Vice President & Chief Operating Officer
Chris Ostapovicz joined Sunstone Hotel Investors as Senior Vice President & Chief Operating Officer in March 2021 and currently serves as Executive Vice President & Chief Operating Officer. Prior to Sunstone, he was the Senior Vice President of Asset Management at Host Hotels & Resorts, a company he joined in 2007. Mr. Ostapovicz's career also includes various operating and finance positions at The Ritz-Carlton Hotel Company and Marriott International. He previously served as a board director and treasurer for the Hospitality Asset Managers Association (HAMA) for five years and was one of three faculty members to start Georgetown University's master's in global hospitality in 2014.
David Klein Executive Vice President & General Counsel
David Klein is the Executive Vice President & General Counsel at Sunstone Hotel Investors, joining the company in July 2016. Before his time at Sunstone, Mr. Klein was a Partner in the Hospitality & Leisure group of Dentons, LLP. He also held the roles of co-founding Principal, Chief Administrative Officer, and General Counsel of NYLO Hotels and Advaya Hospitality.
AI Analysis | Feedback
Key Risks to Sunstone Hotel Investors (SHO)
- Sensitivity to Economic Downturns: As a lodging real estate investment trust specializing in upper upscale and luxury hotels, Sunstone Hotel Investors is particularly vulnerable to economic downturns. Decreased business and leisure travel during periods of economic difficulty, recession, or international economic and political uncertainties can lead to reduced demand for hotel rooms and, consequently, lower revenue.
- High Fixed Operating Costs and Inflationary Pressures: The nature of operating upper upscale and luxury hotels entails relatively high fixed costs. The company faces challenges from contractual cost escalations and general inflationary pressures across its portfolio, which can negatively impact operating margins and make it difficult to translate modest revenue gains into consistent earnings.
- Intense Competition: Sunstone Hotel Investors operates in a highly competitive environment. This includes competition from existing hotels, new hotel developments, and alternative lodging options. Such intense competition can drive up property acquisition costs, affect supply and demand dynamics, and pressure pricing, thereby impacting the company's operational performance and profitability.
AI Analysis | Feedback
- The long-term shift towards remote and hybrid work models, which may permanently reduce demand for traditional business travel and large corporate and group events, impacting occupancy and revenue at hotels primarily serving these segments.
- The continued expansion and professionalization of alternative accommodation platforms (e.g., Airbnb, Vrbo) into market segments traditionally served by hotels, including luxury, extended stay, and business travel, intensifying competition for guests.
AI Analysis | Feedback
For Sunstone Hotel Investors (symbol: SHO), the addressable market for their main products or services, which are upper upscale and luxury hotel accommodations and related hospitality services, is primarily the U.S. hotel market.
The U.S. hotel market was estimated at approximately $263.21 billion in 2024 and is projected to grow to $280.63 billion in 2025. This market is expected to reach $395.69 billion by 2030, growing at a compound annual growth rate (CAGR) of 7.1% from 2025 to 2030. Another estimate places the U.S. Hotels & Motels market size at $285.1 billion in 2024 and $286.5 billion in 2025.
Focusing on Sunstone's specialization, the luxury and upscale segment constituted approximately 61% of the U.S. hotel market in 2024.
Therefore, the addressable market for Sunstone Hotel Investors is the U.S. hotel market, with a significant concentration on the multi-billion dollar upper upscale and luxury hotel segment within that region.
AI Analysis | Feedback
Sunstone Hotel Investors (SHO) anticipates several key drivers of future revenue growth over the next 2-3 years, primarily stemming from projected improvements in RevPAR, the significant contribution of recently renovated assets, and continued strong performance across its portfolio, particularly in group business.
- Expected Increase in Rooms and Total RevPAR: The company forecasts a notable increase in its Rooms Revenue Per Available Room (RevPAR) and Total RevPAR. For 2026, Sunstone Hotel Investors expects Rooms RevPAR for all hotels in its portfolio to increase between 4% and 7%, reaching a range of $234 to $241. Concurrently, Total RevPAR is projected to grow between 3.5% and 6.5%, implying a range of $385 to $396. These projections indicate anticipated improvements in both occupancy rates and average daily rates across its properties.
