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Sunstone Hotel Investors Inc (SHO)
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Upturn Advisory Summary
12/05/2025: SHO (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
10 Analysts rated it
Moderately tracked stock, growing coverage, gaining market and investor attention.
1 Year Target Price $9.91
1 Year Target Price $9.91
| 4 | Strong Buy |
| 0 | Buy |
| 6 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -13.66% | Avg. Invested days 51 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  1.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 12/05/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.70B USD | Price to earnings Ratio 446.5 | 1Y Target Price 9.91 |
Price to earnings Ratio 446.5 | 1Y Target Price 9.91 | ||
Volume (30-day avg) 10 | Beta 1.03 | 52 Weeks Range 7.31 - 11.96 | Updated Date 12/7/2025 |
52 Weeks Range 7.31 - 11.96 | Updated Date 12/7/2025 | ||
Dividends yield (FY) 4.03% | Basic EPS (TTM) 0.02 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 1.94% | Operating Margin (TTM) 5.19% |
Management Effectiveness
Return on Assets (TTM) 1.41% | Return on Equity (TTM) 0.89% |
Valuation
Trailing PE 446.5 | Forward PE 175.44 | Enterprise Value 2781975120 | Price to Sales(TTM) 1.81 |
Enterprise Value 2781975120 | Price to Sales(TTM) 1.81 | ||
Enterprise Value to Revenue 2.97 | Enterprise Value to EBITDA 14.05 | Shares Outstanding 189903149 | Shares Floating 187119169 |
Shares Outstanding 189903149 | Shares Floating 187119169 | ||
Percent Insiders 1.37 | Percent Institutions 105.18 |
Upturn AI SWOT
Sunstone Hotel Investors Inc
Company Overview
History and Background
Sunstone Hotel Investors Inc. (NYSE: SHO) was founded in 1996 and is a real estate investment trust (REIT) focused on acquiring, owning, managing, and developing hotel properties. The company has evolved through strategic acquisitions and dispositions, focusing on premium-branded, select-service and full-service hotels in major urban and resort markets across the United States. A significant milestone was its initial public offering (IPO) in 2004.
Core Business Areas
- Hotel Ownership and Operations: Sunstone Hotel Investors Inc. owns a portfolio of hotels primarily located in top-tier markets across the United States. These hotels are operated under leading brands such as Marriott, Hilton, and Hyatt. The company's strategy involves acquiring high-quality assets, optimizing their performance through operational improvements and capital enhancements, and ultimately maximizing shareholder value.
Leadership and Structure
Sunstone Hotel Investors Inc. is led by a management team with extensive experience in real estate, hospitality, and finance. The company operates as a publicly traded REIT, governed by a Board of Directors responsible for overseeing corporate strategy and management. Specific leadership roles include CEO, CFO, and various operational and investment VPs. The exact composition of the leadership team and board can be found in their latest SEC filings and investor relations materials.
Top Products and Market Share
Key Offerings
- Hotel Properties: Sunstone Hotel Investors Inc. offers lodging services through its portfolio of premium-branded hotels. These properties cater to both business and leisure travelers, providing accommodations, meeting spaces, and various amenities. The company does not disclose specific revenue breakdowns by individual property or brand, but its portfolio is diversified across several major hotel brands. Key competitors for individual properties depend on the specific market and brand, but generally include other hotels within the same brand family and competing brands in the same location.
Market Dynamics
Industry Overview
The hotel industry is cyclical and highly sensitive to economic conditions, travel trends, and consumer spending. Key factors influencing the industry include business travel demand, leisure travel patterns, new supply development, and operational costs. The sector has experienced significant disruption due to global events but is showing signs of recovery driven by pent-up demand and a resurgence in both business and leisure travel.
Positioning
Sunstone Hotel Investors Inc. is positioned as a leading owner of premium-branded hotels in major U.S. markets. Its competitive advantages include a diversified portfolio of high-quality assets, strong relationships with major hotel brands, a disciplined approach to capital allocation, and experienced management. The company focuses on markets with high barriers to entry and strong demand drivers.
Total Addressable Market (TAM)
The total addressable market for the U.S. hotel industry is substantial, with annual revenues in the hundreds of billions of dollars. Sunstone Hotel Investors Inc. operates within the segment of premium-branded hotels in top-tier markets. While specific TAM figures for this niche are not readily available, the company's strategy targets a significant portion of this high-value segment. Its positioning focuses on owning a select number of high-performing assets rather than broad market coverage.
