At a glance
Sunstone Hotel Investors Inc is worth $2.37B, about 319 times its fiscal 2025 earnings. Revenue grew 6.0% to $960.1M in fiscal 2025, with 0.9% kept as profit; over 5 years it has grown 29.1% a year. It pays a 2.82% dividend yield, raised every year for at least 5 years, and returned $570.4M to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +46.1% over the past year with dividends reinvested and +3.5% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 47.3% in the 2020 crash (S&P 500: 33.7%) and 25.3% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 11 months and 26 months after the lows.
The business in plain English
Sunstone Hotel Investors is a real estate investment trust (REIT), a company that owns property and passes most of its taxable income to shareholders as dividends. It owns upper upscale and luxury hotels, the industry's top price tiers, in convention, urban and resort destinations. As of December 31, 2025, its portfolio held 14 hotels with 6,999 rooms in 7 states and Washington, DC. All but one carry a national brand. The exception is the Oceans Edge Resort & Marina, which operates independently.
Sunstone does not run the hotels itself. Outside operators manage them under long-term contracts. As of December 31, 2025, Marriott managed six, Hyatt three, and Four Seasons, Hilton, Montage, Sage Hospitality and Singh Hospitality one each. Sunstone's own team sets business plans with the managers, pays for renovations and rebrandings, and buys and sells hotels. It aims to sell slower-growing properties and reinvest the money in ones with more room to grow.
The money comes from hotel guests. Of $960.1 million in 2025 revenue, room rentals brought in $582.7 million (60.7%), food and beverage $278.7 million (29%), and other hotel services $98.8 million (10.3%). Demand rises and falls with the economy and the seasons. At 11 comparable hotels, the second quarter brought in the most revenue in both 2024 and 2025, at 27.4% of the 2025 total.
Price history
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SHO +46.1% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Occupancy | $582.7M | 60.7% |
| Food And Beverage | $278.7M | 29% |
| Hotel Other | $98.8M | 10.3% |
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $277.1M, up 6.7% from a year earlier, and net income was $25.9M (+281.5%).
- For fiscal 2025, revenue was $960.1M (+6.0% year over year; +29.1% a year from FY2020 to FY2025) with a 0.9% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +29.1% good |
|---|---|
| Free cash flow margin | 8.2% watch |
| Return on equity (FY2025) | 0.4% weak |
| Return on assets (FY2025) | 0.3% weak |
| Net cash (cash minus debt) | $-873.9M weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $267.9M | $-417.6M | $-168.1M |
| FY2021 | $509.1M | $13.6M | $-35.3M |
| FY2022 | $912.1M | $72.6M | $80.8M |
| FY2023 | $986.5M | $191.7M | $88.0M |
| FY2024 | $905.8M | $27.8M | $13.0M |
| FY2025 | $960.1M | $8.2M | $78.7M |
Valuation snapshot
| Market value | $2.37B |
|---|---|
| P/E ratio | 319 |
| Dividend yield | 2.82% |
Rank among 1514 US companies
Market value at each year end
Sunstone Hotel Investors’s market value went from $3.30B at the end of 2016 to $2.37B on Oct 28, 2026, down 28%; since the end of 2025 it is up 40%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $2.37B | +39.8% |
| 2025 | $1.70B | -28.6% |
| 2024 | $2.38B | +7.9% |
| 2023 | $2.20B | +8.5% |
| 2022 | $2.03B | -21.0% |
| 2021 | $2.57B | +5.3% |
| 2020 | $2.44B | -21.9% |
| 2019 | $3.13B | +5.4% |
| 2018 | $2.97B | -20.3% |
| 2017 | $3.72B | +12.8% |
| 2016 | $3.30B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| SHO price data to Oct 28, 2026 | +46.5% | +46.1% | +16.3% | +3.5% | +3.6% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +46.5% |
| 2025 | -21.5% |
| 2024 | +13.8% |
| 2023 | +14.4% |
| 2022 | -16.8% |
| 2021 | +3.5% |
| 2020 | -18.1% |
| 2019 | +12.6% |
| 2018 | -17.3% |
| 2017 | +13.2% |
| 2016 | +27.9% |
| 2015 | -16.0% |
| 2014 | +27.2% |
| 2013 | +26.1% |
| 2012 | +31.4% |
| 2011 | -21.1% |
| 2010 | +16.3% |
| 2009 | +43.5% |
| 2008 | -59.4% |
| 2007 | -27.8% |
| 2006 | +5.0% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 90.3% over that stretch · deepest drop along the way 91.4%, not recovered by the end of the data |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 39.6% over that stretch · deepest drop along the way 47.3%, back to its old high 11.3 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 15.8% over that stretch · deepest drop along the way 25.3%, back to its old high 26.1 months after the low |
Insider activity
Form 4 filings from 2025-10-31 to 2026-10-31 (24 read): 0 open-market purchases and 1 sales ($1.0M).