- Full-Year Contribution and Continued Traction from Andaz Miami Beach: The recently renovated Andaz Miami Beach is expected to be a substantial driver of revenue growth. Management anticipates that this property will contribute approximately 400 basis points (4%) to both Rooms and Total RevPAR growth at the midpoint for 2026. Early 2026 performance for Andaz Miami Beach has shown strong occupancy rates above 80% and significant group room bookings, further supporting its role as a key growth catalyst.
- Strong Performance and Growth in Group Business Across Key Properties: Several properties within Sunstone's portfolio are demonstrating robust performance and are expected to continue driving revenue. Resorts like the Wailea Beach Resort and Montage Healdsburg have shown strong RevPAR growth. Furthermore, urban hotels such as the Marriott Long Beach Downtown and The Bidwell Marriott have delivered impressive total RevPAR growth. Crucially, the San Francisco Hotel and Renaissance Orlando SeaWorld are reporting increased group pace and production for 2026, indicating a rebound and sustained growth in the valuable group business segment.
AI Analysis | Feedback
Share Repurchases
- Sunstone Hotel Investors' Board of Directors reauthorized a stock repurchase program of up to $500 million in February 2026, with nearly the full amount available.
- In 2025, the company repurchased $103.6 million of its common and preferred stock, with an additional $7.5 million repurchased through February 26, 2026.
- The company repurchased $27.2 million of its common stock in 2024.
Outbound Investments
- In June 2025, Sunstone Hotel Investors sold the Hilton New Orleans St. Charles for $47.0 million.
- The company acquired the Hyatt Regency San Antonio Riverwalk in April 2024.
- Sunstone Hotel Investors acquired The Confidante Miami Beach in June 2022.
Capital Expenditures
- The company invested $103.0 million into its portfolio in 2025, primarily for the completion of the Andaz Miami Beach transformation and renovations at Wailea Beach Resort, Hyatt Regency San Antonio Riverwalk, and Hilton San Diego Bayfront.
- In 2024, Sunstone Hotel Investors invested $157.4 million into its portfolio, with the majority focused on the conversions of Andaz Miami Beach and the Marriott Long Beach Downtown, and a soft goods renovation at Wailea Beach Resort.
- For 2026, the company expects to invest approximately $95 million to $115 million into its portfolio, largely for ongoing renovation of the meeting space at Hilton San Diego Bayfront and renovation work at Oceans Edge Resort & Marina.
Peer Outperformance in Hotel & Resort REITs
| Ticker | Name | Rev Growth 3Y Avg | P/E | 1Y | 3Y | 5Y | 5Y Gap |
|---|---|---|---|---|---|---|---|
