Sunstone Hotel Investors, Inc. (SHO) Stock

Sunstone Hotel Investors, Inc. (SHO) is a Consumer Discretionary stock trading at $11.29 (as of 2026-08-20), with a market capitalization of $2.10B and a trailing P/E of 32.6. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Sunstone Hotel Investors, Inc. is a lodging real estate investment trust (REIT) that as of the date of this release has interests in 19 hotels comprised of 9,997 rooms. Sunstone's business is to acquire, own, asset manage and renovate or reposition hotels considered to be Long-Term Relevant Real Estate®, the majority of which are operated under nationally recognized brands, such as Marriott, Hilton and Hyatt.

Understand Sunstone Hotel Investors, Inc.: how it makes money

Sunstone Hotel Investors is a lodging REIT that owns and asset manages a portfolio of branded hotels, aiming to acquire, renovate, and reposition hotels as long-term relevant real estate, then earns operating income tied to the hotels it owns.

Sunstone's operating performance is structurally driven by how the comparable hotel portfolio performs, with results tied to hotel revenue (including revenue per available room) across its owned portfolio.

Business quality (Mixed): Clear linkage between the companys hotel-portfolio model and the operating KPIs reported (comparable portfolio revenue and revenue per available room), but the dataset here does not show a fully broken-out segment view.

Valuation: At 108× earnings, SHO trades 295% above the Restaurants, Hotels & Motels average (27×). Note: one-time items can distort reported P/E.

Bull case

Branded, nationally recognized hotel partners: Most of its 19 hotels (9,997 rooms) are operated under nationally recognized brands such as Marriott, Hilton, and Hyatt, which can help provide operating continuity and recognizable demand.
Profit model tied to comparable portfolio performance: The company reports operating drivers focused on the comparable portfolio, including comparable hotel portfolio revenue and revenue per available room, aligning reported metrics with how the business generates results.
Repositioning and renovation as a stated strategy: Sunstone describes its business as acquiring, owning, asset managing, and renovating or repositioning hotels considered long-term relevant real estate.

Bear case

Sensitivity to comparable hotel revenue and room economics: Because key operating KPIs center on comparable portfolio revenue and revenue per available room, unfavorable changes in comparable hotel performance can pressure operating results.
Concentration in a finite hotel portfolio: The companys interests are in 19 hotels (9,997 rooms), so underperformance at multiple properties can have an outsized impact versus a more widely diversified REIT portfolio.
Execution risk from renovation and repositioning: The companys strategy includes renovating or repositioning hotels, which creates execution risk tied to project timing and outcomes.

Valuation — source: SEC EDGAR (first-party)
Price	$11.29
Market Cap	$2.10B
P/E Ratio	32.6
EV / EBITDA	14.2
Price / Book	1.12
Price / Sales	2.05
DCF Value (model)	$20.84
DCF Upside vs Price	84.6%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$960.13M
Net Margin	2.6%
Revenue Growth (YoY)	6.0%
EPS Growth (YoY)	-71.4%

Valuation vs Sector & Industry
Stock P/E	32.6
Sector P/E (Consumer Discretionary)	20.5
Industry P/E (Restaurants, Hotels & Motels)	26.6
vs Sector	59.0%
vs Industry	22.6%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	BlackRock, Inc. ($297.20M)
Institutional Holders Tracked	10
Congressional Trades (recent)	1

Company
Sector	Consumer Discretionary
Industry	Restaurants, Hotels & Motels
CEO	Bryan Albert Giglia
Employees	36
Country	US
IPO Date	2004-10-21

Related Companies (Business model: Hotels & Lodging (Asset-Light Franchisors and Asset-Heavy Lodging REITs); 8 closest by market cap; US-domiciled)

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.