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Upturn AI Summary - About
Sunstone Hotel Investors Inc(SHO)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for SHO
11/09/2026: SHO (2-star) has a low Upturn Star Rating. Not recommended to BUY.
Sunstone Hotel Investors, Inc. is a self-managed real estate investment trust specializing in owning high-quality, upscale and luxury hotel properties across the United States. Its primary business strength lies in a high-quality portfolio managed by reputable global brands and a conservative balance sheet that provides financial flexibility. The company's growth story centers on strategic capital recycling, where it divests non-core assets to reinvest in high-potential luxury and lifestyle hotels. However, investors face risks related to the cyclical nature of the lodging industry, including sensitivity to economic downturns, rising labor costs, and operational execution risks. The stock may best suit value-oriented investors who monitor RevPAR trends and the timing of portfolio renovations.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | Sunstone offers growth potential through real estate appreciation and margin improvement, but is capped by the cyclical nature of the lodging industry. |
| Momentum investor | Weak fit | The stock often trends with broader REIT and lodging sector cycles rather than pure high-velocity momentum signals. |
| Value investor | Strong fit | Investors often find the stock attractive when trading at a discount to Net Asset Value (NAV) of its high-quality hotel portfolio. |
| Dividend investor | Mixed fit | While dividends are paid, they can be variable based on industry conditions, making it less predictable than traditional utility or consumer staple income stocks. |
| Low-risk investor | Weak fit | The lodging sector is inherently volatile due to economic sensitivity, making it unsuitable for those seeking low-risk capital preservation. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium / high | Lodging REITs are sensitive to macroeconomic cycles, leading to significant stock price swings. |
| Valuation risk | Medium | Valuations are highly dependent on interest rate environments and cap rates for commercial real estate. |
| Competition risk (Lodging Sector) | Medium | Intense competition from larger hotel REITs and alternative lodging providers can pressure RevPAR growth. |
| Business quality | Medium / high | The company owns high-quality assets but is reliant on the operational execution of its third-party managers. |
| Dividend income | Medium | Dividends can fluctuate as they are tied to REIT cash flow, which is sensitive to hospitality demand. |
| Execution risk | Medium | Successfully renovating and repositioning luxury properties requires significant capital and operational precision. |
Price Behavior
Strong Uptrend
The stock has maintained a strong upward price trend across the last three quarters.
Smooth
The stock has moved along a generally orderly path with only modest fluctuations.
Analysis of Past Performance
Type Stock | Historic Profit 1.72% | Avg. Invested days 43 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Advisory Rating  | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 11/09/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 2.33B USD | Price to earnings Ratio 28.45 | 1Y Target Price 12.31 |
Price to earnings Ratio 28.45 | 1Y Target Price 12.31 | ||
Volume (30-day avg) 2.8M shares | Beta 0.99 | 52 Weeks Range 8.47 - 13.08 | Updated Date 11/08/2026 |
52 Weeks Range 8.47 - 13.08 | Updated Date 11/08/2026 | ||
Dividends yield (FY) 2.91% | Basic EPS (TTM) 0.44 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Hotel Ownership | Room revenue, food and beverage, and other amenities across luxury and upscale hotels. | The company acts as a landlord, earning money when guests stay at or use the services of its hotels. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date 2026-11-06 | When Before Market | Estimate 0.19 | Actual 0.2 |
Profitability
Profit Margin 9.21% | Operating Margin (TTM) 7.62% |
Management Effectiveness
Return on Assets (TTM) 2.06% | Return on Equity (TTM) 4.95% |
Valuation
Trailing PE 28.45 | Forward PE 625 | Enterprise Value 3.45B | Price to Sales(TTM) 2.31 |
Enterprise Value 3.45B | Price to Sales(TTM) 2.31 | ||
Enterprise Value to Revenue 3.44 | Enterprise Value to EBITDA 14.62 | Shares Outstanding 185.94M | Shares Floating 173.81M |
Shares Outstanding 185.94M | Shares Floating 173.81M | ||
Percent Insiders 1.56 | Percent Institutions 107.6 |
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
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