| SHO | Sunstone Hotel Investors | 0.0% | 38.4x | 22.1% | 36.1% | 6.0% | — |
| DRH | Diamondrock Hospitality | 2.4% | 16.4x | 51.7% | 70.1% | 56.4% | +50pp |
| APLE | Apple Hospitality REIT | 3.1% | 21.2x | 32.2% | 29.6% | 40.8% | +35pp |
| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Health Care REITs | 14 | 18.3% | 60.0% | 60.6% | WELL 210% · CTRE 126% · DHC 125% |
| Retail REITs | 22 | 15.2% | 37.5% | 35.7% | IVT 1607% · SKT 166% · SPG 102% |
| Real Estate Development | 6 | -5.9% | 9.2% | 17.8% | JOE 47% · AXR 44% · FOR 33% |
| Other Specialized REITs | 11 | 4.1% | 17.7% | 13.3% | IRM 175% · LAMR 67% · OUT 65% |
| Hotel & Resort REITs ← | 16 | 31.4% | 31.3% | 5.4% | RHP 75% · HST 73% · DRH 56% |
| Industrial REITs | 11 | 20.2% | 18.8% | 4.0% | FR 25% · EGP 24% · PLD 14% |
| Diversified REITs | 12 | 9.9% | 23.3% | -7.5% | CTO 69% · WPC 21% · EPRT 13% |
| Multi-Family Residential REITs | 13 | -1.9% | 3.1% | -18.2% | AIV 13% · ESS -1% · BRT -7% |
| Single-Family Residential REITs | 4 | 0.0% | 2.6% | -18.5% | AMH -11% · ELS -18% · INVH -19% |
| Office REITs | 18 | -2.3% | 15.8% | -28.9% | PSTL 62% · CDP 56% · SLG 9% |
| Real Estate Services | 25 | -17.0% | -14.9% | -29.4% | REAX 834% · CHCI 252% · MLP 50% |
| Telecom Tower REITs | 3 | -10.4% | -10.5% | -44.7% | AMT -33% · SBAC -45% · CCI -52% |
Latest Trefis Analyses
| Title | Date | |
|---|---|---|
| DASHBOARDS | ||
| Sunstone Hotel Investors Earnings Notes | 12/16/2025 | |
| How Low Can Sunstone Hotel Investors Stock Really Go? | 10/17/2025 | |
| Sunstone Hotel Investors (SHO) Net Income Comparison | 08/09/2025 | |
| Sunstone Hotel Investors (SHO) Debt Comparison | 08/09/2025 | |
| Sunstone Hotel Investors (SHO) Operating Cash Flow Comparison | 08/09/2025 | |
| Sunstone Hotel Investors (SHO) Revenue Comparison | 08/09/2025 | |
| Sunstone Hotel Investors (SHO) Tax Expense Comparison | 08/09/2025 | |
| Sunstone Hotel Investors (SHO) Operating Income Comparison | 08/09/2025 | |
| Sunstone Hotel Investors (SHO) EBITDA Comparison | 08/08/2025 | |
| SHO Dip Buy Analysis | 07/10/2025 | |
| ARTICLES | ||
| Small Cap Stocks Trading At 52-Week High | 06/02/2026 |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 16.97 |
| Mkt Cap | 3.4 |
| Rev LTM | 2,021 |
| Op Inc LTM | 280 |
| FCF LTM | 277 |
| FCF 3Y Avg | 251 |
| CFO LTM | 395 |
| CFO 3Y Avg | 410 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 3.5% |
| Rev Chg 3Y Avg | 2.4% |
| Rev Chg Q | 4.1% |
| QoQ Delta Rev Chg LTM | 1.1% |
| Op Inc Chg LTM | 17.7% |
| Op Inc Chg 3Y Avg | 2.2% |
| Op Mgn LTM | 13.2% |
| Op Mgn 3Y Avg | 12.7% |
| QoQ Delta Op Mgn LTM | 0.5% |
| CFO/Rev LTM | 22.5% |
| CFO/Rev 3Y Avg | 21.8% |
| FCF/Rev LTM | 17.5% |
| FCF/Rev 3Y Avg | 16.9% |
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Hotel Ownership | 960 | 906 | 986 | 912 | |