| Date | Insider | Type | Value |
|---|---|---|---|
| Jun 24, 2026 | Robert C Springer PRESIDENT AND CIO | sell | $1.0M |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 17% | Jun 30, 2025 |
| Vanguard Portfolio Management | 11.33% | Sep 30, 2026 |
| Vanguard Capital Management | 5.34% | Mar 31, 2026 |
| BANK OF AMERICA CORP /DE/ | 3.4% | Jun 30, 2026 |
ETFs with the most weight in SHO
| BYRE Principal Real Estate Active Opportunities ETF | 1.85% |
| XSLV Invesco S&P SmallCap Low Volatility ETF | 0.72% |
| RZG Invesco S&P SmallCap 600® Pure Growth ETF | 0.7% |
| XSVM Invesco S&P SmallCap Value with Momentum ETF | 0.63% |
| JPSV JPMorgan Active Small Cap Value ETF | 0.59% |
| PSCF Invesco S&P SmallCap Financials ETF | 0.53% |
| REIX NYLIM CBRE Real Estate & Infrastructure ETF | 0.48% |
| ROSC Hartford Multifactor Small Cap ETF | 0.48% |
What could go wrong
- A small, geographically concentrated portfolio. As of December 31, 2025, Sunstone owned just 14 hotels, a significant portion clustered geographically. A local slump, new competing hotels, higher property taxes or a natural disaster could hit results hard.
- Outside managers and brands run the hotels. As a REIT, Sunstone depends on outside managers such as Marriott and Hyatt to run its hotels. Brands can require costly upgrades, and bad publicity or a terminated agreement could cost it business.
- Renovations can run late or over budget. Sunstone rebrands and remodels hotels to raise their value, as with the conversions to Andaz Miami Beach and Marriott Long Beach Downtown. Delays, inflation, tariffs or supply shortages can push up costs and cut income.
- Business travel and the wider economy. Some hotels lean heavily on group and business bookings from large companies. Recessions, tariffs or more virtual meetings could cut that demand, and lodging demand generally rises and falls with the economy.
- Debt, variable rates and refinancing. Sunstone had $930.0 million of debt as of December 31, 2025. Some loans carry variable rates, the debt must be refinanced over time, and its governing documents set no borrowing limit.
- Dividends can vary or come as stock. The annual report warns that distributions may vary and could be paid in cash, shares or a mix. REIT dividends also generally do not qualify for the lower tax rates some dividends receive.
Recent events
- Other company announcement
- Quarterly results released
- Investor presentation or announcement
- Investor presentation or announcement
- Quarterly results released; Executive or board change; Shareholder vote results
- Quarterly results released
- Executive or board change
- Quarterly results released
For income and retirement investors
Sunstone has raised its regular dividend 5 years in a row, from $0.05 per share in 2020, a year it lost $417.6 million, to $0.36 in 2025. The yield was 2.82% as of October 28, 2026. In 2025 the payout was stretched: dividends paid equaled about 110% of free cash flow (cash left after operating costs and property spending) and far exceeded net income of $8.2 million, though depreciation, a non-cash charge, holds down a hotel owner's reported profit. Buybacks totaled $294.7 million from 2021 through 2025, and the share count fell 15.1% from August 2021 to July 2026.
The shares have fallen hard in downturns. They lost 91.4% from October 2007 to March 2009 and had not regained that peak as of October 28, 2026. They fell 47.3% in the 2020 COVID crash, recovering in about 11 months, and 25.3% in 2022, recovering in about 26 months. A single stock carries more risk than a diversified fund.
Questions investors ask
How does Sunstone Hotel Investors make money?
Sunstone makes money from guests at the hotels it owns. Of its $960.1 million in 2025 revenue, 60.7% came from room rentals, 29% from food and beverage, and 10.3% from other hotel services. As of December 31, 2025, it owned 14 upper upscale and luxury hotels with 6,999 rooms. Outside operators such as Marriott and Hyatt run the hotels day to day. Sunstone focuses on renovations and on buying and selling properties.
Does Sunstone Hotel Investors pay a dividend?
Yes. Sunstone paid $0.36 per share in regular dividends in 2025, and the yield was 2.82% as of October 28, 2026. It has raised the regular dividend 5 years in a row, starting from $0.05 per share in 2020. Cash flow did not cover the payout in 2025: dividends paid equaled about 110% of free cash flow. The annual report also warns that distributions may vary and could be paid in cash, stock or both.
Is Sunstone Hotel Investors a REIT?
Yes. Sunstone has been taxed as a real estate investment trust since its 2004 tax year. A REIT generally avoids corporate income tax on the profits it pays out, but it must distribute most of its taxable income. REIT rules also keep Sunstone from running hotels directly, so it leases them to a taxable subsidiary that hires outside managers. Its dividends generally do not qualify for the lower tax rates some other dividends receive.
How much debt does Sunstone Hotel Investors have?
Sunstone had about $968.4 million of debt and $94.4 million of cash and investments as of June 30, 2026. At the end of 2025, its $930.0 million of debt carried a weighted average interest rate of 5.0%. That figure includes interest rate swaps, which are contracts that turn floating rates into fixed ones. Its $500.0 million credit line was undrawn at that date. Some loans have variable rates, and the debt must be refinanced over time, which could cost more if rates are high.
How has Sunstone Hotel Investors stock performed over the long run?
Weakly over long stretches, with big swings. As of October 28, 2026, the share price had risen an average of 3.6% a year over 10 years and 0.5% a year over about 21 years, not counting dividends. It fell 91.4% in the 2008 financial crisis and had not regained that peak. Shorter-term moves have been large: the price fell 21.5% in 2025, then rose 46.5% in 2026 through October 28.