SHO
Real EstateSunstone Hotel Investors, Inc. · REIT - Hotel & Motel · $2B
What is Sunstone Hotel Investors, Inc.?
Sunstone Hotel Investors is a lodging real estate investment trust focused on owning and managing upper-upscale hotels across the United States. Its portfolio spans nearly ten thousand rooms across nineteen properties operated under nationally recognized brands.
Sunstone acquires, owns, and asset-manages hotels it classifies as Long-Term Relevant Real Estate. The company generates revenue primarily through hotel operations, with properties branded under Marriott, Hilton, and Hyatt flags. Rather than operating hotels directly, Sunstone focuses on strategic ownership, capital allocation, and selective renovation or repositioning to preserve and grow asset value over time.
Sunstone was founded in 2004 and is headquartered in Irvine, California.
- Upper-upscale hotel ownership and asset management
- Portfolio of Marriott, Hilton, and Hyatt branded properties
- Strategic hotel renovation and repositioning
- Long-Term Relevant Real Estate acquisition strategy
Is SHO a Good Stock to Buy?
UQS Score rates SHO as Below Average overall, reflecting meaningful weaknesses across several key pillars.
Among the pillars, Valuation stands out as the relative bright spot, rated Good — suggesting the market may not be pricing in a premium for this REIT. Risk comes in at Neutral, indicating the balance sheet and operational risk profile are not extreme relative to peers.
Quality, Moat, and Growth are all rated Weak, pointing to limited competitive differentiation, constrained earnings power, and a challenging growth trajectory in the lodging sector.
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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does SHO pay dividends?
Yes — Sunstone Hotel Investors, Inc. pays a dividend.
Sunstone pays a regular dividend, consistent with its structure as a REIT — which is required by law to distribute the majority of taxable income to shareholders. Income-focused investors often look to lodging REITs like SHO for yield, though dividend sustainability depends heavily on hotel occupancy trends and broader travel demand cycles.
When does SHO report earnings?
Sunstone Hotel Investors reports earnings on a quarterly cadence, typical for US-listed REITs.
As a lodging REIT, Sunstone's results are closely tied to travel demand, occupancy rates, and average daily room rates across its portfolio. Performance can vary meaningfully by season and macroeconomic conditions affecting leisure and business travel.
For the most recent quarter's results, visit Sunstone Hotel Investors' investor relations page directly.
SHO Price History
-13.4% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Sunstone Hotel Investors, Inc.?
Based on Sunstone Hotel Investors, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
SHO Long-term Outlook
The UQS Growth pillar for SHO is rated Weak, reflecting limited near-term expansion potential in a competitive lodging landscape. The Neutral Risk rating suggests the company is not in acute financial distress, but the combination of weak quality and moat ratings means the fundamental outlook depends heavily on macro tailwinds rather than internal competitive advantages.
Growth drivers
- Recovery and growth in leisure and business travel demand
- Selective asset repositioning under premium hotel brands
- Potential portfolio optimization through strategic acquisitions or dispositions
Key risks
- Cyclical sensitivity of hotel revenues to economic downturns and travel disruptions
- Limited competitive moat in a commoditized lodging market
- Rising operating costs and capital expenditure requirements for property maintenance
SHO vs Peers
Sunstone competes with other focused lodging REITs that target similar upper-upscale hotel segments.
Pebblebrook concentrates on lifestyle and independent hotels in urban and resort markets, giving it a distinct brand positioning compared to Sunstone's nationally branded portfolio.
DiamondRock owns premium-branded hotels in destination markets, with a portfolio strategy that emphasizes drive-to leisure locations alongside urban properties.
Xenia focuses on luxury and upper-upscale hotels in top markets, with a portfolio weighted toward resorts and convention-oriented properties.
Frequently Asked Questions
What does Sunstone Hotel Investors do?
Sunstone Hotel Investors is a lodging REIT that acquires, owns, and asset-manages upper-upscale hotels across the United States. Its nineteen-property portfolio operates under major brands including Marriott, Hilton, and Hyatt. The company focuses on owning what it calls Long-Term Relevant Real Estate rather than operating hotels directly.
Does SHO pay dividends?
Yes, Sunstone pays a regular dividend. As a REIT, the company is required to distribute the majority of its taxable income to shareholders. The sustainability of that dividend is tied to hotel occupancy levels and overall travel demand, which can fluctuate with economic cycles.
When does SHO report earnings?