| Food and beverage | 84 | ||||
| Other operating | 72 | ||||
| Room | 353 | ||||
| Total | 960 | 906 | 986 | 912 | 509 |
| $ Mil | 2025 | 2024 | 2023 |
|---|---|---|---|
| Hotel Ownership | 25 | 43 | 207 |
| Total | 25 | 43 | 207 |
| $ Mil | 2009 |
|---|---|
| Operations held for investment | 2,024 |
| Non-segment | 363 |
| Operations held for non-sale disposition | 127 |
| Total | 2,514 |
Price Behavior
| Market Price | $11.00 | |
| Market Cap ($ Bil) | 2.0 | |
| First Trading Date | 10/21/2004 | |
| Distance from 52W High | -7.2% | |
| 50 Days | 200 Days | |
| DMA Price | $11.36 | $9.95 |
| DMA Trend | up | up |
| Distance from DMA | -3.2% | 10.5% |
| 3M | 1YR | |
| Volatility | 20.4% | 23.4% |
| Downside Capture | 39.16 | 47.37 |
| Upside Capture | 31.93 | 60.13 |
| Correlation (SPY) | 4.3% | 34.9% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | -0.28 | -0.17 | 0.05 | 0.54 | 0.63 | 0.96 |
| Up Beta | -0.61 | -0.67 | -0.48 | 0.28 | 0.76 | 1.04 |
| Down Beta | -3.75 | -0.87 | -0.20 | 0.59 | 0.77 | 0.95 |
| Up Capture | -14% | 18% | 39% | 72% | 50% | 69% |
| Bmk +ve Days | 10 | 21 | 32 | 68 | 138 | 427 |
| Stock +ve Days | 11 | 23 | 35 | 70 | 128 | 362 |
| Down Capture | 116% | 26% | 26% | 50% | 55% | 99% |
| Bmk -ve Days | 11 | 21 | 32 | 59 | 113 | 324 |
| Stock -ve Days | 10 | 19 | 29 | 56 | 118 | 362 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with SHO | |
|---|---|---|---|---|
| SHO | 22.2% | 23.4% | 0.79 | - |
| Sector ETF (XLRE) | 7.9% | 13.9% | 0.30 | 40.5% |
| Equity (SPY) | 20.6% | 12.8% | 1.19 | 34.6% |
| Gold (GLD) | 23.8% | 29.1% | 0.73 | 13.8% |
| Commodities (DBC) | 41.7% | 20.4% | 1.60 | -15.8% |
| Real Estate (VNQ) | 9.7% | 13.6% | 0.43 | 44.7% |
| Bitcoin (BTCUSD) | -30.7% | 43.5% | -0.72 | 20.7% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with SHO | |
|---|---|---|---|---|
| SHO | 2.0% | 30.2% | 0.09 | - |
| Sector ETF (XLRE) | 2.0% | 19.2% | 0.00 | 51.6% |
| Equity (SPY) | 12.7% | 17.2% | 0.57 | 60.7% |
| Gold (GLD) | 19.2% | 18.8% | 0.83 | 6.3% |
| Commodities (DBC) | 10.8% | 19.5% | 0.43 | 14.3% |
| Real Estate (VNQ) | 1.9% | 18.9% | -0.01 | 56.7% |
| Bitcoin (BTCUSD) | 9.5% | 52.6% | 0.37 | 30.7% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with SHO | |
|---|---|---|---|---|
| SHO | 1.0% | 33.0% | 0.11 | - |
| Sector ETF (XLRE) | 6.2% | 20.4% | 0.26 | 56.1% |
| Equity (SPY) | 15.1% | 17.9% | 0.72 | 59.6% |
| Gold (GLD) | 12.2% | 16.3% | 0.61 | 0.9% |
| Commodities (DBC) | 7.8% | 18.1% | 0.35 | 21.8% |
| Real Estate (VNQ) | 4.8% | 20.7% | 0.19 | 62.4% |
| Bitcoin (BTCUSD) | 63.0% | 66.1% | 1.03 | 19.7% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 8/17/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 8/6/2026 | -3.3% | -7.5% | |