Upturn SWOT Analysis
Strengths
- Portfolio of premium-branded hotels in prime locations
- Strong relationships with leading hotel franchisors (Marriott, Hilton, Hyatt)
- Experienced management team with a proven track record
- Diversified geographic and brand exposure
- Focus on select-service and full-service hotels with strong operating potential
Weaknesses
- Sensitivity to economic downturns affecting travel
- Reliance on third-party hotel brands for marketing and operations
- High capital requirements for property acquisition and renovation
- Potential for increased competition and supply in certain markets
Opportunities
- Acquisition of underperforming or strategically located hotel assets
- Capitalize on recovery and growth in travel demand
- Renovate and upgrade existing properties to enhance value
- Leverage strong brand partnerships for operational efficiency
- Explore opportunities in evolving travel segments (e.g., extended stay)
Threats
- Economic recessions and decreased consumer/business spending
- Increased competition from new hotel developments and alternative accommodations (e.g., Airbnb)
- Rising operational costs (labor, utilities, insurance)
- Interest rate hikes impacting borrowing costs
- Geopolitical events and unforeseen crises affecting travel patterns
Competitors and Market Share
Key Competitors
- Host Hotels & Resorts Inc. (HST)
- Pebblebrook Hotel Trust (PEB)
- Park Hotels & Resorts Inc. (PK)
Competitive Landscape
Sunstone Hotel Investors Inc. competes within the upscale and luxury hotel segment. Its advantages lie in its carefully selected portfolio of branded properties in strong markets. However, it faces intense competition from larger REITs with broader portfolios and greater economies of scale, as well as from individual hotel owners and operators. The company's ability to identify and execute value-adding transactions and effectively manage its properties is key to its competitive standing.
Major Acquisitions
InterContinental Chicago Magnificent Mile
- Year: 2011
- Acquisition Price (USD millions): 412.5
- Strategic Rationale: Acquisition of a high-profile, full-service hotel in a prime urban market to enhance the company's portfolio in a key destination city, contributing to revenue diversification and scale.
The Lodge at Torrey Pines
- Year: 2007
- Acquisition Price (USD millions): 193.5
- Strategic Rationale: Acquisition of a luxury resort property in a desirable leisure destination, diversifying the portfolio into the high-end resort segment and capturing strong leisure travel demand.
Growth Trajectory and Initiatives
Historical Growth: Historically, Sunstone Hotel Investors Inc. has pursued growth through strategic acquisitions of well-located, premium-branded hotels and by enhancing the performance of its existing portfolio through renovations and operational improvements. Growth has been influenced by real estate cycles and the hospitality industry's performance.
Future Projections: Future growth projections for Sunstone Hotel Investors Inc. are typically based on analyst estimates, industry outlooks, and the company's stated strategic objectives. These projections often consider factors like anticipated increases in RevPAR, potential for new acquisitions, and the impact of capital expenditures on asset value and performance.
Recent Initiatives: Recent initiatives may include targeted property renovations to improve guest experience and competitive positioning, strategic dispositions of non-core assets, and potential acquisitions in markets with favorable long-term growth prospects. The company also focuses on operational efficiencies and adapting to evolving guest preferences.
Summary
Sunstone Hotel Investors Inc. is a well-established REIT with a strong portfolio of premium-branded hotels in prime U.S. markets. Its strategic focus on high-quality assets, experienced management, and strong brand partnerships are key strengths. The company is well-positioned to benefit from the recovery in the travel industry. However, it remains susceptible to economic downturns and increasing operational costs, necessitating a continued focus on strategic acquisitions, property enhancements, and efficient operations.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Company SEC Filings (10-K, 10-Q)
- Company Investor Relations Website
- Financial Data Providers (e.g., Yahoo Finance, Bloomberg, Refinitiv)
- Industry Reports and Analysis
Disclaimers:
This information is for informational purposes only and does not constitute financial advice. Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions. Market share data and competitor information are estimates and may vary depending on the methodology and scope of analysis.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Sunstone Hotel Investors Inc
Exchange NYSE | Headquaters Aliso Viejo, CA, United States | ||
IPO Launch date 1995-08-10 | CEO & Director Mr. Bryan Albert Giglia | ||
Sector Real Estate | Industry REIT - Hotel & Motel | Full time employees 36 | Website https://www.sunstonehotels.com |
Full time employees 36 | Website https://www.sunstonehotels.com | ||
Sunstone Hotel Investors, Inc. is a lodging real estate investment trust (REIT) that as of the date of this release owns 14 hotels comprised of 6,999 rooms, the majority of which are operated under nationally recognized brands. Sunstone's strategy is to create long-term stakeholder value through the acquisition, active ownership, and disposition of well-located hotel and resort real estate.
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