Sunstone Hotel Investors reports on a quarterly cadence, as is standard for US-listed REITs. For the exact timing of upcoming earnings releases, check the investor relations section of Sunstone's official website.
Is SHO a good stock to buy?
UQS Score rates SHO as Below Average, with Weak readings across Quality, Moat, and Growth pillars. The Valuation pillar is rated Good, which may appeal to value-oriented investors. Whether SHO fits a portfolio depends on individual risk tolerance and investment goals — view the full pillar breakdown on UQS Pro.
Is SHO overvalued?
The UQS Valuation pillar for SHO is rated Good, suggesting the stock is not trading at a significant premium relative to its fundamentals. However, a favorable valuation rating alone does not offset the Weak Quality and Growth readings. The complete valuation analysis is available to UQS Pro members.
How does SHO compare to its competitors?
Sunstone competes with lodging REITs like Pebblebrook Hotel Trust, DiamondRock Hospitality, and Xenia Hotels and Resorts. Each focuses on upper-upscale or luxury segments but with different geographic and brand strategies. UQS Pro provides side-by-side pillar comparisons across these peers.
What is SHO's market cap bracket?
Sunstone Hotel Investors is classified as a small-cap company. This places it in a segment of the market that can offer different risk and liquidity characteristics compared to larger lodging REITs or diversified real estate companies.
Who founded Sunstone Hotel Investors?
Sunstone Hotel Investors was established in 2004 and is headquartered in Irvine, California. For detailed founding history and leadership background, the company's official investor relations page is the most reliable source.
Is SHO a long-term quality investment?
From a long-term quality perspective, SHO's UQS profile raises caution — the Quality and Moat pillars are both rated Weak, which can matter significantly over multi-year holding periods. The Neutral Risk and Good Valuation ratings provide some offset, but long-term durability depends on improving fundamentals.
What sector does SHO belong to?
Sunstone Hotel Investors operates in the Real Estate sector, specifically as a lodging REIT. This means its performance is closely linked to hospitality industry trends, travel demand cycles, and interest rate conditions that affect REIT valuations broadly.
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Pro Analysis
SHO — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 16, 2026 | 38.8 | 36.8 | 15.0 | 31.4 | 64.1 | 66.2 | +2.2 |
| May 7, 2026 | 36.6 | 33.5 | 15.0 | 30.4 | 59.6 | 63.2 | -0.2 |
| May 4, 2026 | 36.8 | 33.5 | 15.0 | 30.4 | 59.6 | 64.1 | +0.1 |
| May 3, 2026 | 36.7 | 33.5 | 15.0 | 30.1 | 59.6 | 63.8 | 0.0 |
| Apr 26, 2026 | 36.7 | 33.5 | 15.0 | 30.1 | 59.6 | 64.1 | +0.1 |
| Apr 24, 2026 | 36.6 | 33.5 | 15.0 | 30.1 | 59.6 | 63.6 | -0.1 |
| Apr 19, 2026 | 36.7 | 33.5 | 15.0 | 30.1 | 59.6 | 63.9 | -0.1 |
| Apr 18, 2026 | 36.8 | 33.5 | 15.0 | 30.1 | 59.6 | 64.4 | +0.7 |
| Apr 12, 2026 | 36.1 | 33.5 | 15.0 | 30.2 | 59.6 | 59.7 | -0.1 |
| Apr 5, 2026 | 36.2 | 33.5 | 15.0 | 30.2 | 59.6 | 60.8 | +2.2 |
SHO — Pillar Breakdown
Quality
— 36.8/100 (25%)Sunstone Hotel Investors, Inc. has average quality metrics, with room for improvement in margins or capital efficiency.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Free cash flow relative to market value.
Growth
— 31.4/100 (20%)Sunstone Hotel Investors, Inc. faces growth headwinds with declining or stagnant revenue trends.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 64.1/100 (15%)Sunstone Hotel Investors, Inc. maintains a reasonable risk profile with manageable debt levels.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 64.0/100 (15%)Sunstone Hotel Investors, Inc. trades at a reasonable valuation with decent earnings yield and FCF multiples.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 15/100 (25%)Sunstone Hotel Investors, Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for SHO.
Score Composition
Financial Data
More Stock Analysis
How is the SHO UQS Score Calculated?
The UQS (Unified Quality Score) for Sunstone Hotel Investors, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Sunstone Hotel Investors, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Sunstone Hotel Investors, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.