| 5/5/2026 | 3.2% | 5.8% | 15.2% |
| 2/27/2026 | -3.9% | -0.8% | -7.4% |
| 11/7/2025 | 1.8% | 1.6% | -2.5% |
| 8/6/2025 | -0.1% | 2.6% | 9.5% |
| 5/6/2025 | -3.3% | 6.9% | 1.4% |
| 2/21/2025 | -5.8% | -7.4% | -13.9% |
| 11/12/2024 | -3.5% | -7.7% | 12.3% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 11 | 13 | 13 |
| # Negative | 14 | 12 | 11 |
| Median Positive | 2.8% | 4.2% | 3.4% |
| Median Negative | -2.5% | -3.4% | -7.4% |
| Max Positive | 5.6% | 9.5% | 15.2% |
| Max Negative | -7.3% | -9.2% | -19.8% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 8/6/2026 | -3.3% | -7.5% | |
| 5/5/2026 | 3.2% | 5.8% | 15.2% |
| 2/27/2026 | -3.9% | -0.8% | -7.4% |
| 11/7/2025 | 1.8% | 1.6% | -2.5% |
| 8/6/2025 | -0.1% | 2.6% | 9.5% |
| 5/6/2025 | -3.3% | 6.9% | 1.4% |
| 2/21/2025 | -5.8% | -7.4% | -13.9% |
| 11/12/2024 | -3.5% | -7.7% | 12.3% |
| 8/7/2024 | -2.1% | 1.2% | 2.7% |
| 5/6/2024 | 1.7% | 0.7% | 0.0% |
| 2/23/2024 | 0.0% | 0.7% | -1.5% |
| 11/7/2023 | 0.0% | -0.1% | 2.7% |
| 8/4/2023 | -0.5% | -3.2% | -6.0% |
| 5/5/2023 | 2.8% | 4.2% | 3.4% |
| 2/22/2023 | 3.7% | 4.3% | -10.9% |
| 11/8/2022 | -1.1% | 2.1% | -1.5% |
| 9/14/2022 | 1.5% | -0.7% | -10.8% |
| 6/2/2022 | -1.0% | -3.6% | -19.8% |
| 2/22/2022 | -7.3% | -9.2% | 2.7% |
| 11/4/2021 | 3.9% | -1.9% | -9.6% |
| 8/3/2021 | -1.6% | -1.1% | 1.9% |
| 5/3/2021 | -2.9% | -7.8% | -2.9% |
| 2/19/2021 | 4.0% | 5.8% | 6.3% |
| 11/10/2020 | -2.1% | 7.0% | 8.1% |
| 8/7/2020 | 5.6% | 9.5% | 12.0% |
| SUMMARY STATS | |||
| # Positive | 11 | 13 | 13 |
| # Negative | 14 | 12 | 11 |
| Median Positive | 2.8% | 4.2% | 3.4% |
| Median Negative | -2.5% | -3.4% | -7.4% |
| Max Positive | 5.6% | 9.5% | 15.2% |
| Max Negative | -7.3% | -9.2% | -19.8% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 08/06/2026 | 10-Q |
| 03/31/2026 | 05/05/2026 | 10-Q |
| 12/31/2025 | 02/27/2026 | 10-K |
| 09/30/2025 | 11/07/2025 | 10-Q |
| 06/30/2025 | 08/06/2025 | 10-Q |
| 03/31/2025 | 05/06/2025 | 10-Q |
| 12/31/2024 | 02/21/2025 | 10-K |
| 09/30/2024 | 11/12/2024 | 10-Q |
| 06/30/2024 | 08/07/2024 | 10-Q |
| 03/31/2024 | 05/06/2024 | 10-Q |
| 12/31/2023 | 02/23/2024 | 10-K |
| 09/30/2023 | 11/07/2023 | 10-Q |
| 06/30/2023 | 08/04/2023 | 10-Q |
| 03/31/2023 | 05/05/2023 | 10-Q |
| 12/31/2022 | 02/23/2023 | 10-K |
| 09/30/2022 | 11/08/2022 | 10-Q |
| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 08/06/2026 | 10-Q |
| 03/31/2026 | 05/05/2026 | 10-Q |
| 12/31/2025 | 02/27/2026 | 10-K |
| 09/30/2025 | 11/07/2025 | 10-Q |
| 06/30/2025 | 08/06/2025 | 10-Q |
| 03/31/2025 | 05/06/2025 | 10-Q |
| 12/31/2024 | 02/21/2025 | 10-K |
| 09/30/2024 | 11/12/2024 | 10-Q |
| 06/30/2024 | 08/07/2024 | 10-Q |
| 03/31/2024 | 05/06/2024 | 10-Q |
| 12/31/2023 | 02/23/2024 | 10-K |
| 09/30/2023 | 11/07/2023 | 10-Q |
| 06/30/2023 | 08/04/2023 | 10-Q |
| 03/31/2023 | 05/05/2023 | 10-Q |
| 12/31/2022 | 02/23/2023 | 10-K |
| 09/30/2022 | 11/08/2022 | 10-Q |
| 06/30/2022 | 08/03/2022 | 10-Q |
| 03/31/2022 | 05/04/2022 | 10-Q |
| 12/31/2021 | 02/23/2022 | 10-K |
| 09/30/2021 | 11/04/2021 | 10-Q |
| 06/30/2021 | 08/04/2021 | 10-Q |
| 03/31/2021 | 05/05/2021 | 10-Q |
| 12/31/2020 | 02/12/2021 | 10-K |
| 09/30/2020 | 11/06/2020 | 10-Q |
| 06/30/2020 | 08/05/2020 | 10-Q |
| 03/31/2020 | 05/11/2020 | 10-Q |
| 12/31/2019 | 02/19/2020 | 10-K |
| 09/30/2019 | 11/05/2019 | 10-Q |
Recent Forward Guidance
Updated 8/7/2026Latest: Q2 2026 Earnings Reported 8/6/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 RevPAR Growth | Reported | 7.0% | 8.0% | 9.0% | 1.8% | Raised | Guidance: 6.25% for 2026 | |
| 2026 Total RevPAR Growth | Reported | 7.0% | 8.0% | 9.0% | 1.8% | Raised | Guidance: 6.25% for 2026 | |
| 2026 Adjusted FFO Attributable to Common Stockholders | Reported | 174.00 Mil | 179.00 Mil | 184.00 Mil | 3.5% | Raised | Guidance: 173.00 Mil for 2026 | |
| 2026 Adjusted FFO Attributable to Common Stockholders per Diluted Share | Reported | 0.93 | 0.95 | 0.98 | 3.8% | Raised | Guidance: 0.92 for 2026 | |
| 2026 Corporate Overhead Expense | Reported | 19.00 Mil | 19.50 Mil | 20.00 Mil | ||||
| 2026 Preferred Stock Dividends | Reported | 15.00 Mil | 15.50 Mil | 16.00 Mil | ||||
| 2026 Adjusted EBITDAre | Reported | 245.00 Mil | 250.00 Mil | 255.00 Mil | 2.0% | Raised | Guidance: 245.00 Mil for 2026 | |
| 2026 Interest and Other Income | Reported | 7.00 Mil | 7.50 Mil | 8.00 Mil | ||||
| 2026 Interest Expense | Reported | 49.00 Mil | 50.50 Mil | 52.00 Mil | ||||
| 2026 Net Income | Reported | 79.00 Mil | 84.00 Mil | 89.00 Mil | 104.9% | Raised | Guidance: 41.00 Mil for 2026 | |
| 2026 EPS | Reported | 0.37 | 0.4 | 0.42 | 172.4% | Raised | Guidance: 0.14 for 2026 | |
| 2026 Capital Expenditures | Reported | 105.00 Mil | 110.00 Mil | 115.00 Mil | 4.8% | Raised | Guidance: 105.00 Mil for 2026 | |
Prior: Q1 2026 Earnings Reported 5/5/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 RevPAR Growth | Reported | 5.0% | 6.25% | 7.5% | 0.8% | Raised | Guidance: 5.5% for 2026 | |
| 2026 Total RevPAR Growth | Reported | 5.0% | 6.25% | 7.5% | 1.2% | Raised | Guidance: 5.0% for 2026 | |
| 2026 Adjusted FFO Attributable to Common Stockholders | Reported | 166.00 Mil | 173.00 Mil | 180.00 Mil | 4.5% | Raised | Guidance: 165.50 Mil for 2026 | |
| 2026 Adjusted FFO Attributable to Common Stockholders per Diluted Share | Reported | 0.88 | 0.92 | 0.96 | 5.1% | Raised | Guidance: 0.88 for 2026 | |
| 2026 Adjusted EBITDAre | Reported | 238.00 Mil | 245.00 Mil | 252.00 Mil | 3.2% | Raised | Guidance: 237.50 Mil for 2026 | |
| 2026 Net Income | Reported | 34.00 Mil | 41.00 Mil | 48.00 Mil | 22.4% | Raised | Guidance: 33.50 Mil for 2026 | |
| 2026 Net Income Attributable to Common Stockholders per Diluted Share | Reported | 0.11 | 0.14 | 0.18 | ||||
| 2026 Capital Expenditures | Reported | 95.00 Mil | 105.00 Mil | 115.00 Mil | 0 | Affirmed | Guidance: 105.00 Mil for 2026 | |
Q4 2025 Earnings Reported 2/27/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 RevPAR Growth | Reported | 4.0% | 5.5% | 7.0% | 1.5% | |||
| 2026 Total RevPAR Growth | Reported | 3.5% | 5.0% | 6.5% | 1.0% | Higher New | Actual: 4.0% for 2025 | |
| 2026 Adjusted FFO Attributable to Common Stockholders | Reported | 153.00 Mil | 165.50 Mil | 178.00 Mil | 1.5% | Higher New | Actual: 163.00 Mil for 2025 | |
| 2026 Adjusted FFO Attributable to Common Stockholders per Diluted Share | Reported | 0.81 | 0.88 | 0.94 | 4.8% | Higher New | Actual: 0.83 for 2025 | |
| 2026 Adjusted EBITDAre | Reported | 225.00 Mil | 237.50 Mil | 250.00 Mil | 1.9% | Higher New | Actual: 233.00 Mil for 2025 | |
| 2026 Net Income | Reported | 21.00 Mil | 33.50 Mil | 46.00 Mil | 62.6% | Higher New | Actual: 20.60 Mil for 2025 | |
| 2026 Capital Expenditures | Reported | 95.00 Mil | 105.00 Mil | 115.00 Mil | ||||
Q3 2025 Earnings Reported 11/7/2025
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2025 Total Portfolio RevPAR Growth | Reported | 3.0% | 4.0% | 5.0% | 0 | Affirmed | Guidance: 4.0% for 2025 | |
| 2025 Total Portfolio RevPAR Growth, excluding Andaz Miami Beach | Reported | 1.0% | 2.0% | 3.0% | 0 | Affirmed | Guidance: 2.0% for 2025 | |
| 2025 Adjusted FFO Attributable to Common Stockholders | Reported | 156.00 Mil | 163.00 Mil | 170.00 Mil | 0 | Affirmed | Guidance: 163.00 Mil for 2025 | |
| 2025 Adjusted FFO Attributable to Common Stockholders per Diluted Share | Reported | 0.8 | 0.83 | 0.87 | 0 | Affirmed | Guidance: 0.83 for 2025 | |
| 2025 Adjusted EBITDAre | Reported | 226.00 Mil | 233.00 Mil | 240.00 Mil | 0 | Affirmed | Guidance: 233.00 Mil for 2025 | |
| 2025 Net Income | Reported | 14.00 Mil | 20.60 Mil | 28.00 Mil | -1.9% | Lowered | Guidance: 21.00 Mil for 2025 | |
Insider Activity
Updated 6/24/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Springer, Robert C | PRESIDENT AND CIO | Direct | Sell | 6242026 | 11.62 | 89,631 | 1,041,512 | 6,666,894 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Springer, Robert C | PRESIDENT AND CIO | Direct | Sell | 6242026 | 11.62 | 89,631 | 1,041,512 | 6,666,894 | Form |
Industry Resources
| Real Estate Resources |
| The Real Deal |
| Commercial Observer |
| Inman |
| Hotel & Resort REITs Resources |
| Hotel News Now |
| Hospitality Net |
| Lodging Magazine |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
Prefer one of these to Trefis? Tell us why.